Introduced Version
HOUSE BILL No. 1493
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 24-14.
Synopsis: Regulation of towing services. Establishes the towing
complaint board to review and resolve towing complaints. Requires an
attestation on invoices of actual towing charges assessed by a towing
company that all equipment billed for was necessary and used.
Prohibits certain towing companies from offering compensation for
referrals. Requires a law enforcement agency to periodically review a
towing company's rate sheets and whether the towing company has
been issued a fine by the towing complaint board. Provides that upon
payment of 50% of the charges and a copy of a filed complaint with the
towing complaint board, a towing company or storage shall release any
property within 24 hours.
Effective: July 1, 2025.
Criswell
January 21, 2025, read first time and referred to Committee on Roads and Transportation.
2025 IN 1493—LS 7680/DI 151 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1493
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 24-14-2-3.8 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 3.8. "Compensation" means any money, thing of
4 value, or economic benefit conferred on, or received by, a person
5 in return for services rendered, or for services to be rendered,
6 whether by that person or another person.
7 SECTION 2. IC 24-14-2-12.3 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2025]: Sec. 12.3. "Property", for purposes of
10 IC 24-14-7, has the meaning set forth in IC 24-14-7-3.
11 SECTION 3. IC 24-14-5-1, AS ADDED BY P.L.281-2019,
12 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 1. (a) An itemized invoice of actual towing
14 charges assessed by a towing company shall be made available to the
15 owner of the motor vehicle or the owner's agent not later than one (1)
16 business day after:
17 (1) the tow is completed; or
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1 (2) the towing company has obtained all necessary information to
2 be included on the invoice, including any charges submitted by
3 subcontractors used by the towing company to complete the tow
4 and recovery.
5 (b) The itemized invoice required by this section must contain the
6 following information:
7 (1) The location from which the motor vehicle was towed.
8 (2) The location to which the motor vehicle was towed.
9 (3) The name, address, and telephone number of the towing
10 company.
11 (4) A description of the towed motor vehicle, including the:
12 (A) make;
13 (B) model;
14 (C) year; and
15 (D) vehicle identification number;
16 of the motor vehicle.
17 (5) The license plate number and state of registration for the
18 towed motor vehicle.
19 (6) The cost of the original towing service.
20 (7) The cost of any vehicle storage fees, expressed as a daily rate.
21 (8) Other fees, including documentation fees and motor vehicle
22 search fees.
23 (9) The costs for services that were performed under a warranty
24 or that were otherwise performed at no cost to the owner of the
25 motor vehicle.
26 (10) An attestation that all equipment billed for was necessary
27 and used.
28 (c) Any service or fee in addition to the services or fees described
29 in subsection (b)(6), (b)(7), or (b)(8) must be set forth individually as
30 a single line item on the invoice required by this section, with an
31 explanation and the exact charge for the service or the exact amount of
32 the fee.
33 (d) A copy of each invoice and receipt submitted by a tow truck
34 operator in accordance with this section shall:
35 (1) be retained by the towing company for a period of two (2)
36 years from the date of issuance; and
37 (2) throughout the two (2) year period described in subdivision
38 (1), be made available for inspection and copying not later than
39 forty-eight (48) hours after receiving a written request for
40 inspection from:
41 (A) a law enforcement agency;
42 (B) the attorney general;
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1 (C) the prosecuting attorney or city attorney having
2 jurisdiction in the location of any of the towing company's
3 Indiana business locations;
4 (D) the disabled motor vehicle's owner; or
5 (E) the agent of the disabled motor vehicle's owner.
6 SECTION 4. IC 24-14-5-2 IS ADDED TO THE INDIANA CODE
7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2025]: Sec. 2. (a) If a law enforcement agency uses a towing
9 company for towing services, the law enforcement agency shall
10 periodically review:
11 (1) the rate sheet listing the cost and charging rate, if
12 applicable, for each service provided by the towing company;
13 and
14 (2) whether the towing company has been issued a fine under
15 IC 24-14-11.
16 (b) Upon a review described in subsection (a), if it is determined
17 that a towing company:
18 (1) is charging unreasonable rates; or
19 (2) has been issued a fine under IC 24-14-11;
20 a law enforcement agency may terminate or suspend any
21 agreement to use the towing company's services.
22 SECTION 5. IC 24-14-7-3 IS ADDED TO THE INDIANA CODE
23 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
24 1, 2025]: Sec. 3. (a) As used in this section, "property" means any
25 of the following:
26 (1) A truck (as defined in IC 9-13-2-188).
27 (2) A trailer (as defined in IC 9-13-2-184).
28 (3) Cargo.
29 (b) A person may file a complaint with the towing complaint
30 board under IC 24-14-11 if the person:
31 (1) owns or holds a lien on property held at a towing company
32 or storage facility; and
33 (2) believes the charges relating to a tow or the storage of the
34 property are unreasonable.
