Tow Industry Narrowly Escapes Costly Regulation Again

Tow Industry Narrowly Escapes Costly Regulation Again


Greetings Fellow Industry Men and Women,

Our last communication with you hopefully conveyed a State of the Union vibe.  I attempted to give you an account of what the Coalition had done while painting a picture of what may be around the corner.  At the risk of repeating myself I feel I must address this based on a couple of conversations I have had with some of you.  The most common questions I get are: “Why should I belong and why should I belong to two associations?”  My answer is a simple one.  Because ERSCA and the CTTA quietly and efficiently save you thousands of dollars every year by influencing Sacramento. Any other benefits are icing on the cake.  In fact, I would go so far to say that if there is another association that pops up in California your money would be well spent investing in that association too.  Think this statement is an exaggeration?  Consider the ramifications had AB 2825 by Assembly Member Jones-Sawyer (sponsored by MALDEF) passed and become law.  This bill would have required that towing facilities provide written and oral translation services for all transactions. The bill would also have applied the burdensome, and expensive requirements that currently apply to debt collectors to “at the counter” tow company transactions. Non-compliance would hold the company in violation of the law.  After much effort from ERSCA and CTTA, fortunately the law did not make it to the Governor’s desk, but the issue is still lingering this year.  Without too much trouble you can imagine the expense evolved with managing this. A joint effort by ERSCA and the CTTA brought enough awareness to the bill to slow its progression and we will be at the table again this year to hopefully work out a solution to the bill. Last year, the insurance industry also sought to regulate our rates with AB 2392.  After lengthy negotiations, a reasonable bill was signed into law, but the insurance industry has already approached us again to make further changes.  So far they have been good partners, but any regulation on your business will require representation so that good intentions do not have unintended consequences.  These are but a few of the laws affecting your business that are in play.  ERSCA ensures that your voice is heard at a variety places by a team of volunteers guided by legal staff that are the best in the business.  ERSCA occupies seats on the CHP Tow Service Agreement Advisory Committee (TSAC), Towing Regulatory Oversight Council (TROC) and the CTTA.  We also have a mobile team of towers ready at the drop of a hat to show up at an Assembly member’s office to engage on your behalf.  It has been well documented what has been saved in the past regarding these issues and I am sure it will only become more important in the future to be proactive.

What can you do?  Keep active in your associations!!!  The volunteers already sacrifice countless hours on your behalf, call them if you have questions or better yet offer to help.  Renew!!! We need your name and your resource to continue.  We need everyone.  I am happy to take your phone calls and tell you what it looks like if ERSCA or CTTA no longer exist.

There will not be a general meeting this year at the Jelly Belly as in the past.  We will be hosting a luncheon in Las Vegas at the Tow Show. More details to follow. Make it a point to stop by and join us, we have work to do and need your support to do it.

Finally, we lost a good friend performing in the line of duty.  My friend, our friend, James Morris of Wiler’s Towing was tragically lost while protecting his customer.  You will hear more from us concerning this matter and can look for ERSCA and the CTTA to forward some sort of protections for our unsung heroes that grace our businesses.  Our heartfelt condolence to the Morris family and Wiler’s Towing

Craig Baker