10 Ways to Keep Your Towing Company Out of Hot Water and Avoid Administrative Penalties
Navigating the complexities of compliance in the towing industry is crucial for maintaining a reputable and profitable business. Here are the top 10 best practices derived from the Texas Department of Licensing and Regulation (TDLR) guidelines to help your towing company steer clear of administrative penalties and sanctions:
Maintain Accurate and Visible Licensing Information: Ensure all your tow trucks display the required information (like the company name, phone number, license number, and tow driver TDLR license number) in the proper size and color contrast, as mandated by Chapter 2308 of the Texas Occupations Code (the “Towing and Booting Act” or “TTBA”) and Texas Administrative Code (“TAC”).
Comply with Insurance Requirements: Always keep evidence of insurance in the tow trucks and ensure the electronic submission of a certificate of insurance, particularly when changing a business name or affiliation. This helps to avoid penalties under various sections of the TAC and Chapter 2308 of the Texas Occupations Code.
Adhere to Proper Signage and Public Information Norms: Display all necessary signage, including tow fees schedules and rights of vehicle owners. This is crucial to avoid penalties under TAC Chapters 85 and 86 and the TTBA.
Uphold Accurate Record-Keeping: Keep meticulous records of all tows, including nonconsent tows, and maintain these records for the required time period. This is essential to meet compliance standards under TAC Chapters 85 and 86.
Ensure Proper Tow Ticket Management: Issue tow tickets for each service, itemize each charge, and provide copies to vehicle owners or storage facilities as required by TAC Chapter 86.
Conduct Regular Training on Drug and Alcohol Policies: Establish, maintain, and implement effective drug and alcohol testing policies for employees. This is critical to comply with the TTBA and TAC Chapter 86.
Follow the Fees in Statute: Charge fees strictly in accordance with legal limits and ensure transparency in fee structures. Overcharging can result in significant penalties under various sections of the TTBA and TAC.
Provide Timely and Accurate Notices to Vehicle Owners: Comply with all requirements for notifying vehicle owners and lienholders in case of towed vehicles. This includes adhering to timelines and providing complete information as per TAC Chapters 85 and 86.
Stay Updated on Legal Changes: Regularly review and stay informed about changes in the towing and vehicle storage facility regulations to ensure compliance.
Prioritize Integrity and Professional Conduct: Operate with honesty, trustworthiness, and integrity. Avoid any actions that could be construed as fraudulent, deceptive, or untrustworthy, as these can lead to severe penalties and even license suspension or revocation.
By implementing these best practices, your towing company can effectively navigate the regulatory landscape, maintain a positive reputation, and avoid costly penalties. Remember, staying informed and compliant is not just about avoiding fines; it's about building a sustainable, trustworthy, and customer-friendly business.