trespassing vehicles;
relocation
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Committee on Transportation |
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Committee on Appropriations |
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Caucus and COW |
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Third Read |
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As Passed the House |
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House Bill 2476 requires the Arizona Department of Transportation Motor Vehicle Division (MVD) to license and regulate vehicle relocators who are in the business of removing trespassing vehicles at the request of the property owner. In addition, HB 2476 establishes licensing requirements, business regulations and provisions for levying civil penalties against vehicle relocaters.
Currently, a vehicle may be towed by mutual agreement between the vehicle owner and the tower, by order of a law enforcement officer if the vehicle is stolen, abandoned or in a condition that poses a hazard to other motorists, or by agreement between a private property owner and a tower if the vehicle is considered a “trespassing” vehicle and is parked on private property without authorization from the property owner.
Towers presently performing vehicle relocation services in Arizona may be regulated by the local jurisdictions in which they operate. Cities, towns and counties have the authority to regulate the maximum rate and charge for towing, transporting or impounding a motor vehicle from private property without the permission of the owner or operator of the vehicle by any private towing carriers doing business within its boundaries. A private towing carrier is subject to the maximum rate and charge regulation prescribed by the city or town for all such towing, transporting or impounding services if the vehicle being towed or transported is towed from private property located within the boundaries of the city or town. This authority also includes regulation of signage pertaining to parking restrictions, including telephone numbers and addresses where vehicles are stored. Consequently, rates may vary between jurisdictions, and if a jurisdiction has not established towing and storage rates, the towing company may set the rates at the level they choose
Under the current system, the vehicle owner is under no requirement of law to pay for the costs of towing and storage when claiming the vehicle. If the vehicle owner chooses not to pay, the tower must release the vehicle and attempt to recover costs at a later date through other means.
MVD Duties
§
Regulate vehicle relocators and their employees and establish
reasonable requirements with respect to services and practices
§
Require vehicle relocaters to maintain and preserve a uniform system of accounts and records
§
Adoption of rules necessary to carry out department
duties.
§
Setting reasonable rates for towing of vehicles not to
exceed $50.00, and storage rates not to exceed $5.00 per day for periods of
more than 24 hours.
§
Vehicle relocator license issuance.
§
Establish and adjust fees in regarding other vehicle
relocator activities.
Vehicle Relocator Business Requirements
§ A vehicle relocator must have an established place of business and license to operate. The license must be posted in the relocator’s place of business, in each branch office, and copies must be carried in the power unit.
§ Vehicle relocators must maintain records containing information regarding each vehicle removed by the relocator. Records must be kept for a period of three years and are subject to inspection by the Department, or any law enforcement agency during regular business hours. If the relocator refuses to display the records, the penalty is a class one misdemeanor.
§ A licensed vehicle relocator shall display license in place of business and may not transfer or sell license to another party. The Director may issue licenses for a twelve-month to eighteen-month period.
§ Every vehicle relocator must erect and maintain signs in English and Spanish at each place of business that indicate the business of a vehicle relocator is conducted from the premises. The sign shall be legible from at least 300 feet away.
§ If a vehicle relocator changes the business location or business hours, the relocator must notify the Director ten days in advance of the change, and in the case of a change in location, must receive the Director’s consent.
§ Vehicle relocators must clearly post in both English and Spanish the dollar amounts of the authorized rates for relocating vehicles from private property. The signage shall be posted and contain information as prescribed by the department.
§ The relocator must post signage in English and Spanish of the nearest office where complaints may filed.
§ The relocator must make available in written form the statutes and rules governing vehicle relocators.
Vehicle Relocation Procedures and Prohibitions
§ A vehicle relocator is prohibited from:
1. Operating a vehicle in that is used in vehicle relocator activities without a certified copy of the relocator license.
2. Removing vehicles from private property without first obtaining written authorization in the form of a contract with the property owner.
3. Charging or otherwise collecting from the property owner any fees that are not included in the terms of the contract between the relocator and the property owner.
4. Removing a vehicle when the vehicle owner is present or if the owner arrives at any time before the vehicle is removed from the property. A fee cannot be assessed to the vehicle owner in this case.
