SB1430 - 501R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-1108, Arizona Revised Statutes, is amended to read:

START_STATUTE28-1108. Vehicle towing; rules; contractual agreement for towing services; weight exemption

A. If a vehicle is towing another vehicle, the drawbar or other connection shall be of sufficient strength to pull all weight towed by the vehicle and the drawbar or other connection shall not exceed fifteen feet from one vehicle to the other, except the connection between any two vehicles transporting poles, pipe, machinery or other objects of a structural nature that cannot readily be dismembered.

B. If a vehicle is towing another vehicle and the connection consists of a chain, rope or cable, a white flag or cloth at least twelve inches square shall be displayed on the connection.

C. The director of the department of public safety shall adopt and enforce rules that are not inconsistent with this chapter to govern the design and operation of all tow trucks.

D. A person may not operate a tow truck for the purpose of towing vehicles without first registering with the director of the department of public safety, obtaining a bond in an amount of one hundred thousand dollars and obtaining a permit pursuant to the rules that govern tow trucks and that are adopted by the department of public safety.

E. The director of the department of public safety or a county, city or town may enter into a contractual agreement 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. The contractual agreement shall comply with this section and all rules adopted under this section. Contracts shall be awarded on the basis of competitive bidding. The director of the department of public safety or a county, city or town shall reserve the right to reject all bids. If only one bid is received, the director of the department of public safety or a county, city or town may reject the bid and negotiate a contract without bidding if the negotiated contract is at a price lower than the bid price under the terms and conditions specified in the call for bids.

F. The total weight of a tow truck and the towed vehicle is exempt from the maximum total gross weight load allowed under section 28‑1100 if a damaged, disabled or abandoned vehicle or vehicle combination is towed. END_STATUTE

Sec. 2. Section 28-4847, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4847. Insurance companies; release; fees; vehicle repair facilities; applicability; violation; classification; definition

A. The A towing company shall release a towed vehicle to a person designated in writing by an insurance company during normal business hours on the day the request for release is provided to the towing company, the detailed statement of charges is provided by the towing company at no cost and payment for all reasonable towing, storage and related fees is received by the towing company. The request for release shall be in writing and:

1. Shall indicate the name of the insurer as well as the name, address, telephone number and fax number of a representative of the insurer.

2. Shall include the name, address and telephone number of the owner, the owner's written consent for release of the vehicle and the name of the insured, if different from the owner.

3. Shall include the insurer's claim number and the name of the person to whom the insurer authorizes release of the vehicle.

4. Shall be signed by the owner except as provided in paragraph 6 of this subsection.

5. May be faxed, mailed or hand delivered to the towing company.

6. If the written consent of the owner is not obtained pursuant to paragraph 2 of this subsection, the request for release shall include a statement that the insurer has authorization from the vehicle owner to remove the vehicle from the towing company's storage premises.

7. Shall include a statement that the owner has been informed that pursuant to this section the towing company is presumptively not responsible for any loss of personal property or damage to the vehicle that is not disclosed to the towing company before the insurer or the insurer's authorized agent removes the vehicle from the towing company's storage premises. The notice shall also include a statement that the owner or person designated in writing by the owner and witnessed by a third party may inspect the vehicle at the towing company's storage premises, may remove any personal property from the vehicle and may report any damage to the vehicle to the towing company at the time of inspection. The towing company shall not require payment for the removal of personal property that is inside the vehicle if the removal is during business hours. For the purposes of this paragraph, personal property does not include any vehicle parts, vehicle equipment or vehicle accessories.

B. After an insurance company has completed a request for release of a vehicle and before payment is made for the release of that vehicle, the towing company shall provide to the insurance company at no cost a detailed written statement of all charges for towing, storage and related fees. Additional storage charges may accrue until final payment is made and the vehicle is removed from the premises by the vehicle owner or the insurance company or the person designated in writing by the insurance company.

C. If the vehicle owner does not inspect the vehicle pursuant to subsection A, paragraph 7 of this section before removal of the vehicle to another premises, or has inspected the vehicle and has had the opportunity to remove personal property in the vehicle, a rebuttable presumption shall be created that damage to the vehicle and any loss of personal property in the vehicle occurred while the vehicle was not in the custody of the towing company. The presumption may be overcome by a preponderance of evidence to the contrary.

D. Except for proration for partial days, a towing company shall not charge additional storage fees for a vehicle after a request for release and payment has been made pursuant to subsection A of this section if both of the following apply:

1. The insurance company or its representative provides the written request for release as prescribed in this section.

2. The insurance company or its representative removes the vehicle from the towing company's storage premises during normal business hours on the day the towing company receives the request for release.

