California 2025-2026 Regular Session

California Assembly Bill AB987

Introduced
2/20/25  
Refer
3/28/25  
Report Pass
3/28/25  
Refer
4/1/25  
Report Pass
4/22/25  

Caption

Vehicles: storage and towing.

Impact

If passed, AB 987 would modify existing laws that limit the fees a towing company may charge within the first 15 days of vehicle storage, and thereafter only after proper notification to the vehicle's owner. By including additional fee stipulations in the bill, the legislation seeks to create more consumer protection and prevent exploitative pricing practices in the towing industry, particularly in contexts where accidents or emergencies are involved.

Summary

Assembly Bill 987, introduced by Assembly Member Sharp-Collins, aims to amend sections of the Vehicle Code related to the towing and storage of vehicles. The bill specifically seeks to expand the list of fees that are deemed presumptively unreasonable, including charges for storage during holiday hours and fees accrued on vehicles towed in emergency situations, where the owner or their insurer was not at fault. This is intended to protect consumers from excessive charges and makes provisions for ensuring reasonable fees across various circumstances, thereby promoting greater fairness in towing and storage practices.

Sentiment

The general sentiment surrounding AB 987 appears to be cautiously optimistic among consumer advocacy groups, who support measures that would curb what they perceive as unfair charging practices in the towing industry. However, some operators in the towing and storage sector may view the bill as an overreach that could potentially limit their revenue opportunities. The discussions center around the balance of consumer protection while ensuring that towing service providers can operate sustainably.

Contention

Notable points of contention regarding AB 987 include arguments surrounding how the definition of 'reasonable' fees is interpreted. Supporters believe that strict regulations will enhance fairness and transparency for vehicle owners, while opponents argue that such regulations could hamper the towing industry's ability to provide services efficiently and could result in reduced availability of towing options in emergency situations. The legislative process anticipates significant debate on these operational impacts as stakeholders weigh the benefits of enhanced consumer protection against the potential ramifications on service provision.

Companion Bills

No companion bills found.

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