Can the Idaho Public Utilities Commission set safety, equipment, insurance, and operator-licensing rules for tow truck operators?

Plain-English summary

In 1993, the chairs of four Idaho legislative committees (Senate State Affairs, Senate Transportation, House Transportation and Defense, and House State Affairs) jointly asked the AG whether the Idaho Public Utilities Commission could regulate tow truck operators. The trade had grown enough in volume and visibility to attract complaints about safety, equipment, training, and insurance, and the legislature wanted to know whether existing law gave the PUC authority to set rules.

Deputy AG (under AG Larry EchoHawk's signature) walked through the Motor Carrier Act in Idaho Code Title 61, Chapter 8. The Act defines "common carriers" broadly to include for-hire motor carriers transporting persons or property, and tow trucks fit that definition: they hire out to move other people's vehicles for a fee. The PUC's general statutory authority over common carriers under Title 61, Chapters 1 and 8 extends to safety, equipment, operator qualifications, insurance, and recordkeeping requirements.

The opinion noted one significant carve-out: Idaho Code § 61-801 exempts common carriers operating entirely within a single municipality (or, in specified circumstances, the municipality plus contiguous territory) from PUC regulation. § 61-801(k)(2) specifically references taxicabs licensed or franchised by a municipality. Tow truck operators that operated entirely within a single city would fall under this municipal exemption and would be regulated, if at all, by the city instead of the PUC. Operators that crossed municipal lines or operated in unincorporated territory remained subject to PUC jurisdiction.

The AG did not take a position on whether PUC regulation would be wise as a policy matter; the question was strictly about authority. The opinion's conclusion: PUC has the authority, subject to the municipal exemption.

Currency note

This opinion was issued in 1993. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What is a "common carrier" under Idaho's Motor Carrier Act?

A motor carrier that holds itself out to provide transportation services for hire to the public, or to a substantial portion of the public, on a non-discriminatory basis. The legal opposite is a "private carrier," which transports its own goods or passengers as part of its own business (e.g., a grocery store delivery truck). A tow operator that takes any business that calls is a common carrier; an operator under exclusive contract to a single customer (a roadside-assistance club or a single dealership) might be a contract carrier rather than a common carrier.

What does the municipal exemption look like in practice?

Idaho Code § 61-801 generally exempts intra-city common-carrier operations from PUC jurisdiction on the theory that local governments are better positioned to regulate purely local transportation. Cities can license, franchise, and regulate taxis, tow trucks, and similar local services under their general municipal powers. Tow operators that operated only within a single city's limits, picking up wrecked or disabled vehicles in the city and dropping them at a city-located yard, would be regulated by the city, not the PUC. Once an operator crossed municipal limits (e.g., towed a car from a city street to a yard in unincorporated territory, or vice versa), the operator was a common carrier under PUC jurisdiction.

Who licenses tow truck operators today?

This 1993 opinion answered a 1993 question about authority. Whether the PUC actually adopted comprehensive tow truck rules and whether the legislature subsequently moved tow truck regulation to a different agency are separate questions. Operators today should check current Idaho Code Title 61 and current PUC orders, and check city licensing requirements where applicable.

Did the PUC's authority extend to consumer-protection rules like rate caps or non-consensual tow regulations?

The 1993 opinion focused on equipment, safety, operator, insurance, and recordkeeping rules, the ones the legislators specifically asked about. PUC general authority over common-carrier rates would extend to tow truck rates by analogy. Whether the PUC could regulate non-consensual tows (where a property owner authorizes the tow without the vehicle owner's consent) raises distinct due-process and consumer-protection questions that were not addressed in this opinion.

Background and statutory framework

Idaho's Motor Carrier Act in Title 61, Chapter 8 imposes registration, safety, and operating standards on for-hire motor transportation in Idaho. The PUC under Title 61, Chapter 1 has general supervisory authority over common carriers. PUC authority is statutory only and does not exceed what the legislature has granted, per Idaho State Homebuilders v. Washington Water Power Co., 107 Idaho 415, 690 P.2d 350 (1984). Once jurisdiction is established, the PUC may exercise both expressly granted and fairly implied powers necessary to give effect to the statute.

