(1)Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would, subject to exceptions, apply those provisions to a towing company. The bill would also require, in addition to being summoned to the scene or requested to stop by the owner or operator of a disabled vehicle, that the towing company or the owner or operator of the tow truck possess specified information in writing prior to arriving at the scene, or obtain specified information prior to leaving the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party. The bill would provide that a writing for this purpose includes an electronic record.

(2)Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would recast, and subject to exceptions, apply those provisions to a towing company. The bill would delete the requirement for the express authorization of the owner or operator of the vehicle. The bill would require the towing company or the owner or operator of the tow truck to obtain specified information and to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow truck until the time the vehicle is towed and released to a third party.

The bill would, subject to exceptions, and if the vehicle owner or operator is present, also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with a written itemized estimate of all charges and services to be performed. Prior to removing the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain the vehicle owner or operators signature on the itemized estimate, and to furnish a copy to the person who signed the estimate, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, the Bureau of Automotive Repair, a district attorneys office, or a city attorneys office.

The bill would provide, except for those provisions described in paragraph (1) above, that a willful violation of these requirements is a misdemeanor punishable by a fine not exceeding $2,500, or imprisonment in a county jail not exceeding 3 months, or both imprisonment and that fine.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would, subject to exceptions, apply those provisions to a towing company. The bill would also require, in addition to being summoned to the scene or requested to stop by the owner or operator of a disabled vehicle, that the towing company or the owner or operator of the tow truck possess specified information in writing prior to arriving at the scene, or obtain specified information prior to leaving the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party. The bill would provide that a writing for this purpose includes an electronic record.

(2)Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would recast, and subject to exceptions, apply those provisions to a towing company. The bill would delete the requirement for the express authorization of the owner or operator of the vehicle. The bill would require the towing company or the owner or operator of the tow truck to obtain specified information and to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow truck until the time the vehicle is towed and released to a third party.

The bill would, subject to exceptions, and if the vehicle owner or operator is present, also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with a written itemized estimate of all charges and services to be performed. Prior to removing the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain the vehicle owner or operators signature on the itemized estimate, and to furnish a copy to the person who signed the estimate, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, the Bureau of Automotive Repair, a district attorneys office, or a city attorneys office.

The bill would provide, except for those provisions described in paragraph (1) above, that a willful violation of these requirements is a misdemeanor punishable by a fine not exceeding $2,500, or imprisonment in a county jail not exceeding 3 months, or both imprisonment and that fine.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would, subject to exceptions, apply those provisions to a towing company. The bill would also require, in addition to being summoned to the scene, scene or requested to stop, or flagged down stop by the owner or operator of a disabled vehicle, that the towing company or the owner or operator of the tow truck possess specified information in writing prior to arriving at the scene, or obtain specified information prior to leaving the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party. The bill would provide that a writing for this purpose includes an electronic record.

(2)Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would recast, and subject to exceptions, apply those provisions to a towing company. The bill would delete the requirement for the express authorization of the owner or operator of the vehicle. The bill would require the towing company or the owner or operator of the tow truck to obtain specified information and to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow truck until the time the vehicle is towed and released to a third party.

The bill would, subject to exceptions, and if the vehicle owner or operator is present, also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with a written itemized estimate of all charges and services to be performed. Prior to removing the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain the vehicle owner or operators signature on the itemized estimate, and to furnish a copy to the person who signed the estimate, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, the Bureau of Automotive Repair, a district attorneys office, or a city attorneys office.

The bill would provide, except for those provisions described in paragraph (1) above, that a willful violation of these requirements is a misdemeanor punishable by a fine not exceeding $2,500, or imprisonment in a county jail not exceeding 3 months, or both imprisonment and that fine.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would would, subject to exceptions, apply those provisions to a towing company. The bill would also require that in order to be exempt from the offense, require, in addition to being summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle vehicle, that the towing company or the owner or operator of the tow truck would be required to possess specified information in writing prior to arriving at the scene, or obtain specified information upon arriving at prior to leaving the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party.

(2)Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would recast, and subject to exceptions, apply those provisions to a towing company. The bill would also require that, in addition to having delete the requirement for the express authorization of the owner or operator of the vehicle, vehicle. The bill would require the towing company or the owner or operator of the tow truck would be required to obtain specified information and would be required to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow until the time the vehicle is towed and released to a third party.

The bill would would, subject to exceptions, and if the vehicle owner or operator is present, also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with the name, address, and telephone number of the towing company, the name of the towing operator, and other specified information, including a written itemized estimate of all charges and services to be performed, an invoice describing the cost for all services, and the addresses from which the vehicle was towed and to which is delivered. performed. Prior to removing the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain the vehicle owner or operators signature on the itemized estimate, and to furnish a copy to the person who signed the estimate, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, the Bureau of Automotive Repair, a district attorneys office, or a city attorneys office.

By expanding the scope of existing crimes, and imposing additional requirements on towing companies, owners and operators of tow trucks, and other entities, the violation of which would be offenses under existing law, creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would apply those provisions to a towing company. The bill would also require that in order to be exempt from the offense, in addition to being summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle the towing company or the owner or operator of the tow truck would be required to possess specified information in writing prior to arriving at the scene, or obtain specified information upon arriving at the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party.

Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would apply those provisions to a towing company. The bill would also require that, in addition to having the express authorization of the owner or operator of the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain specified information and would be required to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow until the time the vehicle is towed and released to a third party.

The bill would also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with the name, address, and telephone number of the towing company, the name of the towing operator, and a copy of the itemized statement for all charges for services to be performed, including a description of labor and special equipment to be used, if applicable other specified information, including a written itemized estimate of all charges and services to be performed, an invoice describing the cost for all services, and the addresses from which the vehicle was towed and to which is delivered. Prior to removing the vehicle, the towing company or the owner or operator of the two tow truck shall would be required to obtain the vehicle owner or operators signature on the itemized statement estimate, and shall to furnish a copy to the person who signed the statement estimate, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, the Bureau of Automotive Repair, a district attorneys office, or a city attorneys office.

By expanding the scope of existing crimes, and imposing additional requirements on towing companies and, owners and operators of tow trucks, and other entities, the violation of which would be offenses under existing law, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law makes it a misdemeanor for the owner or operator of a tow truck to stop at the scene of an accident or near a disabled vehicle for the purpose of soliciting an engagement for towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle, or requested to perform the service by a law enforcement officer or public agency pursuant to that agencys procedures.

