OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 403 Bill Analysis
135th General Assembly
Click here for H.B. 403’s Fiscal Note
Version: As Passed by the House
Primary Sponsor: Rep. Cutrona
Effective date:
Margaret E. Marcy, Attorney
SUMMARY
Establishes a process for a motor vehicle owner to file a civil action to dispute a towing
service or storage facility’s charges related to the towing and storage of that owner’s
motor vehicle, cargo, or personal property after a motor vehicle accident, similar to the
process used by insurance companies under current law.
Also authorizes a towing service or storage facility to file a civil action against a motor
vehicle owner if all of the following apply:
The motor vehicle, cargo, or personal property was removed, towed, or stored after
a motor vehicle accident;
The motor vehicle owner has not paid the bill or filed a civil action to dispute the
charges within 45 days of the owner receiving the bill sent by the towing service or
storage facility; and
The towing service or storage facility is not attempting to take title to the motor
vehicle until after any final judgments are entered for the current civil action.
Requires a motor vehicle owner to pay the undisputed amount and to post a bond for the
disputed amount of the towing service or storage facility’s charges.
Requires the bond amount to be used to pay the remaining disputed amount of the bill
or to be returned, depending on the civil action’s outcome.
Requires the court to determine the reasonableness of the amount charged by the towing
service or storage facility if that amount is in dispute.
June 14, 2024
Office of Research and Drafting LSC Legislative Budget Office
DETAILED ANALYSIS
Civil actions related to towing
The bill establishes a process for a motor vehicle owner or lienholder (hereinafter, owner)
to file a civil action for either of the following after a motor vehicle accident:
1. The recovery of the motor vehicle or cargo or personal property that was removed,
towed, or stored; or
2. Objecting to the amount billed by the towing service or storage facility for the removal,
towing, or storage.1
The process established is similar to the current process used by insurance companies to
dispute these types of charges on behalf of their customers. Under the bill, the owner may file
the action on his or her own behalf or on behalf of a third party for whom the owner commercially
transports the cargo that is the subject of the civil action.2
Similarly, the bill authorizes a towing service or storage facility to commence a civil action
against a motor vehicle owner if all of the following apply:
1. The motor vehicle, cargo, or personal property was removed, towed, or stored after a
motor vehicle accident;
2. The motor vehicle owner has not paid the amount billed or commenced the civil action
described above to dispute the charges within 45 days of the owner receiving the bill from
the towing service or storage facility; and
3. The towing service or storage facility is not seeking title to the motor vehicle, in
accordance with current law procedures, until judgment is entered in the current civil
action.3
The motor vehicle owner, towing service, or storage facility may file the action in the
municipal or county court with territorial jurisdiction over the location from which the motor
vehicle, cargo, or personal property was removed, towed, or stored. Regardless of who files the
civil action, if the owner objects to the billed amount, the owner must include in the owner’s
complaint, answer, or objection the amount of the bill that is undisputed and the owner’s reasons
for objecting to the remainder. The owner must also post a bond equal to the disputed amount.
After receipt of payment for the undisputed amount, within two business days, the towing
service or storage facility must release the subject motor vehicle, cargo, or personal property.4
1 R.C. 4513.71(B)(1).
2 R.C. 4513.71(B)(2).
3 R.C. 4513.71(C).
4 R.C. 4513.71(D), (E), and (F).
P a g e |2 H.B. 403
As Passed by the House
Office of Research and Drafting LSC Legislative Budget Office
If the billed amount is in dispute, the court must make a determination on the
reasonableness of the amount charged by the towing service or storage facility. If the amount is
reasonable, the court must order the owner to pay the remaining amount of the bill. If the court
determines the amount is unreasonable, it must determine a reasonable amount and order the
owner to pay any remaining amount not already paid. Any money owed by the motor vehicle
owner must be paid from the bond posted by the owner. Any of the bond left after payment
must be returned to that owner. The court also may require either party to pay or refund any
additional amounts or may impose any monetary penalties on either party, if appropriate.5
Nothing in the civil action process created by the bill creates, implies, or grants additional
insurance coverage beyond what a motor vehicle owner’s liability policy, proof of financial
responsibility, or other insurance policy specifies. For example, if an insurance policy specifies
that the insurance company will reimburse an owner $100 for towing and storage after a motor
vehicle accident, but then a court specifies that the towing service or storage facility’s bill of $150
is fair, the insurance company is not obligated to cover the additional $50 beyond the policy
limits.6
HISTORY
Action Date
Introduced 02-07-24
Reported, H. Civil Justice 05-01-24
Passed House (91-0) 06-12-24
ANHB0403PH-135/ts
5 R.C. 4513.71(G) and (H).
6 R.C. 4513.71(I).
P a g e |3 H.B. 403
As Passed by the House