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H.268 1
Introduced by Representative Rachelson of Burlington 2
Referred to Committee on 3
Date: 4
Subject: Motor vehicles; involuntary towing and storage; consumer protection 5
Statement of purpose of bill as introduced: This bill proposes to establish 6
certain consumer protections related to the towing and storage of vehicles. 7
An act relating to consumer protections related to the towing and storage of 8
vehicles 9
It is hereby enacted by the General Assembly of the State of Vermont: 10
Sec. 1. 23 V.S.A. chapter 42 is added to read: 11
CHAPTER 42. TOWING OF MOTOR VEHICLES 12
§ 4251. SHORT TITLE 13
This chapter may be cited as the “Vermont Consumer Protection Towing 14
Act.” 15
§ 4252. PURPOSE 16
The purpose of the Vermont Consumer Protection Towing Act is to 17
establish minimum standards for towing and storage services and to promote 18
fair and honest practices in the towing industry. 19 BILL AS INTRODUCED H.268
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§ 4253. DEFINITIONS 1
As used in this chapter: 2
(1) “Automobile club” means a legal entity that, in consideration of 3
dues, assessments, or periodic payments of money, promises its members or 4
subscribers to assist them in matters relating to motor travel or the operation, 5
use, or maintenance of a motor vehicle, including auto dealers and insurance 6
companies, by supplying services, which may include towing service, 7
emergency road service, and indemnification service. 8
(2) “Dealer” has the same meaning as in subdivision 4(8) of this title. 9
(3) “Drop fee” means a charge offered instead of a standard tow fee that 10
allows an owner or operator who arrives on scene prior to a vehicle being 11
towed to stop a tow that is in process. 12
(4) “Emergency towing” means the towing of a vehicle due to a motor 13
vehicle crash, mechanical breakdown on a public highway, or other 14
emergency-related incident necessitating vehicle removal for public safety 15
with or without the owner’s or operator’s consent. 16
(5) “Government agency towing” means the towing of government-17
owned or government-controlled vehicles by the government agency that owns 18
or controls them. 19
(6) “Owner” means the person to whom a vehicle is registered or to 20
whom it is leased, if the terms of the lease require the lessee to maintain and 21 BILL AS INTRODUCED H.268
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repair the vehicle. For the purposes of this chapter, a rental vehicle company is 1
the owner of a vehicle rented pursuant to a rental agreement. 2
(7) “Private property towing” means the towing of a vehicle, without the 3
owner’s or operator’s consent, from private property where it was illegally 4
parked, or for which some exigent circumstance necessitated its removal, to a 5
nearby location. 6
(8) “Rental vehicle company” means any person, including a franchisee, 7
in the business of renting vehicles to the public. 8
(9) “Seizure towing” means the taking of a vehicle for law enforcement 9
purposes, such as the maintenance of the chain of custody of evidence, 10
forfeiture of assets, or unpaid parking tickets. 11
(10) “Storage services” means storing a towed vehicle at a towing-12
storage lot. 13
(11) “Tow truck” means a motor vehicle equipped to tow or pick up 14
vehicles, including damaged or disabled vehicles. 15
(12) “Towing company” means any corporation, association, sole-16
proprietorship, co-partnership, company, firm, or other aggregation of 17
individuals that exists to provide towing or storage services. A towing 18
company does not include an automobile club, dealer, or insurance company. 19
(13) “Towing or storage services” means towing services or storage 20
services, or both. 21 BILL AS INTRODUCED H.268
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(14) “Towing services” means towing or otherwise moving vehicles by 1
means of a tow truck. 2
(15) “Towing-storage lot” means a property used to store vehicles that 3
have been towed. 4
§ 4254. APPLICABILITY; RULEMAKING; COMPLAINTS 5
(a) Applicability. 6
(1) This chapter shall apply to any person engaging in, or offering to 7
engage in, the business of providing towing or storage services in Vermont. 8
This chapter shall not apply to vehicles towed into Vermont or towed through 9
Vermont, provided that the tow originates in another jurisdiction. 10
(2) Notwithstanding subdivision (1) of this subsection, this chapter shall 11
not apply to towing and storage services by an automobile club, dealer, or 12
insurance company or the towing of an abandoned motor vehicle as defined in 13
section 2151 of this title. 14
(b) Regulatory authority. This chapter confers exclusive regulatory 15
jurisdiction over towing companies and the provision of towing and storage 16
services to the Department of Motor Vehicles. 17
(c) Rulemaking. The Department shall adopt rules pursuant to 3 V.S.A. 18
chapter 25 for the administration of this chapter, including the assessment of 19
administrative penalties in addition to those penalties allowed under section 20
