HB 1492-FN - AS AMENDED BY THE HOUSE

 

19Feb2026... 0662h

2026 SESSION

26-2310

06/08

 

HOUSE BILL 1492-FN

 

AN ACT relative to the regulation and appeal of motor vehicle towing from public highways and prohibiting the division of motor vehicles from suspending a license on the basis of debt owed to a private entity related to the towing or storing of a motor vehicle.

 

SPONSORS: Rep. Leishman, Hills. 33; Rep. Cloutier, Sull. 6

 

COMMITTEE: Transportation

 

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AMENDED ANALYSIS

 

This bill:

 

I.  Extends the time period for a vehicle owner to appeal the reasonableness of towing and impoundment fees to the department of safety.

 

II.  Requires that invoices generated from towing and impounding vehicles clearly indicate the process for appealing said tow or impoundment.

 

III.  Prohibits the division of motor vehicles from suspending a person's license or driving privileges based on their failure to pay a debt related to a commercial entity's towing or storage of a vehicle.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Feb2026... 0662h 26-2310

06/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty-Six

 

AN ACT relative to the regulation and appeal of motor vehicle towing from public highways and prohibiting the division of motor vehicles from suspending a license on the basis of debt owed to a private entity related to the towing or storing of a motor vehicle.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Fees for Removal and Impoundment of Motor Vehicles.  Amend RSA 262:35-a to read as follows:  

262:35-a  Review of Fees for Removal and Impoundment.  

I.  All fees charged for the removal and storage of any vehicle caused to be removed by an authorized official pursuant to RSA 262:32 or RSA 262:40-a shall be reasonable, and may reflect market variables, including, but not limited to, distance traveled to and from the storage facility, vehicle size and weight, the amount of time needed to remove and store the vehicle, any special equipment needed, and personnel costs.  The invoice for towing and impoundment of the vehicle shall clearly indicate the process for appeal pursuant to this section.  If the owner or other person lawfully entitled to possession of the vehicle wishes to challenge the reasonableness of the fee charged, the owner or other person may pay over to the custodian of the vehicle an amount equal to the towing and storage charges to secure the release of the vehicle, and, within [15] 30 days of the [release of the vehicle] receipt of the invoice, request in writing a review by the commissioner of safety.  The commissioner of safety or designee shall review the claim to determine if there are sufficient grounds to conduct a hearing to determine whether the charge was reasonable.  If the commissioner or designee determines that a hearing is necessary, the hearing shall be scheduled by the bureau of hearings within 20 days after review by the commissioner, at which time the extent of removal and storage fees shall be determined.  The commissioner or designee shall approve or disapprove of the decision of the bureau of hearings within 7 days after the hearing was held.  Notwithstanding RSA 262:25, any person aggrieved by a decision of the commissioner or designee under this section may appeal the decision to the superior court in the same manner as that prescribed in RSA 263:75, II and III.  If no request for review is filed within the [15-day] 30-day period, the owner or other person lawfully entitled to possession of the vehicle shall be deemed to have waived all rights to review under this section and shall be liable for the total amount billed.  

II.  Nothing in this section shall prevent a review of the reasonableness of the towing or other action as may be permitted by laws of this state by a court of competent jurisdiction.  

III.  Any time that a person is storing a vehicle pursuant to the provisions of this subdivision, the person may remove any items from within the vehicle that are not a part of or accessories to the vehicle.  The person may hold any such items, other than wallets, purses, life essential clothing, mail, legal documents, car seats, eyeglasses, medicine, medical equipment, or house keys pending payment of any fees due under this subdivision.  If fees remain unpaid after [20] 30 days, the person may dispose of the items.  

2  Abandoned Vehicles; Procedure for Removal and Impoundment.  Amend RSA 262:33, II and III to read as follows:  

II.  Whenever a vehicle is towed pursuant to RSA 262:31-a or RSA 262:32, the owner or other person lawfully entitled to the possession of the vehicle shall be entitled to recover said vehicle and release of the above lien by payment of all reasonable towing and storage charges.  The invoice for towing and impoundment of the vehicle shall clearly indicate the process for appeal pursuant to this section.  If the owner or other person lawfully entitled to possession of the vehicle wishes to challenge whether there was sufficient grounds for towing and impoundment, he or she may pay over to the custodian of the vehicle an amount equal to the towing and storage charges to secure the release of such vehicle, and, within [15] 30 days of the [towing and impoundment] receipt of the invoice, request in writing a hearing.  

