Colorado's New Towing Law Against Predatory Towing

Colorado’s New Towing Law: What You Need to Know

Colorado has a new towing law for towing companies. It’s called House Bill 24-1051 (HB24-1051). The governor approved it on May 30, 2024, and it starts on August 7, 2024. This law changes many rules to make towing safer and fairer for everyone.

New Towing Law: Stricter Rules for Towing Companies

The law gives more power to the Colorado Public Utilities Commission (PUC). The PUC can now take away a towing company’s permit for several reasons. These reasons include:

• If the company has committed serious crimes in the last five years.
• In the case the company has not paid fines.
• If the PUC thinks the company should not have a permit.

The law also says if a company breaks the towing rules many times, it’s assumed they should not have a permit.

More Transparency and Reporting

Towing companies now have to give more information to the PUC. This information includes:

• Number of tows they do each year.
• Amount they charge for different types of tows.
• How many tow trucks they have.

This helps keep everything clear and honest.

New Rules for Nonconsensual Towing

Nonconsensual towing means towing a car without the owner’s permission. The new law makes it harder for towing companies to do this. They cannot patrol parking lots to enforce rules. They can only tow a car if they have a signed permission from the property owner within the last 24 hours. This permission cannot be automated or preapproved.

Clearer Signage and Notification

Signs about towing must now be easier to read. They need to have certain size letters and be in both English and Spanish. This helps everyone understand the rules better.

Better Rights for Vehicle Owners

Vehicle owners have more rights now. They can get their towed car back without paying all the fees right away. Towing companies cannot make the owner go through extra steps to get their car. Also, towing companies must keep towed cars safe.

Legal and Financial Impacts

If a towing company breaks these new rules, it’s a serious issue. They can be fined at least $10,000. The PUC will continue to oversee towing companies until at least September 1, 2030.

Funding for the New Law

To make these changes work, the state has set aside $165,629 for the 2024-25 fiscal year. This money will help the PUC enforce the new rules.

Looking Ahead

Colorado’s HB24-1051 aims to make towing fairer and safer. By making rules stricter and clearer, the state wants to protect both towing companies and vehicle owners.

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