This bill would apply those provisions to a towing company. The bill would also require that in order to be exempt from the offense, in addition to being summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle the towing company or the owner or operator of the tow truck would be required to possess specified information in writing prior to arriving at the scene, and would require that information to be made available to law enforcement, upon request, from the time the tow truck appears at the scene until the time the vehicle is towed and released to a third party.

Existing law also makes it a misdemeanor for the owner or operator of a tow truck to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency pursuant to that agencys procedures, when the vehicle has been left unattended or when there is an injury as the result of an accident.

This bill would apply those provisions to a towing company. The bill would also require that, in addition to having the express authorization of the owner or operator of the vehicle, the towing company or the owner or operator of the tow truck would be required to obtain specified information and would be required to make that information available to law enforcement, upon request, from the time the vehicle is attached to or loaded on to the tow until the time the vehicle is towed and released to a third party.

The bill would also require the towing company or the owner or operator of the tow truck to furnish the vehicles owner or operator with the name, address, and telephone number of the towing company, the name of the towing operator, and a copy of the itemized statement for all charges for services to be performed, including a description of labor and special equipment to be used, if applicable. Prior to removing the vehicle, the towing company or the owner or operator of the two truck shall obtain the vehicle owner or operators signature on the itemized statement and shall furnish a copy to the person who signed the statement, as specified.

The bill would require a towing company or the owner or operator of a tow truck to maintain specified documents for 3 years and to make those documents available for inspection and copying within 48 hours of a written request by specified law enforcement and prosecutorial entities. The bill would also require a business taking possession of a vehicle from a tow truck to document specified information, to maintain those documents for 3 years, and to make those documents available for inspection and copying within 48 hours of a written request by any officer or agent of a police department, sheriffs department, the Department of the California Highway Patrol, the Attorney Generals office, a district attorneys office, or a city attorneys office.

By expanding the scope of existing crimes, and imposing additional requirements on towing companies and owners and operators of tow trucks, and other entities, the violation of which would be offenses under existing law, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1222

Author:(Bloom)

As Amended Ver:June 23, 2015

Majority vote

Original Committee Reference: TRANS.

SUMMARY: Adds provisions to curb "bandit towing" practices.

The Senate amendments:

1. Conform provisions related to towing and storage fee rate setting with federal requirements.

2. Clarify that the requirement to provide information in "writing" includes electronic records.

3. Make related, clarifying amendments.

AS PASSED BY THE ASSEMBLY, this bill:

1. Required that tow operators maintain specified documentation that they were summoned to the scene or flagged down to the scene of an accident or disabled vehicle and that they provide that documentation to law enforcement or specified investigating entities, upon request.

2. Required tow operators to provide vehicle owners or operators, if present at the scene, a detailed estimate of charges and services to be performed before the tow operator attaches the vehicle to the tow truck, or, if the vehicle needs to be moved to clear the roadway, immediately after the vehicle is moved to a safe shoulder. Tow operators summoned to the scene by a motor club and tow operators operating under a contract with law enforcement are exempted from this provision.

3. Required businesses taking possession of a towed vehicle to maintain specified documentation from the tow operator and that they provide that documentation to law enforcement or specified investigating entities, upon request.

4. Capped towing and storage fees at rates permitted by law enforcement.

5. Required tow operators to maintain copies of estimates, charging invoices, and proof of summons to the scene for a minimum of three years and requires that they make the information available to law enforcement and investigating agencies, upon request.

6. Established misdemeanor penalties, including 90 days in jail and/or a $2,500 fine, for tow operators that willfully violate these provisions.

7. Made related, clarifying amendments.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: "Bandit towing," or predatory towing as it is sometimes called, involves unauthorized towing of a vehicle. Bandit towing can include unauthorized removal of parked cars. It can also include towing a vehicle from the scene of an accident when the tow operator was not legally authorized to be at the scene. When a vehicle is towed by a bandit tower, a variety of scenarios can play out. For example, in some instances, bandits charge excessive towing fees or take a car to a vehicle storage facility and hold it for a prolonged period of time and then charge excessive storage fees when the owner comes to retrieve the vehicle. In other instances, bandit towers will take a vehicle to an unscrupulous auto shop, where costly and sometimes unnecessary repairs are performed.

Nearly a decade ago there was a growing problem with bandit towing that involved the removal of legitimately parked cars. In these cases, a tower would remove the parked car, take it to a storage lot, and then charge inflated towing and storage fees. To address the problem, AB 2210 (Goldberg), Chapter 609, Statutes of 2006, required written approval before the tow operator could remove a parked car. If the tow was on private property, the written approval had to come from the property owner and, if on public property, the written approval was required to be from law enforcement or a public agency. AB 2210, among other things, also required tow operators to maintain California Highway Patrol (CHP)-approved rates, vehicle storage facilities release towed vehicles after normal business hours, and set specified storage rate fees. According to the Los Angeles City Attorney's office, the sponsor of this bill, after AB 2210 took effect, incidences of predatory towing dropped dramatically in the Los Angeles area. It is believed, however, that many of these unscrupulous tow operators simply moved their operations "to the streets" and began illicitly towing disabled vehicles or vehicles involved in accidents.

Generally, existing law makes it illegal for a tow operator to approach a disabled vehicle or arrive on the scene of an accident to provide tow services unless they are specifically summoned by law enforcement or called to the scene (or flagged down) by the vehicle's owner or operator. Many bandit towers, however, are known to monitor police radio frequencies to determine where an accident has occurred or where a disabled vehicle is stopped and then arrive on the scene to offer assistance. If asked, bandit towers typically convey to the vehicle operator that they were dispatched by law enforcement, a motor club, or an insurance company. If asked by law enforcement, bandit towers will typically relay that they were flagged down or otherwise summoned by the vehicle's operator. Because there is no requirement for documentation of how the tower was summoned to the scene, it is difficult to refute their claims or prosecute them.

The author has introduced this bill in an effort to curb of predatory towing practices which, the sponsor indicates, is a growing problem in the Los Angeles area. Specifically, the sponsor notes that in a little over a year, 586 incidences of bandit towing were reported in California with most occurring in the Los Angeles area. Because many do not even realize they are involved in a scam, it is believed that the actual instances of bandit towing is far greater than the statistics indicate.

