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Second Substitute H.B. 115

Representative Keven J. Stratton proposes the following substitute bill:


             1     
TOWING AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Keven J. Stratton

             5     
Senate Sponsor: Aaron Osmond

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Traffic Code and the Motor Carrier Safety Act by amending
             10      provisions relating to towing.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides that a tow truck operator, a tow truck motor carrier, and an impound yard
             14      shall accept payment by cash and debit or credit card;
             15          .    requires a tow truck motor carrier or impound yard to clearly and conspicuously
             16      post and disclose acceptable forms of payment;
             17          .    removes the signage exception for parking in a location that is prohibited by a
             18      declaration of the conditions, covenants, and restrictions or by a contract;
             19          .    provides that a county or municipality may enact and enforce any ordinance,
             20      regulation, or rule pertaining to a tow truck operator or a tow truck motor carrier
             21      that does not conflict with the provisions of Title 72, Chapter 9, Part 6, Motor
             22      Carrier Safety Act;
             23          .    provides that a vehicle immobilizer may not charge a fee for the removal of a
             24      vehicle immobilization device or any service rendered, performed, or supplied in
             25      connection with the removal of the immobilization device in addition to the fees


             26      specified in the Traffic Code;
             27          .    provides that a vehicle immobilizer shall accept payment by cash and debit or credit
             28      card;
             29          .    requires the Department to Transportation to make rules establishing a Utah
             30      Consumer Bill of Rights Regarding Towing form;
             31          .    requires the department to report and make recommendations to the Transportation
             32      Interim Committee;
             33          .    requires a tow truck operator or a tow truck motor carrier to, upon initial contact
             34      with the owner whose vehicle, vessel, or outboard motor was removed, provide the
             35      owner with a copy of the Utah Consumer Bill of Rights Regarding Towing; and
             36          .    makes technical corrections.
             37      Money Appropriated in this Bill:
             38          None
             39      Other Special Clauses:
             40          None
             41      Utah Code Sections Affected:
             42      AMENDS:
             43          41-6a-1406, as last amended by Laws of Utah 2012, Chapter 226
             44          41-6a-1409, as last amended by Laws of Utah 2010, Chapter 91
             45          72-9-603, as last amended by Laws of Utah 2011, Chapter 363
             46          72-9-604, as renumbered and amended by Laws of Utah 1998, Chapter 270
             47     
             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 41-6a-1406 is amended to read:
             50           41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
             51      requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
             52          (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
             53      Section 41-1a-1101 , 41-6a-527 , 41-6a-1405 , 41-6a-1408 , or 73-18-20.1 by an order of a peace
             54      officer or by an order of a person acting on behalf of a law enforcement agency or highway
             55      authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
             56      expense of the owner.


             57          (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or
             58      impounded to:
             59          (a) a state impound yard; or
             60          (b) if none, a garage, docking area, or other place of safety.
             61          (3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
             62      removed by a tow truck motor carrier that meets standards established:
             63          (a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
             64          (b) by the department under Subsection (10).
             65          (4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
             66      of the removal shall be sent to the Motor Vehicle Division by:
             67          (i) the peace officer or agency by whom the peace officer is employed; and
             68          (ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
             69      operator is employed.
             70          (b) The report shall be in a form specified by the Motor Vehicle Division and shall
             71      include:
             72          (i) the operator's name, if known;
             73          (ii) a description of the vehicle, vessel, or outboard motor;
             74          (iii) the vehicle identification number or vessel or outboard motor identification
             75      number;
             76          (iv) the license number or other identification number issued by a state agency;
             77          (v) the date, time, and place of impoundment;
             78          (vi) the reason for removal or impoundment;
             79          (vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
             80      outboard motor; and
             81          (viii) the place where the vehicle, vessel, or outboard motor is stored.
             82          (c) Until the tow truck operator or tow truck motor carrier reports the removal as
             83      required under this Subsection (4), a tow truck motor carrier or impound yard may not:
             84          (i) collect any fee associated with the removal; and
             85          (ii) begin charging storage fees.
             86          (5) (a) Except as provided in Subsection (5)(e) and upon receipt of the report, the
             87      Motor Vehicle Division shall give notice to the registered owner of the vehicle, vessel, or


