[Congressional Record Volume 141, Number 170 (Tuesday, October 31, 1995)]
[Senate]
[Page S16427]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LIEBERMAN:
  S. 1373. A bill to provide for state regulation of prices charged for 
services provided by, and routes of service of, motor vehicles that 
provide tow or wrecker services, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


                  the towing technical correction act

 Mr. LIEBERMAN. Mr. President, I introduce an Intrastate Towing 
Technical Corrections Act. This legislation will clarify that it is not 
Congress' intent to preempt state or local regulations dealing with the 
operation of tow trucks. I would like to recognize the junior Senator 
from Washington who introduced similar legislation in the 103d 
Congress, which, unfortunately, was not acted upon prior to 
adjournment.
  Last year Congress passed the Federal Aviation Administration 
Authorization Act of 1994. The act included a provision in section 601 
which effectively preempts state and local intrastate trucking 
regulations pertaining to prices, routes, and service. However, it was 
not Congress' intention to legislate on towing issues; and it has 
opened up myriad problems for the consumer, leading to higher towing 
rates.
  In Connecticut, towing rates have been deregulated; and tow operators 
are free to charge as much as they want. Now, some may say that the 
market should determine prices--and I agree--but in the towing market 
the consumer has no other recourse, more times than not, than to pay 
the tow truck operator after the vehicle has been towed. Safety 
concerns abound also. Especially when considering large tractor 
trailers that break down on interstate highways.
  I have heard from many constituents that deregulation is causing 
exorbitant price increases in their towing rates. Again, this was not 
our intention when we passed the Federal Aviation Administration 
Authorization Act of 1994. This bill will keep towing charges in line 
with market prices.
  Plain and simple, Mr. President, deregulation is leading to 
overcharging. My bill would let the States set towing rates. It would 
be beneficial for the consumer and beneficial for States.
  I ask unanimous consent to place in the Record excerpts from an 
article in the Hartford Courant by Tom Condon, which addresses this 
problem.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

               [From the Hartford Courant, Aug. 22, 1995]

              Deregulating Towing Has Left Public on Hook

                            (By Tom Condon)

       On Aug. 8, a tractor-trailer driver for Dick Harris 
     Trucking Co. of Lynchburg, Va., pulled his rig off I-95 at 
     Exit 34 in Milford. He didn't hit the narrow exit ramp just 
     right, and the tractor and box gently rolled over.
       Police called Robert's Service Center of Milford to clear 
     the ramp. The trailer was full of pallets of rolled steel. 
     Robert's crew winched the cargo out of the truck, righted it, 
     then towed everything away.
       What the owners of the truck aren't happy with is the 
     towing bill, which is for $10,400.
       ``It's excessive, that's the problem I have with it,'' said 
     Bud Holt, vice president of the trucking company. Holt, who 
     said he is a former state trooper and insurance claims 
     adjuster, said Robert's billed some of the workers at $60 an 
     hour, which ``is too much.''
       It doesn't matter, Holt. Welcome to Connecticut, where 
     towing rates have been deregulated, and tow operators can 
     charge as much as they want.
       There is another side to the Milford case. Robert Bruno, 
     owner of the service center, says this was a very complicated 
     operation for which he had to rent expensive equipment. He 
     said he had to winch the heavy pallets out of the truck with 
     a rented low motor, then load them on rented flatbeds. Then 
     he righted the tractor and trailer without damaging them.
       Bruno said he brought the cargo back to his yard and 
     unloaded it. Then, at the direction of the trucking company, 
     he reloaded it on the flatbeds and took it to a freight yard 
     with a loading dock, so it could be loaded back on the 
     trailer.
       He said he got the call at 11:30 a.m., and the last of his 
     crew didn't finish until midnight. He said his real cost was 
     almost $14,000, but he decided to give the trucking company a 
     break, hoping for future business. Holt said he understood 
     the job took 10 hours, and said he thought $1,000 an hour 
     excessive.
       Not so, said Bruno. He said some operators would have 
     gouged the trucking company and charged $20,000 for the job, 
     but said he didn't. Bruno has released the trailer, but is 
     still holding the tractor, until the dispute is resolved. 
     Both sides have lawyers.
       If this doesn't make the case that deregulation is leading 
     to overcharging, let's go back to old reliable, a guy we can 
     always count on to hose the public, Bob Spillane of Walnut 
     Street Service Inc. of Hartford.
       On May 10, an ironworker named Pete Toner of Langdon, N.H., 
     parked his Bronco in a private parking lot--never do that--at 
     the corner of Ashley and Garden streets and visited the 
     Ashley Cafe. When he came out, the car was gone. He then 
     walked to the police lockup at Morgan Street, finally learned 
     the car had been towed, called Spillane and got no answer.
       When he got the Bronco the next day, the bill was $139. He 
     said Spillane didn't answer his phone, then charged him for 
     storage. The tow from the bar to Spillane's garage is one 
     block. This is an outrage, but at the moment motor vehicles 
     officials say there's nothing they can do about it (not that 
     they ever did much about it in the past).
       On Jan. 1, a federal law went into effect that prevents 
     states or cities from regulating ``price, route or service of 
     any motor carrier . . . or any motor carrier with respect to 
     the transportation of property.'' State officials have 
     interpreted this to mean they can't regulate towing rates.
       If a convervative is a liberal who's been mugged, an 
     opponent of deregulation is someone who's had to pay $139 
     after his car was towed one block. If this idiotic law isn't 
     changed, government is going to have to get back into the 
     towing business to keep the public from getting fleeced. We 
     don't want that.

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