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Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would shorten this period to the first 5 days, and beyond the first 5 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified. The bill would also require notification to be made to the insurer of the vehicle if notification of the legal owner is not successful and that insurer is known.

This bill would require that fees charged under these provisions for towing and storage be reasonable, as defined.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. This The bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also generally requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request. A person who violates these provisions is civilly liable to the registered or legal owner of the vehicle, or the registered owners insurer, as specified.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, hours, authorizing payment of charges to be made by insurers check, and allowing an owner or insurer to inspect a stored vehicle for no less than 3 hours, and removing the exemption for the described notice to be posted at automotive repair shops that charge for vehicle storage but do not provide towing services. vehicle, as specified. The bill would make conforming changes to the notice required to be posted at specified facilities. The bill would extend application of the consumer protections to any facility that charges for the storage of a vehicle, including among others, a repair garage or service station, but excluding a new motor vehicle dealer.

By expanding the scope of consumer protections for towing and storage customers, the violation of which is an infraction, this bill would create a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.

Under existing law, when a vehicle has been towed and stored, the legal owner may only be charged a storage fee during the first 15 days of possession, and beyond the first 15 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified.

This bill would shorten this period to the first 5 days, and beyond the first 5 days, only for any time after 3 days have lapsed after written notification has been made to the legal owner, as specified. The bill would also require notification to be made to the insurer of the vehicle if notification of the legal owner is not successful and that insurer is known.

Existing law makes an insurer that is responsible for reasonable towing and storage charges liable to the person providing those services, as specified.

This bill would define reasonable charges for these purposes and would provide a list of fees that are presumptively unreasonable. This bill would also require that fees charged for towing and storage, as specified, be reasonable.

Existing law grants certain consumer rights to those who utilize towing and storage providers, including the right to retrieve personal belongings from a vehicle without charge, the right to pay by cash or credit card, and the right to receive an itemized statement of charges. Existing law also requires these businesses to post a prescribed notice outlining these rights in a place visible to the public and to provide a copy of the notice to customers upon request.

This bill would grant additional consumer protections, including requiring facilities to be open and accessible during normal business hours, allowing an owner or insurer to inspect a stored vehicle for no less than 3 hours, and removing the exemption for the described notice to be posted at automotive repair shops that charge for vehicle storage but do not provide towing services.

By expanding the scope of consumer protections for towing and storage customers, the violation of which is an infraction, this bill would create a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Version:

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

(d)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

(e)Nothing in paragraph (3) of subdivision (c) prohibits any fees authorized in an agreement between a law enforcement agency and a towing company, if the tow was initiated by the law enforcement agency.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurer inspect your vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, insurers check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n)This section does not relieve a person from the obligation to comply with any other law.

(o)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

(d)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

(e)Nothing in paragraph (3) of subdivision (c) prohibits any fees authorized in an agreement between a law enforcement agency and a towing company, if the tow was initiated by the law enforcement agency.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurer inspect your vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, insurers check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n)This section does not relieve a person from the obligation to comply with any other law.

(o)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

(d)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

(e)Nothing in paragraph (3) of subdivision (c) prohibits any fees authorized in an agreement between a law enforcement agency and a towing company, if the tow was initiated by the law enforcement agency.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurer inspect your vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, insurers check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n)This section does not relieve a person from the obligation to comply with any other law.

(o)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)Unless authorized by a governmental entity, the The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

(d)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurer inspect your vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, insurers check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n)This section does not relieve a person from the obligation to comply with any other law.

(o)Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)Unless authorized by a governmental entity, the following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurer inspect your vehicle at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, insurers check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n) This section does not relieve a person from the obligation to comply with any other law.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2)(A)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(3)

(B)A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(4)

(3)The Unless authorized by a governmental entity, the following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect the vehicle without paying a fee.

(B)Have his or her insurer inspect the vehicle for a period limited to no less than ___ hours without paying a fee. at the storage facility, at no charge, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than six business hours after a message has been left.

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash, valid bank credit card, or a check issued by your insurer.

Inspect your vehicle.

Have your insurance carrier insurer inspect your vehicle at the storage facility, at no charge, for a period that may not be restricted to less than ___ consecutive hours, during normal business hours. However, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to any other waiting customer, after which the insurer may resume the inspection for additional increments of 45 consecutive minutes, as necessary.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(i)An insurer, insurers agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two times the amount charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n) This section does not relieve a person from the obligation to comply with any other law.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first five days of possession and (2) following that five-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.(b)If notification pursuant to subdivision (a) is not successful or is not able to be made, and the insurer of the vehicle is known, or may be ascertained from the insurance records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed from the time this subdivision is applicable until notification is made.(c)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.(d)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) or (b) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a) or (b), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. For purposes of this section, fees are presumed to be reasonable if they comply with subdivision (c) of Section 22524.5.

(d)

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or stolen recovery of a stolen vehicle shall be reasonable.

(2)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department. A

(3)A storage rate and fee shall be deemed reasonable if it is comparable to storage storage-related rates and fees charged by other storage facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3)

(4)The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees. fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, shall do all of the following:

(1)Post (A)Except as provided in subparagraph (B), post in the office area of the storage facility, in plain view of the public, the Towing and Storage Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirements to post the Towing and Storage Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing and Storage Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing and Storage Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a person facility that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (e), (g) the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall shall, at any facility where the vehicle is being stored, have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)(A)Inspect or have his or her insurer inspect the vehicle for a period limited to no less than three hours without paying a fee.

(B)Have his or her insurer inspect the vehicle for a period limited to no less than ___ hours without paying a fee.

(4)Request a copy of the Towing and Storage Fees and Access Notice.

(5)Be permitted to pay by cash cash, insurers check, or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than 18 six business hours after a message has been left.

(e)Upon payment of any towing, recovery, or storage-related fees due, and upon presentation of any required releases and satisfactory evidence of authority to take possession of the vehicle, a vehicle shall be released without delay to the owner, owners agent, or insurer.(f)

(e)The Towing and Storage Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing and Storage Fees and Access Notice shall read as follows:

Towing and Storage Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing and Storage Fees and Access Notice.

Pay by cash or cash, valid bank credit card. card, or a check issued by your insurer.

Inspect your vehicle or have vehicle.

Have your insurance carrier inspect your vehicle at the storage facility, at no charge, for a period that may not be restricted to less than three ___ consecutive hours, during normal business hours.

You and your insurance company or the insurance company representative have the right to have the vehicle released immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, in the case of a fatality or crime, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(g)

(f)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(h)

(g)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(i)

(h)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(j)

(i)An insurer or insurer, insurers agent agent, or tow hauler, shall be permitted to pay for towing and storage charges by a valid bank credit card, check, or bank draft.

(j)Except as otherwise exempted in this section, the requirements of this section apply to any facility that charges for the storage of a vehicle, including, but not limited to, a vehicle repair garage or service station, but not including a new motor vehicle dealer.

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to three two times the amount charged or one thousand dollars ($1000) per violation, whichever is greater. charged. Liability in any action brought under this section shall not exceed five hundred dollars ($500) per vehicle.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(n) This section does not relieve a person from the obligation to comply with the provision of any other law.

SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

The people of the State of California do enact as follows:SECTION 1.Section 10652.5 of the Vehicle Code is amended to read:10652.5.

(a)Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 five days of possession and (2) following that 15-day five-day period, the period commencing three days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b)If notification pursuant to subdivision (a) is not successful or is not able to be made, and the insurer of the vehicle is known, or may be ascertained from the insurance records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed from the time this subdivision is applicable until notification is made.

(b)

(c)The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c)

(d)In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) or (b) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), (a) or (b), the prevailing party shall be entitled to reasonable attorneys fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d)

(e)This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

SEC. 2.Section 22524.5 of the Vehicle Code is amended to read:22524.5.

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1)All towing and storage fees charged when those services are performed as a result of an accident or stolen recovery shall be reasonable.

(2)For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department. A storage rate and fee shall be deemed reasonable if it is comparable to storage rates and fees charged by other storage facilities in the same locale.

(3)The following rates and fees are presumptively unreasonable:

(A)Administrative or filing fees.

(B)Security fees.

(C)Dolly fees.

