California’s General Assembly has passed a revised version of Assembly Bill 987, a piece of legislation aimed at curbing what lawmakers see as excessive vehicle towing and storage fees across the state. The bill, introduced earlier this year by Assembly Member LaShae Sharp-Collins (D-79), now heads to the governor’s desk for final approval.
Lawmakers Refine Language Around Unreasonable Storage Fees
The original version of the bill had proposed broad restrictions on fees charged by towing and storage operators, including a ban on fees incurred on days when storage facilities are closed. That section has now been removed.
As it stands, the revised bill specifies that “unreasonable” storage fees include any charges levied for state holidays that exceed the posted daily storage rate. It also limits fees in cases where a vehicle is recovered by its owner within the first 12 hours of storage—capping charges at 50% above the daily rate in such instances.
Sections of the initial proposal that would have disqualified fees during natural disasters or when a stolen vehicle is recovered within a week have also been struck from the final text.
These amendments follow lobbying efforts by Jack Molondanof, a representative of the California Autobody Association (CAA). According to Molondanof, the bill’s original wording failed to distinguish between towing companies and repair shops, which are governed by different state regulatory bodies—the Department of Motor Vehicles and the Bureau of Automotive Repair, respectively.
Industry Engagement Influences Outcome
According to Molondanof, the CAA raised early concerns that Assembly Bill 987 blurred the lines between consensual and non-consensual towing, and risked applying the same fee structure to both tow operators and automotive repair facilities—despite their differing operational models.
“Towing and storage businesses, regulated by the Department of Motor Vehicles, own and operate tow trucks with the primary focus on towing and storing vehicles and are required to have a motor carrier permit. In contrast, automotive repair facilities are regulated by the Bureau of Automotive Repair (BAR) and do not operate tow trucks. These repair facilities primarily focus on vehicle repairs, with storage as an ancillary service. The [original] bill fails to recognize these differences and inappropriately applies storage requirements across these two separate industries.” he stated.
Legislative staff for Sharp-Collins reportedly acknowledged the unintended scope of the original draft and worked with the CAA to implement revisions. “They committed to working with us on amendments to address these concerns, which they have done. We are very appreciative and thankful for their cooperation in this regard.” Molondanof said.
While the bill still seeks to limit predatory practices in the towing industry, the softened language suggests a legislative preference for targeted oversight rather than sweeping regulation.