E. A person in this state may choose any vehicle repair facility for the repair of a motor vehicle. A towing company or authorized operator of a towing vehicle may refer a person to a particular vehicle repair facility after the vehicle arrives at the storage location. At the same time a towing company or operator of a towing vehicle provides information about a vehicle repair facility, the company or operator shall inform the person of both of the following:

1. The person's right to choose any vehicle repair facility for the repair of a motor vehicle.

2. Any commonality of ownership between the vehicle repair facility and either the towing company or the operator of the towing vehicle.

F. A towing company shall not tow or transport a vehicle from its storage lot without the prior permission of the vehicle owner or the insurance company. The towing company may move a vehicle between its own storage lots without obtaining prior permission. The towing company shall not charge any additional fee or other monies to a vehicle owner or an insurance company as a result of any change in location of the vehicle between its own storage lots.

G. A vehicle repair facility or any employee of a vehicle repair facility shall not pay or agree to pay, and a towing company or any employee of a towing company shall not accept or agree to accept, any monies, fees, commissions, credits, gifts, gratuities, things of value or other compensation that is provided directly or indirectly for the purpose of inducing the towing company or any employee of a towing company to do any of the following:

1. Attempt to intimidate, unreasonably persuade or induce the person requesting the tow or transport of a vehicle to choose the services of the vehicle repair facility recommended by the towing company.

2. Refuse to tow or transport the vehicle unless the person requesting the tow or transport of a vehicle agrees to the vehicle repair facility recommended by the towing company.

3. Deliver a vehicle to a vehicle repair facility other than the vehicle repair facility chosen by the person requesting the tow or transport of the vehicle.

4. Make an intentional misrepresentation regarding the condition of the vehicle, the person's insurer or a specific vehicle repair facility.

H. Unless otherwise directed by a law enforcement officer, the towing company shall tow the vehicle to one of the following locations, in the following order of priority:

1. A location specified by the owner of the vehicle if the owner is present at the time of the tow and is capable of indicating the owner's preference.

2. A vehicle storage yard designated in the contract under which the towing company has responsibility for towing the vehicle.

I. Subsection E of this section does not create a private right or cause of action to or on behalf of any person.

J. This section does not create a cause of action or a right to bring an action against a towing company for releasing a motor vehicle to a person other than the owner if the written authorization as prescribed in this section is provided to the towing company by the owner or an insurance company.

K. This section only applies to tows resulting from motor vehicle accidents.

L. A person who violates this section is guilty of a petty offense. A person who subsequently violates this section within thirty‑six months after a prior violation of this section is guilty of a class 3 misdemeanor.

M. For the purposes of this section:

1. "Gift" does not include an item of nominal value.

2. "Owner" has the same meaning prescribed in section 28‑101. END_STATUTE

Sec. 3. Heading change

The chapter heading of title 28, chapter 11, Arizona Revised Statutes, is changed from "ABANDONED, SEIZED AND JUNK VEHICLES" to "ABANDONED, SEIZED, JUNK AND TOWED VEHICLES".

Sec. 4. Title 28, chapter 11, Arizona Revised Statutes, is amended by adding article 4, to read:

ARTICLE 4. PRIVATE PROPERTY TRESPASS TOWERS

START_STATUTE28-4901. Definitions

In this article, unless the context otherwise requires:

1. "Business hours" means 8:00 a.m. to 5:00 p.m. each day, excluding holidays pursuant to section 1-301.

2. "Private property trespass tower" means any person who does both of the following:

(a) Commercially offers services to tow, transport or impound motor vehicles from private property without the permission of the owner or operator of the vehicle.

(b) Uses a vehicle designed for or adapted to perform the services prescribed by subdivision (a). END_STATUTE

START_STATUTE28-4902. Department duties

A. The department shall:

1. Adopt rules necessary to administer this article.

2. Beginning July 1, 2012, set maximum rates for:

(a) The commercial towing or removal of trespassing vehicles from private property.

(b) The storage of vehicles in connection with towing or removal.