III.  The hearing shall be held before the head of the law enforcement agency which employs the authorized official who caused the vehicle to be removed and stored, or his or her designee.  In the event such agency head or his or her designee determines sufficient grounds did not exist for the removal and storage of the vehicle, the law enforcement agency shall reimburse the owner or other person lawfully claiming possession for any amount paid to the custodian to secure release of the vehicle, or, if payment has not yet been made, order that the vehicle be immediately released from impoundment, with the agency assuming full liability of the lien.  

3  New Section; License Suspension; Failure to Pay Fines and Fees.  Amend RSA 263 by inserting after section 56-g the following new section:  

263:56-h  License Suspension Prohibited for Unpaid Towing or Storage Fees.  

I.  Under no circumstances shall the director suspend, revoke, or fail to renew a driver's license for failure to pay removal and storage fees for a vehicle towed or stored for any reason.

II.  A person whose driver's license has been suspended for outstanding vehicle removal or storage fees and who is otherwise eligible to drive shall have their driver's license reinstated and shall not be required to pay a reinstatement fee.  No later than 30 days after the effective date of this section, the division shall, without requiring a reinstatement fee, reinstate the driver's license or nonresident operating privilege.  In cases where a driver's license was not renewed due to outstanding removal and storage fees, the person shall be immediately eligible for license renewal and shall pay the same renewal fee as a driver not under suspension, but not a separate reinstatement fee.

4  License Suspension Restricted.  Amend RSA 263:57, I to read as follows:  

I.  Any justice of [a district or municipal court] the circuit court or of the superior court may suspend any license issued to any person, for a period not to exceed 30 days, after a conviction of an offense under the provisions of this title, after [due hearing] a hearing where the driver had reasonable notice of the possibility of license suspension prior to the hearing, for any cause not prohibited in RSA 263, which he or she may deem sufficient.

5  Requirements for Placement on the Tow List.  Amend RSA 106-B:30, XVIII to read as follows:  

XVIII.  The tow business shall provide state police with a complete updated list of all rates for the services it performs related to the towing and storage of vehicles, on the letterhead of the business, and shall update such list when prices change.  State Police shall not set the fees for these services nor use the rate schedule provided in determining placement on a rotation schedule.  [Price lists shall remain confidential except when determining the reasonable fee in a requested hearing conducted by the department of safety.]  

6  Effective Date.  

I.  Sections 3 and 4 of this act shall take effect 60 days after its passage.

II.  The remainder of this act shall take effect January 1, 2027.

 

LBA

26-2310

12/2/25

 

HB 1492-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to the regulation and appeal of motor vehicle towing from public highways.

 

FISCAL IMPACT:   This bill does not provide funding, nor does it authorize new positions.

 

 

Estimated State Impact

 

FY 2026

FY 2027

FY 2028

FY 2029

Revenue

$0

$0

$0

$0

Revenue Fund(s)

None

Expenditures*

$0

$233,000

$234,000

$238,000

Funding Source(s)

General Fund and Highway Fund

Appropriations*

$0

$0

$0

$0

Funding Source(s)

None

*Expenditure = Cost of bill                *Appropriation = Authorized funding to cover cost of bill

 

METHODOLOGY:

This bill authorizes the Department of Safety to regulate and set maximum allowable fees for towing and wrecker services on state highways. The bill requires the Department to adopt rules governing fee schedules, notice to vehicle owners, and recordkeeping by towing companies. The bill also creates an administrative appeals process allowing vehicle owners or operators to challenge towing fees they believe are excessive, with the Department’s decision being final for administrative purposes. The Department states it would need two new personnel to administer this bill; one Detective Sergeant at an annual cost of approximately $157,000 per year and one administrative secretary (SOC 43-04) at a cost of approximately $76,000 in FY 2027, $77,000 in FY 2028, and $81,000 in FY 2029. The positions would be 75% general fund and 25% highway fund, however, this bill provides neither funding nor authorization for new personnel.

 

AGENCIES CONTACTED:

Department of Safety