ASSEMBLY LOCAL GOVERNMENT COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 1785

STATE OF NEW JERSEY

DATED: DECEMBER 11, 1997

      The Assembly Local Government Committee reports favorably Senate Bill No. 1785 (1R).

      Senate Bill No. 1785 (1R) would repeal section 60 of P.L.1990, c.8 (C.17:33B-47) which directs the Commissioner of Banking and Insurance to promulgate towing and storage fee schedules for the reimbursement of towing charges and storage charges for private passenger automobiles that are damaged in accidents. By removing the reference to section 60 of P.L.1990, c.8 in section 1 of P.L.1979, c.101 (C.40:48-2.49), the bill would also provide that a municipality may regulate by ordinance the removal of all motor vehicles from public or private property by operators engaged in such practice and may include in that ordinance a schedule of fees or other charges which an operator may charge vehicle owners for towing or storage services.

      The bill requires the governing body of a municipality or county which requires the towing and storage of motor vehicles without the consent of the owners of those vehicles to adopt an ordinance or resolution setting forth a model schedule of towing and storage services which they require and the rates therefor. The bill permits the Division of Consumer Affairs to establish a model schedule for such services, and requires that, if such a model schedule is adopted it shall be provided, upon request, to any municipality or county. In addition, each governing body required to set forth a schedule must implement a procedure to receive complaints and resolve disputes arising from the required towing and storage of motor vehicles.

      The bill also makes it an unlawful practice and a violation of the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.), for any person to charge rates for the required towing and storage of motor vehicles that are discriminatory or are not usual, customary and reasonable rates in any municipality or county which is required to adopt an ordinance or resolution for the towing and storage of motor vehicles.