OLR Bill Analysis

SB 509

AN ACT CONCERNING THE TOWING OF REPOSSESSED CARS, AND NOTICES REQUIRED FOR TOW ZONES.

SUMMARY:

This bill expressly permits a lending institution to repossess a vehicle by contracting with a licensed wrecker to tow it. Lending institutions that do so must, among other things, provide to the buyer adequate notice of their intent to repossess the vehicle in accordance with the law (CGS 36a-785).

The bill applies provisions related to towing unauthorized vehicles from private property to those repossessed by towing. Specifically, it:

1. allows repossessed vehicles to be released to the lending institution according to the law;

2. prohibits a wrecker that repossesses a vehicle from paying a lending institution for the privilege of towing the vehicle; and

3. prohibits the wrecker from charging a storage fee for the repossessed vehicle until it has notified the police in accordance with the bill.

Under the bill, the local police department does not have to enter a repossessed vehicle's identification number into certain databases to determine if it was stolen, which existing law requires for other towed vehicles.

Under current law, the local police department must be notified immediately if a vehicle is repossessed, by towing or otherwise, without the buyer's knowledge. The bill instead specifies that the local police department must be notified within two hours of the repossession.

Under current law, a vehicle may be towed from a state parking lot if it violates the Department of Administrative Services' state parking lot policies and procedures. The bill only allows for the vehicle to be towed in such situations if there is signage posted that gives adequate notice of such towing. It also gives municipalities the authority to require that adequate signage be placed in any area where a vehicle could be subject to towing.

EFFECTIVE DATE: October 1, 2015

COMMITTEE ACTION

Transportation Committee

Joint Favorable

Yea

28

Nay

3

(03/18/2015)