HD18 - Regulation of the Towing and Recovery Industry


    Executive Summary:
    Joint Subcommittee Studying Regulation of the Towing and Recovery Industry

    The Joint Subcommittee held four meetings during the 2005 interim, one of which (June 21) was a public hearing. The panel considered the views of representative of the towing and recovery industry, the insurance industry, local governments, state agencies, and the general public on the extensive list of issues set forth in the legislation (SJR 330) authorizing the study. Following Subcommittee deliberations, staff prepared, at the direction of the Chairman, draft legislation embodying the members' views, and this draft was subsequently reviewed and discussed at length and in detail by the Subcommittee. A revised draft was then prepared for introduction as a bill during the 2006 Session of the General Assembly. The salient feature of this legislation is the creation of a new, independent, regulatory board to oversee licensure and regulation of both towing and recovery business and of tow truck operators. Since this draft legislation embodies all the Subcommittee's findings and recommendations, the panel does not plan to submit a formal report to the 2006 Session, nor does it plan to propose any legislation extending the Subcommittee's mandate.