*HB1493.1*
February 3, 2025
HOUSE BILL No. 1493
_____
DIGEST OF HB 1493 (Updated February 3, 2025 1:13 pm - DI 137)
Citations Affected: IC 5-2; IC 9-22; IC 10-11; IC 24-14.
Synopsis: Regulation of towing services. Requires a local law
enforcement agency to establish a written policy or enter into a contract
for a towing rotation for emergency towing. Requires a towing
company to release property to an owner not later than 24 hours after
partial payment is received for an invoice. Adds requirements for an
itemized invoice provided by a towing company. Requires a towing
company to create a rate sheet. Establishes rates a towing company
may charge for fees for emergency towing or private property towing.
Establishes a towing complaint process and the towing complaint
advisory board.
Effective: July 1, 2025.
Criswell, Pressel, Lehman, Andrade
January 21, 2025, read first time and referred to Committee on Roads and Transportation.
February 3, 2025, amended, reported — Do Pass.
HB 1493—LS 7680/DI 151 February 3, 2025
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,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
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 5-2-26.1 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 26.1. Towing Rotation Requirements
5 Sec. 1. The definitions in IC 24-14-2 apply throughout this
6 chapter.
7 Sec. 2. A local law enforcement agency shall do at least one (1)
8 of the following for emergency towing:
9 (1) Establish a written policy for towing rotations.
10 (2) Enter into a contract.
11 Sec. 3. (a) This section applies to:
12 (1) a written policy established after June 30, 2025; and
13 (2) a contract entered into, amended, or renewed after June
14 30, 2025.
15 (b) A written policy or contract required under section 2 of this
16 chapter must include the following, as applicable:
17 (1) The length of time of the contract between the towing
HB 1493—LS 7680/DI 151 2
1 company and the local law enforcement agency, including
2 renewal periods.
3 (2) Rates for all services, including standby rates.
4 (3) Rates for storage and the timing for when storage charges
5 begin.
6 (4) The allowable administrative fee for each service and
7 when the fee is applicable.
8 (5) Truck and equipment requirements.
9 (6) Availability of a towing company to respond to calls.
10 (7) Response time requirements.
11 (8) Storage lot requirements.
12 (9) Availability for the owner to pick up the vehicle, including
13 after hours.
14 (10) Access to personal belongings in a vehicle that is in
15 storage.
16 (11) Markup percentages for items or services provided by
17 third parties.
18 (12) A provision that allows the local law enforcement agency
19 to suspend or remove a towing company that violates the
20 written policy.
21 (13) A prohibition on charging fees that are not listed under
22 the written policy or contract.
23 Sec. 4. A local law enforcement agency may not use a towing
24 company that charges unreasonable fees as part of its towing
25 rotation. A local law enforcement agency must perform a periodic
26 review of a towing company's rates for reasonableness.
27 Sec. 5. A contract required under section 2 of this chapter may
28 not include a minimum number of hours for a towing service to be
29 invoiced.
30 SECTION 2. IC 9-22-1-8, AS AMENDED BY P.L.281-2019,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 8. (a) Subject to subsection (b), If the properly
33 identified person who owns or holds a lien on a vehicle appears at the
34 site of storage before disposal of the vehicle or parts and pays all costs
35 relating to a tow, the storage of the vehicle, and all allowable fees, as
36 applicable, the vehicle or parts shall be released.
37 (b) A towing service or storage yard may not charge an inspection
38 fee to an owner, a lienholder, or an insurance company representative
39 to inspect a vehicle or retrieve items from the vehicle. A fee under this
40 subsection must be refunded if the costs relating to a tow, the storage
41 of the vehicle, and all allowable fees, as applicable, are paid under
42 subsection (a).
HB 1493—LS 7680/DI 151 3
1 (c) A towing service or storage yard must accept payment made by
2 any of the following means from a person seeking to release a vehicle
3 under this section:
4 (1) Cash.
5 (2) Certified check.
6 (3) Insurance check.
7 (4) Money order.
8 A towing service or storage facility may elect to accept payment by
9 means of a credit card or debit card.
10 (d) Upon receiving payment of all costs relating to a tow, the storage
11 of a vehicle, and all allowable fees, as applicable, a towing service or
12 storage yard shall provide to the person making payment an itemized
13 receipt that includes the information set forth in IC 24-14-5, to the
14 extent the information is known or available.
15 (e) A towing service or storage yard must be open for business and
16 accessible by telephone during regular office hours. A towing service
17 or storage yard must provide a telephone number that is available on a
18 twenty-four (24) hour basis to receive calls and messages from callers,
19 including calls made outside of regular office hours. All calls made to
20 a towing service or storage yard must be returned within twenty-four
21 (24) hours from the time received. However, if adverse weather, an act
22 of God, or an emergency situation over which the towing service or
23 storage yard has no control prevents the towing service or storage yard
24 from returning calls within twenty-four (24) hours, the towing service
25 or storage yard shall return all calls received as quickly as possible.