             88      outboard motor and any lien holder in the manner prescribed by Section 41-1a-114 .
             89          (b) The notice shall:
             90          (i) state the date, time, and place of removal, the name, if applicable, of the person
             91      operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
             92      and the place where the vehicle, vessel, or outboard motor is stored;
             93          (ii) state that the registered owner is responsible for payment of towing, impound, and
             94      storage fees charged against the vehicle, vessel, or outboard motor;
             95          (iii) inform the registered owner of the vehicle, vessel, or outboard motor of the
             96      conditions that must be satisfied before the vehicle, vessel, or outboard motor is released; and
             97          (iv) inform the registered owner and lienholder of the division's intent to sell the
             98      vehicle, vessel, or outboard motor, if within 30 days from the date of the removal or
             99      impoundment under this section, the owner, lien holder, or the owner's agent fails to make a
             100      claim for release of the vehicle, vessel, or outboard motor.
             101          (c) Except as provided in Subsection (5)(e) and if the vehicle, vessel, or outboard
             102      motor is not registered in this state, the Motor Vehicle Division shall make a reasonable effort
             103      to notify the registered owner and any lien holder of the removal and the place where the
             104      vehicle, vessel, or outboard motor is stored.
             105          (d) The Motor Vehicle Division shall forward a copy of the notice to the place where
             106      the vehicle, vessel, or outboard motor is stored.
             107          (e) The Motor Vehicle Division is not required to give notice under this Subsection (5)
             108      if a report was received by a tow truck operator or tow truck motor carrier reporting a tow truck
             109      service in accordance with Subsection 72-9-603 (1)(a)(i).
             110          (6) (a) The vehicle, vessel, or outboard motor shall be released after the registered
             111      owner, lien holder, or the owner's agent:
             112          (i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
             113      the State Tax Commission;
             114          (ii) presents identification sufficient to prove ownership of the impounded vehicle,
             115      vessel, or outboard motor;
             116          (iii) completes the registration, if needed, and pays the appropriate fees;
             117          (iv) if the impoundment was made under Section 41-6a-527 , pays an administrative
             118      impound fee of $350; and


             119          (v) pays all towing and storage fees to the place where the vehicle, vessel, or outboard
             120      motor is stored.
             121          (b) (i) Twenty-nine dollars of the administrative impound fee assessed under
             122      Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
             123          (ii) $97 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall be
             124      deposited in the Department of Public Safety Restricted Account created in Section 53-3-106 ;
             125          (iii) $20 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
             126      be deposited in the Traumatic Spinal Cord and Brain Injury Rehabilitation Fund; and
             127          (iv) the remainder of the administrative impound fee assessed under Subsection
             128      (6)(a)(iv) shall be deposited in the General Fund.
             129          (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
             130      waived or refunded by the State Tax Commission if the registered owner, lien holder, or
             131      owner's agent presents written evidence to the State Tax Commission that:
             132          (i) the Driver License Division determined that the arrested person's driver license
             133      should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
             134      or other report from the Driver License Division presented within 30 days of the final
             135      notification from the Driver License Division; or
             136          (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
             137      stolen vehicle report presented within 30 days of the impoundment.
             138          (d) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
             139      payment by cash and debit or credit card for a removal or impoundment under Subsection (1)
             140      or any service rendered, performed, or supplied in connection with a removal or impoundment
             141      under Subsection (1).
             142          (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by the registered
             143      owner or the owner's agent within the time prescribed by Section 41-1a-1103 shall be sold in
             144      accordance with that section and the proceeds, if any, shall be disposed of as provided under
             145      Section 41-1a-1104 .
             146          (b) The date of impoundment is considered the date of seizure for computing the time
             147      period provided under Section 41-1a-1103 .
             148          (8) The registered owner who pays all fees and charges incurred in the impoundment of
             149      the owner's vehicle, vessel, or outboard motor, has a cause of action for all the fees and


