LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6399 NOTE PREPARED: Apr 3, 2025
BILL NUMBER: SB 73 BILL AMENDED: Apr 3, 2025
SUBJECT: Consumer Affairs Matters.
FIRST AUTHOR: Sen. Dernulc BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Rep. Pressel
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill amends the definition of "motor vehicle" for purposes of
dealer services provisions governing unfair practices and the succession to franchise by designated family
members. It also specifies that the requirement that a dealer have an established place of business does not
apply to a dealer selling trailers, unless the dealer is required to be licensed for an other purpose. The bill
provides that a dealer selling trailers does not have to file certain information with the Secretary of State.
The bill prohibits a person from advertising: (1) a product containing marijuana; or (2) a controlled substance
listed in schedule I; by any medium.
It also requires a towing company to release property to a consumer if the consumer pays a percentage of the
towing invoice, obtains a bond for the remaining amount of the invoice, and provides a copy of a complaint
filed with the Attorney General. It establishes rates a towing company may charge for fees for emergency
towing or private property towing.
The bill also requires a city, county, or town to credit the proceeds from the sale of an abandoned vehicle or
parts against the costs of removal, storage, and disposal of the vehicle.
Effective Date: July 1, 2025.
Explanation of State Expenditures: (Revised) Summary - Provisions affecting the sale of trailers could
decrease the workload of the Secretary of State (SOS) to investigate allegations of unfair practices made
against trailer dealers.
Provisions affecting towing services and marijuana advertising are expected to impact the workload of the
Attorney General and the Indiana State Police (ISP). Increases in agency workload and/or expenditures could
be offset with the collection of civil penalties.
Additional Information -
SB 73 1 (Revised) Marijuana Advertising: To the extent the Attorney General enforces provisions of this bill, agency
workload would increase to investigate and potentially prosecute allegations. Increases in workload are
expected to be accomplished within existing resource and funding levels.
Indiana State Police: The bill (1) requires the ISP to annually review its rate sheet and (2) allows the ISP to
perform an equipment audit before adding a towing service operator to the Department’s towing service
rotation.
Towing Complaints: This bill adds to the list of deceptive acts concerning towing regulation that are
actionable 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. 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.
Explanation of State Revenues: (Revised) Summary - The bill removes trailers from the definition of
“motor vehicle” for purposes of unfair practices, succession to franchise by designated family members, and
maintaining an established place of business. Violations of these regulations is currently punishable as a
Class A infraction but also could include civil penalties as ordered by the Secretary of State. These changes
could decrease state revenue from unfair practice violations.
Additionally, the bill could increase General Fund revenue from (1) court fees and civil penalties collected
from violations of the bill’s prohibitions on outdoor advertising signs, (2) court fees, civil penalties, and
judgements from violations committed by towing service operators, and (3) civil court fees collected from
civil filings made against towing service operators.
Additional Information - Unfair practices are potentially punishable with (1) a Class A infraction, that carries
a maximum judgment of $10,000 benefitting the General Fund and (2) a maximum $10,000 civil penalty,
deposited in the SOS Dealer Enforcement Account.
(Revised) Towing Service Regulation: 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). 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.
Outdoor Advertising Signs: The Attorney General may impose a civil penalty of up to $5,000 for the first
violation, up to $10,000 for the second violation, and up $15,000 for each additional violations. This
provision could increase General Fund collections by an indeterminable but likely minimal amount.
(Revised) Civil Court Fee Revenue: The bill allows individuals to file civil cases against towing companies
in certain instances. If additional civil cases occur and court fees are collected, revenue to the state General
Fund 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.
SB 73 2 Explanation of Local Expenditures: Towing Service Regulation: 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: Trailer Regulation: If a reduction in court actions occur, local
governments would receive less revenue from court fees. However, any reduction in revenue is likely to be
small.
(Revised) Auction of Abandoned Motor Vehicles: The bill could decrease revenue to local units of
government by specifying that towing companies first receive revenue from the sale of abandoned motor
vehicles to offset costs of towing and storage, with any remainder to be remitted to local units of government.
There are no current statutory directives on payment for towing services after sale of an abandoned motor
vehicle.
(Revised) Civil Court Fee Revenue: 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: SOS, Attorney General, ISP.
Local Agencies Affected: Local units of government, trial courts, local law enforcement agencies.
Information Sources:
Fiscal Analyst: Bill Brumbach, 317-232-9559; Nate Bodnar, 317-234-9476.
SB 73 3