A California bill that would have kept collision repair shops from charging storage fees on days the businesses are not open has been amended to remove that language. 

Andrew Batenhorst, California Autobody Association (CAA) Glendale/Foothill Chapter president and Pacific BMW Collision Center body shop manager, said the amendment was changed following advocacy from CAA.

“The CAA executive committee, CAA lobbyist, Jack Molodanof, and many of the individual CAA chapter presidents all reviewed the proposed regulation and voiced many concerns about the draft,” Batenhorst said. “Jack then took this feedback and had a conversation with the bill writers, who then came back with an amended proposed regulation.

“The amended version greatly clarifies the intentions of the bill and helps exclude body shop owners across the state. This is exactly the kind of advocacy that greatly supports the collision repair industry, and I personally am grateful for the efforts of Jack and CAA.””

Assembly Member LaShae Sharp-Collins (D-79) introduced AB987 Feb. 20. It was referred to the Committee on Transportation March 28. It was amended April 22. 

The bill amends a section of the state’s vehicle code to define “unreasonable” storage rates and fees. It originally stated unreasonable storage fees include fees assessed on days the storage facility is not open, including holidays. 

An amended version now says unreasonable storage rates include “any storage fees charged for state holidays that exceed the posted daily storage fee.”

Removed from the bill is a section that said “storage fees assessed on days the storage facility is not open” are unreasonable. 

The bill also removed a section that made storage fees unacceptable for a vehicle towed during a natural disaster and fees incurred for a stolen vehicle recovered by the owner within a week of being stored. 

The bill is reworked to say fees in excess of 50% of the daily storage rate are unacceptable when a vehicle is recovered in the first 12 hours by the owner. 

Molodanof said he explained to Sharp-Collins legislative staff that the original bill conflated two distinct business models.

“Towing and storage businesses, regulated by the Department of Motor Vehicles, own and operate tow trucks with the primary focus on towing and storing vehicles and required to have a motor carrier permit,” Molodanof said. “In contrast, automotive repair facilities are regulated by the Bureau of Automotive Repair (BAR) and do not operate tow trucks. These repair facilities primarily focus on vehicle repairs, with storage as an ancillary service. The [original] bill fails to recognize these differences and inappropriately applies storage requirements across these two separate industries.”

Molondanof said the bill also failed to distinguish between non-consensual tows and consensual tows.

“The assembly members’ staff were very receptive to our issues and indicated that their intent was to address towing problems, not to target the auto repair industry,” Molondanof said. “They committed to working with us on amendments to address these concerns, which they have done. We are very appreciative and thankful for their cooperation in this regard.”

The bill also came 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 eight hours of his time away from his daily work duties to attend workshops. 

CAA has taken issue with some of BAR’s proposed regulations, including a cap on storage fees and losing days of storage revenue.

An Oklahoma House Committee approved a bill last week that will cap storage fees and restrict administrative charges for total loss vehicles. 

The bill, SB641, passed the Senate last month with a 32-8 vote after the original bill was gutted and amended on the House floor to include the storage language. 

Oklahoma Sen. Lonnie Paxton (R-23), an Oklahoma Farm Bureau insurance agent, introduced the bill Feb. 3. The original bill language passed by the Senate Business and Insurance Committee allowed insurance companies to provide incentives to consumers for the use of certain repair shops. 

This language was removed from the original bill and replaced with storage cap language similar to SB784 while on the Senate floor. The bill was never picked up for discussion in the Business and Insurance Committee.

IMAGE

Photo courtesy of DustyPixel/iStock