26 (f) A towing service or storage yard shall, if required, notify the
27 appropriate public agency of all releases under this section. The
28 notification must include:
29 (1) the name and address of:
30 (A) the person that owns or holds a lien on the vehicle; and
31 (B) the insurance company that insures the vehicle, if the
32 vehicle was released to a representative of the insurance
33 company;
34 (2) the signature of the individual to whom the vehicle was
35 released;
36 (3) a description of the vehicle or parts;
37 (4) costs paid; and
38 (5) the date of release.
39 (g) A towing company shall release property to an owner or an
40 owner's designee not later than twenty-four (24) hours after the
41 towing company's receipt of:
42 (1) payment of fifty percent (50%) of the amount of the
HB 1493—LS 7680/DI 151 4
1 invoice; and
2 (2) a copy of a towing complaint filed with the attorney
3 general under IC 24-14-11 that includes the amount of the
4 bond obtained by the owner for the remainder of the amount
5 of the invoice.
6 SECTION 3. IC 9-22-1-16, AS AMENDED BY P.L.262-2013,
7 SECTION 105, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2025]: Sec. 16. (a) If after twenty-four (24)
9 hours the person who owns a vehicle believed to be abandoned on
10 private property has not removed the vehicle from the private property,
11 the person who owns or controls the private property on which the
12 vehicle is believed to be abandoned may have the vehicle towed from
13 the private property.
14 (b) Notwithstanding subsection (a), in an emergency situation a
15 vehicle believed to be abandoned on private property may be removed
16 immediately. As used in this subsection, "emergency situation" means
17 that the presence of the vehicle believed to be abandoned interferes
18 physically with the conduct of normal business operations of the person
19 who owns or controls the private property or poses a threat to the safety
20 or security of persons or property, or both.
21 (c) A person who owns or controls the private property must
22 have a contract with a towing company to tow under this section.
23 For contracts entered into, amended, or renewed after June 30,
24 2025, the contract must include the following:
25 (1) Rates for removal.
26 (2) Rates for storage.
27 (3) Any fees that are permitted.
28 (4) Location and telephone number of the private property.
29 (5) Hours that a vehicle may be picked up.
30 SECTION 4. IC 10-11-2-35.4 IS ADDED TO THE INDIANA
31 CODE AS A NEW SECTION TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2025]: Sec. 35.4. The state police department
33 shall review its rate sheet for towing service not less than one (1)
34 time per calendar year.
35 SECTION 5. IC 24-14-2-3.8 IS ADDED TO THE INDIANA CODE
36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
37 1, 2025]: Sec. 3.8. "Compensation" means any money, thing of
38 value, or economic benefit conferred on, or received by, a person
39 in return for services rendered, or for services to be rendered,
40 whether by that person or another person.
41 SECTION 6. IC 24-14-2-12.3 IS ADDED TO THE INDIANA
42 CODE AS A NEW SECTION TO READ AS FOLLOWS
HB 1493—LS 7680/DI 151 5
1 [EFFECTIVE JULY 1, 2025]: Sec. 12.3. "Property", for purposes of
2 IC 24-14-7, has the meaning set forth in IC 24-14-7-3.
3 SECTION 7. IC 24-14-5-1, AS ADDED BY P.L.281-2019,
4 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 1. (a) An itemized invoice of actual towing
6 charges assessed by a towing company shall be made available to the
7 owner of the motor vehicle or the owner's agent not later than one (1)
8 business day after:
9 (1) the tow is completed; or
10 (2) the towing company has obtained all necessary information to
11 be included on the invoice, including any charges submitted by
12 subcontractors used by the towing company to complete the tow
13 and recovery.
14 (b) The itemized invoice required by this section must contain the
15 following information:
16 (1) The location from which the motor vehicle was towed.
17 (2) The location to which the motor vehicle was towed.
18 (3) The name, address, and telephone number of the towing
19 company.
20 (4) A description of the towed motor vehicle, including the:
21 (A) make;
22 (B) model;
23 (C) year; and
24 (D) vehicle identification number;
25 of the motor vehicle.
26 (5) The license plate number and state of registration for the
27 towed motor vehicle.
28 (6) The cost of the original towing service.
29 (7) The cost of any vehicle storage fees, expressed as a daily rate.
30 (8) Other fees, including documentation fees and motor vehicle
31 search fees. Each fee must include a full description of the
32 services that were provided.
33 (9) The costs for services that were performed under a warranty
34 or that were otherwise performed at no cost to the owner of the
35 motor vehicle.
36 (10) An attestation that all items invoiced were used and
37 necessary in the ordinary course of business.
38 (11) The time that each invoiced item was used and the
39 location.
40 (12) The number of miles the vehicle was towed.
