Final Rule Proposal regarding Towing Rates

OTHER AGENCIES
(a)
NEW JERSEY TURNPIKE AUTHORITY
New Jersey Turnpike Authority Towing Rates and
Road Services Rates

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Proposed Amendments: N.J.A.C. 19:9-3.1 and 3.2
Authorized By: New Jersey Turnpike Authority, Diane Gutierrez-
Scaccetti, Chair.
Authority: N.J.S.A. 27:23-5.s.
Calendar Reference: See Summary below for explanation of
exception to calendar requirement.
Proposal Number: PRN 2022-139.
Submit written comments by December 16, 2022, to:
Ann Christine Monica, Acting Director of Law
New Jersey Turnpike Authority
PO Box 5042
Woodbridge, New Jersey 07095-5042
Rules@NJTA.com
The agency proposal follows:
Summary
The New Jersey Turnpike Authority (Authority) proposes to amend its
rules at N.J.A.C. 19:9-3.1 and 3.2 in response to substantive comments
received by the Authority during its recent rulemaking process that
culminated in modest adjustments, effective August 1, 2022, to the fees
that may be charged by service providers for towing services and road
services on the New Jersey Turnpike and Garden State Parkway
(Roadways). Pursuant to the Authority’s enabling legislation, N.J.S.A.
27:23-5.s, the Authority has the power to adopt rules to “fix maximum
towing and storage fees” for towing and storage services on the
Roadways. Prior to the recent changes, the Authority adjusted rates five
years ago after rates had remained unchanged for almost 13 years.
After surveying other regional toll roads, it is apparent that the
Authority’s towing and road services fees remain significantly lower,
even considering the recent modest increases. Further, after careful
consideration of the substantive comments received from the towing
industry during the recent rulemaking process, it is apparent that
additional adjustments: (i) are warranted in these uncertain economic
times; (ii) are appropriate to bring routine towing and road service fees
more in line with other regional toll roads; and (iii) are necessary to ensure
that a qualified pool of service providers remains available to perform
these critical services on the Authority’s Roadways.
Additionally, concerns were raised by the insurance industry that some
rate increases that became effective on August 1, 2022, exceeded New
Jersey State Police (NJSP) authorized rates. As the Authority does not
desire to exceed an established State maximum, the applicable rates are
proposed to be reduced to the NJSP maximum threshold in this
rulemaking.
A 60-day comment period is provided, therefore, pursuant to N.J.A.C.
1:30-3.3(a)5, the notice of proposal is not subject to the provisions at
N.J.A.C. 1:30-3.1 and 3.2 governing rulemaking calendars.
A summary of the proposed amendments follows:
The current rates at N.J.A.C. 19:9-3.1(a)1 provide for a maximum
service charge of $108.00 for towing services for Class 1 vehicles (under
7,000 pounds Gross Vehicle Weight Rating (G.V.W.R.), generally,
“Passenger Vehicles”) and a per mile charge of $4.00, with the total
maximum fee for Class 1 vehicles, including the service charge, being
$148.00. The Authority has determined that an increase to these rates is
warranted for the reasons set forth above. Therefore, the maximum service
charge for towing services for Class 1 vehicles shall be increased from
$108.00 to $116.50, and the per mile charge shall be increased from $4.00
to $4.25, resulting in an increase in the total maximum fee for Class 1
vehicles, including the service charge, from $148.00 to $159.00.
The current rates at N.J.A.C. 19:9-3.1(a)2 set forth a maximum service
charge for towing services for Class 2 vehicles (7,000 pounds and over
G.V.W.R.; for example, straight truck or passenger vehicle with trailer)
of $198.00, and a per-mile charge of $4.50, resulting in a total maximum
fee for Class 2 vehicles, including the service charge, of $243.00. The
Authority has determined that an increase to these rates is warranted for
the reasons set forth above. Therefore, the maximum service charge for
towing services for Class 2 vehicles (7,000 pounds and over G.V.W.R.;
for example, straight truck or passenger vehicle with trailer) shall be
increased from $198.00 to $214.00 and the per-mile charge increased
from $4.50 to $4.75, resulting in an increase in the total maximum fee for
Class 2 vehicles, including the service charge, from $243.00 to $261.50.
