ARIZONA STATE SENATE
Phoenix, Arizona
trespassing vehicles;
relocation
Requires the Arizona
Department of Transportation (ADOT) to regulate licensing, practices and rates
of vehicle relocators. Establishes a
vehicle relocator fund consisting of licensing, towing and sign inspection fees
and appropriates $310,000 IN FY 2001-2002 and $187,000 in FY 2002-2003 from the
state highway fund (SHF) in FY 2001-2002 to ADOT for the start-up and operating
costs associated with the regulation, and requires that these monies be paid
back to the SHF at a rate of ten percent or by July 1, 2003.
Currently, cities, towns and counties in unincorporated areas have the authority to regulate private towing carriers operating within their boundaries. The regulation authority includes setting rates for towing, transporting or impounding motor vehicles, signage requirements regarding parking restrictions, maximum cost to the violator including storage fees, and the telephone number and address where the vehicle is stored. The rates and restriction vary widely among the cities and towns, however, some counties and cities have not used the authority to regulate the maximum rate or charge for towing or impounding a vehicle. Therefore, each towing company establishes towing and impounding rates specific to each company.
This
legislation is modeled after the Illinois Commercial Relocation of Trespassing
Vehicles law that is regulated by the Commerce Commission. S.B. 1539 requires ADOT to set rates,
establish regulation, collect fees and administer the vehicle relocator
fund. This legislation appropriates
$310,000 in FY 2001-2002 and $187,000 in FY 2002-2003 from the SHF to ADOT for
start-up and operating costs associated with the regulation. Proponents of the bill expect fees
collected for licensing, towing and
sign inspections to sufficiently support the regulation requirements.
1. Requires ADOT, beginning April 1, 2002, to:
§ License and regulate towers
and establish reasonable service and related practice requirements and adopt
rules to enforce the regulation including investigations, hearings and
proceedings.
§ Require the vehicle
relocator to maintain and preserve uniform systems of accounts and records.
§ Require drivers and other
personnel conducting commercial relocation to be employees or contractors of a
licensed relocator and regulate equipment leasing of the vehicle relocator.
§ Set reasonable rates for
removal of vehicles from private property, storage for a period of more than 24
hours and other services provided by vehicle relocators.
§ Establish fitness standards
for vehicle relocator licensing purposes.
2. Requires every vehicle relocator to print, and keep open to the public, all authorized rates and charges for towing, moving and storing vehicles in connection with removal of vehicles from private property.
3. Allows ADOT to establish and adjust licensing, towing and sign inspection fees.
4. Authorizes ADOT to investigate a vehicle relocator, operator or dispatcher regarding compliance of regulations.
5. Prohibits vehicle relocators from operating without a valid and current vehicle relocator license or operating a vehicle used for vehicle relocation that bears the name of a company other than the entity that owns or leases the vehicle.
6. Requires tow vehicles to carry a certified copy of the effective vehicle relocator license and affix an insignia on both sides of the vehicle that includes the company name, address and telephone number.
7. Requires a vehicle relocator that advertises in print to include the license number in the advertisement.
8. Prohibits a vehicle relocator from removing any vehicle from private property without written authorization of the property owner, a person in legal possession of the property, an authorized agent of the property owner or law enforcement. Allows the authorization to include a contract covering a period of time or limit to a specific removal.
9. Requires a vehicle relocator to allow the owner or operator of the vehicle to remove the vehicle if the person arrives before the vehicle has been removed and prohibits the vehicle relocator from charging this person a fee.
10. Prohibits a vehicle relocator from removing any vehicle from property where appropriate signs are not posted.
11. Requires a vehicle relocator to notify law enforcement in the jurisdiction of the removal before removal of the vehicle. Specifies notice requirements.
12. Requires a vehicle relocator to charge fees set by ADOT for services and storage and prohibits the relocator from charging for storage for the first 24 hours after removal.
13. Requires a vehicle relocator to post the name, address and telephone number of the nearest ADOT office for purposes of information, inquiries or complaints in the vehicle relocator's office.
14. Limits the number of miles that a vehicle can be towed.
15. Requires a vehicle relocator to provide the police department of any municipality where a relocator operates a telephone number at which a relocator can be contacted for the purpose of releasing a vehicle.
16. Specifies requirements regarding access to the vehicle relocator for release of a vehicle.
17. Prohibits removal of a vehicle by the property owner or a vehicle relocator unless written notice is provided. Specifies signage requirements.
18. Prohibits storage of towed vehicles on any property that is not properly zoned for that use.
19. Requires every vehicle relocator to have in effect an insurance policy for its liability for injury to any person. Specifies insurance requirements for vehicle relocators.
20. Entitles a person aggrieved by order of ADOT to judicial review.
21. Stipulates that unauthorized vehicles removed and stored by a vehicle relocator are subject to a possessory lien for services and storage.
22. Limits the lien amount to the rate established by ADOT.
23. Prohibits increase or alteration of the lien to reflect charges for services and materials that are not authorized by ADOT.
24. Preempts local ordinances regarding commercial relocation of trespassing vehicles that conflicts with state regulations.
25. Exempts vehicle relocators operating under the direction of law enforcement from the regulations established by this chapter.
26. Repeals the authority of a municipality or county to set rates and restrictions for private towing carriers on April 1, 2002.
27. Appropriates $310,000 in FY 2001-2002 and $187,000 in FY 2002-2003 from the SHF to ADOT for the start-up and operating costs associated with vehicle relocator regulation.
28. Requires ADOT to deposit ten percent collected by the vehicle relocator fund into the SHF for repayment of the appropriation.
29. Requires the appropriation to be repaid by July 1, 2003 unless the amount remaining in the vehicle relocator fund is less than the amount owed. Establishes a repayment schedule.
30. Establishes a vehicle relocator fund to be administered by ADOT consisting of licensing, towing and sign inspection fees including legislative appropriations.
31. Requires an applicant for a vehicle relocator to apply in writing to ADOT for a license on a form and containing information required by rule accompanied by prescribed fees and proof of security.
32. Requires ADOT to set a time and place for a public hearing.
33. Requires ADOT to notify, by mail ten days prior to the hearing, the applicant, all counties and municipalities where the vehicle relocator intends to do business and all parties of record to the proceeding, of the time and place of the hearing.
34. Requires the applicant to publish notice of licensure in a newspaper of general circulation in the county of operation at least ten days prior to the hearing. Authorizes ADOT to require further notice.
35. Requires ADOT to issue or renew a vehicle relocator license for two years to any qualified applicant that meets all of the requirements.
36. Allows ADOT to extend a license temporarily until a renewal application is approved or denied.
37. Requires the applicant to apply for renewal between 45 and 90 days prior to expiration of current license.
Miscellaneous
38. Contains definitions.
39. Makes conforming changes.
40. Provides for a general effective date unless otherwise specified.
Amendments
Adopted by Appropriations Committee
1. Appropriates $310,000 in FY 2001-2002 and $187,000 in FY 2002-2003 from the SHF to ADOT for start up costs and requires these monies to be paid back to the SHF at a rate of ten percent or by July 1, 2003.
2. Removes the bonding requirements for vehicle relocation.
3. Requires the vehicle relocator to notify law enforcement of the tow before removal of the vehicle.
4. Conforms signage requirements to the current requirements in statute.
5. Removes the credit card cancellation prohibition.
6. Eliminates the fee waiver regarding the ability to reach the vehicle relocator by telephone.
Senate Action
TRANS 3/1/01 DP 4-3-1
APPROP 3/9/01 DPA 11-0-1
Prepared by Senate Staff
March 12, 2001