The municipal exemption in § 61-801 reflects an older policy decision to let cities handle taxis and similar local services under home-rule franchising authority. Cable television, garbage collection, taxis, and tow trucks are services historically franchised by cities under their police-power authority (Idaho Const. art. 12, § 2 and Title 50). The exemption keeps the city's franchising authority intact when the operator's geography is wholly local.

Citations

• Idaho Code Title 61, Chapter 1 (PUC general); Title 61, Chapter 8 (Motor Carrier Act)
• Idaho Code § 61-801; § 61-801(k)(2)
• Idaho State Homebuilders v. Washington Water Power Company, 107 Idaho 415, 690 P.2d 350 (1984)

Source

• Landing page: https://www.ag.idaho.gov/office-resources/opinions/
• Original PDF: https://ag.idaho.gov/content/uploads/2018/04/OP93-07.pdf

Original opinion text

ATTORNEY GENERAL OPINION NO. 93-7
Senator Mark Ricks, Chair
Senate State Affairs Committee
STATEHOUSE MAIL

Senator Dennis Hansen, Chair
Senate Transportation Committee
STATEHOUSE MAIL

Representative JoAn Wood, Chair
Representative Pam Ahrens, Chair
House Transportation and Defense Committee House State Affairs Committee
STATEHOUSE MAIL
STATEHOUSE MAIL
Per Request for Attorney General's Opinion
QUESTION PRESENTED
What authority does the Idaho Public Utilities Commission have under chapters 1
and 8 of title 61, Idaho Code, to provide for the regulation of tow trucks and require
certain standards to be adhered to such as equipment requirements, safety requirements,
operator requirements, insurance requirements, log book requirements and other
requirements as if the tow trucks were common carriers?
CONCLUSION
Tow trucks fit the statutory definition of a common carrier under the Motor
Carrier Act, chapter 8, title 61, Idaho Code. However, statute also provides that all
common carriers operating within a municipality (or in certain circumstances, within the
municipality and contiguous territory) are exempt from the Commission's regulation.
Accordingly, the Idaho Public Utilities Commission has statutory authority to prescribe
rules concerning equipment requirements, safety requirements, operator requirements,
insurance requirements, log book requirements and other requirements for tow truck
operations, unless the tow truck operations fall under the municipal exemption from the
Commission's regulation.
ANALYSIS
The Idaho Public Utilities Commission has no authority other than the statutory
authority granted to it by the legislature; it exercises a limited jurisdiction, and nothing is
presumed in favor of its jurisdiction. However, when necessary to enable the Public
Utilities Commission to exercise powers expressly granted to it, and once jurisdiction is
clear, the Idaho Public Utilities Commission is allowed all power that is either expressly
granted by statute or which may be fairly implied. See Idaho State Homebuilders v.
Washington Water Power Company, 107 Idaho 415, 418, 690 P.2d 350, 353 (1984).

Accordingly, the question to be determined is whether regulation of tow truck operations
falls within the Commission's statutory authority.
The relevant statutes are found in the Motor Carrier Act, chapter 8, title 61, Idaho
Code. In examining statutory language, there are a number of general rules of statutory
construction to keep in mind:
It is a basic rule of statutory construction that, unless the result is
palpably absurd, we must assume that the legislature means what is clearly
stated in the statute. It is also well established that statutes must be
interpreted to mean what the legislature intended the statute to mean, and
the statute must be construed as a whole. Statutory interpretation always
begins with an examination of the literal words of the statute. In so doing,
every word, clause and sentence should be given effect, if possible. The
clearly expressed intent of the legislature must be given effect and there is
no occasion for construction where the language of a statute is
unambiguous. Finally, when construing a statute, its words must be given
their plain, usual and ordinary meaning.
In the Matter of Application for Permit No. 36-7200 in the Name of the Idaho
Department of Parks and Recreation, 121 Idaho 819, 822-23, 828 P.2d 848, 851-52
(1992) (citations omitted).
The statute containing the relevant definitions is Idaho Code § 61-801, the first
section of the Motor Carrier Act. It provides, in pertinent part:
61-801. Definitions of Terms.--The following definitions shall
apply to this chapter:
a.
The term "person" means any individual, firm, copartnership,
corporation, company, association, or joint stock association, and includes
any trustee, receiver, assignee, or personal representative thereof.
b.
The term "commission" means the Idaho Public Utilities
Commission.
c.
The term "permit" means a permit issued under this chapter to
any motor carrier.
d.
The term "highway" means the public roads, highways,
streets, and ways of the state.

