GSTA - Legal & Legislative Info

The GSTA strives to keep on top of all legal and legislative issues which effect our industry. We have full time legal council in Senator Bob Martin and an Executive Board active in lobbying for the rights and needs of towers.

The Senate Transportation Committee reports favorably Senate Bill No. 2759 with committee amendments.

This bill, known as “The Predatory Towing Prevention Act,” regulates the removal of vehicles that are on private property without proper authorization. This bill is intended to stop the practice of predatory towing, where a vehicle is removed without the owner’s notice or consent and the owner is charged an exorbitant fee for the vehicle’s return.

1) All tow truck operators must be registered with the Division of Consumer Affairs in the Department of Law and Public Safety;

2) The Director of the Division of Consumer Affairs (“the director”) may refuse to register or revoke the registration of any person who has committed acts of fraud, gross negligence, professional misconduct, certain crimes, or violations of this act;

3) No vehicle (except for a vehicle on private residential property) could be towed unless the area from which it is being towed is marked with a sign indicating:

(a) the purpose or purposes for which parking is authorized and the times during which such parking is permitted;

(b) that unauthorized parking is prohibited and unauthorized motor vehicles will be towed at the owner’s expense;

(d) the charges, which shall not exceed the lesser of the fee specified in the tariff on file with the director for the towing and storage of towed motor vehicles or the rate set forth by municipal ordinance; and

(e) the street address of the storage facility where the towed vehicles can be redeemed after payment of the posted charges and the times during which the vehicle may be redeemed;

4) Towing companies must provide the director with a tariff which lists all of the fees for services which the company performs;

5) The director is to establish a fee schedule based upon the average rates filed by all towing companies with principal locations in the same county;

6) Towing companies are prevented from charging greater than 150% of the average fee for towing charged in a particular county or a percentage set by the director by regulation;

7) Vehicles must be towed to a storage facility which meets certain criteria, such as hours of operation and proper security;

8) Tow trucks must display decals indicating that they are properly registered with the Division of Consumer Affairs; and

9) Towing companies are prevented from offering “kick backs” to any person who provides information about an illegally parked vehicle.

Nothing in the bill shall be construed to authorize a municipality to establish charges for towing services that are not included in the schedule of towing services for which a towing company may charge a service fee established by the director.

The bill repeals laws dealing with the licensing of towing companies under Title 39, the model schedule of fees and the charging of discriminatory fees.

The committee amended the bill to permit a towing company to charge the lesser of the rate set forth by municipal ordinance or the rate specified in the towing company’s tariff. The committee also amended the bill to provide that a municipality may not establish charges for towing services that are not included in the schedule of towing services for which a towing company may charge a towing fee established by the director. The committee amendments also deleted repealers relating to abandonment of vehicles on private property, the municipal regulation of towing services and made technical corrections to the bill. The amendments also delay the operative date of section 4 of the bill to 180 days after the effective date of the bill.

An Act concerning towing and towing operators and supplementing P.L.1960, c.39 (C.56:8-1 et seq.) and amending various parts of statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) This law shall be known and may be cited as the “Predatory Towing Prevention Act .”

a. While the majority of tow truck operators in New Jersey are reputable service providers, some unscrupulous towers are engaged in predatory practices victimizing consumers whose vehicles are parked on public streets and private property;

b. Predatory towing practices include charging unwarranted or excessive fees, particularly in connection with towing vehicles from private parking lots which do not display any warnings to the vehicle owners, or overcharging consumers for towing services provided under circumstances where the consumer either has no meaningful opportunity to withhold consent;

c. The legitimate business interests of tow truck operators and the needs of private property owners for relief from unauthorized parking must be balanced with the interest in providing appropriate protection to consumers;

d. Whatever authority exists in the law to regulate towing and towing companies is fragmented among various State agencies and local governments, so that inconsistent or inadequate regulation often results, with insufficient recourse provided under the law; and

e. Therefore, it is in the public interest to create a coordinated, comprehensive framework to establish and enforce minimum standards for tow truck operators.

“Basic towing service” means towing as defined in this section and other ancillary services as may be specified by the director by regulation.

“Contract rate” means fees for towing services established under a contract between a towing company and a State agency or political subdivision, including, but not limited to, independent authorities and instrumentalities thereof.

“Decoupling fee” means a charge by a towing company for releasing a motor vehicle to its owner or operator when the vehicle has been, or is about to be, hooked or lifted by a tower, but prior to the vehicle actually having been moved or removed from the property.

“Division” means the Division of Consumer Affairs in the Department of Law and Public Safety.

