Lynwood, CA Business Licensing & Operations: Towing Companies (2026)

Chapter 7-23 of the Lynwood Municipal Code governs city referral towing, meaning any tow ordered by a sheriff's department member or designated city employee. The city council designates a single exclusive tow service provider by resolution, or, as an alternative under § 7-23.2, authorizes more than one tow company to take referrals, provided each company's principal place of business sits inside the City of Lynwood. Authorized providers pay the city a percentage of gross receipts tied to referral business, set by council resolution, plus a penalty for late payment (§ 7-23.4), and must keep separate, auditable accounting records (§ 7-23.5).

Equipment must meet California Vehicle Code tow-car standards, handle everything from motorcycles to heavy trucks, carry adequate cable winches, and stay radio-equipped at all times (§ 7-23.7). Section 7-23.8 requires providers to answer every sheriff's department or city call and respond within 15 minutes, 24 hours a day including weekends and holidays, on pain of permit suspension or revocation. Storage yards need 6-foot fencing, adequate nighttime lighting, and 24-hour staffing with an attendant reachable within 15 minutes (§ 7-23.9), and providers must carry liability insurance naming the city as an additional insured (§ 7-23.10).

Providers must log every referral call for 24 months (§ 7-23.13), cannot release a vehicle to its owner until the sheriff's department or city clears it (§ 7-23.14), and cannot display signage suggesting they are the city's official tow service without the city manager's written permission (§ 7-23.17). The city council may grant, deny, suspend, or revoke a tow permit at its discretion if a provider is not fit to run a city referral service (§ 7-23.19), and violating any subsection is unlawful and subject to civil penalties (§ 7-23.20).