The Garden State Towman's
Association, Inc. is proud to announce that Senate Bill 1785, sponsored by the association
and Senator Bob Martin, was signed into law by Governor Whitman on Monday Jan. 19,
1998. The bill, which expands municipal authority over motor vehicle towing and
storage charges, went into effect immediately. In addition, the bill repeals Section
60 of the Fair Act (NJAC 11:3-38), which regulated the towing and storage fees of accident
and stolen automobiles. This act does not leave towers free to charge what they
wish, they must now follow the rate structure and guidelines put in place by their
municipalities ordinance or resolution, and/or other law enforcement regulations.
The Fair Act's towing and storage rates were set in 1991 and have never been increased
since its inception. The GSTA had been lobbying for an increase for six years to no
avail. Since the Department of Insurance in Trenton regulated the rates there was
little possibility of getting an increase because of the political climate. The
association sued the State of New Jersey to have the Fair Act overturned when the Federal
Government deregulated the trucking industry. But, the courts ruled in favor of the
state on a very controversial and complicated issue.
Bill 1785 now allows towing and recovery rates to revert to the way they were prior to
the Fair Act being enacted. This enables the towing and storage rates to be
regulated by municipalities and and the municipalities will, as they have in the past,
regulate and enforce the rates. Rate increases will now be handled by local
authorities and towers now have the ability to request a rate increase through a change in
local ordinance as needed.
The GSTA will actively pursue educating and assisting both towers and municipalities
to help make changes or to develop fair and reasonable ordinances with up to date criteria
that protects and benefits the consumer, law enforcement, and the towing industry.
The GSTA encourages all towers and municipalities who want additional information to
contact the GSTA office.
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