The author worked closely with the California Tow Truck Association (CTTA) and other stakeholders to craft workable data collection requirements. This bill also requires tow companies to present vehicle operators with a detailed estimate of charges, limits the towing and storage fees, requires businesses taking possession of a towed vehicle to document the transaction, and provides misdemeanor penalties for willfully violating these requirements. Given that documentation procedures set forth in AB 2210 were successful, it is likely that this bill will help curb bandit towing practices and give law enforcement and prosecuting entities an adequate "paper trail" to follow up on and, if necessary, prosecute bandit towers.

Please see the policy committee analysis for a full discussion of this bill.

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093 FN: 0001334

 CONSENT  

Bill No: AB 1222

Author: Bloom (D)

Amended: 6/23/15 in Senate

Vote: 21

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/7/15

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-0, 5/22/15 (Consent) - See last page for vote

SUBJECT: Tow trucks

SOURCE: Los Angeles City Attorney Michael N. Feuer

DIGEST: This bill imposes additional requirements on tow trucks responding to accident scenes.

ANALYSIS:

Existing law:

1. Allows a tow truck owner or operator to stop or park the tow truck on a highway to render assistance to a disabled vehicle.

2. Makes it a misdemeanor for a tow truck owner or operator to stop at an accident scene or near a disabled vehicle to solicit towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle or requested to perform the service by a law enforcement officer or public agency.

3. Makes it a misdemeanor for a tow truck owner or operator to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency, when the vehicle has been left unattended or when there is an injury as the result of an accident.

4. Exempts a vehicle owned or operated by, or under contract to, a motor club that stops to provide services for which compensation is neither requested nor received, provided those services do not include towing other than that necessary to remove the vehicle to the nearest safe shoulder. Allows the owner or operator of such vehicle to contact a law enforcement agency or other public agency on behalf of a motorist, but prohibits them from referring a motorist to a tow truck owner or operator unless the motorist is a member of the motor club, the motorist is referred to a tow truck owner or operator under contract with the motor club, and, if there is a dispatch facility that services the area and is owned or operated by the motor club, the referral is made through that dispatch facility.

5. Also exempts a tow truck operator employed by a law enforcement or other public agency, as well as a tow truck owner or operator acting under contract with a law enforcement or other public agency to abate abandoned vehicles, or to provide towing service or emergency road service to motorists while involved in freeway service patrol operations.

This bill:

1. Makes it a misdemeanor for a tow truck owner, operator, or company (hereafter referred to as a tow truck), unless summoned to an accident scene or requested to stop by the owner or operator of a disabled vehicle (hereafter referred to as a driver), to stop at an accident scene or near a disabled vehicle to solicit or provide towing services, move an unattended vehicle, or accrue charges for these services.

2. Requires a tow truck summoned to the scene by a driver to possess all of the following information in writing prior to arriving at the scene:

1. The make, model, year, and license plate number of the disabled vehicle;

2. The date and time the tow truck was summoned to the scene; and

3. The name of the person who took the call.

3. Exempts a tow truck summoned to the scene by a motor club pursuant to the request of the owner or operator of a disabled vehicle from the requirements of provision (2) if it possesses all the following in writing:

1. The business name of the motor club;

2. The identification number the motor club assigns to the referral; and

3. The date and time the tow truck was summoned to the scene by the motor club.

4. Requires a tow truck requested to stop at the scene by a driver to possess all of the following information in writing upon arriving at the scene:

1. The first and last name and telephone number of the driver;

2. The make, model, and license plate number, if one is displayed, of the disabled vehicle;

3. The date and time the tow truck was requested to stop; and

4. The name of the person who took the call.

5. Requires a tow truck summoned or requested by a law enforcement officer or public agency to possess the following in writing before leaving the scene:

1. The identity of the law enforcement agency or public agency;

2. The log number, call number, incident number, or dispatch number assigned to the incident by the law enforcement agency or public agency, the surname and badge number of the law enforcement officer, or the surname and employee identification number of the public agency employee; and

3. The date and time of the summons, request, or authorization.

6. Requires the tow truck, if the driver is present, to provide a written itemized estimate of all charges and services to be performed, prior to attaching the vehicle to the tow truck, including:

1. The name, address, telephone number, and motor carrier permit number of the towing company;

2. The license plate of the tow truck;

3. The first and last name of the tow truck owner, operator, or driver; and

4. A description and cost of all services, including but not limited to charges for labor, equipment, mileage from dispatch to return, and storage fees.

7. Requires the tow truck to obtain the driver’s signature on the itemized estimate and provide a copy to the driver.

8. Exempts from provision (7) a tow truck summoned to the scene by a motor club by a driver or summoned by a law enforcement agency or a public agency.

9. Prohibits a tow truck from charging a fee for towing or storage, or both, of a vehicle that exceeds the greater of the following:

1. The fee that would have been charged for towing or storage, or both, made at the request of a law enforcement agency under an agreement between a tow truck and the law enforcement agency that exercises primary jurisdiction in the area in which the vehicle was removed or attempted to be removed.

2. The fee that would have been charged for towing or storage, or both, under the rate approved for that tow truck by CHP for that jurisdiction.

10. Exempts from provision (9) the towing or transportation of a vehicle or temporary storage of a vehicle in transit, if the service is performed with the prior consent of a driver.

11. Prohibits any charge in excess of the estimated price without the prior consent of a driver.

12. Requires all charges to be recorded on an invoice.

13. Requires the tow truck to make available to law enforcement, within 48 hours of a request, written information from the time it appears on the scene until the time the vehicle is towed and released to a third party, and to maintain this information for three years.

14. Provides that a person who violates these provisions is guilty of a misdemeanor, punishable by a maximum fine of $2,500, a maximum of three months in county jail, or both.

15. Requires a business taking possession of a vehicle from a tow truck to document:

1. The name, address, and telephone number of the tow company;

2. The name and driver’s license of the tow truck operator;

3. The make, model, and license plate or vehicle identification number; and

4. The date and time that possession was taken of the vehicle.

16. Requires a business taking possession of a vehicle from a tow truck to make written information available to law enforcement or the Bureau of Automotive Repair within 48 hours of a request, and to maintain this information for three years. Provides that a person who willfully violates this provision is guilty of a misdemeanor, punishable by a maximum fine of $2,500, a maximum of three months in county jail, or both.