The current rates at N.J.A.C. 19:9-3.1(a)2ii set forth a maximum
service charge for towing services for Class 3 vehicles (generally, over
15,000 pounds G.V.W.R.) of $375.00, and a per mile charge of $5.75,
resulting in a total maximum fee for Class 3 vehicles, including the service
charge, of $432.50. The Authority has determined that an increase to these
rates is warranted for the reasons set forth above. Therefore, the maximum
service charge for towing services for Class 3 vehicles (generally, over
15,000 pounds G.V.W.R.) shall be increased from $375.00 to $405.00,
and the per-mile charge increased from $5.75 to $6.00, resulting in an
increase in the total maximum fee for Class 3 vehicles, including the
service charge, from $432.50 to $465.00.
The current rates at N.J.A.C. 19:9-3.1(a)2iii set forth fees for services
to Class 2 or Class 3 vehicles of $38.00 for connecting air lines and $38.00
for connecting lights; $68.00 for disconnecting drive shaft on all trucks;
$60.00 per axle for removing an axle; and $68.00 for removing an air
scoop. The Authority has determined that an increase is warranted for the
reasons set forth above. Therefore, fees for services to Class 2 or Class 3
vehicles shall be increased from $38.00 to $41.00 for connecting air lines
and from $38.00 to $41.00 for connecting lights; from $68.00 to $73.50
for disconnecting drive shaft on all trucks; from $60.00 to $65.00 per axle
for removing an axle; and from $68.00 to $73.50 for removing an air
scoop.
The current rates at N.J.A.C. 19:9-3.1(a)3 set forth winching and
wrecking fees of $140.00 per hour for a light wrecker, and $228.00 per
hour for a heavy wrecker. The Authority has determined that an increase
is warranted for the reasons set forth above. Therefore, fees for winching
and wrecking at N.J.A.C. 19:9-3.1(a)3 will be increased from $140.00 to
$151.00 per hour for a light wrecker and from $228.00 to $246.00 per
hour for a heavy wrecker.
The current rates at N.J.A.C. 19:9-3.1(a)5 set forth hourly rates
covering equipment listed for extra heavy duty towing and recovery
services, including: (i) $438.00 per hour for heavy duty wreckers; (ii)
$438.00 per hour for Landoll w/tractor; (iii) $438.00 per hour for relief
box trailer; (iv) $788.00 per hour for 60-ton rotator; (v) $788.00 per hour
for 50-ton construction crane; (vi) $105.00 per hour for light duty flatbed;
(vii) $105.00 per hour for light duty tow truck with wheel lift; (viii)
$525.00 per hour for relief refrigerator tractor trailer; (ix) $350.00 per
hour for tractor only; (x) $438.00 per hour for heavy duty flatbed; (xi)
$438.00 per hour for service truck; (xii) $438.00 per hour for front end
loader (two-yard minimum bucket); (xiii) $438.00 per hour for bob
cat/skid steer; (xiv) $438.00 per hour for fork lift (5,000 pounds minimum
capacity); (xv) $438.00 per hour for backhoe; (xvi) $438.00 per hour for
dump truck; (xvii) $438.00 per hour for dump truck w/tractor; (xviii)
$438.00 per hour for roll off container (40-yard) + disposal fee; (xix)
$263.00 per hour for light tower (two-light minimum); (xx) $350.00 flat
fee for pallet jacks; and (xxi) $350.00 flat fee for rollers (off load). The
Authority has determined that an increase is warranted for certain extra
heavy duty equipment, except where rates exceed analogous New Jersey
State Police rates and are proposed for reduction, all for the reasons set
forth above. Therefore, the current rates covering certain equipment listed
for extra heavy duty towing and recovery services at N.J.A.C. 19:9-
3.1(a)5 shall be increased as follows: (i) from $438.00 to $450.00 per hour
for Landoll with tractor; (ii) from $105.00 to $113.00 per hour for light
duty flatbed; (iii) from $105.00 to $113.00 per hour for light duty tow
truck with wheel lift; (iv) from $438.00 to $450.00 per hour for heavy
duty flatbed; and (v) from $438.00 to $450.00 per hour for service truck.