             150      charges, together with damages, court costs, and attorney fees, against the operator of the
             151      vehicle, vessel, or outboard motor whose actions caused the removal or impoundment.
             152          (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
             153      or outboard motor.
             154          (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             155      the department shall make rules setting the performance standards for towing companies to be
             156      used by the department.
             157          (11) (a) The Motor Vehicle Division may specify that a report required under
             158      Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
             159      retrieval of the information.
             160          (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
             161      administrator of the database may adopt a schedule of fees assessed for utilizing the database.
             162          (ii) The fees under this Subsection (11)(b) shall:
             163          (A) be reasonable and fair; and
             164          (B) reflect the cost of administering the database.
             165          Section 2. Section 41-6a-1409 is amended to read:
             166           41-6a-1409. Vehicle immobilization devices -- Definitions -- Notice requirements
             167      -- Maximum removal fee.
             168          (1) As used in this section:
             169          (a) "Immobilize" means to affix and lock a vehicle immobilization device to the
             170      exterior of a motor vehicle.
             171          (b) "Vehicle immobilization device" means a device that may be affixed and locked to
             172      the exterior of a motor vehicle for the purpose of prohibiting the movement or removal of the
             173      vehicle from its location.
             174          (c) "Vehicle immobilizer" means a person who or entity that uses or causes to be used
             175      a vehicle immobilization device for the purpose of enforcing parking restrictions with prior
             176      authorization from the owner or person in lawful possession or control of the real property.
             177          (2) (a) A vehicle immobilizer may not immobilize a vehicle without the motor vehicle
             178      owner's knowledge at either of the following locations without signage that meets the
             179      requirements of Subsection (2)(b):
             180          (i) a mobile home park as defined in Section 57-16-3 ; or


             181          (ii) a multifamily dwelling of more than eight units.
             182          (b) Signage under Subsection (2)(a) shall display:
             183          (i) where parking is subject to being immobilized; and
             184          (ii) one of the following:
             185          (A) the name and phone number of the vehicle immobilizer that immobilizes a vehicle
             186      for the locations listed under Subsection (2)(a)(i); or
             187          (B) the name of the mobile home park or multifamily dwelling and the phone number
             188      of the mobile home park or multifamily dwelling manager or management office that
             189      authorized the vehicle immobilizer to immobilize the motor vehicle.
             190          (c) Signage is not required under Subsection (2)(b) for parking in a location:
             191          (i) that is prohibited by law; or
             192          (ii) if it is reasonably apparent that the location is not open to parking.
             193          (d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
             194      in Section 57-16-3 or a multifamily dwelling from instituting and enforcing regulations on
             195      parking.
             196          (3) (a) Upon immobilizing a vehicle, the vehicle immobilizer shall affix a notice to the
             197      immobilized vehicle in a conspicuous place so as to be plainly visible to a person seeking to
             198      operate the vehicle.
             199          (b) The notice under Subsection (3)(a) shall include:
             200          (i) the name and phone number of the vehicle immobilizer;
             201          (ii) a phone number that the owner of the vehicle may call to arrange for release of the
             202      vehicle; and
             203          (iii) applicable fees.
             204          (4) (a) The maximum fee that a vehicle immobilizer may charge to remove a vehicle
             205      immobilization device may not exceed:
             206          (i) $75 for the first 24-hour period a vehicle is immobilized; plus
             207          (ii) $25 for each additional 24-hour period a vehicle is immobilized.
             208          (b) Notwithstanding Subsection (4)(a), the maximum fee that a vehicle immobilizer
             209      may charge to remove a vehicle immobilization device may not exceed $150 for each instance.
             210          (c) A vehicle immobilizer may not charge a fee for the removal of a vehicle
             211      immobilization device or any service rendered, performed, or supplied in connection with the