e.
The term "motor vehicle" means any vehicle, machine,
tractor, trailer, or semi-trailer propelled or drawn by mechanical power and
used upon the highway in the transportation of passengers and/or property
that does not include any vehicle, locomotive, or car operated exclusively
on a rail or rails.
f.
The term "common carrier" means any person, which holds
itself out to the general public to engage in the transportation by motor
vehicle in commerce in the state of Idaho of passengers or property or any
class or classes thereof for compensation, whether over regular or irregular
routes, or by scheduled or unscheduled service.
....
i.
The term "motor carrier" means common carrier, contract
carrier or private carrier.
j.
The term "transportation" includes all vehicles operated by,
for, or in the interest of any motor carrier irrespective of ownership or
contract, express or implied, together with all services, facilities and
property furnished, operated or controlled by any such carrier or carriers
and used in the transportation of passengers and/or property in commerce in
the state.
Tow truck operators are persons holding themselves out to the general public to
provide transportation services by motor vehicle in intrastate commerce. The
transportation services that they provide are towing of disabled vehicles and incidental
passenger transportation along with the disabled vehicles. They operate motor vehicles
on the highways of the state. Thus, tow truck operators squarely fall within the definition
of "common carrier" (which is one of three kinds of motor carriers defined in the act--the
other two are "contract carrier" and "private carrier").
The definitions in paragraphs (a) through (j) are the beginning of this analysis, but
not the ending. That is because paragraph (k) of Idaho Code § 61-801 contains a number
of explicit exemptions. It provides, in pertinent part:
k.
Exemptions. Notwithstanding the definition of "motor
carrier" as defined in this section, the following transportation shall be
exempt from regulation by and payment of fees to the commission:

(1)
motor vehicles employed solely in transporting school
children . . . ; or
(2)

taxicabs . . . ; or

(3)
motor vehicles owned or operated by or on behalf of
hotels and used exclusively for the transportation of hotel patrons
between hotels and local railroads or airports or other common
carrier stations; or
(4)
. . . ; or

motor vehicles controlled or operated by any farmer

(5)
motor vehicles used exclusively in the distribution of
newspapers; or
(6)
transportation of persons or property by motor vehicle
at an airport . . . ; or
(7)
transportation of persons and/or property, including
mobile and modular houses manufactured with wheels and
undercarriage as part of the substructure, but not transportation of
other houses, buildings or structures within a municipality or
territory contiguous to such municipality if such operation outside
such municipality be a part of a service maintained within the limits
of a municipality with the privilege of transfer of passengers to
vehicles within the municipality without additional fare; or
(8)
the transportation of agricultural products . . . or
livestock and livestock feed; or
(9)
motor propelled vehicles for the sole purpose of
carrying United States mail or property belonging to the United
States; or
(10)

motor carriers transporting products of the forest; or

(11) motor carriers transporting products of the mine . . . ,
except petroleum products; or
(12)

motor carriers transporting household goods . . . .

