LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7090 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1382 BILL AMENDED:
SUBJECT: Dealer Services Division.
FIRST AUTHOR: Rep. Heine BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Out of State Licensing: This bill provides that the licensing requirements relating
to vehicle merchandising do not apply to distributors or manufacturers that are not located in Indiana.
Sunday Sales: The bill provides that if certain persons engage in the business of buying, selling, or trading
of motor vehicles on a Sunday, those persons commit a Class B misdemeanor.
Motor Vehicle Dealers: The bill amends current law that establishes a mandatory training program that
applicants for a used motor vehicle dealer license must complete. The bill also provides that except as part
of a change in dealer business entity type, a holder of a dealer license or endorsement may not take certain
actions with respect to the dealer license or endorsement. It also provides that certain people may not be
employed as a salesperson or act as an agent or contractor for a dealer.
Towing Services: The bill provides that the Secretary of State has authority over towing services in Indiana
(currently only the Attorney General has authority over towing services). The bill also requires a towing
company to obtain a license from the Secretary of State Dealer Services Division. It also makes conforming
changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Summary - The bill will increase the workload of the Secretary of State
to license and regulate towing companies. Increases in workload and/or expenditures to administer the
requirements of the bill could be offset with the collection of licensing fees created by the bill. Additionally,
enforcing the expansions of training requirements for motor vehicle dealers is expected to be accomplished
by the Secretary of State under existing resource and funding levels.
The bill could also decrease the workload of the Attorney General to the extent the Secretary of State decides
to represent itself in enforcement proceedings against towing service companies without any assistance from
the Attorney General.
HB 1382 1 Additional Information - The bill clarifies that out-of-state distributors and manufacturers are not subject to
licensure requirements with the Secretary of State. This provision is expected to have no fiscal impact.
Towing Service Regulation: The bill would increase the workload of the Secretary of State to provide
oversight and regulation of towing services in the state. Currently the Attorney General performs this role
for unfair and deceptive acts committed by towing companies in the state. The bill requires the Attorney
General to provide support for the Secretary of State with regards to enforcing provisions of the bill, and the
Attorney General is required to retain and employ legal professionals to assist the Secretary of State in its
enforcement responsibilities. The bill also specifies that any work the Attorney General performs to assist
the Secretary of State is to be provided from current annual appropriations to the agency.
The bill could reduce workload of the Attorney General to the extent the Secretary of State enforces
regulations of towing service operators in the state, previously the Attorney General would have the sole
responsibility to do so.
Explanation of State Revenues: Summary - The bill is expected to increase state revenue from towing
service licensure fees by approximately $100,000 per year beginning in FY 2026.
The bill could also increase revenue to the Common School Fund and General Fund from fines, fees, and
judgments collected from criminal penalties for (1) illegally acting as a motor vehicle salesperson, (2)
operating with an expired towing service license, and (3) failure to properly identify a towing service vehicle.
The bill could also increase General Fund revenue from changes to liability insurance requirements for
towing service operators, however increases are expected to be minimal.
Additional Information -
Sunday Sales: Under IC 24-4-6-1, Sunday sales of motor vehicles is currently punishable as a Class B
misdemeanor. The bill does not repeal the current penalty for Sunday sales of motor vehicles. The bill would
codify this criminal penalty in Title 9 as well and is expected to have no fiscal impact.
Unfair and Deceptive Acts: The bill amends unfair and deceptive acts pertaining to towing service operators
to conform with the changes in the bill. These unfair and deceptive acts are currently actionable by the
Attorney General.
Towing Service Licensure: There are an estimated 3,300 towing service businesses in operation in Indiana.
The bill establishes a licensing requirement for these business, with an initial application fee of $30 that is
deposited in the Dealer Compliance Account, and a $30 renewal fee that is distributed to the Dealer
Compliance Account (30%), Motor Vehicle Highway Account (40%), to the Indiana State Police (20%), and
to the Attorney General (10%).
This bill is expected to result in approximately $100,000 in annual revenue from licensing fees starting in
FY 2026, with 100% of the revenue deposited in the Dealer Compliance Account that year. Annually
thereafter, the State Highway Fund (by way of the Motor Vehicle Highway Account), the Indiana State
Police, and Attorney General will receive distributions from licensing renewal fees. The following table
shows annual state revenue distributions from license fees for the FY 2026 and FY 2027 biennium.
HB 1382 2 State Fund/Agency Fiscal Year 2026Fiscal Year 2027
Dealer Compliance Account $100,000 $30,000
Motor Vehicle Highway
Account
-- $40,000
Indiana State Police -- $20,000
Attorney General -- $10,000
Total $100,000 $100,000
Information on the number of new towing service operators that will register annually beginning in FY 2027
was not available. Annual increases in revenue to the Dealer Compliance Verification Account from new
license requests is currently indeterminable.
The State Highway Fund (INDOT) received 62% of distributions to the Motor Vehicle Highway Account
(MVHA). Beginning in FY 2027, the State Highway Fund would receive an additional $25,000 in revenue
each year.
Penalty Provisions: The following table shows new criminal penalties established by the bill.
Provision of Bill Proposed Criminal Penalty
Illegally acting as a motor vehicle salesperson Class C Misdemeanor
Operating on an expired towing service license Class A Infraction
Failure to properly identify a towing service
vehicle
Class C Infraction
If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines)
and the state General Fund (from court fees and judgments) would increase. The maximum (1) fine for a
Class C misdemeanor is $500 deposited in Common School Fund, and the $10,000 judgment for a Class A
infraction and the $500 judgment for a Class C infraction are deposited into the General Fund.
The total fee revenue per case would range between (1) $113 and $138 for misdemeanors and (2) $85.50 and
$103 for infraction cases. The amount of court fees deposited will vary depending on whether the case is
filed in a court of record or a municipal court. The following linked document describes the fees and
distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
Explanation of Local Expenditures: Penalty Provision: A Class C misdemeanor is punishable by up to 60
days in jail.
Explanation of Local Revenues: Towing Operator Licensure: Distributions of license revenue to the
MVHA would benefit local units of government through the MVHA funding formula. Local units of
government receive 38% of revenue deposited in the MVHA. This bill would increase annual MVHA
distributions by approximately $15,000 per year beginning in FY 2027.
HB 1382 3 Penalty Provision: If additional court actions occur and a guilty verdict is entered, more revenue will be
collected by certain local units.
If a misdemeanor case is filed in a court of record, the county general fund will receive $47.40 and qualifying
municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30,
and the municipality will receive $46. If an infraction case is filed in a court of record, the county will receive
$33.90 and qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court,
the county receives $20, and the municipality will receive $33.50.
The following linked document describes the fees and distribution of the revenue: Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Secretary of State.
Local Agencies Affected: Trial courts, local law enforcement agencies.
Information Sources: https://www.in.gov/sos/dealer/requirements/off-site-sales-requirements/; IBIS World,
https://www.ibisworld.com/industry-statistics/number-of-businesses/automobile-towing-united-states/;
Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1382 4