Tocher

Patrick Tocher (“Tocher”), the operator of a tow truck business in Santa Ana, California, filed this action against the City of Santa Ana (“City”), alleging that the city’s ordinances regulating the automobile towing industry are preempted by 49 U.S.C. § 14501 (c). The district court concluded that Santa Ana’s tow truck ordinances were preempted by section 14501(c) and entered a judgment permanently enjoining the City of Santa Ana from enforcing any law related to the price, route, or services of towing businesses and/or individuals engaged in the tow truck business as either principals or employees. The City of Santa Ana and the Santa Ana Police Towing Association appeal from the district court’s final judgment. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm in part and reverse in part.

I.

The City enacted a set of municipal ordinances that regulate automobile towing operations and tow trucks. See Santa Ana Municipal Code (“SAMC”), § 32-81, et seq. The ordinances create a dual permit system that requires towing businesses and individual tow truck operators to obtain City permits and comply with certain City regulations. To operate a towing company, a person must,…