4266 of this chapter. 21 BILL AS INTRODUCED H.268
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(d) Complaints. The Department shall establish a complaint mechanism 1
for consumers and insurers. 2
§ 4255. EMERGENCY TOWING 3
(a) Prohibitions. It is a misdemeanor for a towing company to stop or 4
cause an individual to stop at the scene of a crash or near a disabled vehicle for 5
the purpose of soliciting an engagement for emergency towing services, either 6
directly or indirectly, or, unless requested to perform the services by a law 7
enforcement officer or public agency pursuant to that agency’s procedures or 8
unless summoned to the scene or requested to stop by the owner or operator of 9
a disabled vehicle, to provide towing emergency towing services, to move a 10
vehicle from a highway when there is an injury as the result of a crash, or to 11
accrue charges for services provided under those circumstances. 12
(b) Selection of towing company. 13
(1) The owner or operator of the vehicle being towed shall summon to 14
the scene the towing company of the owner’s or operator’s choice in 15
consultation with law enforcement or authorized municipal personnel and 16
designate the location where the vehicle is to be towed. 17
(2) The provisions of subdivision (1) of this subsection shall not apply 18
when the owner or operator is incapacitated, otherwise unable to summon a 19
tow company, or defers to law enforcement or authorized municipal personnel. 20 BILL AS INTRODUCED H.268
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(3) The authority provided to the owner or operator in subdivision (1) of 1
this subsection may be superseded by the law enforcement officer or 2
authorized municipal personnel if the towing company of choice cannot 3
respond to the scene in a timely fashion and the vehicle is a hazard, impedes 4
the flow of traffic, or may not legally remain in its location in the opinion of 5
the law enforcement officer or authorized municipal personnel. 6
(c) Record of caller. 7
(1) If a towing company is summoned for an emergency tow by the 8
owner or operator of a disabled vehicle, the towing company shall record the 9
first name, last name, and telephone number of the individual who summoned 10
it to the scene and the make, model, year, color, vehicle identification number 11
(VIN), and license plate number of the towed vehicle. 12
(2) If a towing company is summoned for an emergency tow by a law 13
enforcement officer or designee of a public safety agency with jurisdiction, the 14
towing company shall record the identity of the law enforcement officer or 15
designee of a public safety agency with jurisdiction and the log number, call 16
number, incident number, or dispatch number assigned to the incident as 17
applicable. 18
(d) Visual documentation. Prior to towing a vehicle under this section, a 19
towing company shall take photographs, video, or other visual documentation 20
to evidence the location of the vehicle and any damages. 21 BILL AS INTRODUCED H.268
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(e) Record retention and production. 1
(1) The towing company shall maintain a record of the information 2
described in subsections (c) and (d) of this section and shall retain that 3
information for three years. 4
(2) The towing company shall make the records required to be 5
maintained under subdivision (1) of this subsection available within 48 hours 6
after receipt of a written request from law enforcement or the Department of 7
Motor Vehicles. 8
(f) Storage. The towing company shall properly secure all towed vehicles 9
and make all reasonable efforts to prevent further damage, weather damage, or 10
theft to all towed vehicles, including the vehicle’s cargo and contents. 11
§ 4256. PRIVATE PROPERTY TOWING REQUIREMENTS 12
(a) Establishment of a private tow-away zone. The owner of private 13
property may establish a private tow-away zone by posting a sign that is at 14
least 18 inches by 24 inches in size and includes a statement that the property 15
is a tow-away zone, a description of persons authorized to park on the 16
property, and the address and telephone number for where towed vehicles are 17
stored. 18
(b) Prohibition and record of caller. A towing company shall not tow a 19
vehicle under this section unless it receives a request for a tow. The towing 20
company shall record the date, time, and name of the requestor. 21 BILL AS INTRODUCED H.268
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(c) Visual documentation. Prior to towing a vehicle under this section, a 1
towing company shall take photographs, video, or other visual documentation 2
to evidence that the vehicle is clearly parked on private property in violation of 3
a private tow-away zone. The towing company shall record the time and date 4
of the photographs, video, or other visual documentation. 5
(d) Record retention and production. 6
(1) The towing company shall maintain a record of the information 7
described in subsections (b) and (c) of this section and shall retain that 8
