Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0240.01 Jery Payne x2157 HOUSE BILL 24-1051 House Committees Senate Committees Transportation, Housing & Local Government A BILL FOR AN ACT C ONCERNING THE REGULATION OF BUSINESSES THAT OBTAIN A PERMIT101 FROM THE PUBLIC UTILITIES COMMISSION TO TOW MOTOR102 VEHICLES.103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) Transportation Legislation Review Committee. The bill requires a driver of tow trucks to undergo a fingerprint-based criminal history record check (check). If the check produces a criminal history that the public utilities commission (commission) determines is inappropriate to drive a tow truck, the driver will not be permitted to drive the tow HOUSE SPONSORSHIP Boesenecker and Mauro, SENATE SPONSORSHIP Cutter and Priola, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. truck. Current law authorizes the commission to deny or refuse to renew a towing carrier permit if: ! The towing carrier was convicted within the last 5 years of a felony or a towing-related offense or has failed to satisfy a civil penalty imposed by the commission; or ! The commission determines that it is not in the public interest for the towing carrier to hold a towing carrier permit. The bill: ! Authorizes the commission to suspend or revoke a permit for each of these specified violations; ! Authorizes the commission to suspend or revoke a permit if it is not in the public interest for the towing carrier to hold a towing permit; and ! Sets a rebuttable presumption that it is not in the public interest for a towing carrier to hold a permit if the towing carrier has violated the towing laws. The bill prohibits a member of the towing task force in the department of regulatory agencies, which advises the commission on towing matters, from voting on a matter that will financially benefit the member or if the member is the subject of a complaint about which the task force is advising the commission. Current law requires the commission to report certain towing issues and financial information to certain committees of the Senate and House of Representatives of the general assembly. The bill requires the commission to promulgate a rule to require towing carriers to provide: ! Any information needed to prepare the report; ! Audited financial statements; and ! Any other information required by the commission. The bill directs the commission to aggregate and anonymize the financial statements and make the aggregated and anonymized data publicly available. A towing carrier is forbidden from patrolling or monitoring property to enforce parking restrictions on behalf of the property owner. Currently, the owner of a motor vehicle pays to retrieve the motor vehicle when the vehicle has been nonconsensually towed from another person's property. The bill requires certain property owners to pay for the removal of the vehicle from their property and for any storage for the first 30 days. The towing carrier is required to notify the vehicle owner that the vehicle owner can retrieve the vehicle free of charge for the first 30 days. If a motor vehicle is nonconsensually towed in violation of the rights granted in state statute, the towing carrier must, within 48 hours after the determination of a statutory violation, return the vehicle to the HB24-1051 -2- place it was towed from. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 40-10.1-110, amend2 (1)(a) as follows:3 40-10.1-110. Record check - rules. (1) (a) An individual who4 wishes to drive: A taxicab for a motor carrier that is the holder of a5 certificate to provide taxicab service issued under part 2 of this article6 10.1; a motor vehicle for a motor carrier that is the holder of a permit to7 operate as a charter bus, children's activity bus, luxury limousine, or8 off-road scenic charter under part 3 of this article 10.1; A TOW TRUCK FOR9 A TOWING CARRIER THAT IS THE HOLDER OF A PERMIT ISSUED UNDER PART10 4 OF THIS ARTICLE 10.1; or a motor vehicle for a motor carrier that is the11 holder of a permit to operate as a large-market taxicab service under part12 7 of this article 10.1 must have the individual's fingerprints taken by a13 local law enforcement agency or any third party approved by the14 Colorado bureau of investigation for the purpose of obtaining a15 fingerprint-based criminal history record check.16 SECTION 2. In Colorado Revised Statutes, 40-10.1-401, amend17 (2) as follows:18 40-10.1-401. Permit requirements. (2) (a) (I) The commission19 may deny an application FOR or SUSPEND, REVOKE, OR refuse to renew a20 permit under this part 4 of a person who THAT has, within the21 immediately preceding five years, been convicted of, or pled guilty or22 nolo contendere to, a felony or a towing-related offense. The commission23 may also deny an application under this part 4 or SUSPEND, REVOKE, OR24 refuse to renew the permit of a towing carrier based upon a determination25 HB24-1051-3- that the towing carrier or any of its owners, principals, officers, members,1 partners, or directors has not satisfied a civil penalty arising out of any AN2 administrative or enforcement action brought by the commission.3 (II) A TOWING CARRIER THAT APPLIES FOR A PERMIT OR THAT4 APPLIES TO RENEW A PERMIT SHALL DISCLOSE TO THE COMMISSION EACH5 PERSON THAT:6 (A) O WNS MORE THAN FIFTEEN PERCENT OF THE TOWING CARRIER ;7 (B) I S A PRINCIPAL OF, AN OFFICER OF, OR A DIRECTOR OF THE8 TOWING CARRIER; OR9 (C) I S A MEMBER OR PARTNER OF THE TOWING CARRIER .10 (b) The commission may deny an application FOR or SUSPEND,11 REVOKE, OR refuse to renew a permit of a towing carrier under this part12 4 based on a determination that there is good cause to believe the 13 issuance of or renewal of the permit IT is not in the public interest FOR14 THE TOWING CARRIER TO POSSESS A PERMIT. The determination is subject15 to appeal in accordance with commission rules. I T IS REBUTTABLY16 PRESUMED THAT A TOWING CARRIER 'S POSSESSION OF A PERMIT IS NOT IN17 THE PUBLIC INTEREST IF:18 (I) T HE TOWING CARRIER HAS WILLFULLY VIOLATED THIS ARTICLE19 10.1 OR PART 18 OR 21 OF ARTICLE 4 OF TITLE 42; OR20 (II) T HE TOWING CARRIER HAS FAILED TO COMPLY WITH THIS21 ARTICLE 10.1 OR PART 18 OR 21 OF ARTICLE 4 OF TITLE 42. 22 SECTION 3. In Colorado Revised Statutes, 40-10.1-403, amend23 (4)(d)(II); and add (3.5), (4)(e), and (4)(f) as follows:24 40-10.1-403. Towing task force - creation - conflict of interest25 - rules - report - repeal. (3.5) (a) A MEMBER SHALL NOTIFY THE TASK26 FORCE AND ABSTAIN FROM VOTING IF:27 HB24-1051 -4- (I) THE MEMBER WILL FINANCIALLY BENEFIT FROM , OR HAS A1 FINANCIAL INTEREST IN A PERSON THAT WILL BENEFIT FROM , A RATE2 SETTING RECOMMENDATION MADE BY THE TASK FORCE ; OR3 (II) T HE TASK FORCE IS ADVISING THE COMMISSION ABOUT A4 COMPLAINT, AND THE MEMBER IS THE SUBJECT OF THE COMPLAINT OR HAS5 A FINANCIAL INTEREST IN A PERSON THAT IS THE SUBJECT OF THE6 COMPLAINT.7 (b) A MEMBER DOES NOT HAVE A CONFLICT OF INTEREST IF THE8 MEMBER BENEFITS MERELY FROM BELONGING