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AB-987 • 2026

Vehicles: storage and towing.

Vehicles: storage and towing.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sharp-Collins
Last action
2025-10-06
Official status
Chaptered by Secretary of State - Chapter 345, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the effective date of the bill, nor does it specify what happens if a car is stored beyond 15 days without written notice.

Vehicles: Storage and Towing Rules

This law updates rules for storage fees after towing vehicles and adds new types of fees that are considered unreasonable.

What This Bill Does

  • Expands the list of presumptively unreasonable fees to include storage fees charged on state holidays that exceed the standard daily rate and towing fees when a vehicle is removed at an emergency scene by law enforcement direction.

Who It Names or Affects

  • Car owners who have their vehicles towed and stored.
  • Towing companies that charge fees for storing and towing cars.
  • Insurance companies responsible for paying these charges.

Terms To Know

Presumptively unreasonable
Fees that are likely not fair or reasonable under the law.

Limits and Unknowns

  • The bill does not specify what happens if a car is stored for more than 15 days without written notice.
  • It's unclear how insurers will determine which fees are 'reasonable'.

Bill History

  1. 2025-10-06 California Legislative Information

    Chaptered by Secretary of State - Chapter 345, Statutes of 2025.

  2. 2025-10-06 California Legislative Information

    Approved by the Governor.

  3. 2025-09-15 California Legislative Information

    Enrolled and presented to the Governor at 4:30 p.m.

  4. 2025-09-08 California Legislative Information

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 3019.).

  5. 2025-09-03 California Legislative Information

    In Assembly. Concurrence in Senate amendments pending.

  6. 2025-09-03 California Legislative Information

    Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2439.).

  7. 2025-08-29 California Legislative Information

    Read second time. Ordered to third reading.

  8. 2025-08-28 California Legislative Information

    Read third time and amended. Ordered to second reading.

  9. 2025-08-25 California Legislative Information

    Ordered to third reading.

  10. 2025-08-25 California Legislative Information

    From Consent Calendar.

  11. 2025-08-20 California Legislative Information

    Read second time. Ordered to Consent Calendar.

  12. 2025-08-19 California Legislative Information

    From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

  13. 2025-07-09 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (July 8). Re-referred to Com. on APPR.

  14. 2025-07-02 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  15. 2025-06-25 California Legislative Information

    From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (June 24). Re-referred to Com. on JUD.

  16. 2025-06-11 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on TRANS.

  17. 2025-05-28 California Legislative Information

    Referred to Coms. on TRANS. and JUD.

  18. 2025-05-20 California Legislative Information

    In Senate. Read first time. To Com. on RLS. for assignment.

  19. 2025-05-19 California Legislative Information

    Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 1607.)

  20. 2025-05-15 California Legislative Information

    Read second time. Ordered to third reading.

  21. 2025-05-14 California Legislative Information

    From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

  22. 2025-04-29 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 28). Re-referred to Com. on APPR.

  23. 2025-04-29 California Legislative Information

    Coauthors revised.

  24. 2025-04-23 California Legislative Information

    Re-referred to Com. on TRANS.

  25. 2025-04-22 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.

  26. 2025-04-01 California Legislative Information

    Re-referred to Com. on TRANS.

  27. 2025-03-28 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.

  28. 2025-03-28 California Legislative Information

    Referred to Com. on TRANS.

  29. 2025-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  30. 2025-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 987, Sharp-Collins.
Vehicles: storage and towing.
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. Existing law requires that fees charged under these provisions for storage and towing be reasonable.
Existing law makes an insurer that is responsible for reasonable storage and towing charges liable to the person providing those services when a vehicle is towed and stored as a result of an accident or stolen recovery, as specified. Existing law requires that these storage and towing fees be reasonable and enumerates a list of fees that are presumptively unreasonable.
This bill would expand the list of
presumptively unreasonable fees for purposes of the provisions described above to include, among other things, storage fees charged for state holidays that exceed the posted standard daily storage rate and towing fees charged when the owner or the operator of a tow truck is directed by a law enforcement officer to remove a vehicle at the scene of a state or local emergency, as specified.

Current Bill Text

Read the full stored bill text 
Download Bill PDF