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April 25, 2022 HB 22-1314
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 4, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0063
Rep. Ricks; Hooton
Sen. Gonzales; Sonnenberg
Date:
Bill Status:
Fiscal Analyst:
April 25, 2022
House Appropriations
Will Clark | 303-866-4720
Will.Clark@state.co.us
Bill Topic: TOWING CARRIER NONCONSENSUAL TOWS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill expands consumer towing protections. It will increase state expenditures on
an ongoing basis, and may increase local expenditures in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $68,826 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the House Business
Affairs and Labor Committee.
Table 1
State Fiscal Impacts Under HB 22-1314
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund $68,826 $82,185
Centrally Appropriated $19,246 $24,086
Total Expenditures $88,072 $106,271
Total FTE 0.8 FTE 1.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $10,324 $12,328
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April 25, 2022 HB 22-1314
Summary of Legislation
The bill updates state towing requirements, notification procedures, and lien processes, and grants
the Public Utilities Commission (PUC) in the Department of Regulatory Agencies (DORA) additional
authority to promulgate rules related to non-consensual towing and to deny permit applications or
permit renewals of towing carriers who commit towing-related offenses or act against the public
interest.
Towing companies. This bill modifies towing company notification requirements to law
enforcement, the Department of Revenue, and the owners or lienholders of a vehicle. It also
establishes new responsibilities for vehicle towing companies and storage facilities, including that
companies:
prominently display maximum allowable rates that may be charged for towing services, as
permitted by the PUC, at the company’s place of business and on their website;
provide adequate lighting and signage in storage facilities, maintain safety and security of towed
vehicles, and provide evidence of insurance upon request;
only charge for storage when it is provided, not charge for storage before providing notification
to interested parties, and give owners or lienholders an itemized bill upon request;
photographically document vehicle condition and reason for a tow before towing, record and
retain information of non-consensual tows for three years, and provide these records upon
request;
upon demand of the vehicle's owner, retrieve the contents of a towed vehicle or allow the owner
to retrieve the vehicle without payment after the owner signs a form affirming they owe the
towing company payment;
except under certain circumstances, obtain authorization from the property owner, leaseholder,
or common interest community and give notice to a vehicle owner 24 hours before removing a
vehicle from private property;
release a vehicle that has been hooked up but not towed from the property if approached by an
authorized or interested person; and
unless ordered by a peace officer, not tow vehicles due to expired vehicle registration.
Private property owners. Private property owners must provide written notice of parking policies to
tenants and ensure that adequate signage of parking regulations is maintained on their property.
Towing carriers are prohibited from acting as an agent for a property owner.
Vehicle owners. Individuals who have had their vehicles towed non-consensually may seek and
recover damages from a towing company if their vehicle is towed in violation of these regulations.
The bill also exempts attached accessories and equipment, and the contents of a vehicle from towing
carrier liens, and exempts vehicles from liens for 30 days after notice is provided to a vehicle owner,
if the vehicle was towed non-consensually. If a carrier damages a vehicle or violates these provisions
in a manner that causes damages and refuses to reimburse the owner or lienholder, the owner may
recover attorney fees. The bill also establishes a deceptive trade practice for violations of this act, and
provides the Attorney General with authority to address violations.
Towing task force recommendations. The bill requires the towing task force to analyze and make
recommendations to the PUC about non-consensual towing rates charged to the public. The PUC
must include these recommendations in its annual reporting to the General Assembly. Page 3
April 25, 2022 HB 22-1314
Background and Assumptions
Towing regulation and investigations. The PUC currently regulates Colorado’s 732 towing
companies regarding towing rates, scope of operations, insurance, safety, compliance and complaints.
The PUC employs 6 investigators who investigate around 400 towing complaints each year on
average. The fiscal note assumes these investigations will increase by roughly 15 percent starting in
FY 2022-23, an increase of around 60 per year, as a result of new towing regulations and requirements.
Taking possession of abandoned vehicles. Upon towing an abandoned vehicle, towing carriers are
required to perform both a Colorado motor vehicle records search and a national records search.
Towing carriers may take possession of an abandoned vehicle and sell the vehicle if it is not recovered,
after meeting certain reporting, notification and appraisal requirements, and using forms provided by
the Department of Motor Vehicles (DMV) in the Department of Revenue.
Comparable Crime Analysis
Legislative Council Staff is required to include certain information in the fiscal note for any bill that
creates a new crime, changes the classification of an existing crime, or creates a new factual basis for
an existing crime. This section outlines data on crimes comparable to the offense in this bill and
discusses assumptions on future rates of criminal conviction for those offense.
