Lawmakers hear bills to limit nonconsensual towing, change abandoned-vehicle rules

Representative Barbara Rachelson presented two bills to the House Committee on Commerce & Economic Development on April 1 seeking to change how Vermont handles towed and so-called abandoned vehicles and to add consumer protections for people whose cars are towed.

Rachelson said the bills — H329 focuses on abandoned-vehicle processes and H268 focuses on consumer-protection and transparency measures — respond to frequent constituent complaints that vehicles removed by towers are treated as abandoned too quickly and that owners often do not receive adequate notice or timely access to personal property inside a towed vehicle.

The proposals Rachelson described include lengthening the 48-hour abandonment trigger now in state practice, requiring more robust notice (for example, postings and a searchable listing similar to those used for other abandoned property types), creating a process to challenge an abandoned tow in court, and establishing limits or standards for towing and storage fees when tows occur off public property. Rachelson also said the bills would require towers to photograph vehicles before release and provide itemized receipts when owners retrieve vehicles, and would require lots that are closed to avoid charging retrieval fees for that day.

Rachelson said the bills would also revisit how proceeds from the sale of an unclaimed vehicle are distributed — she described a framework that would first satisfy the tower’s allowable charges and then prioritize returning remaining funds to an owner when notification is possible, rather than the tower keeping all proceeds. She said one bill would create a committee to study how remaining proceeds should be allocated if the owner cannot be reached.

Rachelson relayed multiple constituent examples: victims of assault who were hospitalized and later faced steep towing and storage bills, owners of stolen cars who were charged thousands after their vehicle was recovered but treated as abandoned, and a couple she said lost a car after a winter-street-cleaning tow when they could not retrieve the vehicle before sale. Rachelson said Department of Motor Vehicles notice procedures — mailing to the last registration address — often fail to reach people who move or rent, and she described neighboring-state approaches that separate “immobile” from “unattended” vehicles and require additional outreach and listings.

Rachelson said two of her three towing-related bills landed in this committee (H268 and H329) and the third went to House Judiciary because it addresses tow outcomes for victims of stolen cars. She said she will share supporting materials and data with committee members.

Committee members asked clarifying questions about notice requirements and how fees are set; Rachelson said she has discussed some ideas with the treasurer and DMV and that some elements (a searchable listing and additional notices) are feasible to pursue.

The presentation was discussion-only; no committee action or vote on the bills occurred during the hearing.