“Motor vehicle” includes all vehicles propelled otherwise than by muscular power, excepting such vehicles as run only upon rails or tracks and motorized bicycles, motorized scooters, motorized wheelchairs and motorized skateboards.

“Non-consensual towing” means the towing of a motor vehicle from private or public property without the consent of the owner or operator of the vehicle.

“Person” means an individual, a sole proprietorship, partnership, corporation, limited liability company or any other business entity.

“Person with a substantial interest” means a director, officer or partner of, or any other person having an economic interest of 10 percent or more in, an applicant for, or holder of, a registration as a towing company, or any parent or subsidiary thereof.

“Towing” means the moving or removing from public or private property or from a storage facility by a motor vehicle of a consumer’s motor vehicle that is damaged as a result of an accident or otherwise disabled, recovered after being stolen, or is parked illegally or otherwise without authorization, or the immobilization of or preparation for moving or removing of such motor vehicle, for which a service charge is made, either directly or indirectly. Dues or other charges of clubs or associations which provide towing services to club or association members shall not be considered a service charge for purposes of this definition.

“Vehicle” means any device in, upon or by which a person or property is or may be transported upon a highway.

4. (New section) a. No person shall offer to perform, or engage, or attempt to engage in the business of towing unless registered with the division.

b. An application for registration shall be made annually, or at such other interval as the director may determine, in writing to the director in the form prescribed by the director and shall be accompanied by a fee, set by the director in a reasonable amount sufficient to defray the division’s expenses incurred in administering and enforcing P.L. , c. (C. ) (pending before the Legislature as this bill).

c. The applicant shall state the complete street address of the location or locations from which the business of towing shall be conducted, indicating which is the principal location.

d. The applicant shall state the complete street address of the location of each of its storage facilities and whether each is secured or unsecured.

e. The applicant shall enumerate the types of towing services that the applicant intends to provide and a description of the vehicles, including vehicle registration number, weight, number of wheels and purpose, with which the applicant intends to provide the services.

f. The application shall include a valid original certificate of insurance from an insurer authorized to do business in the State and a schedule of insured motor vehicles that are to be utilized by the applicant, including the amounts of the garage keeper’s legal liability coverage and any “on hook” coverage as an endorsement or contained in a separate schedule, and liability insurance coverage which meets or exceeds the requirements set forth in section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

g. The applicant shall include a tariff listing the services that the applicant provides and the fee charged for each service, which meets the requirements of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill).

h. The applicant shall disclose whether the applicant or a person with a substantial interest in the applicant, or any towing company in which such person was a person with a substantial interest and serving in that capacity at the time the conduct or conviction required to be disclosed pursuant to this subsection occurred, has engaged in any of the conduct, or was convicted of a crime, specified in subsection a. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

i. The applicant shall furnish any additional information as may be required by the director.

j. If any of the information required to be included in the application changes, or if additional information should be added after the filing of the application, the applicant shall provide that information to the director, in writing, within 30 calendar days of the change or addition.

k. Upon issuance of the registration, the division shall provide the registrant with decals and accompanying notices to be affixed to each motor vehicle identified in the application as owned or leased by the registrant to be used to perform towing services.

5. (New section) a. The director may refuse to issue or may suspend or revoke, any registration issued by him upon proof that the applicant or holder of the registration or, if the applicant is an entity, a person with a substantial interest in the applicant or holder of a registration, or any towing company in which such person was a person with a substantial interest and was serving in such capacity at the time the conduct or conviction required to be disclosed pursuant to this subsection occurred:

(2) has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;

(5) has engaged in professional or occupational misconduct as may be determined by the director;

(6) has had his authority to engage in the activity regulated by the director revoked or suspended by any other state, agency or authority for reasons consistent with this section;

(7) has violated or failed to comply on more than three occasions with the provisions of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) or violated or failed to comply with the provisions of any other act or regulation administered by the director; or

(a) a crime under Chapter 11, 12, 13 14 or 15 under Title 2C of the New Jersey Statutes;

(b) motor vehicle theft or any crime involving a motor vehicle under Chapter 20 of Title 2C of the New Jersey Statutes; or

(c) any other crime under Title 2C of the New Jersey Statutes relating adversely to the performance of towing services or the storage of motor vehicles as determined by the director by regulation.

b. A final refusal to register, or the suspension or revocation of a registration shall not be made except upon reasonable notice to the applicant or registrant, and an opportunity for the applicant or registrant to be heard.