Prior conviction data and assumptions. This bill creates a new factual basis for the existing offense
of violating motor vehicle carrier rules and regulations, a class 2 misdemeanor, by expanding the rules
and requirements for towing carriers concerning non-consensual tows. From FY 2018-19 to
FY 2020-21, one offender has been sentenced and convicted for this offense. Demographically, the
offender was white male. Though convictions could increase because of the lower burden required
to prove a violation and the expanded type of behaviors that must be reported, the fiscal note assumes
there will continue to be minimal or no additional criminal case filings or convictions for this offense
under the bill. Because the bill is not expected to have a tangible impact on criminal justice-related
revenue or expenditures at the state or local levels, these potential impacts are not discussed further
in this fiscal note.
Visit leg.colorado.gov/fiscalnotes for more information about criminal justice costs in fiscal notes.
State Revenue
To the extent the bill increases civil case filings, state revenue will increase beginning in FY 2022-23.
The bill creates additional violations of motor carrier rules and regulations, which may increase cases
heard in trial courts. Given existing administrative remedies under DORA to regulate towing
companies and resolve complaints and the historic availability of alternative causes of action against
towing companies, the fiscal note assumes that the increase in civil filing fees will be minimal. This
fee revenue is subject to TABOR.
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April 25, 2022 HB 22-1314
State Expenditures
The bill increases state expenditures in DORA by $88,072 in FY 2022-23 and $106,271 in FY 2023-24
from the General Fund. It will also increase workload for several other state agencies. Expenditures
are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 22-1314
FY 2022-23 FY 2023-24
Department of Regulatory Agencies
Personal Services $52,342 $69,790
Operating Expenses $1,080 $1,350
Capital Outlay Costs $6,200 -
Vehicle Lease $5,733 $6,879
Vehicle Operating $3,472 $4,166
Centrally Appropriated Costs
1
$19,246 $24,086
Total Cost $88,072 $106,271
Total FTE 0.8 FTE 1.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Regulatory Agencies. DORA requires a complaint investigator to investigate
additional towing complaints from expanded towing requirements and will have increased workload
from rulemaking and to support the towing task force.
Complaint investigator. DORA requires 1.0 FTE to investigate complaints against towing
companies, respond to questions, and provide enforcement. The new investigator will require a
vehicle, with lease costs reappropriated to the Department of Personnel and Administration.
Standard operating and capital outlay costs are included, along with leasing and operating costs
for one vehicle. The fiscal note assumes a September 1 start date, and first year costs reflect the
General Fund pay date shift.
Rulemaking. Workload will increase for PUC staff to adopt new rules, create a towing company
release form, and make other administrative changes as required by the bill. This increase in
workload can be accomplished within existing legal services appropriations.
Judicial Department. Workload may increase in the trial courts for any civil actions brought under
the bill. The fiscal note assumes that increase to trial court workload will be minimal and absorbable
using existing resources. However, if there is a significant increase in case filings as a result of the bill,
the Judicial Department will seek additional resources through the annual budget process.
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April 25, 2022 HB 22-1314
Department of Law. Violations of new requirements under the bill are considered deceptive trade
practices, which allows the Attorney General to investigate and prosecute as appropriate. Violations
will be addressed within the department's consumer protection resources, and no change in
appropriations is required.
Department of Revenue. The bill requires DMV administrative changes and updates to rules, forms,
manuals, and websites upon the effective date of this bill. Training will also be provided to authorized
agents, Vehicle Services Section staff, law enforcement, and other entities affected by this bill. No
appropriation is required.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by the
amounts shown in Table 1 above, which will decrease the amount of General Fund available for other
purposes.
Local Government
Local governments may have costs to update requirements related to towing carrier notifications,
particularly for local law enforcement agencies. Similar to the Department of Law, district attorneys
may have increased workload to prosecute the deceptive trade practice.
Technical Note
The bill provides no authority to the PUC to increase fees to support administrative costs; therefore,
the fiscal note indicates a General Fund requirement.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State Appropriations
For FY 2022-23, the bill requires a General Fund appropriation of $68,826 to Department of Regulatory
Agencies, with 1.0 FTE. Of this amount, $5,733 is reappropriated to the Department of Personnel and
Administration. Page 6
April 25, 2022 HB 22-1314
State and Local Government Contacts
Counties Information Technology Judicial
Law Local Affairs Municipalities
Personnel Public Safety Regulatory Agencies
Revenue Sheriffs Transportation
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.