information for three years. 9
(2) The towing company shall make the records required to be 10
maintained under subdivision (1) of this subsection available within 48 hours 11
after receipt of a written request from law enforcement or the Department of 12
Motor Vehicles. 13
(e) Location and storage. 14
(1) A towing company shall ensure that a vehicle towed under this 15
section is taken to a location that is within 25 miles of the location of the 16
private tow-away zone. 17
(2) The towing company shall properly secure all towed vehicles and 18
make all reasonable efforts to prevent further damage, weather damage, or 19
theft to all towed vehicles, including the vehicle’s cargo and contents. 20 BILL AS INTRODUCED H.268
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(f) Release of vehicle prior to towing. If the owner or operator of a vehicle 1
is parked in violation of a private tow-away zone and arrives while the vehicle 2
is being removed, the towing company shall give the vehicle owner or operator 3
oral or written notification that the vehicle owner or operator may pay a drop 4
fee for the release of the vehicle. Upon payment of that fee, the towing 5
company shall release the vehicle and give the vehicle owner or operator a 6
receipt showing both the full amount normally assessed and the actual amount 7
received. 8
(g) Notice. The towing company shall provide notice of the tow to law 9
enforcement within two hours after removing the vehicle from the private tow-10
away zone. 11
§ 4257. SEIZURE TOWING 12
(a) Location and storage. 13
(1) A towing company shall ensure that a vehicle towed under this 14
section is taken to a location that is within 25 miles of the location where the 15
vehicle is towed from. 16
(2) The towing company shall properly secure all towed vehicles and 17
make all reasonable efforts to prevent further damage, weather damage, or 18
theft to all towed vehicles, including the vehicle’s cargo and contents. 19
(b) Release of vehicle prior to towing. If the owner or operator of a vehicle 20
that is being towed because of unpaid parking tickets arrives while the vehicle 21 BILL AS INTRODUCED H.268
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is being towed, the towing company shall give the vehicle owner or operator 1
oral or written notification that the vehicle owner or operator may pay a drop 2
fee for the release of the vehicle. Upon payment of that fee, the towing 3
company shall release the vehicle and give the vehicle owner or operator a 4
receipt showing both the full amount normally assessed and the actual amount 5
received. 6
§ 4258. ESTIMATE REQUIREMENTS 7
(a) Estimate required. If the owner or operator of a vehicle is present at the 8
time and location of a tow, the towing company shall furnish the owner or 9
operator of the vehicle with a written itemized estimate of all charges and 10
services to be performed. 11
(b) Estimate contents. The estimate required under subsection (a) of this 12
section shall include all of the following: 13
(1) the name, address, telephone number, and motor carrier permit 14
number of the towing company; 15
(2) the license plate number of the tow truck performing the tow; and 16
(3) an itemized description and cost for all services, including charges 17
for labor, special equipment, mileage from dispatch to return, and storage fees 18
expressed as a daily rate. 19
(c) Signature required. 20 BILL AS INTRODUCED H.268
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(1) The towing company shall obtain the vehicle owner’s or operator’s 1
written or electronic signature on the itemized estimate and shall furnish a 2
copy to the individual who signs the estimate. 3
(2) The requirements in subdivision (1) of this subsection may be 4
completed after the vehicle is attached and removed to the nearest safe 5
shoulder or highway if done at the request of law enforcement or a public 6
agency, provided the estimate is furnished prior to the removal of the vehicle 7
from the nearest safe shoulder or highway. 8
(d) Record retention and production. 9
(1) The towing company shall maintain the records required under 10
subsection (a) of this section and shall retain that information for three years. 11
(2) The towing company shall make the records required to be 12
maintained under subdivision (1) of this subsection available within 48 hours 13
after receipt of a written request from law enforcement or the Department of 14
Motor Vehicles. 15
§ 4259. INVOICE REQUIREMENTS 16
(a) Invoice required. All services rendered by a towing company, 17
including any warranty or zero-cost services, shall be recorded on an invoice. 18
Each additional service must be set forth individually as a single line item with 19
an explanation and the exact charge for the service. 20 BILL AS INTRODUCED H.268
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(b) Invoice contents. Each itemized invoice for towing costs shall contain 1
the following: 2
(1) the location from which the vehicle was towed; 3