Comments

Purpose. The author states that in 2006, the Los Angeles City Attorney’s Office sponsored legislation (see below) to curb the practice of predatory towing, in which tow trucks would tow vehicles from parking lots late at night to a tow yard and then charge excessive fees to vehicle owners. This statute has been used successfully by prosecuting agencies across the state. The author states, however, that a new type of towing scam has emerged in which a tow truck driver appears unsolicited at an accident scene and convinces the vehicle owner to sign a release giving the tow truck driver permission to tow the vehicle. The tow truck driver then transports the vehicle to an affiliated repair shop or storage yard, which charges thousands of dollars in “storage” fees to the vehicle owner.

Existing law does not require a tow truck owner or operator to provide proof that they were solicited to the scene. Nor does it require the facility where the vehicle is towed to obtain the identity of the tow truck driver, making it nearly impossible for law enforcement to investigate allegations that the tow truck driver was a part of a scheme to extract excessive fees. In addition, the vehicle owner often fails to ask the amount of towing costs up front and the tow truck driver is not required to disclose them. The Los Angeles Police Commission has received numerous complaints about these issues from consumers, rental car companies, and legitimate tow businesses.

The author states that his bill will provide law enforcement with the necessary tools to stop this practice by requiring tow companies to obtain, maintain, and provide proof that they were solicited to the accident scene. This bill will also protect consumers by requiring tow truck drivers to disclose the towing and storage costs prior to towing the vehicle.

Negotiated language. The author states that he has negotiated extensively with interested parties to alleviate concerns and remove all opposition. The California Tow Truck Association states that it has removed its opposition based on the following amendments, reflected in the current version of this bill: (1) removal of provisions that would expand a local agency’s regulatory authority over a tow company to anyone that is operating within its jurisdiction; (2) removal of provisions allowing for impoundment of tow trucks for a violation of local regulations; (3) addition of provisions recognizing that towing companies legitimately summoned to the scene by law enforcement or a motor club are not the source of abuse in this area; (4) removal of provisions that would subject a towing company to a loss of its lien for even minor violations in this area; and (5) removal of “flagged down” language, which promoted abuse in this area.

Related/Prior Legislation

AB 529 (Lowenthal, Chapter 500, Statutes of 2013) —revised the Biennial Inspection of Terminals Program administered by CHP, included a provision to bring tow trucks into the program.

AB 2210 (Goldberg, Chapter 609, Statutes of 2006) — provided enhanced protections to motorists from unfair vehicle towing practices and unauthorized vehicle towing from private property.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/17/15)

Los Angeles City Attorney Michael N. Feuer (source)

California District Attorneys Association

City of Los Angeles

League of California Cities

National Insurance Crime Bureau

Official Police Garage Association of Los Angeles

OPPOSITION: (Verified 8/17/15)

None received

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

ASSEMBLY FLOOR: 74-0, 5/22/15

AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Alejo, Jones, O'Donnell, Olsen, Waldron, Weber

Prepared by: Erin Riches / T. & H. / (916) 651-4121

8/18/15 16:45:50

**** END ****

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: AB 1222 Hearing Date: 7/7/2015

SUBJECT: Tow trucks

DIGEST: This bill imposes additional requirements on tow trucks responding to accident scenes.

ANALYSIS:

Existing law:

1. Allows a tow truck owner or operator to stop or park the tow truck on a highway to render assistance to a disabled vehicle.

2. Makes it a misdemeanor for a tow truck owner or operator to stop at an accident scene or near a disabled vehicle to solicit towing services, either directly or indirectly, or to furnish any towing services, unless summoned to the scene, requested to stop, or flagged down by the owner or operator of a disabled vehicle or requested to perform the service by a law enforcement officer or public agency.

3. Makes it a misdemeanor for a tow truck owner or operator to move any vehicle from a highway, street, or public property without the express authorization of the owner or operator of the vehicle or a law enforcement officer or public agency, when the vehicle has been left unattended or when there is an injury as the result of an accident.

4. Exempts a vehicle owned or operated by, or under contract to, a motor club that stops to provide services for which compensation is neither requested nor received, provided those services do not include towing other than that necessary to remove the vehicle to the nearest safe shoulder. Allows the owner or operator of such vehicle to contact a law enforcement agency or other public agency on behalf of a motorist, but prohibits them from referring a motorist to a tow truck owner or operator unless the motorist is a member of the motor club, the motorist is referred to a tow truck owner or operator under contract with the motor club, and, if there is a dispatch facility that services the area and is owned or operated by the motor club, the referral is made through that dispatch facility.

5. Also exempts a tow truck operator employed by a law enforcement or other public agency, as well as a tow truck owner or operator acting under contract with a law enforcement or other public agency to abate abandoned vehicles, or to provide towing service or emergency road service to motorists while involved in freeway service patrol operations.

This bill:

1. Makes it a misdemeanor for a tow truck owner, operator, or company (hereafter referred to as a tow truck), unless summoned to an accident scene or requested to stop by the owner or operator of a disabled vehicle (hereafter referred to as a driver), to stop at an accident scene or near a disabled vehicle to solicit or provide towing services, move an unattended vehicle, or accrue charges for these services.

2. Requires a tow truck summoned to the scene by a driver to possess all of the following information in writing prior to arriving at the scene:

1. The make, model, year, and license plate number of the disabled vehicle;

2. The date and time the tow truck was summoned to the scene; and

3. The name of the person who took the call.

3. Exempts a tow truck summoned to the scene by a motor club pursuant to the request of the owner or operator of a disabled vehicle, from the requirements of provision (2) if it possesses all the following in writing:

1. The business name of the motor club;

2. The identification number the motor club assigns to the referral; and

3. The date and time the tow truck was summoned to the scene by the motor club.

4. Requires a tow truck requested to stop at the scene by a driver to possess all of the following information in writing upon arriving at the scene:

1. The first and last name and telephone number of the driver;

2. The make, model, and license plate number, if one is displayed, of the disabled vehicle;

3. The date and time the tow truck was requested to stop; and

4. The name of the person who took the call.

5. Requires a tow truck summoned or requested by a law enforcement officer or public agency to possess the following in writing before leaving the scene:

1. The identity of the law enforcement agency or public agency;

2. The log number, call number, incident number, or dispatch number assigned to the incident by the law enforcement agency or public agency, the surname and badge number of the law enforcement officer, or the surname and employee identification number of the public agency employee; and

3. The date and time of the summons, request, or authorization.

6. Requires the tow truck, if the driver is present, to provide a written itemized estimate of all charges and services to be performed, prior to attaching the vehicle to the tow truck, including:

1. The name, address, telephone number, and motor carrier permit number of the towing company;

2. The license plate of the tow truck;

3. The first and last name of the tow truck owner, operator, or driver; and

4. A description and cost of all services, including but not limited to charges for labor, equipment, mileage from dispatch to return, and storage fees.

