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House rejects repeal of towing-insurance requirement, siding with committee concern about small businesses
Summary
The House accepted the committee—s majority "ought not to pass" recommendation on a bill to repeal a new towing-and-storage insurance requirement, defeating the repeal on a recorded floor vote (61-?).
The Maine House on the floor considered a bill to repeal a recently enacted requirement that motor-vehicle liability policies cover up to $500 per accident for towing and storage charges. After debate the House accepted the committee majority—s recommendation that the repeal "ought not to pass." The clerk announced the recorded result with 61 affirmative votes in favor of the committee recommendation; the motion prevailed and the action was sent to the Senate with that recommendation.
Representative Morris argued the surcharge requirement imposed a burden on lower-income motorists who now pay more for insurance and urged repeal. He said the Bureau of Insurance had testified that the premium impact could be 0.5 to 2.6 percent and that other remedies exist for towing companies, such as holding and selling abandoned vehicles.
Committee members who opposed repeal, including Representative Madison, said towing companies reported nonpayment by municipalities and long delays in title issuance that strained small-business storage capacity. The committee heard testimony that titling and reimbursement processes could take 60 to 75 days and that the law had been phased in beginning July 2024.
On the floor the House voted to accept the committee—s recommendation that the law remain in place; the vote was announced by the clerk and recorded in the journal.
