Committee hears bill to reimburse tow operators for releasing vehicles of indigent owners using existing abandoned‑vehicle funds

House Bill 1653 would direct the Department of Licensing (DOL) to create a program to reimburse registered tow truck operators (RTTOs) for towing, storage and related costs when an individual seeking release of an impounded vehicle self‑certifies under penalty of perjury that they are indigent and meet program conditions.

Under the bill, an individual seeking a vehicle release would complete a DOL form certifying that they are the registered owner, are indigent or unable to pay without severe hardship, and have not used the program more than once in the previous year. The RTTO would then complete a second certification verifying the impound was a private‑property or law‑enforcement‑directed impound not following an arrest and that the applicant is the registered owner. Once both parts are completed, the RTTO must release the vehicle and relinquish any lien or deficiency claim. DOL would disperse funds to eligible RTTOs equal to the cost of towing, storage, and services, subject to the availability of funds; payments are not an entitlement and may be placed on a wait list if funds are insufficient.

Proponents — including the Association of Washington Cities and several towing‑industry witnesses — framed the bill as a consumer‑protection and public‑health measure to speed recovery of vehicles used for personal shelter and reduce the financial harm of auctioning vehicles at a loss. Carl Schroeder (Association of Washington Cities) told the committee the bill “makes it easier and a clearer process and more, quick process for folks who are living in their homes or in their vehicles.” Multiple tow‑operator witnesses described routine situations where owners cannot pay impound and storage fees and said using excess revenues from abandoned‑vehicle auctions would fund the program without new taxes.

DOL’s partial fiscal note, as read by committee staff David Monachey and Sandy Myers, estimated DOL would need staffing and implementation costs to establish the program: the department listed an impact of 1.5 FTEs and $567,000 in 2025‑27 and $408,000 in 2027‑29 and thereafter to stand up the program, based on an assumption that 10 percent of impounded vehicles would be part of the program. DOL also characterized its overall impact as indeterminate pending fund availability. Monachey said payments to RTTOs would be capped at the amount of excess revenue generated from abandoned‑vehicle sales and that remitted monies in DOL’s possession for more than one year would be the funding source.

Committee members pressed on practical questions. Representative Enten (surname in transcript "Enten") asked how the process would work for people living in vehicles; proponents said those individuals could complete the self‑certification form to retrieve vehicles. A committee member questioned why tow operators would be reimbursed when auctions sometimes sell cars for scrap below the tow and storage costs; industry witnesses responded that the program helps avoid long‑term losses and frees yard space to continue operations. Supporters requested prompt executive scheduling of the bill.

No formal committee vote was recorded at the close of the public hearing; the committee closed testimony after both in‑person and remote witnesses.