Legal loophole surrounding Colorado’s shoe industry is being closed

On the afternoon of January 31, Prisila Peña parked briefly in front of her Aurora mobile home to unload goods from the store.

Minutes later, however, she saw someone from a parking management company place a trunk on one of her car’s wheels, immobilizing the vehicle.

It took her an hour and $160 to remove the wheel clamp – all because she parked in front of her own house without a permit.

“It’s frustrating, but it makes me feel like I don’t have the freedom to do what I need to do,” Peña said.

Proponents say that the use of parking boots, that were invented in Denver, has become more popular since Colorado lawmakers passed the state’s Towing Bill of Rights in 2022 to better regulate the industry. Booting up is easier and cheaper than towing, they say, and there are fewer regulations involved.

But regulators are running into a problem: The state’s boot statute, as currently written, contains a major loophole that excludes certain types of vehicle immobilization devices.

Current law defines booting as a “wheel immobilization device (placed) on a motor vehicle for the purpose of prohibiting operation of the motor vehicle.” Booting up often occurs when someone collects unpaid parking fines, but can also be used in lieu of towing for permit violations and other parking violations.

However, private towing and booting companies have been able to get around this narrow definition by using devices that immobilize a vehicle’s axles or drivetrains, as opposed to the wheels.

As a result, the Colorado Public Utilities Commission – which regulates towing and booting in the state – recognizes that it has no jurisdiction over companies that use these devices.

“The definition is too specific, so people can work around it somewhat depending on the device used to immobilize,” said Katie O’Donnell, a PUC spokesperson.

It is not clear how many companies use these alternative boots.

A PUC spokesperson in 2021 told Denver7 that Park It Right, a Denver towing and boating company, operates a suitcase that falls into a “legal loophole” because it does not immobilize the steering wheel. That means it is not covered by state statute, Terry Bote, the spokesman, told the TV station.

A representative for Park It Right did not respond to JS’s requests for comment. The company has a F rating about the Better Business Bureau.

“People complain about our company more because we embarrass them by putting their car out of place,” the company wrote repeatedly in response to vehicle owner complaints on the BBB site.

According to department figures, the PUC received 31 startup complaints between July 2022 and June 2023. Six of these – or 19% – were considered unregulated complaints that could not be decided.

Rules codified in 2019 require startup companies in Colorado to obtain a permit from the Public Utilities Commission. They must also adhere to the maximum cost of $160 per boot deletion and be available to unlock the device within two hours.

It is not clear whether companies using these unregulated boots must comply with these laws. Be that as it may, the PUC would not be able to hear complaints about this because they would fall outside the commission’s jurisdiction.

PUC officials are aware of this loophole and plan to close it this summer by expanding the startup definition, O’Donnell said. That process, which includes public comments and stakeholder engagement, will take about six months.