(2) the storage location of the vehicle; 4
(3) the name, address, and telephone number of the towing company; 5
(4) a description of the vehicle, including the make, model, year, color, 6
vehicle identification number (VIN), and license plate number of the towed 7
vehicle; 8
(5) the charge for the tow; and 9
(6) the daily storage charge and the number of days the vehicle was 10
stored. 11
(c) Record retention and production. 12
(1) The towing company shall maintain the records required under 13
subsection (a) of this section and shall retain that information for three years. 14
(2) The towing company shall make the records required to be 15
maintained under subdivision (1) of this subsection available within 48 hours 16
after receipt of a written request from law enforcement or the Department of 17
Motor Vehicles. 18
§ 4260. NOTICE REQUIREMENTS 19
(a) Notice required. Within 24 hours after the commencement of towing, 20
the towing company must commence a search of the records of the Department 21 BILL AS INTRODUCED H.268
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of Motor Vehicles to ascertain the identity of the owner and any lienholder of 1
the towed vehicle. Written notice shall be given directly to the owner by 2
registered mail within five business days after the commencement of towing, 3
and no storage charges beyond the initial 24-hour charge shall accrue until the 4
notice requirement has been met. 5
(b) Notice contents. Notice to the owner or insurer shall contain the 6
following: 7
(1) the name, address, and telephone number of the towing company; 8
(2) the date and time the vehicle was towed; 9
(3) the location from which the vehicle was towed; 10
(4) the address where the vehicle is or will be stored and the address and 11
telephone number where payment and business transactions take place if either 12
is different from the address and telephone number of the towing company; 13
(5) the name of the tow truck operator; and 14
(6) a description of the vehicle, including the make, model, year, color, 15
vehicle identification number (VIN), and license plate number of the towed 16
vehicle. 17
§ 4261. LICENSE REQUIREMENTS; INSURANCE; DISPLAY 18
(a) Application. 19
(1) The Department of Motor Vehicles shall approve an application for a 20
towing company license or renewal and issue or renew the license, provided 21 BILL AS INTRODUCED H.268
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the applicant submits an approvable application on a form prescribed by the 1
Department of Motor Vehicles and pays a $50.00 application fee. 2
(2) An application shall include: 3
(A) the applicant’s workers’ compensation coverage; 4
(B) a certification that the applicant is current and in good standing 5
with the Department of Labor’s Unemployment Insurance Program; 6
(C) the financial responsibility of an applicant relating to liability 7
insurance or bond requirements; 8
(D) the applicant’s standard hours of operation; 9
(E) the applicant’s after-hours access policy; 10
(F) the applicant’s business address and contact information; 11
(G) the applicant’s towing and storage charges; and 12
(H) any other information the Department of Motor Vehicles may 13
require. 14
(3) The applicant must not have been convicted of fraud or had a civil 15
judgment rendered against it for fraud. In addition, each officer, director, or 16
partner of an applicant that is a corporation or partnership must not have been 17
convicted of fraud or had a civil judgment rendered against the individual for 18
fraud during the officer’s, director’s, or partner’s tenure. 19 BILL AS INTRODUCED H.268
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(b) Insurance. 1
(1) The applicant must provide proof of minimum insurance 2
requirements of the following or a sufficient surety bond as determined by the 3
Commissioner of Motor Vehicles: 4
(A) $100,000.00 for liability for bodily injury or property damage per 5
occurrence; and 6
(B) $50,000.00 of legal liability per occurrence, to protect against 7
vehicle damage, including fire and theft, from the time a vehicle comes into the 8
custody of a towing company until it is redeemed or sold. 9
(2) Cancellation of or failure to maintain the insurance required by 10
subdivision (1) of this subsection automatically revokes the applicant’s license. 11
(c) Display. A towing company granted a license or renewal under this 12
section shall prominently display the license, hours of operation, and charges 13
for towing and storage at the towing company’s primary place of business and 14
website, if one is maintained. 15
(d) Licenses are nonassignable and nontransferable. Licenses shall be 16
nonassignable and nontransferable and shall be surrendered to the Department 17
of Motor Vehicles immediately upon the towing company ceasing to do 18
business as a towing company. 19
§ 4262. MAXIMUM CHARGES 20
(a) A towing company shall not charge more than the following rates: 21 BILL AS INTRODUCED H.268
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(1) $130.00 per tow or $4.50 per mile towed; 1