7. Requires the tow truck to obtain the driver’s signature on the itemized estimate and provide a copy to the driver.

8. Exempts from provision (7) a tow truck summoned to the scene by a motor club by a driver or summoned by a law enforcement agency or a public agency.

9. Prohibits a tow truck from charging a fee for towing or storage, or both, of a vehicle that exceeds the greater of the following:

1. The fee that would have been charged for towing or storage, or both, made at the request of a law enforcement agency under an agreement between a tow truck and the law enforcement agency that exercises primary jurisdiction in the area in which the vehicle was removed or attempted to be removed.

2. The fee that would have been charged for towing or storage, or both, under the rate approved for that tow truck by CHP for that jurisdiction.

10. Exempts from provision (10) the towing or transportation of a vehicle or temporary storage of a vehicle in transit, if the service is performed with the prior consent of a driver.

11. Prohibits any charge in excess of the estimated price without the prior consent of a driver.

12. Requires all charges to be recorded on an invoice.

13. Requires the tow truck to make available to law enforcement, within 48 hours of a request, written information from the time it appears on the scene until the time the vehicle is towed and released to a third party, and to maintain this information for three years.

14. Provides that a person who violates these provisions is guilty of a misdemeanor, punishable by a maximum fine of $2,500, a maximum of three months in county jail, or both.

15. Requires a business taking possession of a vehicle from a tow truck to document:

1. The name, address, and telephone number of the tow company;

2. The name and driver’s license of the tow truck operator;

3. The make, model, and license plate or vehicle identification number; and

4. The date and time that possession was taken of the vehicle.

16. Requires a business taking possession of a vehicle from a tow truck to make written information available to law enforcement or the Bureau of Automotive Repair within 48 hours of a request, and to maintain this information for three years. Provides that a person who willfully violates this provision is guilty of a misdemeanor, punishable by a maximum fine of $2,500, a maximum of three months in county jail, or both.

COMMENTS:

Purpose. The author states that in 2006, the Los Angeles City Attorney’s Office sponsored legislation (see below) to curb the practice of predatory towing, in which tow trucks would tow vehicles from parking lots late at night to a tow yard and then charge excessive fees to vehicle owners. This statute has been used successfully by prosecuting agencies across the state. The author states, however, that a new type of towing scam has emerged in which a tow truck driver appears unsolicited at an accident scene and convinces the vehicle owner to sign a release giving the tow truck driver permission to tow the vehicle. The tow truck driver then transports the vehicle to an affiliated repair shop or storage yard, which charges thousands of dollars in “storage” fees to the vehicle owner.

Existing law does not require a tow truck owner or operator to provide proof that they were solicited to the scene. Nor does it require the facility where the vehicle is towed to obtain the identity of the tow truck driver, making it nearly impossible for law enforcement to investigate allegations that the tow truck driver was a part of a scheme to extract excessive fees. In addition, the vehicle owner often fails to ask the amount of towing costs up front and the tow truck driver is not required to disclose them. The Los Angeles Police Commission has received numerous complaints about these issues from consumers, rental car companies, and legitimate tow businesses.

The author states that his bill will provide law enforcement with the necessary tools to stop this practice by requiring tow companies to obtain, maintain, and provide proof that they were solicited to the accident scene. This bill will also protect consumers by requiring tow truck drivers to disclose the towing and storage costs prior to towing the vehicle.

Negotiated language. The author states that he has negotiated extensively with interested parties to alleviate concerns and remove all opposition. The California Tow Truck Association states that it has removed its opposition based on the following amendments, reflected in the current version of this bill: (1) removal of provisions that would expand a local agency’s regulatory authority over a tow company to anyone that is operating within its jurisdiction; (2) removal of provisions allowing for impoundment of tow trucks for a violation of local regulations; (3) addition of provisions recognizing that towing companies legitimately summoned to the scene by law enforcement or a motor club are not the source of abuse in this area; (4) removal of provisions that would subject a towing company to a loss of its lien for even minor violations in this area; and (5) removal of “flagged down” language, which promoted abuse in this area.

Related Legislation:

AB 529 (Lowenthal, Chapter 500, Statutes of 2013) — which revised the Biennial Inspection of Terminals Program administered by CHP, included a provision to bring tow trucks into the program.

AB 2210 (Goldberg, Chapter 609, Statutes of 2006) — provided enhanced protections to motorists from unfair vehicle towing practices and unauthorized vehicle towing from private property.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 1, 2015.)

SUPPORT:

Los Angeles City Attorney Michael N. Feuer (sponsor)

California District Attorneys Association

City of Los Angeles

League of California Cities

National Insurance Crime Bureau

Official Police Garage Association of Los Angeles

OPPOSITION:

None received

-- END --

Date of Hearing: May 13, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 1222

Author:(Bloom) – As Amended Ver:April 29, 2015

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill places new requirements on tow truck operators to curb "bandit towing" practices involving disabled vehicles and vehicles in an accident. Specifically, this bill:

1. Makes it a misdemeanor for a tow truck operator to stop at the scene of an accident or near a disabled vehicle to solicit towing services, unless requested by a law enforcement officer, public agency, or the operator of the disable vehicle.

2. Specifies information that a tow truck operator must possess when summoned to or flagged down to assist the owner of a disabled vehicle, or summoned by a law enforcement officer or public agency.

3. Requires a tow truck operator, prior to attaching a vehicle to a truck, to furnish the vehicle owner a written itemized estimate of all charges and services to be performed, except if summoned by a motor club upon request of the vehicle owner or by a law enforcement officer or public agency.

4. Requires the tow company owner or operator to maintain the information specified in (2) and (3) for three years and to make the information available within 48 hours of a request by a law enforcement entity or prosecutor.

5. Stipulates that towing and storage fees shall not exceed the greater of (a) the fee that would have been charged if done at the request of the local law enforcement agency, or (b) the rate approved by the CHP for the jurisdiction where the vehicle was removed.