(D)Load and unload fees.

(E)Pull-out fees.

(F)Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.

SEC. 3.Section 22651.07 of the Vehicle Code is amended to read:22651.07.

(a)A person, including a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, or both, except for storage unrelated to a tow, shall do all of the following:

(1)(A)Except as provided in subparagraph (B), post Post in the office area of the storage facility, in plain view of the public, the Towing Fees and Access Notice and have copies readily available to the public.

(B)An automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, that does not provide towing services is exempt from the requirement to post the Towing Fees and Access Notice in the office area.

(2)Provide, upon request, a copy of the Towing Fees and Access Notice to any owner or operator of a towed or stored vehicle.

(3)Provide a distinct notice on an itemized invoice for any towing or storage, or both, charges stating: Upon request, you are entitled to receive a copy of the Towing Fees and Access Notice. This notice shall be contained within a bordered text box, printed in no less than 10-point type.

(b)Prior to receiving payment for any towing, recovery, or storage-related fees, a person that charges for towing or storage, or both, shall provide an itemized invoice of actual charges to the vehicle owner or his or her agent. If an automotive repair dealer, registered pursuant to Article 3 (commencing with Section 9884) of Chapter 20.3 of Division 3 of the Business and Professions Code, did not provide the tow, and passes along, from the tower to the consumer, any of the information required on the itemized invoice, pursuant to subdivision (e), the automotive repair dealer shall not be responsible for the accuracy of those items of information that remain unaltered.

(c)Prior to paying any towing, recovery, or storage-related fees, a vehicle owner or his or her agent or a licensed repossessor shall have the right to all of the following:

(1)Receive his or her personal property, at no charge, during normal business hours. Normal business hours for releasing collateral and personal property are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays.

(2)Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee.

(3)Inspect or have his or her insurer inspect the vehicle for a period limited to no less than three hours without paying a fee.

(3)

(4)Request a copy of the Towing Fees and Access Notice.

(4)

(5)Be permitted to pay by cash or a valid bank credit card. Credit charges for towing and storage services shall comply with Section 1748.1 of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when agreeing with a towing or storage provider on rates.

(d)A storage facility shall be open and accessible during normal business hours, as defined in subdivision (c). Outside of normal business hours, the facility shall provide a telephone number that permits the caller to leave a message. Calls to this number shall be returned no later than 18 hours after a message has been left.

(e)Upon payment of any towing, recovery, or storage-related fees due, and upon presentation of any required releases and satisfactory evidence of authority to take possession of the vehicle, a vehicle shall be released without delay to the owner, owners agent, or insurer.

(d)

(f)The Towing Fees and Access Notice shall be a standardized document plainly printed in no less that 10-point type. A person may distribute the form using its own letterhead, but the language of the Towing Fees and Access Notice shall read as follows:

Towing Fees and Access Notice

Note: The following information is intended to serve as a general summary of some of the laws that provide vehicle owners certain rights when their vehicle is towed. It is not intended to summarize all of the laws that may be applicable nor is it intended to fully and completely state the entire law in any area listed. Please review the applicable California code for a definitive statement of the law in your particular situation.

How much can a towing company charge?

Rates for public tows and storage are generally established by an agreement between the law enforcement agency requesting the tow and the towing company (to confirm the approved rates, you may contact the law enforcement agency that initiated the tow; additionally, these rates are required to be posted at the storage facility).

Rates for private property tows and storage cannot exceed the approved rates for the law enforcement agency that has primary jurisdiction for the property from which the vehicle was removed or the towing companys approved CHP rate.

Rates for owners request tows and storage are generally established by mutual agreement between the requestor and the towing company, but may be dictated by agreements established between the requestors motor club and motor club service provider.

Where can you complain about a towing company?

For public tows: Contact the law enforcement agency initiating the tow.

Your rights if your vehicle is towed:

Generally, prior to paying any towing and storage-related fees you have the right to:

Receive an itemized invoice of actual charges.

Receive your personal property, at no charge, during normal business hours.

Retrieve your vehicle during the first 72 hours of storage and not pay a lien fee.

Request a copy of the Towing Fees and Access Notice.

Pay by cash or valid bank credit card.

Inspect your vehicle or have your insurance carrier inspect your vehicle at the storage facility, at no charge, for a period that may not be restricted to less than three consecutive hours, during normal business hours.

You and your insurance company have the right to have the vehicle released to you immediately upon (1) payment of all towing and storage-related fees, (2) presentation of a valid photo identification, (3) presentation of reliable documentation showing that you are the owner owner, insured, or insurer of the vehicle or that the owner has authorized you to take possession of the vehicle, and (4), if applicable, presentation of any required police or law enforcement release documents.

Prior to your vehicle being repaired:

You have the right to choose the repair facility and to have no repairs made to your vehicle unless you authorize them in writing.

Any authorization you sign for towing and any authorization you sign for repair must be on separate forms.

What if I do not pay the towing and storage-related fees or abandon my vehicle at the towing company?

Pursuant to Sections 3068.1 to 3074, inclusive, of the Civil Code, a towing company may sell your vehicle and any moneys received will be applied to towing and storage-related fees that have accumulated against your vehicle.

You are responsible for paying the towing company any outstanding balance due on any of these fees once the sale is complete.

Who is liable if my vehicle was damaged during towing or storage?

Generally the owner of a vehicle may recover for any damage to the vehicle resulting from any intentional or negligent act of a person causing the removal of, or removing, the vehicle.

What happens if a towing company violates the law?

If a tow company does not satisfactorily meet certain requirements detailed in this notice, you may bring a lawsuit in court, generally in small claims court. The tower may be civilly liable for damages up to two times the amount charged, not to exceed $500, and possibly more for certain violations.

(g)Insurer, as used in this section, means either a first-party insurer or third-party insurer.

(e)

(h)Itemized invoice, as used in this section, means a written document that contains the following information. Any document that substantially complies with this subdivision shall be deemed an itemized invoice for purposes of this section:

(1)The name, address, telephone number, and carrier identification number as required by subdivision (a) of Section 34507.5 of the person that is charging for towing and storage.

(2)If ascertainable, the registered owner or operators name, address, and telephone number.

(3)The date service was initiated.

(4)The location of the vehicle at the time service was initiated, including either the address or nearest intersecting roadways.

(5)A vehicle description that includes, if ascertainable, the vehicle year, make, model, odometer reading, license plate number, or if a license plate number is unavailable, the vehicle identification number (VIN).

(6)The service dispatch time, the service arrival time of the tow truck, and the service completion time.

(7)A clear, itemized, and detailed explanation of any additional services that caused the total towing-related service time to exceed one hour between service dispatch time and service completion time.

(8)The hourly rate or per item rate used to calculate the total towing and recovery-related fees. These fees shall be listed as separate line items.

(9)If subject to storage fees, the daily storage rate and the total number of days stored. The storage fees shall be listed as a separate line item. Storage rates shall comply with the requirements of subdivision (c) of Section 22524.5.

(10)If subject to a gate fee, the date and time the vehicle was either accessed, for the purposes of returning personal property, or was released after normal business hours. Normal business hours are Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except state holidays. A gate fee shall be listed as a separate line item. A gate fee shall comply with the requirements in subdivision (c) of Section 22524.5.

(11)A description of the method of towing.

(12)If the tow was not requested by the vehicles owner or driver, the identity of the person or governmental agency that directed the tow. This paragraph shall not apply to information otherwise required to be redacted under Section 22658.

(13)A clear, itemized, and detailed explanation of any additional services or fees.

(f)

(i)Person, as used in this section, includes those entities described in subdivision (a) and has the same meaning as described in Section 470.

(g)

(j)An insurer or insurers agent shall be permitted to pay for towing and storage charges by a valid bank credit card, check, or bank draft.

(h)

(k)A person who violates this section is civilly liable to a registered or legal owner of the vehicle, or a registered owners insurer, for up to two three times the amount charged. For any action brought under this section, liability shall not exceed five hundred dollars ($500) per vehicle. charged or one thousand dollars ($1000) per violation, whichever is greater.

(l)A suspected violation of this section may be reported by any person, including, without limitation, the legal or registered owner of a vehicle or his or her insurer.

