Earlier editions: 2026-09
Title 5 — BUSINESS LICENSES AND REGULATIONS
Sacramento Municipal Code Ch. 5.144 Tow Cars
Sacramento Municipal Code · 2026-10 edition · updated 2026-10-04 · Sacramento
Cite as: Sacramento Municipal Code Chapter 5.144 · Text as of 2026-10-04
5.144.010 "Tow car" defined.¶
"Tow car" means any motor vehicle which has been altered or designed and equipped for, and used in the business of towing vehicles by means of a crane, hoist, tow bar, tow line or dolly, or any combination thereof. "Tow car" does not include an "auto dismantlers tow vehicle" as defined in Vehicle Code Subsection 615(c). (Prior code § 42.04.050)
5.144.020 Exemption.¶
A. This chapter shall not apply to tow car businesses or tow car drivers not having their principal place of business or employment within the city.
B. Any tow car operator or driver operating within the city who claims exemption pursuant to this section shall complete a declaration under penalty of perjury setting forth facts establishing his or her principal place of business or employment outside the city for evaluation by the director.
C. The director shall deny a claim of exemption only after a hearing granted upon three days' written notice to the claimant. Such notice shall specify the specific grounds for the proposed action. At the hearing, to be held by the city manager, or his or her designee, the claimant shall be given the opportunity to present witnesses and documentary evidence, to be represented by counsel and to examine all witnesses presented. The city manager shall mail or otherwise furnish to the claimant a written decision, stating the grounds for the decision.
D. Any claimant dissatisfied with the decision of the city manager regarding exemption from application of this chapter may appeal to the city council by filing a notice of appeal in writing with the city clerk within ten (10) days of the date of the written decision of the city manager. The city council, or a hearing examiner designated pursuant to Section 1.24.050 of this code, shall hold a hearing at which the appellant shall be accorded the same hearing rights provided in subsection C of this section. The city council or designated hearing examiner may sustain, reverse or modify the decision of the city manager. The decision of the city council or designated hearing officer shall be final. (Prior code § 42.04.051)
5.144.030 Permit required.¶
It is unlawful for any person having its principal place of business within the city to engage in the business of operating a tow car without first obtaining a tow car vehicular permit for each tow car as required by this chapter. (Prior code § 42.04.052)
5.144.040 Permit application.¶
Application for a tow car vehicular permit shall be filed with the director and shall contain the following:
A. The individual and business name, address, and telephone number of the permit applicant. The business address shall be an office where some person in charge can be contacted in person or by telephone weekdays from eight a.m. to five p.m.;
B. Written evidence that the applicant is an owner, lessee or holder of a similar interest in the tow car;
C. The name and address of all legal and registered owner(s) of the tow car, and each person with a financial interest in the business which operates the tow car;
D. The state vehicle license number of the tow car;
E. A city certificate of insurance, establishing compliance with Section 5.144.090 of this chapter;
F. A certificate of compliance or other writing, dated not more than six months preceding the application date, issued by a statecertified examiner or other examiner satisfactory to the director, evidencing that the tow car complies with prevailing state smog, lamp and brake equipment standards and all state requirements for tow cars;
G. The address of every site, whether within or outside the city, used for vehicle storage by the business or person operating the tow car;
H. A written schedule of all rates to be charged for tow car services;
I. For each person with a ten (10) percent or greater financial interest in the business which operates the tow car, a list, signed under penalty of perjury, of each conviction of such person and whether such conviction was by verdict, plea of guilty, or plea of nolo contendere. The list shall, for each such conviction, set forth the date of arrest, the offense charged, and the offense of which the person was convicted. A person who acquires a ten (10) percent or greater financial interest in the business which operates the tow car during the life of the permit issued pursuant to this chapter shall immediately so notify the director and comply with this subsection. Any holder of a valid tow car driver's permit issued pursuant to Section 5.144.150 of this chapter shall be exempt from the requirements of this subsection;
J. An annual nonprorateable, nonrefundable permit fee, as established by resolution of the city council;
K. Such other information as may be required by the director to further the purpose of this chapter. (Prior code § 42.04.053)
5.144.050 Permit issuance and denial.¶
A. A tow car vehicular permit shall be issued by the director upon receipt of a complete application, as specified in Section 5.144.040 of this chapter, and after the director has:
Physically inspected the tow car to ensure compliance with Sections 5.144.060 and 5.144.070 of this chapter; and
Physically inspected all vehicle storage locations as necessary to ensure compliance with applicable zoning regulations and other codes.
B. All tow car vehicular permits shall expire on September 30th of the calendar year following the date of issuance unless sooner revoked. Application for renewal shall be filed between August 1st, and August 31st, for the permit period beginning the succeeding October 1st.
C. A tow car vehicular permit shall authorize the operation of a single tow car and shall not be transferable to any other vehicle.