6. Makes a willful violation of (2), (3) or (4) a misdemeanor punishable by a fine of up to $2,500 and/or imprisonment in county jail for up to three months.

FISCAL EFFECT:

Potential nonreimbursable costs for enforcement, offset to some extent by fine revenues.

COMMENTS:

1. Background. Nearly a decade ago there was a growing problem with bandit towing, whereby to tow truck operator would remove a legitimately parked car, take it to a storage lot, and then charge inflated towing and storage fees. In response, AB 2210 (Goldberg), Chapter 609, Statutes of 2006, required written approval before the tow operator could remove a parked car. If the tow was on private property, the written approval had to come from the property owner and, if on public property, the written approval was required to be from law enforcement or a public agency. AB 2210, among other things, also required tow operators to maintain California Highway Patrol (CHP)-approved rates, vehicle storage facilities release towed vehicles after normal business hours, and set specified storage rate fees. According to the Los Angeles City Attorney's office, the sponsor of AB 1222, after AB 2210 took effect, incidences of predatory towing dropped dramatically in the Los Angeles area.

2. Purpose. It is believed that many unscrupulous tow operators simply moved their operations "to the streets" and began illicitly towing disabled vehicles or vehicles involved in accidents. According to the sponsor, in a little over a year, 586 incidences of bandit towing were reported in California with most occurring in the Los Angeles area. The author has introduced AB 1222 as a further effort to curb these predatory towing practices by adopting requirements similar to those of AB 2210.

Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081

Date of Hearing: April 27, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 1222 (

Author:Bloom) – As Amended Ver:April 29, 2015

SUBJECT: Tow trucks.

SUMMARY: Adds provisions to curb "bandit towing" practices. Specifically, this bill:

1. Requires that tow operators maintain specified documentation that they were summoned to the scene or flagged down to the scene of an accident or disabled vehicle and that they provide that documentation to law enforcement or specified investigating entities, upon request.

2. Requires tow operators to provide vehicle owners or operators, if present at the scene, a detailed estimate of charges and services to be performed before the tow operator attaches the vehicle to the tow truck, or, if the vehicle needs to be moved to clear the roadway, immediately after the vehicle is moved to a safe shoulder. Tow operators summoned to the scene by a motor club and tow operators operating under a contract with law enforcement are exempted from this provision.

3. Requires businesses taking possession of a towed vehicle to maintain specified documentation from the tow operator and that they provide that documentation to law enforcement or specified investigating entities, upon request.

4. Caps towing and storage fees at rates permitted by law enforcement.

5. Requires tow operators to maintain copies of estimates, charging invoices, and proof of summons to the scene for a minimum of three years and requires that they make the information available to law enforcement and investigating agencies, upon request.

6. Establishes misdemeanor penalties, including 90 days in jail and/or a $2,500 fine, for tow operators that willfully violate these provisions.

7. Make related, clarifying amendments.

EXISTING LAW:

1. Generally authorizes a local jurisdiction to license and regulate the operation of tow truck services whose place of business or employment is within their jurisdiction and provides that failure obtain a license is punishable by seizure and impoundment of the tow truck.

2. Generally prohibits a tow operator from stopping or soliciting tow services at the scene of an accident or near a disabled vehicle unless called to the scene by the owner of the vehicle, law enforcement, or a public agency.

FISCAL EFFECT: Unknown

COMMENTS: "Bandit towing," or predatory towing as it is sometimes called, involves unauthorized towing of a vehicle. Bandit towing can include unauthorized removal of parked cars. It can also include towing a vehicle from the scene of an accident when the tow operator was not legally authorized to be at the scene. When a vehicle is towed by a bandit tower, a variety of scenarios can play out. For example, in some instances, bandits charge excessive towing fees or take a car to a vehicle storage facility and hold it for a prolonged period of time and then charge excessive storage fees when the owner comes to retrieve the vehicle. In other instances, bandit towers will take a vehicle to an unscrupulous auto shop, where costly and sometimes unnecessary repairs are performed.

Nearly a decade ago there was a growing problem with bandit towing that involved the removal of legitimately parked cars. In these cases, a tower would remove the parked car, take it to a storage lot, and then charge inflated towing and storage fees. To address the problem, AB 2210 (Goldberg), Chapter 609, Statutes of 2006, required written approval before the tow operator could remove a parked car. If the tow was on private property, the written approval had to come from the property owner and, if on public property, the written approval was required to be from law enforcement or a public agency. AB 2210, among other things, also required tow operators to maintain California Highway Patrol (CHP)-approved rates, vehicle storage facilities release towed vehicles after normal business hours, and set specified storage rate fees. According to the Los Angeles City Attorney's office, the sponsor of AB 1222, after AB 2210 took effect, incidences of predatory towing dropped dramatically in the Los Angeles area. It is believed, however, that many of these unscrupulous tow operators simply moved their operations "to the streets" and began illicitly towing disabled vehicles or vehicles involved in accidents.

Generally, existing law makes it illegal for a tow operator to approach a disabled vehicle or arrive on the scene of an accident to provide tow services unless they are specifically summoned by law enforcement or called to the scene (or flagged down) by the vehicle's owner or operator. Many bandit towers, however, are known to monitor police radio frequencies to determine where an accident has occurred or where a disabled vehicle is stopped and then arrive on the scene to offer assistance. If asked, bandit towers typically convey to the vehicle operator that they were dispatched by law enforcement, a motor club, or an insurance company. If asked by law enforcement, bandit towers will typically relay that they were flagged down or otherwise summoned by the vehicle's operator. Because there is no requirement for documentation of how the tower was summoned to the scene, it is difficult to refute their claims or prosecute them.

The author has introduced AB 1222 in an effort to curb of predatory towing practices which, the sponsor indicates, is a growing problem in the Los Angeles area. Specifically, the sponsor notes that in a little over a year, 586 incidences of bandit towing were reported in California with most occurring in the Los Angeles area. Because many do not even realize they are involved in a scam, it is believed that the actual instances of bandit towing is far greater than the statistics indicate.

The author worked closely with the California Tow Truck Association (CTTA) and other stakeholders to craft workable data collection requirements. The bill also requires tow companies to present vehicle operators with a detailed estimate of charges, limits the towing and storage fees, requires businesses taking possession of a towed vehicle to document the transaction, and provides misdemeanor penalties for willfully violating these requirements. Given that documentation procedures set forth in AB 2210 were successful, it is likely that this bill will help curb bandit towing practices and give law enforcement and prosecuting entities an adequate "paper trail" to follow up on and, if necessary, prosecute bandit towers.

