SB 1112 California Senate · 2025-2026 Regular Session

Vehicles: towing companies and storage facilities.

Summary

Existing law requires an authorized member of a public agency who directs the storage of a vehicle, as specified, to give notice to the legal owners within 48 hours and the opportunity for a poststorage hearing to determine the validity of the storage. Existing law requires an officer or employee, upon the removal of a vehicle from public or private property, to store the vehicle at the nearest garage or place of safety designated by the governmental agency. A violation of the Vehicle Code or a local ordinance adopted pursuant to that code is an infraction. This bill would authorize the registered or legal owner, lienholder, or insurer of a vehicle to post a bond or other adequate security with the clerk of the court in the county where the vehicle is stored before the sale of the vehicle by a towing company, impound yard, or storage facility, as specified. The bill would require the court, upon the posting of the bond, to issue a certificate directing the towing company, impound yard, or storage facility to release the vehicle to the party who posted the bond. The bill would require the party that posted the bond to initiate judicial proceedings within 10 court days after the issuance of the certificate, alleging certain causes of action. The bill would prohibit an auto body shop, impound yard, or towing company from knowingly participating in, or profiting from, specified towing or storage practices. The bill would require the Bureau of Automotive Repair to, by January 1, 2028, develop and distribute a notice that states a vehicle owner's rights pursuant to these provisions. The bill would require a towing company, impound yard, storage facility, or auto body shop to post that notice where it is visible to consumers onsite. The bill would impose a civil fine against a towing company, impound yard, storage facility, or auto body shop, as specified, for a violation of these provisions. The bill would exempt certain towing companies, storage companies, or impound yards from these provisions when a vehicle was towed at the request of the Department of the California Highway Patrol, a local law enforcement agency, the Department of Transportation, or a local transportation department or agency, as specified.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Aug 2026

Senate Passage

May 2026

Assembly Passage

Governor

Introduced Feb 17, 2026 Last action Aug 13, 2026

Maddy AI version diff · 5 comparisons

What changed between versions

04/16/26 - Amended Senate → 06/08/26 - Amended Assembly · 11 edits · Jun 8, 2026

MAJOR

The Assembly significantly restructured SB 1112 by replacing the previous small-claims-based wrongful towing framework with a streamlined bond-and-release mechanism that lets vehicle owners recover their cars before a lien sale by posting a bond equal to accrued charges. The bill also expands the exemption for government-requested tows, adds a Bureau of Automotive Repair consumer notice requirement with a 2028 deadline, and increases the civil penalty cap in Section 22651.07 from $500 to $1,000 per vehicle.

SCOPE

New Section 22852.1 creates a bond-based vehicle release mechanism: before a towing company, impound yard, or storage facility can sell a vehicle under Civil Code Sections 3071 or 3072, the registered owner, legal owner, lienholder, or insurer may post a bond equal to accrued towing and storage charges with the court clerk. The clerk then issues a certificate directing immediate release of the vehicle.

The exemption for government-requested tows is expanded. The old version only exempted vehicles towed at the request of the California Highway Patrol. The new version also exempts tows requested by a local law enforcement agency, the Department of Transportation, or a local transportation department or agency, provided the requesting entity has an administrative oversight mechanism to address violations.

REQUIREMENT

The party posting the bond must initiate judicial proceedings within 10 court days after the certificate is issued, alleging a violation of at least one of nine specified statutes (including Vehicle Code Sections 22513, 22524.5, 22651.07, 22658, 22852, 22853, and others). If proceedings are not initiated within 10 court days, the bond is forfeited to the facility.

By January 1, 2028, the Bureau of Automotive Repair must develop and distribute a notice stating vehicle owner's rights under the new section. By July 1, 2028, each towing company, impound yard, storage facility, and auto body shop must post that notice where visible to consumers onsite. Non-compliance carries a civil fine up to four times the amount charged.

The lien sale compliance requirement now references both Civil Code Sections 3071 and 3072 (previously only Section 3071), broadening the notice obligations before a facility can conduct a lien sale. Failure to provide notice renders storage charges void.

ENFORCEMENT

If a towing company, impound yard, or storage facility fails to release the vehicle upon receipt of the release certificate during regular business hours, it forfeits all rights to the bond and any storage fees, and must pay the owner's attorney's fees and costs incurred in obtaining the vehicle.

Auto body shops, impound yards, or storage facilities that knowingly participate in or profit from a violation enumerated in the new section are subject to a civil fine not exceeding four times the amount charged to the vehicle owner.

The civil penalty in Section 22651.07(k) is increased from up to two times the amount charged (capped at $500 per vehicle) to up to three times the amount charged (capped at $1,000 per vehicle).

