Towing matters., the official text

Second Regular Session of the 124th General Assembly (2026)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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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 2025 Regular Session of the General Assembly.

  HOUSE ENROLLED ACT No. 1184

   AN ACT to amend the Indiana Code concerning trade regulation.

   Be it enacted by the General Assembly of the State of Indiana:

   SECTION 1. IC 9-22-1-8, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2026 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]:
Sec. 8. (a) 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.

   (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.
      (5) Credit card.
      (6) Debit card.
A towing service or storage facility may elect to accept payment by
means of a credit card or debit card.
   (d) A towing service or storage yard may not charge a credit

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card service fee of more than three percent (3%).
   (d) (e) 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) (f) 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, 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) (g) 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) (h) A towing service or storage yard shall release property to a
properly identified person who owns or holds a lien on the vehicle not
later than twenty-four (24) hours after the towing service's or storage
yard's receipt of:
      (1) payment of seventy-five percent (75%) of the amount of the
      invoice;
      (2) proof of a bond obtained by the owner for the remaining
      twenty-five percent (25%) of the amount of the invoice, payable
      in the event the owner does not comply with a court order under
      subsection (j); (k); and
      (3) a copy of a complaint filed with the attorney general alleging

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      a violation of IC 24-14 under IC 24-14-10-1.
   (h) (i) The owner shall file a civil complaint in the appropriate
jurisdiction not later than thirty (30) days after providing the items
required to release the vehicle under subsection (g) (h) if the disputed
invoice amount has not been resolved. A towing service or storage yard
may bring a civil complaint in an appropriate jurisdiction at any time
within the same thirty (30) day period asking the court to resolve the
disputed invoice amount.
   (i) (j) A civil complaint filed under subsection (h) (i) must include
the amounts in the invoice that are disputed and the reasons those
amounts are disputed. A copy of the invoice and any evidence of
reasonableness or unreasonableness must be filed with the complaint.
   (j) (k) After a civil complaint is filed under subsection (h), (i), the
court shall make a determination as to whether the amount charged by
the towing service or storage yard is reasonable. If the court determines
that the amount is reasonable, the court shall order the owner to pay the
amount of the invoice, minus the amount paid under subsection (g)(1).
(h)(1). If the court determines that the amount charged was
unreasonable, the court shall determine a reasonable amount and order
the owner to pay that amount minus the amount paid under subsection
(g)(1). (h)(1). If the reasonable amount determined by the court is less
than the amount paid under subsection (g)(1), (h)(1), the court shall
order the towing service or storage yard to pay the owner the difference
in those amounts. The court may also require either party to pay or
refund any additional amount and may impose any monetary penalties
that the court determines to be appropriate.
   (k) (l) Nothing in this section creates, implies, or otherwise grants
insurance coverage for the amount billed by a towing service or storage
facility yard that is not within the owner's automobile insurance policy
or other policy of insurance.
   SECTION 2. IC 9-22-1-27, AS AMENDED BY P.L.227-2025,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 27. (a) This section applies to sales of abandoned
vehicles or parts by a city, county, or town.
   (b) The proceeds from the sale of abandoned vehicles or parts,
including:

      (1) charges for bills of sale; and
      (2) money received from persons who own or hold liens on
      vehicles for the cost of removal or storage of vehicles;
shall first be credited against the costs of removal, storage, and
disposal of the vehicle incurred by the towing company or storage
facility. The remaining proceeds shall be deposited in the city's,

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county's, or town's abandoned vehicle fund by the fiscal officer of the
city, county, or town.

   (c) The costs incurred by a public agency in administering this
chapter shall be paid from the abandoned vehicle fund.

   (d) The fiscal body shall annually appropriate sufficient money to
the fund to carry out this chapter. Money remaining in the fund at the
end of a year remains in the fund and does not revert to the general
fund.

   (e) Notwithstanding subsection (d), the fiscal body of a consolidated
city may transfer money from the fund.

   SECTION 3. IC 24-14-3-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 7. A towing company responding to a summons for
an emergency towing under this chapter may utilize the shoulder
of the roadway as necessary to reach the scene of the disabled
motor vehicle.

