On December 4, 2015, President Obama signed the Fixing America's Surface Transportation Act (FAST Act), which included H.R.2563 (State and Local Predatory Towing Enforcement Act). In addition to authorizing over $300 billion for highway improvements, the law ceded authority to regulate the towing industry to state and local governments.
In 1995, the federal government passed the 49 U.S. Code § 14501. This law gave the federal government authority to regulate the interstate trucking industry. Inadvertently, this law also preempted the ability of states and local governments to regulate tow truck operations. No one intended for the federal government to be in charge of the towing industry. As a result there were no federal laws restricting predatory towing practices such as price gouging, wreck chasing, and illegal towing of vehicles.
The State and Local Predatory towing Enforcement Act, amended 49 U.S. Code § 14501 (c)(2)(C) to clearly give regulatory authority over tow truck operations to states and local governments.
The law now reads:
[Regulator restrictions do] not apply to the authority of a State or a political subdivision of a State to enact or enforce a law, regulation, or other provision relating to the regulation of tow truck operations performed without the prior consent or authorization of the owner or operator of the motor vehicle.
The State and Local Predatory towing Enforcement Act was introduced by Congressmen Don Beyer (D-VA) and Van Hollen (D-MD) and passed unanimously. This amendment was fought by industry trade groups who sought to prevent regulation of the towing industry. Thieving tow companies wanted to continue profiteering through predatory towing practices. Now state and city governments can create and enforce common sense legislation that protects drivers from predatory tow companies.