Page 1
May 2, 2022 HB 22-1314
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 25, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0063
Rep. Ricks; Hooton
Sen. Gonzales; Sonnenberg
Date:
Bill Status:
Fiscal Analyst:
May 2, 2022
Senate Finance
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 $100,877 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill. This analysis is preliminary and
will be updated following further review and any additional information received.
Table 1
State Fiscal Impacts Under HB 22-1314
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund $100,877 $116,518
Centrally Appropriated $29,544 $37,350
Total Expenditures $130,421 $153,868
Total FTE 1.3 FTE 1.7 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $15,132 $17,478
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May 2, 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;
unless ordered by a peace officer, not tow vehicles due to expired vehicle registration; and
pay lienholders, car owners, and other interested persons the sum of any proceeds from sale of a
vehicle that is greater than the charges owed to the towing company.
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.
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May 2, 2022 HB 22-1314
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. It also
expands the task force’s annual reporting requirements to the General Assembly, requiring them to
include:
the recommendations made to the PUC about non-consensual towing rates charged to the public
the task force’s definition of a consensual and non-consensual tow;
information about the dollar amounts considered when setting the rates that towing companies
can charge for non-consensual tow;
the time taken to settle complaints made to the commission;
categories of complaints and the number of complaints in each category; and
a list of the towing companies that have been issued a permit, the number of valid complaints
against each company, and the action taken by the commission in response to each valid
complaint.
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. Page 4
May 2, 2022 HB 22-1314
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.
State Expenditures
The bill increases state expenditures in DORA by $130,421 in FY 2022-23 and $153,868 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 $77,383 $103,178
Operating Expenses $1,890 $2,295
Capital Outlay Costs $12,400 -
Vehicle Lease $5,733 $6,879
Vehicle Operating $3,472 $4,166
Centrally Appropriated Costs
1
$29,544 $37,350
Total Cost $130,421 $153,868
Total FTE 1.3 FTE 1.7 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 as well as a compliance specialist
to comply with new reporting requirements. It will also have increased workload from rulemaking
and providing additional support to the towing task force. The fiscal note assumes a September 1
start date, and first year costs reflect the General Fund pay date shift.
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. Page 5
May 2, 2022 HB 22-1314
Compliance specialist. DORA requires 0.7 FTE to analyze towing data for the towing task force,
including information considered for the setting of towing rates for non-consensual tows, the time
taken to settle towing complaints to the PUC, the number and categories of complaints, and
information about towing companies and complaints made against them. Standard operating and
capital outlay costs are included.
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.
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.
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May 2, 2022 HB 22-1314
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 $100,877 to Department of
Regulatory Agencies, with 1.3 FTE. Of this amount, $5,733 is reappropriated to the Department of
Personnel and Administration.
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.