Colorado 2024 Regular Session

Colorado House Bill HB1051 Latest Draft

Bill / Enrolled Version Filed 05/16/2024

                            HOUSE BILL 24-1051
BY REPRESENTATIVE(S) Boesenecker and Mauro, Amabile, Brown,
Clifford, Epps, Froelich, Hernandez, Herod, Kipp, Lindsay, Lindstedt,
Mabrey, Marvin, McCormick, Ortiz, Parenti, Ricks, Rutinel, Valdez,
Velasco, Vigil, Willford;
also SENATOR(S) Gonzales and Priola, Bridges, Buckner, Cutter, Exum,
Fields, Gardner, Hinrichsen, Jaquez Lewis, Kolker, Michaelson Jenet,
Mullica, Smallwood, Sullivan, Winter F., Fenberg.
C
ONCERNING THE REGULATION OF BUSINESSES THAT OBTAIN A PERMIT FROM
THE PUBLIC UTILITIES COMMISSION TO TOW MOTOR VEHICLES
, AND,
IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 40-10.1-401, amend
(2) as follows:
40-10.1-401.  Permit requirements - rules. (2) (a) (I)  The
commission may deny an application 
FOR or SUSPEND, REVOKE, OR refuse
to renew a permit under this part 4 of a person who
 THAT has, within the
immediately preceding five years, been convicted of, or pled guilty or nolo
contendere to, a felony or a towing-related offense. The commission may
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. also deny an application under this part 4 or SUSPEND, REVOKE, OR refuse
to renew the permit of a towing carrier based upon a determination that the
towing carrier or any of its owners, principals, officers, members, partners,
or directors has not satisfied a civil penalty arising out of any
 AN
administrative or enforcement action brought by the commission.
(II)  A
 TOWING CARRIER THAT APPLIES FOR A PERMIT OR THAT
APPLIES TO RENEW A PERMIT SHALL DISCLOSE TO THE COMMISSION EACH
PERSON THAT IS IDENTIFIED AS A PRINCIPAL IN ACCORDANCE WITH RULES
PROMULGATED BY THE COMMISSION
.
(b)  The commission may deny an application 
FOR or SUSPEND,
REVOKE, OR refuse to renew a permit of a towing carrier under this part 4
based on a determination that there is good cause to believe the issuance of
or renewal of the permit IT is not in the public interest FOR THE TOWING
CARRIER TO POSSESS A PERMIT
. The determination is subject to appeal in
accordance with commission rules. I
T IS REBUTTABLY PRESUMED THAT A
TOWING CARRIER
'S POSSESSION OF A PERMIT IS NOT IN THE PUBLIC INTEREST
IF THE TOWING CARRIER HAS WILLFULLY AND REPEATEDLY FAILED TO
COMPLY WITH THIS ARTICLE 
10.1 OR PART 18 OR 21 OF ARTICLE 4 OF TITLE
42.
SECTION 2. In Colorado Revised Statutes, 40-10.1-403, amend
(4)(d)(II); and add (3.5), (4)(e), and (4)(f) as follows:
40-10.1-403.  Towing task force - creation - conflict of interest -
rules - report - repeal. (3.5) (a)  A
 MEMBER SHALL NOTIFY THE TASK FORCE
AND ABSTAIN FROM VOTING IF
:
(I)  T
HE MEMBER WILL FINANCIALLY BENEFIT FROM , OR HAS A
FINANCIAL INTEREST IN A PERSON THAT WILL BENEFIT FROM
, A
RATE
-SETTING RECOMMENDATION MADE BY THE TASK FORCE ; OR
(II)  THE TASK FORCE IS ADVISING THE COMMISSION ABOUT A
COMPLAINT
, AND THE MEMBER IS THE SUBJECT OF THE COMPLAINT OR HAS
A FINANCIAL INTEREST IN A PERSON THAT IS THE SUBJECT OF THE
COMPLAINT
.
(b)  A
 MEMBER DOES NOT HAVE A CONFLICT OF INTEREST IF THE
MEMBER BENEFITS MERELY FROM BELONGING TO A CLASS THAT IS AFFECTED
PAGE 2-HOUSE BILL 24-1051 BY THE RATE SETTING DESCRIBED IN SUBSECTION (3.5)(a)(I) OF THIS
SECTION
.
(4) (d) (II)  This subsection (4)(d) is repealed, effective July 1, 2026SEPTEMBER 1, 2026.