D. A tow car vehicular permit may be denied by the director on the following grounds:
The applicant knowingly made a false statement of fact required to be revealed in the permit application;
The information required by Section 5.144.040 of this chapter is false or incomplete;
A person with ten (10) percent or more financial interest in the operation of the tow car has been convicted of a crime, and the time for appeal has elapsed, or when an order granting probation is made suspending the imposition of sentence, irrespective of the entry of a subsequent order under Penal Code Section 1203.4; or has done any act involving dishonesty, fraud or deceit with intent to substantially benefit himself or herself, or another, or substantially injure another.
Provided, however, that the permit shall be denied upon any of the grounds specified in this subsection (D)(3) only if, in the opinion of the chief of police, contained in a recommendation to the director, the crime or act is substantially related to the qualifications, functions or duties of a tow car owner or owner of a business which operates tow cars. However, no person shall be denied a permit solely on the basis that he has been convicted of a felony if he has obtained a certificate of rehabilitation under State Penal Code Sections 4852.01, et seq., or that he or she has been convicted of a misdemeanor if he or she has met all applicable requirements of the criteria of rehabilitation developed to evaluate the rehabilitation of a person when considering the denial of a license under State Penal Code Section 482(a). (Prior code § 42.04.054)
5.144.060 Posting requirements.¶
A. There shall be carried in the tow car passenger compartment for viewing upon request of any person whose vehicle is being or may be towed by the tow car:
A copy of a valid permit issued pursuant to this chapter; and
A rate schedule substantively identical to the rate schedule filed pursuant to Section 5.144.040(H) of this chapter or amended pursuant to Section 5.144.080 of this chapter.
B. There shall be displayed on each exterior side of the tow car a sign showing the name of the company or the owner or operator of the tow cars. The sign shall also contain the business address and telephone number of the owner or driver. The letters of the sign shall be not less than two and one-half inches in height and the lettering shall be in contrast to the color of the background upon which they are placed. (Prior code § 42.04.055)
5.144.070 Radio dispatch service.¶
Every tow car shall be equipped with an operative two-way radio dispatch system approved by the F.C.C. for commercial use. (Prior code § 42.04.056)
5.144.080 Rate schedule amendment.¶
A written amended schedule of rates to be charged for the hire or services of the tow car may be filed with the director; provided, however, that a rate schedule may be amended no more frequently than once every three months. (Prior code § 42.04.057)
5.144.090 Liability insurance.¶
During the term of a permit issued pursuant to this chapter, the permittee or owner(s) of a tow car authorized by the permit shall maintain in full force and effect at no cost to the city a comprehensive auto and general liability insurance policy:
A. In an amount no less than five hundred thousand dollars ($500,000.00) single limit per occurrence; and
B. Issued by an admitted insurer or insurers as defined by the California Insurance Code; and
C. Providing that the city, its officers, employees and agents are to be named as additional insureds under the policy; and
D. Covering all losses and damages as specified in Section 5.144.100 of this chapter; and
E. Stipulating that the policy will operate as primary insurance and that no other insurance effected by the city or other named insured will be called on to contribute to a loss cover thereunder; and
F. Providing that no cancellation, change in coverage, or expiration by the insurance company or the insured shall occur during the term of the tow car vehicular permit, without thirty (30) days' written notice to the director prior to the effective date of such cancellation or change in coverage.
G. Notwithstanding any other provision of this section, an owner of any tow car operating under the provisions of this chapter may provide for a deposit and insurance applicable to such tow car provided the following conditions are met:
Such owner becomes approved as a depositor under the compulsory financial responsibility law of the state of California pursuant to Section 16020, et seq., of the Vehicle Vehicle Code. A certified copy of such acknowledgment of deposit shall be filed with the director; and
Such owner obtains a comprehensive liability insurance policy executed by an insurance company authorized to do business in the state of California by the insurance commissioner of the state of California or not less than five hundred thousand dollars ($500,000.00) single limit per occurrence, coverage to commence at the amount of said deposit. The city, its officers, agents and employees shall be named insureds, and said policy shall operate as primary insurance and no other insurance effected by the city, its officers, agents or employees, or other named insured shall be called upon to contribute to a loss covered thereunder. Said policy shall contain an endorsement that the insurance company issuing it will not allow the same to be cancelled for any purpose or changed for any purpose without serving thirty (30) days' notice of cancellation or change upon the director. Such service shall be by registered mail.
In the event of failure of any owner to obtain or maintain in effect such deposit or such insurance policy, the director shall order the cancellation of the permit as provided in this section. (Prior code § 42.04.058)
5.144.100 Indemnify and hold harmless.¶
The permittee and tow car owner(s) shall assume the defense of, and indemnify and hold harmless, the city, its officers, employees and agents from and against all actions, losses, damages, liability, costs and expenses of every type and description, including, but not limited to, attorney fees, to which any or all of them may be subjected by reason of, or resulting from, directly or indirectly, in whole or in part, the acts or omissions of the permittee or the permittee's agents, officers or employees, directly or indirectly arising from the operation of the tow car.
