Vehicle Immobilization Company Regulation

The act allows the public utilities commission (commission) to suspend, revoke, or refuse to renew a permit to immobilize a vehicle for felonies and immobilization-related offenses. An applicant must disclose each person that is an owner, a principal, an officer, a member, a partner, or a director of the vehicle immobilization company (company) in an application. The commission is authorized to deny an application for or suspend, revoke, or refuse to renew a permit of a company based on a determination that it is not in the public interest for the company to possess a permit. The determination is subject to appeal. Possession of a permit is rebuttably presumed to be not in the public interest if a company has willfully and repeatedly failed to comply with the relevant law.

The act adds the following new duties for companies:

Before immobilizing a vehicle, the company must document the vehicle's condition and the reason for the immobilization. Standards are set for the documentation, including taking photographs. Upon demand by an authorized or interested person, the company must provide copies of the photographs, and if the company does not provide the photographs and a vehicle is damaged, it creates a rebuttable presumption that the company damaged the vehicle or did not have authority to immobilize the vehicle; A company shall display its name, the permit number, and a phone number of the company on each company vehicle used in immobilization. Standards are set for the display. The representative of a company must have business identification visibly worn at all times while immobilizing a vehicle or accepting payment; If a vehicle has been immobilized by a company, another company must not immobilize the vehicle; If a company applies more than one immobilization device to a vehicle, the company may not charge more than once for the removal of all the immobilization devices; A company must provide, upon request, evidence of the company's commercial liability insurance coverage; A company must immediately accept payment and release the vehicle if offered in cash or by valid major credit card; Upon request, a company must disclose accepted forms of payment; A company must provide an itemized act showing each charge and the rate for each fee incurred as a result of an immobilization and any fee that caused the immobilization; and A company may not pay money or provide other valuable consideration for the privilege of immobilizing vehicles.

A company is prohibited from immobilizing a vehicle on private property unless:

The immobilization is ordered or authorized by a court order, an administrative order, or a peace officer or by operation of law; or The company has received permission for each individual immobilization, within the 24 hours immediately preceding the immobilization, from a specified person. The company must retain the permission for 3 years.

A property owner with tenants must give each tenant adequate notice of parking regulations as outlined in the act. A company may not immobilize a vehicle in a parking space or common parking area without the company or property owner giving 24 hours' written notice at least 24 hours before immobilizing the vehicle, unless the vehicle owner or operator has received a previous notice for parking inappropriately in the same manner. Standards are set for the notice.

The company or property owner need not give the notice if one of the following apply but must place a notice on the immobilized vehicle that contains the phone number of the company, the normal operating hours of the company, and the phone number to contact the company outside of normal operating hours if:

The vehicle is parked a second or subsequent time in the same inappropriate manner; The vehicle is parked in a designated and marked fire zone or is effectively obstructing a fire hydrant; The vehicle is inappropriately using reserved parking for people with disabilities; The immobilization is ordered or authorized by a court order, an administrative order, or a peace officer or by operation of law; The vehicle blocks a driveway or roadway enough to effectively obstruct a person's access to the driveway or roadway; The vehicle is parked in a designated, rented, or purchased parking space of a resident; or The vehicle is parked in a parking lot marked for the exclusive use of residents.

To immobilize a vehicle on private property normally used for parking, the following must be provided upon entering the private property:

Notice of the parking regulations; and Notice that a violation of the regulations subjects the vehicle to immobilization at the vehicle owner's expense.

Unless the immobilization is based on an order given by a peace officer, a company may not immobilize a vehicle on private property because the vehicle's registration has expired.

For a company to immobilize a vehicle, the property owner must have posted signage that meets the size, visibility, and placement standards of the act and contains the following information:

The restriction or prohibition on parking; The times of the day and days that the restriction is applicable, but, if the restriction applies 24 hours per day, 7 days per week, the sign must say "Authorized Parking Only"; Notice that violating the regulation subjects the violating vehicle to be immobilized at the vehicle owner's expense; and The name and telephone number of the company authorized to perform immobilization on the private property.

A company may not patrol or monitor property to enforce parking restrictions on behalf of a property owner. A company may not immobilize a vehicle because the vehicle is inoperable if the vehicle is owned by a resident and is parked in the resident's designated, rented, or purchased parking space or driveway or in a mobile home lot that is leased or owned by the resident.

If a company has immobilized a vehicle on private property, the company must give a written notice of the person's ability to make a complaint to the commission in accordance with the standards of the act.

A company must release a motor vehicle either within 120 minutes after being contacted outside the company's normal business hours or within 90 minutes during the company's normal business hours. A company must immediately release a vehicle without charge to a towing carrier when evidence is presented that the towing carrier has authorization to conduct a nonconsensual tow or law-enforcement-directed tow. A company must immediately release an immobilized vehicle if the person retrieving the vehicle pays $60 and the person signs a form affirming that the authorized or interested person owes the company payment for the appropriate fees. A company may remotely release an immobilization device from a vehicle. The company shall retrieve the immobilization device within 120 minutes after releasing it. The driver must move the immobilization device from the road so that it is not a hazard to vehicles or pedestrians unless the driver has a physical limitation that makes moving the device unreasonably difficult or impossible. The driver need not return the device to the company or a location specified by the company.

A company must charge a reduced release charge set by the commission and immediately release the vehicle if the vehicle is released after an employee of or agent of the company starts to immobilize the vehicle but before the agent or employee leaves the private property.

A company must retain evidence of giving the notices and disclosures required in the act for 3 years and provide the evidence to the commission or an enforcement official upon request.

Generally, the act does not apply to an immobilization that is:

Ordered by a peace officer or technician directed by a peace officer; In a parking space that serves a business if the parking space is on commercial real estate; Ordered by a municipality, county, or city and county; or On federally leased land used for commercial parking purposes.

A violation of the act is generally a deceptive trade practice and is subject to enforcement by the attorney general's office or a district attorney. (Note: This summary applies to this bill as enacted.)