California Moves Toward New Towing, Storage Rules

California is close to passing AB 987, a bill that would tighten rules on vehicle towing and storage fees. The measure, authored by Assemblymember LaShae Sharp-Collins, recently cleared the Senate’s consent calendar after unanimous committee approval and is expected to reach Gov. Gavin Newsom’s desk.

AB 987 expands the list of “presumptively unreasonable” fees that tow operators cannot charge. These include administrative, security, dolly, and gate fees—except in specific after-hours cases—as well as excessive holiday storage rates. The bill also limits fees for vehicles towed during emergencies and prohibits charging when repair shops are closed or on holidays.

Under the bill, towing and storage charges must remain “reasonable” and comparable to rates set by public agencies. Insurers remain responsible for covering reasonable charges, while facilities must release vehicles promptly after payment to avoid extra fees.

The legislation follows increased scrutiny of towing practices and aims to protect consumers from surprise charges while ensuring clarity for collision repair and storage facilities. Source: https://www.autobodynews.com/ and https://leginfo.legislature.ca.gov