The California State Assembly has approved Bill 987, a bill that regulates the collection practices of the vehicle towing and storage industry. Sponsored by Assemblywoman LaShae Sharp-Collins, it aims to amend the state vehicle code to establish limits on the fees charged by operators, focusing on unforeseen situations, state holidays, or when the vehicle is recovered quickly.
This new towing fee law was initially intended to eliminate abusive charges, but the intervention of lobbyist Jack Molondanof for the California Autobody Association (CAA) caused changes in these towing and vehicle storage regulations. If the Governor of California signs this bill, a measure will take effect that protects consumer rights in this sector of the automotive industry.
Abusive practices
The automotive industry is not only limited to production and marketing, but also includes other sectors such as towing and vehicle storage. In the state of California, the practices carried out by this sector were considered abusive, which is why the California State Assembly has decided to take action.
Towing Rates Law, Bill 987
Sponsored by Assemblywoman Lashae Sharp-Collins, the California State Assembly approved on September 15, 2025, a bill that reviews the towing and vehicle storage industry’s collection practices in California. Through this Bill 987, it is intended to amend the state vehicle code in order to modify the fees that operators charge car owners, as the assembly considers some of the fees in the sector to be unreasonable.
First draft
To date, the fees in the vehicle towing and storage industry have been carrying out abusive charges, completely violating consumer rights. Initially, the new bill aimed to eliminate any storage fees charged on state holidays that exceeded the company’s daily rate, and if the vehicle was picked up within the first 12 hours of being towed, the fee could not exceed 50%. It intended to prohibit storage charges on days the company was closed, including holidays. Additionally, it rejected charges applied by companies during natural disasters or when a vehicle is stolen and recovered within a week.
Project changes
Rigidity in the proposals of the California State Assembly led to intervention and pressure from industry interest groups. This is how the lobbyist for the California Autobody Association (CAA), Jack Molondanof, came into the scene. “Towing companies and repair shops are regulated by different agencies, with different functions,” he stated.
Legislators VS. Automotive Associations
This situation prompted negotiations between the CCA and the legislative staff of Sharp-Collins, to which Molondanof responded positively, “The assembly members’ staff were very receptive to our concerns and indicated that their intention was to address towing issues, not attack the auto repair industry,” Molondanof noted.
Negotiations and Final Bill
If it weren’t for the participation of the CCA, these negotiations probably would not have taken place, or at least not in a negotiative and participatory tone.After arguing that the original bill merged two distinct business models, the negotiation focused on developing a project that would be more specific and concentrate on the abusive towing practices that had a direct impact on consumers.
The text of the new project avoids generalizations, and although its main mission is to limit fees, a targeted and collaborative regulatory approach has been achieved. It only remains for Gavin Newsom, the Governor of California, to sign the bill so that it can take effect, thus becoming the first law to regulate vehicle storage and towing fees in the state of California.
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