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BAR details impending storage‑fee and tear‑down disclosure rules; advisory group raises shop‑level clarity concerns

3127170 · April 25, 2025
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Summary

BAR staff described regulation packages that would standardize storage fee disclosure and tear‑down estimate requirements. Industry members asked the bureau to provide shop‑level materials and clearer examples for compliance.

SACRAMENTO — Bureau of Automotive Repair staff presented draft regulation packages April 28 that would change how automotive repair dealers disclose costs and document tear‑down work and storage charges.

Why it matters: The rules under consideration would standardize how shops present estimates and invoices for repair and storage, require separate forms for towing fees, and make the bureau responsible for publishing average and median daily storage rates by locale. Those changes could affect repair‑shop workflows, consumer signage and insurer billing practices.

Shelton and Helsing briefed the advisory group on a tear‑down disclosure package and a storage‑fees package. The tear‑down package, staff said, adds and amends definitions related to tear‑down disclosure for automotive repair dealers (ARDs); it clarifies estimate and work‑order requirements for a vehicle tear‑down, sets documentation requirements for third‑party payers, and requires separate documented authorization for towing and separate disclosure of towing service fees to customers.

The storage‑fees package consolidates existing storage laws into a single regulatory section, requires ARDs to provide itemized estimates and invoices for storage and towing and to post and annually report current daily storage rates. The package also calls for the bureau to build a search tool on its website that shows average and median daily storage rates for locales defined by geographic radii around reporting ARDs.

Staff said these packages had undergone public workshops and comment periods, with the tear‑down package sent to the Department of Consumer Affairs and submitted to the Office of Administrative Law; the storage package was being finalized for submission to the Business, Consumer Services and Housing Agency prior to OAL filing and a 45‑day public comment period.

Industry reaction and requests: Advisory members asked how the bureau responds to public comments and how late changes are handled; staff explained that they either respond in the final statement of reasons or, if changes are made, re‑issue a 15‑day modified‑text comment period. Members urged BAR to produce shop‑level educational materials (a "right‑to‑know" style packet) that explain line‑by‑line what must be presented to customers. One member, Bud Rice, suggested concise, plain‑language materials targeted to shops so they can implement new disclosure requirements at the service counter.

Shelton noted the bureau will notify interested parties when the packages reach the comment period; staff estimated the storage‑fees 45‑day comment window likely to start in late June.

Ending: BAR staff said the bureau supported producing shop‑level guidance and will consider materials to help ARDs implement the new estimate, authorization and posting requirements when the rules are finalized.