6. (New section) a. A towing company shall maintain liability insurance which meets or exceeds the requirements of this section, or such other amounts as the director may determine by regulation, including in the case of each light-medium duty tow truck, motor vehicle liability insurance coverage for the death of, or injury to, persons and damage to property for each accident or occurrence in the amount of at least $750,000 single limit, and in the case of each heavy-duty tow truck, motor vehicle liability insurance coverage for the death of or injury to persons and damage to property for each accident or occurrence in the amount of at least $1,000,000 single limit.

b. The director shall be named as an additional insured under each insurance policy required under subsection a. of this section and each policy shall provide that the issuer give the director at least 10 days written notice of its intention to cancel or not renew the policy.

c. Nothing in this section shall preclude a State agency or political subdivision, or the independent authorities or instrumentalities thereof, from requiring additional or higher liability insurance coverages or amounts with respect to contracts for towing and storage services awarded under the authority of such agency, subdivision, authority or instrumentality.

7. (New section) a. No person shall tow any motor vehicle parked for an unauthorized purpose from any privately owned parking lot, from other private property or from any common driveway without the consent of the motor vehicle owner or operator, unless the person is registered with the division pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) and there is posted in a conspicuous place at all vehicular entrances to the property which can be easily be seen by the public, a sign no smaller than 36 inches high and 36 inches wide stating:

(1) the purpose or purposes for which parking is authorized and the times during which such parking is permitted;

(2) that unauthorized parking is prohibited and unauthorized motor vehicles will be towed at the owner’s expense;

(3) the name, address, and telephone number of the towing company that will perform the towing;

(4) the charges, which shall not exceed the fee specified in the tariff on file with the director, for the towing and storage of towed motor vehicles; and

(5) the street address of the storage facility where the towed vehicles can be redeemed after payment of the posted charges and the times during which the vehicle may be redeemed.

b. A towing company shall not remove a motor vehicle from private property without the consent of the owner or operator of the vehicle, without first obtaining the written authorization from the property owner or lessee, or its employee or agent, who shall be present at the time of removal and verify the alleged violation if it occurs during normal business hours of any premises at the location operated by the property owner or lessee authorizing the removal of the vehicle, except that general authorization in writing shall be sufficient for the removal of a motor vehicle parked on private property within 15 feet of a fire hydrant, standpipe or other water source for fighting fires; in a fire lane; in a manner that interferes with the entrance to or exit from the property; or if the violation occurs at a time other than during normal business hours of the premises of the property owner or lessee authorizing the removal of the vehicle.

c. Except as provided in subsection d. of this section, the owner or person in lawful possession of private property may cause the removal of the motor vehicle parked on the property to a storage facility within a reasonable distance of the property if signs are posted on the property as required under section a. of this section and the towing company complies with the requirements of this act.

d. The provisions of subsection a. shall not apply to a motor vehicle parked on a lot or parcel on which is situated a single-family unit or an owner occupied multi-unit structure of not more than six units or in front of any driveway where the motor vehicle is blocking access to that driveway.

8. (New section) a. The director by regulation shall establish a schedule of towing and storage services for which a towing company may charge a service fee , and shall specify services that are ancillary to and included as part of basic towing services for which no fees in addition to the basic towing service fee may be charged.

b. All towing companies shall file with the division a tariff which lists the services the towing company provides and the fee that the towing company charges for each service, which fees shall be reasonable and not excessive.

(1) A towing company shall file its tariffs at least annually, in the manner prescribed by the director, and may amend the services it provides or the fees it charges for services provided by filing an amended tariff with the division, provided however that a towing company may not charge amended fees set forth in an amended tariff until the division provides confirmation of receipt of the amended tariff. A towing company may not modify its tariff more than once during any three month period, except to add or delete a service, reduce a fee or conform to the requirements of this section.

(2) A towing company’s fee for a towing service shall be presumed unreasonable and excessive if the fee exceeds 150%, or a different percentage established by the director by regulation, of the average fee for such service charged in the county of the towing company’s principal location, which figure shall be calculated based upon the fees charged for such service as reported in the tariffs filed by all towing companies with principal locations in the same county and shall be published on an Internet website in accordance with this subsection c. of this section.

(3) The presumption set forth in paragraph (2) of this subsection shall not apply until the first day of the third month after the Internet website authorized by subsection c. of this section becomes operative.

c. The division shall collect and maintain the tariffs filed pursuant to subsection a. of this section in an electronic system, and the director shall cause the tariff data to be organized and made available to the public on an Internet website in a format that enables consumers to review the fees for towing services charged by each registered towing company in the State. The electronic system shall calculate annually and make available on the website the average cost, broken down by towing service and county, of the fees for each towing service charged by the towing companies operating in each county in the State.

d. Nothing in this section shall be deemed to limit the authority of a State agency or political subdivision, or the independent authorities or instrumentalities thereof, to establish contract rates for towing and storage services in accordance with a contract awarded under the authority of such agency, subdivision, authority, or instrumentality.