             212      removal of the immobilization device in addition to the fees specified under this Subsection
             213      (4).
             214          (d) A vehicle immobilizer shall accept payment by cash and debit or credit card for the
             215      removal of a vehicle immobilization device or any service rendered, performed, or supplied in
             216      connection with the removal of the immobilization device.
             217          (5) A county or municipal legislative or governing body may not enact or enforce any
             218      ordinance, regulation, rule, or fee pertaining to a vehicle immobilization device that conflicts
             219      with this part.
             220          Section 3. Section 72-9-603 is amended to read:
             221           72-9-603. Towing notice requirements -- Cost responsibilities -- Abandoned
             222      vehicle title restrictions -- Rules for maximum rates and certification.
             223          (1) Except for a tow truck service that was ordered by a peace officer, or a person
             224      acting on behalf of a law enforcement agency, or a highway authority, [as defined in Section
             225      72-1-102 ,] after performing a tow truck service that is being done without the vehicle, vessel,
             226      or outboard motor owner's knowledge, the tow truck operator or the tow truck motor carrier
             227      shall:
             228          (a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
             229      or outboard motor:
             230          (i) send a report of the removal to the Motor Vehicle Division that complies with the
             231      requirements of Subsection 41-6a-1406 (4)(b); and
             232          (ii) contact the law enforcement agency having jurisdiction over the area where the
             233      vehicle, vessel, or outboard motor was picked up and notify the agency of the:
             234          (A) location of the vehicle, vessel, or outboard motor;
             235          (B) date, time, and location from which the vehicle, vessel, or outboard motor was
             236      removed;
             237          (C) reasons for the removal of the vehicle, vessel, or outboard motor;
             238          (D) person who requested the removal of the vehicle, vessel, or outboard motor; and
             239          (E) vehicle, vessel, or outboard motor's description, including its identification number
             240      and license number or other identification number issued by a state agency; [and]
             241          (b) within two business days of performing the tow truck service under Subsection
             242      (1)(a), send a certified letter to the last-known address of the registered owner and lien holder


             243      of the vehicle, vessel, or outboard motor obtained from the Motor Vehicle Division or if the
             244      person has actual knowledge of the owner's address to the current address, notifying the owner
             245      of the:
             246          (i) location of the vehicle, vessel, or outboard motor;
             247          (ii) date, time, location from which the vehicle, vessel, or outboard motor was
             248      removed;
             249          (iii) reasons for the removal of the vehicle, vessel, or outboard motor;
             250          (iv) person who requested the removal of the vehicle, vessel, or outboard motor;
             251          (v) a description, including its identification number and license number or other
             252      identification number issued by a state agency; and
             253          (vi) costs and procedures to retrieve the vehicle, vessel, or outboard motor[.]; and
             254          (c) upon initial contact with the owner whose vehicle, vessel, or outboard motor was
             255      removed, provide the owner with a copy of the Utah Consumer Bill of Rights Regarding
             256      Towing established by the department in Subsection (7)(e).
             257          (2) (a) Until the tow truck operator or tow truck motor carrier reports the removal as
             258      required under Subsection (1)(a), a tow truck operator, tow truck motor carrier, or impound
             259      yard may not:
             260          (i) collect any fee associated with the removal; or
             261          (ii) begin charging storage fees.
             262          (b) (i) Except as provided in Subsection (2)(c), a tow truck operator or tow truck motor
             263      carrier may not perform a tow truck service without the vehicle, vessel, or outboard motor
             264      owner's or a lien holder's knowledge at either of the following locations without signage that
             265      meets the requirements of Subsection (2)(b)(ii):
             266          (A) a mobile home park as defined in Section 57-16-3 ; or
             267          (B) a multifamily dwelling of more than eight units.
             268          (ii) Signage under Subsection (2)(b)(i) shall display:
             269          (A) where parking is subject to towing; and
             270          (B) (I) the Internet website address that provides access to towing database information
             271      in accordance with Section 41-6a-1406 ; or
             272          (II) one of the following:
             273          (Aa) the name and phone number of the tow truck operator or tow truck motor carrier


             274      that performs a tow truck service for the locations listed under Subsection (2)(b)(i); or
             275          (Bb) the name of the mobile home park or multifamily dwelling and the phone number
             276      of the mobile home park or multifamily dwelling manager or management office that
             277      authorized the vehicle, vessel, or outboard motor to be towed.
             278          (c) Signage is not required under Subsection (2)(b) for parking in a location:
             279          (i) that is prohibited by law; or
             280          [(ii) that is prohibited by a declaration of the conditions, covenants, and restrictions or
             281      by a contract; or]
             282          [(iii)] (ii) if it is reasonably apparent that the location is not open to parking.
             283          (d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
             284      in Section 57-16-3 or a multifamily dwelling from instituting and enforcing regulations on
             285      parking.
             286          (3) The owner of a vehicle, vessel, or outboard motor lawfully removed is only
             287      responsible for paying:
             288          (a) the tow truck service and storage fees set in accordance with Subsection (7); and
             289          (b) the administrative impound fee set in Section 41-6a-1406 , if applicable.
             290          (4) The fees under Subsection (3) are a possessory lien on the vehicle, non-life
             291      essential items that are owned by the owner of the vehicle and securely stored by the tow truck
             292      operator, vessel, or outboard motor until paid.
             293          (5) A person may not request a transfer of title to an abandoned vehicle until at least 30
             294      days after notice has been sent under Subsection (1)(b).
             295          (6) (a) A tow truck motor carrier or impound yard shall clearly and conspicuously post
             296      and disclose all its current fees [and], rates, and acceptable forms of payment for tow truck
             297      service and storage of a vehicle in accordance with rules established under Subsection (7).
             298          (b) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
             299      payment by cash and debit or credit card for a tow truck service under Subsection (1) or any
             300      service rendered, performed, or supplied in connection with a tow truck service under
             301      Subsection (1).
             302          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             303      Department of Transportation shall:
             304          (a) set maximum rates that:


