Bill Text: NJ S3374 | 2022-2023 | Regular Session | Enrolled
Bill Title: Provides that operator, owner, lessor, or lienholder of vehicle may be responsible for certain towing and storage fees; applies retroactively.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-08-07 - Approved P.L.2023, c.132. [S3374 Detail]
Download: New_Jersey-2022-S3374-Enrolled.html
§3
Note to §§1,2
An Act concerning fees charged for 1[non-consensual] certain1 towing 1and storage1 of motor vehicles and amending 1[P.L.2007, c.193] 1 2[various parts of the statutory law1] P.L.2007, c.193 and N.J.S.2A:44-212.
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.
i. 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.
A towing company 2[may] shall only2 require that reasonable fees 1, charged in accordance with a duly authorized fee schedule established by a municipality or other political subdivision of this State, and1 charged for 1[such]1 towing1, authorized by a law enforcement officer of this State or by a political subdivision of this State,1 or related storage services be paid by the operator, owner, lessor, or lienholder of the vehicle prior to the towing company's release of the vehicle. In the event the owner or operator of the vehicle defaults on payments to the lessor or lienholder of the vehicle, the lessor or lienholder shall be responsible for these reasonable towing and related storage fees.
1Notwithstanding the provisions of P.L.1964, c.81 (C.39:10A-1 et seq.), or any other law, rule, or regulation to the contrary, a towing company shall notify the operator, owner, lessor, 2[or] and2 lienholder of a vehicle that has been subject to non-consensual towing, authorized by a law enforcement officer of this State or a political subdivision of this State, and related storage services within 30 days of the vehicle being towed and arriving at the towing company lot. If a towing company fails to notify the operator, owner, lessor, 2[or] and2 lienholder of the vehicle within 30 days, the towing company may charge a maximum storage fee of $750, and the towing company shall be responsible for all additional towing or related storage services.
Notwithstanding any provision of this subsection to the contrary, the maximum liability for storage fees for matters pending prior to the date of enactment of P.L. , c. 2[(C. )]2 (pending before the Legislature as this bill), shall not exceed $5,000. Towing fees for matters pending prior to the date of enactment of P.L. , c. 2[(C. )]2 (pending before the Legislature as this bill) shall not be subject to any fee limitation, provided that such fees remain reasonable and are charged in accordance with a duly authorized fee schedule established by a municipality or other political subdivision of this State.1
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)
12. N.J.S.2A:44-21 is amended to read as follows:
2A:44-21. A garage keeper who shall tow, store, maintain, keep, or repair a motor vehicle or furnish gasoline, accessories or other supplies therefor, at the request or with the consent of the owner or [his] the owner's representative, or at the request of a law enforcement officer of this State or any political subdivision of this State, shall have a lien upon the motor vehicle or any part thereof for the sum due for such towing, storing, maintaining, keeping, or repairing of such motor vehicle or for furnishing gasoline or other fuel, accessories or other supplies therefor, and may, without process of law, detain the same at any time it is lawfully in his possession until the sum is paid. A motor vehicle is considered detained when the owner or person entitled to possession of the motor vehicle is advised by the garage keeper, by a writing sent by certified mail return receipt requested to the address supplied by the owner or person entitled to possession of the motor vehicle, that goods or services have been supplied or performed, and that there is a sum due for those goods or services.
The lien shall not be superior to, nor affect a lien, title or interest of a person held by virtue of a prior conditional sale or a prior chattel mortgage properly recorded or a prior security interest perfected in accordance with chapter 9 of Title 12A of the New Jersey Statutes.
A garage keeper 2[may] shall only2 require that reasonable fees, charged in accordance with a duly authorized fee schedule established by a municipality or other political subdivision of this State, and charged for non-consensual towing authorized by a law enforcement officer of this State or by a political subdivision of this State or for related storage services be paid by the operator, owner, lessor, or lienholder of the vehicle prior to the towing company's release of the vehicle. In the event the owner or operator of the vehicle defaults on payments to the lessor or lienholder of the vehicle, the lessor or lienholder shall be responsible for these reasonable towing and related storage fees.1
(cf: P.L.1998, c.122, s.1)
2[13. Section 79 of P.L.2003, c.89 (C.39:3-29.1a) is amended to read as follows:
79. a. Upon the issuance of a summons for failing to possess or exhibit an insurance identification card in violation of R.S.39:3-29, the violator or registrant shall have 24 hours from the time of the citation to provide the issuing law enforcement agency with the insurance identification card, or other satisfactory proof of insurance. Failure to provide the insurance identification card or other satisfactory proof of insurance within the 24-hour time frame shall result in the issuance of a warrant for the immediate impoundment of the vehicle that was being operated when the summons was issued. A motor vehicle impounded pursuant to the provisions of this subsection shall be removed to a storage space or garage. The registrant shall be responsible for the cost of the removal and storage of the impounded motor vehicle.