9. (New section) a. No person shall tow a motor vehicle pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) to a storage facility or store such vehicle at a storage facility unless the storage facility:

(1) has a business office open to the public between 8 a.m. and 6 p.m. at least five (5) days a week, excluding holidays; and

(2) is secured and, if it is an outdoor storage facility, lighted from dusk to dawn.

b. A towing company shall provide reasonable accommodations for after-hours release of stored motor vehicles and shall not charge a release fee or other charge for releasing motor vehicles to their owners after normal business hours or on weekends.

a. To fail to affix on a motor vehicle used to provide towing services the proper decal issued by the division and a notice stating:

“This tow truck is registered with the New Jersey Division of Consumer Affairs. The driver is required to provide you with a written schedule of the fees charged for towing and storage services before providing that service to you, including those services for which there is no fee. If the fee charged is in excess of the fee listed on the schedule, please notify the Division of Consumer Affairs at ###-###-####.”

b. (1) Except as otherwise provided in paragraph (2) of this subsection, to fail to provide the person whose motor vehicle is to be towed, prior to providing any towing services, a written schedule of fees, the information contained in the notice required under subsection a. above, the following legend, and such other information as determined by the director:

“The fees set forth in the schedule may not exceed the tariff filed with the Division of Consumer Affairs. You may review the tariff on the Division’s website at XXXXX@dca.lps.state.nj.us. The filing of a tariff with the Division of Consumer Affairs does not imply endorsement of the fees and charges set forth in the tariff.”

(2) To fail to provide the schedule and information required under paragraph (1) of this subsection immediately upon being contacted by the person whose motor vehicle was towed, if that person was not present at the time the towing services were provided.

c. To make, give, or cause any undue or unreasonable preference or advantage, or undue or unreasonable prejudice or disadvantage, to any person in any particular locality, with respect to providing towing services. The provision of towing services by a club or association to its members in exchange for the payment of dues or similar membership charges, which club or association membership is generally available to the public, shall not be deemed an undue or unreasonable preference or advantage within the meaning of this section.

d. To give any benefit or advantage, including a pecuniary benefit, to any person for providing information about motor vehicles parked for unauthorized purposes on privately owned property or otherwise in connection with towing from privately owned property motor vehicles parked without authorization.

e. To fail, when so requested by the owner or operator of a vehicle subject to non-consensual towing, to release a vehicle to the owner or operator that has been, or is about to be, hooked or lifted but has not actually been moved or removed from the property when the vehicle owner or operator returns to the vehicle, or to charge the owner or operator requesting release of the vehicle more than the decoupling fee specified in the tariff.

f. To charge any fee other than any applicable contract rate or, in the absence of an applicable contract rate, the rate specified in its tariff on file with the director, or to charge a fee in an amount or for a service not listed on the tariff on file with the director at the time except as may be permitted by the director by regulation.

g. To refuse to accept for payment in lieu of cash or an insurance company check for towing or storage services a debit card, charge card or credit card if the operator ordinarily accepts such card at his place of business, unless such refusal is authorized in accordance with section 4 of P.L.2002, c.67, (C.56:13-4) as amended by P.L. , c. (C. ) (pending before the Legislature as this bill).

11. (New section) Every towing company shall retain and make available for inspection by the division for a period of three years, invoices, job orders, logs, claims for reimbursement from insurance companies and other documentation relating to towing servces performed and rates charged for the services.

12. (New section) There is created in the Department of the Treasury a special dedicated, non-lapsing fund to be known as the “Towing and Storage Administration and Enforcement Fund.” The fund shall be the depository for fees, cost recoveries and penalties collected under P.L. , c. (C. ) (pending before the Legislature as this bill). Monies deposited in the fund and the interest earned thereon shall be used for the administration of this act. The Legislature shall annually appropriate from the fund monies to the division for the administration of this act.

a. The director, pursuant to the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), may promulgate rules and regulations to effectuate the purposes of this act.

b. The division may contract with a public or private entity for the purpose of developing, administering and maintaining the registration process and the electronic data base for tariffs provided for in section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill).

14. (New section) a. The provisions of this act shall preempt any political subdivision from regulating, requiring or issuing any registration or license of any towing company.

