Towing and Impounds.
Registered tow truck operators (RTTOs) who impound vehicles from private or public property, or tow for law enforcement agencies, are regulated by the Department of Licensing (DOL). Impoundment is defined as the taking and holding of a vehicle in legal custody without the consent of the owner, and may only be performed by RTTOs. Registered tow truck operators may impound, transport, and store unauthorized vehicles and dispose of abandoned vehicles.
Registered Tow Truck Operator's Lien.
An RTTO who has a valid and signed impoundment authorization is determined to have a lien upon the impounded vehicle for services provided in the towing and storage of the vehicle, unless the impoundment is determined to have been invalid.
Notice of Impound and Redemption.
When an unauthorized vehicle is impounded, the RTTO must send an impound notice to the legal owner within 24 hours, based on information received from law enforcement. After being held for 120 consecutive hours, a vehicle is considered abandoned and the RTTO must file an abandoned vehicle report (AVP) with the DOL. In response to the AVP, the DOL provides information to the RTTO regarding the owner of the vehicle. Within 24 hours of receipt of this information, the RTTO must send, by certified mail, a notice of custody and sale to the owner. The RTTO must give written notice of the owner's right of redemption and opportunity for a hearing as well as the form for requesting a hearing, information on the person or agency that authorized the impound, and the towing and storage costs to any person who seeks to redeem an impounded vehicle. A vehicle may be redeemed by the legal owners any time before the start of the auction upon payment of towing and storage charges.
Abandoned Vehicle Auction.
If the vehicle remains unclaimed, the RTTO must conduct a sale at public auction. Vehicles may be redeemed by their legal owners any time before the start of the auction upon payment of towing and storage charges. All surplus moneys derived from the auction after satisfaction of the RTTO's lien are deposited in the State Motor Vehicle Fund. If the DOL subsequently receives a valid claim from the registered vehicle owner of record within one year from the date of the auction, the surplus moneys must be remitted to the owner.
The DOL must create a program to compensate RTTOs for the cost of towing, storage, and other services incurred by an RTTO for the towing of vehicles of indigent persons in certain circumstances. The DOL must provide a form to RTTOs on which an individual seeking the release of the vehicle self-certifies that they are eligible under the program, and the RTTO self-certifies that the impound is eligible under the program.
Vehicle Owner Eligibility.
The individual must fill out the first part of the form on which they must self-certify under penalty of perjury that they:
The individual submits the form to the RTTO.
Impound Eligibility.
After receiving the completed form from the individual, the RTTO then fills out the second part of the form. Operators must self-certify under penalty of perjury that they have verified the:
Process.
Once the form is completed by the RTTO, the RTTO must release the vehicle to the applicant and no longer has a lien or deficiency claim on the vehicle. Following submission of the form by the RTTO, and subject to the availability of funds appropriated for the purpose, the DOL is required to disburse funds to the eligible RTTO in an amount equal to the cost of the tow, storage, or other services incurred by the RTTO during the course of the private property impound or law enforcement-directed impound.
The DOL must consult with appropriate stakeholders to develop rules establishing maximum rates of reimbursement for towing, storage, and other services. Available funds are the surplus auction proceeds that are no longer subject to a valid claim. Any request for payment is not an entitlement. If funds do not exist to reimburse claims that have been submitted by RTTOs under this new provision, the DOL must create a waitlist for claims.
Notice of Impound and Redemption.
If a vehicle may be eligible under this program, the RTTO must:
(In support) This bill is a good piece of legislation that will help people who currently come to shops believing that their liability coverage somehow provides them coverage for the towing and then don't have the funds to pay for that. Towers aren't looking to hold those cars and aren't looking to be the middleman for people who can't afford their tow. This bill allows towers to give a form to those people. If they are indigent, they fill out the form, they self-certify it, and towers release their car to them. The towers then look to the state to potentially get paid for that.
When towers go out and pick up a car on the side of the road and it's destroyed, they bring it back to their shop, they go through a whole notice process, and then eventually end up at a sale where they get $200 or $250 for the scrap value of that, when their lien was $1,200.
When towers finally have a car like a Mercedes come in that doesn't have a lien on it, they sell it and end up with $80,000 above their $1,200 lien. The tower sends all of that money to the State of Washington, and this bill would then take that money and put it into a fund for indigent people who need the help.
Towers would love to have the ability to take care of people like this. Nearly every day they have someone come into the yard that can't afford their towing and storage bills. Towers try to help when they can but can't afford to help everyone.
People have to make the hard decisions between paying their rent or buying their groceries, which leads to their vehicles being deemed abandoned and towers selling them at an abandoned vehicle auction. This bill can change that conversation and do so in a very positive way. Tow operators would get paid for the invaluable and hard work they do, that's very dangerous in itself. Towers run a business 24 hours a day, seven days a week, 365 days a year. It's an expensive operation, and towers have a lot of fixed costs, such as insurance, wages, and expensive equipment.
Vehicles being sold at auction is a losing proposition. The consumer loses their car, and towers get pennies on the dollar towards towing and storage liens. The current system benefits no one.
This legislation will help everyone, and it's a fair piece of legislation. Owners of these vehicles need their cars for everyday life to get to doctor's appointments, work, school, get their kids to daycare, and basic necessities like going to the grocery store. This bill will make it possible for more people to maintain the rhythm of their lives.
This bill puts the right rules and protections in place and has a very appropriate funding mechanism that will not require new taxes or state revenues.
On average, 40 percent to 60 percent of the vehicles that come to a tow yard end up going to auction, not always because someone can't afford it, but maybe because that vehicle was so damaged after an accident that it's no longer operational. People then let them go because it's not something that can be roadworthy.
This is a really good piece of legislation. It stands to help a lot of people who deserve to be helped, and need to be helped.
If people can't afford full coverage insurance, they don't understand that they're probably not going to be able to afford a massive tow bill, either after an unfortunate accident or having a stolen car. It can then be borderline impossible to get kids to school or get to doctor's appointments.
(Opposed) None.
Chester Baldwin and Emily Wade, Towing and Recovery Association of WA (TRAW); and Drew Zachary, Burns Towing.