(i)

(m)This section shall not apply to the towing or storage of a repossessed vehicle by any person subject to, or exempt from, the Collateral Recovery Act (Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code).

(j)

(n)This section does not relieve a person from the obligation to comply with the provision of any other law.

SEC. 4.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

Date	Status
Sep 17, 2018	Chaptered by Secretary of State - Chapter 434, Statutes of 2018.
Sep 17, 2018	Approved by the Governor.
Sep 5, 2018	Enrolled and presented to the Governor at 3 p.m.
Aug 27, 2018	Senate amendments concurred in. To Engrossing and Enrolling.
Aug 23, 2018	In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.
Aug 23, 2018	Read third time. Passed. Ordered to the Assembly.
Aug 20, 2018	Read second time. Ordered to third reading.
Aug 16, 2018	Read third time and amended. Ordered to second reading.
Aug 7, 2018	Read second time. Ordered to third reading.
Aug 6, 2018	From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
Aug 6, 2018	From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
Jun 21, 2018	Withdrawn from committee.
Jun 20, 2018	Read second time and amended. Re-referred to Com. on JUD.
Jun 19, 2018	From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 9. Noes 0.) (June 18).
Jun 7, 2018	Referred to Coms. on B., P. & E.D. and JUD.
May 30, 2018	In Senate. Read first time. To Com. on RLS. for assignment.
May 29, 2018	Read third time. Passed. Ordered to the Senate.
May 25, 2018	Read third time and amended. Ordered to third reading.
May 3, 2018	Read second time. Ordered to third reading.
May 2, 2018	From committee: Do pass. (Ayes 17. Noes 0.) (May 2).
Apr 24, 2018	From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 23). Re-referred to Com. on APPR.
Apr 17, 2018	Re-referred to Com. on TRANS.
Apr 16, 2018	From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.
Mar 5, 2018	Referred to Com. on TRANS.
Feb 15, 2018	From printer. May be heard in committee March 17.
Feb 14, 2018	Read first time. To print.

Date	Description	Location	Votes
Aug 27, 2018	AB 2392 SANTIAGO Concurrence in Senate Amendments	Assembly Floor	80 0 0 Passed
Aug 23, 2018	Assembly 3rd Reading AB2392 Santiago By Mitchell	Senate Floor	37 0 3 Passed
Jun 18, 2018	Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]	Senate Standing Committee on Business, Professions and Economic Development	9 0 0 Passed
May 29, 2018	AB 2392 SANTIAGO Assembly Third Reading	Assembly Floor	74 1 3 Passed
May 2, 2018	Do pass.	Assembly Standing Committee on Appropriations	17 0 0 Passed
Apr 23, 2018	Do pass and be re-referred to the Committee on [Appropriations]	Assembly Standing Committee on Transportation	13 0 1 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
Allstate Insurance	* Support	Jun 18, 2018
American Civil Liberties Union of California	** Support	Aug 20, 2018
American Insurance Association	** Support	Aug 20, 2018
California Autobody Association	* Support	Apr 23, 2018
California New Car Dealer's Association	* Neutral	Apr 23, 2018
California State Sheriff's Association	* Against	Apr 23, 2018
California Tow Truck Association	* Support	Jun 18, 2018
Copart Inc.	* Support	Apr 23, 2018
McHugh, Koepke & Associates	* Support	Jun 18, 2018
National Association of Mutual Insurance Companies	** Support	Jun 15, 2018
National Insurance Crime Bureau	** Support	Aug 20, 2018
Pacific Association Of Domestic Insurance Companies	** Support	Aug 20, 2018
Personal Insurance Federation Of California	** Support	Aug 20, 2018
Property Casualty Insurers	** Support	Apr 20, 2018
Property Casualty Insurers Association of America	** Support	Aug 20, 2018
State Farm Mutual Automobile Insurance Company	** Support	Aug 20, 2018
The Western Center on Law and Poverty	* Support	Jun 18, 2018
Travelers	* Support	Jun 18, 2018
United Ways Of California	** Support	Aug 20, 2018

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2392

Author:(Santiago)

As Amended Ver:August 16, 2018

Majority vote

ASSEMBLY:

74-1

(May 29, 2018)

SENATE:

37-0

(August 23, 2018)

Original Committee Reference: TRANS.

SUMMARY: Provides additional consumer protections for towing and storage customers, including specifying what fees are considered reasonable or unreasonable.

The Senate amendments:

Clarify that an insurer, insurer's agent, or tow hauler may pay for towing and storage facility charges with an insurer's check instead of a check.
Clarify that any fees authorized in an agreement between a law enforcement agency and a towing company are not considered unreasonable if the tow was initiated by the law enforcement agency.

AS PASSED BY THE ASSEMBLY, this bill:

Required all towing and storage fees charged to a legal owner of a motor vehicle to be reasonable.
Considered the following fees reasonable:
1. All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle;
2. The fees do not exceed the rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol (CHP) or local police departments; and,
3. The fees are comparable to storage-related rates charged by other facilities in the same locale.
The following rates are considered unreasonable, unless authorized by a governmental entity:
1. Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
2. Security fees, dolly fees, load and unload fees, pull-out fees; and,
3. Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Provided that an insurer must be allowed to inspect a vehicle, free of charge, in 45 minute increments during normal business hours.
Provided that an insurer can pay the storage and towing fees with an insurer's check.
Required a storage facility, as defined, to be open and accessible during normal business hours. Outside of normal business hours the facility must provide a telephone number that permits the caller to leave a message. Calls to this number must be returned no later than six business hours after the message has been left.
Updated the Towing and Storage Fees and Access Notice to include the legal changes reflected in this bill.
Specified that the provisions in this bill do not apply to a new motor vehicle dealer.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

The Cost of Fees: According to the Property Casualty Insurer's Association, car insurance rates in the United States are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. The California Legislature has taken several steps to reduce a number of anti-consumer behaviors by some towing and storage companies, including the passage of AB 519 (Solorio), Chapter 566, Statutes of 2010, which required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

In order to protect against unreasonable fees, this bill seeks to clarify what fees are considered reasonable and what fees are not. Fees that are no higher than those charged to the CHP or local law enforcement agencies will automatically be considered reasonable. However tack-on fees, security fees, dolly fees, load and unload fees, pull-out fees, and certain gate fees are defined as unreasonable.

Delaying the Inevitable: Insurance companies are claiming some storage and towing services are using delaying tactics as a means of keeping a vehicle longer for higher charges. For example, towing companies are refusing to take insurance checks, are not accessible during normal business hours, or are not returning phone calls from insurance companies.

In the past, the Legislature has required storage and towing facilities to be open during a defined period of time and are required to accept credit cards or cash. This bill will also require these facilities to accept an insurance check as a form of payment. In addition, this bill requires these facilities to have a phone that has voicemail, and requires them to return a phone call from an insurance agent within six business hours.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0004719

SENATE RULES COMMITTEE

Office of Senate Floor Analyses

(916) 651-1520 Fax: (916) 327-4478

AB

THIRD READING

Bill No: AB 2392

Author:

:

Vote:

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/18/18

AYES: Hill, Fuller, Allen, Dodd, Galgiani, Glazer, Hernandez, Pan, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-1, 5/29/18 - See last page for vote

SUBJECT:

SOURCE: American Insurance Association

DIGEST:

This bill requires all towing and storage fees to be reasonable and enhances consumer protections for towing and storage customers, as specified.

Senate Floor Amendments of 8/16/18 clarify that specified fees authorized in an agreement between a law enforcement agency and a towing company are not prohibited if the tow was initiated by the law enforcement agency.