41 (c) Any service or fee in addition to the services or fees described
42 in subsection (b)(6), (b)(7), or (b)(8) must be set forth individually as
HB 1493—LS 7680/DI 151 6
1 a single line item on the invoice required by this section, with an
2 explanation and the exact charge for the service or the exact amount of
3 the fee.
4 (d) A copy of each invoice and receipt submitted by a tow truck
5 operator in accordance with this section shall:
6 (1) be retained by the towing company for a period of two (2)
7 years from the date of issuance; and
8 (2) throughout the two (2) year period described in subdivision
9 (1), be made available for inspection and copying not later than
10 forty-eight (48) hours after receiving a written request for
11 inspection from:
12 (A) a law enforcement agency;
13 (B) the attorney general;
14 (C) the prosecuting attorney or city attorney having
15 jurisdiction in the location of any of the towing company's
16 Indiana business locations;
17 (D) the disabled motor vehicle's owner; or
18 (E) the agent of the disabled motor vehicle's owner.
19 SECTION 8. IC 24-14-5-2 IS ADDED TO THE INDIANA CODE
20 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
21 1, 2025]: Sec. 2. (a) A towing company that provides towing and
22 storage services under this article must create a rate sheet that
23 includes the cost and charging rate, if applicable, for the following
24 services:
25 (1) Any tow provided by the towing company.
26 (2) Any clean-up service provided by the towing company.
27 (3) Any labor or storage charge assessed by the towing
28 company.
29 (4) Any other additional fee or surcharge reasonably related
30 to the tow.
31 A rate sheet may not include any charges for administrative or
32 inspection fees. A towing company may not charge an
33 administrative or inspection fee.
34 (b) A rate sheet described in subsection (a) shall be:
35 (1) conspicuously displayed at each towing company's place
36 of business; and
37 (2) provided to any customer or patron upon request.
38 (c) If the owner of a vehicle is present at the time of the tow, a
39 tow truck operator must provide the owner of the vehicle with the
40 rate sheet described in subsection (a) prior to attaching the vehicle
41 to the tow truck.
42 (d) Assessing a cost or charging a rate in excess of the applicable
HB 1493—LS 7680/DI 151 7
1 cost or charging rate displayed on a rate sheet described in
2 subsection (a) constitutes a deceptive act (as defined in
3 IC 24-14-10-1).
4 SECTION 9. IC 24-14-5-3 IS ADDED TO THE INDIANA CODE
5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
6 1, 2025]: Sec. 3. A towing company may charge fees for emergency
7 towing and private property towing as follows:
8 (1) If the towing service is an emergency towing requested by
9 the state police department and the towing company has filed
10 its rates to be part of the state police department's towing
11 rotation, at the rate provided to the state police department.
12 (2) If the towing service is an emergency towing requested by
13 a local law enforcement agency and the local law enforcement
14 agency has set rates, at the rate of the local law enforcement
15 agency.
16 (3) If the towing service is an emergency towing requested by
17 a local law enforcement agency and the local law enforcement
18 agency does not have set rates, at the following rates:
19 (A) The rate the towing company provides to the state
20 police department district in which the tow occurs.
21 (B) If the towing company does not have rates filed with
22 the state police department district in which the tow
23 occurs, then a rate that is not more than the state police
24 department district's towing and storage agreements.
25 (4) If the towing service is a private property towing
26 requested by a property owner, at the rate applicable under
27 subdivision (2) or (3).
28 SECTION 10. IC 24-14-7-3 IS ADDED TO THE INDIANA CODE
29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
30 1, 2025]: Sec. 3. (a) As used in this section, "property" means any
31 of the following:
32 (1) A truck (as defined in IC 9-13-2-188).
33 (2) A trailer (as defined in IC 9-13-2-184).
34 (3) Cargo.
35 (b) A person may file a complaint with the towing complaint
36 advisory board under IC 24-14-11.5 if the person:
37 (1) owns or holds a lien on property held at a towing company
38 or storage facility; and
39 (2) believes the charges relating to a tow or the storage of the
40 property are unreasonable.
41 (c) Not later than twenty-four (24) hours after receipt of:
42 (1) fifty percent (50%) of the amount charged; and
HB 1493—LS 7680/DI 151 8
1 (2) a copy of a complaint filed with the towing complaint
2 advisory board under IC 24-14-11.5;
3 a towing company or storage facility shall release all property to
4 a properly identified person who owns or holds a lien on the
5 property.
6 SECTION 11. IC 24-14-8-3, AS ADDED BY P.L.281-2019,
7 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 3. Upon demand, a towing company or storage
9 facility shall furnish a copy of the invoice described in IC 24-14-5 and
10 all supporting documentation, including payroll records and copies
11 of invoices from third parties that are included on the invoice, to a
12 local law enforcement agency or the office of the attorney general.