             305          (i) a tow truck motor [carriers] carrier may charge for the tow truck service of a
             306      vehicle, vessel, or outboard motor that are transported in response to:
             307          (A) a peace officer dispatch call;
             308          (B) a motor vehicle division call; and
             309          (C) any other call or request where the owner of the vehicle, vessel, or outboard motor
             310      has not consented to the removal; and
             311          (ii) an impound [yards] yard may charge for the storage of a vehicle, vessel, or
             312      outboard motor stored as a result of one of the conditions listed under Subsection (7)(a)(i);
             313          (b) establish authorized towing certification requirements, not in conflict with federal
             314      law, related to incident safety, clean-up, and hazardous material handling;
             315          (c) specify the form and content of the posting and disclosure of fees and rates charged
             316      and acceptable forms of payment by a tow truck motor carrier or impound yard; [and]
             317          (d) set a maximum rate for an administrative fee that a tow truck motor carrier may
             318      charge for reporting the removal as required under Subsection (1)(a)(i) and providing notice of
             319      the removal to the registered owner and lienholder of the vehicle, vessel, or outboard motor as
             320      required in Subsection (1)(b)[.]; and
             321          (e) establish a Utah Consumer Bill of Rights Regarding Towing form that contains
             322      specific information regarding:
             323          (i) a vehicle owner's rights and responsibilities if the owner's vehicle is towed;
             324          (ii) identifies the maximum rates that a tow truck motor carrier may charge for the tow
             325      truck service of a vehicle, vessel, or outboard motor that is transported in response to a call or
             326      request where the owner of the vehicle, vessel, or outboard motor has not consented to the
             327      removal; and
             328          (iii) identifies the maximum rates that an impound yard may charge for the storage of
             329      vehicle, vessel, or outboard motor that is transported in response to a call or request where the
             330      owner of the vehicle, vessel, or outboard motor has not consented to the removal.
             331          (8) By August 31, 2013, the department shall report and make recommendations to the
             332      Transportation Interim Committee regarding:
             333          (a) the methods the department uses to set maximum rates of fees established by the
             334      department under Subsection (7);
             335          (b) the methods used by other entities to set maximum rates of fees equivalent to the


             336      fees established by the department under Subsection (7); and
             337          (c) administering state laws and rules pertaining to towing including the procedures for
             338      tow truck motor carrier violations.
             339          Section 4. Section 72-9-604 is amended to read:
             340           72-9-604. Regulatory powers of local authorities -- Tow trucks.
             341          (1) A county or municipal legislative or governing body may [not] enact or enforce any
             342      ordinance, regulation, or rule[, or fee] pertaining to a tow truck or tow truck motor carrier that
             343      [conflicts] does not conflict with this part.
             344          (2) A tow truck motor carrier that has a county or municipal business license for a
             345      place of business located within that county or municipality may not be required to obtain
             346      another business license in order to perform a tow truck service in another county or
             347      municipality if there is not a business location in the other county or municipality.
             348          (3) A county or municipal legislative body may require an annual tow truck safety
             349      inspection in addition to the inspections required under Sections 53-8-205 and 72-9-602 if:
             350          (a) no fee is charged for the inspection; and
             351          (b) the inspection complies with federal motor carrier safety regulations.
             352          (4) A tow truck shall be subject to only one annual safety inspection under Subsection
             353      (3). A county or municipality that requires the additional annual safety inspection shall accept
             354      the same inspection performed by another county or municipality.


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