5. Towing a vehicle if the property is not properly signed.
6. Removing the vehicle without prior and complete notification to the appropriate law enforcement agency.
7. Imposing any charges for service or storage other than the set by the department.
8. Imposing storage charges for the first twenty-four hours after vehicle removal.
9. Using drivers or other personnel who are not employees of the relocator.
10. Violating a law or administrative rule governing vehicle relocators.
11. Towing or storing a vehicle at any location that is
outside the boundaries of the jurisdiction in which the trespassing vehicle was
removed or that is more than ten miles from the private property from which the
vehicle was removed.
Property Owner
Requirements
§ Property owners are prohibited from removing or contracting with vehicle relocators to remove vehicles from private property unless appropriate signage in English and Spanish are posted containing the following information:
1. Parking restrictions
2. Disposition of vehicles violating parking restrictions
3. Maximum costs to the violator.
4. Telephone number and address of the location to which the vehicle was towed.
§ For residential property that has less than four housing units, express notice is not required based on circumstances and the surrounding area if the parking area is clearly reserved or intended for use by the residents.
§ The Department is authorized to inspect all signs used to comply with vehicle relocation provisions. The inspection may be at the request of the property owner or the vehicle relocator. The Director is required to adopt rules pertaining to sign inspections.
Vehicle Release;
Vehicle Relocator Remedies and Dispute Resolution.
§ The vehicle owner is required to either pay for the towing and storage costs at the time the owner claims the vehicle, or make satisfactory arrangements with the relocator to pay the charges except that the vehicle relocator shall not refuse to release the vehicle if the owner refuses to pay the towing and storage costs.
§ If the vehicle owner disputes the towing and storage costs or any actions of the vehicle relocator the owner may submit a written request for a hearing to the director.
Administrative
Remedies and Sanctions
§ The Director is authorized to conduct hearings regarding the enforcement of any law that pertains to licensed or unlicensed vehicle relocators, take testimony and conduct investigations. All decisions of the Director are subject to judicial review.
§
The Director may also serve a licensed or unlicensed
vehicle relocator with a “cease and desist” order. This order requires the person to cease an activity that the
Director has reasonable cause to believe is unlawful. The person must either comply with the order or request a hearing
within thirty days of receiving the order.
If the person does not comply with the order, the Director may take
action against the relocator. The Director shall present a copy of the cease
and desist order to the director of the Department of Revenue.
§ In addition to all other remedies available, the Director may utilize the superior court to enjoin a licensee from continuing an activity if the Director has reasonable grounds to believe that a relocator is violating a law or rule of this state.
§
Civil penalties may be imposed by MVD against licensed
and unlicensed vehicle relocators following a hearing for violations and
failure to comply with cease and desist orders. The civil penalties range from $1000 to $3000. If person fails to
pay civil penalty the Director shall file an action in the superior court in
which the hearing is held in order to collect the penalty.
Appropriation
and Vehicle Relocator Fund (VRF)
§
Appropriates $497,000 between fiscal years 2002 and
2004 to MVD from the State Highway Fund (SHF) for the purpose of licensing
regulating vehicle relocators.
§ Fees collected for licensing vehicle relocators are to be deposited into the “vehicle relocator fund”(VRF)
§ States that monies in VRF are exempt from lapsing and gives the State Treasurer may invest and divest monies in the fund.
§ Subject to legislative appropriation, the fund is to be used by MVD to administer licensing and regulation of vehicle relocators.
§
Ten percent of the vehicle relocator licensing fees are
to be deposited into the SHF for the purposes of repaying the SHF for the
appropriation to implement this act.
§
States that if the monies are not repaid in full on or
before June 30, 2004 that the Department of Transportation (DOT) shall transfer
from the vehicle relocator fund to the SHF monies necessary to repay in full
the amount appropriated.
§
If monies remaining in the VRF on that date are
insufficient, than the DOT shall continue to deposit ten percent of the monies
collected after June 30, 2004 until the amount is fully paid.
Miscellaneous
Provisions
· Chapter heading of title 28, Chapter 10, A.R.S. is changed to read “Vehicle dealers, Automotive Recyclers, Transporters and vehicle relocators.
§ Defines “dispatcher,” “operator,” and “ vehicle relocator.”
§ Specifies that this act does not affect or change regulations pertaining to orders by a law enforcement officer to tow a vehicle.
§ Establishes an effective date of September 30, 2003.
§ Makes technical and conforming changes.
§ Specifies that this act does not limit or alter the vehicle owner’s civil or criminal liability for trespass or limit or alter the civil or criminal liability of any person or entity for any act or omission and that all penalties under this article are cumulative.
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45th
Legislature
Second
Regular Session 5 February 8, 2002
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