13 SECTION 12. IC 24-14-9-1, AS ADDED BY P.L.281-2019,
14 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 1. A towing company shall not do any of the
16 following:
17 (1) Falsely represent, either expressly or by implication, that the
18 towing company represents or is approved by any organization
19 that provides emergency road service for disabled motor vehicles.
20 (2) Require the owner or operator of a disabled motor vehicle to
21 preauthorize:
22 (A) repair work; or
23 (B) more than twenty-four (24) hours of storage;
24 as a condition for providing towing service for the disabled motor
25 vehicle.
26 (3) Charge more than one (1) towing fee when the owner or
27 operator of a disabled motor vehicle requests that the disabled
28 motor vehicle be towed to a repair facility owned or operated by
29 the towing company.
30 (4) Tow a motor vehicle to a repair facility unless:
31 (A) either:
32 (i) the owner of the motor vehicle; or
33 (ii) the owner's designated representative;
34 gives consent for the motor vehicle to be towed to the repair
35 facility; and
36 (B) the consent described in clause (A) is given before the
37 motor vehicle is removed from the location from which it is to
38 be towed.
39 The prohibition set forth in this subdivision does not apply in any
40 case in which a towing company tows a motor vehicle to a storage
41 facility that includes a repair facility on the same site.
42 (5) Offer or provide compensation to a person for a towing
HB 1493—LS 7680/DI 151 9
1 referral unless the person and towing company have a prior
2 contract.
3 SECTION 13. IC 24-14-9-2, AS ADDED BY P.L.281-2019,
4 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 2. A towing company or a storage facility shall not
6 do any of the following:
7 (1) Upon payment of all costs relating to a tow, motor vehicle
8 storage, and all allowable fees, as applicable, refuse to release the
9 motor vehicle during regular office hours to a properly identified
10 person who owns or holds a lien on the motor vehicle in
11 accordance with the procedures and subject to the same
12 requirements set forth in IC 9-22-1-8 with respect to abandoned
13 motor vehicles. However, a towing company or storage facility
14 shall not release a motor vehicle in any case in which a local law
15 enforcement agency has ordered the motor vehicle not to be
16 released, or in any case in which the motor vehicle cannot be
17 released because of pending litigation.
18 (2) Refuse to permit:
19 (A) a properly identified person who owns or holds a lien on
20 a motor vehicle; or
21 (B) a representative of the insurance company that insures the
22 motor vehicle, if the vehicle is covered by an active policy of
23 insurance;
24 to inspect the motor vehicle during regular office hours before all
25 costs incurred against the motor vehicle are paid or the motor
26 vehicle is released. An inspection fee may not be charged for an
27 inspection that occurs during regular office hours.
28 (3) Charge any storage fee for a stored motor vehicle with respect
29 to any day on which:
30 (A) release of the motor vehicle; or
31 (B) inspection of the motor vehicle by the owner, lienholder,
32 or insurance company;
33 is not permitted during regular office hours by the towing
34 company or storage facility.
35 (4) Offer to provide compensation to a person for a referral
36 unless the person and the towing company or storage facility
37 have an executed contract in place.
38 (5) Charge more than the fees that are included in a towing
39 agreement or contract with the law enforcement agency that
40 ordered the tow or the contract with the private property
41 owner that ordered the tow under IC 9-22-1.
42 SECTION 14. IC 24-14-11 IS ADDED TO THE INDIANA CODE
HB 1493—LS 7680/DI 151 10
1 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]:
3 Chapter 11. Towing Complaints
4 Sec. 1. As used in this chapter, "complainant" means a person
5 who files a towing complaint under this chapter.
6 Sec. 2. As used in this chapter, "towing complaint" means a
7 written complaint related to towing fees.
8 Sec. 3. Not later than December 1, 2025, the attorney general
9 shall create a form that may be used by a consumer to submit a
10 towing complaint to the attorney general.
11 Sec. 4. If the attorney general receives a towing complaint
12 regarding a towing invoice that is greater than:
13 (1) for a vehicle weighing less than twenty-six thousand
14 (26,000) pounds, five hundred dollars ($500); or
15 (2) for a vehicle weighing twenty-six thousand (26,000) pounds
16 or more, five thousand dollars ($5,000);
17 the attorney general shall follow the procedure set forth in section
18 5 of this chapter.
19 Sec. 5. Upon the attorney general's receipt of a towing complaint
20 that meets the requirements of section 4 of this chapter, the
21 attorney general shall do the following:
22 (1) Direct the complainant to remit payment of fifty percent
23 (50%) of the invoiced amount to the towing company and
24 obtain a bond in the amount of fifty percent (50%) of the
25 invoiced amount.
26 (2) Once the complainant has provided evidence of the
27 complainant's compliance with subdivision (1), forward a
28 copy of the towing complaint to the towing complaint
29 advisory board established by IC 24-14-11.5-3 and the towing
30 company.