DEFINITION

The old version included detailed definitions for 'excessive or unreasonable fees' and 'wrongfully taken or withheld' with enumerated subcategories (misrepresentation, impersonation, unsolicited collision response, advance scout tactics, refusal to disclose destination, intentional delays). These are removed in favor of referencing specific statutes by number.

ELIGIBILITY

The old version specifically authorized small claims court proceedings and set bond caps of $6,250 for businesses and $500 for individuals. The new version removes the small claims specification (using 'judicial proceedings' generally) and removes the bond caps entirely, requiring only that the bond equal accrued charges.

TIMELINE

The deadline to initiate judicial proceedings after posting a bond is reduced from 45 days (old version) to 10 court days (new version), significantly tightening the window for vehicle owners to pursue their claims.

06/08/26 - Amended Assembly → 06/17/26 - Amended Assembly · 4 edits · Jun 17, 2026

MODERATE

The June 17 amendment removes all amendments to Vehicle Code Section 22651.07 (which had added extensive consumer protection provisions for towing and storage facilities, including posting requirements, itemized invoice rules, access rights, and a civil penalty of up to 3 times charges capped at $1,000 per vehicle). The bill now solely adds new Section 22852.1, which creates a bond-based mechanism for vehicle owners to recover vehicles before lien sales. Within that new section, the notice-compliance penalty was changed from a single fine of up to 4 times the amount charged to a tiered structure of $1,500 for a first violation and $2,500 for subsequent violations.

Scope change

The bill's scope narrowed significantly. It previously both added Section 22852.1 and amended Section 22651.07 (adding broad consumer protection rules for all towing and storage facilities). It now only adds Section 22852.1, which is a narrower provision focused on the bond-based vehicle recovery process before lien sales.

SCOPE

All amendments to Vehicle Code Section 22651.07 were removed from the bill. This section had required towing and storage facilities to post a standardized notice, provide itemized invoices, allow vehicle inspection and personal property retrieval during business hours, accept specific payment methods, and imposed civil liability of up to 3 times the amount charged (capped at $1,000 per vehicle) for violations.

ENFORCEMENT

The penalty for failing to post the Bureau of Automotive Repair notice was changed from a single civil fine not to exceed 4 times the amount charged to the vehicle owner, to a tiered structure: up to $1,500 for the first violation and up to $2,500 for the second and any subsequent violation.

TECHNICAL

Multiple references throughout Section 22852.1 were updated from 'the bond' to 'the bond or other adequate security' to ensure consistency with the broader security mechanism described in subdivision (a).

In subdivision (d), the phrase 'civil fine not to exceed four times' was changed to 'civil fine penalty not to exceed four times,' a minor wording clarification.

03/25/26 - Amended Senate → 04/16/26 - Amended Senate · 6 edits · Apr 16, 2026

MODERATE

SB 1112 was substantially restructured between these versions. The bill dropped its amendment to Section 22852 (poststorage hearing procedures) and instead now amends Section 22651.07 to add comprehensive consumer protection requirements for towing and storage facilities, including itemized invoice mandates, payment method requirements, business hour accessibility, and a standardized consumer rights notice. The civil penalty for violations was increased from 2 times the amount charged (capped at $500) to 3 times the amount charged (capped at $1,000). The new Section 22852.1 on wrongful towing and small claims remedies was retained.

Scope change

The bill's scope shifted from amending poststorage hearing procedures (Section 22852) to adding consumer protection requirements for towing and storage facilities (Section 22651.07). The wrongful towing remedies section (22852.1) was retained but is now the second section of the bill rather than the first.

SCOPE

The bill no longer amends Section 22852 of the Vehicle Code (poststorage hearing procedures). That entire amendment was removed. Instead, the bill now amends Section 22651.07 to add consumer protection requirements for towing and storage facilities.

REQUIREMENT

New requirements added to Section 22651.07: facilities must post a standardized 'Towing and Storage Fees and Access Notice,' provide itemized invoices before payment, accept cash/insurer's check/valid bank credit card, be open Monday through Friday 8am-5pm, allow vehicle inspection without fee, allow insurer inspections in 45-minute increments, and permit retrieval of personal property at no charge during business hours.

ENFORCEMENT

Civil liability for violations of Section 22651.07 increased from up to 2 times the amount charged (capped at $500 per vehicle) to up to 3 times the amount charged (capped at $1,000 per vehicle).

DEFINITION

New definitions added for 'itemized invoice' (13 required elements including dispatch time, arrival time, completion time, hourly rates, storage rates, gate fees, and identity of the person directing the tow) and 'insurer' (first-party or third-party).

