LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7680 NOTE PREPARED: Jan 10, 2025
BILL NUMBER: HB 1493 BILL AMENDED:
SUBJECT: Regulation of Towing Services.
FIRST AUTHOR: Rep. Criswell BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Towing Complaint Board to review and resolve towing
complaints.
Towing Company Regulations: The bill requires an attestation on invoices of actual towing charges assessed
by a towing company that all equipment billed for was necessary and used. It prohibits certain towing
companies from offering compensation for referrals. The bill also 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.
Law Enforcement: The bill 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.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Towing Complaint Board: Members on the Board are not entitled to
per diem, and the bill is silent on if travel expenses are reimbursable. It is assumed creation of the Board
would only increase the workload of the Attorney General to call Board meetings to hear complaints filed
against towing companies. Increases in workload are expected to be accomplished within existing resource
and funding levels.
To the extent additional resources are necessary, increases in state expenditures could be offset from the
collection of civil penalties levied against towing companies who either (1) violate new prohibitions in the
bill or (2) are found to have overcharged a complainant.
Deceptive Acts: This bill adds to the list of deceptive acts that are actionable by the Attorney General. To
the extent the Attorney General enforces provisions of this bill, agency workload would increase to
investigate and potentially prosecute allegations. Increases in Attorney General workload are within the
routine administrative function of the agency and expected to be accomplished within existing resource and
funding levels.
HB 1493 1 Explanation of State Revenues: Summary - This bill could increase General Fund revenue from civil
penalties levied against towing companies who (1) violate provisions of the bill and (2) overcharge
individuals for towing services. Additionally, the bill could increase state revenue from civil court filing fees.
Total increases in revenue are indeterminable.
Additional Information - Deceptive Acts: The bill adds provisions to existing law in IC 24-14 regulating
towing companies. Violation of these provisions would be punishable as a deceptive act (IC 24-14-10-1).
Specifically, towing companies would be (1) prohibited from paying referrals, (2) required to release
property if an individual pays 50% of towing costs and has filed a complaint with the Towing Complaint
Board, and (3) required to provide an attestation that all equipment billed for was necessary.
Individuals may bring a civil action to enforce these deceptive acts, or the Attorney General can bring an
action to enjoin a deceptive act. For actions filed by private citizens, revenue to the state General Fund from
civil court filing fees will increase. The total revenue per case would range between $100 and $122. The
amount 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
civil, probate, and small claims cases.
For actions filed by the Attorney General where it is determined that an individual knowingly committed a
deceptive act, the Attorney General may recover a civil penalty of $5,000 per violation that would be
deposited in the General Fund. Additionally, if the Attorney General files to enjoin a deceptive act, violation
of an enjoinment is punishable with a maximum $15,000 civil penalty that would be deposited in the General
Fund.
Towing Complaint Board: The bill authorizes the Towing Complaint Board to issue fines to towing
companies for overcharging for services. The bill specifies that fine is the greater of $1,000 or two times the
overcharged amount. Revenue received from fines would be deposited in the General Fund, however total
increases in state revenue from these fines is indeterminable.
Explanation of Local Expenditures: The bill would require law enforcement agencies to periodically
review towing companies used within the scope of their work to ensure (1) rate sheets are reasonable and
(2) there are no fines levied against them by the Towing Review Board. Increases in workload are expected
to be accomplished within existing resource and funding levels.
Explanation of Local Revenues: If additional cases occur, revenue will be collected by certain local units.
If the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive
a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will
receive $37. The following linked document describes the fees and distribution of the revenue: Court fees
imposed in civil, probate, and small claims cases.
State Agencies Affected: Attorney General.
Local Agencies Affected: Courts, law enforcement.
Information Sources:
Fiscal Analyst: Bill Brumbach, 317-232-9559.
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