Bill Text: NJ A3206 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires that towing companies charge 50 percent of full storage fee if vehicle is retrieved within four hours.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-05-15 - Introduced, Referred to Assembly Consumer Affairs Committee [A3206 Detail]
Download: New_Jersey-2014-A3206-Introduced.html
Sponsored by:
Assemblyman CHARLES MAINOR
District 31 (Hudson)
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
SYNOPSIS
Requires that towing companies charge 50 percent of full storage fee if vehicle is retrieved within four hours.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning towing fees and amending P.L.2007, c.193.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.2007, c.193 (C.56:13-14) is amended to read as follows:
8. a. The director by regulation shall establish a schedule of private property and other non-consensual towing and related 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 private property or other non-consensual towing services for which no fees in addition to the basic towing service fee may be charged.
b. All fees charged for private property or other non-consensual towing services and related storage services shall be reasonable and not excessive. Such fees shall be presumptively unreasonable and excessive if they exceed by more than 25 percent, or a different percentage established by the director by regulation, the usual and customary fee charged by the towing company or storage facility for such services when provided with the consent of the owner or operator of the vehicle, or if they exceed by more than 50 percent, or a different percentage established by the director by regulation, the usual and customary fee charged for such nonconsensual towing or related storage service by other towing companies or storage facilities operating in the municipality from which the vehicle was towed. Notwithstanding the foregoing, such fees may not exceed the maximum amounts that may be charged for such services in accordance with any applicable schedule of fees by municipal ordinance adopted pursuant to section 1 of P.L.1979, c.101 (C.40:48-2.49).
(1) (Deleted by amendment, P.L.2009, c.39)
(2) (Deleted by amendment, P.L.2009, c.39)
(3) (Deleted by amendment, P.L.2009, c.39)
c. (Deleted by amendment, P.L.2009, c.39)
d. (Deleted by amendment, P.L.2009, c.39)
e. A storage service fee shall not exceed 50 percent of the usual and customary fee charged for a full day of storage service under subsection b. of this section if the motor vehicle is retrieved within four hours of the time that the vehicle was towed. A storage fee that exceeds the amount established under this subsection shall be presumed unreasonable and excessive.
(cf: P.L.2009, c.39, s.4)
2. This act shall take effect immediately.
STATEMENT
This bill requires towing companies to charge 50 percent of the full storage fee if the vehicle is retrieved within four hours of being towed. Current law requires that the fees charged by towing companies for non-consensual towing and related storage services be "reasonable and not excessive." Non-consensual towing and storage fees are presumptively unreasonable and excessive if they are 25 percent higher than the usual and customary fee that the towing company would charge when hired by a vehicle's owner. These fees also may be considered unreasonable and excessive if they are 50 percent higher than the customary fee charged by other towing companies or storage facilities operating in the municipality from which the vehicle was towed. The Director of the Division of Consumer affairs may set fees by regulation.
This bill provides that a towing company may only charge 50 percent of the usual and customary fee for a full day of storage service, if a person retrieves his or her motor vehicle within four hours of it being towed. Any amount exceeding the four-hour fee would be presumed unreasonable and excessive. Under current law, charging an unreasonable and excessive fee is an unlawful practice, under the consumer fraud act. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
