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DENVER, CO – The House advanced legislation today on a preliminary vote to crack down on predatory towing, improve industry transparency, and ramp up consumer protections.
“Leveling the playing field amongst towing companies and everyday Coloradans is essential, and that begins with dismantling financial incentives for towing companies,” said Rep. Andrew Boesenecker, D-Fort Collins. “While the Towing Bill of Rights laid a strong foundation to protect vehicle owners, we’re doing more to improve transparency within the towing industry and prohibiting predatory towing companies from patrolling parking lots to look for vehicles to profit on. Today, we’re putting consumers first by requiring property owners to authorize residential non-consensual tows, outlining more guardrails for towing carries and making sure vehicles towed illegally are returned to the owner within 48 hours at no cost. ”
“Imagine waking up to find, through no fault of your own, that your vehicle has been towed – this is an unfortunate reality for many in our state,” said Rep. Tisha Mauro, D-Pueblo. “Our legislation works to break down financial incentives for predatory towing practices, specifically patrolling parking lots, and drastically improves consumer protections. Under this bill, if a vehicle is illegally towed, the towing company would have to make it right by returning the vehicle within 48 hours at no cost to the owner. To ensure we’re leveling the playing field between Coloradans and towing companies, this bill also outlines new rules for towing carriers to create a better state for us all.”
HB24-1051 would improve oversight, transparency and fairness in the towing industry in Colorado. Specifically, this bill would direct the Public Utilities Commission (PUC) to promulgate new rules for towing carriers, including requiring carriers to disclose additional information necessary for effective oversight and meaningful reporting. It would also end the practice of towing carriers patrolling, monitoring or policing properties to enforce parking restrictions on behalf of property owners.
Importantly, HB24-1051 changes the incentive structure for towing companies by requiring the property owner to authorize non-consensual tows. Unauthorized vehicles would still be towed at the expense of the vehicle owner.
Another portion of the bill aims to ramp up consumer protections by requiring companies to return a wrongfully towed vehicle to the original location within 48 hours and at no charge to the vehicle owner, and improving parking lot signage to explain towing regulations clearly in both English and Spanish. The bill would also make it a deceptive trade practice to conduct a non-consensual tow in violation of the law.
In an effort to improve long-term transparency in the towing industry, HB24-1051 would allow the PUC to suspend or revoke a towing carrier permit in certain circumstances and the bill would address conflicts of interest for members of the Towing Task Force.