BILL REQ. #:  H-0948.1 

Read first time 02/01/13.   Referred to Committee on Transportation.

     AN ACT Relating to consumer protection for tow truck services; amending RCW 46.55.030; adding a new section to chapter 46.55 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that the use of a motor vehicle is often a necessity for residents' livelihood and families. Therefore, the legislature finds it is important for the public to know what the charges and fees will be for the private impound of cars and other vehicles parked on private property, and that those charges should be reasonable to ensure that residents may retrieve impounded vehicles.

Sec. 2   RCW 46.55.030 and 2010 c 8 s 9061 are each amended to read as follows:
     (1) Application for licensing as a registered tow truck operator shall be made on forms furnished by the department, shall be accompanied by an inspection certification from the Washington state patrol, shall be signed by the applicant or an agent, and shall include the following information:
     (a) The name and address of the person, firm, partnership, association, or corporation under whose name the business is to be conducted;
     (b) The names and addresses of all persons having an interest in the business, or if the owner is a corporation, the names and addresses of the officers of the corporation;
     (c) The names and addresses of all employees who serve as tow truck drivers;
     (d) Proof of minimum insurance required by subsection (((3))) (4) of this section;
     (e) The vehicle license plate and vehicle identification numbers of all tow trucks of which the applicant is the registered owner;
     (f) Any other information the department may require; and
     (g) A certificate of approval from the Washington state patrol certifying that:
     (i) The applicant has an established place of business and that mail is received at the address shown on the application;
     (ii) The address of any storage locations where vehicles may be stored is correctly stated on the application;
     (iii) The place of business has an office area that is accessible to the public without entering the storage area; ((and))
     (iv) The place of business has adequate and secure storage facilities, as defined in this chapter and the rules of the department, where vehicles and their contents can be properly stored and protected; and
     (v) All persons having an interest in the business, or if the owner is a corporation all officers of the corporation, and all employees who serve as tow truck drivers meet the criminal background requirements set by rule by the Washington state patrol for the issuance of a letter of appointment to provide towing services.
     (2) If the applicant is issued a registration certificate, the operator must notify the Washington state patrol and the department of any changes in ownership or corporate officers and notify the Washington state patrol of any new employee hires who serve as tow truck drivers within three days of hiring. The new owners or officers of the company or new employees who serve as tow truck drivers must meet the same criminal background requirements required under subsection (1)(g)(v) of this section.
     (3) Before issuing a registration certificate to an applicant the department shall require the applicant to file with the department a surety bond in the amount of five thousand dollars running to the state and executed by a surety company authorized to do business in this state. The bond shall be approved as to form by the attorney general and conditioned that the operator shall conduct his or her business in conformity with the provisions of this chapter pertaining to abandoned or unauthorized vehicles, and to compensate any person, company, or the state for failure to comply with this chapter or the rules adopted hereunder, or for fraud, negligence, or misrepresentation in the handling of these vehicles. Any person injured by the tow truck operator's failure to fully perform duties imposed by this chapter and the rules adopted hereunder, or an ordinance or resolution adopted by a city, town, or county is entitled to recover actual damages, including reasonable attorney's fees against the surety and the tow truck operator. Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. As a condition of authority to do business, the operator shall keep the bond in full force and effect. Failure to maintain the penalty value of the bond or cancellation of the bond by the surety automatically cancels the operator's registration.
     (((3))) (4) Before the department may issue a registration certificate to an applicant, the applicant shall provide proof of minimum insurance requirements of:
     (a) One hundred thousand dollars for liability for bodily injury or property damage per occurrence; and
     (b) Fifty thousand dollars of legal liability per occurrence, to protect against vehicle damage, including but not limited to fire and theft, from the time a vehicle comes into the custody of an operator until it is redeemed or sold.
     Cancellation of or failure to maintain the insurance required by (a) and (b) of this subsection automatically cancels the operator's registration.
     (((4))) (5) The fee for each original registration and annual renewal is one hundred dollars per company, plus fifty dollars per truck. The department shall forward the registration fee to the state treasurer for deposit in the motor vehicle fund.
     (((5))) (6) The applicant must submit an inspection certificate from the state patrol before the department may issue or renew an operator's registration certificate or tow truck permits.
     (((6))) (7) Upon approval of the application, the department shall issue a registration certificate to the registered operator to be displayed prominently at the operator's place of business.

NEW SECTION.  Sec. 3   A new section is added to chapter 46.55 RCW to read as follows:
     (1) For a private impound performed by any registered tow truck operator using tow trucks classified by the Washington state patrol by rule under RCW 46.55.050(1) as class A, class E, or class D only, the following limitations apply:
     (a) The maximum towing hourly rate listed on the fee schedule filed with the department under RCW 46.55.063(1) may not exceed one hundred thirty-five percent of the maximum hourly rate for a class A tow truck at the time of filing as negotiated by the Washington state patrol, pursuant to rule, and contained in the letter of contractual agreement and letter of appointment authorizing a registered tow truck operator to respond to state patrol-originated calls.
     (b) The maximum daily storage rate listed on the fee schedule filed with the department under RCW 46.55.063(1) may not exceed one hundred thirty-five percent of the maximum daily storage rate for an impound at the time of filing as negotiated by the Washington state patrol, pursuant to rule, and contained in the letter of contractual agreement and letter of appointment authorizing a registered tow truck operator to respond to state patrol-originated calls.
     (c) The maximum after hours release fee listed on the fee schedule filed with the department under RCW 46.55.063(1) may not exceed one hundred percent of the maximum after hours release fee for an impound at the time of filing as negotiated by the Washington state patrol, pursuant to rule, and contained in the letter of contractual agreement and letter of appointment authorizing a registered tow truck operator to respond to state patrol-originated calls.
     (2) The limitations set forth in subsection (1) of this section apply to all registered tow truck operators whether or not they hold, have applied for, or received letters of appointment from the Washington state patrol to respond to state patrol-originated calls.
     (3) The limitations set forth in subsection (1) of this section do not apply to:
     (a) Any other classes of tow trucks classified by the Washington state patrol by rule under RCW 46.55.050(1); or
     (b) Law enforcement impounds or private voluntary towing.
     (4) The limitations set forth in subsection (1) of this section only apply if the vehicle is parked and upright, has all its wheels and tires attached, does not have a broken axle, and has not been involved in an accident at the location from which it is being impounded.