NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8858
SPONSOR: Romero TITLE OF BILL:
An act to amend the general business law, in relation to setting maximum
rates that may be charged for the towing and subsequent storage of a
motor vehicle
SUMMARY OF PROVISIONS:
Section 1 of this legislation would add to section 399-xxx of the gener-
al business law, a maximum tow and storage rate for passenger vehicles.
An exception applies for participation in towing contracts in place
before the need for the towing of such vehicles exists, provided that
ownership of such vehicles is with the individual who entered into such
contract.
Section 2 of this legislation would add to section 399-xxxx of the
general business law, a maximum tow and storage rate for large vehicles.
An exception applies for participation in towing contracts in place
before the need for the towing of such vehicles exists, provided that
ownership of such vehicles is with the individual who entered into such
contract.
JUSTIFICATION:
Legislation that sets a maximum tow and storage rate for passenger and
large vehicles is icing overdue. New York State ranks a low 40th out of
51 states in towing consumer protections, lacking crucial safeguards
found elsewhere in the U.S. Predatory towing often involves excessive,
unjustified towing and storage fees set at the sole discretion of towing
companies. Towing companies often charge a combination of administra-
tive, expressway, fuel surcharge, notification, gate, release, and
special equipment fees, which can quickly add up to thousands of dollars
in profits for the company to the detriment of consumers.
Establishing a maximum tow and storage rate would prevent consumers from
being subjected to the exploitative practices of towing companies. This
legislation would ensure fair and transparent pricing, fostering trust
in towing practices while safeguarding consumers from undue financial
hardship. New York City has recognized the burden placed on consumers in
the absence of regulatory oversight and has established maximum rates
for towing and storage. Vehicles weighing 10,000 pounds or less are
subject to a maximum tow rate of $125, while those over 10,000 pounds
have a $140 cap. Storage fees are capped at $25 per day for the first
three days and $27 per day thereafter. This legislation aims to build on
New York City's example by establishing comparable rates and regulations
at the state level, ensuring consistent consumer protections across New
York. While the prevalence of towing may be higher in New York City,
that does not diminish the need for statewide protections. Towing issues
are not absent in New York State and the impact on the affected individ-
ual can be just as severe. The role of the legislature is not to wait
for a crisis to reach NYC-level proportions, but to proactively safe-
guard constituents from preventable harm.
SOCIAL JUSTICE IMPACT
This legislation promotes economic equity by protecting our working-
class communities, who are disproportionately impacted by predatory
towing practices, from excessive and often hidden fees. By establishing
clear, statewide limits on towing and storage charges, this bill ensures
fair treatment for all New Yorkers, regardless of income or geography,
and helps prevent financial hardship caused by unjust or overzealous
vehicle impoundment charges.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
8858
2025-2026 Regular Sessions
IN ASSEMBLY
June 9, 2025
___________
Introduced by M. of A. ROMERO -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to setting maximum
rates that may be charged for the towing and subsequent storage of a
motor vehicle
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 399-xxx to read as follows:
3 § 399-xxx. Passenger car towing rates. 1. (a) For the purposes of this
4 section, a "passenger car" is a vehicle with a maximum gross vehicle
5 weight under forty-five hundred pounds.
6 (b) Except as provided in subdivision two of this section or any other
7 provision of law, charges for the towing of passenger vehicles shall not
8 exceed one hundred dollars plus all tolls required to be paid while
9 towing the vehicle. If a motor vehicle has been booted by a person duly
10 licensed to do so in a private lot and such vehicle is subsequently
11 towed, no additional charge may be imposed for the towing of such vehi-
12 cle.
13 (c) The rates in this section shall not apply to the towing of motor
14 vehicles pursuant to a contract which was in existence prior to the need
15 for the towing of such vehicles, provided that such motor vehicles are
16 either owned or leased by the person who entered into such contract.
17 (d) The provisions of this section shall not apply to cities having a
18 population of one million or more.
19 2. Charges for the towing of disabled passenger vehicles from an
20 arterial roadway by an arterial tow permittee shall be one hundred twen-
21 ty-five dollars for the first ten miles or fraction thereof, four
22 dollars for each additional mile or fraction thereof, and all tolls
23 required to be paid while towing such vehicle.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11787-01-5
A. 8858 2
1 3. Except as otherwise provided, charges for storage of towed vehicles
2 shall not exceed twenty-five dollars for each twenty-four-hour period or
3 fraction thereof for the first three days of storage and twenty-seven
4 dollars for the fourth day of storage and each day thereafter.
