S3222

An Act concerning the release of stolen motor vehicles by towing companies and amending P.L.2007, c.193.

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

1. Section 10 of P.L.2007, C.193 (C.56:13-16) is amended to read as follows:

10. It shall be an unlawful practice for any private property towing company or for any other towing company that provides non-consensual towing services:

a. (Deleted by amendment, P.L.2009, c.39)

b. (Deleted by amendment, P.L.2009, c.39)

c. (Deleted by amendment, P.L.2009, c.39)

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 private property towing of motor vehicles parked without authorization or during a time at which such parking is not permitted;

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, unless the vehicle subject to non-consensual towing has been authorized to be towed by a law enforcement officer of this State, or any political subdivision of the State, while in the actual performance of the officer's duties and as deemed appropriate for public safety, or to charge the owner or operator requesting release of the vehicle an unreasonable or excessive decoupling fee. Such a fee shall be presumptively unreasonable and excessive if it exceeds by more than 25 percent, or a different percentage established by the director by regulation, the usual and customary decoupling fee charged by the towing company for a vehicle subject to consensual towing, or if it exceeds by more than 50 percent, or a different percentage established by the director by regulation, the usual and customary decoupling fee charged for vehicles subject to non-consensual towing by other private property towing companies operating in the municipality in which the vehicle was subjected to non-consensual towing;

f. (1) To charge a fee for a private property or other non-consensual towing or related storage service not listed on the schedule of services for which a fee may be charged as established by the director except as may be permitted by the director by regulation; or

(2) To charge an unreasonable or excessive fee;

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); [or]

h. To monitor, patrol, or otherwise surveil a private property for the purposes of identifying vehicles parked for unauthorized purposes and towing a motor vehicle parked for an unauthorized purpose from such private property without having been specifically requested to tow such vehicle by the owner of the property; or

i. To directly charge the owner of a stolen motor vehicle a fee to release the recovered vehicle from a storage facility if the owner of the recovered vehicle provides a copy of the stolen vehicle police report to the towing company.

(1) If the owner of a stolen motor vehicle has been contacted by law enforcement regarding the recovery of the owner’s vehicle, the owner of the recovered vehicle shall have 72 hours to retrieve the vehicle from a storage facility without incurring a direct fee. If 72 hours have passed and the owner of the recovered vehicle has not retrieved the vehicle, the towing company may charge the owner a fee for the days the vehicle has been kept at the storage facility beyond the 72-hour period.

(2) Notwithstanding paragraph (1) of this subsection, any fee to release the recovered vehicle from a storage facility shall be paid by the insurance carrier insuring the vehicle or, if the vehicle is not insured, by the New Jersey Motor Vehicle Commission. The insurance carrier of the recovered vehicle may pay the fee to release the recovered vehicle directly to the towing company or may reimburse the vehicle owner for the cost.

[i.] j. Nothing contained in any provision of the "Predatory Towing Prevention Act," P.L.2007, c.193 (C.56:13-7 et seq.) shall be construed to prevent a towing company from charging a reasonable fee for storage of a vehicle that has been subject to non-consensual towing authorized by a law enforcement officer of this State or by any political subdivision of this State. Nothing contained in any provision of the "Predatory Towing Prevention Act," P.L.2007, c.193 (C.56:13-7 et seq.) shall be construed to prevent a towing company from charging fees for non-consensual towing or related storage services in accordance with a duly-authorized fee schedule established by a municipality or other political subdivision of this State with respect to a vehicle that has been subject to non-consensual towing authorized by a law enforcement officer of this State or the political subdivision, and there shall be a rebuttable presumption that fees charged in accordance with a fee schedule are not unreasonable or excessive.

For the purposes of this subsection, non-consensual towing shall be considered to be authorized by a law enforcement officer of this State or a political subdivision if the law enforcement officer or an agent or employee of the political subdivision initiates, directs, orders, or requests the non-consensual towing of the vehicle; and a municipal fee schedule shall be considered duly authorized if it has been established by municipal ordinance or resolution or by contract between the municipality and the towing company which conforms to the requirements of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) and any related regulations.

(cf: P.L.2018, c.165, s.3)

2. This act shall take effect immediately.

STATEMENT

This bill prohibits towing companies from requiring the owner of a stolen motor vehicle to pay a fee to release the vehicle from a storage facility.

With the rise of motor vehicle thefts in the State, every effort should be made to assist owners in recovering their stolen vehicles. Unfortunately, owners facing a financial hardship cannot pay for the release of a recovered vehicle from a towing company’s storage facility because they cannot afford the fee charged by the towing company. Under this bill, the “Predatory Towing Prevention Act” is amended to prohibit a towing company from charging this fee to the owner of a stolen motor vehicle so long as the owner provides a copy of the stolen vehicle police report to the towing company. If the owner of a stolen motor vehicle has been contacted by law enforcement regarding the recovery of the owner’s vehicle, the owner of the recovered vehicle will have 72 hours to retrieve the vehicle from a storage facility without incurring a direct fee. If 72 hours have passed and the owner of the recovered vehicle has not retrieved the vehicle, the towing company may charge the owner a fee for the days the vehicle has been kept at the storage facility beyond the 72-hour period.

Notwithstanding any fee incurred by the 72-hour requirement, any fee to release the recovered vehicle from a storage facility will be paid by the insurance carrier insuring the vehicle or, if the vehicle is not insured, by the State Motor Vehicle Commission. The insurance carrier of the recovered vehicle may pay the fee to release the recovered vehicle directly to the towing company or may reimburse the vehicle owner for the cost.