Exemption (7) is the only one of these 12 exemptions that arguably could apply to
tow truck operators. The seventh exemption, which has been amended several times, can
best be understood by examining its version and the amendments to it.
The seventh exemption first appeared in the 1951 amendment to Idaho Code
§ 61-801. Chapter 291 of the 1951 Session Laws added subsection (k) to Idaho Code
§ 61-801. The following is the seventh paragraph of the 1951 version of subsection (k),
which is the predecessor to the current version. It is reproduced once as it appears in the
session law and a second time broken by line spacing and bracketed subdivisions not
appearing in the text to assist in parsing the statute:
(7)
Transportation of persons and/or property within a
municipality or territory contiguous to such a municipality if such operation
outside such municipality be a part of a service maintained within the limits
of a municipality with the privilege of transfer of passengers to vehicles
within the municipality without additional fare;
(7)

Transportation of persons and/or property
[a] within a municipality or

[b] territory contiguous to such a municipality if such
operation outside such municipality
[i] be a part of a service maintained within the limits of
a municipality
[ii] with the privilege of transfer of passengers to
vehicles within the municipality without additional fare;
Paragraph (7) contains two municipal exemptions. The first is a "pure" municipal
exemption: All carriage of persons and/or property within a municipality is exempted
from the Public Utilities Commission's regulation. The second is an exemption for
operations in and contiguous to municipalities that are part of a service maintained within
the municipality and with a privilege of transfer within the municipality without
additional fare. Although the words "municipal bus" or "municipal bus services" never
appear in the 1951 version of paragraph (7), the plain and natural reading of paragraph
(7)'s second exemption to the general definition of common carrier would clearly apply to
municipal bus services because they are transportation of persons and/or property within
a municipality (or territory contiguous to such municipality) with the privilege of transfer
of passengers to vehicles within the municipality without additional fare. Any other kind

of transportation service qualifying under this second exemption would have to provide
for similar transfer rights to a service provided within the municipality.
Paragraph (7) was next amended in 1963 by Chapter 160 of the Session Laws.
The title to that act described the amendment to Idaho Code § 61-801 as amending that
section "BY INCLUDING THE TRANSPORTATION OF HOUSES, BUILDINGS OR
STRUCTURES WITHIN THE JURISDICTION OF THE PUBLIC UTILITIES
COMMISSION." Section 1 of the Session Law amended paragraph (7) of subsection (k)
by adding the underlined words shown below:
(7)
Transportation of persons and/or property except
transportation of any house, building or structure within a municipality or
territory contiguous to such municipality if such operation outside such
municipality be a part of service maintained within the limits of the
municipality with the privilege of transfer of passengers to vehicles within
the municipality without additional fare;
The combination of the explanation in the title to the 1963 amendment and the plain
language of the 1963 amendment itself shows that the "pure municipal" exemption and
the "contiguous municipal bus exemption" were continued in all regards but one: the
municipal exemption for housemovers was repealed. In all other regards, the two
exemptions continued as before.
Paragraph (7) was last amended in 1981, by Chapter 230 of the Session Laws.
That amendment provided:
(7)
Transportation of persons and/or property, including mobile
and modular houses manufactured with wheels and undercarriage as part of
the substructure, but not except transportation of any other houses,
buildings or structures within a municipality or territory contiguous to such
municipality if such operation outside such municipality be a part of a
service maintained within the limits of the municipality with the privilege
of transfer of passengers to vehicles within the municipality without
additional fare;
The plain and clear reading of this amendment is to clarify the existing law that the
municipal exemption applies to movement of mobile and modular homes and to further
clarify that the municipal exemption does not apply to movement of houses, buildings, or
structures.
Nothing in the original version of paragraph (7) or either of its two amendments
specifically addresses tow truck operations. Accordingly, tow truck operations may fall