Additionally, Supervisor (Wreck Master) shall be increased from $150.00
to $162.00 per hour, Tech Labor (Driver, Rigger) shall be increased from
$100.00 to $108.00 per hour, and Manual Labor shall be increased from
$75.00 to $81.00 per hour. The following rates for certain heavy duty
equipment shall be reduced as follows: (i) from $525.00 to $450.00 per
hour for relief refrigerated tractor trailer; (ii) from $350.00 per hour to
$250.00 per hour for tractor only; (iii) from $438.00 to $300.00 per hour
for front end loader (two-yard minimum bucket); (iv) from $438.00 to
$300.00 per hour for bob cat/skid steer; (v) from $438.00 to $300.00 per
hour for fork lift (5,000 pounds minimum capacity); (vi) from $438.00 to
$300.00 per hour for backhoe; (vii) from $438.00 to $350.00 per hour for
dump truck; (viii) from $438.00 to $350.00 per hour for dump truck w/
trailer; (ix) from $438.00 to $350.00 per hour for roll off container (40-
yard) + disposal fee; (x) from $263.00 to $250.00 per hour for light tower
(two-light minimum); (xi) from $350.00 to $200.00 flat fee for pallet
jacks; and (xii) from $350.00 to $200.00 flat fee for rollers (off load).
The current rates at N.J.A.C. 19:9-3.1(b) set forth free storage of 12
hours for all vehicles, and storage rates: (i) for passenger vehicles of
$40.00 per calendar day thereafter; (ii) for vehicles up to 15,000 pounds
G.V.W.R. of $75.00 per calendar day thereafter; (iii) vehicles over 15,000
G.V.W.R.: (a) all except buses: first 12 hours free; $75.00 per unit per
calendar day thereafter; and (b) buses: first 12 hours free; $150.00 per
calendar day thereafter. The Authority has determined that an increase in
storage rates is warranted for the reasons set forth above. Therefore,
storage rates after the first 12 hours free shall be increased: (i) from $40.00
to $43.00 per calendar day for passenger vehicles; (ii) from $75.00 to
$81.00 per calendar day for vehicles up to 15,000 pounds G.V.W.R.; and
(iii) from $75.00 to $81.00 per unit per calendar day for all vehicles over
15,000 G.V.W.R., except buses. No increases are proposed for storage of
buses.
The current rates at N.J.A.C. 19:9-3.2(a)1, road service rates governing
Class 1 vehicles on the New Jersey Turnpike, set forth a service charge of
$75.00. The current rates at N.J.A.C. 19:9-3.2(a)7 for tire
repair/replacement services for trucks and buses on the New Jersey
Turnpike, set forth a maximum service charge of $156.00, and maximum
labor rate of $94.00 per hour. The charge for an additional tire change on
the New Jersey Turnpike is $31.00 for each tire change beyond the first
tire change. The Authority has determined that an increase to these rates
is warranted for the reasons set forth above. Therefore, road service rates
at N.J.A.C. 19:9-3.2(a)1 governing Class 1 vehicles on the New Jersey
Turnpike will increase from $75.00 to $81.00. The maximum service
charge at N.J.A.C. 19:9-3.2(a)7 for tire repair/replacement services for
trucks and buses on the New Jersey Turnpike will increase from $156.00
to $168.00, and the maximum labor rate will increase from $94.00 per
hour to $101.00 per hour. The charge for an additional tire change on the
New Jersey Turnpike will increase from $31.00 to $33.50 for each tire
change beyond the first tire change.
