Storage Regulations Come into Effect January 1, 2024

On January 1, 2024, new provincial regulations will come into effect that will regulate tow truck operators, tow truck drivers and vehicle storage operators. These new requirements are in a direct response to the numerous media stories citing unethical and criminal incidents that have occurred regarding a tow truck drivers and collision repair facilities. A couple of the stories are here and here.

Depending on how your business is structured, you may be subject to the new regulations affecting “vehicle storage operators.”

Please read this bulletin written by our legal team to see if you are captured by the new regulations. If you are captured, the bulletin includes information on how to register with the province and how to comply.

Over the past 9 months, the MVRO has been lobbying the provincial government to exempt new car dealers outright from new requirements. Our rationale was: new car dealers are not the problem.

I’m happy to report that our lobbying efforts have resulted in a good outcome. Auto dealers who do not charge for storage while a vehicle is being repaired are exempt from the regulations and subsequent registration fee. (The previous draft regulation captured ALL auto dealers that repaired vehicles whether they charged for storage or not while being repaired).

Dealers with auto body shops and in-house leasing companies would likely charge for “storage” – making them subject to the regulation. Please refer to the bulletin for more information.

It’s the MVRO’s opinion that while there are new requirements, new car dealers likely already exceed these requirements – and operate their business in such a manner that they are already compliant with the business practices the government is trying to place on vehicle storage facilities.

Sincerely,

Frank Notte

Director of Government Relations

Other Related News