Towing Issues: Releasing vehicle to someone other than RO, illegal immigrants, driving cars

Question
Dear Rich,

I have police contracts here in NJ.  Sometimes the police department issues releases to someone other than the registered owner.  In fact, the registered owner is not present at the PD to get the release.  It seems all you need is the registration and a licensed driver.  Is there a law that allows me to release the vehicle to the registered owner only?  Afterall, I did sign a holdharmless agreement with the town.  Also are there any laws that would require us government ID.  (my case involves unlicensed illegal immigrants driving cars that are legally registered to someone else)

Sincerely,
Me

Answer
Well I tried to research this issue and best answers I can come up with is one which  you most likely have found.

If the vehicle is towed per order of the police department and they require that the vehicle owner - responsible party needs a "physical paper release" from the impounding agency, then you should follow the policy and release it "to the party (s) listed on the (official) papers and no one else.

Yes you can cover your behind by only allowing the vehicle to be "driven off your property" by a licensed driver only.  

There is much discussion on different towing forums about this issue and it tends to be more a liability issue which is what is raised (think along the lines of the bartender serving a drunk who drives)

I know that New Jersey also just enacted the towing bill of rights or what ever law it is called, but not sure exactly if there is any restrictions on "legal documents" being required upon release...