The current rates at N.J.A.C. 19:9-3.2(b)1, road service rates governing
Class 1 vehicles on the Garden State Parkway, set forth a service charge
of $75.00, and the current rates at N.J.A.C. 19:9-3.2(b)7, tire
repair/replacement services for trucks and buses on the Garden State
Parkway, provide for a maximum service charge of $156.00, maximum
labor rate of $94.00 per hour, and a charge for an additional tire change
on the Garden State Parkway of $31.00 for each tire change beyond the
first tire change. The Authority has determined that an increase to these
rates is warranted for the reasons set forth above. Therefore, road service
rates at N.J.A.C. 19:9-3.2(b)1 governing the service charge for Class 1
vehicles on the Garden State Parkway shall increase from $75.00 to
$81.00; the maximum service charge for tire repair/replacement services
at N.J.A.C. 19:9-3.2(b)7, for trucks and buses on the Garden State
Parkway, will increase from $156.00 to $168.00, and the maximum labor
rate will increase from $94.00 per hour to $101.00 per hour. The charge
for an additional tire change on the Garden State Parkway will increase
from $31.00 to $33.50 for each tire change beyond the first tire change.
Social Impact
The proposed amendments will enhance the competitive process for
procuring towing services on the Roadways by increasing the pool of
qualified towers and ensuring that there are sufficient qualified service
providers available to provide safe, efficient, and reliable services to
Authority patrons. The proposed amendments are anticipated to
encourage small business operators to continue to participate in the
Authority’s procurement of qualified towing contractors.
Economic Impact
The Authority does not anticipate that the amendments will have a
significant economic impact on the Authority’s patrons who may be in
need of the services while on the Roadways. Many patrons may be
insulated from any economic impact of the amendments as a result of
insurance coverage for emergency towing or through their membership in
automobile clubs from whom they may be reimbursed. Moreover, all
service providers who are awarded contracts to provide towing services
on the Roadways are required to honor valid AAA membership in
payment of services. Further, the Authority believes that any economic
impact is offset by the assurance that, should a patron be in need of
assistance on an Authority Roadway, their need will be addressed by a
qualified, competent service provider in a timely manner to ensure their
safety and that of the traveling public. Further, the proposed amendments
reduce certain heavy duty service rates, in response to insurance industry
concerns, to bring them in line with New Jersey State Police rates.
Federal Standards Statement
The proposed amendments to the rules do not contain any standards or
requirements that exceed the standards or requirements imposed by
Federal law because no Federal standards or requirements apply to the
proposed amended rules.
Jobs Impact
The Authority believes that the proposed amendments to the rules may
result in the addition of, or ability to maintain, employees at service
provider businesses, particularly small businesses.
Agriculture Industry Impact
The Authority does not believe that the proposed amendments will
have any impact on the agriculture industry in New Jersey.
Regulatory Flexibility Analysis
The proposed amendments impose minimal compliance requirements
on small business as defined by the Regulatory Flexibility Act, N.J.S.A.
52:14B-16 et seq., to the extent that such small businesses intend to
participate in future procurements for towing services on the Authority’s
Roadways. These proposed amendments will be applied uniformly to all
segments of the business community, including small businesses, and are
in no way unduly burdensome.
Housing Affordability Impact Analysis
The proposed amendments will have no impact on the affordability of
housing in New Jersey, and there is no likelihood that the rules would
evoke a change in the average costs associated with housing because the
proposed amendments concern towing services on the Authority’s
Roadways.
Smart Growth Development Impact Analysis
The proposed amendments will have an insignificant impact on smart
growth, if any, and there is no likelihood that the proposed amendments
would evoke a change in housing production in Planning Areas 1 or 2, or
within designated centers, under the State Development and
Redevelopment Plan because the proposed amendments concern routine
towing services on the Authority’s Roadways.
Racial and Ethnic Community Criminal Justice and Public Safety
Impact
The Authority has evaluated this rulemaking and determined that it will
not have an impact on pretrial detention, sentencing, probation, or parole
policies concerning adults and juveniles in the State. Accordingly, no
further analysis is required.
