Towing and Immobilizing Fees and Charges (Oppose – Preemption)

Towing and Immobilizing Fees and Charges (Oppose – Preemption)

HB 963 (Cortes) and SB 1632 (Mayfield) prohibit cities from enacting an ordinance that imposes a fee or charge on an authorized wrecker operator or towing company for towing, impounding or storing a vehicle or vessel. This would prohibit cities from contracting with towing companies for towing services if the contract requires the tow company to pay an annual, quarterly, or monthly fee to provide those services. Additionally, the bills clarify that the maximum rate charged to immobilize a vehicle or vessel cannot be more than 20 percent of the maximum rate for towing charged by a towing company. The bills limit cities to charging an administrative fee of up to 25 percent of the maximum towing rate to the registered owner of the towed vehicle, when it is towed from public property. The bills clarify that towing businesses can collect this administrative fee, but are required to remit the fee (to the city) only when it is collected. Finally, the bills clarify that cities may not impose a charge, fee or fine on the registered owner of the towed vehicle, unless specific requirements are met. HB 963 was amended to exempt counties with licensing programs from the prohibition on receiving fees from towing companies if certain conditions are met. (Cook)