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Bill would let Department of Licensing reimburse tow operators when vehicle owners self-certify indigence
Summary
Senate Bill 5,484 would create a DOL-administered program to reimburse registered tow operators for towing and storage costs when an owner self-certifies indigence; reimbursements would be capped by excess proceeds from public auctions of abandoned vehicles and subject to available funds.
Substitute Senate Bill 5,484 would require the Department of Licensing (DOL) to create a program to reimburse registered tow truck operators (RTTOs) for towing, storage and related services when an individual who seeks release of a towed vehicle self-certifies, under penalty of perjury, that they are indigent and otherwise meet conditions in the bill.
Under the proposal, DOL must provide a form the vehicle owner completes to self-certify indigence and the RTTO completes to confirm the impound qualifies (private-property impound or law-enforcement-ordered impound, not impounds following arrest). Upon submission of the completed form, and subject to available funds, the RTTO would release the vehicle and DOL would reimburse the operator for the tow and storage costs from a fund composed of surplus proceeds derived from abandoned-vehicle sales at auction that are no longer subject to valid claims.
Committee staff said the fiscal note shows the DOL would need additional staff (1.5 FTE estimated) and IT updates to accept online reimbursement applications and manage program workloads; the cost in 2025-27 is estimated at roughly $567,000 with ongoing costs estimated at about $408,000 (rounded) and $159,000 for initial IT system updates. The amounts available for RTTO reimbursement are indeterminate and capped by surplus auction proceeds; DOL would establish a wait list if funds are exhausted and any reimbursement is not an entitlement.
Tow-industry representatives testified in support, saying the program would let operators release vehicles to owners who truly cannot afford towing charges while providing a reimbursement path so RTTOs do not bear the full cost. Chester Baldwin of the Towing and Recovery Association described how current auction proceeds flow to the state and said the proposed fund would return surplus proceeds to cover indigent-release reimbursements. Tow operators asked the committee for passage to reduce the number of owners who lose vehicles at auction because they cannot pay recovery costs.
The committee closed the public hearing on the bill; no committee vote was taken at the hearing.
