IndianaHB 1184Second Regular Session 124th General Assembly (2026)HouseWALLET

Towing matters.

Sponsored By: Craig Haggard (Republican)

Signed by Governor

Summary

Provides that the proceeds from the sale of abandoned vehicles or parts by a city, county, or town shall first be credited against the costs of removal, storage, and disposal of the vehicle incurred by the towing company or storage facility. Allows a towing company responding to a summons for an emergency towing to utilize the shoulder of the roadway as necessary to reach the scene of a disabled motor vehicle. Provides that a commercial private property owner that establishes a tow-away zone must post a tow-away zone sign at the location of the tow-away zone that is at a height of more than five feet and less than seven feet from the ground. Prohibits a towing company from towing a motor vehicle from a tow-away zone if the tow-away zone sign is not at the required height. Provides that a towing company or storage facility shall accept a credit card or debit card as a form of payment. Prohibits a towing company or storage facility from charging a credit card service fee of more than three percent (3%). Establishes requirements for the storage of collateral by collateral recovery agencies. Specifies the time within which a self-service storage facility owner may tow or remove a motor vehicle, trailer, or watercraft.

roads and transportationthe senatehomeland security and transportation

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

More payment options for towed vehicles

Beginning July 1, 2026, Indiana towing services and storage yards must accept credit and debit cards for vehicle release. They also accept cash, certified checks, insurance checks, and money orders; credit-card service fees cannot exceed 3%. Vehicles or parts must be released when the owner or lienholder pays all costs and appears at the storage site. Owners, lienholders, and insurance representatives cannot be charged an inspection fee to inspect the vehicle or retrieve items. Operators must give an itemized receipt and notify the proper public agency of release, identifying the owner or lienholder, any insurer, the vehicle or parts, costs paid, and release date.

Emergency tow trucks can use shoulders

Beginning July 1, 2026, Indiana towing companies responding to an emergency towing summons may use the road shoulder. Shoulder use must be necessary to reach the disabled vehicle.

Unpaid storage bills can trigger towing

Beginning July 1, 2026, Indiana self-storage owners may enforce a lien after five continuous days of default. During enforcement, they may block access and move belongings to another suitable storage space pending payment, sale, or disposal. Written notice by email or verified mail to the renter's last known address must allow at least 30 days after mailing to pay. The notice must list the debt and due date, lien, contact details, any blocked access or move, and a clear sale or disposal warning with the planned process, place if applicable, and time. For stored vehicles, trailers, or watercraft, the notice may instead warn of towing or removal if the payment deadline passes or default lasts at least 60 days. Owners carrying out a sale or disposal must follow the notice's timing and procedures and the applicable legal process.

Disputed towing bills require partial payment

Beginning July 1, 2026, Indiana owners can seek vehicle release while disputing a towing or storage bill. The bond-based process requires paying 75%, providing a bond for 25%, and supplying a complaint filed with the Indiana Attorney General alleging a towing-law violation. The bond is payable if the owner fails to follow a court order; the law also provides for court-ordered release. A civil case over the bill can be filed within 30 days after the required release items are submitted. If the court finds the bill reasonable, the owner owes the balance after credit for the 75% payment. Otherwise, the court sets a reasonable amount and may order excess payments returned. These rules do not expand what the owner's insurance policy covers.

Abandoned vehicle sales cover towing first

Beginning July 1, 2026, Indiana cities, counties, and towns must apply abandoned-vehicle sale money to removal, storage, and disposal costs first. This covers sales of vehicles or their parts. Only the remaining money goes to the local government's abandoned-vehicle fund.

Sponsors & Cosponsors

Sponsor

  • Craig Haggard

    Republican • House

Cosponsors

  • Alaina Shonkwiler

    Republican • House

  • James Tomes

    Republican • Senate

  • Jim Pressel

    Republican • House

  • Robert Morris

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 215 • No: 0

House vote • 2/26/2026

House concurred with Senate amendments

Yes: 87 • No: 0

Senate vote • 2/24/2026

Third reading: passed

Yes: 48 • No: 0

House vote • 2/2/2026

Third reading: passed

Yes: 80 • No: 0

Actions Timeline

  1. Signed by the Governor

    3/4/2026House
  2. Public Law 81

    3/4/2026House
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the Speaker

    2/26/2026House
  6. House concurred with Senate amendments; Roll Call 387: yeas 87, nays 0

    2/26/2026House
  7. Motion to concur filed

    2/25/2026House
  8. Returned to the House with amendments

    2/24/2026Senate
  9. Third reading: passed; Roll Call 238: yeas 48, nays 0

    2/24/2026Senate
  10. Second reading: amended, ordered engrossed

    2/23/2026Senate
  11. Amendment #6 (Ford J.D.) failed; voice vote

    2/23/2026Senate
  12. Amendment #1 (Brown L) prevailed; voice vote

    2/23/2026Senate
  13. Amendment #2 (Crider) prevailed; voice vote

    2/23/2026Senate
  14. Amendment #5 (Doriot) prevailed; voice vote

    2/23/2026Senate
  15. Committee report: amend do pass, adopted

    2/17/2026Senate
  16. First reading: referred to Committee on Homeland Security and Transportation

    2/5/2026Senate
  17. Referred to the Senate

    2/3/2026House
  18. Third reading: passed; Roll Call 173: yeas 80, nays 0

    2/2/2026House
  19. Senate sponsor: Senator Tomes

    2/2/2026House
  20. Second reading: ordered engrossed

    1/29/2026House
  21. Representative Shonkwiler added as coauthor

    1/27/2026House
  22. Committee report: amend do pass, adopted

    1/27/2026House
  23. Representative Pressel added as coauthor

    1/8/2026House
  24. Authored by Representative Haggard

    1/5/2026House
  25. First reading: referred to Committee on Roads and Transportation

    1/5/2026House

Bill Text

  • Engrossed House Bill (H)

  • Enrolled House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

Related Bills

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