This section shall not limit the existing authority of a political subdivision to:

(1) license and collect a general and nondiscriminatory tax upon all businesses; or

(2) impose any additional requirements or conditions as part of any contract to perform towing and recovery services for that jurisdiction.

b. The provisions of this act shall not be deemed to limit the authority of the new Jersey Turnpike Authority or the south Jersey Transportation Authority to establish rules and regulations governing the provision of towing and storage services on the roadways and properties under each entity’s respective control.

15. (New section) a. It is an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate any provision of this act.

b. In addition to any penalties or other remedies provided in P.L.1960, c.39 (C.56:8-1 et seq.), the director may order a towing company that has billed a consumer or insurer an amount in excess of the fee specified in its filed tariff for the service provided to reimburse the consumer or insurer for the excess cost with interest.

2. a. An operator awarded a contract for towing and storage services by the New Jersey Turnpike Authority shall register with the authority. In order to be eligible to bid for the award of such a contract, an operator shall have registered with the Division of Consumer Affairs in the Department of Law and Public Safety pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon issuance of the registration, the authority shall provide the operator with two decals and accompanying notices for each tow truck owned or leased by that operator and to be used under the terms of the contract. The decals and the accompanying notices, which shall be of a distinctive design and color, shall be conspicuously displayed on the exterior of each such tow truck in a manner and location prescribed by the authority.

The decals shall set forth a specific registration number for each registered tow truck. The notices shall include a statement indicating substantially the following: “This tow truck is registered with the New Jersey Highway Authority. The driver is required to provide you with a written schedule of the fees charged for towing and storage services before providing that service to you, including those services for which there is no fee. If the fee charged is in excess of the fee listed on the schedule, please notify the authority or the New Jersey Division of Consumer Affairs.” An operator shall file a copy of the schedule of fees with the authority. Upon request of the Division of Consumer Affairs in the Department of Law and Public Safety, the authority shall provide a list of the registered tow trucks to the division, in addition to a copy of the schedule of fees.

b. Prior to providing any towing services, a driver of a tow truck shall provide the person whose vehicle is to be towed a written schedule of fees and shall recite the information contained in the notice.

c. An operator who fails to display the decals and notices required by subsection a. of this section or the driver of a tow truck who fails to provide a person to be towed the written schedule of fees or recite the information contained in the notice prior to providing a towing service as required by subsection b. of this section shall be subject to a fine of $300 for the first offense. For the second and any subsequent offense the operator or the driver, as the case may be, shall be subject to a fine of $600.

d. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any person to charge a fee in excess of the fee listed in the written schedule of fees provided pursuant to subsection a. of this section.

e. If an operator or the driver of an operator’s tow truck is convicted a third time for violation of any provisions of this section, the authority may, in its discretion, terminate the operator’s contract for towing and storage services with the authority.

3. a. An operator awarded a contract for towing and storage services by the South Jersey Transportation Authority shall register with the authority. In order to be eligible to bid for the award of such a contract, an operator shall have registered with the Division of Consumer Affairs in the Department of Law and Public Safety pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill). Upon issuance of the registration, the authority shall provide the operator with two decals and accompanying notices for each tow truck owned or leased by that operator and to be used under the terms of the contract. The decals and the accompanying notices, which shall be of a distinctive design and color, shall be conspicuously displayed on the exterior of each such tow truck in a manner and location prescribed by the authority.

e. If an operator or the driver of an operator’s tow truck is found to have convicted a third time for violation of any provisions of this section, the authority may, in its discretion, terminate the operator’s contract for towing and storage services with the authority.

3. a. An application for tow truck registration shall contain the following information:

(3) The location of any garage, parking lot, or other storage area, where motor vehicles or other objects moved by the towing company may be stored or placed;

(4) A valid certificate of insurance and a schedule of insured vehicles that are to be utilized by the towing company from an insurer authorized to do business in the state, including the amounts of the garage keeper’s legal liability coverage and any “on hook” coverage as an endorsement or contained in a separate schedule, and liability insurance coverage, including in the case of each light-medium duty tow truck, motor vehicle liability insurance coverage for the death of, or injury to. persons and damage to property for each accident or occurrence in the amount of at least $750,000 single limit, and in the case of each heavy-duty tow truck, motor vehicle liability insurance coverage for the death of, or injury to, persons and damage to property for each accident or occurrence in the amount of at least $1,000,000 single limit; and

(5) Documentation of the manufacturer’s gross vehicle weight rating for each tow truck.

