[Congressional Record (Bound Edition), Volume 150 (2004), Part 12]
[Extensions of Remarks]
[Pages 16187-16188]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          TOW TRUCK OPERATORS

                                 ______
                                 

                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                         Monday, July 19, 2004

  Mr. MORAN of Virginia. Mr. Speaker, I rise today to introduce federal 
legislation that will help states and localities rein in rogue towing 
operations that continue to harass and take advantage of local 
residents.
  In 1994, Congress enacted the Federal Aviation Administration Act 
which opened a loophole permitting tow truck operators to qualify as 
interstate carriers exempt from state and local regulation.
  A year later in 1995, Congress passed another attempt to streamline 
the federal government in the form of a law eliminating the Interstate 
Commerce Commission (ICC). This legislation struck down the regulatory 
body that provided federal oversight of the tow truck industry, leaving 
the tow truck industry without proper federal, state or local 
regulation.
  In the years since, a number of conflicting U.S. District court 
rulings between towing operators and localities have been issued, 
including a 2000 Supreme Court decision in the City of Columbus v. Ours 
Garage and Wrecker Service. While the Supreme Court found that both 
state and local governments have the ability to exercise, free from 
federal preemption, the ``safety regulatory authority'' provided in 
law, the Court unfortunately failed to address what specific types of 
regulation would qualify under this distinction. Subsequent federal 
court decisions have yielded little additional clarity and have 
probably confused the issue further.
  Without a clear judicial precedent, states and localities have been 
confronted with a barrage of problems related to ``non-consensual'' or 
``trespass tows.'' It has been brought to my attention that in 
Arlington County, VA alone, over 280 complaints and inquiries with 
regard to trespass towing have been received in the past 2 years.
  Due to a lack of clear guidance from the courts and the large number 
of cases which have been brought to my attention involving a group of 
small but very active predatory towers in this region, I am here this 
morning to announce the introduction of legislation that will close the 
federal loophole, once and for all, that has prevented states and 
localities from having the full authority to regulate all aspects of 
``non consensual'' towing.
  Entitled the ``State and Local Predatory Towing Enforcement Act of 
2004,'' this legislation simply amends title 49 of the United States 
Code to give state and local governments the ability to enact common-
sense, pro-

[[Page 16188]]

consumer ``trespass towing'' protections for their residents.
  Something is wrong when, in the absence of any federal regulatory 
oversight, local and state governments do not have the proper authority 
to protect their citizens against companies not conducting safe 
business practices.
  Whether it be overcharging someone an arm and a leg for parking 
illegally in an area with no signs properly designating the space, to a 
lack of ATM machines at tow lots requiring cash only transactions to 
get your car out of impoundment, tow companies should be held 
accountable by state and local governments for non-consensual towing 
practices that do not take the consumer into account.
  A solution to bring an end to this out of control problem is needed. 
The ``State and Local Predatory Towing Enforcement Act'' is that 
solution. It will correct a lack of regulatory oversight for an 
industry whose image is being tarnished by a few bad apples, and in 
doing so, will return power back to the people.

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