31 SECTION 15. IC 24-14-11.5 IS ADDED TO THE INDIANA
32 CODE AS A NEW CHAPTER TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2025]:
34 Chapter 11.5. Towing Complaint Advisory Board
35 Sec. 1. As used in this chapter, "advisory board" means the
36 towing complaint advisory board established by section 3 of this
37 chapter.
38 Sec. 2. As used in this chapter, "towing complaint" means a
39 written complaint related to towing fees that is forwarded by the
40 attorney general to the advisory board.
41 Sec. 3. The towing complaint advisory board is established as a
42 continuing board under the executive branch of state government
HB 1493—LS 7680/DI 151 11
1 for the purpose of advising the attorney general regarding towing
2 complaints. The attorney general shall administer the advisory
3 board.
4 Sec. 4. (a) The advisory board consists of the following seven (7)
5 members, all appointed by the governor:
6 (1) One (1) member who represents the consumer.
7 (2) One (1) member who has broad experience in the towing
8 industry.
9 (3) One (1) member who has broad experience in the trucking
10 industry.
11 (4) One (1) member who has broad experience in the
12 insurance industry.
13 (5) One (1) member from the state police department.
14 (6) One (1) member who has broad experience in the banking
15 industry.
16 (7) One (1) member who has experience in the car sales
17 industry.
18 (b) All members are voting members.
19 (c) The member appointed under subsection (a)(1) shall serve as
20 the advisory board chair.
21 Sec. 5. (a) Members of the advisory board serve a four (4) year
22 term that ends June 30 of each odd-numbered year but may be
23 reappointed to subsequent terms. Members serve at the will of the
24 appointing authority who appointed the member
25 (b) If a vacancy occurs, the appointing authority who appointed
26 the member whose position is vacant shall appoint an individual to
27 fill the vacancy. An appointment to fill a vacancy occurring before
28 the expiration of a term is for the remainder of the unexpired term.
29 Sec. 6. A member of the advisory board who is not a state
30 employee is not entitled to the minimum salary per diem provided
31 by IC 4-10-11-2.1(b). The member is, however, entitled to
32 reimbursement for mileage and traveling expenses as provided
33 under IC 4-13-1-4 and other expenses actually incurred in
34 connection with the member's duties as provided in the state
35 policies and procedures established by the Indiana department of
36 administration and approved by the budget agency.
37 Sec. 7. (a) Four (4) members of the advisory board constitute a
38 quorum.
39 (b) The affirmative vote of at least four (4) members of the
40 advisory board is required for the advisory board to take any
41 official action.
42 (c) The advisory board shall meet at the call of the advisory
HB 1493—LS 7680/DI 151 12
1 board chair.
2 Sec. 8. (a) The attorney general shall staff the advisory board.
3 (b) The expenses of the advisory board shall be paid from funds
4 appropriated to the attorney general.
5 Sec. 9. (a) The advisory board shall establish procedures for
6 reviewing and resolving towing complaints.
7 (b) Upon receipt of a towing complaint, the advisory board shall
8 give notice to the towing company against whom the towing
9 complaint is directed and the advisory board shall provide
10 information about the reconsideration process.
11 Sec. 10. (a) The advisory board shall review a towing complaint
12 not later than thirty (30) days after receiving the complaint from
13 the attorney general and issue a determination not later than
14 fifteen (15) days after the advisory board's review.
15 (b) In reviewing a towing complaint received under subsection
16 (a), the advisory board shall determine:
17 (1) whether the amount the towing company charged was
18 unreasonable; and
19 (2) what constitutes a reasonable charge;
20 based on the facts and circumstances of the towing complaint.
21 (c) The advisory board shall calculate the amount a towing
22 company overcharged a person using the advisory board's
23 determination required under subsection (b).
24 (d) The advisory board shall advise the attorney general of the
25 advisory board's determination. The attorney general shall then
26 take action to ensure the remittance of payment accordingly.
HB 1493—LS 7680/DI 151 13
COMMITTEE REPORT
Mr. Speaker: Your Committee on Roads and Transportation, to
which was referred House Bill 1493, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 5-2-26.1 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 26.1. Towing Rotation Requirements
Sec. 1. The definitions in IC 24-14-2 apply throughout this
chapter.
Sec. 2. A local law enforcement agency shall do at least one (1)
of the following for emergency towing:
(1) Establish a written policy for towing rotations.
(2) Enter into a contract.
Sec. 3. (a) This section applies to:
(1) a written policy established after June 30, 2025; and
(2) a contract entered into, amended, or renewed after June
30, 2025.
(b) A written policy or contract required under section 2 of this
chapter must include the following, as applicable:
(1) The length of time of the contract between the towing
company and the local law enforcement agency, including
renewal periods.
(2) Rates for all services, including standby rates.
(3) Rates for storage and the timing for when storage charges
begin.
(4) The allowable administrative fee for each service and
when the fee is applicable.
(5) Truck and equipment requirements.
