Earlier editions: 2026-09
Title 5 — BUSINESS LICENSES GENERALLY
Morgan Hill Municipal Code Ch. 5.52 Tow Car Services
Morgan Hill Municipal Code · 2026-10 edition · updated 2026-10-04 · Morgan Hill
Cite as: Morgan Hill Municipal Code Chapter 5.52 · Text as of 2026-10-04
Footnotes:
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Note— Prior ordinance history: Ords. 504 N.S. and 766 N.S.
5.52.010 - Definitions.¶
For the purpose of this chapter, the following definitions apply:
A. "Tow car service" means any person engaged in the business of, or offering the services of a vehicle towing service whereby motor vehicles are or may be towed or otherwise removed from one place to another by use of a motor vehicle adapted to and assigned for that purpose.
B. "Rotation tow program" means a program established and maintained by the chief of police, or designee, containing the names of tow car services authorized by the city to respond to requests for police-generated tows. Tow car services that participate in this program will be summoned by the police department on a rotational basis and comply with program standards to ensure an adequate level of service to the community. This program shall contain a list of tow car services that have entered into a franchise agreement to provide police generated or owner requested tow services with the city. An operator, while participating in the rotation tow program, shall act and be an independent contractor and not an agent or employee of the City of Morgan Hill. The rotation tow program shall have a minimum of two tow car services, to include at least one each, of the following:
A tow car service authorized by the American Automobile Association to provide road service to members.
A tow service not authorized by the American Automobile Association.
A tow car service capable of towing heavy or large trucks or trailers of other vehicles.
C. "Police-generated tow" means any tow requested by the city of Morgan Hill Police Department in the course of official police activities including, but not limited to, the tow of a vehicle that is subject to impound under the Vehicle Code, driven by a driver who is arrested, detained, incapacitated or physically unable to drive the vehicle, involved in a traffic collision or accident, or abandoned and subject to towing under the Vehicle Code or the Morgan Hill Municipal Code.
(Ord. 1316 N.S. § 1 (part), 1997)
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009; Ord. No. 2276 N.S., § 13, 5-2-2018)
5.52.020 - Tow service operation.¶
No tow car service may participate in the rotation tow program unless they comply with all applicable federal, state and local laws governing the operation of such business and equipment, possess a state board of equalization license required by the California Revenue and Taxation Code, and possess a city of Morgan Hill business license. All participants in the rotation tow program must comply with all the requirements of their franchise agreement with the city pursuant to Section 5.52.070.
(Ord. 1316 N.S. § 1 (part), 1997)
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009)
5.52.030 - Authorized responses.¶
No tow car service shall respond to the scene of a collision or emergency for the purpose of towing motor vehicles unless called there by the police department, one of the parties involved in the collision or his or her authorized agent.
(Ord. 1316 N.S. § 1 (part), 1997)
5.52.040 - Rotation tow program—Rules and application.¶
The chief of police may make such rules and regulations for participation in the rotation tow program as deemed necessary to implement this chapter and to provide adequate service to the public. These rules and regulations shall meet or exceed current California Highway Patrol standards including but not limited to state certificate and insurance requirements, equipment, response time, storage yards, hours of operations and performance standards.
A. Nothing in these rules and regulations shall cause the city to incur any costs arising from the lawful towing of a vehicle or abatement of abandoned vehicles by a tow company participating in the rotation tow program.
B. Tow services are eligible to respond to city requests for participation in the rotation tow program only if they meet the qualifications for operation listed in Sections 5.52.020 and 5.52.070 of this chapter, operate a place of business within twenty miles of the city limits, and maintain a tow truck and a storage yard within five miles of the city limits for all vehicles towed at the request of the city of Morgan Hill.
(Ord. 1316 N.S. § 1 (part), 1997)
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009)
5.52.050 - Towing list—Investigation.¶
A. Within thirty days of receiving an application for participation in the rotation tow program, the chief of police or his designee shall cause an investigation to be conducted to determine the suitability of the applicant. The findings of the investigation shall be provided to the chief of police within thirty days of assignment. If the chief of police finds the applicant qualified, the name may be added to the towing list if there is a vacancy or need for additional towing service as deemed by the chief of police. If the current towing list is adequate, the applicant will be placed on the reserve list. If the chief of police finds that the applicant is not qualified, the applicant shall be given the reasons for disqualification in writing.
B. Tow services shall annually renew their participation in the rotation tow program, including knowledge of and compliance with any newly revised rule or regulation established by the chief of police. Tow services currently on the towing list, as well as reserve list, shall maintain their positions on those lists regardless of date of renewal, absent the showing of cause to remove a tow car service from the aforementioned lists.