TO A CLASS THAT IS9 AFFECTED BY THE RATE SETTING DESCRIBED IN SUBSECTION (2.2)(a)(I) OF10 THIS SECTION.11 (4) (d) (II) This subsection (4)(d) is repealed, effective July 1, 12 2026 SEPTEMBER 1, 2025.13 (e) (I) B Y FEBRUARY 7, 2025, THE COMMISSION SHALL14 PROMULGATE RULES REQUIRING EACH TOWING CARRIER TO PROVIDE THE15 FOLLOWING AS A CONDITION OF PERMIT ISSUANCE OR RENEWAL ON OR16 AFTER A DATE SPECIFIED IN THE RULES:17 (A) A NY INFORMATION NEEDED TO PREPARE THE REPORT18 REQUIRED BY SUBSECTION (4)(d)(I) OF THIS SECTION; AND19 (B) A UDITED FINANCIAL STATEMENTS FOR ONE OR MORE YEARS ,20 AS DETERMINED BY THE COMMISSION .21 (II) T HE COMMISSION SHALL AGGREGATE AND ANONYMIZE THE22 FINANCIAL STATEMENTS OBTAINED IN ACCORDANCE WITH SUBSECTION23 (4)(e)(I)(B) OF THIS SECTION AND MAKE THE AGGREGATED AND24 ANONYMIZED DATA PUBLICLY AVAILABLE .25 (f) T HE COMMISSION MAY PROMULGATE RULES TO COLLECT OTHER26 INFORMATION REQUIRED AS PART OF THE TOWING CARRIER PERMITTING27 HB24-1051 -5- PROCESS. THE INFORMATION REQUIRED BY RULE MAY INCLUDE THE1 ANNUAL VOLUME OF TOWS BY CATEGORY , CURRENT PRICING PER2 CATEGORY OF TOW FOR ALL FEES CHARGED FOR CONSENSUAL AND3 NONCONSENSUAL TOWS , AND THE NUMBER OF TOW TRUCKS EACH TOW4 CARRIER OPERATES.5 SECTION 4. In Colorado Revised Statutes, 40-10.1-405, amend6 (4)(b)(II), (4)(f)(I)(A), (4)(f)(I)(B), (5)(b), (5)(c) introductory portion,7 and (8); and add (3)(d), (4)(f)(I)(C), and (4)(h) as follows:8 40-10.1-405. Nonconsensual tows - rights of owners,9 operators, and lienholders - rules. (3) Authorization and notice10 required for tows from private property. (d) A TOWING CARRIER11 SHALL NOT PATROL OR MONITOR PROPERTY TO ENFORCE PARKING12 RESTRICTIONS ON BEHALF OF THE PROPERTY OWNER .13 (4) Notice, disclosures, and signs. (b) A towing carrier shall14 maintain a clearly visible sign at the entrance to the storage facility15 holding a nonconsensually towed vehicle. The sign must:16 (II) State: "If a vehicle is nonconsensually towed from private17 property, the owner may retrieve the contents of the vehicle OR THE18 VEHICLE WITHIN THE FIRST THIRTY DAYS even if the owner does not pay19 the towing carrier's fees. If the owner fills out the appropriate form, the20 owner may retrieve the vehicle after paying a reduced fee, but the owner21 still owes the towing carrier the balance of those fees ACCRUED AFTER22 THE FIRST THIRTY DAYS."23 (f) (I) A towing carrier shall not perform a nonconsensual tow of24 a vehicle, other than an abandoned motor vehicle as defined in section25 42-4-2102 (1), from private property normally used for parking unless:26 (A) Notice of the parking regulations was provided to the vehicle27 HB24-1051 -6- operator when the vehicle entered the private property and parked; and1 (B) Notice that any vehicle parked in violation of the regulations2 is subject to tow at the vehicle owner's expense was provided to the3 vehicle operator when the vehicle entered the private property and4 parked; AND5 (C) T HE TOWING CARRIER HAS A CONTRACT WITH THE PROPERTY6 OWNER REQUIRING THE PROPERTY OWNER TO PAY ALL FEES FOR THE7 NONCONSENSUAL TOW , ALL FEES FOR THE REQUIRED NOTIFICATIONS, AND8 ALL STORAGE FEES FOR THE FIRST THIRTY DAYS THE VEHICLE IS STORED9 AS A RESULT OF THE NONCONSENSUAL TOW .10 (h) T HE TOWING CARRIER SHALL , IMMEDIATELY UPON BEING11 CONTACTED BY AN AUTHORIZED OR INTERESTED PERSON ABOUT A12 NONCONSENSUALLY TOWED VEHICLE , NOTIFY THE AUTHORIZED OR13 INTERESTED PERSON THAT THE VEHICLE MAY BE RETRIEVED WITHOUT14 CHARGE WITHIN THE FIRST