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By JGillman, Section News
Posted on Tue Jun 28, 2011 at 11:27:28 PM EST
Tags: Rent Seeking, Michigan, Towing Companies, Rules, Regulations, SB287, Business Wreckers, Crushed Dreams (all tags)

With the wrecker of government involvement.

The rent seekers are back. Those folks who cannot compete properly in free markets take advantage of ignorant lawmakers who want to simply provide a "safer environment," yet do not look forward far enough to see the effect of their actions on hundreds of small businesses.

In this case, it is the towing industry. Undoubtedly, the high cost of fuel, insurance, and the reduced traffic and safer cars situation has taken a toll on tow operators in our great state. Particularly the larger less efficient operators with greater overhead to worry about. So much so, that they have sought and are receiving the assistance of legislators in requiring greater licensing by the removal of certain exemptions with MI-SB287.

Jeez. When the vote names come out on this, it ain't going to be pretty. Sorry to see this happening again to Michigan's small tow truck operators.

I was there once

(more below)

I owned a towing company once. It was the one business other than the one I currently own that actually made a profit. I sold it in 1990 for a combination of reasons, including the inability to keep up with the regs of the time that restricted my operating radius. The writing on the wall said sell, you know?

I know how expensive the required insurance can be. I know how that licensing can affect the bottom line, and how it can limit competition in many communities. That adds cost to you, your insurance carrier, and frankly limits the ability of smaller operators to seek out new sources of revenue with their skills.

Back then, if you wanted to get a license to haul outside of town, you needed permission.

From the competition.

It looks like they are trying to enact those arcane competition busting rules once again. I only wish I had seen it sooner. I would have raised my hands to "testify" a little more quickly.

Thanks to Ray Franz for voting no on this bill that received 90-18 support.

Gag.

So sad.

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Crush Your Competition | 8 comments (8 topical, 0 hidden)

Ow! (none / 0) (#1)
by Corinthian Scales on Wed Jun 29, 2011 at 11:39:04 AM EST

...yeeeeesh.

take advantage of ignorant lawmakers who want to simply provide a "safer environment," yet do not look forward far enough to see the effect of their actions

Good Lord! That was so sweet that I think I got a cavity just reading it.

FISCAL IMPACT
The bill would raise an indeterminate amount of revenue. Intrastate motor carriers pay a $100 application fee, and since the bill would remove two exemptions from the Motor Carrier Act for certain types of vehicles, an indeterminate amount of new revenue would be generated.

Well, let's just say this time they didn't bother to calculate their actions.

Upside? This was unanimous in the Senate. Poster child. Yessiree, Lord Randy, since 1998, once again with his jesters, makes the MI-GOP transcend the MDP.

There is no kakistocracy, there is no kakistocracy!

Weeeeeeeeeeeeeeeee......

Okay, I don't get it. (none / 0) (#2)
by KG One on Fri Jul 01, 2011 at 02:13:13 PM EST

The tow trucks that I see on the road already have DOT inspection stickers on their hood, so exactly what is the need for this law?

an indeterminate amount of new revenue by Corinthian Scales, 07/01/2011 02:25:04 PM EST (none / 0)

Yeah,yeah,yeah... by KG One, 07/01/2011 02:46:41 PM EST (none / 0)

outlawing competition (none / 0) (#5)
by Tom McMillin on Sat Jul 02, 2011 at 05:19:47 AM EST

I voted No on this too. I have seen so many times when even Republicans will vote for things like this, because they say, "Hey, the industry even wants it." It's so typical - an industry forms some kind of association. Raises money to get a good lobbyist and gets laws on the books to increase competition for the sole purpose of keeping out competition...though usually they come up with some grand-sounding purpose, like consumer protection. It is government that causes problems in the market - health care wouldn't be a problem if it weren't for gov't regulation. Energy costs would be much lower. Helpful drugs wouldn't cost so much. Banking wouldn't have so many problems. On and on it goes. Government...usually in the name of "consumer protection" ends up messing up the market horribly for the consumer. On the spectrum between "buyer beware" and "nanny state", we've certainly fallen far closer to nanny state - with very harmful consequences.

That's the rationale? by KG One, 07/02/2011 06:30:31 AM EST (none / 0)
Thank you for your no vote by JGillman, 07/02/2011 08:19:49 AM EST (none / 0)

Success! (none / 0) (#8)
by Corinthian Scales on Thu Jul 21, 2011 at 08:53:01 PM EST

Today, S.B. 287 became Law.

S.B. 287, sponsored by state Sen. Mike Kowall, eliminates current exemptions and requires all towing companies to register with the Michigan Public Service Commission's Motor Carrier Division. This will ensure all towing companies have had their vehicles inspected for safety within the previous year, carry a minimum amount of insurance and employ qualified drivers. It is now P.A. 111.

After all the discussion on here about associated costs and overreach with this, all that little blurb stresses is some red herring to 'ensure' some sense of safety measure from the GoverNerds PR staff. WTF?

Um... Does anybody else see any potential transparency issues with this administration and that Nerdmobile dashboard thingy?

Must just be me...

Crush Your Competition | 8 comments (8 topical, 0 hidden)

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