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California bill would keep shops from charging storage fees on days the business is closed

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A California bill would keep collision repair shops from charging storage fees on days the business is not open, such as weekends or holidays. 

Assembly Member LaShae Sharp-Collins (D-79) introduced AB987 Feb. 20. It was referred to the Committee on Transportation March 28. 

The bill amends a section of the state’s vehicle code to define “unreasonable” storage rates and fees. 

It states unreasonable storage fees include fees assessed on days the storage facility is not open. 

“I’ve never head of this in the industry,” Andrew Batenhorst, California Autobody Association Glendale/Foothill Chapter president and Pacific BMW Collision Center body shop manager, said Monday. “This is absolutely ridiculous that this on the table now.”

Batenhorst said collision repair centers still must protect vehicles, secure parking lots,  pay rent and insurance regardless of if the business is open. 

The bill comes as a surprise because the California Bureau of Automotive Repair (BAR) is in the midst of finalizing regulations on storage and towing fees after a series of extensive public workshops on the subject. 

BAR has held four workshops on the proposed changes, with comment periods lasting three to four hours each. 

Batenhorst said he’s spent more than 8 hours of his time, away from his daily work duties,  attending workshops. 

California Auto Body Assocation (CAA) has taken issue with some of the proposed regulations by BAR. This includes putting a cap on storage fees and losing days of storage revenue.

The Oklahoma Senate passed a bill Thursday that will  also cap storage fees and restrict administrative charges for total loss vehicles. 

Oklahoma Sen. Lonnie Paxton (R-District 23), an insurance agent, introduced SB641 Feb. 3. It was passed by the Business and Insurance Committee March 6 and received a 32-8 vote on the Senate floor. 

The bill limits administrative charges related to total loss vehicles to four hours. It also sets the maximum daily storage rate an auto body repair shop can charge for a total loss vehicle.  

For the first 10 calendar days, the cap is set at $39 for all motor vehicles of any size, including marine vessels, and $78 for vehicles with a lithium-ion battery that sustained damage to the battery pack or has exhibited fire, smoke, or popping or hissing sounds. 

On the 11th calendar day, the maximum daily storage rate may increase to $75 for all vehicles and to $156 for lithium-ion battery vehicles. 

The Oklahoma Auto Body Assocation (OKABA) has opposed the legislation.

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