STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ALEXANDER "AVI" SCHNALL
District 30 (Monmouth and Ocean)
Assemblyman WILLIAM B. SAMPSON, IV
District 31 (Hudson)
SYNOPSIS
Requires towing companies accept electronically transmitted authorization of vehicle release to third party.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning towing companies and supplementing P.L.2007, c.193 (C.56:13-7 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section, a “third party” means an insurance company, a collision repair company, or any person designated by the owner or operator of the towed vehicle.
b. A towing company shall accept from the owner or operator of a motor vehicle that has been towed written authorization submitted by electronic means to release the vehicle to a third party.
c. The director shall issue or amend guidelines necessary to effectuate the provisions of this section, including protections to ensure the lawful transfer of property.
2. This act shall take effect on the first day of the seventh month next following enactment, except that the Director of Consumer Affairs may take any anticipatory administrative action as shall be necessary for the implementation of this act.
STATEMENT
This bill requires a towing company to accept electronic authorization for a towed vehicle or its contents to be released to a third party.
This bill supplements the “Predatory Towing Prevention Act,” P.L.2007, c.193, to require a towing company registered with the Division of Consumer Affairs to accept electronically transmitted written authorization from a person whose vehicle has been towed to permit the release of the vehicle, or property within the vehicle, to a third party. The bill defines a “third party” as an insurance company, a collision repair company, or any other person the owner or operator of the towed vehicle designates. The bill requires the Director of the Division of Consumer Affairs to issue or amend guidelines to implement the provisions of the bill, ensuring the legal transfer of property.
A violation of the “Predatory Towing Prevention Act” is an unlawful practice under the consumer fraud act, P.L.1960, c.39, which 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.
State law currently does not prohibit a person other than the owner or operator of a towed vehicle from retrieving a vehicle from a towing company. However, towing companies often require the owner or operator of a towed vehicle to appear in person for the release of the vehicle, even when the vehicle is declared a total loss by the insurer or is being transferred to a collision repair facility.
It is the sponsor’s intent to simplify the release of a towed vehicle when it is not necessary for the owner or operator to appear in person.