H.B. 314 Enrolled

             1     

VEHICLE IMMOBILIZATION AND IMPOUND AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: R. Curt Webb

             5     
Senate Sponsor: Wayne A. Harper

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to vehicle impounds and vehicle immobilization
             10      devices.
             11      Highlighted Provisions:
             12          This bill:
             13          .    prohibits a vehicle immobilizer from charging a fee for the immobilization of a
             14      vehicle for any period in which the vehicle has been towed and custody of the
             15      vehicle has been transferred to a vehicle impound yard;
             16          .    provides that an impound yard may not charge a fee for the storage of an impounded
             17      vehicle, vessel, or outboard motor if:
             18              .    the vehicle, vessel, or outboard motor is being held as evidence; and
             19              .    the vehicle, vessel, or outboard motor is not being released to the registered
             20      owner, lien holder, or the owner's agent even if the registered owner, lien holder,
             21      or the owner's agent satisfies the requirements to release the vehicle, vessel, or
             22      outboard motor;
             23          .    provides that certain administrative rules made by the Department of Transportation
             24      are subject to the provision prohibiting an impound yard from charging a fee for the
             25      storage of an impounded vehicle, vessel, or outboard motor in certain
             26      circumstances;
             27          .    provides that a county or municipal legislative governing body may not charge a fee
             28      for the storage of an impounded vehicle, vessel, or outboard motor if the county or
             29      municipality:


             30              .    is holding the vehicle, vessel, or outboard motor as evidence; and
             31              .    will not release the vehicle, vessel, or outboard motor to the registered owner,
             32      lien holder, or the owner's agent even if the registered owner, lien holder, or the
             33      owner's agent satisfies the requirements to release the vehicle, vessel, or
             34      outboard motor; and
             35          .    makes technical corrections.
             36      Money Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42           41-6a-1406 , as last amended by Laws of Utah 2013, Chapter 328
             43           41-6a-1409 , as last amended by Laws of Utah 2013, Chapter 328
             44           72-9-603 , as last amended by Laws of Utah 2013, Chapter 328
             45           72-9-604 , as last amended by Laws of Utah 2013, Chapter 328
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 41-6a-1406 is amended to read:
             49           41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
             50      requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
             51          (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
             52      Section 41-1a-1101 , 41-6a-527 , 41-6a-1405 , 41-6a-1408 , or 73-18-20.1 by an order of a peace
             53      officer or by an order of a person acting on behalf of a law enforcement agency or highway
             54      authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
             55      expense of the owner.
             56          (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or
             57      impounded to:


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


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


             114      vessel, or outboard motor;
             115          (iii) completes the registration, if needed, and pays the appropriate fees;
             116          (iv) if the impoundment was made under Section 41-6a-527 , pays an administrative
             117      impound fee of $350; and
             118          (v) pays all towing and storage fees to the place where the vehicle, vessel, or outboard
             119      motor is stored.
             120          (b) (i) Twenty-nine dollars of the administrative impound fee assessed under
             121      Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;
             122          (ii) $97 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall be
             123      deposited in the Department of Public Safety Restricted Account created in Section 53-3-106 ;
             124          (iii) $20 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall
             125      be deposited in the Traumatic Spinal Cord and Brain Injury Rehabilitation Fund; and
             126          (iv) the remainder of the administrative impound fee assessed under Subsection
             127      (6)(a)(iv) shall be deposited in the General Fund.
             128          (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
             129      waived or refunded by the State Tax Commission if the registered owner, lien holder, or
             130      owner's agent presents written evidence to the State Tax Commission that:
             131          (i) the Driver License Division determined that the arrested person's driver license
             132      should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
             133      or other report from the Driver License Division presented within 30 days of the final
             134      notification from the Driver License Division; or
             135          (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
             136      stolen vehicle report presented within 30 days of the impoundment.
             137          (d) A tow truck operator, a tow truck motor carrier, and an impound yard shall accept
             138      payment by cash and debit or credit card for a removal or impoundment under Subsection (1)
             139      or any service rendered, performed, or supplied in connection with a removal or impoundment
             140      under Subsection (1).
             141          (e) The owner of an impounded vehicle may not be charged a fee for the storage of the