(e)  B
Y SEPTEMBER 1, 2025, THE COMMISSION SHALL PROMULGATE
RULES REQUIRING EACH TOWING CARRIER TO PROVIDE
, AS A CONDITION OF
PERMIT ISSUANCE OR RENEWAL ON OR AFTER A DATE SPECIFIED IN THE
RULES
, ANY INFORMATION NEEDED TO PREPARE THE REPORT REQUIRED BY
SUBSECTION
 (4)(d)(I) OF THIS SECTION.
(f)  T
HE COMMISSION MAY PROMULGATE RULES TO COLLECT OTHER
INFORMATION REQUIRED AS PART OF THE TOWING CARRIER PERMITTING
PROCESS
. THE INFORMATION REQUIRED BY RULE MAY INCLUDE THE ANNUAL
VOLUME OF TOWS BY CATEGORY
, THE CURRENT PRICING PER CATEGORY OF
TOW FOR ALL FEES CHARGED
, AND THE NUMBER OF TOW TRUCKS EACH
TOWING CARRIER OPERATES
.
SECTION 3. In Colorado Revised Statutes, 40-10.1-405, amend
(3)(a)(IV) introductory portion, (3)(a)(IV)(A), (3)(a)(IV)(C), (3)(b)(I)(H),
(3)(c), (4)(b)(II), (5)(b), (5)(c) introductory portion, and (5)(d) introductory
portion; repeal (4)(f)(III), (8), and (9)(b)(I); and add (3)(a)(V), (3)(d),
(3)(e), and (5)(e) as follows:
40-10.1-405.  Nonconsensual tows - rights of owners, operators,
and lienholders - rules. (3)  Authorization, signs, and notice required
for tows from private property. (a)  A towing carrier shall not
nonconsensually tow a vehicle from private property unless:
(IV)  The towing carrier has received 
DOCUMENTED permission, to
WHICH MUST NOT BE AUTOMATED OR PREAPPROVED , FOR EACH INDIVIDUAL
tow OF the vehicle, within the twenty-four hours immediately preceding the
tow, from 
THE FOLLOWING PERSON THAT MUST DOCUMENT THE PERMISSION
BY SIGNING THE FORM CREATED IN ACCORDANCE WITH SUBSECTION
 (3)(d)(I)
OF THIS SECTION:
(A)  The owner of or leaseholder of the private property; 
EXCEPT
THAT
, IF THE OWNER OR LEASEHOLDER WOULD EARN INCOME FROM THE
NONCONSENSUAL TOW
, THE TOWING CARRIER SHALL NOT PERFORM THE
PAGE 3-HOUSE BILL 24-1051 NONCONSENSUAL TOW BUT MAY AUTHORIZE ANOTHER TOWING CARRIER TO
PERFORM THE NONCONSENSUAL TOW
;
(C)  An agent
 EMPLOYEE of a person described in subsection
(3)(a)(IV)(A) or (3)(a)(IV)(B) of this section 
OR AN EMPLOYEE OF A
PROPERTY MANAGEMENT COMPANY RETAINED TO COLLECT RENT AND
PERFORM RESIDENTIAL SERVICES
; except that the towing carrier does notqualify as an agent with authority to grant permission under this subsection
(3)(a). EMPLOYEE WHO HAS A FINANCIAL INTEREST IN OR RELATIONSHIP
WITH THE TOWING CARRIER OR A PARKING LOT MANAGEMENT COMPANY
THAT EARNS INCOME FROM MANAGING OR CONTROLLING PARKING OR
PERMISSION TO PARK OR THAT EARNS INCOME FROM NONCONSENSUAL TOWS
SHALL NOT GRANT PERMISSION TO AUTHORIZE THE TOW
; OR
(V)  THE TOWING CARRIER HAS RECEIVED PERMISSION FOR EACH
INDIVIDUAL TOW
.
(b) (I)  Except as provided in subsection (3)(b)(IV) of this section,
a towing carrier shall not nonconsensually tow a vehicle from a parking
space or common parking area without the towing carrier or property owner
giving the vehicle owner or operator twenty-four hours' written notice,
unless:
(H)  The vehicle is parked without displaying valid
 authorization in
a parking lot marked for the exclusive use of residents 
OR INVITED GUESTS.