ANALYSIS:

Existing law:

Prohibits a fee or service charge for parking and storage on a vehicle after the first 15 days, and three days after notice has been sent by the person in possession to the legal owner by certified mail, when the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records from the Department of Motor Vehicles (DMV), unless the vehicle is stored under the authority of the judicial process. (Vehicle Code (VC) § 16052.5(a))
Authorizes a vehicle owner, his or her agent or a licensed repossessor prior to paying for any towing, recovery, or storage related fees to receive his or her personal property at no charge, during normal business hours (8 a.m. through 5 p.m.) Monday-Friday; retrieve his or her vehicle during the first 72 hours and not pay a lien fee; request a copy of the towing fees and access notice; and, be permitted to pay cash or a valid bank card, as specified. (VC § 22651.07)

This bill:

Requires all storage and towing fees charged to a legal owner of a motor vehicle to be reasonable, as specified. Requires all towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle to be reasonable. Deems a towing and storage charge to be reasonable if it does not exceed those rates and fees charged for similar services provided in response to requests initiated by a public agency, including but not limited to, the Department of the California Highway Patrol (CHP) or local police department. Deems a storage rate and fee to be reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale, but does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.
Specifies that the following rates and fees are presumptively unreasonable: administrative or filing fees, except those incurred related to documentation from DMV and those related to the lien sale of a vehicle; security fees; dolly fees; load and unload fees; pull-out fees; and, gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Clarifies that 2) above does not prohibit any fees authorized in an agreement between a law enforcement agency and a towing company, if the tow was initiated by the law enforcement agency.
Authorizes a vehicle owner, his or her agent, or a repossessor prior to paying any towing, recovery, or storage related fees to inspect the vehicle without paying a fee or have an insurer inspect the vehicle at the storage facility at no charge during normal business hours; however, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to customers, as specified.
Requires a towing or storage facility to accept an insurer’s check as a form of payment.
Requires a storage facility to be open and accessible during normal business hours and outside of normal business hours, the facility must provide a telephone number that permits the caller to leave a message and calls must be returned no later than six business hours after a message has been left.
Adds information to the towing and storage fees and access notice related to vehicle inspections and releases by insurance carriers. Defines, for purposes of this bill, “insurer” to mean either a first-party insurer or third-party insurer.
Authorizes a tow hauler to pay for towing and storage fees, as specified.

Background

In 2010, AB 519 (Solorio, Chapter 566, Statutes of 2010) required tow companies to provide consumers with a Towing Fees and Access Notice, an itemized invoice of all towing and storage fees, and specify who is authorized to retrieve or inspect a towed vehicle. In addition, that bill specified liability protections for storage facilities for vehicles releases under certain circumstances. AB 519 did not address the issue of fees as this bill does. This bill mandates that all towing and storage fees charged to a legal owner of a vehicle be reasonable, and further specifies what reasonable fees are. This bill applies to any facility that charges for the storage of a vehicle, except a new motor vehicle dealer.

Under existing law, any insurer that is responsible for the coverage of ordinary and reasonable towing and storage fees, under an automobile insurance policy, is liable for charges when a vehicle is towed and stored as a result of an accident or stolen recovery. This bill amends existing law to specify that all towing and storage fees charges resulting from an accident or the recovery of a stolen vehicle be “reasonable” and further defines what “reasonable” is. Fees that are no higher than those that are charged to the CHP or local law enforcement agencies, will be deemed reasonable along with fees that are comparable to other storage-related fees charged by other facilities in the same locale. As currently drafted, this bill specifies that certain fees are not considered “reasonable” including: administrative or filing fees; security fees’ dolly fees; load and unload fees; pull-out fees; and gate fees. This bill requires the acceptance of an insurer’s check in addition to the current requirements to accept cash and a credit card.

This bill also enhances consumer access requirements when a vehicle is towed and stored. This bill clarifies that an individual has the right to inspect their vehicle without paying a fee, have his or her insurer inspect the vehicle in 45 minute increments at no charge during normal business hours, and requires that a tow and storage facility be open and accessible during normal business hours and return calls within a six-business hour window. This bill revises the current towing and fee access notice to include information about the insurer’s inspection authority and provide notice that the fees must be reasonable, among other consumer information.

The author and sponsors of this bill have noted examples of consumers being charged perceivably high fees when retrieving a vehicle from a towing and storage facility. A March 16, 2018 KCRA news report (http://www.kcra.com/article/chp-illegal-tow-truck-scam-impacted-250-people-possibly-more/19466040), reported that “Owners and employers at one of Sacramento’s largest tow truck companies have been arrested and are accused of illegally towing cars to collect impound fees….The company collected $100,000 in impound fees from people whose vehicles never should have been towed in the first place.” In a July 15, 2015 LA Times news article, (http://www.latimes.com/local/california/la-me -0721-fire-tow-20150721-story.html), “Cajon Pass Fire: I Didn’t do anything Illegal”, it was reported that during the Cajon Pass fire, upon law enforcement orders, a women left her vehicle on the freeway, and was charged a $1,600 towing fee. This bill attempts to address purported high costs of tow and storage services by requiring that tow and storage facilities only charge “reasonable” fees.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/16/18)

American Insurance Association (source)

American Civil Liberties Union of California

California Tow Truck Association

National Association of Mutual Insurance Companies

National Insurance Crime Bureau

Pacific Association of Domestic Insurance Companies

Personal Insurance Federation of California

Property Casualty Insurers Association of America

State Farm Mutual Automobile Insurance Company

United Ways of California

OPPOSITION: (Verified 8/16/18)

None received

ARGUMENTS IN SUPPORT: Supporters state that “this bill would strengthen existing towing and storage laws by clearly allowing payment by credit card and check, providing benchmarks for storage fees to automatically be presumed reasonable, requiring reasonable time for inspection of the vehicle, requiring responses to inquiries regarding the vehicle, and allowing insurers to pay directly for towing and/or storage fees. For those who don’t have insurers to help resolve these issues, they are often left with little recourse except to pay.”

According to State Farm Mutual Automobile Insurance Company, “Towing and storage fees are becoming an increasingly large percentage of the payouts in automobile crashes, contributing to higher insurance premiums. And while a majority of towing companies are behaving in a fair and responsible manner, some are employing tactics that unnecessarily drive up costs, such as holding cars longer than necessary for high fees, or charging extra and unnecessary fees for towing cars from accidents. These delaying tactics do nothing other than drive up the price for consumers.”

The California Tow Truck Association writes in support, “AB 2392 attempts to raise the standards of professionalism in the industry by making a number of changes to existing law to ensure that bad actors are not price-gouging and that consumers and their agents have adequate access to and information about vehicles being stored by a tow company.”

ASSEMBLY FLOOR: 74-1, 5/29/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon

NOES: Waldron

NO VOTE RECORDED: Travis Allen, Kiley, Voepel

Prepared by: 916-651-4104

8/20/18 16:25:19

**** END ****

SENATE RULES COMMITTEE

Office of Senate Floor Analyses

(916) 651-1520 Fax: (916) 327-4478

AB

THIRD READING

Bill No: AB 2392

Author:

:

Vote:

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/18/18

AYES: Hill, Fuller, Allen, Dodd, Galgiani, Glazer, Hernandez, Pan, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 74-1, 5/29/18 - See last page for vote

SUBJECT:

SOURCE: American Insurance Association

DIGEST:

This bill requires all towing and storage fees to be reasonable and enhances consumer protections for towing and storage customers, as specified.

ANALYSIS:

Existing law:

Prohibits a fee or service charge for parking and storage on a vehicle after the first 15 days, and three days after notice has been sent by the person in possession to the legal owner by certified mail, when the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records from the Department of Motor Vehicles (DMV), unless the vehicle is stored under the authority of the judicial process. (Vehicle Code (VC) § 16052.5(a))
Authorizes a vehicle owner, his or her agent or a licensed repossessor prior to paying for any towing, recovery, or storage related fees to receive his or her personal property at no charge, during normal business hours (8 a.m. through 5 p.m.) Monday-Friday; retrieve his or her vehicle during the first 72 hours and not pay a lien fee; request a copy of the towing fees and access notice; and, be permitted to pay cash or a valid bank card, as specified. (VC § 22651.07)

This bill:

Requires all storage and towing fees charged to a legal owner of a motor vehicle to be reasonable, as specified. Requires all towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle to be reasonable. Deems a towing and storage charge to be reasonable if it does not exceed those rates and fees charged for similar services provided in response to requests initiated by a public agency, including but not limited to, the Department of the California Highway Patrol or local police department. Deems a storage rate and fee to be reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale, but does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.
Specifies that the following rates and fees are presumptively unreasonable: administrative or filing fees, except those incurred related to documentation from DMV and those related to the lien sale of a vehicle; security fees; dolly fees; load and unload fees; pull-out fees; and, gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Authorizes a vehicle owner, his or her agent, or a repossessor prior to paying any towing, recovery, or storage related fees to inspect the vehicle without paying a fee or have an insurer inspect the vehicle at the storage facility at no charge during normal business hours; however, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to customers, as specified.
Requires a towing or storage facility to accept an insurer’s check as a form of payment.
Requires a storage facility to be open and accessible during normal business hours and outside of normal business hours, the facility must provide a telephone number that permits the caller to leave a message and calls must be returned no later than six business hours after a message has been left.
Adds information to the towing and storage fees and access notice related to vehicle inspections and releases by insurance carriers. Defines, for purposes of this bill, “insurer” to mean either a first-party insurer or third-party insurer.
Authorizes a tow hauler to pay for towing and storage fees, as specified.