(Ord. 1316 N.S. § 1 (part), 1997)
5.52.060 - Rotation tow program—Grounds for removal.¶
A tow car service may be removed from the rotation tow program by the chief of police, or designee, if it is determined that:
A. The approval of the application was obtained by fraud or by concealment of a material fact or facts which, if known, would have caused the disqualification of the applicant.
B. The tow car service has violated any of the requirements of this chapter or any subsequent rule and regulation established pursuant hereto.
C. The tow car service is found to have failed to pay agreed upon fees or reimbursements though fraud or by concealment of a material fact or facts.
D. The services rendered or the cooperation which the city has received are unsatisfactory and/or inadequate as a matter of public safety.
E. Any violation of the terms of the franchise agreement with the city.
F. Repeated violations of the franchise agreement when other sanctions have failed to deter the violations.
(Ord. 1316 N.S. § 1 (part), 1997)
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009)
5.52.070 - Franchise for rotation tow program.¶
A. Each application for franchise shall contain the following information:
(1) The name, address and telephone number of the applicant. If the applicant is a partnership, the name, address and telephone numbers of each partner. If the applicant is a corporation, the application shall also state the names, addresses and telephone numbers of its directors, main officers, major stock holders and associates and the names, addresses and telephone numbers of any parent or subsidiary company.
(2) A complete and executed copy of the latest Morgan Hill franchise agreement for vehicle tow services.
(3) The city may at any time demand, and the applicant shall provide, supplementary, additional or other information as the city may deem reasonably necessary to determine whether the requested franchise should be granted.
B. The city in its sole discretion may grant or deny such franchise, or limit the number of tow car services in the rotation tow program, if it deems such action to be in the public interest. In making its decision, the city may consider whether the applicant is qualified to render prompt and efficient police-generated tow service, the quality of service, ease of administration, the compliance with past agreements with the city, financial condition, experience and any other considerations that will safeguard the city's public interest. Any grant of franchise shall be subject to such terms, conditions, rules, regulations, restrictions, limitations, governmental or contractual in nature as the city may deem advisable to protect citizens or to promote the efficient conduct of official police business, to preserve the rights and interests of the city in its streets and public places and to otherwise protect the interest of the city and its people.
C. The city shall require, as a condition for a grant of franchise, the payment of franchise fees or other reimbursement. Such franchise fees or reimbursement options shall be in addition to other applicable taxes, fees and charges, if any, payable by tow operators.
(Ord. 1316 N.S. § 1 (part), 1997)
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009)
5.52.080 - Rights of city reserved.¶
A. The grant of every franchise shall be subject to the right of the city, whether reserved in such grant or not, to make all regulations which shall be necessary to secure, in the best manner, the safety, welfare and accommodation of the public, including the right to make and enforce all such regulations as shall be reasonably necessary to secure adequate, sufficient and proper public service.
B. Every franchise granted shall be subject to the right of the city, whether reserved therein or not, to prescribe and regulate the rates, fares, rentals or charges made for the service rendered under such franchise; to require such reports, accounts or special information about its affairs to be furnished, as the council may prescribe or deem necessary or convenient, for the purpose of fixing such rates, fares, rental or charges, or for any other lawful purpose, to be made in such form and verified by such persons as the council shall prescribe, to have full and free access, at any and all reasonable times, to all books, records and papers of such franchise holder with the right to examining the same and privilege of taking copies of the same or any part thereof.
C. Every franchise granted shall be subject to the rights of the city, whether reserved or not to provide for the termination or forfeiture thereof for any breach or failure to comply with any of the terms, limitations or conditions thereof; or the terms, limitations or conditions of the franchise agreement executed by city and franchisee and in all such cases, the city shall have the power to declare the termination and forfeiture of any such franchise or privilege the same as though in each instance such power was expressly reserved.
(Ord. No. 1964 N.S., § 1, 11-18-2009; Ord. No. 1965 N.S., § 1, 12-2-2009)
Editor's note— Ord. No. 1964 N.S., § 1, adopted Nov. 18, 2009, renumbered the former § 5.52.080 as § 5.52.090 and enacted a new § 5.52.080 as set out herein. The historical notation has been retained with the amended provisions for reference purposes.
5.52.090 - Violation.¶
It is unlawful for any person to violate any provision of this chapter.
(Ord. No. 2276 N.S., § 13, 5-2-2018)
Editor's note— Ord. No. 2276 N.S., § 13, adopted May 2, 2018, amended § 5.52.090 in its entirety to read as herein set out. Former § 5.52.090 pertained to violation—penalty and derived from Ord. 1316 N.S., § 1(part), adopted in 1997; Ord. No. 1964 N.S., § 1, adopted Nov. 18, 2009; and Ord. No. 1965 N.S., § 1, adopted Dec. 2, 2009.
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