The foregoing is not intended to and shall not be construed to limit any responsibility or liability that the permittee may be subjected to under other laws. (Prior code § 42.04.059)
5.144.110 Procedure for permit denial, revocation or suspension.¶
A. Except as provided in Section 5.144.120(B) of this chapter, director may deny, revoke or suspend a tow car vehicular permit only after a hearing granted upon three days' written notice to those persons specified in Section 5.144.040(A) and (C) of this chapter. Such notice shall specify the grounds for the proposed action. At the hearing, to be held by the city manager, or his or her designee, the persons noticed pursuant to this section shall be given the opportunity to present witnesses and documentary evidence, to be represented by counsel and to examine all witnesses presented. Issuance of a written notice of cancellation, expiration or change in coverage by an insurance company shall be conclusive proof at the hearing of the change in the policy so indicated. The city manager, or his or her designee, shall mail or otherwise furnish to persons noticed pursuant to this section a written decision, stating the grounds for the decision. The taking or pendency of an appeal under subsection B of this section shall not stay the effectiveness of such decision.
B. If any person specified in Section 5.144.040(A) or (C) of this chapter is dissatisfied with the decision of the city manager in ordering the denial, revocation or suspension of the permit, such person may appeal to the city council by filing a notice of appeal in writing with the city clerk within ten (10) days of the date of the written decision of the city manager. The city council, or a hearing examiner designated pursuant to Section 1.24.050 of this code, shall hold a hearing within thirty (30) days of the receipt of the notice of appeal. The appellant shall be accorded the same hearing rights provided in subsection A of this section. The city council or designated hearing examiner may sustain, reverse or modify the decision of the city manager. The decision of the city council or designated hearing officer shall be final. (Prior code § 42.04.060)
5.144.120 Grounds for permit revocation or suspension.¶
A. A tow car vehicular permit issued pursuant to this chapter may be revoked or suspended for the following reasons:
Failure to comply with the requirements specified in Section 5.144.060 of 5.144.070 of this chapter; or
Violation of any state law relating to the towing of vehicles, whether or not the permittee has been charged with or convicted of such violations; or
The tow car or its equipment is in such condition that its operation violates the State Vehicle Code; or
Since the issuance of the permit, grounds for permit denial pursuant to Section 5.144.050 of this chapter have occurred; or
Transfer or sale of the permit to a vehicle other than that identified in the permit application; or
Any other failure to comply with the conditions for obtaining a permit or failure to comply with this chapter.
B. Upon written notice by an insurer of cancellation, expiration or change in insurance coverage resulting in noncompliance with Section 5.136.120 of this chapter, a permit issued pursuant to this chapter shall be automatically suspended effective upon the effective date of the change in coverage stated in the written notice by the insurer.
The suspension shall continue until the city receives written notice from the insurer indicating compliance with the requirements of Section 5.144.090 of this chapter or until the permit expires, as provided in Section 5.144.050(B) of this chapter. (Prior code § 42.04.061)
5.144.130 Tow car driver permit required.¶
No person with his or her principal place of employment within the city shall drive for compensation or offer to drive for compensation a tow car unless he or she holds a valid tow car driver permit issued pursuant to this chapter. (Prior code § 42.04.062)
5.144.140 Tow car driver permit procedure.¶
Applications for a tow car driver permit shall be filed with the director and shall contain the following:
A. The name and address of the applicant;
B. The number of a valid state driver license issued to the applicant, authorizing the applicant to drive a tow car, and date of license expiration;
C. A statement of whether the applicant's state driver license has ever been revoked or suspended and, if so, the reason(s) for such revocation or suspension;
D. A list of each conviction of the applicant, whether such conviction was by verdict, plea of guilty, or plea of nolo contendere. The list shall, for each such conviction, set forth the date of arrest, the offense charged, and the offense of which applicant was convicted;
E. A list of the applicant's physical or mental disabilities or incapacities. With respect to each such disability or incapacity, applicant shall state whether the same would interfere with the proper management and control of a motor vehicle;
F. A statement as to whether applicant is or ever has been addicted to the use of alcohol or any controlled substance as defined in the State Health and Safety Code;
G. A list of all prescription medication which applicant takes on a regular or episodic basis;
H. An annual nonprorateable permit fee, as established by resolution of the city council.
I. Such other information as may be required by the director to further the purpose of this chapter. (Prior code § 42.04.063)
5.144.150 Permit issuance.¶
A. A tow car driver permit shall be issued by the director:
Upon receipt of a complete application, as specified in Section 5.144.140 of this chapter; and
If no ground for permit denial or revocation exists, as specified in Section 5.144.160 or 5.144.170 of this chapter; and
After fingerprinting of the applicant by the police department, and submission of four recent dated portrait photographs, one to be attached to the application, one to be attached to the driver's permit if issued, and two for the use of the special investigation section of the police department.
