BILL NUMBER: S7717
SPONSOR: COONEY
 
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 long 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.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately