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Tuesday, May 18, 2010

State Farm Attempting To Regulate Consensual Towing, According to TRAA

Here's a portion of the release from TRAA President Alan Gregg (click here to go to the full PDF file at the TRAA website):
It has been brought to our attention that State Farm Insurance is attempting to introduce Federal legislation that would regulate "consensual" towing.
In the Federal Aviation Act of 1994 in Section 601, Congress inadvertently preempted the ability of local governments to regulate the tow truck industry.
[The ICC Termination Act of 1995, Public Law 104-88] restored the local authority to engage in regulating the prices charged by tow trucks in nonconsensual towing situations, but regulation of routes and services, as well as regulation of consensual towing were still preempted.

If State Farm's legislation is successful, and "political subdivisions" are allowed to regulate consent towing it would be really detrimental to our industry. In my opinion TRAA should stand firmly behind the law as it is written supporting regulation of nonconsensual towing and leaving consent towing out of the restriction. From talking with people in Illinois who have experienced the State Farm legislation directly, it sounds as if this is more a consumer protection attempt even though they have used "safety" in the writing to get it passed.

While we are trying to find a contact and/or get a copy of the proposed legislation, we have not been successful as yet. I think it is important that we share what we know so as to alert the industry to be vigilant, and if and when a bill becomes a reality TRAA should take the lead in making it known that we are absolutely opposed to any attempt to regulate consensual towing.

Any thoughts or suggestions you may have will be appreciated.

1 comment:

Anonymous said...

perhaps we should support regulation if help get the rates closer to non-consent rates and weed out scab companies like lightning express that does not hold a repair licsense or operate a tow truck