[If a system for the licensure of towing companies has been established pursuant to section 4 of P.L.1999, c.396 (C.39:3-84.9), the] The towing company shall include in the application a copy of the [license] registration issued to it pursuant to [that section] section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

Except as otherwise provided in this act, the registration for these vehicles shall be issued and renewed pursuant to the provisions of this Title.

“Charge card” means a credit card on an account for which no periodic rate is used to compute a finance charge.

“Credit card” means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain credit.

· The Office of Legislative Services determines that this bill has an indeterminate minimal fiscal impact to the State as the bill establishes that the Director of the Division of Consumer Affairs may charge registrants a fee to offset the administrative costs associated with this bill.

· Regulates certain tows and requires licensure of towing companies through “The Predatory Prevention Act.”

· Requires tow truck operators to register with the Director of the Division of Consumer Affairs and pay a fee as prescribed by the director to offset administration costs.

· Establishes the “Towing and Storage Administration Fund” and instructs the Legislature to annually appropriate money from the fund to pay for the administration of this act.

Senate Bill No. 2759 (1R) of 2007 or the “The Predatory Prevention Act,” regulates the removal of vehicles that are on private property without proper authorization. This bill is intended to stop the practice of predatory towing, where a vehicle is removed without the owner’s notice or consent and the owner is charged an exorbitant fee for the vehicle’s return.

This bill requires that all tow truck operators be registered with the Division of Consumer Affairs in the Department of Law and Public Safety. They must also provide the Director of the Division of Consumer Affairs with a tariff which lists all of the fees for services which the company performs.

This bill also established a set of guidelines that tow truck operators are to abide by as a licensed State tow operator. The bill also requires the Director of the Division of Consumer Affairs to establish a fee schedule based upon the average rates filed by all towing companies with principal locations in the same county.

The Office of Legislative Services determines this bill has an indeterminate minimal fiscal impact to the State. The bill establishes that the Director of the Division of Consumer Affairs may charge registrants a fee to offset the administrative costs associated with this bill.

CONIGLIO MEASURE WOULD BRING MAJOR REFORMS TO TOW COMPANIES

TRENTON - The Senate today passed legislation sponsored by Senator Joseph Coniglio that would provide consumers with new protections from what they say are overzealous and overpriced towing companies.

"There are very few limits on what towing companies are allowed to do in New Jersey," said Senator Coniglio, D-Bergen. "Drivers need to have some basic protections against those companies that prowl the streets actively looking for cars to tow and then charge an arm and a leg to release the car."

Senator Coniglio noted that the bill was crafted in response to numerous complaints of towing companies charging inflated fees and exploiting drivers by waiting in parking lots for drivers to park illegally.

"We've heard too many complaints of drivers running into a store for a few minutes, not realizing that they had parked in the wrong spot, and coming out to find their car missing," explained Senator Coniglio. "People should have some basic rights to protect them from these sorts of predatory practices."

The bill, S-2759, would set out certain conditions to be met before a car could be towed. A sign must be posted at all entrances and exits that states who is authorized to use the lot, that unauthorized parking is prohibited, the business information of the authorized towing company, including the address of the storing facility, and that charges will not exceed specified fees. Additionally, any tows would require written authorization from a site's owner or employee.

For instances when a vehicle is parked too close to a fire hydrant or in a fire line or is blocking an entrance or exit during non business hours, a general authorization in writing to tow is required.

"Often it seems like there is a 'Wild Wild West' mentality amongst towing operators, where anything goes in order to make a buck And while we want to make sure that property owners can maintain open parking for tenants and customers, there must be a logical and deliberate process to follow in order to have a car towed," added Senator Coniglio.

The bill would additionally protect drivers by stating that a towing company's fee for a towing service is presumed excessive if it exceeds 150% or a percentage established by the Division, of the average fee for the same services charged in the county of the towing company's principal location. The bill would also prohibit a motor vehicle from being towed to a storage facility unless it has business hours of 8 a.m. to 6 p.m. at least five days a week, is secured and has reasonable accommodations for after-hours release for no additional fee.

"These companies feel they have the right to fleece the people they unwillingly tow. For some families, the hundreds of dollars it takes to release their car can mean not being able to pay all of the rent for the month. These fees need to be more reasonable and less arbitrary," said Senator Coniglio.

Any tower would be required to register with the Division of Consumer Affairs annually, under the provisions of the bill. Registered companies would be required to display a decal on all vehicles used by that company. The Division could deny registration to companies with a history of gross or repeated negligence, incompetence, or misconduct, to have previously violated the provisions of the bill three or more times, or those convicted of any crime involving a vehicle.

The bill passed the Senate by a vote of 36-1 and the Assembly by a vote of 79-1 and now goes to the Governor's desk for his signature.

