Senate committees approve towing-license and consumer-protection amendments to SB 1272

The Senate committees voted Feb. 7 to pass SB 1272 with amendments that tighten consumer protections for towed vehicle owners and create a licensing pathway and enforcement tools for the towing industry.

Industry speakers George Grace and Jeanette Grace (Pinky Tows Hawaii) supported a state-level licensing framework to root out unlicensed ‘‘pirate’’ operators they said ignore rate rules, lack required insurance, and sometimes mislabel storage practices. George Grace told senators the license and a state oversight authority would provide an avenue to hold bad actors accountable and raise industry standards: "We have what in our industry we call pirates... They don't follow the statute. They charge in rates... They don't provide the proper insurances..."

The committee recommended adopting Office of Consumer Protection language that prevents counties from enacting ordinances that provide less consumer protection than state law. The amendments also change the bill's language to specify engaging in towing or vehicle immobilization without a valid license is unlawful, add a provision about use of devices intended to immobilize parked vehicles, and include a defective effective date before sending the bill to Judiciary and Ways & Means.

TCA committee members recorded an affirmative vote on the amended bill. Committees said the amendments were intended to establish licensing criteria, permit more robust DCCA enforcement, and require standards for storage yards and payment methods.

Next steps: SB 1272 proceeds with committee amendments to the Judiciary and Ways & Means committees. The committees recommended the Office of Consumer Protection approach to ensure counties cannot undercut state protections.