(c)  In order for a towing carrier to conduct a nonconsensual tow,
under subsection (3)(b)(I)(G) or (3)(b)(I)(H) of this section,
 the property
owner must have posted signage visible and facing the driver at each
entryway into a parking area indicating that parking spaces are designated
for one or more specified residents and that a vehicle parked without
authorization is subject to being towed. The sign must also contain the
international towing symbol no smaller than four inches by four inches and
be permanently mounted in a position that is no lower than five feet and no
higher than eight feet. THAT:
(I)  I
S NOT LESS THAN TWO SQUARE FEET IN SIZE;
(II)  H
AS LETTERING NOT LESS THAN ONE INCH IN HEIGHT ;
PAGE 4-HOUSE BILL 24-1051 (III)  HAS LETTERING THAT CONTRASTS SHARPLY IN COLOR WITH THE
BACKGROUND ON WHICH TH E LETTERS ARE PLACED AND CONTRASTS
SHARPLY WITH THE STRUCTURE THE SIGNS ARE PLACED ON
;
(IV)  C
ONTAINS THE FOLLOWING INFORMATION IN THE ORDER LISTED
BELOW
:
(A)  T
HE RESTRICTION OR PROHIBITION ON PARKING ;
(B)  T
HE TIMES OF THE DAY AND DAYS THAT THE RESTRICTION IS
APPLICABLE
, BUT, IF THE RESTRICTION APPLIES TWENTY-FOUR HOURS A DAY,
SEVEN DAYS A WEEK, THE SIGN MUST SAY "AUTHORIZED PARKING ONLY";
AND
(C)  THE NAME AND TELEPHONE NUMBER OF THE TOWING CARRIER
AUTHORIZED TO PERFORM TOWS FROM THE PRIVATE PROPERTY
;
(V)  I
S PRINTED IN ENGLISH AND SPANISH;
(VI)  I
S PERMANENTLY MOUNTED BOTH :
(A)  A
T THE ENTRANCE TO THE PRIVATE PROPERTY SO THAT THE SIGN
FACES OUTWARD TOWARD THE STREET AND IS VISIBLE BEFORE AND UPON
ENTERING THE PRIVATE PROPERTY
; AND
(B)  INSIDE THE PRIVATE PROPERTY SO THAT THE SIGN FACES
OUTWARD TOWARD THE PARKING AREA
;
(VII)  I
S NOT OBSTRUCTED FROM VIEW OR PLACED IN A MANNER THAT
PREVENTS DIRECT VISIBILITY
; AND
(VIII)  IS NOT PLACED HIGHER THAN TEN FEET OR LOWER T HAN THREE
FEET FROM THE SURFACE CLOSEST TO THE SIGN
'S PLACEMENT.
(d) (I)  T
HE COMMISSION SHALL CREATE A FORM THAT IMPLEMENTS
SUBSECTION
 (3)(a)(IV) OF THIS SECTION.
(II)  T
HE TOWING CARRIER MUST RETAIN FOR THREE YEARS THE
SIGNED FORM REQUIRED BY SUBSECTION
 (3)(a)(IV) OF THIS SECTION AND,
UPON REQUEST, PROVIDE THE SIGNED FORM TO THE VEHICLE OWNER .
PAGE 5-HOUSE BILL 24-1051 (e)  A TOWING CARRIER SHALL NOT PATROL OR MONITOR PROPERTY
TO ENFORCE PARKING RESTRICTIONS ON BEHALF OF THE PROPERTY OWNER
.
(4)  Notice, disclosures, and towing carrier signs. (b)  A towing
carrier shall maintain a clearly visible sign at the entrance to the storage
facility holding a nonconsensually towed vehicle. The sign must:
(II)  State: "If a vehicle is nonconsensually towed from private
property, the owner
 AUTHORIZED OR INTERESTED PERSON may retrieve the
contents of the vehicle even if the owner AUTHORIZED OR INTERESTED
PERSON
 does not pay the towing carrier's fees. If the owner
 AUTHORIZED OR
INTERESTED PERSON
 fills out the appropriate form, the owner
 AUTHORIZED
OR INTERESTED PERSON
 may retrieve the vehicle after paying a reduced fee,
but the owner
 AUTHORIZED OR INTERESTED PERSON still owes the towing
carrier the balance of those fees."