REGISTERED SUPPORT / OPPOSITION:

Support

Official Police Garage Association of Los Angeles

Opposition

None on file

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093

Date of Hearing: April 13, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 1222

Author:(Bloom) – As Amended Ver:April 6, 2015

SUBJECT: Tow trucks

SUMMARY: Adds provisions to curb "bandit towing" practices. Specifically, this bill:

1. Authorizes a local jurisdiction to license and regulate tow operators working within the local jurisdiction and allows law enforcement to seize, remove, and impound tow trucks operated without a license.

2. Requires a tow operator who is summoned to the scene of an accident to possess certain information prior to arriving at the scene.

3. Requires a tow operator who is requested to stop or is flagged down at the scene of an accident or disabled vehicle to collect certain information and provide it to law enforcement or other investigating agencies, upon request.

4. Requires a tow operator who moves an unattended vehicle or a vehicle involved in an injury accident, to obtain certain information and provide it to law enforcement or other investigating agencies, upon request.

5. Requires a tow operator to furnish specified information to a vehicle's owner or operator prior to attaching the vehicle to the tow truck.

6. Requires a tow operator, prior to removing a vehicle, to obtain the vehicle owner or operator's signature on an itemized, written estimate of costs and furnish a copy to the owner or operator of the vehicle.

7. Requires that if neither the vehicle owner or operator is present at the time of the tow, the tow operator to send a copy of the itemized invoice, by registered mail, within one business day to the address where the vehicle is registered.

8. Prohibits charges made in excess of the written estimate without prior written consent of the vehicle's owner or operator.

9. Prohibits tow operators from placing a lien against a vehicle for non-payment if the tow operator fails to collect or provide specified information related to the tow.

10. Requires a tow operator to maintain all required written documentation for three years and to make the documents available for inspection and copying within 48 hours of a written request by law enforcement or other investigating agencies.

11. Requires a business taking possession of a towed vehicle to collect specified information when the vehicle is dropped off, maintain the information for three years, and make it available for inspection by law enforcement or other investigating agencies.

12. Revises and recasts various provisions and makes related, clarifying amendments.

EXISTING LAW:

1. Generally authorizes a local jurisdiction to license and regulate the operation of tow truck services whose place of business or employment is within their jurisdiction and provides that failure obtain a license is punishable by seizure and impoundment of the tow truck.

2. Generally prohibits a tow operator from stopping or soliciting tow services at the scene of an accident or near a disabled vehicle unless called to the scene by the owner of the vehicle, law enforcement, or a public agency.

FISCAL EFFECT: Unknown

COMMENTS: "Bandit towing," or predatory towing as it is sometimes called, involves unauthorized towing of a vehicle. Bandit towing can include unauthorized removal of parked cars. It can also include towing a vehicle from the scene of an accident when the tow operator was not legally authorized to be at the scene. When a vehicle is towed by a bandit tower, a variety of scenarios can play out. For example, in some instances, bandits charge excessive towing fees or take a car to a vehicle storage facility and hold it for a prolonged period of time and then charge excessive storage fees when the owner comes to retrieve the vehicle. In other instances, bandit towers will take a vehicle to an unscrupulous auto shop, where costly and sometimes unnecessary repairs are performed.

Nearly a decade ago there was a growing problem with bandit towing that involved the removal of legitimately parked cars. In these cases, a tower would remove the parked car, take it to a storage lot, and then charge inflated towing and storage fees. To address the problem, AB 2210 (Goldberg), Chapter 609, Statutes of 2006, required written approval before the tow operator could remove a parked car. If the tow was on private property, the written approval had to come from the property owner and, if on public property, the written approval was required to be from law enforcement or a public agency. AB 2210, among other things, also required tow operators to maintain California Highway Patrol (CHP)-approved rates, vehicle storage facilities release towed vehicles after normal business hours, and set specified storage rate fees. According to the Los Angeles City Attorney's office, the sponsor of AB 1222, after AB 2210 took effect, incidences of predatory towing dropped dramatically in the Los Angeles area. It is believed, however, that many of these unscrupulous tow operators simply moved their operations "to the streets" and began illicitly towing disabled vehicles or vehicles involved in accidents.

Generally, existing law makes it illegal for a tow operator to approach a disabled vehicle or arrive on the scene of an accident to provide tow services unless they are specifically summoned by law enforcement or called to the scene (or flagged down) by the vehicle's owner or operator. Many bandit towers, however, are known to monitor police radio frequencies to determine where an accident has occurred or where a disabled vehicle is stopped and then arrive on the scene to offer assistance. If asked, bandit towers typically convey to the vehicle operator that they were dispatched by law enforcement, a motor club, or an insurance company. If asked by law enforcement, bandit towers will typically relay that they were flagged down or otherwise summoned by the vehicle's operator. Because there is no requirement for documentation of how the tower was summoned to the scene, it is difficult to refute their claims or prosecute them.

The author has introduced AB 1222 in an effort to curb of predatory towing practices which, the sponsor indicates, is a growing problem in the Los Angeles area. Specifically, the sponsor notes that in a little over a year, 586 incidences of bandit towing were reported in California with most occurring in the Los Angeles area. To address this growing problem, AB 1222 implements many of the successful documentation requirements set forth in AB 2210. AB 1222 also sets rates for tow operators and storage facilities and requires each to maintain specific information on who summoned them to the scene. AB 1222 provides that the information must be made available to law enforcement and other investigating agencies, as required. Additionally,
AB 1222 expands the authority of local jurisdictions to permit and license tow companies operating within their jurisdiction (regardless of the location of the tow operator's principal place of business).

While the California Tow Truck Association (CTTA) vehemently supports actions that crack down on bandit towing practices, they oppose the bill in its current form primarily because of the provision that would allow a local jurisdiction to license all tow operators operating in a local jurisdiction would make it difficult and costly for legitimate tow operators to conduct business while likely having little impact on illicit towing practices. CTTA also expressed concerns about the amount of information that towers would be required to collect "on scene" but they were willing to work with the author to establish working practices that accomplished the goal of documenting how a tow operator was summoned to the scene.

