Towing and Vehicle Storage Introductory Stakeholder Meeting

December 11, 2013

Today’s Goals

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Background▪ The Government is committed to protecting consumers and

reducing auto insurance rates.

▪ An auto insurance cost and rate reduction strategy.

▪ Target average auto insurance rate reduction of 15% over two years.

▪ Broad set of measures to achieve this target, including protection against auto insurance fraud. Regulation of towing and storage is part of this broad strategy.

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Context▪ November 2012: Ontario Automobile Insurance Anti-Fraud Task

Force:▪ Province-wide licensing for the towing industry through an Administrative

Authority.

▪ Amendments to the Repair and Storage Liens Act to reduce unreasonable storage costs for vehicles damaged in a collision.

▪ August 2013: A Policy Statement made by the Minister of Finance committed to further study.

▪ 2013 Fall Economic Statement committed to a province-wide system to oversee the towing industry, review of vehicle storage and collision repair practices.

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Context (cont’d)▪ 2013 Coroner’s Inquest:

2009 death of a driver who rear-ended a flat-bed tow truck on Highway 403.

Jury recommendations are likely to urge the government to address safety issues: driver training; improved roadside safety; regulation of the towing industry.

▪ Significant media attention.

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Let’s start the conversation…

To address:

▪Towing and Storage Explore oversight of the towing industry Potential amendments to the Repair and Storage

Liens Act

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Who we will work with

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Policing Sector

• Ontario Association of Chiefs of Police

Municipal Sector

• Association of Municipalities of Ontario• City of Toronto• City of Markham• City of Mississauga• City of Vaughan• Association of Municipal Managers,

Clerks and Treasurers of Ontario• Northwestern Ontario Municipal

Association• Federation of Northern Ontario

Municipalities• Rural Ontario Municipalities

Association

Insurance Sector

• Insurance Bureau of Canada• Canadian Association of Direct

Relationship Insurers• CANATICS• TD Insurance• RBC Insurance• State Farm Insurance• Intact Insurance

Who we will work with (cont’d)

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Other

• Fair Value Committee • Ontario Bar Association• Consumers Council of Canada• Fair Association for Victims for Accident

Insurance Reform

Towing / Automotive Sector

• Provincial Towing Association (Ontario)• Ontario Recovery Group• Canadian Automobile Association of South-

Central Ontario• Associated Canadian Car Rental Operators• Collision Industry Information Assistance• Ontario Trucking Association• Ontario Safety League• Canadian Finance and Leasing Association• Used Car Dealers Association of Canada• Trillium Automobile Dealers Association• Automotive Industries Association of

Canada• Canadian Collision Industry Forum

Inside government

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▪ Ministry of Consumer Services

▪ Ministry of Finance / Financial Services Commission of Ontario

▪ Ministry of Municipal Affairs and Housing

▪ Ministry of Transportation

▪ Ministry of Community Safety and Correctional Services

▪ Ministry of Government Services

▪ Ministry of the Attorney General

▪ Ministry of Labour

▪ Ministry of Training, Colleges and Universities

▪ Ontario Motor Vehicle Industry Council

Objectives

Consultation Process

▪ Inclusive and accessible

▪ Government is a key change agent, but not the only one

▪ Access expertise

▪ Multiple inputs to: identify issues develop solutions seek consensus on

recommendations to government

Outcomes

▪ Protect consumers

▪ Increase road safety

▪ Reduce auto insurance fraud

▪ Build on the strengths of the towing and storage industries and enhance the profession

▪ Recommendations based on a collective voice

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Key Roles and Responsibilities

▪ Government needs to… Enable experts to advise,

shape and inform a policy framework.

Bring together the right advisors and experts.

Coordinate the development of a policy framework.

▪ Stakeholders need to… Be willing to engage and

participate. Be the experts and feed

into the consultation process.

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What we know about the towing industry

▪ Towing industry in Ontario has more tow operators than any other province in Canada.

▪ About 1,200 tow-truck operators, with 3,000 drivers (Provincial Towing Association estimate).

▪ Diverse industry: Services: collision, roadside assistance, heavy/recovery towing Scale: individual operators, large operators/chains and

collectives

▪ While no overarching oversight, some areas are currently regulated: MTO / MOL training and safe work environment MTO general vehicle safety

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Municipal licensing▪ Municipal governments have authority to license and regulate businesses,

including tow truck businesses.

▪ At least seven Ontario municipalities, including Toronto, Mississauga, Brampton, London, Oro-Medonte, and Barrie, have tow truck licensing by-laws.

▪ Most: Review criminal background checks for drivers and/or owners. Impose insurance requirements. Require drivers and/or owners to provide information about their

business transactions.

▪ Other common provisions include maximum rates for towing services, minimum quality standards for towing equipment, and client information.

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Establishing Stakeholder Advisory Groups

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▪ The Ministry of Consumer Services will be establishing two advisory groups of stakeholders (one on towing; the other on vehicle storage) to participate in the next stage of consultations. Selection of stakeholders to sit on the advisory groups will be based on the following criteria:

▪ The ministry will communicate more precise details of the next stage of consultations (e.g. members of advisory group, dates for consultation meetings, etc.) once they are confirmed.

▪ If you would like to sit on one of the advisory groups, or suggest another stakeholder who would be interested, please let us know.

Process and Proposed Timing of Consultations

1. Full day consultation meetings of the advisory groups in January. Proposed timing:

Week of January 20th (tentative)

▪ Session 1: Half-day vehicle storage; half-day towing

▪ Session 2: Full day on towing

Week of January 27th (tentative)

▪ Session 3: Full-day summary meeting on towing and vehicle storage to finalize consensus recommendations for government

▪ Any additional meetings (as necessary)

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Process and Proposed Timing of Consultations (cont’d)

2. Opportunity to provide feedback at the following:

E-mail: towingandstorage@ontario.ca

3. Report back.

Ministry will report back to government and stakeholders on proposed approach and next steps.

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Thank You

▪ Please feel free to send any further comments or questions to:

towingandstorage@ontario.ca

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Panel discussion

▪Panel Discussion: “From your perspective, what do you see as the major challenges in the towing and vehicle storage industries and what can be done to better protect consumers?”

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