If passed, AB 987 will have a significant impact on how towing companies operate and charge fees in California. It seeks to not only limit the amount that can be charged but also clarifies the timeline and notification process which towing companies must follow before imposing additional storage fees. By expanding the definition of unreasonable fees, the bill aims to provide additional safeguards for vehicle owners, ensuring they are not taken advantage of through excessive charging practices. The bill is also designed to assist insurers by refining their liabilities concerning reasonable towing and storage charges when a vehicle is involved in accidents or stolen recovery situations.
Summary
AB 987, introduced by Assembly Member Sharp-Collins, aims to reform the existing provisions in the California Vehicle Code regarding the storage and towing of vehicles. The bill modifies the laws surrounding the fees that can be charged to vehicle owners when their vehicles are towed and stored. Currently, vehicle owners may only incur storage fees for the first 15 days after their vehicle has been towed, and any charges thereafter are contingent upon a notification period. AB 987 expands the criteria for what constitutes 'presumptively unreasonable fees,' effectively enhancing consumer protections by ensuring towing companies do not exploit vehicle owners during emergencies or holidays. This includes limitations on fees that can be charged on state holidays and during emergency towing situations directed by law enforcement officers.
Sentiment
The general sentiment surrounding AB 987 appears to be positive, especially among consumer advocacy groups who argue for fairness and transparency in the towing industry. Supporters of the bill argue that it provides necessary protections for vehicle owners and holds towing companies accountable for their practices. Conversely, opponents may suggest that the bill could limit the ability of towing companies to operate effectively and remain profitable, creating challenges, especially in emergency situations where swift action is essential.
Contention
Some points of contention regarding AB 987 center on the balance between consumer protections and the operational realities of towing companies. Critics express concern that imposing stricter regulations and fee limits can hinder towing companies' ability to manage costs effectively, particularly during emergencies. The definition of 'presumptively unreasonable fees' may provoke further debate among stakeholders in the towing industry, especially regarding what constitutes a reasonable fee versus an exploitative one in emergency circumstances. The ongoing dialogue will likely focus on finding a balance between protecting consumers and ensuring that towing services remain viable.