             142      impounded vehicle, vessel, or outboard motor if:
             143          (i) the vehicle, vessel, or outboard motor is being held as evidence; and
             144          (ii) the vehicle, vessel, or outboard motor is not being released to the registered owner,
             145      lien holder, or the owner's agent even if the registered owner, lien holder, or the owner's agent
             146      satisfies the requirements to release the vehicle, vessel, or outboard motor under this
             147      Subsection (6).
             148          (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by the registered
             149      owner or the owner's agent within the time prescribed by Section 41-1a-1103 shall be sold in
             150      accordance with that section and the proceeds, if any, shall be disposed of as provided under
             151      Section 41-1a-1104 .
             152          (b) The date of impoundment is considered the date of seizure for computing the time
             153      period provided under Section 41-1a-1103 .
             154          (8) The registered owner who pays all fees and charges incurred in the impoundment of
             155      the owner's vehicle, vessel, or outboard motor, has a cause of action for all the fees and
             156      charges, together with damages, court costs, and attorney fees, against the operator of the
             157      vehicle, vessel, or outboard motor whose actions caused the removal or impoundment.
             158          (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
             159      or outboard motor.
             160          (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             161      the department shall make rules setting the performance standards for towing companies to be
             162      used by the department.
             163          (11) (a) The Motor Vehicle Division may specify that a report required under
             164      Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and
             165      retrieval of the information.
             166          (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
             167      administrator of the database may adopt a schedule of fees assessed for utilizing the database.
             168          (ii) The fees under this Subsection (11)(b) shall:
             169          (A) be reasonable and fair; and


             170          (B) reflect the cost of administering the database.
             171          Section 2. Section 41-6a-1409 is amended to read:
             172           41-6a-1409. Vehicle immobilization devices -- Definitions -- Notice requirements
             173      -- Maximum removal fee.
             174          (1) As used in this section:
             175          (a) "Immobilize" means to affix and lock a vehicle immobilization device to the
             176      exterior of a motor vehicle.
             177          (b) "Vehicle immobilization device" means a device that may be affixed and locked to
             178      the exterior of a motor vehicle for the purpose of prohibiting the movement or removal of the
             179      vehicle from its location.
             180          (c) "Vehicle immobilizer" means a person who or entity that uses or causes to be used
             181      a vehicle immobilization device for the purpose of enforcing parking restrictions with prior
             182      authorization from the owner or person in lawful possession or control of the real property.
             183          (2) (a) A vehicle immobilizer may not immobilize a vehicle without the motor vehicle
             184      owner's knowledge at either of the following locations without signage that meets the
             185      requirements of Subsection (2)(b):
             186          (i) a mobile home park as defined in Section 57-16-3 ; or
             187          (ii) a multifamily dwelling of more than eight units.
             188          (b) Signage under Subsection (2)(a) shall display:
             189          (i) where parking is subject to being immobilized; and
             190          (ii) one of the following:
             191          (A) the name and phone number of the vehicle immobilizer that immobilizes a vehicle
             192      for the locations listed under Subsection (2)(a)(i); or
             193          (B) the name of the mobile home park or multifamily dwelling and the phone number
             194      of the mobile home park or multifamily dwelling manager or management office that
             195      authorized the vehicle immobilizer to immobilize the motor vehicle.
             196          (c) Signage is not required under Subsection (2)(b) for parking in a location:
             197          (i) that is prohibited by law; or


             198          (ii) if it is reasonably apparent that the location is not open to parking.
             199          (d) Nothing in Subsection (2)(b) restricts the ability of a mobile home park as defined
             200      in Section 57-16-3 or a multifamily dwelling from instituting and enforcing regulations on
             201      parking.
             202          (3) (a) Upon immobilizing a vehicle, the vehicle immobilizer shall affix a notice to the
             203      immobilized vehicle in a conspicuous place so as to be plainly visible to a person seeking to
             204      operate the vehicle.
             205          (b) The notice under Subsection (3)(a) shall include:
             206          (i) the name and phone number of the vehicle immobilizer;
             207          (ii) a phone number that the owner of the vehicle may call to arrange for release of the
             208      vehicle; and
             209          (iii) applicable fees.
             210          (4) (a) The maximum fee that a vehicle immobilizer may charge to remove a vehicle
             211      immobilization device may not exceed:
             212          (i) $75 for the first 24-hour period a vehicle is immobilized; plus
             213          (ii) $25 for each additional 24-hour period a vehicle is immobilized.
             214          (b) Notwithstanding Subsection (4)(a), the maximum fee that a vehicle immobilizer
             215      may charge to remove a vehicle immobilization device may not exceed $150 for each instance.
             216          (c) A vehicle immobilizer may not charge a fee for the removal of a vehicle
             217      immobilization device or any service rendered, performed, or supplied in connection with the
             218      removal of the immobilization device in addition to the fees specified under this Subsection
             219      (4).
             220          (d) A vehicle immobilizer may not charge a fee under this Subsection (4) for the
             221      immobilization of a vehicle for any period in which the vehicle has been towed and custody of
             222      the vehicle has been transferred to a vehicle impound yard.
             223          [(d)] (e) A vehicle immobilizer shall accept payment by cash and debit or credit card
             224      for the removal of a vehicle immobilization device or any service rendered, performed, or
             225      supplied in connection with the removal of the immobilization device.


