BAR proposes storage-fee rules for repair shops; insurers and body shops spar over averages, 3‑day window

The Bureau of Automotive Repair held a regulatory workshop to present draft rules for “storage fees charged by automotive repair dealers” and to collect feedback from collision repair shops, trade associations and insurers.

The proposal would require automotive repair dealers (ARDs) who charge storage fees after accidents or theft recoveries to report a maximum daily storage rate to BAR, post that rate at the place where customers are served, and permit consumer and third‑party access to stored vehicles. BAR staff also described plans for a search tool that would publish average and median daily storage rates by a defined “locale” based on reported maximums.

BAR said the rules are based on the authority granted in Assembly Bill 12 63 and existing statutes, and that the package is intended to bring Business and Professions, Civil and Vehicle Code provisions under a single regulatory structure. “The proposed regulations are drafted in accordance with the authority provided by Assembly Bill 12 63,” Matthew Gibson, program manager for BAR’s field operations and enforcement division, told the meeting.

Why it matters: the regulations would change how shops disclose and post storage charges, create data about local rates, clarify when shops may begin charging storage (including rules tied to tear‑down estimates), and expand BAR’s tools for resolving complaints. The proposal prompted strong, divergent comments from California Auto Body Association members and insurer representatives about consumer protection, competitive effects and enforcement.

Most important details

- Reporting and posting: ARDs that charge storage fees tied to accidents or theft recoveries must report a maximum daily storage rate once per registration cycle and post the reported maximum at the business area where customers are served. BAR told attendees it intends to clarify that a shop may change the reported maximum at other points in the registration cycle (not only at renewal) and must notify BAR within 30 days of making a change.

- Search tool and locale logic: BAR would operate a website tool that calculates average and median daily storage rates for a locale derived from ARD reports. The draft defines progressively larger radiuses around a reporting ARD (5 miles, then 10 miles, then 20 miles, then the county) depending on the number of reporting ARDs in a radius. BAR staff said the tool “shall not be used to establish, suppress, or otherwise influence actual storage rates charged by an automotive repair dealer,” language that drew skepticism about enforceability.

- Tear‑down, repair and when storage may be charged: The draft clarifies that performing a tear down as defined in CCR 3353(c) is a repair activity and would prohibit assessing storage fees while a vehicle is undergoing repairs, including a tear down. BAR would allow charging storage only after the shop obtains customer authorization, issues an itemized invoice showing completion, and notifies the customer. The draft sets a minimum notice period tied to a tear‑down estimate: BAR staff said the draft would require the shop to list a number of free days before storage begins and that the package currently uses a three‑day minimum as the baseline.

- Nonresponsive owners and public‑agency rate: If an ARD cannot reach a registered owner after three attempts on separate business days, the ARD may begin charging storage in accordance with Vehicle Code section 22524.5(c)(2)(A) (described in the workshop as the public‑agency or CHP rate) rather than the comparable‑to‑locale retail rate.

Key points of contention raised at the workshop

- Publication of averages: Collision repair representatives and some shop owners urged either keeping the computed averages internal or changing the methodology; they warned public averages could be used by insurers to cap payments. “Publishing it creates unintended consequences,” Jack Molladonoff, representing the California Auto Body Association, told the panel. Several speakers urged BAR to adopt the Department of Insurance’s labor‑rate survey methodology (Insurance Code 2695.81) or another statistically rigorous model to define locale and averages.

- Three‑day minimum and who bears costs: Several collision repair speakers opposed any rule that requires shops to provide at least three days of free storage after a tear‑down estimate, calling it an unreasonable forced gratuity. “I just think that I mean, it’s like the state telling you, you got to work 3 days for free,” Jack Molladonoff said. Insurer and consumer representatives countered that a short minimum window helps consumers who must arrange authorization through insurers and gives consumers an opportunity to respond to a teardown estimate.

- Variable/tiered rates for special vehicles: Multiple attendees proposed allowing separate reported rates or tiers for indoor versus outdoor storage and for large or electric vehicles (EVs). Shop owners argued EVs can require special handling and larger buffer zones, which raises cost. Pete Beswick and Ben Clymer Jr. suggested ARDs report distinct rates for indoor/outdoor/EV storage or otherwise account for vehicle size or storage type.

- Notification to insurers and enforcement: Several repair shops asked that BAR require shops to notify a known insurer when a vehicle is ready for pickup. Burley Cooper, in‑house counsel for CSAA Insurance Exchange, proposed changing BAR’s draft language so that where the insurer is known, notice must be sent to both the registered owner and the insurer. BAR staff confirmed they accept written comments and that BAR already has enforcement options (citations, fines and disciplinary action under Business and Professions Code provisions) once regulations are adopted.

Quotes from stakeholders

- Patrick Dore, Chief, Bureau of Automotive Repair: “We are holding a workshop to discuss draft regulations, entitled storage fees charged by automotive repair dealers.”

- Matthew Gibson, Program Manager, BAR: “The proposed regulations are drafted in accordance with the authority provided by Assembly Bill 12 63.”

- Jack Molladonoff, California Auto Body Association: “I just think that I mean, it’s like the state telling you, you got to work 3 days for free.”

- Erica Williams, in‑house counsel, CSAA Insurance Exchange: “There’s mixed feelings with these changes.”

Next steps and process notes

BAR staff said they will revise the draft based on workshop feedback, conduct internal reviews (legal and fiscal) and then seek department and agency approval before filing the regulations with the Office of Administrative Law. Filing would begin a formal minimum 45‑day public comment period under the Administrative Procedure Act. BAR welcomed written comments and reminded stakeholders that the workshop recording and materials will be posted on its website.

No formal vote or regulatory adoption occurred at the workshop; the session served to solicit detailed stakeholder input for BAR’s next draft and subsequent formal rulemaking filings.