Vehicles: towing companies and storage facilities.

Plain English Breakdown

The official summary does not provide specific details about the bond amounts for individuals versus companies beyond $500 and $6,250 respectively.

Vehicles: Towing Companies and Storage Facilities

This law increases penalties for towing company and storage facility violations and sets rules for legal proceedings to challenge wrongful towing or excessive fees.

What This Bill Does

• Increases the civil penalty for towing or storage facility violations from up to two times the amount charged to up to three times, with a limit of $1,000 per vehicle.
• Allows registered or legal owners, lienholders, or insurers to take their case to small claims court if they think a car was taken wrongfully or has unreasonable fees.
• Sets rules for posting bonds in court to get vehicles released from towing companies or storage facilities.
• Prohibits auto body shops, impound yards, and towing companies from knowingly participating in unauthorized towing practices where cars are wrongfully taken or withheld.

Who It Names or Affects

• Car owners whose vehicles are towed or stored by towing companies or storage facilities.
• Towing companies, storage facilities, and auto body shops that deal with impounded or towed vehicles.

Terms To Know

Civil penalty

A fine paid to the government for breaking a law.

Bond

Money put up as security to get something back, like a vehicle from storage.

Limits and Unknowns

• The bill does not specify when it will become effective.
• Towing companies approved by the Department of the California Highway Patrol are exempt from some provisions.

Official Summary Text

SB 1112, as amended, Archuleta.
Vehicles: towing companies and storage facilities.
Existing law prescribes certain consumer protection requirements for facilities that store towed and impounded vehicles, including, among others, a requirement that those facilities be accessible during prescribed normal business hours, that they accept prescribed forms of payment, and that they not charge a fee for certain transactions. Existing law requires certain entities, including an impounding yard or storage facility that charges for towing or storage, to post a notice in the office area of the storage facility, as specified, and have copies readily available to the public, that describes the tow and storage rates pursuant to the above provisions. Existing law provides that a person who violates these provisions is civilly liable to the registered owner or legal owner of the vehicle, or a
registered owner’s insurer, for up to 2 times the amount charged and liability is limited to $500 per vehicle.
This bill would increase that civil penalty to up to 3 times the amount charged and limit liability to $1,000 per vehicle.
Existing law requires an authorized member of a public agency who directs the storage of a vehicle, as specified, to give notice to the legal owners within 48 hours and the opportunity for a poststorage hearing to determine the validity of the storage. Existing law requires an officer or employee, upon the removal of a vehicle from public or private property, to store the vehicle at the nearest garage or place of safety designated by the governmental agency. A violation of the Vehicle Code or a local ordinance adopted pursuant to that code is an infraction.
This bill would authorize the registered or legal owner, lienholder, or insurer of a vehicle that is in the possession of a towing company or storage facility to initiate judicial proceedings in the small claims court of the county that the vehicle is stored to determine whether the vehicle was wrongfully taken or withheld, as defined, or whether the storage charges include excessive or unreasonable fees, as defined. The bill would authorize the registered owner, legal owner, lienholder, or insurer to post a bond or adequate security with the clerk of the court in the county where the vehicle is stored. The bill would set a maximum bond of $6,250 if the owner of the vehicle is a company, and a maximum of $500 if the owner of the vehicle is an individual. The bill would authorize the court to issue a certificate directing the release of the vehicle from the towing company, impound yard, or storage facility, upon receipt of the bond. The bill would prohibit an auto body
shop, an impound yard, or a towing company from knowingly participating in, or profiting from, unauthorized towing practices where a vehicle is wrongfully taken or withheld. The bill would impose a civil fine not to exceed 4 times the amount charged to the vehicle owner for a violation of these provisions. The bill would exempt towing companies, storage companies, or impound yards, approved by the Department of the California Highway Patrol, from these provisions.

Current Bill Text

Download Bill PDF