Fight Brewing over Insurer-Backed California Bill That Includes Autobody Shops
An insurance industry-backed California bill to create a new regulatory board for towing and storage companies under the California Department of Consumer Affairs has drawn opposition from the auto body industry.
Assembly Bill 294 was introduced by Assemblyman Miguel Santiago, D-Los Angeles, in January, and is sponsored by insurance companies.
The bill, also known as the Vehicle Tow and Storage Act, would establish the Vehicle Towing and Storage Board in the Department of Consumer Affairs and would empower the board to regulate and resolve disputes involving vehicle towing businesses.
The bill 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. It would establish various penalties for violations of these provisions.