A3939 The Daniel MacKay Law

ASSEMBLY, No. 3939

STATE OF NEW JERSEY

212th LEGISLATURE

INTRODUCED JANUARY 25, 2007

Sponsored by:

Assemblyman JOHN J. BURZICHELLI

District 3 (Salem, Cumberland and Gloucester)

Assemblyman DOUGLAS H. FISHER

District 3 (Salem, Cumberland and Gloucester)

Co-Sponsored by:

Assemblymen Gusciora, Giblin, Stack, Payne, Assemblywoman Truitt, Assemblymen Barnes, Vas, Prieto and Green

SYNOPSIS

Daniel Mackay’s Law; requires certain information be given to next of kin of relatives killed or incapacitated in motor vehicle accident; caps certain abandoned vehicle storage fees.

CURRENT VERSION OF TEXT

As introduced.

An Act concerning motor vehicle accidents resulting in death or incapacitation to the driver or passenger, designating the act as “Daniel Mackay’s Law,” and amending R.S.39:4-131 and P.L.1964, c.81.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.39:4-131 is amended to read as follows:

39:4-131. The [division] commission shall prepare and supply to police departments and other suitable agencies, forms for accident reports calling for sufficiently detailed information with reference to a motor vehicle accident, including the cause, the conditions then existing, the persons and vehicles involved, the compliance with P.L.1984, c.179 (C.39:3-76.2e et seq.) by the operators and passengers of the vehicles involved in the accident, whether the operator of the vehicle was using a cellular telephone when the accident occurred, and such other information as the [director] chief administrator may require.

Every law enforcement officer who investigates a vehicle accident of which report must be made as required in this Title, or who otherwise prepares a written report as a result of an accident or thereafter by interviewing the participants or witnesses, shall forward a written report of such accident to the [division] commission, on forms furnished by it, within five days after his investigation of the accident.

Such written reports required to be forwarded by law enforcement officers and the information contained therein shall not be privileged or held confidential. Every citizen of this State shall have the right, during regular business hours and under supervision, to inspect and copy such reports and shall also have the right in person to purchase copies of the reports at the same fee established by section 2 of P.L.1963, c.73 (C.47:1A-2). If copies of reports are requested other than in person, an additional fee of up to $5.00 for the first three pages and $1.00 per page thereafter may be added to cover the administrative costs of the report.

The provisions of any other law or regulation to the contrary notwithstanding, reports obtained pursuant to this act shall not be subject to confidentiality requirements except as provided by section 28 of P.L.1960, c.52 (C.2A:84A-28).

When a motor vehicle accident results in the death or incapacitation of the driver or any passenger, the law enforcement officer responsible for notifying the next of kin that their relative is deceased or incapacitated, also shall inform the relative, in writing,
how to obtain a copy of the accident report required by this section and the name, address, and telephone number of the person storing the motor vehicle pursuant to section 1 of P.L.1964, c.81 (C.39:10A-1).

(cf: P.L.2001, c.161, s.2)

2. Section 1 of P.L.1964, c.81 (C.39:10A-1) is amended to read as follows:

1. a. When the State or any county, county park commission, municipality or any authority created by any thereof, hereinafter referred to as a "public agency," shall have taken possession of a motor vehicle found abandoned, such taking of possession shall be reported immediately to (1) the Chief Administrator of the Motor Vehicle Commission on a form prescribed by the administrator, for verification of ownership and (2) the National Insurance Crime Bureau.

(3) Upon receipt of verification of ownership of the vehicle from the administrator, the public agency shall within three business days provide notice of possession of the vehicle to the owner of record and the holder of any security interest filed with the administrator by telephone, mail, facsimile or electronically. The public agency may assess the person claiming the vehicle, be it the owner of record or the holder of any security interest, for the actual costs of providing the notice required under this paragraph.

(4) The public agency shall also within three business days notify the person storing the abandoned motor vehicle. The notice shall be given in the same manner as in the case of notification of the owner of record and the security interest holder and shall include the name and address of the owner of record and the holder of any security interest in the stored motor vehicle.

(5) Upon receipt of [that] the notice required by paragraph (4) of this subsection, the person storing the abandoned motor vehicle shall provide notice to the owner of record and to any security interest holder.

(a) The notice shall be by first class mail, with a certificate of mailing, and shall include a schedule of the costs imposed for storing the motor vehicle and instructions explaining how the owner of record or the security interest holder may claim the stored motor vehicle.