(6) Availability of a towing company to respond to calls.
(7) Response time requirements.
(8) Storage lot requirements.
(9) Availability for the owner to pick up the vehicle, including
after hours.
(10) Access to personal belongings in a vehicle that is in
storage.
(11) Markup percentages for items or services provided by
third parties.
(12) A provision that allows the local law enforcement agency
HB 1493—LS 7680/DI 151 14
to suspend or remove a towing company that violates the
written policy.
(13) A prohibition on charging fees that are not listed under
the written policy or contract.
Sec. 4. A local law enforcement agency may not use a towing
company that charges unreasonable fees as part of its towing
rotation. A local law enforcement agency must perform a periodic
review of a towing company's rates for reasonableness.
Sec. 5. A contract required under section 2 of this chapter may
not include a minimum number of hours for a towing service to be
invoiced.
SECTION 2. IC 9-22-1-8, AS AMENDED BY P.L.281-2019,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8. (a) Subject to subsection (b), If the properly
identified person who owns or holds a lien on a vehicle appears at the
site of storage before disposal of the vehicle or parts and pays all costs
relating to a tow, the storage of the vehicle, and all allowable fees, as
applicable, the vehicle or parts shall be released.
(b) A towing service or storage yard may not charge an inspection
fee to an owner, a lienholder, or an insurance company representative
to inspect a vehicle or retrieve items from the vehicle. A fee under this
subsection must be refunded if the costs relating to a tow, the storage
of the vehicle, and all allowable fees, as applicable, are paid under
subsection (a).
(c) A towing service or storage yard must accept payment made by
any of the following means from a person seeking to release a vehicle
under this section:
(1) Cash.
(2) Certified check.
(3) Insurance check.
(4) Money order.
A towing service or storage facility may elect to accept payment by
means of a credit card or debit card.
(d) Upon receiving payment of all costs relating to a tow, the storage
of a vehicle, and all allowable fees, as applicable, a towing service or
storage yard shall provide to the person making payment an itemized
receipt that includes the information set forth in IC 24-14-5, to the
extent the information is known or available.
(e) A towing service or storage yard must be open for business and
accessible by telephone during regular office hours. A towing service
or storage yard must provide a telephone number that is available on a
twenty-four (24) hour basis to receive calls and messages from callers,
HB 1493—LS 7680/DI 151 15
including calls made outside of regular office hours. All calls made to
a towing service or storage yard must be returned within twenty-four
(24) hours from the time received. However, if adverse weather, an act
of God, or an emergency situation over which the towing service or
storage yard has no control prevents the towing service or storage yard
from returning calls within twenty-four (24) hours, the towing service
or storage yard shall return all calls received as quickly as possible.
(f) A towing service or storage yard shall, if required, notify the
appropriate public agency of all releases under this section. The
notification must include:
(1) the name and address of:
(A) the person that owns or holds a lien on the vehicle; and
(B) the insurance company that insures the vehicle, if the
vehicle was released to a representative of the insurance
company;
(2) the signature of the individual to whom the vehicle was
released;
(3) a description of the vehicle or parts;
(4) costs paid; and
(5) the date of release.
(g) A towing company shall release property to an owner or an
owner's designee not later than twenty-four (24) hours after the
towing company's receipt of:
(1) payment of fifty percent (50%) of the amount of the
invoice; and
(2) a copy of a towing complaint filed with the attorney
general under IC 24-14-11 that includes the amount of the
bond obtained by the owner for the remainder of the amount
of the invoice.
SECTION 3. IC 9-22-1-16, AS AMENDED BY P.L.262-2013,
SECTION 105, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 16. (a) If after twenty-four (24)
hours the person who owns a vehicle believed to be abandoned on
private property has not removed the vehicle from the private property,
the person who owns or controls the private property on which the
vehicle is believed to be abandoned may have the vehicle towed from
the private property.
(b) Notwithstanding subsection (a), in an emergency situation a
vehicle believed to be abandoned on private property may be removed
immediately. As used in this subsection, "emergency situation" means
that the presence of the vehicle believed to be abandoned interferes
physically with the conduct of normal business operations of the person
HB 1493—LS 7680/DI 151 16
who owns or controls the private property or poses a threat to the safety
or security of persons or property, or both.
(c) A person who owns or controls the private property must
have a contract with a towing company to tow under this section.
For contracts entered into, amended, or renewed after June 30,
2025, the contract must include the following:
(1) Rates for removal.
(2) Rates for storage.
(3) Any fees that are permitted.
(4) Location and telephone number of the private property.
(5) Hours that a vehicle may be picked up.
SECTION 4. IC 10-11-2-35.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 35.4. The state police department
shall review its rate sheet for towing service not less than one (1)
time per calendar year.".
Page 2, line 22, after "." insert "Each fee must include a full
description of the services that were provided.".
