Tennessee garagekeepers face new regulations on storage fees and notification requirements

In the bustling halls of the Tennessee State Legislature, a new bill is stirring conversations among lawmakers and citizens alike. Senate Bill 1068, introduced on February 18, 2025, aims to reform the way garagekeepers charge for towing and storage of motor vehicles, addressing long-standing concerns over transparency and fairness in the industry.

At its core, Senate Bill 1068 seeks to establish clearer guidelines for garagekeepers regarding storage fees. The bill stipulates that prior to the launch of a new motor vehicle portal, garagekeepers can only charge storage fees exceeding 21 days if they notify the last known registered owner and all lienholders via a national delivery carrier with electronic tracking. This notice must be sent at least ten days before any additional fees are imposed. Once the portal is operational, notifications can be made through the online system, streamlining the process and ensuring that vehicle owners are kept informed.

One of the bill's notable provisions is its restriction on fees. Garagekeepers are prohibited from charging excessive rates for towing or storage without the owner's express written consent. Additionally, the bill caps release fees at $100 and prohibits charging for access or release during normal business hours if daily storage fees are also being applied. These measures aim to protect consumers from unexpected financial burdens and promote fair practices within the towing industry.

However, the bill has not been without its controversies. Some garagekeepers argue that the proposed regulations could hinder their ability to operate effectively, potentially leading to financial strain on their businesses. Opponents of the bill have raised concerns about the feasibility of implementing the new notification system, particularly for smaller operators who may lack the resources to comply with the requirements.

Supporters, on the other hand, emphasize the bill's potential to enhance consumer protection and foster trust between garagekeepers and vehicle owners. Experts suggest that by increasing transparency in the towing process, the bill could lead to a more equitable marketplace, ultimately benefiting both consumers and responsible garagekeepers.

As the legislative session unfolds, the future of Senate Bill 1068 remains uncertain. Its passage could signal a significant shift in the towing industry in Tennessee, setting a precedent for similar reforms in other states. For now, lawmakers continue to debate the bill's implications, weighing the interests of consumers against the operational realities faced by garagekeepers. The outcome of this legislative effort could reshape the landscape of vehicle towing and storage, ensuring that fairness and transparency take center stage in Tennessee's automotive services.