Legislature(2009 - 2010)BELTZ 105 (TSBldg)
04/08/2010 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB225 | |
| HB24 | |
| HB251 | |
| HB225 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 225 | TELECONFERENCED | |
| + | HB 251 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 24 | ||
HB 251-VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
9:48:26 AM
CHAIR MENARD announced the next order of business to come before
the committee would be HB 251. [CSHB 251(JUD), 26-LS0786\S, was
before the committee.]
REPRESENTATIVE JAY RAMRAS, sponsor of HB 251, said the bill is
helpful to both tow truck operators and to consumers who have
had a vehicle impounded. A tow truck operator incurs a fee for
towing and storage of an impounded vehicle. The bank can then
recover the vehicle, leaving the tow truck company without a
means to recover their costs because they stand behind the lien
holder or lender. HB 251 also states that tow truck companies
must notify consumers that their vehicles have been impounded
within five days. Currently, up to 60 days elapse while the fees
add up, leaving the consumer stunned by the amount owed to the
impound yard.
Section 1 of HB 251 [amending AS 28.10.391(a)] is helpful to the
tow truck operators and Section 2 [amending AS 28.10.502(b)]
requires the tow truck company to notify the owner and lien
holder of the towing, transporting and storage of a vehicle by
certified letter. This is a consumer protection.
9:51:09 AM
CHAIR MENARD asked if other states have similar rules.
REPRESENTATIVE RAMRAS said he does not know. He noted that state
troopers or local municipalities will keep different tow truck
companies on a rotation index to call to an accident or DUI.
SENATOR KOOKESH said HB 251 looks clear and asked if any
objection exists.
REPRESENTATIVE RAMRAS replied that Representative Fairclough,
who previously served as the presiding officer of the Anchorage
municipal assembly, had consumers complain about fees that
accrue while a vehicle is in an impound yard. Some people do not
pay attention or cannot afford to get their vehicle out of the
impound yard. He told Representative Fairclough that HB 251 is
proactively improving existing statutes by requiring a certified
letter from the tow truck company within five days of the
impoundment.
DON HABBIGER, aide to Representative Ramras, clarified that five
days was changed to seven days in committee on the house side.
Tow truck companies sometimes have to go out of state to local
DMV's and five days was a bit tight.
SENATOR PASKVAN clarified that it is seven working days.
REPRESENTATIVE RAMRAS said Bill Satterberg, attorney, previously
testified and suggested that seven days, not including weekends,
amounts to about ten days.
9:55:34 AM
SENATOR FRENCH said some towing charges in Anchorage are
outrageous. While people who perform the work should get paid,
there could be an opportunity to address "predatory practices"
in the future.
REPRESENTATIVE RAMRAS said HB 251 focuses on notification so
that consumers know where their vehicles are and how long they
have been there. Tow truck operators will tell you they are
struggling as small businesses to make ends meet.
SENATOR PASKVAN asked how a consumer finds out what happened or
where an impounded car is. He asked how a proactive owner finds
out about his or her car.
9:58:39 AM
REPRESENTATIVE RAMRAS said he cannot answer that question. He
noted he would welcome a conceptual amendment to improve
consumer protection in that regard.
SHAWN HESS, S&S Towing and Recovery, Fairbanks, said he supports
HB 251. He noted that his company calls plate numbers in to
local law enforcement when the impound request did not come from
law enforcement. The owner can call the local police department
and find out which company has the vehicle.
10:01:04 AM
MARK DAVIS, owner, Interior Towing and Salvage Inc., said he has
to do many things when impounding a car not at the direction of
a police officer. HB 251 corrects a problem so that the towing
company can get paid; the lending institution cannot walk in and
take the car without paying any kind of a bill. He said he is in
full support of HB 251.
MARGARET RABY, Alaska Towing Association, said most members of
the Towing Association are in full support of HB 251. HB 251
fixes a problem whereby towers may perform their services
without getting paid. Most members also support the section
about notification because that does eliminate what could be
considered predatory towing. Legitimate towers want to make sure
that owners get their vehicles back.
SENATOR PASKVAN asked if the Alaska Towing Association has a
policy that plate numbers be called in upon towing.
MS. RABY said Alaska Towing Association does not set policy but
that practice is generally regulated by municipalities. Both
Anchorage and Fairbanks municipal code require any towing within
city limits to be called in. Most towers, and the state
troopers, consider it standard operating procedure though it is
not required. If a tower does not call in a plate, law
enforcement generally gets involved and suggests the tow was
illegal.
10:04:14 AM
SENATOR PASKVAN suggested that adopting a consumer-friendly
policy, such as providing notice promptly, would keep government
off the industry's back.
MS. RABY said the Alaska Towing Association is a fledgling
association and is growing to that point.
ELIZABETH GRISWOLD, owner, Gabe's Towing, said she and Mark
Davis brought this problem to the attention of Representative
Ramras to get the loophole in the statutes fixed. A credit union
found the loophole; they have the perfected lien over the
possessory lien. She summarized an incident in which the credit
union took possession of a vehicle without paying for the tow
bill. She noted that her company and others are on the towing
ordinance committee and must follow local ordinances and can be
audited at any time.
10:07:23 AM
She pointed out that Alaska does not have a stipulation that
some other states have: if a tow bill is not paid, it counts
against one's driver's license.
JEFF VANEYCH, Dirty Deeds Towing and Recovery, Fairbanks, said
he supports HB 251. He just wants to get paid for the work he
does. Once the bank comes in and takes the vehicle, he has no
way to recoup his costs.
10:08:46 AM
CHAIR MENARD closed public testimony.
SENATOR MEYER moved to report HB 251, from committee with
individual recommendations and accompanying fiscal notes.
CHAIR MENARD announced that without objection CSHB 251(JUD) moved
from Senate State Affairs Standing Committee.
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