To Regulate and Allow Rod Blagojevich To Tax or Not

I received an email from Daniel Hunt, the owner of Anchor Towing.

It raises some interesting questions concerning the proposed increased regulation and pretty much speaks for itself.

It seems to me that unintended consequences are all over governmental actions at all levels.

This seems to be a case in which dealing with one bad apple, which I am sure I have read about in the Northwest Herald, will increase towing costs for all towing companies in McHenry County.

There are costs and benefits.

I suspect it is rare for county board members to be faced with the type of cost/benefit questions that Mr. Hunt raises.

The Illinois Commerce Commission will charge $7.50 for every invoice tow truck companies use. That is an unrecoverable cost, because the ICC also sets maximum rates, which is what the proponents of this regulation desire.

Had the county board voted in January, my Montgomery Ward Motor Club probably still would have said they would have sent a tow truck. Its vendor probably would not have pulled out of the McHenry County market yet.

No difference for me, because the Good Samaritans of Crystal Springs Road helped me change the tire before the tow truck arrived.

But increasing the cost of a business without allowing it to recapture those costs could lead to companies going out of business.

Here is Mr. Hunt’s email:

Hello Mr. Skinner:

My name is Daniel Hunt and I am the owner of Anchor Towing Inc. based primarily out of Crystal Lake.

I have found myself knee deep in the middle of a debate in which I seem to be losing ground, so, as an avid reader of yours I am looking for your opinion on this particular area.

Mr. Nick Provanzano had introduced the County Board to a resolution opting the county to have its Towing overseen by the Illinois Commerce Commission.

This may not sound like much at first but in reality the ramifications on the local business man is truly ridiculous.

Mr. Provanzano stated that a Lake County company was coming into McHenry county and over charging our citizens for towing. I believe that that in itself is wrong and most certainly would have to agree something should be done.

The ICC currently charges the rates I am attaching, please look these rates over and let me know what you think.

This resolution was to be passed in the Jan ’08 Board meeting but thankfully I was able to speak for 3 minutes and put some doubt in this seriously ill-informed board.

I also am attaching a .txt file that I forwarded to the Law and Justice Committee.

On top of all the fees associated with the ICC, the only place to apply is either Des Plaines, Illinois, or Springfield.

All application fees are NON-Refundable and none of the money that the ICC charges would ever see the light of day in McHenry County.

Please let me know what you think.

Sincerely,
Daniel Hunt 815-693-8501

Hunt’s statement follows:

Daniel Hunt
Anchor Towing Inc.
90 East St. Crystal Lake, IL 60014

Dear Board Members / Elected Officials:

I am a small towing business located in McHenry County. I have been in business for 8 years and I employ 5 people in my business. I strongly urge you to research the ramifications of allowing the ICC to regulate tow operations in the County. There are some severe requirements and restrictions that are imposed by the ICC if they obtain control over the towing operations. These requirements and restrictions will, without a doubt, cause an adverse effect on towing operations and our business in general.

Please find attached, just a few of the pages of the application that I received from the Illinois Commerce Commission for licensing.

There are fifty (50) or so more pages of regulations that the ICC imposes on owners/operators. Mr. Provenzano has led the charge to defend the illegal parker / law breaker. However, Mr. Provenzano has not provided information to any of us demonstrating the huge negative impact this resolution will have on many local businessmen / businesswomen.

If The McHenry County Board passes the resolution allowing the ICC to control towing operations, each company must apply to obtain a license at a cost of $900.00 biennial (which of course is non-refundable). Additionally, the ICC charges a fee for each driver and dispatcher at a cost of $90.00 then it drops to $60.00 for renewal.

The ICC would also have the right to inspect all financial records of the company, at any time they wish.

The problem here is that not only do they want complete control and observation of all of my relocation towing records, but they also demand any other business done also be tracked, recorded, and observed by them as well.

They would like all of this information on demand.

This is the I.R.S.

Ten-fold.

The ICC will also force me to use a Pre-printed ICC tow Invoice for every relocation that I would do. Although I pay to have professional invoices printed now, I would have no choice but to purchase the ICC’s.

The ICC would charge me a mind boggling $ 7.50 per Invoice. This on top of all of the other non-refundable money, the decrease in price, and the replacement of all the signs throughout the county, certainly seems beyond my grasp (financially).

This is not Cook County, we do not need to be micro-managed.

McHenry County is strong enough to handle this so called “problem” without the aid of any regulatory agency.

The ICC itself wishes not to be involved in counties with populations of less than one million.

However, they are required by law to become involved when summoned, as in this case.

The towing business is competitive.

Like any other business, we make our money from repeat and referral customers. If a client is overcharged, not only will they no longer use my services, but they will also spread the word. Most operators are honest and hard-working people.

They are the people that respond when you are in an accident and need some assistance, or when you come out to your car in sub-zero weather. If this resolution is passed, it will adversely affect our businesses and the services we are proud to provide, parking management being one of them.

If there is a bad apple out there, it can be dealt with other than regulating the entire industry. You don’t throw away the whole bushel because of one bad apple.

Thank you for taking the time to read this and I certainly hope you consider all the ramifications if this resolution is passed.


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