SCRA Federal vs. State Law: You May have to Follow Both
Posted May 27th, 2026 by Peter Lukevich, JD
As a lawyer from Washington State who has practiced in federal and state courts, I have learned that sometimes laws in both jurisdictions can overlap. Before discussing towing and the Servicemembers Civil Relief Act (SCRA) consider the fact that a criminal matter, like murder, assault or theft, can be tried in a federal court as well as state court. The actions of the defendant for the same bad act helps to decide in which court the matter will be heard. This holds true when talking about the and SCRA enforcement of the equivalent state laws.
Within the US, all states and territories adhere to the federal law and are subject to enforcement in their jurisdiction. Additionally, 38 states have SCRA-like or extended laws and only 12 states follow only the federal law. This is evidence of the potential exposure a towing company can experience while auctioning, selling or otherwise disposing of a vehicle and those actions can be reviewed by two different courts. Owners of record may have private right of action that I will examine in a future post.
Did you know that in some instances, a state SCRA protection might apply to a member of a State Guard/State Defense Force on State Active Duty (SAD) or their dependents? I am not talking about the National Guard! This might occur during a flood or other natural disaster event when the State Guard is mobilized. One thing to remember about a state SCRA is that it can mirror the federal SCRA or it can expand coverage and fines and penalties. Sometimes state law can have a bigger impact on a towing business..
State law is enforced by the Attorney General of each state. Whereas the federal law is enforced by the Civil Rights Division of the U.S. Department of Justice (DOJ). Cases can be brought in each jurisdiction by the state Attorneys General. For example, the Western District of Texas. What this means in short is that the weight of the federal government through the DOJ can investigate, litigate, and seek fines, penalties and reimbursement for legal fees for one violation. The impact can be financially challenging at best and lead to a tremendous interruption in your business operations.
If your state can bring an action against you under the SCRA why is the federal government involved? They may not be. In fact, if your state AG commences a lawsuit against you or your company, then the federal government may sit it out and await the results of the state court action.
As a tow company owner/manager you should not hope to get lucky and avoid potential penalties. In fact, state court outcomes can be more harsh than a result in federal court for the same violation(s). Taking reasonable steps now to determine whether a registered owner of a vehicle you intend to dispose of by whatever means is or is not an active-duty member of the US military or covered by some portion of a state law is a critical step for your business!
Service Member Data is prepared to work with you to determine which law or laws will apply to you in your state. SMD is a leader in the SCRA space and can offer you accurate, reliable, fast, and affordable results you can use to make informed decisions when it comes to the SCRA at the federal and state level.
