SENATE BILL REPORT

EHB 1630

BYRepresentatives Walk, Schmidt and Gallagher; by request of Department of Licensing

Requiring insurance for continued registration of tow truck operators.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 24, 1988; February 25, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Bender, DeJarnatt, Garrett, Kiskaddon, Owen, Sellar.

Senate Staff:Brad Lovaas (786-7307)

                  March 7, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 25, 1988

BACKGROUND:

Any person who impounds unauthorized vehicles within the state is required to register with the Department of Licensing as a registered tow truck operator.  The operator must meet statutory requirements before being issued a license, including an inspection of facilities and tow truck equipment by the Washington State Patrol.

In the application the operator must certify proof of minimum insurance amounting to $100,000 for bodily injury or property damage and $50,000 of liability insurance for vehicle damages.

In addition to the liability insurance, the tow truck operator must file a surety bond in the amount of $5,000 running to the state.  If this surety bond is not maintained, the operator's state registration is automatically cancelled.

SUMMARY:

A tow truck operator's state registration is automatically cancelled if the operator's liability and property damage insurance is cancelled.  This was statute prior to the 1985 creation of Chapter 46.55, and repeal of Chapter 46.52 RCW.  Technical changes to Chapter 46.55 RCW eliminate obsolete section references.  Section 46.61.567 RCW, authorizing the State Patrol to remove vehicles, is moved to Chapter 46.55 RCW.

SUMMARY OF PROPOSED SENATE AMENDMENTS:

In addition, the current regulation by DOL and WSP of registered tow truck operators, operators who impound unauthorized vehicles, is extended to anyone who operates a tow truck.

Only those DOL and WSP regulations with respect to equipment safety, insurance and bonding are extended to this new class of operators.

Currently, the motor vehicle fund is subsidizing the tow truck program.  This bill adds language that directs DOL to assess fees across the entire industry, registered tow truck operators and the new class of operators, to recover the cost of the regulatory program.

DOL is to assess the fees amongst the two different class of operators in proportion to the difference of activities.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Heather Hamilton, DOL (for); Bob Axelson, TEF Mgr., DOT (for)