(f) (III)  A towing carrier that enters into an agreement with a
property owner to nonconsensually tow vehicles from the property shall
post signs that:
(A)  Are no less than one square foot in size;
(B)  Have lettering not less than one inch in height;
(C)  Have lettering that contrasts with the background on which the
letters are placed;
(D)  State: "Authorized Parking Only";
(E)  Include the name and telephone number of the towing carrier
authorized to perform tows from the private property;
(F)  Are printed in English;
(G)  Are placed at the entrance to the private property, face outward
toward the street, and are visible prior to entering and upon entering the
private property;
(H)  Are placed inside the area used for parking, face toward the
parking spaces, and, if the private property is not provided for residential
PAGE 6-HOUSE BILL 24-1051 parking and has more than ten freestanding lampposts on the property, are
posted on each lamppost or posted upright near each lamppost;
(I)  Are not obstructed or placed in such a manner that prevents
visibility; and
(J)  Are not placed higher than eight feet or lower than three feet
from the ground surface closest to the sign's placement.
(5)  No mechanic's liens on contents. (b)  If an authorized or
interested person requests that a towing carrier return the contents of a
vehicle that was towed without consent within thirty days after the
postmarked date the notice was mailed in accordance with section
42-4-2103 (4) or the date the operator received notice that no record exists
for the motor vehicle, the towing carrier shall immediately retrieve or
 allow
the authorized or interested person to retrieve the vehicle's contents. This
subsection (5)(b) does not apply to the contents of a vehicle if the contents
of the vehicle are subject to a hold order issued by a court, district attorney,
law enforcement agency, or peace officer.
(c)  The towing carrier shall immediately retrieve a vehicle that has
been nonconsensually towed or allow the owner
 AUTHORIZED OR
INTERESTED PERSON
 to retrieve the vehicle if:
(d)  For an authorized or interested person to retrieve a vehicle
without paying the towing carrier the total amount owed to the towing
carrier, the authorized or interested person must sign a form affirming that
the authorized or interested person owes the towing carrier payment for fees
that comply with this article 10.1, part 21 of article 4 of title 42, or article
20 of title 38. Knowingly providing false information on the form is
unlawful. Signing this form does not prohibit a vehicle owner from filing
a complaint with the commission or pursuing other remedies. The towing
carrier may use the form to take reasonable actions to collect the debt,
including initiating a court action or using a collection agency. The
department
 COMMISSION shall:
(e)  A
 TOWING CARRIER SHALL NOT REQUIRE A PERSON TO UNDERGO
AN APPROVAL PROCESS OTHER THAN SIGNING THE FORM CREATED PURS UANT
TO SUBSECTION
 (5)(d) OF THIS SECTION.
PAGE 7-HOUSE BILL 24-1051 (8)  Towing carrier responsibility. For a nonconsensual tow, the
towing carrier is responsible for the security and safety of the towed vehicle
until it is released to an authorized or interested person.
(9)  Applicability. This section does not apply to:
(b)  A tow from a parking space that serves a business if:
(I)  The parking space is not in a common parking area; and
SECTION 4. In Colorado Revised Statutes, 40-10.1-406, add (1)(c)
as follows:
40-10.1-406.  Failure to comply. (1)  No fees - return of vehicle.
(c)  W
ITHIN FORTY-EIGHT HOURS AFTER A TOW IS DETERMINED TO HAVE
BEEN PERFORMED IN VIOLATION OF THIS ARTICLE 
10.1 OR ANY RULES
PROMULGATED UNDER THIS ARTICLE 
10.1, THE TOWING CARRIER SHALL
RETURN THE VEHICLE BACK TO THE LOCATION FROM WHERE IT WAS TOWED
UNLESS
:
(I)  T
HE AUTHORIZED OR INTERESTED PERSON NOTIFIES THE TOWING
CARRIER THAT THE PERSON PREFERS TO RETRIEVE THE VEHICLE FROM THE
TOWING CARRIER
'S STORAGE FACILITY WITHOUT CHARGE ; OR
(II)  RETURNING THE VEHICLE TO THE LOCATION FROM WHERE THE
VEHICLE WAS TOWED IS NOT PRACTICAL
, AS DETERMINED BY THE
COMMISSION
.
SECTION 5. In Colorado Revised Statutes, 40-10.1-409, amend
(2) as follows:
40-10.1-409.  Violators subject to penalties. (2)  A violation of this
part 4 is a deceptive trade practice under section 6-1-105 (1)(ttt) 
AND
(1)(eeee) and is subject to enforcement by the attorney general's office in
addition to the OR A DISTRICT ATTORNEY OR enforcement AS described in
this section.
