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Lawmakers hear bill to tighten tow-operator liens and require insurance verification
Summary
Senate Bill 113 would tighten Montana lien law for tow operators by clarifying when towers may hold property and requiring verification of towing/storage insurance; tow operators and association leaders told the committee unpaid work and lost cargo have left towers with high costs.
Senator Yackovich introduced Senate Bill 113 as a cleanup and clarification of Montana’s lien rules for towing and recovery, saying the bill would require verification of insurance coverage for towing and storage before certain cargos or property are released to insurers or owners.
Supporters — including representatives of the Montana Tow Truck Association and several independent tow operators — told the committee unpaid invoices and disputed insurance claims leave towers with wrecks or stripped vehicles and no compensation. "A lot of times, our laptop in there, they're gonna come get the laptop and leave us with the car," said Scott Wolff, a Missoula tow company owner, describing recent incidents in which cargo or valuables were taken and towers were left with the vehicle and disposal costs.
Senator Yackovich said roughly 40% of towing bills are not paid and described tow operators as "heroes" who do difficult roadside rescue and recovery work. Several witnesses gave specific examples: one operator said a semi load of lumber he recovered was worth about $29,000 but he was offered $5,000 for cleanup, and another witness said towers in a northern region recoveries are unpaid more than half the time.
Witnesses asked the committee to tighten the statutory language so that commercial cargos cannot be removed from towers without verified insurance coverage, and to clarify that small personal items needed by vehicle occupants (food, phones, child items) should be released compassionately while nonessential cargo may be retained as collateral for payment.
The bill’s backers said the change primarily affects commercial hauls where insurers or brokers have used legal actions or policy gaps to remove cargo and leave towers with only a damaged vehicle, disposal costs and paperwork. Brad Longcake of the Montana Tow Truck Association said the revisions "are just making it better" and urged the committee to pass the bill; he noted an existing complaint mechanism through the Department of Justice for disputes over tower conduct.
Committee members asked witnesses about disposal costs and the administrative process towers use to notify owners and lienholders; witnesses described certified-mail notice, title application and a wait period before recyclers will accept a vehicle. No formal vote was taken; the sponsor closed the hearing and asked for the committee’s support.