Background

In 2010, AB 519 (Solorio, Chapter 566, Statutes of 2010) required tow companies to provide consumers with a Towing Fees and Access Notice, an itemized invoice of all towing and storage fees, and specify who is authorized to retrieve or inspect a towed vehicle. In addition, that bill specified liability protections for storage facilities for vehicles releases under certain circumstances. AB 519 did not address the issue of fees as this bill does. This bill mandates that all towing and storage fees charged to a legal owner of a vehicle be reasonable, and further specifies what reasonable fees are. This bill applies to any facility that charges for the storage of a vehicle, except a new motor vehicle dealer.

Under existing law, any insurer that is responsible for the coverage of ordinary and reasonable towing and storage fees, under an automobile insurance policy, is liable for charges when a vehicle is towed and stored as a result of an accident or stolen recovery. This bill amends existing law to specify that all towing and storage fees charges resulting from an accident or the recovery of a stolen vehicle be “reasonable” and further defines what “reasonable” is. Fees that are no higher than those that are charged to the CHP or local law enforcement agencies, will be deemed reasonable along with fees that are comparable to other storage-related fees charged by other facilities in the same locale. As currently drafted, this bill specifies that certain fees are not considered “reasonable” including: administrative or filing fees; security fees’ dolly fees; load and unload fees; pull-out fees; and gate fees. This bill requires the acceptance of an insurer’s check in addition to the current requirements to accept cash and a credit card.

This bill also enhances consumer access requirements when a vehicle is towed and stored. This bill clarifies that an individual has the right to inspect their vehicle without paying a fee, have his or her insurer inspect the vehicle in 45 minute increments at no charge during normal business hours, and requires that a tow and storage facility be open and accessible during normal business hours and return calls within a six-business hour window. This bill revises the current towing and fee access notice to include information about the insurer’s inspection authority and provide notice that the fees must be reasonable, among other consumer information.

The author and sponsors of this bill have noted examples of consumers being charged perceivably high fees when retrieving a vehicle from a towing and storage facility. A March 16, 2018 KCRA news report (http://www.kcra.com/article/chp-illegal-tow-truck-scam-impacted-250-people-possibly-more/19466040), reported that “Owners and employers at one of Sacramento’s largest tow truck companies have been arrested and are accused of illegally towing cars to collect impound fees….The company collected $100,000 in impound fees from people whose vehicles never should have been towed in the first place.” In a July 15, 2015 LA Times news article, (http://www.latimes.com/local/california/la-me -0721-fire-tow-20150721-story.html), “Cajon Pass Fire: I Didn’t do anything Illegal”, it was reported that during the Cajon Pass fire, upon law enforcement orders, a women left her vehicle on the freeway, and was charged a $1,600 towing fee. This bill attempts to address purported high costs of tow and storage services by requiring that tow and storage facilities only charge “reasonable” fees.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/8/18)

American Insurance Association (source)

American Civil Liberties Union of California

California Tow Truck Association

National Association of Mutual Insurance Companies

National Insurance Crime Bureau

Pacific Association of Domestic Insurance Companies

Personal Insurance Federation of California

Property Casualty Insurers Association of America

State Farm Mutual Automobile Insurance Company

United Ways of California

OPPOSITION: (Verified 8/8/18)

None received

ARGUMENTS IN SUPPORT: Supporters state that “this bill would strengthen existing towing and storage laws by clearly allowing payment by credit card and check, providing benchmarks for storage fees to automatically be presumed reasonable, requiring reasonable time for inspection of the vehicle, requiring responses to inquiries regarding the vehicle, and allowing insurers to pay directly for towing and/or storage fees. For those who don’t have insurers to help resolve these issues, they are often left with little recourse except to pay.”

According to State Farm Mutual Automobile Insurance Company, “Towing and storage fees are becoming an increasingly large percentage of the payouts in automobile crashes, contributing to higher insurance premiums. And while a majority of towing companies are behaving in a fair and responsible manner, some are employing tactics that unnecessarily drive up costs, such as holding cars longer than necessary for high fees, or charging extra and unnecessary fees for towing cars from accidents. These delaying tactics do nothing other than drive up the price for consumers.”

The California Tow Truck Association writes in support, “AB 2392 attempts to raise the standards of professionalism in the industry by making a number of changes to existing law to ensure that bad actors are not price-gouging and that consumers and their agents have adequate access to and information about vehicles being stored by a tow company.”

ASSEMBLY FLOOR: 74-1, 5/29/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon

NOES: Waldron

NO VOTE RECORDED: Travis Allen, Kiley, Voepel

Prepared by: 916-651-4104

8/8/18 15:52:36

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2017 - 2018 Regular

Bill No: AB 2392 Hearing Date: June 18, 2018

Author:	Santiago
Version:
Urgency:		Fiscal:
Consultant:

Subject: Vehicles: towing and storage

SUMMARY:

Requires all towing and storage fees to be reasonable and enhances consumer protections for towing and storage customers, as specified.

Existing law:

Prohibits a fee or service charge for parking and storage on a vehicle after the first 15 days, and three days after notice has been sent by the person in possession to the legal owner by certified mail, when the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records from DMV, unless the vehicle is stored under the authority of the judicial process. (Vehicle Code (VC) § 16052.5(a))
Allows the costs of notifying the legal owner to be charged as part of the storage fee if the notice is given no sooner than the third day of possession, unless the vehicle is stored under the authority of the judicial process. (Vehicle Code (VC) § 16052.5(b))
Provides that an owner of a motor vehicle can bring suit against any charges after fifteen days. The prevailing party is entitled to reasonable attorney’s fees, not to exceed $1,750, in addition to any other right, remedy or cause of action, unless the vehicle is stored under the authority of the judicial process. (Vehicle Code (VC) § 16052.5(c))
Requires any insurer that is responsible for coverage for ordinary and responsible towing and storage charges under an automobile insurance policy, to be liable for those charges to the person performing those services when the vehicle is towed and stored as the result of an accident or stolen recovery. (VC § 22524.5)
Requires a person including a law enforcement agency, city or county, the state, a tow yard, storage facility, or an impounding yard that charges for tow towing or storage, except for storage unrelated to a tow, to do all of the following:
1. Post in the office area of the storage facility, the towing fees, as specified;
2. Upon request, provide a copy of the towing fees, as specified;
3. Provide a notice on an invoice for any towing or storage fees, related to the towing and storage access fees notice, as specified. (VC § 22651.07(a))
Authorizes a vehicle owner, his or her agent or a licensed repossessor prior to paying for any towing, recovery, or storage related fees to do the following:
1. Receive his or her personal property at no charge, during normal business hours (8 a.m. through 5 p.m.) Monday-Friday;
2. Retrieve his or her vehicle during the first 72 hours and not pay a lien fee;
3. Request a copy of the towing fees and access notice; and,
4. Be permitted to pay cash or a valid bank card, as specified. (VC § 22651.07)
Specifies the font size and the information that is to be included in the Towing Fees and Access Notice document including but not limited to how much a company can charge, where a consumer can complain about a company and a consumer’s rights if their vehicle is towed, among others. (VC § 22651.07(d))

This bill:

Requires all storage and towing fees charged to a legal owner of a motor vehicle to be reasonable, as specified.
Requires all towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle to be reasonable.
Deems a towing and storage charge to be reasonable if it does not exceed those rates and fees charged for similar services provided in response to requests initiated by a public agency, including but not limited to, the Department of the California Highway Patrol or local police department.
Deems a storage rate and fee to be reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale, but does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.
Specifies that unless authorized by a governmental entity, the following rates and fees are presumptively unreasonable:
1. Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
2. Security fees;
3. Dolly fees;
4. Loan and unload fees;
5. Pull-out fees; and,
6. Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Removes the exemption for storage unrelated to a tow to provide and make available information related to the Towing Fees and Access Notice.
Authorizes a vehicle owner, his or her agent, or a repossessor prior to paying any towing, recovery, or storage related fees to inspect the vehicle without paying a fee or have an insurer inspect the vehicle at the storage facility at no charge during normal business hours; however, the storage facility may limit the inspection to increments of 45 consecutive minutes in order to provide service to customers, as specified.
Requires a towing or storage facility to accept an insurer’s check as a form of payment.
Requires a storage facility to be open and accessible during normal business hours and outside of normal business hours, the facility must provide a telephone number that permits the caller to leave a message and calls must be returned no later than six business hours after a message has been left.
Adds information to the towing and storage fees and access notice related to vehicle inspections and releases by insurance carriers.
Defines, for purposes of this bill, “insurer” to mean either a first-party insurer or third-party insurer.
Authorizes a tow hauler to pay for towing and storage fees, as specified.
Authorizes an insurer and the legal or registered owner of a vehicle to report violations of the above provisions.
Makes other technical and clarifying changes.

FISCAL EFFECT:

Unknown. This bill is keyed “fiscal” by the Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated May 2, 2018, this bill will result in negligible fiscal impact.

COMMENTS:

Purpose. This bill is sponsored by the American Insurance Association. According to the Author, “this bill helps ensure that California’s law protects the safety and welfare of both the vehicle owner and the public from towing mistakes, which may lead to dangerous confrontations, to the owner and his or her family being stranded at a dangerous time and location, to false or unwarranted reports, which waste law enforcement's limited resources, to unnecessary hazardous tows and to similarly unsafe circumstances. There are subset of businesses, engaged in towing and/or involving storage that are not abiding by existing law, exploiting ambiguities or poor wording in existing law and charging exorbitant prices while holding vehicles hostage in order to simply drive up bills for storing a vehicle. According to Property Casualty Insurers Association, American car-insurance rates are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. For those who don’t have insurers to help resolve these issues, they are often left with little recourse except to pay.”
Background.

Towing and Storage. Towing and storing a vehicle can occur from a

multitude of different incidents including accidents, arrests, and traffic violations. In 2010, AB 519 (Solorio, Chapter 566, Statutes of 2010) was signed into law which provided greater consumer awareness with respect to the information consumers are provided in the event their car is towed and stored at a facility. Specifically,
AB 519 established the requirement that tow companies provide consumers with a Towing Fees and Access Notice, an itemized invoice of all towing and storage fees, and specify who is authorized to retrieve or inspect a towed vehicle. In addition, the bill specified liability protections for storage facilities for vehicles releases under certain circumstances. AB 519 did not address the issue of fees as this bill does. This bill would mandate that all towing and storage fees charged to a legal owner of a vehicle be reasonable, and further specifies what reasonable fees are. As specified, this bill would apply to any facility that charges for the storage of a vehicle, except a new motor vehicle dealer.

Insurers. Under existing law, any insurer that is responsible for the coverage of ordinary and reasonable towing and storage fees, under an automobile insurance policy, is liable for charges when a vehicle is towed and stored as a result of an accident or stolen recovery. This bill would amend existing law to specify that all towing and storage fees charged in the event of a tow and storage which resulted from an accident or the recovery of a stolen vehicle be “reasonable” and further defines what “reasonable” is. Fees that are no higher than those that are charged to the CHP or local law enforcement agencies, will be deemed reasonable along with fees that are comparable to other storage-related fees charged by other facilities in the same locale. As currently drafted, this bill specifies that certain fees are not considered “reasonable” (unless authorized by a governmental entity) including: administrative or filing fees; security fees’ dolly fees; load and unload fees; pull-out fees; and specified gate fees. Additionally, this bill would ensure that towing and storage facilities accept an insurer’s check as a form of payment in addition to the current requirements to accept cash and a credit card.

In 2015, the Property Casualty Insurers Association of America (PCI) released a Towing Survey Analysis. In its analysis, it was concluded based on the survey findings of PCI member companies that unreasonable fees, including towing and storage fees, were identified as the biggest problems dealing with towing companies during the claims process. Although no city in California was identified as being the most problematic for towing issues, California was identified as one of the top states in need of pro-consumer towing reforms.

In addition to establishing the criteria for “reasonable” fees, this bill also enhances consumer access requirements when a vehicle is towed and stored. This bill will clarify that an individual has the right to inspect their vehicle without paying a fee, have his or her insurer inspect the vehicle in 45 minute increments at no charge during normal business hours, and requires that a tow and storage facility be open and accessible during normal business hours and return calls within a six-business hour window.

This bill will revise the current towing and fee access notice that is required to be provided to consumers. The revised notice will include information about the insurer’s inspection authority; provide notice that fees must be reasonable, among other consumer information.

Consumer Issues. The Author and sponsors of this bill have noted examples of consumers being charged perceivably high fees when retrieving a vehicle from a towing and storage facility. A March 16, 2018 KCRA news report (http://www.kcra.com/article/chp-illegal-tow-truck-scam-impacted-250-people-possibly-more/19466040), reported that “Owners and employers at one of Sacramento’s largest tow truck companies have been arrested and are accused of illegally towing cars to collect impound fees….The company collected $100,000 in impound fees from people whose vehicles never should have been towed in the first place.” In a July 15, 2015 LA Times news article, (http://www.latimes.com/local/california/la-me -0721-fire-tow-20150721-story.html), “Cajon Pass Fire: I Didn’t do anything Illegal”, it was reported that during the Cajon Pass fire, upon law enforcement orders, a women left her vehicle on the freeway, and was charged a $1,600 towing fee. A recent news story (KGTV) in San Diego highlighted this issue in a news report “Man enlists help of the CHP in dispute with towing company”. In that news report, in which a person was charged $515 for storage of his car which was impounded for failure to pay his registration. He was charged $390 for tow, $75 gate fee and a $50 storage fee. However, it was reported that the CHP had a contract with the tow company not to exceed $195 for the tow.” This bill attempts to address purported high costs of tow and storage services by requiring that tow and storage facilities only charge “reasonable” fees.

Arguments in Support. The American Insurance Association, Pacific Association of Domestic Insurance Companies, National Association of Mutual Insurance Companies, Personal Insurance Federation of California, and Property Casualty Insurers Association of America write in support, “AB 2392 would strengthen existing towing and storage laws by clearly allowing payment by credit card and check, providing benchmarks for storage fees to automatically be presumed reasonable, requiring reasonable time for inspection of the vehicle, requiring responses to inquiries regarding the vehicle, and allowing insurers to pay directly for towing and/or storage fees. For those who don’t have insurers to help resolve these issues, they are often left with little recourse except to pay.”

State Farm Mutual Automobile Insurance Company writes in support, “Towing and storage fees are becoming an increasingly large percentage of the payouts in automobile crashes, contributing to higher insurance premiums. And while a majority of towing companies are behaving in a fair and responsible manner, some are employing tactics that unnecessarily drive up costs, such as holding cars longer than necessary for high fees, or charging extra and unnecessary fees for towing cars from accidents. These delaying tactics do nothing other than drive up the price for consumers.”

The American Civil Liberties Union of California writes in support and notes that this bill “closes loopholes in California’s towing and vehicle storage law to reduce abusive practices aimed at inflating towing storage fees.”

United Ways of California writes in support, “AB 2392 would follow the good work of AB 519 and would allow payment by credit card and check, would require fees to be reasonable, would require responses to inquiries regarding the vehicle and would allow insurers to pay directly for towing and/or storage fees.”

The California Tow Truck Association writes in support, “AB 2392 attempts to raise the standards of professionalism in the industry by making a number of changes to existing law to ensure that bad actors are not price-gouging and that consumers and their agents have adequate access to and information about vehicles being stored by a tow company.”