(2) $30.00 per drop fee; 2
(3) $35.00 per day of storage for any day that the towing company is 3
operating under its standard hours of operation; and 4
(4) $35.00 for access to a towed vehicle for the recovery of personal 5
items outside the towing company’s standard hours of operation. 6
(b) Notwithstanding subsection (a) of this section, charges for towing an 7
abandoned vehicle from public property shall be in accordance with section 8
2158 of this title and fees for towing or storing a vehicle pursuant to municipal 9
ordinance shall be as established by the municipality in accordance with 10
section 1753 of this title. 11
(c) No charge shall be made in excess of the estimated price without the 12
prior consent of the owner or operator of the vehicle. 13
§ 4263. HOURS OF OPERATION 14
A towing-storage lot shall have, at a minimum, the following standard hours 15
of operation: 7:00 a.m.–6:00 p.m. Monday–Friday, exclusive of federal and 16
State holidays, and on at least one weekend day. 17
§ 4264. RELEASE OF VEHICLE; METHODS OF PAYMENT 18
(a) A towing company shall release a towed vehicle to the owner or the 19
insurance company representative upon receipt of payment. 20 BILL AS INTRODUCED H.268
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(b) A towing company shall only release a towed vehicle to the insurance 1
company representative if: 2
(1) the owner’s insurance company representative presents proof that the 3
towed vehicle is insured with the company; or 4
(2) the owner of the towed vehicle approves release of the towed vehicle 5
to the insurance company representative. 6
(c) The owner of the towed vehicle or the owner of the towed vehicle’s 7
insurance company representative shall have the right to inspect the vehicle 8
before accepting its return. 9
(d) A towing company shall accept, at a minimum, cash, an insurance 10
check, a credit card, a debit card, a certified check, or a money order. 11
§ 4265. PROHIBITED ACTS 12
(a) It shall be unlawful for a towing company or an individual acting on 13
behalf of a towing company to: 14
(1) falsely represent, either expressly or by implication, that the towing 15
company represents or is approved by any private organization that provides 16
emergency road service for disabled motor vehicles; 17
(2) require an owner or operator of a motor vehicle involved in a crash 18
or breakdown to preauthorize one or more of the following: more than 24 19
hours of storage, tear down, or repair work as a condition to providing towing 20
services for the vehicle; 21 BILL AS INTRODUCED H.268
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(3) charge more than one towing fee when the owner or operator of a 1
disabled vehicle requests transport of the vehicle to a repair facility owned or 2
operated by the towing company; 3
(4) operate a towing company or offer towing or storage services 4
without being a towing company licensed by the Department of Motor 5
Vehicles; 6
(5) charge more than the maximum fees as allowed under section 4262 7
of this chapter; 8
(6) submit false or fraudulent information to obtain a towing license; or 9
(7) violate any other provision of this chapter. 10
(b) Towing companies shall not tow disabled vehicles to a repair facility 11
unless the owner or operator of the disabled vehicle gives written consent 12
before removal of the disabled vehicle. 13
(c) No towing company shall refuse to release a vehicle to the owner or the 14
owner’s insurer upon tender of full payment of an itemized invoice for all 15
lawful charges made in connection with the towing and storage of a vehicle. 16
(d) No towing company shall refuse, including prior to payment of fees and 17
release of a towed vehicle, the right of physical inspection of the towed vehicle 18
by the owner or the owner’s insurer or the recovery of personal items left in the 19
vehicle during the towing company’s standard hours of operation. 20 BILL AS INTRODUCED H.268
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(e) No towing company shall charge storage for any day where release of 1
the towed vehicle or access to the towed vehicle by the owner or insurer is not 2
permitted by the towing company. 3
§ 4266. PENALTIES AND ENFORCEMENT 4
(a) The Department of Motor Vehicles shall have authority for the 5
inspection of all locations operated by a towing company. 6
(b) The Department of Motor Vehicles shall investigate any suspected 7
violations and complaints that are filed with the Department and take all proper 8
and necessary remedial action. 9
(c) Any towing company that submits false or fraudulent information to 10
obtain a towing license shall have its license revoked. 11
Sec. 2. RULEMAKING 12
Unless extended by the Legislative Committee on Administrative Rules 13
pursuant to 3 V.S.A. § 843(c), the Department of Motor Vehicles shall adopt 14
rules required under 23 V.S.A. § 4254(c), as added by Sec. 1 of this act, not 15
later than June 1, 2026, to be effective July 1, 2026. 16
Sec. 3. EFFECTIVE DATE 17
This act shall take effect on July 1, 2025. 18