35 (c) Not later than twenty-four (24) hours after receipt of:
36 (1) fifty percent (50%) of the amount charged; and
37 (2) a copy of a complaint filed with the towing complaint
38 board under IC 24-14-11;
39 a towing company or storage facility shall release all property to
40 a properly identified person who owns or holds a lien on the
41 property.
42 SECTION 6. IC 24-14-9-1, AS ADDED BY P.L.281-2019,
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1 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 1. A towing company shall not do any of the
3 following:
4 (1) Falsely represent, either expressly or by implication, that the
5 towing company represents or is approved by any organization
6 that provides emergency road service for disabled motor vehicles.
7 (2) Require the owner or operator of a disabled motor vehicle to
8 preauthorize:
9 (A) repair work; or
10 (B) more than twenty-four (24) hours of storage;
11 as a condition for providing towing service for the disabled motor
12 vehicle.
13 (3) Charge more than one (1) towing fee when the owner or
14 operator of a disabled motor vehicle requests that the disabled
15 motor vehicle be towed to a repair facility owned or operated by
16 the towing company.
17 (4) Tow a motor vehicle to a repair facility unless:
18 (A) either:
19 (i) the owner of the motor vehicle; or
20 (ii) the owner's designated representative;
21 gives consent for the motor vehicle to be towed to the repair
22 facility; and
23 (B) the consent described in clause (A) is given before the
24 motor vehicle is removed from the location from which it is to
25 be towed.
26 The prohibition set forth in this subdivision does not apply in any
27 case in which a towing company tows a motor vehicle to a storage
28 facility that includes a repair facility on the same site.
29 (5) Offer or provide compensation to a person for a towing
30 referral unless the person and towing company have a prior
31 contract.
32 SECTION 7. IC 24-14-11 IS ADDED TO THE INDIANA CODE
33 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]:
35 Chapter 11. Towing Complaint Board
36 Sec. 1. As used in this chapter, "board" means the towing
37 complaint board established by section 3 of this chapter.
38 Sec. 2. As used in this chapter, "towing complaint" means a
39 written complaint related to towing fees.
40 Sec. 3. The towing complaint board is established as a
41 continuing board under the executive branch of state government.
42 Sec. 4. (a) The board consists of the following five (5) members:
2025 IN 1493—LS 7680/DI 151 5
1 (1) The attorney general or the attorney general's designee.
2 (2) Four (4) members appointed by the governor that meet the
3 following requirements:
4 (A) One (1) member who has broad experience in the
5 trucking industry.
6 (B) One (1) member who has broad experience in the
7 towing industry.
8 (C) One (1) member who has broad experience in the
9 insurance industry.
10 (D) One (1) member from the state police department.
11 (b) All members are voting members.
12 (c) The member appointed under subsection (a)(1) shall serve as
13 the board chair.
14 Sec. 5. (a) Members of the board appointed under section 4(a)(2)
15 of this chapter serve a term that ends June 30 of each
16 odd-numbered year but may be reappointed to subsequent terms.
17 (b) If a vacancy occurs, the appointing authority that appointed
18 the member whose position is vacant shall appoint an individual to
19 fill the vacancy. An appointment to fill a vacancy occurring before
20 the expiration of a term is for the remainder of the unexpired term.
21 Sec. 6. A member of the board is not entitled to compensation,
22 per diem, or reimbursement for expenses.
23 Sec. 7. (a) Three (3) members of the board constitute a quorum.
24 (b) The affirmative vote of at least three (3) members of the
25 board is required for the board to take any official action.
26 (c) The board shall meet at the call of the board chair.
27 Sec. 8. (a) The board shall establish procedures for reviewing
28 and resolving towing complaints.
29 (b) Upon receipt of a towing complaint, the board shall give
30 notice to the towing company against whom the towing complaint
31 is directed and the board shall provide information about the
32 reconsideration process.
33 Sec. 9. (a) The board shall review a towing complaint not later
34 than thirty (30) days after receiving the complaint.
35 (b) In reviewing a complaint received under subsection (a), the
36 board shall determine:
37 (1) whether the amount the towing company charged was
38 unreasonable; and
39 (2) what constitutes a reasonable charge;
40 based on the facts and circumstances of the complaint.
41 (c) The board shall calculate the amount a towing company
42 overcharged a person using the board's determination required
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1 under subsection (b).
2 (d) If the board determines that a towing company's charges
3 were unreasonable, the board shall issue a report to the attorney
4 general.
5 (e) Upon receipt of a report under subsection (d), the attorney
6 general may issue a fine of:
7 (1) one thousand dollars ($1,000); or
8 (2) two (2) times the amount a towing company overcharged
9 a person as described in subsection (c);
10 whichever is greater.
11 (f) The fines collected under subsection (e) shall be deposited
12 into the state general fund.
2025 IN 1493—LS 7680/DI 151