State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2306: towing companies; insurance companies; owners

PRIME SPONSOR: Representative Campbell, LD 1

BILL STATUS: Caucus & COW

                TI: DPA 7-0-0-1

Legend: AG – Attorney General Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to companies towing vehicles after accidents.

Provisions

1.       Directs a towing company to release a towed vehicle to the owner on the day the request for release is provided to the towing company, if conditions are met. (Sec. 1)

2.       Allows the request for release to be emailed or delivered by other electronic means to the towing company. (Sec. 1)

3.       Requires a towing company to:

a.       Define a storage day from midnight of one day to midnight of the next day for billing purposes;

b.       Allow the payment of fees and charges to be made in the form of cash, credit card (without a processing fee), debit card, check, cashier's check INSURANCE COMPANY CHECK or money order;

c.        Make all fees and charges pursuant to the terms of the APPLICABLE contract between the company and the JURISDICTION GOVERNING THE TOW AND STORAGE; and

d.       Be open OR OTHERWISE AVAILABLE to the public, or by appointment, to provide current billing statements and release vehicles between 8:30 9:00 am and 6:00 5:00 pm Monday through Friday, excluding holidays.

i.         A towing company may not accrue storage fees and charges for any day when the lot is closed NOT OPEN AND THE ABILITY OBTAIN A DETAILED STATEMENT OF CHARGES OR TO HAVE A VEHICLE RELEASED IS NOT OTHERWISE AVAILABLE contrary to this requirement. (Sec. 1) (TI)

4.       Prohibits a towing company from:

a.       Imposing additional fees or charges between receiving the request for the release and providing the detailed written statement;

b.       Charging more than the amount authorized by the contract or statute FOR A PRIMARY TOW;

c.        Refusing to release a vehicle after the owner or insurance company presents a request for release and pays the authorized fees and charges;

d.       Requiring payment for the removal of personal property that is inside the vehicle if the inspection and removal occurs during normal business hours; and

e.       ASSESSING STORAGE CHARGES IF THE COMPANY FAILS TO PROVIDE A DETAILED LIST OF CHARGES BY CLOSE OF BUSINESS ON THE DAY THE STATEMENT IS REQUESTED, UNTIL THE DAY THE COMPANY PROVIDES THE STATEMENT TO THE OWNER OR INSURANCE COMPANY.

f.         Accruing storage fees and charges for the calendar days on which the vehicle is brought to the storage facility or retrieved by the owner or insurance company. (Sec. 1) (TI)

5.       Authorizes the owner, or a person designated in writing by the owner OR THE INSURER, during normal business hours to:

a.       Inspect the vehicle at the towing company's storage lot;

b.       Report any damage to the vehicle ALLEGEDLY CAUSED BY THE TOWING COMPANY to the towing company at the time of inspection; and

c.        Remove personal property from the vehicle, WITH A RELEASE OF LIABILITY SIGNED BY THE OWNER OR INSURER, IF REQUIRED. (Sec. 1) (TI)

6.       Instructs a towing company to tow a vehicle to the closest storage lot designated in the applicable contract after an accident, unless:

a.       The owner or insurance company directs the company to a different location; or

b.       THERE IS INSUFFICIENT CAPACITY IN THE CLOSEST STORAGE LOT. (Sec. 1) (TI)

7.       Creates a cause of action or a right to bring an action against a towing company to:

a.       Collect unauthorized fees or charges that a towing company imposes and collects; and

b.       For failing to release a motor vehicle if the owner or insurance company provides the company with the request for release and pays the authorized fees and charges. (Sec. 1) (TI)

8.       Stipulates that all acts of employees or contractors of a towing company WITHIN THE SCOPE OF EMPLOYMENT are deemed to be acts of the towing company. (Sec. 1) (TI)

9.       Classifies an act or practice in violation of this section as an unlawful practice and authorizes the AG to investigate and take appropriate action against the towing company, including any civil or criminal action, remedy and penalty provided by law. (Sec. 1)

10.   Classifies failure to release a vehicle on receipt of the request for release and payment of authorized fees and charges as a petty offense for the first violation and a Class 3 misdemeanor (30 days/$500 plus surcharges for individuals, $2,000 plus surcharges for enterprises) for a subsequent violations within 3 years. (Sec. 1)

11.   Asserts that a tow resulting from a motor vehicle accident is nonconsensual. (Sec. 1) (TI)

12.   Stipulates that a lien does not exist in favor of a towing company or storage lot for unpaid towing or storage fees or charges that are incurred.

a.       ASSERTS THAT THIS DOES NOT AFFECT THE APPLICABILITY OF STATUTE RELATING TO UNCLAIMED VEHICLES (Sec. 1) (TI)

13.   AUTHORIZES A TOW COMPANY TO ASSESS ADMINISTRATIVE FEES FOR UTILIZING THE SERVICES OF A THIRD-PARTY AUTOMATED DISPATCHER OR TOW MANAGEMENT PROVIDER. (TI)

14.   STIPULATES THAT THE PREVAILING CONTRACTS BETWEEN A TOW COMPANY AND A JURISDICTION APPLY IN TOW AND STORAGE TRANSACTIONS, EXCEPT AS PROVIDED IN THIS SECTION. (TI)

15.   INSTRUCTS A TOWING COMPANY TO PROVIDE A DETAILED STATEMENT OF CHARGES BY CLOSE OF BUSINESS ON THE DAY AN INSURANCE COMPANY OR OWNER REQUESTS THE STATEMENT BEFORE NOON. (TI)

16.   INCLUDES CHARGES FOR THE DAY OF THE STATEMENT REQUEST AND ITEMIZED CHARGES IF THE VEHICLE IS RELEASED ON THE FOLLOWING DAY IN THE REQUIRED INFORMATION FOR THE STATEMENT OF CHARGES. (TI)

17.   Defines contract. (Sec. 1)

18.   Removes the definition of owner. (Sec. 1)

19.   Makes technical and conforming changes. (Sec. 1)

Current Law

Unless otherwise directed by a law enforcement officer, a towing company is required to tow a vehicle from an accident to a location specified by the owner if the owner is present an able to indicate the preference, or to a vehicle storage yard designated in the contract if no preference is indicated.

A towing company is required to release a towed vehicle to a person designated in writing by an insurance company during normal business hours on the day the request for release is provided in writing to the towing company and payment for all reasonable towing, storage and related fees are paid. The company is also required to provide a detailed statement of all charges and fees at no cost.

A towing company may not charge additional storage fees if the insurance company provides the written request for release and removes the vehicle during normal business hours on the same day. However, additional storage charges may accrue until final payment is made and the vehicle is removed from the premises. A towing company may charge proration for partial days after a request for release and payment has been made (A.R.S. § 28-4847).

 

 

 

 

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Fifty-third Legislature                  HB 2306

Second Regular Session                               Version 2: Caucus & COW

 

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