LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7680 NOTE PREPARED: Feb 3, 2025
BILL NUMBER: HB 1493 BILL AMENDED: Feb 3, 2025
SUBJECT: Regulation of Towing Services.
FIRST AUTHOR: Rep. Criswell BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill requires a local law enforcement agency to establish a
written policy or enter into a contract for a towing rotation for emergency towing.
The bill requires a towing company to release property to an owner not later than 24 hours after partial
payment is received for an invoice. It also adds requirements for an itemized invoice provided by a towing
company. The bill requires a towing company to create a rate sheet. It also establishes rates a towing
company may charge for fees for emergency towing or private property towing. The bill establishes a towing
complaint process and the Towing Complaint Advisory Board.
Effective Date: July 1, 2025.
Explanation of State Expenditures: (Revised) Towing Complaints: The bill requires the Attorney General
to create a form to allow individuals to submit complaints against towing service providers by December 1,
2025. These complaints would initiate a towing complaint process, which is to be executed by the Attorney
General. Currently, the Attorney General provides oversight of consumer complaints filed against towing
service providers in the state. Increases in workload are expected to be minimal.
(Revised) Towing Complaint Advisory Board: The bill creates a 7-member advisory board under the purview
of the Governor, but to be administered by the Attorney General. Members on the Board are not entitled to
per diem, but state expenditures could increase to provide travel reimbursement for Board members. It is
assumed creation of the Advisory 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
HB 1493 1 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.
Explanation of State Revenues: (Revised) Summary - This bill could increase General Fund revenue from
civil penalties levied against towing companies who violate provisions of the bill. Additionally, the bill could
increase state revenue from civil court filing fees. Total increases in revenue are indeterminable.
(Revised) Additional Information - The bill specifies that a towing service provider shall release property
if an individual pays 50% of towing costs, but is silent as to any means of enforcement if a towing service
provider does not meet this requirement.
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 create, display at all business locations, and
provide rate sheets to a vehicle owner, 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.
Explanation of Local Expenditures: (Revised) The bill would (1) require law enforcement agencies to
rotate towing service providers and perform a review of towing service providers’ rates, and (2) prohibits
law enforcement from using towing service providers who charge unreasonable fees. 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:
HB 1493 2 Fiscal Analyst: Bill Brumbach, 317-232-9559.
HB 1493 3