Assigned to TRANSIT AS
PASSED BY COMMITTEE
Assigned to TRANSIT AS
PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
towing companies; insurance; owners
Purpose
Outlines requirements and restrictions for towing companies' vehicle transport and storage, billing practices and vehicle release.
Background
A towing company is required, unless otherwise directed by a law enforcement officer, to tow a vehicle to: 1) a location specified by the owner of the vehicle if the owner is present at the time of the tow and is capable of indicating preference; or 2) a vehicle storage yard designated in the contract under which the towing company has responsibility for towing the vehicle. The towing company must provide a detailed statement of all charges and fees at no cost and release the vehicle to a person designated in writing by an insurance company during normal business hours on the day the request for release is made in writing and all incurred charges have been paid. A towing company is allowed to incur additional storage charges until a final payment is made and the vehicle is removed from the storage lot (A.R.S. § 28-4847).
There is no anticipated fiscal impact on the state General Fund associated with this legislation.
Provisions
1. Prohibits a towing company from refusing to release a motor vehicle after the vehicle owner or insurance company submits a request to release the vehicle and pays authorized fees and charges, and classifies failure to release the vehicle as a petty offense for the first violation and a class 3 misdemeanor for a subsequent violation within three years.
2. Prohibits a towing company from charging the owner or insurance company more than the contractually authorized amount for a primary tow.
3. Allows an owner or insurance company, with proof of ownership, to inspect the vehicle during normal business hours, remove any personal items from the vehicle without being charged and report any damages to the vehicle allegedly caused by the towing company.
4. Requires a towing company to provide a detailed statement of charges at the request of the owner or insurance company:
a) that includes the itemized charges for the day of the request and the daily rate; and
b) by the end of the business day, if the request was made before noon.
5. Prohibits a towing company from:
a) adding any additional fees once a vehicle release request is made; and
b) assessing any storage charges for the vehicle if the detailed statement of charges is not provided by the end of the business day.
6. Allows a towing company to require a release of liability for removal of personal items and prohibits the towing company from charging for removal of personal property during regular business hours.
7. Excludes vehicle parts, equipment or accessories from personal property permitted for release to the vehicle owner.
8. Requires a towing company to tow a vehicle from an accident to the closest storage lot with sufficient capacity unless directed otherwise by the owner or the police officer for criminal action or for future criminal investigation.
9. Stipulates that a storage day, for towing billing practices, is from midnight of one day to midnight of the next day.
10. Requires a towing company to allow, for payment purposes, an owner or insurance company to pay with cash, credit card, debit card, insurance company-issued check or money order.
11. Requires a towing company's storage lot to be open or available for appointment Monday through Friday from 9:00 A.M. to 5:00 P.M., excluding holidays.
12. Requires all towing and storage fees to be authorized by the jurisdiction governing tow and storage through a contract.
13. Prohibits accrual of towing storage fees and charges for any day the storage lot is not open or available by appointment during statutorily required operating hours to obtain a detailed statement of charges.
14. Classifies an act in violation of towing statute by an employee or contractor of a towing company within the scope of job duties for tows that result from a motor vehicle accident as unlawful practice by the towing company and subject to an investigation and action by the Attorney General and any other applicable criminal or civil penalties.
15. Stipulates that a lien does not exist in favor of a towing company or storage lot for unpaid fees or incurred charges for tows that result from a motor vehicle accident but the absence of a lien does not affect the transfer process for unclaimed vehicle ownership or requirement that the vehicle owner pay incurred costs before release of the vehicle.
16. Stipulates that all provisions of a contract between a towing company and a jurisdiction apply to towing and storage transactions, unless otherwise provided by statute.
17. Requires, effective January 1, 2019, a person to use a standard Arizona Department of Transportation (ADOT) form when requesting release of a towed vehicle or release or property from a towed vehicle and allows the form to be submitted through email or other electronic means.
18. Requires ADOT to develop a vehicle release form and a release of liability for personal items form by December 31, 2018, and allows ADOT to revise the forms thereafter.
19. Defines terms.
20. Becomes effective on the general effective date, with a delayed effective date as noted.
Amendments Adopted by Committee
1. Removes the authority of an insurance company to direct where a towing company can tow a motor vehicle after an accident.
2. Specifies that an officer may direct a towing company where to tow the motor vehicle only for purposes of criminal action or future criminal investigation.
3. Specifies that the exclusion of fee accruals for any day a company is not open or available for appointment applies only during statutorily required operating hours.
4. Specifies that financial requirements do not affect current statutory requirements of unclaimed vehicle ownership or release of vehicle after payment of accrued fees.
House Action Senate Action
TI 2/7/18 DPA 7-0-0-1 TRANSIT 3/6/18 DPA 6-1-0
3rd Read 2/22/18 55-1-4
Prepared by Senate Research
March 6, 2018
KN/CU/lb