NJ A3986

Towing companies must accept electronically transmitted written authorization from vehicle owners or operators to release towed vehicles to third parties, including insurance companies, collision repair shops, or any designated person.

The Director of Consumer Affairs is required to issue or amend guidelines to implement the electronic authorization process while ensuring lawful property transfer.

The bill takes effect on the first day of the seventh month following enactment, with the Director permitted to take anticipatory administrative action beforehand.

Violations fall under the "Predatory Towing Prevention Act" and consumer fraud law, carrying penalties up to $10,000 for first offenses and $20,000 for subsequent offenses, plus potential punitive and treble damages.

The legislation addresses current practices where towing companies require in-person appearance for vehicle release, even when vehicles are declared total losses or being transferred to repair facilities.