SB295 HD1

Report Title:

Towing; Counties Authorized to Regulate

Description:

Authorizes the counties to regulate towing operations by ordinance. (SB295 HD1)

THE SENATE	S.B. NO.	295
TWENTY-SECOND LEGISLATURE, 2003		S.D. 1
STATE OF HAWAII		H.D. 1

A BILL FOR AN ACT

relating to motor vehicle towing.

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

PART I

SECTION 1. The legislature finds that it is important for all vehicles to have proper vehicle registration and insurance for the protection and safety of the citizens of Hawaii. Currently, the counties provide special license plates to identify various nonprofit groups and organizations.

The purpose of this part is to:

(1) Enable the counties to register tow trucks; and

(2) Provide special license plates to ensure that all vehicles designated as tow trucks meet the same standards of registration and insurance verification as commercial fleet vehicles.

SECTION 2. Chapter 286, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§286- Registration of a tow truck. (a) Notwithstanding any other law to the contrary, the director of finance of each county shall require the registered owner or lessee of a vehicle designed to operate as a commercial tow truck to apply to the director of finance of the county in which the vehicle is to be operated, for special license plates, decals, and registration cards; provided that the vehicle shall not be registered in any other state.

(b) The application for the issuance of a special license plate shall be filed in a form that the director of finance requires. Upon initial application and payment of the required fees, including a processing fee, the director of finance may issue a special license plate or decal that indicates the tow truck has been registered under this section.

(c) Upon submission of the renewal of registration form and payment of the required fees, the license plates, decals, and registration cards issued pursuant to this section for the vehicle shall remain valid; provided that a tow truck registered under this section may be removed from registration as a commercial tow truck upon notification of the director of finance by the registered owner and the special license plates, decals, and registration cards issued for the vehicle are surrendered. Failure to comply with the preceding sentence shall require payment by the registered owner of the tow truck of fees due for registration of the vehicle as though the vehicles had remained registered as a commercial tow truck. Display of the special license plate or decal and registration cards shall continue to be prima facie evidence that the vehicle is currently registered.

(d) Each director of finance shall adopt rules pursuant to chapter 91 for the application, payment of fees including processing fees, and cancellation of special license plates or decals and registration cards issued to a vehicle of a tow truck owner.

§286- Tow truck; registration fees. Renewal and processing fees for the registration of a tow truck pursuant to section 286- shall be paid pursuant to a schedule established by the director of finance. The fees determined to be due and owing under this section and section 286- shall be a lien upon all vehicles of the applicant subject to registration under this chapter whether or not they are tow trucks."

SECTION 3. Section 291C-135, Hawaii Revised Statutes, is amended to read as follows:

"[[]§291C-135 Tow trucks; signage and insurance requirements.[]] (a) Notwithstanding any other law to the contrary, the registered owner or lessee of a tow truck shall:

(1) Permanently affix on each door of the truck a sign with the name and telephone number of the tow business. The letters and numbers used in the sign shall be no less than two inches in height; and

(2) Maintain insurance coverage sufficient to protect owners of towed vehicles in the event of vehicle loss or damage due to towing.

(b) If a tow operator fails to comply with the insurance requirements of this section, or section 286- , no charges, including storage charges, may be collected by the tow operator as a result of the tow or as a condition of the release of the towed vehicle. Any person, including the registered owner, lien holder, or insurer of the vehicle, who has been injured by the tow operator's failure to comply with this section is entitled to sue for damages sustained. If a judgment is obtained by the plaintiff, the court shall award the plaintiff a sum of not less than $1,000 or threefold damages sustained by the plaintiff, whichever sum is greater, and reasonable attorney's fees and costs."

PART II

The purpose of this part is to:

(1) Eliminate the variety of fees charged to different types of consumers when their vehicle is towed; and

(2) Create one fee schedule for all towing companies to abide by regardless of who initiates the tow.

SECTION 4. Section 290-11, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Towing companies [~~engaged by the owner, occupant, or person in charge of the property~~] shall:

(1) Charge not more than $55 for a tow, or $65 for a tow using a dolly, plus a mileage charge of $6.50 per mile towed and [~~$15~~] $20 per day or fraction thereof for storage for the first seven days and [~~$10~~] $15 per day thereafter. When the tow occurs between the hours of six o'clock p.m. and six o'clock a.m., from Monday through Thursday and from Friday six o'clock p.m. to Monday six o'clock a.m., the towing company shall be entitled to an overtime charge of $15. If the vehicle is in the process of being hooked up to the tow truck and the owner appears on the scene before the vehicle has been moved by the tow truck, the towing company shall unhook the vehicle upon payment by the owner of an "unhooking" fee of not more than $50. If the owner is unwilling or unable to pay the "unhooking" fee, the vehicle may be towed. In the case of a difficult hookup, meaning an above or below ground hookup in a multilevel facility, a towing surcharge of $30 shall be applicable;

(2) Determine the name of the legal owner and the registered owner of the vehicle from the department of transportation or the county department of finance. The legal owner and the registered owner shall be notified in writing at the address on record with the department of transportation or with the county department of finance by registered or certified mail of the location of the vehicle, together with a description of the vehicle, within [~~a reasonable period not to exceed twenty~~] five working days following the tow. The notice shall state:

(A) The maximum towing charges and fees allowed by law;

(B) The telephone number of the consumer information service of the department of commerce and consumer affairs; and

(C) That if the vehicle is not recovered within thirty days after the mailing of the notice, the vehicle shall be deemed abandoned and will be sold or disposed of as junk.

Where the owners have not been so notified, then the owner may recover the owner's car from the towing company without paying tow or storage fees; provided that the notice need not be sent to a legal or registered owner or any person with an unrecorded interest in the vehicle whose name or address cannot be determined. Absent evidence to the contrary, a notice shall be deemed received by the legal or registered owner five days after the mailing. A person, including but not limited to the owner's or driver's insurer, who has been charged in excess of the charges permitted under this section may sue for damages sustained and, if the judgment is for the plaintiff, the court shall award the plaintiff a sum not to exceed the amount of the damages and reasonable attorney's fees together with the cost of suit;

(3) Provide, when a vehicle is recovered by the owner before written notice is sent by registered or certified mail, the owner with a receipt stating:

(A) The maximum towing charges and fees allowed by law; and

(B) The telephone number of the consumer information service of the department of commerce and consumer affairs; and

(4) Accommodate payment by the owner for charges under paragraph (1) by cash and by either credit card or automated teller machine located on the premises. "

PART III

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.