3. Review the rates set pursuant to paragraph 2 every three years.

B. The department may establish and adjust fees with respect to this article.

C. Subsection A, paragraph 2 of this section does not apply to a county or an incorporated city or town that regulates the maximum rates and charges 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 property trespass tower or private towing carrier pursuant to section 9‑499.05 or 11-251.04. END_STATUTE

START_STATUTE28-4903. Towing performed pursuant to police action

This article does not regulate or otherwise affect towing performed by any private property trespass tower or private towing carrier pursuant to the order or request of a law enforcement official or agency pursuant to section 28‑872, 28-3511 or 28‑4834. END_STATUTE

START_STATUTE28-4904. Record requirements

A. Each private property trespass tower who tows vehicles pursuant to this article shall keep and maintain at the private property trespass tower's principal place of business a permanent record, and at each place of business of the tower that is not its principal place of business an electronic copy of the permanent record, for each vehicle removed by the private property trespass tower that records and describes the following:

1. The make, model and description of the vehicle.

2. The name of the owner of the vehicle or owner's agent requesting release of the vehicle.

3. The number of the license plate of the vehicle.

4. The place from which and to which the vehicle was towed or transported.

5. If, after removal, the vehicle's title is obtained pursuant to section 28-4838, how the vehicle was disposed of.

B. The private property trespass tower shall maintain the record at the tower's established place of business for a period of at least three years after the date of removing each vehicle recorded.

C. Authorized representatives of the department or any law enforcement agency may inspect the records kept by the private property trespass tower at any time during business hours.

D. During business hours and after reasonable demand, each private property trespass tower shall allow any person described in subsection C of this section to physically compare the records required to be maintained with the vehicles that are located at the tower's place of business. END_STATUTE

START_STATUTE28-4905. Enforcement powers

In the enforcement of any law pertaining to private property trespass towers, the director may conduct hearings, take testimony and conduct investigations as the director deems necessary. END_STATUTE

START_STATUTE28-4906. Appeal

Final decisions of the director pursuant to this article are subject to judicial review pursuant to title 12, chapter 7, article 6. END_STATUTE

START_STATUTE28-4907. Hearings

A. The director may conduct a hearing if the director alleges that a private property trespass tower refuses or fails to comply with this article or a rule adopted by the director pursuant to this article relating to private property trespass towers.

B. The director shall hold the hearing at least fifteen but not more than thirty days after service of a written notice. The director shall send the notice by personal delivery or certified mail to the address provided to the department in the report alleging the noncompliance.

C. A finding that a private property trespass tower is in violation of this article or a rule adopted by the director pursuant to this article requires both of the following determinations:

1. The person refuses or fails to comply with the requirements of this article or a rule adopted by the director pursuant to this article.

2. The person ordered to appear at the hearing is responsible for the violation.

D. The scope of the hearing is limited to the determinations prescribed in subsection c of this section.

E. After consideration of the evidence presented at the hearing, the director shall serve notice of the director's finding and order within five days after the hearing. END_STATUTE

START_STATUTE28-4908. Civil penalty

A. After a hearing conducted pursuant to section 28-4907, if the director finds that a person is in violation of this article or a rule adopted by the director pursuant to this article, the director may impose a civil penalty of at least one thousand dollars but not more than five thousand dollars.

B. The person shall pay the civil penalty imposed pursuant to this section to the department no later than thirty days after the order is final. If the person fails to pay the civil penalty within thirty days after the order is final, the director shall file an action in the superior court in the county in which the hearing is held to collect the civil penalty. END_STATUTE

START_STATUTE28-4909. Required practices; unlawful practices

A. A private property trespass tower shall:

1. Within twenty minutes after towing the vehicle, notify law enforcement authorities in the jurisdiction in which the trespassing vehicle was towed, transported or impounded. Notification shall include a complete description of the vehicle, the license plate number, the vehicle identification number, if possible, the locations from which and to which the vehicle was removed, the time of removal and any other information required by department rule. The notification required by this paragraph may be made by electronic means.

2. In the office or location at which towed vehicles are routinely returned to their owners, prominently post the name, address and telephone number of the nearest office of the department where inquiries or complaints may be sent and make available in written form the relevant statutes and rules governing private property trespass towers.

3. Maintain all stored vehicles in a secured lot with a perimeter fence that is at least six feet high and that has functioning locks at all entrances and exits.

4. Maintain insurance coverage that satisfies the following requirements and provide proof of the coverage to the director:

(a) Business automobile liability insurance that provides coverage for claims arising from bodily injury, death or property damage arising out of the ownership, maintenance or use of any vehicle with a combined single limit for each occurrence of at least one million dollars and an on-hook endorsement.

(b) Garage keepers legal liability insurance that provides coverage for all loss or damage to the vehicle owner's property while in the private property trespass tower's care and that the tower is legally responsible for with limits of at least fifty thousand dollars per vehicle.

(c) Workers' compensation insurance with an employer liability limit of at least one hundred thousand dollars for each accident, an employee or disease limit of at least one hundred thousand dollars and a total policy limit of at least five hundred thousand dollars.

(d) Insurance coverage that provides that:

(i) The insurance may not be canceled without providing written notice at least thirty days before the cancellation.