[If] (b) Except as provided in subparagraph (c) of this paragraph, if the person storing the motor vehicle fails to provide this notice to the owner of record and to the security interest holder within 30 days of the date on which the storer of the vehicle received the notice required under [this] paragraph (4) from the public agency, the maximum amount that person may charge the owner of record or the security interest holder for storing that motor vehicle shall be $750, provided that the owner of record or security interest holder submits a proper claim for the vehicle not later than the 30th day following the date the notice is delivered from the public agency to the person storing the motor vehicle.

(c) When a vehicle is abandoned due to the death or incapacitation of the driver or any passenger, the person storing the vehicle shall charge the owner of record or the security interest holder no more than $100 for the first 72 hours after the vehicle is placed on the premises.

(d) If the owner of record or security interest holder fails to submit a proper claim for the vehicle on or before that 30th day, the person storing the motor vehicle may charge the security interest holder reasonable costs for the removal and storage of the motor vehicle. If the notice is properly provided by the person storing the motor vehicle, that person may charge the owner of record or the security interest holder reasonable costs for the removal and storage of the motor vehicle from the date the person removed and stored the motor vehicle.

(e) The public agency may assess the person storing the abandoned motor vehicle, and the person storing the abandoned motor vehicle may assess the security interest holder, for the actual costs of providing the notices required under [this paragraph] paragraphs 4 and 5 of this subsection.

b. When such motor vehicle which has been ascertained not to be stolen and to be one which can be certified for a junk title certificate under section 3 of P.L.1964, c.81 (C.39:10A-3) shall have remained unclaimed by the owner or other person having a legal right thereto for a period of 15 business days, even if at that time the owner has not been identified as a result of efforts to make identification by the public agency or the Motor Vehicle Commission, the same may be sold at auction in a public place. If the certified motor vehicle is sold at auction prior to identification of the owner, the public agency shall document the condition of the motor vehicle in writing and with photographs prior to the sale; document the amount obtained from the sale of the motor vehicle; and notify the owner, if his name and address are identified after the sale, of the actions taken by the public agency to dispose of the motor vehicle.

c. When a motor vehicle which cannot be certified for a junk title certificate under section 3 of P.L.1964, c.81 (C.39:10A-3) remains unclaimed by the owner or other person having a legal right thereto for a period of 20 business days, the motor vehicle may be sold at auction in a public place, but shall be sold no later than 90 business days after the public agency takes possession of the vehicle, except that a waiver of the 90-day limit may be obtained for good cause from the Division of Local Government Services in the Department of Community Affairs.

d. The public agency shall give notice of a sale conducted pursuant to subsection b. or c. of this section, by certified mail, to the owner, if his name and address be known and to the holder of any security interest filed with the administrator, and by publication in a form to be prescribed by the administrator by one insertion, at least five days before the date of the sale, in one or more newspapers published in this State and circulating in the municipality in which such motor vehicle is held.

(cf: P.L.2006, c.91, s.1)

3. This act shall take effect on the first day of the fourth month following enactment.

STATEMENT

This bill would require law enforcement officers responsible for notifying next of kin that a relative has been killed or incapacitated in a motor vehicle accident to also provide that relative with written information concerning how to obtain a copy of the accident report and the name, address, and telephone number of the towing company that is storing the motor vehicle. The bill also specifies that the person storing the motor vehicle may charge the owner no more than $100 to store the vehicle during the first 72 hours after the accident.

Under current law, a public agency that takes possession of an abandoned vehicle must immediately notify the Motor Vehicle Commission (MVC). Once the MVC provides the public agency with ownership information, the public agency has three business days to notify that owner that it possesses the vehicle. The public agency also has three days to give the ownership information to the person storing the vehicle. After the person storing the vehicle receives the ownership information from the agency, the person storing the vehicle must notify the owner within 30 days. If this notification is not provided within that 30 days, the person storing the vehicle may only charge $750 storage fees. Under the bill, the person storing a vehicle which was abandoned due to the driver’s or a passenger’s incapacitation or death would be limited to charging up to $100 for storage for the first 72 hours after the accident.

This bill is to be named the Daniel Mackay Law in honor of Daniel Mackay who was tragically killed in a motor vehicle accident.

Synopsis:	Regulates certain tows and requires licensure of towing companies.
Type of Impact:	Indeterminate minimal expenditure estimated to be offset by fees.
Agencies Affected:	Department of Law and Public Safety; Division of Consumer Affairs

Office of Legislative Services Estimate
Fiscal Impact	Year 1	Year 2	Year 3
State Cost	Indeterminate - See Comments Below
State Revenue	Indeterminate - See Comments Below

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