AMENDED IN ASSEMBLY JUNE 17, 2026

AMENDED IN ASSEMBLY JUNE 8, 2026

AMENDED IN SENATE APRIL 16, 2026

AMENDED IN SENATE MARCH 25, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

95

Introduced by Senator Archuleta

February 17, 2026

An act to add Section 22852.1 to the Vehicle Code, relating to vehicles.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

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 facility, or auto body shop, not to exceed 4 times the amount charged to the vehicle owner, 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.

The people of the State of California do enact as follows:

SECTION 1.

Section 22852.1 is added to the Vehicle Code, to read:

22852.1.

(a) (1) (A)Before the sale of a vehicle by a towing company, impound yard, or storage facility pursuant to Section 3071 or 3072 of the Civil Code, the registered owner, legal owner, lienholder, or insurer of the vehicle may have the vehicle released upon posting a bond or other adequate security with the clerk of the court in the county in which the vehicle is stored.

(2) The bond or other adequate security shall be in an amount equal to the accrued towing and storage charges at the time of release of the vehicle.

(3) Upon the posting of the bond or other adequate security, the clerk of the court shall issue a certificate directing the towing company, impound yard, or storage facility to release the vehicle to the party that posted the bond or other adequate security.

(4) (A) Upon receipt of a copy of the certificate directing the release of the vehicle during regular business hours, the towing company, impound yard, or storage facility shall immediately release the vehicle to the person who posted the bond or other adequate security.

(B) If the towing company, impound yard, or storage facility fails to release the vehicle, the following conditions shall apply:

(i) The towing company, impound yard, or storage facility shall forfeit any rights to the bond or other adequate security posted with the court and any storage fees or other charges.

(ii) The towing company, impound yard, or storage facility shall pay the registered or legal owner’s attorney’s fees and costs incurred in obtaining the vehicle or securing its release.

(b) The party posting the bond or other adequate security shall initiate judicial proceedings within 10 days after the issuance of the certificate by the clerk of the court, alleging a violation of at least one of the following statutes in addition to any other applicable cause of action:

(1) Section 10652.5.

(2) Section 12110.

(3) Section 22513.

(4) Section 22524.5.

(5) Section 22651.07.

(6) Section 22658.

(7) Section 22852.

(8) Section 22853.

(9) Section 34507.5.

(c) If the party posting the bond or other adequate security fails to initiate judicial proceedings within 10 court days of the issuance of the certificate, the bond or other adequate security is forfeited in favor of the towing company, impound yard, or storage facility.

(d) An auto body shop, impound yard, or storage facility shall not knowingly participate in, or profit from, a violation enumerated in subdivision (b). An auto body shop, impound yard, or storage facility that accepts vehicles they know, or reasonably should have known, were wrongfully taken or withheld as described by a violation enumerated in subdivision (b), shall be subject to a civil fine penalty not to exceed four times the amount charged to the vehicle owner.

(e) An auto body shop, storage facility, or impound yard shall comply with the provisions of Sections 3071 and 3072 of the Civil Code, as applicable, prior to conducting a lien sale. The failure to provide notice shall render storage charges void.

(f) (1) By January 1, 2028, the Bureau of Automotive Repair shall develop and distribute a notice that states a vehicle owner’s rights pursuant to this section. By July 1, 2028, each towing company, impound yard, storage facility, and auto body shop shall post that notice, visible to consumers onsite. An entity that fails to comply with the notice requirement shall be subject to a civil fine not to exceed four times the amount charged to the vehicle owner.

(g) This section does not apply to any vehicle towed by an approved towing company and stored at an approved storage facility or impound yard 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, if the department or agency has an administrative oversight mechanism to address violations of law.