(ii) The maximum deductible for the insurance required pursuant to subdivision (c) of this paragraph is two thousand five hundred dollars per event.

5. Post a sign in a conspicuous place that is visible from the right‑of‑way that contains the private property trespass tower's name, telephone number, address and business hours, including all holidays, in letters at least three inches in height. The information on the sign shall be in the form and manner that the department prescribes by rule.

6. Photograph the location and condition of the vehicle before the vehicle's removal. On the request of a law enforcement officer or the private property owner, the private property trespass tower shall provide a copy of the photographs of the vehicle.

7. inform the vehicle owner or operator who is present or arrives at the vehicle location at any time before the private property trespass tower has transported the vehicle but after completion of the vehicle hookup, attachment of all safety equipment and notification to the law enforcement agency that an on-site release fee does not apply if proof of identity and ownership documentation is provided pursuant to section 28-4912, subsection A.

B. A private property trespass tower shall not:

1. Tow, transport or impound any vehicle from private property without having first obtained the written authorization of the property owner or other person in lawful possession or control of the property or the authorized agent of that person. The authorization may be on a contractual basis covering a period of time or limited to the removal of a specific vehicle.

2. Charge to or accept or otherwise collect from the private property owner or authorized agent who requested that an unauthorized vehicle be towed, transported or impounded from the owner's property any fees for removing the vehicle contrary to any terms that may be part of the contract between the property owner and the private property trespass tower.

3. Tow, transport or impound a vehicle when the owner or operator of the vehicle is present or arrives at the vehicle location at any time before the completion of hookup, attachment of all safety equipment and notification to the law enforcement agency and is willing and able to remove the vehicle immediately. In such case, no fee may be charged to the vehicle owner or operator.

4. Tow, transport or impound any vehicle from property on which signs are required and on which signs are not posted pursuant to section 9-499.05 or 11‑251.04.

5. Impose any charge for service or storage other than the rates set by this state or the county, city or town.

6. Transport any vehicle to a location that is more than twenty miles away from the location where the private property trespass tower first removed the vehicle.

7. Covertly observe or employ any type of observer within one thousand feet of private property for the purpose of monitoring or ordering the towing, transporting or impounding of a vehicle from that private property unless the private property trespass tower does either of the following:

(a) Provides a verbal warning to the vehicle owner or operator of the possible towing, transporting or impounding of the vehicle.

(b) Clearly posts signs warning that the private property has on-site monitoring and the hours of the monitoring.

8. Park a vehicle on private property for the sole purpose of inducing unauthorized parking on that private property.

9. Use drivers or other personnel who are not employees or contractors of the private property trespass tower.

10. Provide to the property owner or the property owner's authorized agent any compensation or any other type of benefit, other than signage, towing, transporting or impounding the vehicle from the property.

11. Make any false statement of material fact, misrepresent information in any document or omit disclosure of a material fact in the performance of an activity regulated by this article.

12. Violate this article or rules adopted pursuant to this article. END_STATUTE

START_STATUTE28-4910. Civil and criminal penalties

This article does not limit or alter the vehicle owner's civil or criminal liability for trespass. This article does not limit or alter the civil or criminal liability of any person for any act or omission. All penalties accruing under this article are cumulative. END_STATUTE

START_STATUTE28-4911. Posting of rates; payment forms

A. Each private property trespass tower shall print and keep open to the public all authorized rates and charges for towing, otherwise moving and storing vehicles in connection with the removal of unauthorized vehicles from private property. The rates and charges shall be clearly stated in dollar amounts and shall be posted in the form and manner and shall contain the information that the department prescribes by rule.

B. Each private property trespass tower shall accept multiple forms of payment for towing and storage costs at the location where the vehicle is stored or retrieved, including payment by any valid credit card or debit card. The private property trespass tower shall issue to the vehicle owner or operator an itemized receipt of all of the charges. END_STATUTE

START_STATUTE28-4912. Release of relocated vehicles; nonpayment; applicability; definition

A. Before release of a vehicle that is towed, transported or impounded by a private property trespass tower pursuant to this article, the owner of the vehicle or the owner's agent shall pay or make satisfactory arrangements to pay for any towing and storage costs that comply with the rates set pursuant to section 9‑499.05, section 11-251.04 or this article, except that a private property trespass tower shall not refuse to release to the owner a vehicle that the private property trespass tower tows pursuant to this article if the owner refuses to pay the towing and storage costs. An owner who refuses to pay the towing and storage costs shall provide proof of identity and ownership of the vehicle and shall sign a receipt acknowledging that the vehicle has been reclaimed and whether or not the owner disputes any unpaid balance due before the vehicle is released. Possessing the keys to a vehicle is not proof of ownership of the vehicle.

