Bureau of Automotive Repair unveils draft rules for storage, towing fees; stakeholders warn of unintended effects

The Bureau of Automotive Repair on Dec. 12 held a regulatory workshop to review a draft regulation package implementing Assembly Bill 12 63 and clarifying how automotive repair dealers (ARDs) report, post and charge storage and towing fees. Patrick DeRae, chief of the Bureau of Automotive Repair, opened the session and said the draft aims to “codify BAR’s guidance to the automotive repair industry regarding storage fees” and bring Business and Professions, Civil and Vehicle Code provisions into a single rule set.

The draft would require ARDs that charge storage fees resulting from an accident or theft recovery to report their maximum daily storage rate to BAR as part of registration or renewal, post that maximum rate at their place of business, make itemized invoices available when storage is charged, accept multiple payment methods, and provide consumers and third-party payers access to stored vehicles. The package would also create a public “search tool” that reports average and median daily storage rates for a locale based on reported maximums, with a tiered radius (5 miles, expand to 10 miles if fewer than 20 reporters, then county-wide if necessary) to compute the averages. Matthew Gibson, program manager in BAR’s executive office, said the search tool “shall not be used to establish or otherwise influence actual storage rates,” but would provide information to consumers, insurers and shops.

Why it matters: storage and towing fees are a common source of disputes among vehicle owners, repair businesses and insurers. The draft tries to balance transparency, consumer protections and BAR’s enforcement role, but commenters warned the proposal could produce unintended market effects or enforcement gaps. The workshop was BAR’s third outreach event; BAR and participants signaled the draft will be revised before any formal rulemaking and a public comment period before the Office of Administrative Law.

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