Full text of the proposal follows (additions indicated in boldface thus;
deletions indicated in brackets [thus]):
SUBCHAPTER 3. [TOWING RATES] FEES
19:9-3.1 Towing rates on the Turnpike and the Parkway
(a) Towing rates charged by Authority-authorized companies on the
Roadway shall not exceed the following rates or such rates as may be
approved and amended by the Board from time to time in accordance with
the Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the rules
on agency rulemaking, N.J.A.C. 1:30:
1. Class 1 Vehicles (under 7,000 pounds G.V.W.R. (generally,
“Passenger Vehicles”), for the purpose of towing rates only):
i. Service charge of $[108.00]116.50 plus:
(1) $[4.00]4.25 per mile on the Roadway, up to a maximum fee to tow
the vehicle to the Authority-authorized garage facility, including the
service charge, of $[148.00]159.00[.];
2. Other classes of vehicles (7,000 pounds and over G.V.W.R.):
i. Class 2 Vehicles (for the purpose of towing rates only, straight truck
(up to 15,000 pounds G.V.W.R.), Passenger Vehicle with trailer, or trailer
without Passenger Vehicle):
(1) Service charge of $[198.00]214.00 plus:
(A) $[4.50]4.75 per mile on the Roadway, up to a maximum, including
the service charge, of $[243.00]261.50[.];
ii. Class 3 Vehicles (for the purpose of towing rates only, tractor trailer,
bus (over 15,000 pounds G.V.W.R.)), or any vehicle requiring the use of
a Landoll tractor trailer:
(1) Service charge of $[375.00]405.00 plus $[5.75]6.00 per mile on the
Roadway, up to a maximum, including the service charge, of
$[432.50.]465.00; and
iii. Where applicable, the following additional fees may be charged for
services to Class 2 or Class 3 Vehicles:
(1) $[38.00]41.00 for connecting air lines and $[38.00]41.00 for
connecting lights;
(2) $[68.00]73.50 for disconnecting drive shaft on all trucks;
(3) $[60.00]65.00 per axle for removing an axle; and
(4) $[68.00]73.50 for removing an air scoop.
3. Winching and wrecking (all classes of vehicles):
i. $[140.00]151.00 per hour for a light wrecker;
ii. $[228.00]246.00 per hour for a heavy wrecker; and
iii. (No change.)
4. (No change.)
5. Extra heavy duty towing and recovery services, which shall mean
when used in this section, the immediate, coordinated, professional
response by authorized extra heavy duty towing and recovery service
contractors to incidents that have occurred on the Roadway, causing or
having the potential to cause serious and lengthy disruption to Roadway
operations, specifically, the normal flow of traffic, as determined in the
sole discretion of the Authority. These incidents include, but are not
limited to, large overturned commercial vehicles such as trucks, buses, or
spillage of products that require the use of special heavy duty recovery
equipment and expertise to resolve. Extra heavy duty towing and recovery
service contractors must provide service under critical time restraints and
work under severe pressure in an effort to return the Roadway to normal
operating conditions. Recovery equipment must be operated in a team
response and coordinated effort, providing the utmost safety and care in
the actual operation, which will include, but not be limited to, winching,
uprighting of overturned commercial vehicles, towing and expeditious
removal of all vehicles, as well as the expeditious removal of cargo and
debris from the affected Roadway. The Authority-authorized extra heavy
duty towing and recovery services contractor shall be solely responsible
for the removal of all such vehicles, cargo, and debris.
i. Rates for the following extra heavy duty towing and recovery
services, chargeable in one-half hour increments by Authority-authorized
extra heavy duty towing and recovery services contractors, shall not
exceed the following amounts:
Equipment:
. . .
Landoll w/tractor $[438.00]450.00 per hour
. . .