   SECTION 4. IC 24-14-4-2, AS ADDED BY P.L.281-2019,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) Except as provided in subsections (b) and
(c), the owner of a commercial private property may establish a
tow-away zone on the owner's property. A commercial private property
owner that establishes a tow-away zone under this section must post a
tow-away zone sign at the location of the tow-away zone that is at a
height of more than five (5) feet and less than seven (7) feet from
the ground, conspicuous, and clearly visible to the public. A tow-away
zone sign described under this section shall provide the following
information:

      (1) A statement that the area in the immediate vicinity of the sign
      is a tow-away zone.
      (2) Pertinent contact information.
      (3) A description of any person permitted to park in the affected
      area, if applicable.
   (b) A commercial private property owner may have a motor vehicle
towed from the owner's commercial private property without first
displaying signage concerning the tow-away zone if the motor vehicle
is removed under IC 9-22-1-16.
   (c) A unit (as defined in IC 36-1-2-23) may adopt an ordinance that
provides for different requirements than those provided in this section.
   (d) Except as provided in subsection (b), a towing company may
not tow a motor vehicle from a tow-away zone if the tow-away zone
sign is not at the height required under subsection (a).
   SECTION 5. IC 24-14-4-6, AS ADDED BY P.L.281-2019,

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SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. A towing company that performs commercial
private property towing under this chapter shall do the following:

      (1) Properly secure all towed motor vehicles.
      (2) Take all reasonable efforts to prevent:

         (A) further damage (including weather damage) to; or
         (B) the theft of;
      all towed motor vehicles, including a towed motor vehicle's cargo
      and contents.
      (3) Except for a towing performed under IC 9-22-1, reimburse
      the owner of the motor vehicle for any damage caused by the
      towing company.
   SECTION 6. IC 24-14-7-2, AS ADDED BY P.L.281-2019,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) Upon payment of all costs relating to a tow,
the storage of a motor vehicle, and all allowable fees, as applicable, the
towing company or storage facility shall release the motor vehicle to a
properly identified person who owns or holds a lien on the motor
vehicle. Each release performed under this subsection shall comply
with the procedures and be subject to the same requirements set forth
in IC 9-22-1-8 with respect to abandoned motor vehicles.
   (b) The owner, lienholder, or insurance company representative
responsible for releasing a motor vehicle under this section shall have
the right to inspect the motor vehicle during normal business hours
before accepting the release of the motor vehicle.
   (c) A towing company or storage facility shall accept the following
forms of payment:
      (1) Cash.
      (2) Certified check.
      (3) Insurance check.
      (4) Money order.
      (5) Credit card.
      (6) Debit card.
A towing service or storage facility may elect to accept payment by
means of a credit card or debit card.
   (d) A towing company or storage facility may not charge a
credit card service fee of more than three percent (3%).
   (d) (e) A towing company or storage facility, upon receiving
payment for all costs and fees assessed against a motor vehicle, shall
provide an itemized receipt that includes the information described
under IC 24-14-5 if the information is available.
   (e) (f) A towing company or storage facility shall comply with

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IC 9-22-1-8.
   SECTION 7. IC 26-2-11 IS ADDED TO THE INDIANA CODE AS

A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:

   Chapter 11. Collateral Recovery Agencies
   Sec. 1. This chapter does not apply to the following persons
when engaged in an activity otherwise covered by this chapter:

      (1) A financial institution or an employee of a financial
      institution if the activity is conducted by the employee on
      behalf of that financial institution.
      (2) An automobile rental company or an employee of an
      automobile rental company if the activity is conducted by the
      employee on behalf of the automobile rental company.
      (3) A retail seller of equipment (as defined in IC 26-1-9.1-102),
      or an employee of a retail seller of equipment, if the activity
      is limited to the repossession of the type of goods routinely
      sold by the retail seller in the manner authorized by
      IC 26-1-9.1-609 on behalf of the owner of a security interest
      in that collateral.
      (4) An entity or an employee of an entity that primarily
      finances wholesale and retail transactions related to the
      purchase or lease of equipment manufactured by the entity's
      affiliate if the activity is limited to the repossession of the
      equipment.
   Sec. 2. As used in this chapter, "collateral" means any personal
property that is subject to a security, lease, or rental agreement.
The term does not include a recreational vehicle permanently
attached to a foundation and used as a primary residence.
   Sec. 3. As used in this chapter, "collateral recovery agency"
means any person that, for consideration:
      (1) advertises as providing; or
      (2) is engaged in the business of performing;
a repossession.
   Sec. 4. As used in this chapter, "hazardous material" means a
material or waste that has been determined to be hazardous or
potentially hazardous to human health, to property, or to the
environment by:
      (1) the United States:

         (A) Environmental Protection Agency;
         (B) Nuclear Regulatory Commission;
         (C) Department of Transportation; or
         (D) Occupational Safety and Health Administration; or

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      (2) the environmental rules board established by IC 13-13-8-3.
The term includes all of the hazardous materials identified in 49
CFR 172.101.

   Sec. 5. As used in this chapter, "repossession" means to take
physical possession of personal property that was used as
collateral.

   Sec. 6. A collateral recovery agency must store collateral at a
location within Indiana after repossession until the collateral is:

      (1) redeemed; or
      (2) transferred to auction.
   Sec. 7. (a) A collateral recovery agency must include ten (10)
days of collateral storage in the collateral recovery agency's
standard repossession rate.
   (b) The legal owner or lien holder of the collateral must pay the
collateral recovery agency a fee of fifteen dollars ($15) per day for
any collateral stored after the initial ten (10) days under subsection
(a). A collateral recovery agency may charge an additional fee for
storing collateral that contains hazardous materials.
   SECTION 8. IC 26-3-8-12, AS AMENDED BY P.L.93-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 12. (a) After a renter has been in default
continuously for at least five (5) days, an owner may begin enforcement
of the owner's lien under this chapter.
   (b) An owner enforcing the owner's lien under this chapter may:
      (1) deny the renter access to the self-service storage facility,
      including access to the rented space; and
      (2) move the renter's personal property from the rented space to
      another storage space pending the redemption, sale, or other
      disposition of the personal property under this chapter.
   (c) An owner enforcing the owner's lien shall send the renter, by
electronic mail or verified mail and addressed to the last known address
of the renter, a written notice that includes:
      (1) an itemized statement of the owner's claim showing the
      amount due at the time of the notice and the date when the
      amount became due;
      (2) a demand for payment of the amount due before a specified
      time at least thirty (30) days after the date of the mailing of the
      notice;
      (3) a statement that the contents of the renter's rented space are
      subject to the owner's lien;
      (4) a statement advising the renter that the owner has denied the
      renter access to the rented space, if the owner has done this under

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      subsection (b);
      (5) a statement advising the renter that the owner has removed the
      renter's personal property from the rented space to another
      suitable storage space, if the owner has done this under subsection
      (b);
      (6) the name, street address, and telephone number of the owner
      or of any other person the renter may contact to respond to the
      notice; and
      (7) a conspicuous statement that unless the owner's claim is paid
      within the time stated under subdivision (2), the personal
      property:

         (A) will:
            (i) be advertised to be sold in a manner permitted under
            section 15 of this chapter; or
            (ii) be otherwise disposed of;

         at a specified place (if applicable) and time, which must be at
         least sixty (60) days after the renter's default; or
         (B) will be disposed of in the manner described in subsection
         (d), if:

            (i) the renter's personal property stored in the rented space
            is a motor vehicle, trailer, or watercraft; and
            (ii) the owner chooses to dispose of the renter's motor
            vehicle, trailer, or watercraft in the manner permitted under
            subsection (d).
   (d) If:
      (1) the renter's personal property stored in the rented space is a
      motor vehicle, trailer, or watercraft; and
      (2) the renter does not pay the owner's claim within the time
      specified in subsection (c)(2) or is in default for at least sixty
      (60) days;
as an alternative to conducting a sale under section 15 of this chapter,
the owner may cause the renter's motor vehicle, trailer, or watercraft to
be towed or removed from the self-service storage facility.
   (e) Any sale or other disposition of the personal property undertaken
by the owner to enforce the owner's lien must be conducted in the same
manner, and at the same place (if applicable) and time, specified by the
owner in the notice given under subsection (c)(7).

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Speaker of the House of Representatives

President of the Senate

President Pro Tempore

Governor of the State of Indiana

Date:                             Time:

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