House Judiciary Committee reviews bill to cap towing and protect victims of stolen vehicles

The House Judiciary Committee on May 20 heard testimony on H.346, a bill that would set caps on towing and storage charges for abandoned vehicles and limit financial liability for people who reported their cars stolen to law enforcement.

The legislation would set a maximum towing fee for private-property tows at $130 or $4.50 per mile, whichever is greater, cap storage charges at no more than $35 per day, and — if a person has timely reported the vehicle stolen to law enforcement — bar assessment of towing or storage charges that accrue before seven days after a second notification is mailed to the registered owner, according to Damien Leonard of the Office of Legislative Counsel.

Committee members and witnesses said the bill seeks to help crime victims who find themselves saddled with large towing and storage bills after a vehicle is stolen, while creating a working group to study reimbursement for towers and municipalities and recommend funding sources.

"If the motor vehicle has been reported as stolen to an appropriate law enforcement agency ... the department would, within 3 business days ... send notice to the registered owner," Leonard said in a bill overview. He explained the department would send a second notice if the first was not returned, and storage fees would not start to accrue until seven days after that second notice. Leonard also said the bill includes a one-year delayed effective date for the abandoned-vehicle provisions to allow time for the working group's report and any subsequent legislative action.

Victim advocates gave personal and program-level accounts of the problem. Jennifer Coleman, director of the Vermont Center for Crime Victim Services, told the committee that victims can face steep, unexpected charges on top of theft-related losses and that her agency’s compensation program is limited by federal eligibility rules. "There are those fees, there are those storage fees," Coleman said. "There's no program in the entire state that would provide this kind of support for victims in stolen car situations." She also noted the victim compensation fund faces a roughly $500,000 shortfall and that the federal program reimburses 60% of state special funds within certain criteria.

Two victims and victim-service providers described the emotional and financial burdens. Jacqueline Hughes, a Burlington resident, recounted having her leased vehicle stolen and later recovered in Colchester. "I was expecting, I guess, because I'd never been in that situation ... it was almost $300," Hughes said of the towing charge she paid on a fixed income. Hannah Brislin of the Burlington Community Justice Center said her program has seen more than 100 car-theft–related client contacts in Burlington over the past 12 months and described cleanup and replacement costs that can top thousands of dollars.

The office of the attorney general's Consumer Assistance Program recommended aligning any new caps with existing state limits for abandoned-vehicle tows from public spaces and noted prior AG work on towing practices. "Our recommendation in January of 2024 was really that for nonconsensual abandoned vehicle tows, a reasonable rate might be something more akin to $125," Christopher Curtis told the committee. The AG's office reported roughly 30 towing-related complaints over a two-year period to its consumer assistance line, out of several thousand consumer transactions it handles annually.

Industry and safety perspectives were offered by National Insurance Crime Bureau Senior Director Howard Handler, and by representatives of Vermont towing companies and the Vermont Tow Association. Handler warned about predatory towing practices nationally and urged the committee to support the bill’s notice and fee provisions. Tow operators and association representatives described rising business costs, worker safety risks and a shrinking workforce; a Rock Towing Association vice president said the number of tow operations has declined in recent years and that heavier electric vehicles and higher equipment costs are squeezing firms.

Committee members and witnesses emphasized unresolved funding questions. The bill creates a temporary working group charged with identifying potential sources to reimburse towers and municipalities, requiring a report by Nov. 15 (dates committee members said would need to be extended if the bill did not pass this session). The working group was slated to meet on or before Sept. 1 and to terminate on Dec. 31 under the draft language Leonard described.

The committee did not take a final vote on H.346 during the hearing. Members asked for clarifications about definitions in the bill (for example, what constitutes a "timely" report of a stolen vehicle) and signaled interest in allowing the proposed working group to meet over the summer and report back before statutory changes take effect.

The bill also includes a provision that municipal fees, fines and penalties assessed under local abandoned-vehicle or parking ordinances would not be charged to an individual who timely reported the vehicle as stolen.

Next steps: Committee members discussed the possibility of an off‑session working group and follow-up testimony from municipal and law-enforcement data stewards to estimate the number of stolen vehicles that become abandoned and the likely fiscal size of any reimbursement mechanism. No formal committee action was taken on H.346 at the May 20 hearing.