California ‘bandit towing’ bill moves forward with auto body shops included

A bill to deter “bandit towing” has cleared the Assembly’s Judiciary Committee unanimously and is pending before the Appropriations Committee.

Before the sale of a vehicle held by a towing company, impound yard, or storage facility, SB 1112 authorizes the vehicle’s registered owner, legal owner, lienholder, or insurer to post a bond or other adequate security for release of the vehicle. The bill states that the bond or other adequate security must be in an amount equal to the accrued towing and storage charges at the time the vehicle is released, and must be posted with the court clerk in the county where the vehicle is being stored.

The bill would exempt certain towing or storage companies or impound yards from the provisions when a vehicle is towed at the request of the California Highway Patrol, a local law enforcement agency, the Department of Transportation, or a local transportation department or agency.

The bill also brings auto body shops into play regarding alleged “bandit towing” vehicles. It states that in addition to impound yards and storage facilities, auto body shops that accept vehicles “they know, or reasonably should have known, were wrongfully taken or withheld as described by a violation enumerated in subdivision (b), shall be subject to a civil penalty not to exceed four times the amount charged to the vehicle owner.”

Earlier this year, the California Autobody Association (CAA) attorney Jack Molodanof wrote the sponsor of the bill, Sen. Bob Archuleta (D-District 30), asking that automotive repair dealers registered with the Bureau of Automotive Repair (BAR) that receive vehicles for diagnostics, estimates, storage, or repair services at the request of the vehicle’s owner or the owner’s authorized representation be exempt from the bill.

The bill states that if the towing company, impound yard, or storage facility fails to release the vehicle, the following conditions apply:

• • “The towing company, impound yard, or storage facility shall forfeit any rights to the bond or other adequate security posted with the court and any storage fees or other charges.
  • “The towing company, impound yard, or storage facility shall pay the registered or legal owner’s attorney’s fees and costs incurred in obtaining the vehicle or securing its release.”

It also states that the party posting the bond or other adequate security must initiate judicial proceedings within 10 days after the court clerk issues the release certificate, alleging a violation of at least one of nine statutes, in addition to any other applicable cause of action. If not, the bond/security is forfeited to the business where the vehicle is being stored.

If the bill is passed, by Jan. 1, 2028, the Bureau of Automotive Repair will be required to develop and distribute a notice that states a vehicle owner’s rights pursuant to the new section of California’s Vehicle Code.

By July 1, 2028, each towing company, impound yard, storage facility, and auto body shop must post that notice, visible to consumers onsite.

Entities that fail to comply with the notice requirement would be subject to a civil penalty of not more than $1,500 for the first violation, and not more than $2,500 for the second and any subsequent violation.

The Senate passed the bill on May 20, 38-0, with two senators’ votes not recorded.

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Featured image: California State Assembly meeting chamber in Sacramento, California. (Credit: S. Greg Panosian/iStock)