ARIZONA STATE SENATE

HAYDEN DARST

LEGISLATIVE RESEARCH INTERN

JASON THEODOROU

LEGISLATIVE RESEARCH ANALYST

REGULATORY AFFAIRS & GOVERNMENT EFFICIENCY COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

REGULATORY AFFAIRS & GOVERNMENT EFFICIENCY COMMITTEE

DATE:            February 8, 2026

SUBJECT:      Strike everything amendment to S.B. 1366, relating to towing and impound practices

Purpose

Establishes the Public Property Towing and Impound Practices Study Committee (Study Committee).

Background

Towing and impound practices in Arizona are governed by numerous statutes including: 1) government-authorized towing of vehicles; 2) towing from private property; 3) release of impounded vehicles; 4) impound and administrative fees; 3) proper towing equipment; and 4) towing safety (A.R.S. § 9-499.05; A.R.S. Title 28 and Title 41).

Currently, the Director of the Department of Public Safety (DPS) or a county, city or town may contract with a towing firm or firms for towing or storage services, or both. At the time of application for a contractual agreement, a towing firm must disclose in writing the owners of the towing firm and, if the owners own other towing firms that are also applying for the same contractual agreement, the names of those towing firms. A towing firm is limited to one contractual agreement per geographic towing area with DPS or a county, city or town for towing or storage services, or both (A.R.S. § 41-1830.51).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Establishes the Study Committee, consisting of the following members;

a) two members of the Senate who are appointed by the President of the Senate, one of which is designated to serve as Co-Chair;

b) two members of the House of Representatives who are appointed by the Speaker of the House of Representatives, one of which is designated to serve as Co-Chair;

c) one member who represents the public property towing industry who is appointed by the Governor;

d) one member who represents a local public safety agency who is appointed by the Governor; and

e) one member who represents DPS who is appointed by the Governor.

2. States that Study Committee members are not eligible to receive compensation but are eligible for reimbursement of expenses in accordance with statute.

3. Requires the Study Committee to:

a) review current fees, rates, fines and administrative charges for DPS initiated accident, arrest, breakdown, disabled and abandoned vehicle tows;

b) examine the qualifications and operational standards for public property towing companies to be considered qualified for government-authorized towing of vehicles;

c) evaluate minimum insurance requirements and background check standards for towing company owners and operators; and

d) review the impact of Arizona laws, rules and DPS relating to public property towing.

4. Allows the Study Committee to:

a) request information and data from state and local agencies regarding towing contracts and impound statistics; and

b) hold public hearings to receive testimony from industry experts, law enforcement agencies and the public.

5. Requires the Study Committee, by December 31, 2026, to submit a report of its findings and recommendations for administrative or legislative action to:

a) the Governor;

b) the President of the Senate;

c) the Speaker of the House of Representatives; and

d) the Secretary of State.

6. Repeals the Study Committee on October 1, 2027.

7. Becomes effective on the general effective date.