AB 987: Vehicles: storage and towing.

10652.5.

(a) Whenever the name and address of the legal owner of a motor vehicle is known, or may be ascertained from the registration records in the vehicle or from the records of the Department of Motor Vehicles, no fee or service charge may be imposed upon the legal owner for the parking and storage of the motor vehicle except as follows: (1) The first 15 days of possession and (2) following that 15-day period, the period commencing 3 days after written notice is sent by the person in possession to the legal owner by certified mail, return receipt requested, and continuing for a period not to exceed any applicable time limit set forth in Section 3068 or 3068.1 of the Civil Code.

(b) The costs of notifying the legal owner may be charged as part of the storage fee when the motor vehicle has been stored for an indefinite period of time and notice is given no sooner than the third day of possession. This subdivision also applies if the legal owner refuses to claim possession of the motor vehicle.

(c) In any action brought by, or on behalf of, a legal owner of a motor vehicle to which subdivision (a) applies, to recover a motor vehicle alleged to be withheld by the person in possession of the motor vehicle by demanding storage fees or charges for any number of days in excess of that permitted pursuant to subdivision (a), the prevailing party shall be entitled to reasonable attorney’s fees, not to exceed one thousand seven hundred fifty dollars ($1,750). The recovery of those fees is in addition to any other right, remedy, or cause of action of that party.

(d) All storage and towing fees charged to a legal owner of a motor vehicle shall be reasonable. The following rates and fees are presumptively unreasonable:

(1) Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(2) Security fees.

(3) Dolly fees.

(4) Load and unload fees.

(5) Pull-out fees.

(6) Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of normal business hours.

(7) When gate fees are reasonably assessed, any additional towing fees that exceed 10 percent of the normal towing rate due to the call originating after normal business hours.

(8) Any storage fees charged for state holidays that exceed the posted standard daily storage rate.

(9) (A) Towing fees when the owner or the operator of a tow truck is directed by a law enforcement officer to remove a vehicle to the nearest shoulder or to level ground adjacent to the roadway for the sole purpose of clearing a roadway to facilitate access by an emergency vehicle at the scene of a state emergency, as defined in Section 8625 of the Government Code, or a local emergency, as defined in Section 8630 of the Government Code.

(B) An owner or operator of a tow truck that removes a vehicle under the circumstances described in subparagraph (A) and acts in good faith shall not be subject to civil liability for any damage to personal property that results from the removal of the vehicle.

(C) The limitation of liability described in subparagraph (B) shall not apply to an act or omission by an owner or operator of a tow truck that constitutes gross negligence or willful or wanton misconduct.

(10) Following a request from the vehicle owner to release their vehicle, and upon payment of all fees then due, storage fees for any day that a storage facility fails to release the vehicle.

(11) Storage fees in excess of 50 percent of the daily storage rate when a vehicle is recovered within the first four hours of storage.

(e) This section is not applicable to any motor vehicle stored by a levying officer acting under the authority of judicial process.

(f) Nothing in subdivision (d) prohibits any fees authorized in a written agreement between a law enforcement agency and a towing or storage company, including, but not limited to, official police garages operating under the jurisdiction of a municipal police commission, if the tow was initiated by the law enforcement agency.

(g) For purposes of this section, “normal business hours” means Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except for state holidays.

22524.5.

(a) Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b) Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c) (1) All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

(2) (A) For purposes of this section, a towing and storage charge shall be deemed reasonable if it does not exceed those fees and rates charged for similar services provided in response to requests initiated by a public agency, including, but not limited to, the Department of the California Highway Patrol or local police department.

(B) A storage rate and fee shall also be deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale. This does not preclude a rate or fee that is higher or lower if it is otherwise reasonable.

(3) The following rates and fees are presumptively unreasonable:

(A) Administrative or filing fees, except those incurred related to documentation from the Department of Motor Vehicles and those related to the lien sale of a vehicle.

(B) Security fees.

(C) Dolly fees.

(D) Load and unload fees.

(E) Pull-out fees.

(F) Gate fees, except when the owner or insurer of the vehicle requests that the vehicle be released outside of normal business hours.

(G) When gate fees are reasonably assessed, any additional towing fees that exceed 10 percent of the normal towing rate due to the call originating after normal business hours.

(H) Any storage fees charged for state holidays that exceed the posted standard daily storage rate.

(I) (i) Towing fees when the owner or the operator of a tow truck is directed by a law enforcement officer to remove a vehicle to the nearest shoulder or to level ground adjacent to the roadway for the sole purpose of clearing a roadway to facilitate access by an emergency vehicle at the scene of a state emergency, as defined in Section 8625 of the Government Code, or a local emergency, as defined in Section 8630 of the Government Code.

(ii) An owner or operator of a tow truck that removes a vehicle under the circumstances described in clause (i) and acts in good faith shall not be subject to civil liability for any damage to personal property that results from the removal of the vehicle.

(iii) The limitation of liability described in clause (ii) shall not apply to an act or omission by an owner or operator of a tow truck that constitutes gross negligence or willful or wanton misconduct.

(J) Following a request from the vehicle owner to release their vehicle, and upon payment of all fees then due, storage fees for any day that a storage facility fails to release the vehicle.

(K) Storage fees in excess of 50 percent of the daily storage rate when a vehicle is recovered within the first four hours of storage.

(d) Notwithstanding this section, an insurer shall comply with all of its obligations under Section 2695.8 of Chapter 5 of Title 10 of the California Code of Regulations.

(e) Nothing in paragraph (3) of subdivision (c) prohibits any fees authorized in a written agreement between a law enforcement agency and a towing or storage company, including, but not limited to, official police garages operating under the jurisdiction of a municipal police commission, if the tow was initiated by the law enforcement agency.

(f) For purposes of this section, “normal business hours” means Monday through Friday from 8:00 a.m. to 5:00 p.m., inclusive, except for state holidays.