Related Legislation This Session. AB 2656 (Chen) requires towing and storage facilities to accept a debit card from licensed repossessors, as specified. Status: This bill is currently pending the Senate Committee on Business, Professions and Economic Development Committee.
Prior Related Legislation. AB 519 (Solorio, Chapter 566, Statutes of 2010), required towing companies to provide consumers with a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees, as specified, and also specified who is authorized to retrieve or inspect a towed vehicle and relives the towing company of responsibility for determining the authenticity of documents provided to demonstrate a person’s authority..
Recommended Technical Amendment.

On page 9, line 28, before “check” insert “insurers”

NOTE:

Double-referral to Senate Committee on Judiciary.

SUPPORT AND OPPOSITION:

Support:

American Insurance Association (sponsor)

California Tow Truck Association (sponsor)

American Civil Liberties Union of California

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

Personal Insurance Federation of California

Property Casualty Insurers Association of America

State Farm

United Ways of California

Opposition:

None on file as of June 13, 2018.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2392

Author:(Santiago)

As Amended Ver:May 25, 2018

Majority vote

Committee	Votes	Ayes	Noes
Transportation	13-0	Frazier, Fong, Aguiar-Curry, Baker, Berman, Chu, Daly, Friedman, Harper, Mathis, Medina, Nazarian, O'Donnell
Appropriations	17-0	Gonzalez Fletcher, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Nazarian, Obernolte, Quirk, Reyes

SUMMARY: Provides additional consumer protections for towing and storage customers, including specifying what fees are considered reasonable or unreasonable. Specifically, this bill:

Requires all towing and storage fees charged to a legal owner of a motor vehicle to be reasonable.
Considers the following fees reasonable:
1. All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle;
The fees do not exceed the rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol (CHP) or local police departments; and,
The fees are comparable to storage-related rates charged by other facilities in the same locale.
The following rates are considered unreasonable, unless authorized by a governmental entity:
1. Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
2. Security fees, dolly fees, load and unload fees, pull-out fees; and,
3. Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Provides that an insurer must be allowed to inspect a vehicle, free of charge, in 45 minute increments during normal business hours.
Provides that an insurer can pay the storage and towing fees with an insurer's check.
Requires a storage facility, as defined, to be open and accessible during normal business hours. Outside of normal business hours the facility must provide a telephone number that permits the caller to leave a message. Calls to this number must be returned no later than six business hours after the message has been left.
Updates the Towing and Storage Fees and Access Notice to include the legal changes reflected in this bill.
Specifies that the provisions in this bill do not apply to a new motor vehicle dealer.

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal impact.

COMMENTS:

The Cost of Fees: According to the Property Casualty Insurer's Association, car insurance rates in the United States are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. The California Legislature has taken several steps to reduce a number of anti-consumer behaviors by some towing and storage companies, including the passage of AB 519 (Solorio), Chapter 566, Statutes of 2010, which required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

In order to protect against unreasonable fees, this bill seeks to clarify what fees are considered reasonable and what fees are not. Fees that are no higher than those charged to the CHP or local law enforcement agencies will automatically be considered reasonable. However tack-on fees, security fees, dolly fees, load and unload fees, pull-out fees, and certain gate fees are defined as unreasonable.

Delaying the Inevitable: Insurance companies are claiming some storage and towing services are using delaying tactics as a means of keeping a vehicle longer for higher charges. For example, towing companies are refusing to take insurance checks, are not accessible during normal business hours, or are not returning phone calls from insurance companies.

In the past, the Legislature has required storage and towing facilities to be open during a defined period of time and are required to accept credit cards or cash. This bill will also require these facilities to accept an insurance check as a form of payment. In addition, this bill requires these facilities to have a phone that has voicemail, and requires them to return a phone call from an insurance agent within six business hours.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0003012

ASSEMBLY THIRD READING

ATR Bill Id:AB 2392

Author:(Santiago)

As Amended Ver:April 16, 2018

Majority vote

Committee	Votes	Ayes	Noes
Transportation	13-0	Frazier, Fong, Aguiar-Curry, Baker, Berman, Chu, Daly, Friedman, Harper, Mathis, Medina, Nazarian, O'Donnell
Appropriations	17-0	Gonzalez Fletcher, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Nazarian, Obernolte, Quirk, Reyes

SUMMARY: Provides additional consumer protections for towing and storage customers, including specifying what fees are considered reasonable or unreasonable. Specifically, this bill:

Requires all towing and storage fees charged to a legal owner of a motor vehicle to be reasonable.
Considers the following fees reasonable:
1. All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle;
The fees do not exceed the rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol (CHP) or local police departments; and,
The fees are comparable to storage-related rates charged by other facilities in the same locale.
The following rates are considered unreasonable:
1. Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
2. Security fees;
3. Dolly fees;
4. Load and unload fees;
5. Pull-out fees; and,
6. Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Provides that an insurer must be allowed to inspect a vehicle for an unspecified amount of time without paying a fee.
Provides that an insurer can pay the storage and towing fees with an insurer's check.
Requires a storage facility, as defined, to be open and accessible during normal business hours. Outside of normal business hours the facility must provide a telephone number that permits the caller to leave a message. Calls to this number must be returned no later than six business hours after the message has been left.
Updates the Towing and Storage Fees and Access Notice to include the legal changes reflected in this bill.
Defines insurer to mean either a first-party or third-party insurer.
Specifies that the provisions in this bill do not apply to a new motor vehicle dealer.

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal impact.

COMMENTS:

The Cost of Fees: According to the Property Casualty Insurer's Association, car insurance rates in the United States are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. The California Legislature has taken several steps to reduce a number of anti-consumer behaviors by some towing and storage companies, including the passage of AB 519 (Solorio), Chapter 566, Statutes of 2010, which required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

In order to protect against unreasonable fees, this bill seeks to clarify what fees are considered reasonable and what fees are not. Fees that are no higher than those charged to the CHP or local law enforcement agencies will automatically be considered reasonable. However tack-on fees, security fees, dolly fees, load and unload fees, pull-out fees, and certain gate fees are defined as unreasonable.

Delaying the Inevitable: Insurance companies are claiming some storage and towing services are using delaying tactics as a means of keeping a vehicle longer for higher charges. For example, towing companies are refusing to take insurance checks, are not accessible during normal business hours, or are not returning phone calls from insurance companies.

In the past, the Legislature has required storage and towing facilities to be open during a defined period of time and are required to accept credit cards or cash. This bill will also require these facilities to accept an insurance check as a form of payment. In addition, this bill requires these facilities to have a phone that has voicemail, and requires them to return a phone call from an insurance agent within six business hours.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0002782

ASSEMBLY THIRD READING

ATR Bill Id:AB 2392

Author:(Santiago)

As Amended Ver:April 16, 2018

Majority vote

Committee	Votes	Ayes	Noes
Transportation	13-0	Frazier, Fong, Aguiar-Curry, Baker, Berman, Chu, Daly, Friedman, Harper, Mathis, Medina, Nazarian, O'Donnell
Appropriations	17-0	Gonzalez Fletcher, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Eggman, Fong, Friedman, Gallagher, Eduardo Garcia, Nazarian, Obernolte, Quirk, Reyes

SUMMARY: Provides additional consumer protections for towing and storage customers, including specifying what fees are considered reasonable or unreasonable. Specifically, this bill:

Requires all towing and storage fees charged to a legal owner of a motor vehicle to be reasonable.
Considers the following fees reasonable:
1. All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle;
The fees do not exceed the rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol (CHP) or local police departments; and,
The fees are comparable to storage-related rates charged by other facilities in the same locale.
The following rates are considered unreasonable:
1. Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
2. Security fees;
3. Dolly fees;
4. Load and unload fees;
5. Pull-out fees; and,
6. Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Provides that an insurer must be allowed to inspect a vehicle for an unspecified amount of time without paying a fee.
Provides that an insurer can pay the storage and towing fees with an insurer's check.
Requires a storage facility, as defined, to be open and accessible during normal business hours. Outside of normal business hours the facility must provide a telephone number that permits the caller to leave a message. Calls to this number must be returned no later than six business hours after the message has been left.
Updates the Towing and Storage Fees and Access Notice to include the legal changes reflected in this bill.
Defines insurer to mean either a first-party or third-party insurer.
Specifies that the provisions in this bill do not apply to a new motor vehicle dealer.

