PUC clarifies towing regulations including drop fee impacts for residential impounds

The Towing Task Force meeting held on September 13, 2023, focused on recent changes to towing regulations in Colorado, particularly concerning rates for nonconsensual tows. The meeting highlighted that while there have been some adjustments to the Public Utilities Commission (PUC) rates, the most significant change affects residential-style private property impounds (PPIs).

Under the new legislation, towing carriers can no longer charge a "drop fee" when a vehicle owner intervenes before their vehicle is fully towed. Previously, this fee was applicable if the vehicle owner arrived while the tow was in progress. Now, towing companies must release the vehicle without charging this fee, which could impact their revenue.

Task Force members expressed concerns about how these regulatory changes might affect the overall economics of the towing industry. Dr. Pearson noted that the requirement for vehicle owners to pay only 15% of the towing charge before the vehicle is released could lead to difficulties in recouping costs for towing companies. This concern was echoed by John Connolly, president of the State Towing Association, who reported that many vehicle owners who opted to pay the initial fee did not return to pay the remaining balance.

The discussion underscored the need for further analysis of how these regulations are affecting the towing business. Members agreed that more data is necessary to understand the full economic impact of the recent changes. The Task Force plans to prepare recommendations for future rulemakings to address these issues as they arise.

Overall, the meeting emphasized the ongoing adjustments within the towing industry and the importance of monitoring the effects of regulatory changes on both service providers and consumers.