Light duty flatbed $[105.00]113.00 per hour
Light duty tow truck with wheel
lift $[105.00]113.00 per hour
Relief refrigerated tractor trailer $[525.00]450.00 per hour
Tractor only $[350.00]250.00 per hour
Heavy duty flatbed $[438.00]450.00 per hour
Service truck $[438.00]450.00 per hour
PROPOSALS OTHER AGENCIES
NEW JERSEY REGISTER, MONDAY, OCTOBER 17, 2022 (CITE 54 N.J.R. 1965)
Front end loader (two-yard minimum
bucket) $[438.00]300.00 per hour
Bob cat/skid steer $[438.00]300.00 per hour
Fork lift (5,000 pounds minimum
capacity) $[438.00]300.00 per hour
Backhoe $[438.00]300.00 per hour
Dump truck $[438.00]350.00 per hour
Dump trailer w/tractor $[438.00]350.00 per hour
Roll off container (40-yard) +
disposal fee $[438.00]350.00 per hour
Light tower (two-light minimum) $[263.00]250.00 per hour
Pallet jacks $[350.00]200.00 flat fee
Rollers (Off Load) $[350.00]200.00 flat fee
Labor:
Supervisor (Wreck Master) $[150.00]162.00 per hour
Tech Labor (Driver, Rigger) $[100.00]108.00 per hour
Manual Labor $[75.00]81.00 per hour
(b) Storage rates charged by Authority-authorized companies shall not
exceed the following rates or such rates as may be approved and amended
by the Board from time to time in accordance with the Administrative
Procedure Act, N.J.S.A. 52:14B-1 et seq., and the rules on agency
rulemaking, N.J.A.C. 1:30:
1. Passenger Vehicles: First 12 hours free; $[40.00]43.00 per calendar
day thereafter.
2. Vehicles up to 15,000 pounds G.V.W.R.: First 12 hours free;
$[75.00] 81.00 per calendar day thereafter.
3. Vehicles over 15,000 pounds G.V.W.R.:
i. All except buses: First 12 hours free; $[75.00]81.00 per unit per
calendar day thereafter; and
ii. (No change.)
19:9-3.2 Road services rates on the Roadway
(a) Road service rates on the Turnpike for Class 1 Vehicles charged by
Authority-authorized service companies shall conform with the following
rates or such rates as may be approved and amended by the Board from
time to time in accordance with the Administrative Procedure Act,
N.J.S.A. 52:14B-1 et seq., and the rules on agency rulemaking, N.J.A.C.
1:30:
1. Road service charge: $[75.00]81.00;
2.-6. (No change.)
7. Tire repair/replacement services for trucks and buses: The service
charge to be charged by a contractor shall not exceed $[156.00]168.00.
The maximum hourly labor rate shall not exceed $[94.00]101.00 per hour.
The only charges that a contractor may charge a patron are: the service
charge bid by the contractor; if applicable, the hourly labor rate bid by the
contractor multiplied by the actual time spent by the contractor at the
scene, beyond the initial one-half hour, in repairing/replacing tires and/or
rims; if applicable, an additional tire service charge of $[31.00]33.50 for
each additional tire change beyond the first tire change; and the retail price
of any supplied tires or rims and any other related equipment supplied. No
other charges are permitted. The terms “contractor,” “service charge,”
“hourly labor rate,” and “additional tire service charge” are defined terms
that shall have the meanings set forth in the procurement documents
issued by the Authority from time to time for tire repair/replacement
services for trucks and buses.
(b) Road service rates on the Parkway for Class 1 Vehicles charged by
Authority-authorized towing and emergency service providers shall
conform with the following rates or such rates as may be approved and
amended by the Board from time to time in accordance with the
Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq., and the rules on
agency rulemaking, N.J.A.C. 1:30:
1. Road service charge: $[75.00]81.00;
2.-6. (No change.)
7. Tire repair/replacement services for trucks and buses: The service
charge to be charged by a contractor shall not exceed $[156.00]168.00.
The maximum hourly labor rate shall not exceed $[94.00]101.00 per hour.
The only charges that a contractor may charge a patron are: the service
charge bid by the contractor; if applicable, the hourly labor rate bid by the
contractor multiplied by the actual time spent by the contractor at the
scene, beyond the initial one-half hour, in repairing/replacing tires and/or
rims; if applicable, an additional tire service charge of $[31.00]33.50 for
each additional tire change beyond the first tire change; and the retail price
of any supplied tires or rims and any other related equipment supplied. No
other charges are permitted. The terms “contractor,” “service charge,”
“hourly labor rate,” and “additional tire service charge” are defined terms
that shall have the meanings set forth in the procurement documents
issued by the Authority from time to time for tire repair/replacement
services for trucks and buses.