Public service commission could resolve towing disputes

The Transportation and Telecommunications Committee heard testimony Feb. 8 on a bill that would involve the Public Service Commission (PSC) in private property towing disputes.

Under LB295, introduced by Sen. Steve Lathrop of Omaha, an individual who believes that the fees assessed for towing or storing a vehicle are unreasonable may file a written complaint with the PSC. The commission would notify the person assessing the charges and could hold a hearing on the complaint.

LB295 also would provide criteria for determining whether towing fees are reasonable, an issue Lathrop said was a central reason for the bill’s introduction. Current law specifies that fees must be reasonable, he said, but does not define the term.

Under the bill, the commission would consider the following when determining whether fees are reasonable:

• the circumstances involved in a towing;
• whether specialized equipment, procedures or training were needed to tow a vehicle;
• how fees compare to those for a consensual tow and fees charged by other towing businesses; and
• whether a vehicle owner was given notice of the storage location and an owner’s ability to retrieve a vehicle during normal business hours.

Lathrop said the PSC already regulates taxi and limousine services in Nebraska and has a system in place to deal with consumer complaints.

“I think it’s a great process and it’s fair,” he said.

Joanne Hitz, president of the Professional Towers Association of Nebraska, testified in support of the bill, saying it could weed out irresponsible owners who charge unreasonable fees for private property tows.

“Anything that can raise the perception of this occupation is good,” she said.

Sara Schwartztrauber, owner of Capital Towing in Lincoln, testified in opposition to the bill, saying it would have the unintended consequence of raising towing fees.

If towing companies must travel to PSC hearings to defend their rates, she said, towing fees will increase to reflect that cost.

Public service commissioner Anne Boyle testified in a neutral capacity.

The PSC likely could incorporate the additional duties outlined in LB295 without additional staff, she said, adding that teleconferencing could be used to alleviate the need for a towing company representative to travel to a hearing. The commission focuses on consensual dispute resolution, she said, and does not hold a hearing on all complaints received.

“I don’t see that we’ll have a significant increase in hearings,” Boyle said.

The committee took no immediate action on the bill.