Page 2, delete lines 26 through 27, begin a new line block indented
and insert:
"(10) An attestation that all items invoiced were used and
necessary in the ordinary course of business.
(11) The time that each invoiced item was used and the
location.
(12) The number of miles the vehicle was towed.".
Page 3, delete lines 6 through 21, begin a new paragraph and insert:
"SECTION 8. IC 24-14-5-2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 2. (a) A towing company that provides towing and
storage services under this article must create a rate sheet that
includes the cost and charging rate, if applicable, for the following
services:
(1) Any tow provided by the towing company.
(2) Any clean-up service provided by the towing company.
(3) Any labor or storage charge assessed by the towing
company.
(4) Any other additional fee or surcharge reasonably related
to the tow.
A rate sheet may not include any charges for administrative or
inspection fees. A towing company may not charge an
administrative or inspection fee.
(b) A rate sheet described in subsection (a) shall be:
HB 1493—LS 7680/DI 151 17
(1) conspicuously displayed at each towing company's place
of business; and
(2) provided to any customer or patron upon request.
(c) If the owner of a vehicle is present at the time of the tow, a
tow truck operator must provide the owner of the vehicle with the
rate sheet described in subsection (a) prior to attaching the vehicle
to the tow truck.
(d) Assessing a cost or charging a rate in excess of the applicable
cost or charging rate displayed on a rate sheet described in
subsection (a) constitutes a deceptive act (as defined in
IC 24-14-10-1).
SECTION 9. IC 24-14-5-3 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 3. A towing company may charge fees for emergency
towing and private property towing as follows:
(1) If the towing service is an emergency towing requested by
the state police department and the towing company has filed
its rates to be part of the state police department's towing
rotation, at the rate provided to the state police department.
(2) If the towing service is an emergency towing requested by
a local law enforcement agency and the local law enforcement
agency has set rates, at the rate of the local law enforcement
agency.
(3) If the towing service is an emergency towing requested by
a local law enforcement agency and the local law enforcement
agency does not have set rates, at the following rates:
(A) The rate the towing company provides to the state
police department district in which the tow occurs.
(B) If the towing company does not have rates filed with
the state police department district in which the tow
occurs, then a rate that is not more than the state police
department district's towing and storage agreements.
(4) If the towing service is a private property towing
requested by a property owner, at the rate applicable under
subdivision (2) or (3).".
Page 3, line 30, delete "board under IC 24-14-11" and insert
"advisory board under IC 24-14-11.5".
Page 3, line 38, delete "board" and insert "advisory board".
Page 3, line 38, delete "IC 24-14-11" and insert "IC 24-14-11.5".
Page 3, between lines 41 and 42, begin a new paragraph and insert:
"SECTION 11. IC 24-14-8-3, AS ADDED BY P.L.281-2019,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
HB 1493—LS 7680/DI 151 18
JULY 1, 2025]: Sec. 3. Upon demand, a towing company or storage
facility shall furnish a copy of the invoice described in IC 24-14-5 and
all supporting documentation, including payroll records and copies
of invoices from third parties that are included on the invoice, to a
local law enforcement agency or the office of the attorney general.".
Page 4, delete lines 32 through 42, begin a new paragraph and
insert:
"SECTION 14. IC 24-14-9-2, AS ADDED BY P.L.281-2019,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. A towing company or a storage facility shall not
do any of the following:
(1) Upon payment of all costs relating to a tow, motor vehicle
storage, and all allowable fees, as applicable, refuse to release the
motor vehicle during regular office hours to a properly identified
person who owns or holds a lien on the motor vehicle in
accordance with the procedures and subject to the same
requirements set forth in IC 9-22-1-8 with respect to abandoned
motor vehicles. However, a towing company or storage facility
shall not release a motor vehicle in any case in which a local law
enforcement agency has ordered the motor vehicle not to be
released, or in any case in which the motor vehicle cannot be
released because of pending litigation.
(2) Refuse to permit:
(A) a properly identified person who owns or holds a lien on
a motor vehicle; or
(B) a representative of the insurance company that insures the
motor vehicle, if the vehicle is covered by an active policy of
insurance;
to inspect the motor vehicle during regular office hours before all
costs incurred against the motor vehicle are paid or the motor
vehicle is released. An inspection fee may not be charged for an
inspection that occurs during regular office hours.
(3) Charge any storage fee for a stored motor vehicle with respect
to any day on which:
(A) release of the motor vehicle; or
(B) inspection of the motor vehicle by the owner, lienholder,
or insurance company;
is not permitted during regular office hours by the towing
company or storage facility.
(4) Offer to provide compensation to a person for a referral
unless the person and the towing company or storage facility
have an executed contract in place.
HB 1493—LS 7680/DI 151 19
(5) Charge more than the fees that are included in a towing
agreement or contract with the law enforcement agency that
ordered the tow or the contract with the private property
owner that ordered the tow under IC 9-22-1.