B. A private property trespass tower shall allow, during business hours, the owner or the owner's agent one-time access to the vehicle at no cost for the purpose of retrieving the vehicle's current registration or property located in the vehicle, except that no tool may be used for the removal of property from the vehicle.

C. This section does not apply to a vehicle that is abandoned pursuant to this chapter.

D. For the purposes of this section, "proof of identity and ownership of the vehicle" means providing government issued identification and the vehicle's current title or registration. END_STATUTE

START_STATUTE28-4913. Dispute resolution; definitions

A. If the owner of a vehicle that is towed pursuant to this article or the owner's agent disputes the towing and storage costs or any other action of the private property trespass tower, operator or dispatcher, the owner or the owner's agent may submit a written request for a hearing to the director.

B. For the purposes of this section:

1. "Dispatcher" means any person who, as an employee or agent of a private property trespass tower, dispatches vehicles to or from locations where operators perform removal activities.

2. "Operator":

(a) Means any person who does both of the following:

(i) As an employee of a private property trespass tower, tows, transports or impounds motor vehicles from private property without the permission of the owner or operator of the vehicle.

(ii) Uses a vehicle designed for or adapted to perform the services prescribed by item (i).

(b) Includes the driver of any vehicle used in towing, transporting or impounding a trespassing vehicle from private property and any person other than the driver who assists in the towing, transporting or impounding of a trespassing vehicle from private property. END_STATUTE

START_STATUTE28-4914. Violation; classification

A person who violates this article is guilty of a class 3 misdemeanor. END_STATUTE

START_STATUTE28-4915. Civil penalties; fees; deposit

The director shall deposit, pursuant to sections 35-146 and 35-147, penalties and fees collected pursuant to this article in the state general fund. END_STATUTE

START_STATUTE28-4916. Local ordinances or rules

This article does not prohibit a county or an incorporated city or town from enacting an ordinance or rule that either:

1. Is more restrictive than this article or any rule adopted pursuant to this article.

2. Places any requirements that are greater than those prescribed in this article or any rule adopted pursuant to this article on towing, transporting or impounding a motor vehicle from private property without the permission of the owner or operator of the vehicle by any private property trespass tower or private towing carrier. END_STATUTE

Sec. 5. Section 33-1022, Arizona Revised Statutes, is amended to read:

START_STATUTE33-1022. Garages; towing services and storage facilities; aircraft

A. Proprietors of garages and repair and service stations shall have a lien upon on motor vehicles of every kind and aircraft, and the parts and accessories placed thereon, for labor, materials, supplies and storage for the amount of the charges, when the amount of the charges is agreed to by the proprietor and the owner. Proprietors of towing services and storage facilities shall have a lien on motor vehicles of every kind for the amount of the charges for towing or storage, or both, when the amount of the charges is agreed to by the proprietor and the owner of the vehicle or when a third party has reimbursed the owner of the vehicle for the charges.

B. The lien shall not impair any other lien or conditional sale of record at the time the labor, materials, supplies and storage were commenced to be furnished, unless furnished with the knowledge and consent of the record lienor or vendor.

C. If a proprietor has a lien on an aircraft pursuant to subsection A of this section, the proprietor who provides labor, materials, supplies and storage for aircraft may relinquish possession of the aircraft and retain the lien by recording the lien with the county recorder of the county in which the labor, materials, supplies or storage were provided. The lien shall be filed with the county recorder within thirty days after possession is relinquished. In addition, the proprietor may record the lien with the federal aviation administration aircraft registry. A lien filed with the federal aviation administration aircraft registry shall comply with all requirements of federal law and shall accurately describe the aircraft, list the amount of the claim, list the date on which the labor, materials, supplies or storage were last furnished, be signed by the claimant showing the title of the signer, if appropriate, and be accompanied by the recording fee.

D. A lien which that is filed with a county recorder pursuant to subsection C of this section does not bind a purchaser of the aircraft without actual notice of the lien unless the lien has also been recorded with the federal aviation administration aircraft registry. A lien authorized under subsection C of this section may be foreclosed only by an action in court.

E. When an aircraft lien which that has been recorded under this section has been satisfied, the lienholder within thirty days after satisfaction shall issue a release of the lien to the person against whom the lien was claimed and shall record the release of that lien in the county in which the lien was recorded and with the federal aviation administration aircraft registry, if the lien was recorded there. Failure to record a release upon on satisfaction of the lien shall subject the lienholder to the penalties prescribed in section 33‑712. END_STATUTE

Sec. 6. Delayed repeal

Title 28, chapter 11, article 4, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2021.