To address concerns raised by CTTA and others, the author worked closely with stakeholders to craft amendments that removed the local licensing and other onerous data collection requirements. The amendments, discussed below, provide data collection requirements that are tailored for specific scenarios (e.g., the tow operator was summoned by law enforcement, through an auto club, or flagged down at the scene) and data collection and data storage requirements are far less burdensome. The amendments also set forth misdemeanor penalties for failure to comply, which CTTA believes will improve AB 1222’s effectiveness. With regard to licensing, CTTA has agreed to work with the author and other stakeholders over the coming year on a proposal to develop a statewide licensing structure for all tow operators. With the proposed amendments, CTTA and others have removed their opposition

Author's proposed amendments: The author's proposed amendments attempt to reduce bandit towing by requiring tow companies to maintain proof that they were actually summoned to the scene or were flagged down and to provide the information to law enforcement and others, as specified. Tow operators and others subject to the bill's provisions would be required to keep the specified documentation for three years and make it available to law enforcement and other specified state and local agencies, upon request. The amendments also require tow companies to present a detailed estimate of charges to customers for services, limits the towing and storage fees that can be charged, requires businesses taking possession of a towed vehicle to document the transaction, and provides misdemeanor penalties for willfully violating these requirements. Specifically, the amendments:

1. Delete proposed provisions authorizing a local jurisdiction to license and regulate tow trucks that operate within their jurisdiction regardless of whether or not the tow operator's principal place of business is within the local jurisdiction.

2. Delete proposed requirements that written estimates for tow services be mailed to a customer if they are not present at the scene when the vehicle is towed.

3. Delete provisions prohibiting a tow operator from placing a lien on a vehicle if the tow operator does not comply with reporting provisions.

4. Adds the requirement that a tow operator summoned to the scene by the owner or operator of a disabled vehicle possess all of the following information in writing prior to arriving at the scene:

1. The name of the person and phone number of the person who summoned them to the scene;

2. The make, model, and license plate number of the disabled vehicle;

3. The date and time it was summoned; and,

4. The name of the person(s) who obtained the information.

5. Adds the requirement that a tow operator summoned to the scene by a motor club by the owner or operator of a disabled vehicle possess the following information prior to arriving at the scene:

1. The business name of the motor club;

2. The identification number the motor club assigns to the referral; and,

3. The date and time it was summoned to the scene by the motor club.

6. Adds the requirement that a tow operator requested to stop or flagged down at the scene by the owner or operator of a disabled vehicle possess the following information in writing before leaving the scene:

1. The first and last name and working telephone number of the person who requested the stop or flagged it down;

2. The make, model, license and plate number (if displayed) of the disabled vehicle;

3. The date and time it was requested to stop or was flagged down; and,

4. The name of the person(s) who obtained the information.

7. Adds the requirement that a tow operator requested to stop by a law enforcement officer or public agency possess the following information, in writing before leaving the scene:

1. The identity of the law enforcement agency or public agency;

2. The log number, call number, incident number or dispatch number assigned to the incident by law enforcement or the public agency or the surname and badge number of the law enforcement office or surname and employee identification number of the public agency employee; and,

3. The date and time of the summons, request, or express authorization.

8. Adds the requirement that a tow operator make the written information regarding the summons available to law enforcement from the time it appears to the scene until the vehicle is towed and released.

9. Adds the requirement that the tow operator maintain the written information regarding the summons and make the information available for inspection and copying within 48 hours of a written request from law enforcement.

10. Adds the requirement that a tow operator furnish a written, itemized estimate of all charges and services to be performed to the owner or operator of the disabled vehicle (if present) that includes information including a description of all service including labor and equipment, and storage fees expressed as a 24-hour rate.

11. Adds the requirement that the owner or operator of the disabled vehicle sign the estimate and be provided with a copy.

12. Adds the requirement that the collection of information on who summoned the tow operator to the scene may be performed after the vehicle is attached and removed to the nearest safe shoulder or street, if done at the request of law enforcement or a public agency, provided the estimate is furnished prior to removal of the vehicle from the safe shoulder or street.

13. Adds the requirement that the tow operator maintain the written documents for 3 years and that they make the documents available for inspection and copying within 48 hours of a written request of law enforcement, the Attorney General's office, or a district attorney of a local jurisdiction.

14. Adds the requirement that a tow operator summoned to the scene by a motor club or by law enforcement or a public agency is exempt from the requirement to provide an itemized estimate of charges.

15. Adds the requirement that a tow operator may not charge a fee for towing or storage of a vehicle over and above law enforcement-approved rates.

16. Adds the requirement that no towing charges be made in excess of the estimated price without prior consent of the vehicle's owner or operator.

17. Adds the requirement that all services (including warranty or zero cost services) be recorded on an invoice.

18. Adds the requirement that failure to comply with the requirements is a misdemeanor punishable by a fine of not more than $2,500 or imprisonment in a county jail for not more than three months or both.

19. Adds the requirement that a business taking possession of a vehicle from a tow truck operator must collect the following information, maintain it for 3 years, and provide it when requested to do so by law enforcement or an investigating agency:

1. The name, address and telephone number of the towing company;

2. The make, model, license plate number, and vehicle identification number of the tow truck; and,

3. The date and time that possession was taken of the vehicle.

20. Adds the requirement that if a business takes the possession of a vehicle after hours that the information that would be collected at the in-person drop off must be collected from the towing company on the next business day.

21. Make related, clarifying amendments.

Previous legislation: AB 529 (Lowenthal), Chapter 500, Statutes of 2013, revised the BIT Program as administered by CHP to, among other things, include tow trucks under the program.

AB 2210 (Goldberg) Chapter 609, Statutes of 2006 enhanced protections provided to motorists from unfair vehicle towing practices and unauthorized vehicle towing from private property.

SB 600 (Dills) Chapter 755, Statutes of 1991, among other things, prohibited the owner or operator of a tow truck to stop at the scene of an accident or near a disable vehicle unless summoned to the scene, requested to stop, or flagged down by the owner or operator of the vehicle or a law enforcement officer or public agency.

REGISTERED SUPPORT / OPPOSITION:

Support

Official Police Garage Association of Los Angeles

Opposition

Note: the following entities have indicated they will remove their opposition if the proposed amendments are accepted.

California Tow Truck Association

Glowniak Quality Towing, Inc.

Hammer Towing, Inc.

Royal Coaches Auto Body and Towing

United Coalition for Motor Club Safety

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093