Empire State Towing and Recovery Association : Tow Times Peoples Choice Awards

Legislative Reports

TO: ESTRA BOARD OF DIRECTORS
FROM: PETE O’CONNELL
RE: LEGISLATIVE/LEGAL REPORT
DATE: MARCH 21, 2009

2009 LEGISLATION: I am in the process of drafting a bill that will indemnify towers for damaging a vehicle or its contents when obeying the lawful directive of a person who is in charge of a traffic incident and a bill that will consider the abandonment of a vehicle with a tower by an insurance company as an unfair claims settlement practice.

LIEN LAW: Our Lien Law bill (Chapter 354 of the Laws of 2008) became effective as of October 18, 2008. DMV has yet to issue regulations or develop forms to be used under the new law.

MV-35 FORMS: As reported previously, tow truck operators that DMV was able to identify in its computer base received notices in October advising that DMV’s MV-35 forms have been amended. The notice further advised that all towers who are involved in the “acquisition of inoperable motor vehicles and selling them for scrap” must register as itinerant vehicle collectors. DMV is presently treating all towers who sell vehicles for scrap – regardless as to how they came into possession of the vehicles – must register as itinerant vehicle collectors. I am in the process of challenging this interpretation because I do not believe that the law was intended to apply to towers who come into possession of a vehicle that is abandoned on their property.

CONSOLIDATED IRON AND METAL: As reported previously, several towers have recently received letters from a Kansas City law firm advising them that they are liable under Federal Superfund laws for disposing of vehicles with Consolidated Iron and Metal of Newburgh, who went out of business in the late 1990’s after having caused considerable environmental damage to their property. A memo to all ESTRA members in the Hudson Valley concerning this issue drew limited response and I have heard of nothing further on the issue since then..

UNEMPLOYMENT INSURANCE APPEAL: I have previously provided Board members with a copy of a brief that I filed with the Appellate Division, Third Department, in connection with ESTRA’s dispute with the Unemployment Insurance Appeal Board. I am awaiting a decision on the case from the court.

AAA CASE: I advised previously that the AAA case is officially over. My advice was premature because a District Court Judge in New York City crafted a final judgment in the case that found that the law applied when driving through the City in a tow truck and towing a customer’s car into the City. He found, however, that it did not cover picking up a passenger vehicle in the City for delivery to a point outside of the City. AAA has appealed the decision to the Second Circuit Court of Appeals, which entered a decision of Thursday that stays enforcement of the law until the matter is heard by a three judge panel of the Court. At the request of AAA’s attorneys, I have yet to file an amicus brief in the case.

DOT LARGE TRUCK POLICY: I have joined a coalition consisting of the Motor Truck Association, Farm Bureau, Food Merchants and several others who are opposing efforts by DOT to restrict large trucks (defined as tractors with trailers of over 45 feet in length) from using highways other than those that are apart from the Interstate Highway System. Large trucks making local deliveries would be exempt from the ban. Nothing has happened on this issue since my last report.

NEW YORK CITY FEE INCREASE: As will be more fully discussed at this meeting, legislation that seeks an increase to $185.00 for all non consent tows will be the subject of a hearing on April 21, 2009.

FMCSA HAZ MAT MEMO: FMCSA has recently ruled that a vehicle under tow constitutes a hazardous material and that a vehicle towing (or transporting) such a vehicle must carry $1 million in liability insurance. A copy of the memo and a letter of explanation is attached.

OTHER LEGISLATIVE ISSUES: I have prepared a report showing all bills of interest to ESTRA members that have been introduced during the current session.