B. All permits shall expire on September 30th, of the calendar year following the date of issuance unless sooner revoked. A permit shall not be transferable. Application for renewal shall be submitted between August 1st, and August 31st, for the year beginning the succeeding October 1st. (Prior code § 42.04.064)
5.144.160 Grounds for permit denial.¶
A tow car driver's permit may be denied by the director on the following grounds:
A. Failure to submit a complete application, as specified in Section 5.144.140 of this chapter;
B. Failure to submit fingerprinting and photographs, as required by Section 5.136.180(A)(3) of this title;
C. The applicant knowingly made a false statement of fact required to be revealed in the permit application;
D. The applicant has been convicted of a crime, and the time for appeal has elapsed, or when an order granting probation is made suspending the imposition of sentence, irrespective of the entry of a subsequent order under Penal Code Section 1203.4, or has done any act involving dishonesty, fraud or deceit with intent to substantially benefit himself or herself, or another, or substantially injure another; or has a physical or mental disability or incapacity, or takes medication, uses alcohol or any controlled substance as defined in the State Health and Safety Code.
Provided, however, that the permit shall be denied upon any of the grounds specified in this subsection D only if, in the opinion of the chief of police, contained in a recommendation to the director, the crime, act, disability, incapacity or impairment from a substance consumed is substantially related to the qualifications, functions or duties of a tow car driver. However, no person shall be denied a permit solely on the basis that he or she has been convicted of a felony if he or she has obtained a certificate of rehabilitation under State Penal Code Section 4852.01, et seq., or that he or she has been convicted of a misdemeanor if he or she has met all applicable requirements of the criteria of rehabilitation developed to evaluate the rehabilitation of a person when considering the denial of a license under State Penal Code Section 4852.01(a). (Prior code § 42.04.065)
5.144.170 Unlawful activities.¶
A. It is unlawful for any person to operate a tow car for compensation with knowledge that the tow car is not authorized by a valid permit or that grounds for revocation or suspension of said permit pursuant to Section 5.144.120 of this chapter exist.
B. It is unlawful for any tow car driver or person in the business of operating a tow car for compensation to do any of the following:
Charge an additional type of rate or higher rate other than those rates on the schedule required to be carried by Section 5.144.060(A)(2) of this section. Notwithstanding Sections 5.144.060 and 5.144.080 of this chapter, it is lawful to charge a rate less than those rates scheduled;
Refuse, upon request, to give a vehicle owner a written receipt showing the tow fee due and the miles towed; or
Fail to display a valid permit, issued pursuant to this chapter, and a list of fees as required by Section 5.144.060 of this chapter. (Prior code § 42.04.066)
5.144.180 Grounds for permit revocation or suspension.¶
A tow car driver's permit may be revoked or suspended by the director on any of the following grounds:
A. Violation of Section 5.144.170 of this chapter; or
B. If, since the issuance of the permit, grounds for permit denial pursuant to Section 5.144.160 of this chapter have occurred, or the applicant has been found by the director to have knowingly made a false statement of fact required to be revealed in the permit application; or
C. Transfer or sale of the permit to an individual other than the person specified on the permit application. (Prior code § 42.04.067)
5.144.190 Procedure for permit denial, revocation or suspension.¶
A. The director may deny, revoke or suspend a tow car driver's permit only after a hearing granted upon three days' written notice to the permittee. Such notice shall specify the specific grounds for the proposed action. At the hearing, to be held by the city manager, or his or her designee, the permittee shall be given the opportunity to present witnesses and documentary evidence, to be represented by counsel and to examine all witnesses presented. The city manager, or his or her designee, shall mail or otherwise furnish to the permittee a written decision, stating the grounds for the decision. The taking or pendency of an appeal under subsection B of this section shall not stay the effectiveness of such decision.
B. If the permittee is dissatisfied with the decision of the city manager in ordering the denial, revocation or suspension of the permit, such person may appeal to the city council by filing a notice of appeal in writing with the city clerk within ten (10) days of the date of the written decision of the city manager. The city council, or a hearing examiner designated pursuant to Section 1.24.050 of this code, shall hold a hearing within thirty (30) days of the receipt of the notice of appeal. The permittee shall be accorded the same hearing rights provided in subsection A of this section. The city council or designated hearing examiner may sustain, reverse or modify the decision of the city manager. The decision of the city council or designated hearing officer shall be final. (Prior code § 42.04.068)
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