HB2261 - 501R

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

Section 1. Title 44, chapter 9, Arizona Revised Statutes, is amended by adding article 23, to read:

ARTICLE 23. PRIVATE PROPERTY TRESPASS TOWERS

START_STATUTE44-1379. Definition of private property trespass tower

In this article, unless the context otherwise requires, "private property trespass tower" means any person who does both of the following:

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

2. Uses a vehicle designed for or adapted to perform the services prescribed by paragraph 1. END_STATUTE

START_STATUTE44-1379.01. Rates; towing and removal

A. Beginning July 1, 2012, the following apply:

1. The rate to commercially tow or remove a trespassing vehicle from private property shall not exceed one hundred twenty dollars.

2. The rate for the storage, for periods of more than six hours, of a vehicle in connection with towing or removal shall not exceed twenty dollars per day.

B. Subsection A 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_STATUTE44-1379.02. 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 or 28‑4834. END_STATUTE

START_STATUTE44-1379.03. Record requirements; definition

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.

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 any law enforcement agency may inspect the records kept by the private property trespass tower at any time during regular business hours.

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

E. For the purposes of this section, "business hours" means 8:00 a.m. to 5:00 p.m. END_STATUTE

START_STATUTE44-1379.04. 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 and the time of removal. 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 where inquiries or complaints may be sent and make available in written form the relevant statutes governing private property trespass towers.

3. Maintain insurance coverage that satisfies the following requirements:

(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 and at least one hundred thousand dollars per heavy duty 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.

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 a specific removal.

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 removal of the vehicle from the private property 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 the county, city or town or this article.

6. Impose charges for storage for the first six hours after towing or removal. This paragraph does not prohibit a private property trespass tower from imposing storage charges after the first six hours after towing or removal of the vehicle.

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

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

9. Violate this article. END_STATUTE

START_STATUTE44-1379.05. Posting of rates; payment locations

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 clearly posted.

B. Each private property trespass tower shall accept payment for towing and storage costs at the location where the vehicle is stored or retrieved. END_STATUTE

START_STATUTE44-1379.06. 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. A private property trespass tower shall allow the owner one-time access to the vehicle for the purpose of retrieving the vehicle's current registration.

B. This section does not apply to a vehicle that is abandoned pursuant to title 28, chapter 11.

C. 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_STATUTE44-1379.07. Civil and criminal penalties

A. A person who violates this article is subject to a civil penalty of at least one thousand dollars but not more than five thousand dollars.

B. 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_STATUTE44-1379.08. Violation; classification

A person who violates this article is guilty of a class 1 misdemeanor. END_STATUTE

START_STATUTE44-1379.09. Employee fingerprints; law enforcement inspection

A private property trespass tower may fingerprint every employee or contractor of the private property trespass tower and maintain at the tower's principal place of business a fingerprint record for each employee or contractor who is fingerprinted. The fingerprint record shall be made available to a law enforcement agency on request. END_STATUTE

START_STATUTE44-1379.10. 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.

2. Places any requirements that are greater than those prescribed in 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. 2. Delayed repeal

Title 44, chapter 9, article 23, Arizona Revised Statutes, as added by this act, is repealed from and after June 30, 2021.