FISCAL EFFECT: According to the Assembly Appropriations Committee, negligible fiscal impact.

COMMENTS:

The Cost of Fees: According to the Property Casualty Insurer's Association, car insurance rates in the United States are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. The California Legislature has taken several steps to reduce a number of anti-consumer behaviors by some towing and storage companies, including the passage of AB 519 (Solorio), Chapter 566, Statutes of 2010, which required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

In order to protect against unreasonable fees, this bill seeks to clarify what fees are considered reasonable and what fees are not. Fees that are no higher than those charged to the CHP or local law enforcement agencies will automatically be considered reasonable. However tack-on fees, security fees, dolly fees, load and unload fees, pull-out fees, and certain gate fees are defined as unreasonable.

Delaying the Inevitable: Insurance companies are claiming some storage and towing services are using delaying tactics as a means of keeping a vehicle longer for higher charges. For example, towing companies are refusing to take insurance checks, are not accessible during normal business hours, or are not returning phone calls from insurance companies.

In the past, the Legislature has required storage and towing facilities to be open during a defined period of time and are required to accept credit cards or cash. This bill will also require these facilities to accept an insurance check as a form of payment. In addition, this bill requires these facilities to have a phone that has voicemail, and requires them to return a phone call from an insurance agent within six business hours.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0002782

Date of Hearing: April 23, 2018

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2392 (

Author:Santiago) – As Amended Ver:April 16, 2018

SUBJECT: Vehicles: towing and storage

SUMMARY: Provides additional consumer protections for towing and storage customers, including specifying what fees are considered reasonable or unreasonable. Specifically, this bill:

Requires all towing and storage fees charged to a legal owner of a motor vehicle to be reasonable.
Considers the following fees reasonable:
All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle;
The fees do not exceed the rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol (CHP) or local police departments; and,
The fees are comparable to storage-related rates charged by other facilities in the same locale.
The following rates are considered unreasonable:
Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles (DMV) and those related to the lien sale of a vehicle;
Security fees;
Dolly fees;
Load and unload fees;
Pull-out fees; and,
Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of regular business hours.
Provides that an insurer must be allowed to inspect a vehicle for an unspecified amount of time without paying a fee.
Provides that an insurer can pay the storage and towing fees with an insurer’s check.
Requires a storage facility, as defined, to be open and accessible during normal business hours. Outside of normal business hours the facility must provide a telephone number that permits the caller to leave a message. Calls to this number must be returned no later than six business hours after the message has been left.
Updates the Towing and Storage Fees and Access Notice to include the legal changes reflected in this bill.
Defines insurer to mean either a first-party or third-party insurer.
Specifies that the provisions in this bill do not apply to a new motor vehicle dealer.

EXISTING LAW:

Prohibits a fee or service charge for parking and storage on a vehicle after the first 15 days, and three days after notice has been sent by the person in possession to the legal owner by certified mail, when the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records from DMV, unless the vehicle is stored under the authority of the judicial process.
Allows the costs of notifying the legal owner to be charged as part of the storage fee if the notice is given no sooner than the third day of possession, unless the vehicle is stored under the authority of the judicial process.
Provides that an owner of a motor vehicle can bring suit against any charges after fifteen days. The prevailing party is entitled to reasonable attorney’s fees, not to exceed $1,750, in addition to any other right, remedy or cause of action, unless the vehicle is stored under the authority of the judicial process.
Requires an insurer that is responsible for the coverage of ordinary and reasonable towing and storage charges to be liable for those charges when a vehicle is towed and stored as a result of an accident or stolen recovery.
Requires a law enforcement agency, city, county, city and county, the state, a tow yard, storage facility, or an impounding yard, that charges for towing or storage, except for storage unrelated to a tow, to do all of the following:
Except for an automotive repair dealer, post in the office area of the storage facility the Towing Fees and Access Notice, and have copies readily available to the public.
Notify the public on any itemized invoice about the Towing Fees and Access Notice.
Requires an itemized invoice to be provided for the actual charges to the vehicle owner or his or her agent.
Requires a vehicle owner or his or her agent or a licensed repossessor to have the right to the following:
Receive his or her personal property, at no charge, during normal business hours -
8:00 a.m. to 5:00 p.m., Monday through Friday, except state holidays;
Retrieve his or her vehicle during the first 72 hours of storage and not pay a lien fee; and,
Be permitted to pay by cash or valid bank credit card. An insurer or insurer’s agent is also permitted to pay by bank draft.
Specifies what language is in the Towing Fees and Access Notice.

FISCAL EFFECT: Unknown

COMMENTS:

Author’s Statement: According to the author, “AB 2392 would make a number of clarifications and changes to close loopholes in California’s towing and vehicle storage law to reduce abusive practices aimed at inflating storage fees. Many of the changes are modeled on CHP’s practices to enhance California’s law which was designed to protect California consumers.”

The Cost of Fees: According to the Property Casualty Insurer’s Association, car insurance rates in the U.S. are inflated by as much as $616 million a year because of unnecessary fees charged for towing cars from accidents. The California Legislature has taken several steps to reduce a number of anti-consumer behaviors by some towing and storage companies, including the passage of AB 519 (Solorio), Chapter 566, Statutes of 2010, which required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

Supporters of this bill provided multiple invoices where insurance companies were charged hundreds of dollars of additional fees, including a fee as high as $150 to open a gate and a $280 fee for an “extra person” that was later removed.

In order to protect against unreasonable fees, this bill seeks to clarify what fees are considered reasonable and what fees are not. Fees that are no higher than those charged to the CHP or local law enforcement agencies will automatically be considered reasonable. However tack-on fees, security fees, dolly fees, load and unload fees, pull-out fees, and certain gate fees are defined as unreasonable.

Delaying the Inevitable: Insurance companies are claiming some storage and towing services are using delaying tactics as a means of keeping a vehicle longer for higher charges. For example, towing companies are refusing to take insurance checks, are not accessible during normal business hours, or are not returning phone calls from insurance companies.

In the past, the Legislature has required storage and towing facilities to be open during a defined period of time and are required to accept credit cards or cash. This bill will also require these facilities to accept an insurance check as a form of payment. In addition, this bill requires these facilities to have a phone that has voicemail, and requires them to return a phone call from an insurance agent within six business hours.

Open to Debate: It is the understanding of this committee that this bill is under negotiation between the insurance industry and the towing industry. The main issue still up for discussion is a requirement that towing and storage facilities allow an insurance agent to have access to a vehicle in storage for an unspecified amount of time. Both sides are negotiating how long that time should be.

Related Legislation: AB 2656 (Chen) requires towing and storage facilities to accept a debit card from licensed repossessors. AB 2656 is set to be heard by this committee on April 23, 2018.

Prior Legislation: AB 519 (Solorio), Chapter 566, Statutes of 2010, required towing companies to provide consumers a Towing Fees and Access Notice and an itemized invoice of all towing and storage fees.

AB 515 (Hagman), Chapter 322, Statutes of 2009¸ made numerous changes to the Collateral Recovery Act, including requiring impound agencies to accept a valid bank credit card or cash.

REGISTERED SUPPORT / OPPOSITION:

Support

American Civil Liberties Union of California

American Insurance Association

National Association of Mutual Insurance Companies

Pacific Association of Domestic Insurance Companies

Personal Insurance Federation of California

Property Casualty Insurers

United Ways of California

Western Center on Law and Poverty

Opposition

California State Sherriff’s Association

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093

Discussed in Hearing

Assembly Floor

Assembly Floor

Senate Floor

Senate Floor

Senate Standing Committee on Business, Professions and Economic Development

Senate Standing Committee on Business, Professions and Economic Development

Assembly Floor

Assembly Floor

Assembly Floor

Assembly Floor

Assembly Standing Committee on Appropriations

Assembly Standing Committee on Appropriations

Assembly Standing Committee on Transportation

Assembly Standing Committee on Transportation

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Chaptered (9/17/2018)