Recapping California's Pending Storage Regulations
California Autobody Association Glendale/Foothill Chapter President Andrew Batenhorst provided association members an overview of pending storage regulations on Thursday, Dec. 11.
The Bureau of Automotive Repair is proposing changes because there is a lack of unifying regulations about how and when vehicle storage should be charged or how much should be charged. The statutes are also spread across three different codes of California law, which has caused confusion about which statute to apply when charging vehicle storage fees.
The 11 proposed regulations include the following highlighted items:
An automotive repair dealer (ARD) charging for the storage of a vehicle shall establish a daily storage rate(s) based on their costs associated with storing vehicles and shall not include an ARD’s negotiated storage rate with a third-party payor.
BAR Rationale: It is necessary to exclude an ARD’s negotiated storage rate with a third-party payor because those rates are outside the scope of the purpose of these regulations. BAR wants the ARD to use their actual costs to store a vehicle and set the storage fee based on that determination.
The BAR shall create a public search tool on its website as a reference for the public, third-party payors, and other stakeholders to identify average and median daily storage rates for a locale.
BAR Rationale: This will allow consumers to make an educated decision on whether to pay storage rates at a certain ARD based on the average and median rates for the locale within which the ARD is located. This will offer a third-party payor to reference the average and median storage rate for an ARD’s locale.
Published average and median storage rates shall not be used to establish or otherwise influence an ARD’s storage rate(s) and shall not be used to limit or suppress an ARD’s storage rate(s).
BAR Rationale: Average and median rates will simply provide a reference point for a local to the public, third party payors, and other stakeholders. It is not intended for this to establish a maximum rate an ARD can charge.
When an ARD receives a vehicle for repair but the customer does not authorize the repairs, the ARD shall notify the customer if the ARD intends to begin charging storage of the vehicle.
BAR Rationale: It is necessary to allow ARDs storing vehicles they do not have authorization to repair to be compensated for storing the vehicle.
An ARD shall notify a customer within one business day after receiving a vehicle for repair(s) if the ARD declines to repair the vehicle. The notification shall also include whether the ARD intends to begin charging storage of the vehicle.
BAR Rationale: Necessary to allow ARDs storing vehicles they will not be repairing to be compensated for storing the vehicle, as long as they notify the customer (i.e., restricted parts, not comfortable performing the repairs). ARD is permitted to charge storage fees at a rate that is deemed reasonable if it is comparable to storage-related rates and fees charged by other facilities in the same locale.
More details about the full proposal are available here. BAR believes the changes will have several benefits, including:
- Clarify the laws regarding vehicle storage fees
- Protect and inform consumers
- Prevent inflated storage rates
- Improves communication with vehicle owners
- Provide a public resource for rate comparison
Batenhorst provided several tips to help association members provide feedback to BAR about the changes:
- Choose regulation(s) to comment on
- Explain how the regulation(s) will negatively impact your business
- Offer an alternative solution (if available)
Inquiries should be directed to Holly Helsing at (916) 970-8421 or Bureau of Automotive Repair, 10949 North Mather Blvd., Rancho Cordova, CA 95670.
The backup contact person is Tessa Miller at 916-403-8600 or the same mailing address.
For more information, questions, or assistance, contact the CAA or visit its website here.