THIRTY DAYS AND THEREAFTER FOR A15 REDUCED FEE. THE TOWING CARRIER SHALL NOT REQUIRE THE PERSON TO16 UNDERGO AN APPROVAL PROCESS OTHER THAN SIGNING THE FORM17 CREATED PURSUANT TO SUBSECTION (5)(d) OF THIS SECTION.18 (5) No mechanic's liens on contents. (b) If an authorized or19 interested person requests that a towing carrier return the contents of a20 vehicle that was towed without consent within thirty days after the21 postmarked date the notice was mailed in accordance with section22 42-4-2103 (4) or the date the operator received notice that no record23 exists for the motor vehicle, the towing carrier shall immediately retrieve 24 or allow the authorized or interested person to retrieve the vehicle's25 contents. This subsection (5)(b) does not apply to the contents of a26 vehicle if the contents of the vehicle are subject to a hold order issued by27 HB24-1051 -7- a court, district attorney, law enforcement agency, or peace officer.1 (c) The towing carrier shall immediately retrieve a vehicle that2 has been nonconsensually towed or allow the owner to retrieve the3 vehicle WITHIN THE FIRST THIRTY DAYS FOLLOWING THE TOW . THE4 TOWING CARRIER SHALL IMMEDIATELY RETRIEVE A VEHICLE THAT HAS5 BEEN NONCONSENSUALLY TOWED OR ALLOW THE OWNER TO RETRIEVE6 THE VEHICLE AFTER THE FIRST THIRTY DAYS FOLLOWING A TOW if:7 (8) Towing carrier responsibility. (a) For a nonconsensual tow,8 the towing carrier is responsible for the security and safety of the towed9 vehicle until it is released to an authorized or interested person.10 (b) W ITHIN FORTY-EIGHT HOURS AFTER A NONCONSENSUAL TOW11 IS DETERMINED TO HAVE BEEN PERFORMED IN VIOLATION OF THIS12 SECTION, THE TOWING CARRIER SHALL RETURN AN IMPROPERLY TOWED13 VEHICLE BACK TO THE LOCATION FROM WHERE IT WAS TOWED UNLESS THE14 AUTHORIZED OR INTERESTED PERSON NOTIFIES THE TOWING CARRIER15 THAT THE PERSON PREFERS TO RETRIEVE THE VEHICLE FROM THE TOW16 CARRIER'S IMPOUND LOT WITHOUT CHARGE .17 SECTION 5. In Colorado Revised Statutes, 42-4-2105, amend18 (1)(b)(II) as follows:19 42-4-2105. Liens upon towed motor vehicles. (1) (b) The lien20 granted in subsection (1)(a) of this section attaches to the motor vehicle21 in accordance with the following schedule:22 (II) If the operator recovered, removed, or stored the motor23 vehicle upon instructions of the owner or lessee of real property upon24 which a motor vehicle was illegally parked or abandoned or upon the25 owner's or lessee's agent authorized in writing, the lien attaches to the26 motor vehicle thirty SIXTY days after the postmarked date the notice was27 HB24-1051 -8- mailed in accordance with section 42-4-2103 (4) or the date the operator1 received notice that no record exists for the motor vehicle.2 SECTION 6. Act subject to petition - effective date -3 applicability. (1) This act takes effect at 12:01 a.m. on the day following4 the expiration of the ninety-day period after final adjournment of the5 general assembly; except that, if a referendum petition is filed pursuant6 to section 1 (3) of article V of the state constitution against this act or an7 item, section, or part of this act within such period, then the act, item,8 section, or part will not take effect unless approved by the people at the9 general election to be held in November 2024 and, in such case, will take10 effect on the date of the official declaration of the vote thereon by the11 governor.12 (2) This act applies to acts committed on or after the applicable13 effective date of this act.14 HB24-1051 -9-