California collects comments on proposed storage fee regulation change

California collision repairers have until the end of December to provide comments to the Bureau of Automotive Repair (BAR) on proposed changes to storage fee regulatory language that the bureau has been working on for more than a year. 

BAR held multiple workshops last year on the proposed changes following the passage of AB1263 in 2023, which granted BAR the authority to address the subject. 

Collision industry representatives have voiced concerns about the regulation, including the creation of a public database that will provide median and average storage rates by radius and a requirement for shops to allow a minimum of three days for authorization after teardown before charging for storage.  

An email sent by BAR last week highlights the changes to the regulation as follows: 

• • Establish that fees charged for the storage of a motor vehicle shall be reasonable.
  • Determine when storage fees may be charged and where a vehicle may be stored.
  • Require that an automotive repair dealer provide an itemized estimate and invoice for storage fees when charged.
  • Require that an automotive repair dealer that provides storage services post their current daily storage fee rate in an area frequented by customers and provide BAR with their daily storage rate annually when renewing their registration.
  • Require that an automotive repair dealer that maintains a motor carrier permit display the Towing and Storage Fees Access Notice in an area of the business that is in plain view of the public. They must also have copies of the notice available to the public.
  • Create a search tool on BAR’s website showing average and median daily storage rates for a given locale based on the maximum daily storage rates reported by automotive repair dealers.
  • Define a “locale” as one of four geographic radii around each reporting automotive repair dealer that is sufficient to identify the average and median storage rates.

The proposed regulation states that any applicant can charge vehicle storage fees after performing repairs as a result of an accident or theft recovery, and will provide BAR with the maximum daily storage rate. The business can change its rate once per registration cycle by providing a written notice of change to BAR. 

Jack Molodanof, counsel for the California Autobody Association, previously said the search tool will be used by insurance companies to set a cap on what they will pay. 

“No insurance company’s going to pay more than the average; it is not going to happen,” Molodanof said. “You know it’s unrealistic, and that is the concern.” 

Molodanof suggested that the tool be used internally by the department but not be made public. 

“Do your own little internal survey, but don’t publish it because this looks like a survey the way you’re doing it,” Molodanof said. 

Molodanof also raised concerns about a three-business-day minimum that shops would be required to wait after teardown for authorization before starting storage fees. He said that it could add up to five days if a weekend is in the middle. 

“You are basically saying that the shop has to give away three to five days of storage,” Molodanof said. 

Those wanting to submit a comment to BAR can do so by emailing Holly Helsing at [email protected] or Tessa Miller at [email protected]

Both can be sent a physical letter to the Bureau of Automotive Repair, 10949 North Mather Blvd., Rancho Cordova, California, 95670. 

The California Autobody Association is also collecting comments to be sent to BAR. Any concerns can be emailed to Molodanof at [email protected]

Earlier this month The Oklahoma Auto Body Association (OKABA) and 13 auto body shops filed lawsuits against the state of Oklahoma requesting a temporary injunction and declaratory judgment, claiming that newly-passed laws which took effect on Nov. 1, are unconstitutional.

Senate Bill 641, introduced by Sen. Lonnie Paxton (R-23), an Oklahoma Farm Bureau insurance agent, was passed by the 2025 legislature, created a law that caps the daily storage fees for total loss vehicles at $39 for gas vehicles and $125 for EVs with a damaged battery. It can be increased to $75 for gas and $200 for EVs on the 11th day.

House Bill 1084, passed by the 2025 legislature, creates a law that bans consumers from assigning benefits to an auto body shop. Read the full suit filed against the law here.

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