House passes towing regulations after debate over fees, hours and consumer protections

Dover, March 26 — The Delaware House passed House Bill 67 on a final vote after floor debate and an amendment that sponsors said responds to municipal and industry concerns.

The bill creates a new chapter in Title 21 of the Delaware Code governing removal of motor vehicles from public or private property by private tow companies and makes violations enforceable by the consumer protection unit of the Delaware Department of Justice. Representative Peter Ocinski, the bill’s sponsor, said the measure responds to constituent complaints about difficulty recovering towed vehicles and unequal practices around the state.

“The act creates a new chapter in Title 21, and it makes violations of the chapter an unlawful practice enforceable by the consumer protection unit,” Representative Ocinski said. He described several consumer protections included in the bill and the amendment, such as photographic documentation before a tow and written authorization to tow a specific vehicle.

Key provisions spelled out on the House floor include: - A maximum flat towing fee of $250 and a daily storage rate of $50; a drop fee may not exceed 50% of the total fee when an owner returns before removal. - Tow operators must take photographic evidence documenting unauthorized parking before towing and must hold vehicles while allowing owners to retrieve personal belongings during posted hours. - Storage facilities must be accessible to the public from 8 a.m. to 6 p.m., five days a week; an after‑hours fee of up to $50 may be charged for retrieval outside those hours. - Tow operators and storage facilities must accept credit cards or provide an ATM with a reasonable fee. - Tow companies may not patrol for illegally parked cars unless operating under a contract that complies with the bill’s requirements, and companies may not offer payments or other benefits to obtain information about regularly parked cars.

Supporters said the rules create uniform statewide standards and protect motorists — including elderly individuals — from being left without timely access to their vehicles. Representative Williams recounted a constituent in her 70s who mistakenly believed her car had been stolen and was put in a risky situation trying to recover it.

Opponents and some members raised concerns about specific elements. Representative Collins criticized the fixed fee structure, saying the statutory caps lack an inflation adjustment and could undercut tow companies over time: “You set a price of $250 with no aspects of dealing with inflation,” Collins said, warning that a fixed cap could be “a recipe for going out of business.” Representative Ocinski replied that the rates align with standards negotiated between Delaware tow companies and the Delaware State Police and that the legislature could revisit figures if needed.

A technical change, House Amendment 2, was adopted by voice vote after the sponsor said it addressed concerns raised by the City of Wilmington and the towing association. The House approved the amended bill on a roll call showing 23 yes, 14 no, 1 not voting and 3 absent; the amendment was adopted earlier by voice vote.

The AAA Mid-Atlantic and other consumer-interest groups were listed on the floor as supporting the bill. The sponsor said the Delaware Towing Association participated in summer negotiations after re-forming earlier this year.

How this matters: Supporters argue the bill prevents arbitrary practices and provides predictable consumer recourse if a tow violates the new chapter; critics say setting fixed maximums without periodic adjustments could create unintended economic stress for small, often family-run tow operators. The bill makes enforcement the responsibility of the state consumer protection unit and establishes clear procedural requirements for tows and storage operators.

Next steps: The bill, having passed the House, will be transmitted to the Senate for consideration.