Official Summary Text
SB 1112, as amended, Archuleta.
Vehicles: towing companies and storage facilities.
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 to post
a bond or other adequate security with the clerk of the court in the county where the vehicle is stored before the sale of the vehicle by a towing company, impound yard, or storage facility, as specified. The bill would require the court, upon the posting of the bond, to issue a certificate directing the towing company, impound yard, or storage facility to release the vehicle to the party who posted the bond. The bill would require the party that posted the bond to initiate judicial proceedings within 10 court days after the issuance of the certificate, alleging certain causes of action. The bill would prohibit an auto body shop, impound yard, or towing company from knowingly participating in, or profiting from, specified towing or storage practices. The bill would require the Bureau of Automotive Repair to, by January 1, 2028, develop and distribute a notice that states a vehicle owner’s rights pursuant to these provisions. The bill would require a towing company, impound yard, storage facility, or auto
body shop to post that notice where it is visible to consumers onsite. The bill would impose a civil fine against a towing company, impound yard, storage facility or auto body shop, not to exceed 4 times the amount charged to the vehicle owner, for a violation of these provisions. The bill would exempt certain towing companies, storage companies, or impound yards from these provisions when a vehicle was towed at the request of the Department of the California Highway Patrol, a local law enforcement agency, the Department of Transportation, or a local transportation department or agency, as specified.
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.