5 4. (a) Where unusual preparation is required before a vehicle can be
6 towed, additional charges may be imposed not to exceed twelve dollars
7 per tow truck for each quarter hour or part thereof, provided, however,
8 that no such charge may be imposed or collected for the towing of a
9 vehicle involved in an accident from the scene of such accident. Unusual
10 preparation includes winching or righting a vehicle or any other prepa-
11 ration necessary to put the vehicle in a position where it can be hooked
12 or raised to the tow truck.
13 (b) Notwithstanding paragraph (a) of this subdivision, a towing compa-
14 ny which has towed a vehicle to its storage facilities may charge an
15 additional amount not to exceed twenty-five dollars for the positioning
16 of such vehicle for removal from such storage facilities by the tow
17 truck of another towing company that is capable of towing three or more
18 vehicles simultaneously.
19 5. (a) A tow truck operator shall not require the payment of any fee
20 or charge for towing and storage of a vehicle, or any fee or charge
21 directly or indirectly related to towing and storage of a vehicle, that
22 is not specifically authorized by law or rule.
23 (b) A charge for the towing and storage of vehicles shall not be
24 imposed by any person who does not have a license to engage in towing,
25 as required by section five hundred one of the vehicle and traffic law,
26 or whose vehicle is not registered as a tow truck, as required by
27 section four hundred one-b of the vehicle and traffic law, at the time
28 that the towing and storage services are performed.
29 § 2. The general business law is amended by adding a new section 399-
30 xxxx to read as follows:
31 § 399-xxxx. Large vehicle towing rates. 1. (a) For the purposes of
32 this section, a "large vehicle" is a vehicle with a gross vehicle weight
33 exceeding forty-five hundred pounds.
34 (b) The rates in this section shall not apply to the towing of motor
35 vehicles pursuant to a contract which was in existence prior to the need
36 for the towing of such vehicles, provided that such motor vehicles are
37 either owned or leased by the person who entered into such contract.
38 (c) The provisions of this section shall not apply to cities having a
39 population of one million or more.
40 2. (a) For a vehicle with a maximum gross vehicle weight exceeding
41 forty-five hundred pounds but not exceeding ten thousand pounds, the
42 rate for the preparation, hoist and tow, including the first mile or
43 fraction thereof, shall not exceed one hundred twenty-five dollars. The
44 rate per each additional mile shall not exceed five dollars. The rate of
45 subsequent storage shall not exceed thirty-five dollars per twenty-four-
46 hour period.
47 (b) For a vehicle with a maximum gross vehicle weight exceeding ten
48 thousand pounds but not exceeding eighteen thousand pounds, the rate for
49 the preparation, hoist and tow, including the first mile or fraction
50 thereof, shall not exceed one hundred seventy-five dollars. The rate per
51 each additional mile shall not exceed ten dollars. The rate for the use
52 of an under-lift shall not exceed fifty dollars. The rate of subsequent
53 storage shall not exceed fifty dollars per twenty-four-hour period.
54 (c) For a vehicle with a maximum gross vehicle weight exceeding eigh-
55 teen thousand pounds but not exceeding twenty-six thousand pounds, the
56 rate for the preparation, hoist and tow, including the first mile or
A. 8858 3
1 fraction thereof, shall not exceed two hundred fifty dollars. The rate
2 per each additional mile shall not exceed ten dollars. The rate for the
3 use of an under-lift shall not exceed fifty dollars. The rate of subse-
4 quent storage shall not exceed fifty dollars per twenty-four-hour peri-
5 od.
6 (d) For a vehicle with a maximum gross vehicle weight exceeding twen-
7 ty-six thousand pounds, the rate for the preparation, hoist and tow,
8 including the first mile or fraction thereof, shall not exceed three
9 hundred dollars. The rate per each additional mile shall not exceed ten
10 dollars. The rate for the use of an under-lift shall not exceed one
11 hundred dollars. The rate of subsequent storage shall not exceed seven-
12 ty-five dollars per twenty-four-hour period.
13 3. The cost of labor per quarter hour per truck or per person or oper-
14 ator shall not exceed fifty dollars.
15 4. (a) A tow truck operator shall not require the payment of any fee
16 or charge for towing and storage of a vehicle, or any fee or charge
17 directly or indirectly related to towing and storage of a vehicle, that
18 is not specifically authorized by law or rule.
19 (b) A charge for the towing and storage of vehicles shall not be
20 imposed by any person who does not have a license to engage in towing,
21 as required by section five hundred one of the vehicle and traffic law,
22 or whose vehicle is not registered as a tow truck, as required by
23 section four hundred one-b of the vehicle and traffic law, at the time
24 that the towing and storage services are performed.
25 § 3. This act shall take effect immediately.
