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A08858 Summary:

BILL NOA08858
 
SAME ASSAME AS S07717
 
SPONSORRomero
 
COSPNSR
 
MLTSPNSR
 
Add §§399-xxx & 399-xxxx, Gen Bus L
 
Sets maximum rates that may be charged for the towing and subsequent storage of passenger and large vehicles outside of New York city.
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A08858 Actions:

BILL NOA08858
 
06/09/2025referred to consumer affairs and protection
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A08858 Memo:

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
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A08858 Text:



 
                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.
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