SECTION 15. IC 24-14-11 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 11. Towing Complaints
Sec. 1. As used in this chapter, "complainant" means a person
who files a towing complaint under this chapter.
Sec. 2. As used in this chapter, "towing complaint" means a
written complaint related to towing fees.
Sec. 3. Not later than December 1, 2025, the attorney general
shall create a form that may be used by a consumer to submit a
towing complaint to the attorney general.
Sec. 4. If the attorney general receives a towing complaint
regarding a towing invoice that is greater than:
(1) for a vehicle weighing less than twenty-six thousand
(26,000) pounds, five hundred dollars ($500); or
(2) for a vehicle weighing twenty-six thousand (26,000) pounds
or more, five thousand dollars ($5,000);
the attorney general shall follow the procedure set forth in section
5 of this chapter.
Sec. 5. Upon the attorney general's receipt of a towing complaint
that meets the requirements of section 4 of this chapter, the
attorney general shall do the following:
(1) Direct the complainant to remit payment of fifty percent
(50%) of the invoiced amount to the towing company and
obtain a bond in the amount of fifty percent (50%) of the
invoiced amount.
(2) Once the complainant has provided evidence of the
complainant's compliance with subdivision (1), forward a
copy of the towing complaint to the towing complaint
advisory board established by IC 24-14-11.5-3 and the towing
company.
SECTION 16. IC 24-14-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]:
Chapter 11.5. Towing Complaint Advisory Board
Sec. 1. As used in this chapter, "advisory board" means the
towing complaint advisory board established by section 3 of this
chapter.
HB 1493—LS 7680/DI 151 20
Sec. 2. As used in this chapter, "towing complaint" means a
written complaint related to towing fees that is forwarded by the
attorney general to the advisory board.
Sec. 3. The towing complaint advisory board is established as a
continuing board under the executive branch of state government
for the purpose of advising the attorney general regarding towing
complaints. The attorney general shall administer the advisory
board.
Sec. 4. (a) The advisory board consists of the following seven (7)
members, all appointed by the governor:
(1) One (1) member who represents the consumer.
(2) One (1) member who has broad experience in the towing
industry.
(3) One (1) member who has broad experience in the trucking
industry.
(4) One (1) member who has broad experience in the
insurance industry.
(5) One (1) member from the state police department.
(6) One (1) member who has broad experience in the banking
industry.
(7) One (1) member who has experience in the car sales
industry.
(b) All members are voting members.
(c) The member appointed under subsection (a)(1) shall serve as
the advisory board chair.
Sec. 5. (a) Members of the advisory board serve a four (4) year
term that ends June 30 of each odd-numbered year but may be
reappointed to subsequent terms. Members serve at the will of the
appointing authority who appointed the member
(b) If a vacancy occurs, the appointing authority who appointed
the member whose position is vacant shall appoint an individual to
fill the vacancy. An appointment to fill a vacancy occurring before
the expiration of a term is for the remainder of the unexpired term.
Sec. 6. A member of the advisory board who is not a state
employee is not entitled to the minimum salary per diem provided
by IC 4-10-11-2.1(b). The member is, however, entitled to
reimbursement for mileage and traveling expenses as provided
under IC 4-13-1-4 and other expenses actually incurred in
connection with the member's duties as provided in the state
policies and procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 7. (a) Four (4) members of the advisory board constitute a
HB 1493—LS 7680/DI 151 21
quorum.
(b) The affirmative vote of at least four (4) members of the
advisory board is required for the advisory board to take any
official action.
(c) The advisory board shall meet at the call of the advisory
board chair.
Sec. 8. (a) The attorney general shall staff the advisory board.
(b) The expenses of the advisory board shall be paid from funds
appropriated to the attorney general.
Sec. 9. (a) The advisory board shall establish procedures for
reviewing and resolving towing complaints.
(b) Upon receipt of a towing complaint, the advisory board shall
give notice to the towing company against whom the towing
complaint is directed and the advisory board shall provide
information about the reconsideration process.
Sec. 10. (a) The advisory board shall review a towing complaint
not later than thirty (30) days after receiving the complaint from
the attorney general and issue a determination not later than
fifteen (15) days after the advisory board's review.
(b) In reviewing a towing complaint received under subsection
(a), the advisory board shall determine:
(1) whether the amount the towing company charged was
unreasonable; and
(2) what constitutes a reasonable charge;
based on the facts and circumstances of the towing complaint.
(c) The advisory board shall calculate the amount a towing
company overcharged a person using the advisory board's
determination required under subsection (b).
(d) The advisory board shall advise the attorney general of the
advisory board's determination. The attorney general shall then
take action to ensure the remittance of payment accordingly.".
Delete pages 5 through 6.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1493 as introduced.)
PRESSEL
Committee Vote: yeas 10, nays 0.
HB 1493—LS 7680/DI 151