ELIGIBILITY

New exemption: automotive repair dealers registered under Business and Professions Code Section 9884 that do not provide towing services are exempt from posting the Towing and Storage Fees and Access Notice in the office area. Also, the section does not apply to towing or storage of repossessed vehicles by persons subject to or exempt from the Collateral Recovery Act.

FISCAL

Fiscal committee designation changed from 'no' to 'yes,' indicating a state fiscal impact was identified for the bill.

02/17/26 - Introduced → 03/25/26 - Amended Senate · 9 edits · Mar 25, 2026

MAJOR

The bill was dramatically expanded from a minor technical amendment to Vehicle Code Section 22852 into a new consumer protection statute (Section 22852.1) that gives vehicle owners the right to challenge wrongful towing and excessive storage fees in small claims court. It creates a bond mechanism for vehicle release, defines specific fraudulent towing practices, imposes civil fines of up to 4x charges on violators, and requires posting of consumer rights notices. The fiscal committee designation changed from 'no' to 'yes,' reflecting the new enforcement and penalty provisions.

Scope change

Expanded from a narrow technical amendment to one Vehicle Code section into a broad consumer protection law creating new judicial remedies, bond mechanisms, definitions of fraudulent towing conduct, civil penalties, and posting requirements applicable to private towing companies, impound yards, storage facilities, and auto body shops statewide.

SCOPE

Entirely new Section 22852.1 added to the Vehicle Code, expanding the bill from a technical fix to a comprehensive consumer protection statute targeting wrongful towing by private companies.

Exemption for vehicles towed at the request of the California Highway Patrol by an approved towing company and stored at an approved facility or impound yard.

DEFINITION

Defines 'wrongfully taken or withheld' with specific examples including misrepresentation of authority, impersonation of rental/insurance contacts, unsolicited collision response, advance scout authorization tactics, refusal to disclose tow destination, and intentional delays. Defines 'excessive or unreasonable fees' as charges exceeding CHP facility or locally approved law enforcement rates.

ELIGIBILITY

Registered or legal owner, lienholder, or insurer of a vehicle may initiate small claims proceedings in the county where the vehicle is stored to challenge wrongful taking or excessive fees.

FISCAL

Bond mechanism allows vehicle release before sale: maximum $6,250 for business owners and $500 for individual owners (whichever is less than accrued charges). If no court action is filed within 45 days of posting bond, the towing company can collect the bond or get a notice requiring the surety to pay.

Fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has state fiscal implications due to new enforcement and penalty provisions.

ENFORCEMENT

Civil fine not to exceed 4 times the amount charged to the vehicle owner for knowingly participating in unauthorized towing practices or failing to post required consumer rights notices. Lien sales without proper Civil Code Section 3071 notice render storage charges void.

REQUIREMENT

Towing companies, impound yards, storage facilities, and auto body shops must post a consumer rights notice developed by the Bureau of Automotive Repairs visible onsite.

TECHNICAL

Section 22852 changes are now purely technical: removal of 'Whenever' at the start of subdivision (a) and replacement of 'his or her' with gender-neutral 'the owner's.'

Floor votes · Senate May 20, 2026

How they voted

38–0

Passed · 2 other

Total votes 40

May 20, 2026

D Democratic30

29 Yea 1

96% Yea

R Republican10

9 Yea 1

90% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 13, 2026

Lower · Passed

August 13 hearing: Held in committee and under submission.

lower

Jun 17, 2026

Lower · Passed

Read second time and amended. Re-referred to Com. on APPR.

lower

Jun 16, 2026

Lower · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 16).

lower

Jun 8, 2026

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

lower

May 26, 2026

Committee

Referred to Com. on JUD.

lower

May 20, 2026

Upper · Passed

Read third time. Passed. (Ayes 38. Noes 0. Page 4371.) Ordered to the Assembly.

upper

May 4, 2026

Upper · Passed

From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

upper

Apr 22, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 3978.) (April 21). Re-referred to Com. on APPR.

upper

Apr 20, 2026

Committee

Re-referred to Com. on JUD.

upper

Apr 16, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. P. & E.D.

upper

Apr 13, 2026

Committee

Re-referred to Coms. on B. P. & E.D. and JUD.

upper

Apr 13, 2026

Upper · Passed

April 14 hearing postponed by committee.

upper

Apr 8, 2026

Committee

Re-referred to Coms. on JUD. and B. P. & E.D.

upper

Mar 25, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

upper

Feb 26, 2026

Committee

Referred to Com. on RLS.

upper

Feb 17, 2026

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 0 co-sponsors