under the general municipal exemption:
tow truck operations, like all other
transportation of persons and/or property not specifically addressed in paragraph (7), are
not subject to the Commission's regulation when they are conducted exclusively within
the borders of the municipality or territory contiguous to the municipality with the
privilege of transfer. However, tow truck operations that hold themselves out to the
general public to operate outside municipal limits do not fall within the exemption from
the Commission's regulation and they are common carriers subject to the regulation
prescribed by the Motor Carrier Act.
Under Idaho Code § 61-802, "it shall be unlawful for any motor carrier . . . to
operate any motor vehicle and motor transportation without first having obtained from
the Commission a permit covering such operation." Accordingly, the Motor Carrier Act
itself requires tow truck operators who do not qualify for the municipal exemption to
obtain a permit from the Commission as a condition of operating their common carrier
tow truck services.
Idaho Code § 61-802 further provides that the Commission must find that any
applicant for a permit be "fit, willing, and able properly to perform the service proposed
and to conform to the provisions of this chapter and the requirements, rules and
regulations of the commission thereunder . . . ." This statutory requirement subjects all
motor carriers to the Commission's rules concerning motor carriers.
The Motor Carrier Act provides a number of specific requirements with which
motor carriers must comply:
61-804.
Liability and Property Damage Insurance.--The
commission shall, before granting any permit to any motor carrier for
transporting persons and/or property, require such motor carrier to procure
and file with said commission liability and property damage insurance or a
surety bond . . . on each motor propelled vehicle used in transporting
persons and/or property providing for indemnity for loss or damage legally
imposed upon such motor carrier, in an amount to be determined by general
order of the commission for any personal injury suffered by one (1) person,
by or while being transported in any vehicle, and in such additional amount
as the commission shall determine, for all persons receiving personal
injury; and also in an amount as shall be determined by the commission by
general order for damage to the property of any person other than the
insured . . . .
....

61-807. Rules, Regulations and Rates.--The commission is hereby
vested with the power and authority, and it is hereby made its duty, to fix
just, fair, reasonable and sufficient rates, fares, charges, and classifications,
and to alter and amend the same, and to prescribe such rules and regulations
for common carriers as may be necessary to provide for adequate service
and safety of operation, and to require the filing of such reports and other
data with the commission as may be necessary, and to adopt any such other
rules and regulations as may be necessary to govern the relationship
between such common carriers and the traveling and shipping public; and
also to prescribe such rules and regulations for contract carriers and private
carriers as may be necessary to provide safety of operations. Such rules
and regulations as may be adopted and promulgated by the said
commission shall be adopted and promulgated by general order of such
commission or otherwise.
The specific provisions of these two sections of the code give the Commission authority
to provide requirements for equipment, safety, operators, insurance, log books, etc. The
Commission may do so by "general order," which is the pre-Administrative Procedure
Act term for what are now called rules. The Commission has done so by its adoption of
the Motor Carrier Rules, IDAPA 31.B (in the current codification, which will be
transferred to IDAPA 31.61.01000 et seq. in the new codification effective July 1, 1993).
Unless Idaho Code § 61-801 is amended to specifically address tow truck
operators in its exemptions from the general definition of common carriers subject to the
Motor Carrier Act, all tow truck operators that do not fall within the municipal
exemptions fall within the statutory definition of common carrier. They are subject to the
statutory requirement of obtaining a permit before operating outside the municipality and
are subject to the Commission's rules concerning equipment, safety requirements,
insurance, log books, etc. The Commission is, however, authorized by statute to
prescribe various classifications of common carriers. It has the statutory authority to
provide different requirements for equipment, safety, operators, insurance, log books,
etc., for tow truck operators differing from the rules for common carriers as a whole.
AUTHORITIES CONSIDERED
1.

Idaho Statutes:
Idaho Code § 61-801.
Idaho Code § 61-802.
Idaho Code § 61-804.
Idaho Code § 61-807.
1951 Idaho Session Laws, Chapter 291.

1963 Idaho Session Laws, Chapter 160.
1981 Idaho Session Laws, Chapter 230.
2.

Idaho Cases:
Idaho State Homebuilders v. Washington Water Power Company, 107 Idaho 415,
690 P.2d 350 (1984).
DATED this 27th day of May 1993.
LARRY ECHOHAWK
Attorney General

Analysis by:
MICHAEL S. GILMORE
Deputy Attorney General