Repair Industry Pushes Back on California Towing Bill

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Feb. 23, 2021—The auto repair industry is pushing back on an insurance industry-backed California bill that would create a regulatory board for towing and storage companies, the Insurance Journal reported. 

Assembly Bill 294 was introduced in January and would establish the Vehicle Towing and Storage Board in the Department of Consumer Affairs and would allow it to regulate and resolve disputes involving vehicle towing businesses. It would also require a business to obtain a vehicle tow and storage permit and pay an annual fee before operating a tow truck or tow vehicle in California. 

Jack Molodanof, a lobbyist for the California Autobody Association, told the publication that the bill shouldn’t include auto shops, which are already heavily regulated by the Bureau of Automotive Repair, and that it prohibits auto repair shops from charging reasonable rates for storage.

The bill is next set to be heard in the Assembly Committee on Transportation.

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