Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Tow Truck Industry Act 1998 (the Act):

(a) to extend the maximum duration of a tow truck operators licence, or a drivers
certificate, from one year to 3 years, but only if the applicant requests a 3-year
licence or certificate and satisfies other probity requirements, and

(b) to require tow truck operators to maintain a holding yard and to provide
reasonable access to motor vehicles being held in the operator’s holding yard,
and

(c) to allow the regulations, rather than the Roads and Traffic Authority (the
RTA), to cap all fees and charges for the towing, storage and salvage of a
motor vehicle, as well as for any related or ancillary service, and

(d) to extend the prohibition on touting and soliciting for work at the scene of an
accident, so that it begins to apply immediately after a towing authorisation is
obtained by any person in accordance with the Act or after a police officer has
organised for the towing of the relevant motor vehicle, and

---

Explanatory note page 2

Tow Truck Industry Amendment Bill 2008
Explanatory note

(e) to ensure that an authorised officer, police officer or emergency services
officer may direct any certified driver at the scene of an accident, not just the
actual driver of a tow truck, and

(f) to make it an offence for the driver of a tow truck to allow a person to travel
as a passenger in the driver’s tow truck that is proceeding to or from the scene
of an accident, except in certain circumstances.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 is a formal provision that gives effect to the amendments to the Tow Truck
Industry Act 1998 set out in Schedule 1.

Clause 4 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendments
Application of Act to certain motor vehicles
Schedule 1 [1] makes it clear that the Act does not apply to the towing, salvage and
storage of some motor vehicles (such as forklifts, golf buggies and ride-on mowers).

Extension of duration of some tow truck operators licences and drivers
certificates to 3 years
Schedule 1 [2] and [9] require an applicant for a tow truck operators licence or a
drivers certificate to specify the term of licence or certificate sought.

Schedule 1 [8] and [11] extend the maximum duration of a licence or drivers
certificate from one year to 3 years, but only if the applicant satisfies certain probity
requirements.

Schedule 1 [12] provides that, if a 3-year licence or drivers certificate is suspended,
the licence or certificate, once re-instated, is to continue only until the next
anniversary of its issue.

Schedule 1 [13] provides for the review of a decision to grant a licence or drivers
certificate for a lesser term than that applied for.

Obligations to maintain, and provide access to, holding yards
Schedule 1 [3] requires an application for a tow truck operators licence to specify
each place intended to be used as a holding yard in carrying on the applicant’s
business as a tow truck operator.

---

Explanatory note page 3

Tow Truck Industry Amendment Bill 2008
Explanatory note
Schedule 1 [4] provides that the RTA may refuse to grant an application for a tow
truck operators licence on the ground that the applicant has not specified an
appropriate place as a holding yard.

Schedule 1 [5] makes it a condition of a licence that the licensee must maintain at
least one holding yard.

Schedule 1 [6] makes it a condition of a licence that the licensee must allow the
owner of a motor vehicle stored at any holding yard used by the licensee reasonable
access to the motor vehicle, during business hours, to collect items from the motor
vehicle.

Conditions relating to charging for towing, salvage or storage and
connected work
Schedule 1 [7] and [10] impose conditions on a tow truck operators licence and a
drivers certificate relating to the fees that can be charged for towing or salvage of a
motor vehicle, or (only in the case of a licence) for storage of a motor vehicle, or for
any service that is related to or ancillary to the towing, salvage or storage of a motor
vehicle. They also impose conditions that provide that a licensee or certified driver
must not charge a fee for work that was not actually done by or on behalf of the
licensee or certified driver.

Schedule 1 [14] provides for fees and charges to be capped by the regulations, rather
than by the RTA. In addition to towing, salvage and storage (which are currently
regulated), the regulations can cap fees and charges for any service related to or
ancillary to the towing, salvage or storage of a motor vehicle. The regulations can
specify services for which the licensee or certified driver cannot charge a fee.

Schedule 1 [15] makes a consequential amendment.

Obligation to periodically update licence and certificate particulars
Schedule 1 [7] also imposes conditions on a tow truck operators licence requiring the
holder of a 3-year licence to periodically confirm particulars of the licence and
requiring the holder of any licence to notify the RTA of any changes in licence
particulars.

Schedule 1 [10] also imposes conditions on a drivers certificate requiring the holder
of a 3-year drivers certificate to periodically confirm particulars of the certificate and
requiring the holder of any certificate to notify the RTA of any changes in the
certificate’s particulars.

Prohibition on touting or soliciting for towing work at scene of accident
Schedule 1 [16] amends the existing provision creating an offence of touting or
soliciting for towing work at the scene of an accident by providing that, although a
person who is lawfully attempting to obtain, or lawfully dealing with, a towing
authorisation is exempt from the prohibition on touting or soliciting for work, that

---

Explanatory note page 4

Tow Truck Industry Amendment Bill 2008
Explanatory note
exemption ceases once a towing authorisation is obtained by another person or the
person is informed that a police officer has organised for the towing of the relevant
motor vehicle.

Power to give directions at scene of accident
Schedule 1 [17] ensures that an authorised officer, police officer or emergency
services officer may give directions to any certified driver at the scene of an accident,
not just the actual driver of a tow truck.

Prohibition on carrying passengers in tow trucks
Schedule 1 [18] makes it an offence for the driver of a tow truck to allow a person to
travel as a passenger in the driver’s tow truck that is proceeding to or from the scene
of an accident unless the person was the driver of, or was a passenger in, a motor
vehicle involved in the accident or is a certified driver who is travelling as a
passenger for the purpose of assisting the driver of the tow truck in carrying out
towing work. (At present only the passenger would be guilty of an offence if the
driver allowed him or her to travel in the tow truck.)
Savings and transitional provisions
Schedule 1 [19] provides for the making of savings and transitional regulations as a
consequence of the enactment of the proposed Act.

Schedule 1 [20] makes savings and transitional provisions consequent on the
enactment of the proposed Act.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

---

[Index] [Search] [Download] [Bill] [Help]