b. (1) If the registrant fails to claim a motor vehicle impounded pursuant to subsection a. of this section and pay the reasonable costs of removal and storage by midnight of the 30th day following impoundment, along with a fine of $100 to cover the administrative costs of the municipality wherein the violation occurred, and after a hearing, the municipality may sell the motor vehicle at public auction. The municipality shall give notice of the sale by certified mail to the registrant of the motor vehicle and to the holder of any security interest filed with the New Jersey Motor Vehicle Commission, and by publication in a form to be prescribed by the 1[director] chief administrator1 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 the motor vehicle has been impounded.
(2) At any time prior to the sale, the registrant or other person entitled to the motor vehicle, including the lessor or the lienholder of the motor vehicle, may reclaim possession of it upon providing satisfactory proof of motor vehicle liability insurance coverage and payment of the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties [; provided, however, if the other person entitled to the motor vehicle is a lessor or the holder of a lien on the motor vehicle, he may reclaim the motor vehicle without payment. In such cases, the registrant] . The registrant or other person entitled to the motor vehicle, including the lessor or the lienholder of the motor vehicle, shall be liable for all outstanding costs, fines and penalties, and the municipality shall have a lien against the property and [income of that registrant] the income of the registrant or other person entitled to the motor vehicle, including the lessor or the lienholder of the motor vehicle, for the total amount of those outstanding costs, fines and penalties.
(3) Any proceeds obtained from the sale of a motor vehicle at public auction pursuant to paragraph (1) of this subsection in excess of the amount owed to the municipality for the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties shall be returned to the registrant of the vehicle, or other person entitled to the motor vehicle, including the lessor or lienholder of the motor vehicle.1
(cf: P.L.2003, c.89, s.79)]2
2[14. Section 4 of P.L.1995, c.286 (C.39:3-40.3) is amended to read as follows:
4. a. A motor vehicle subject to the provisions of [this act] P.L.1995, c.286 (C.39:3-40.1 et seq.) may be impounded by any law enforcement officer if the registrant:
(1) knowingly permits an unlicensed driver to operate that motor vehicle;
(2) operates or permits the operation of that motor vehicle without a valid temporary registration or valid temporary registration plates as authorized under section 3 of P.L.1995, c.286 (C.39:3-40.2); or
(3) fails to surrender a registration certificate and registration plates in accordance with the provisions of subsection b. or c. of section 2 of P.L.1995, c.286 (C.39:3-40.1).
A motor vehicle impounded under the provisions of this subsection shall be removed to storage space or garage and its registration certificate and registration plates seized. The registrant shall be responsible for the cost of the removal and storage of the impounded motor vehicle.
b. (1) If the registrant fails to claim the motor vehicle and pay the reasonable costs of removal and storage by midnight of the 30th day following impoundment, along with a fine of $50 to cover the administrative costs of the municipality wherein the violation occurred, the municipality may sell the motor vehicle at public auction. The municipality shall give notice of the sale by certified mail to the registrant of the motor vehicle and to the holder of any security interest filed with the [director] New Jersey Motor Vehicle Commission, and by publication in a form to be prescribed by the 1[director] chief administrator1by 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 the motor vehicle has been impounded.
(2) At any time prior to the sale, the registrant or other person entitled to the motor vehicle , including the lessor or the lienholder of the motor vehicle, may reclaim possession of it upon payment of the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties [; provided, however, if the other person entitled to the motor vehicle is a lessor or the holder of a lien on the motor vehicle, he may reclaim the motor vehicle without payment. In such cases, the violator] . The registrant or other person entitled to the motor vehicle, including the lessor or lienholder of the motor vehicle, shall be liable for all outstanding costs, fines and penalties, and the municipality shall have a lien against the property and [income of that violator] the income of the registrant or other person entitled to the motor vehicle, including the lessor or lienholder of the motor vehicle, for the total amount of those outstanding costs, fines and penalties.
(3) Any proceeds obtained from the sale of a motor vehicle at public auction pursuant to paragraph (1) of this subsection in excess of the amount owed to the municipality for the reasonable costs of removal and storage of the motor vehicle and any outstanding fines or penalties shall be returned to the registrant of the vehicle, or the other person entitled to the motor vehicle, including the lessor or lienholder of the motor vehicle.1
(cf: P.L.1995, c.286, s.4)]2
1[2.] 2[5.1] 3.2 This act shall take effect immediately but shall be retroactive to October 18, 2008.
Provides that operator, owner, lessor, and lienholder of vehicle may be responsible for certain towing and storage fees; applies retroactively.