SECTION 6. In Colorado Revised Statutes, add 40-10.1-411 as
follows:
PAGE 8-HOUSE BILL 24-1051 40-10.1-411.  Towing carrier responsibility. T	HE TOWING CARRIER
IS RESPONSIBLE FOR THE SECURITY AND SAFETY OF THE TOWED VEHICLE
UNTIL THE VEHICLE IS RELEASED TO AN AUTHORIZED OR INTERESTED
PERSON
.
SECTION 7. In Colorado Revised Statutes, 6-1-105, add (1)(eeee)
as follows:
6-1-105.  Unfair or deceptive trade practices. (1)  A person
engages in a deceptive trade practice when, in the course of the person's
business, vocation, or occupation, the person:
(eeee)  I
S A TOWING CARRIER AND CONDUCTS A NONCONSENSUAL
TOW IN VIOLATION OF SECTION 
40-10.1-405.
SECTION 8. In Colorado Revised Statutes, 40-10.1-404, amend
(1) as follows:
40-10.1-404.  Repeal of part - subject to review. (1)  This part 4 is
repealed, effective September 1, 2025
 2030. Before the repeal, this part 4
is scheduled for review in accordance with section 24-34-104 and
subsection (2) of this section.
SECTION 9. In Colorado Revised Statutes, 24-34-104, repeal
(26)(a)(XIII); and add (31)(a)(XIII) as follows:
24-34-104.  General assembly review of regulatory agencies and
functions for repeal, continuation, or reestablishment - legislative
declaration - repeal. (26) (a)  The following agencies, functions, or both,
are scheduled for repeal on September 1, 2025:
(XIII)  The public utilities commission's regulation of towing carriers
under part 4 of article 10.1 of title 40.
(31) (a)  The following agencies, functions, or both, are scheduled
for repeal on September 1, 2030:
(XIII)  T
HE REGULATION OF TOWING CARRIERS BY THE PUBLIC
UTILITIES COMMISSION UNDER PART 
4 OF ARTICLE 10.1 OF TITLE 40.
PAGE 9-HOUSE BILL 24-1051 SECTION 10. In Colorado Revised Statutes, 40-10.1-116, amend
(3) as follows:
40-10.1-116.  Commission to notify local authorities - procedure.
(3) (a)  A person injured by the noncompliance of a motor carrier with this
article ARTICLE 10.1 or any other provision of law or an order, decision,
rule, direction, or requirement of the commission may apply to a court of
competent jurisdiction for the enforcement thereof, and the court has
jurisdiction to enforce obedience thereto by injunction or other proper
process, mandatory or otherwise, and to restrain the motor carrier and its
officers, agents, employees, or representatives from further disobedience
thereof, or to enjoin upon them obedience to the same, and any person so
injured has cause of action in damages and is privileged to pursue the usual
and proper remedies as in any other case.
(b)  S
UBSECTION (3)(a) OF THIS SECTION CREATES AN INDEPENDENT
CAUSE OF ACTION
, WHICH IS NOT SUBJECT TO ADMINISTRATIVE EXHAUSTION ,
AGAINST A TOWING CARRIER THAT VIOLATED THIS ARTICLE 10.1 OR ANY
OTHER PROVISION OF LAW OR AN ORDER
, DECISION, RULE, DIRECTION, OR
REQUIREMENT OF THE COMMISSION
.
SECTION 11. Appropriation. (1)  For the 2024-25 state fiscal
year, $165,629 is appropriated to the department of regulatory agencies.
This appropriation is from the public utilities commission motor carrier
fund created in section 40-2-110.5 (6), C.R.S. To implement this act, the
department may use this appropriation as follows:
(a)  $42,973 for use by the public utilities commission for personal
services, which amount is based on an assumption that the commission will
require an additional 0.6 FTE;
(b)  $7,438 for use by the public utilities commission for operating
expenses; and
(c)  $115,218 for the purchase of legal services.
(2)  For the 2024-25 state fiscal year, $115,218 is appropriated to the
department of law. This appropriation is from reappropriated funds received
from the department of regulatory agencies under subsection (1)(c) of this
section and is based on an assumption that the department of law will
PAGE 10-HOUSE BILL 24-1051 require an additional 0.5 FTE. To implement this act, the department of law
may use this appropriation to provide legal services for the department of
regulatory agencies.
SECTION 12. Act subject to petition - effective date -
applicability. (1)  This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
the date of the official declaration of the vote thereon by the governor.
PAGE 11-HOUSE BILL 24-1051 (2)  This act applies to acts committed on or after the applicable
effective date of this act.
____________________________ ____________________________
Julie McCluskie	Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________  ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 12-HOUSE BILL 24-1051