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

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing chapter
Modesto Code § 3-10.01 to § 3-10.02
Franchise approval
City Council ordinance, per § 11-2.07
Application deposit
$500 minimum, § 11-2.03
Maximum fixed term
20 years, § 11-2.12
Misdemeanor penalty
Up to $1,000 fine, 1 year jail
Infraction penalty
Up to $500 fine

Summary

Modesto treats non-consensual vehicle towing as a public utility. Nobody may run a non-consensual tow business in the city without a franchise agreement approved by the City Council and signed by the City Manager, under Modesto Code of Ordinances Chapter 10 of Title 3.

The Council finds that non-consensual towing, defined as towing of vehicles in circumstances not requiring their owners' consent, is a public utility within the meaning of Title 11, Chapter 2, of this Code. ... It shall be unlawful for any person to engage in the business of non-consensual towing within the City, unless such person is an employee or agent of the City, or is a party (or the agent or employee of a party) to an agreement approved by the Council pursuant to this ordinance.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 71).

Full Breakdown

01 declares that non-consensual towing, defined as towing a vehicle in circumstances that do not require the owner's consent, such as accident tows, parking-violation tows and abandoned-vehicle tows, is a public utility within the meaning of Title 11, Chapter 2 of the Code. 07 requires every such franchise to be granted by ordinance rather than by a simple administrative permit. 02 sets the operating rule: the City Council may award non-exclusive, non-consensual towing franchises, and it is unlawful for any person to engage in the business of non-consensual towing within Modesto unless that person is a City employee or agent, or is a party (or the employee or agent of a party) to a franchise agreement the Council has approved.

03 to cover the City's processing costs (with any shortfall billed back to the applicant and any surplus refunded), review and a report from the City Manager, and a public hearing where protests may be filed before the Council votes. 13 lets it continue until surrendered, purchased by the City, or forfeited for non-compliance. 02(d) subjects every franchise to the City Charter, the Modesto Municipal Code, Council resolutions and the California Vehicle Code.

Violations & Fines

Operating a non-consensual tow business in Modesto without an approved franchise agreement is unlawful under § 3-10.02(c). Because Chapter 10 carries no separate penalty clause, a violation falls under the Code's general enforcement rule at § 1-2.01: the City Attorney can charge it as a misdemeanor, punishable by up to $1,000 in fines and up to one year in Stanislaus County Jail, or elect to charge it as an infraction with a fine capped at $500. Each day the unlicensed towing operation continues counts as a separate offense.

Frequently Asked Questions

Can I start a tow company in Modesto and just get a business license?
No. A standard business license does not authorize non-consensual towing. Section 3-10.02 makes it unlawful to engage in non-consensual towing within the city unless you hold a Council-approved franchise agreement, since the Code treats this towing as a regulated public utility rather than an ordinary business activity.
Who decides which towing companies get a Modesto franchise?
The City Council, following the Title 11, Chapter 2 franchise process. An applicant files a verified application with a minimum $500 deposit under § 11-2.03, the City Manager reviews and reports on it, protests can be filed, and the Council holds a hearing before voting to grant or deny the franchise by ordinance.
How long does a Modesto towing franchise last?
Up to twenty years if granted for a fixed term, under § 11-2.12. The Council can instead grant an indeterminate franchise under § 11-2.13, which continues until it is surrendered, purchased by the City, or forfeited for failing to comply with its terms.
What happens if a tow company operates without a Modesto franchise?
It is a Code violation under § 3-10.02(c). Since Chapter 10 has no dedicated penalty section, the citywide default at § 1-2.01 applies: the City Attorney can prosecute it as a misdemeanor with up to a $1,000 fine and a year in county jail, or as an infraction capped at $500, with each day of operation a separate offense.

Sources & Official References

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