             226          (5) A county or municipal legislative or governing body may not enact or enforce any
             227      ordinance, regulation, rule, or fee pertaining to a vehicle immobilization device that conflicts
             228      with this part.
             229          Section 3. Section 72-9-603 is amended to read:
             230           72-9-603. Towing notice requirements -- Cost responsibilities -- Abandoned
             231      vehicle title restrictions -- Rules for maximum rates and certification.
             232          (1) Except for a tow truck service that was ordered by a peace officer, or a person
             233      acting on behalf of a law enforcement agency, or a highway authority, after performing a tow
             234      truck service that is being done without the vehicle, vessel, or outboard motor owner's
             235      knowledge, the tow truck operator or the tow truck motor carrier shall:
             236          (a) immediately upon arriving at the place of storage or impound of the vehicle, vessel,
             237      or outboard motor:
             238          (i) send a report of the removal to the Motor Vehicle Division that complies with the
             239      requirements of Subsection 41-6a-1406 (4)(b); and
             240          (ii) contact the law enforcement agency having jurisdiction over the area where the
             241      vehicle, vessel, or outboard motor was picked up and notify the agency of the:
             242          (A) location of the vehicle, vessel, or outboard motor;
             243          (B) date, time, and location from which the vehicle, vessel, or outboard motor was
             244      removed;
             245          (C) reasons for the removal of the vehicle, vessel, or outboard motor;
             246          (D) person who requested the removal of the vehicle, vessel, or outboard motor; and
             247          (E) vehicle, vessel, or outboard motor's description, including its identification number
             248      and license number or other identification number issued by a state agency;
             249          (b) within two business days of performing the tow truck service under Subsection
             250      (1)(a), send a certified letter to the last-known address of the registered owner and lien holder
             251      of the vehicle, vessel, or outboard motor obtained from the Motor Vehicle Division or if the
             252      person has actual knowledge of the owner's address to the current address, notifying the owner
             253      of the:


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


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


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


             338      Transportation Interim Committee regarding:]
             339          [(a) the methods the department uses to set maximum rates of fees established by the
             340      department under Subsection (7);]
             341          [(b) the methods used by other entities to set maximum rates of fees equivalent to the
             342      fees established by the department under Subsection (7); and]
             343          [(c) administering state laws and rules pertaining to towing including the procedures
             344      for tow truck motor carrier violations.]
             345          (8) An impound yard may not charge a fee for the storage of an impounded vehicle,
             346      vessel, or outboard motor if:
             347          (a) the vehicle, vessel, or outboard motor is being held as evidence; and
             348          (b) the vehicle, vessel, or outboard motor is not being released to the registered owner,
             349      lien holder, or the owner's agent even if the registered owner, lien holder, or the owner's agent
             350      satisfies the requirements to release the vehicle, vessel, or outboard motor under Section
             351      41-6a-1406 .
             352          Section 4. Section 72-9-604 is amended to read:
             353           72-9-604. Regulatory powers of local authorities -- Tow trucks.
             354          (1) [A] (a) Except as provided in Subsection (1)(b), a county or municipal legislative
             355      or governing body may enact or enforce any ordinance, regulation, or rule pertaining to a tow
             356      truck or tow truck motor carrier that does not conflict with this part.
             357          (b) A county or municipal legislative governing body may not charge a fee for the
             358      storage of an impounded vehicle, vessel, or outboard motor if the county or municipality:
             359          (i) is holding the vehicle, vessel, or outboard motor as evidence; and
             360          (ii) will not release the vehicle, vessel, or outboard motor to the registered owner, lien
             361      holder, or the owner's agent even if the registered owner, lien holder, or the owner's agent
             362      satisfies the requirements to release the vehicle, vessel, or outboard motor under Section
             363      41-6a-1406 .
             364          (2) A tow truck motor carrier that has a county or municipal business license for a
             365      place of business located within that county or municipality may not be required to obtain


             366      another business license in order to perform a tow truck service in another county or
             367      municipality if there is not a business location in the other county or municipality.
             368          (3) A county or municipal legislative body may require an annual tow truck safety
             369      inspection in addition to the inspections required under Sections 53-8-205 and 72-9-602 if:
             370          (a) no fee is charged for the inspection; and
             371          (b) the inspection complies with federal motor carrier safety regulations.
             372          (4) A tow truck shall be subject to only one annual safety inspection under Subsection
             373      (3). A county or municipality that requires the additional annual safety inspection shall accept
             374      the same inspection performed by another county or municipality.


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