California AB 3004 has now been sent to hearing on 6/24/2008. The senate judiciary will be hearing this bill. On May 8th, the bill passed after being read the third time, 75 Ayes to 0 Noes.

The key part of the bill is:

Any lien that arises for the storage, repair, or safekeeping of, or for the rental of parking space for, a vehicle shall be extinguished, and no lien sale shall be conducted, if the lienholder, after written demand made by either personal service or certified mail with return receipt requested by the legal owner, the lessor, or his or her agent, or insurance company representative, fails to provide, within a period of time not sooner than 24 hours nor later than 72 hours after the receipt of that written demand, copies of requested documents required to be filed or mailed pursuant to Chapter 2 (commencing with Section 10650) of Division 4 of the Vehicle Code.

The CA Assembly summary below:

              SYNOPSIS

          This non-controversial bill, sponsored by the Personal Insurance
          Federation of California, provides that a vehicle lien is
          extinguished if requested documents are not provided to the
          legal owner of the vehicle, by the lienholder, as specified.
          Current law requires every operator of a towing service to keep
          a written record of every vehicle of a type subject to
          registration stored for a period longer than 12 hours.  This
          written record must contain the name and address of the person
          storing the vehicle or requesting the towing, the names of the
          owner and driver of the vehicle and a brief description of the
          vehicle including the name or make, the motor or other number of
          the vehicle, the nature of any damage to the vehicle, and the
          license number and registration number shown by the license
          plates or registration card.  According to the author, vehicle
          lienholders often do not follow procedures for perfecting their
          lien by giving required notices or following the statutory
          requirements.  Consequently, the author states, an owner may not
          receive appropriate notices regarding the lien in a timely
          manner or at all, but the lienholder presses for excessive lien
          storage fees despite the deficiency in required notice and/or
          required documentation.  Given the relatively minor scope of the
          bill, the author has acknowledged that should it be amended, the
          Committee reserves the right to hear the bill again.  This bill
          has no known opposition.

Click here for bill.