SB 1040 Summary

• Establishes regulation of private property trespass towers (towing companies that remove vehicles from private property without owner permission) under Arizona Revised Statutes Title 28, Chapter 11, Article 4, effective through June 30, 2023.

• Requires private property trespass towers to register with the Department of Public Safety, obtain a $100,000 surety bond, obtain a permit, maintain insurance coverage (including $1 million business auto liability and $50,000 garage keepers liability), and maintain detailed records of all towed vehicles for three years.

• Prohibits towing without written authorization from property owners, requires notification to law enforcement within 20 minutes of towing, limits transport distance to 20 miles, prohibits covert observation without warning signs or verbal warnings, and allows vehicle owners to reclaim vehicles without paying fees if they arrive before towing is complete.

• Authorizes the Department of Public Safety to set maximum rates for towing and storage services beginning July 1, 2014, conduct hearings for violations, and impose civil penalties up to $5,000; violations are classified as Class 3 misdemeanors.

• Allows counties and cities to enact more restrictive towing ordinances and exempts towing performed pursuant to law enforcement orders from these regulations.