HOUSE BILL REPORT

ESB 5440

As Amended by the House

BYSenators von Reichbauer, Bender, Patterson, DeJarnatt, Conner and Hansen; by request of Legislative Transportation Committee

Regulating tow trucks.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (26)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Betrozoff, Cantwell, Cooper, Day, G. Fisher, R. Fisher, Gallagher, Hankins, Haugen, Heavey, Jones, R. Meyers, Nelson, Patrick, Prentice, Prince, Smith, D. Sommers, Todd, Walker, S. Wilson and Zellinsky.

House Staff:Brad Lovaas (786-7307)

AS PASSED HOUSE APRIL 6, 1989

BACKGROUND:

The Department of Licensing (DOL) and the Washington State Patrol (WSP) jointly administer the state's tow truck program.  In 1985 DOL and WSP were given the authority to regulate impoundment and redemption of motor vehicles.  During the interim a variety of problems were brought to the attention of the Joint Subcommittee on Driver and Vehicle Programs of the Legislative Transportation Committee, ranging from the practical application of the law to administration.

The Joint Subcommittee, the affected agencies and the industry recommend changes to the tow truck program.

SUMMARY:

The tow truck program is amended as follows:

To be licensed, an operator must have an inspection form at time of application.  Violation of this by a business is a traffic infraction with a monetary penalty no less than $250.

Specific identification of tow trucks is required on application.  Mail is to be received at business locations.  Addresses of all storage lots are required.  Failure to keep insurance in effect or cancellation of insurance automatically cancels the license.  Language requires an inspection form to accompany application for license.

A tow truck must have its own permit.  A decal is allowed in place of the paper permit.

Each business location must have a sign, readable from the street, that displays the firm's name.  Normal business hours are defined as 8:00 AM to 5:00 PM on weekdays, excluding weekends and holidays.

A new section for fees is added.  Fees stated on a rate sheet must be adequate to cover services, and tow and storage service must be charged on an hourly basis.

Language is clarified as to who may not provide impound authorization.  File keeping requirements are imposed with regard to a new "master log."  Operators are prohibited from associating in any way with businesses whose main function is to authorize the impounding of vehicles.

The one-to-three-week turn around time DOL takes to provide owner information (hard copy) to the impounding operator is abolished.

The operators will notify all impounded vehicle owners of an impoundment.  Such notice shall identify the person or agency authorizing the impound.  Law enforcement must provide owner identification to the operator.

A person determined and verified by the operator to have the permission of the registered owner of the vehicle may recover the vehicle.  A person who stops payment on a credit card charge used to recover a vehicle is liable to the towing firm for twice the amount of the bill.  If an impound is in violation of this chapter, the district court shall enter a judgment of not less than $50 against the person or agency who illegally authorized the impound.

The period for notice is expanded to accommodate weekly newspapers.  Bidders are required to list name, address and telephone number.

Auction fees or a buyer's fee may not be charged.

All traffic infractions issued under this chapter are put into the court system.  The scope of DOL's administrative hearing authority is narrowed to licensing violations of this chapter.

The Department's authority is broadened to allow for a combination of administrative actions.

Inclusion of vehicle impoundment language in local ordinances is mandated.

The Department of Transportation's tow trucks are exempt from the immediate statutory authorization requirements.

RCW 46.61.563 is repealed and defined in 46.55.

Language is to be included on the impound authorization that the person authorizing the impound may be held liable for the cost incurred by the vehicle owner if the impound is declared in violation of 46.55 RCW.

Notices to legal and registered owners need not be sent if the vehicle has been redeemed.

at the time of redemption.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Major Rick Jensen, Washington State Patrol; Heather Hamilton, Department of Licensing; Chuck McCormick, Washington Tow Truck Association; Milt Harnden, AAA; Foster Cronyn, Washington Insurers; Joan Way, citizen.

House Committee - Testified Against:      Dave Faulk, Tow Masters; Leo Poort, Seattle Police Department; Jerry Johnson, Horton's Towing; Ron Grant, Grant's Towing; Maggie LeMoine, Seattle Central Towing.

House Committee - Testimony For:    The measure provides for better enforcement, business practices and consumer protection.

House Committee - Testimony Against:      Various provisions are onerous; some provisions don't go far enough.