Committee hears broad dealer-services bill; towing licensure draws the most concern

House Bill 1382, a multi-part dealer-services bill, drew detailed testimony Wednesday on licensing and enforcement for towing companies and other provisions affecting vehicle dealers across Indiana.

The bill’s primary new component would require state registration and create an enforcement regime for towing companies, a change supporters said is intended to protect consumers and independent dealers who use a buy-here, pay-here model. "The big portion of House Bill 1382 is a towing company licensing and enforcement," said Sean Grady, co-director of the Auto Dealers Services Division in the Secretary of State's office. Grady said the proposal pairs licensure requirements similar to other entities the division regulates with an enforcement structure moved out of Title 24 of the Indiana Code into a newly created Indiana code chapter for towing.

Why it matters: dealers and consumer advocates said the lack of a central licensing authority leaves recovery disputes to civil litigation and the attorney general’s consumer office, which stakeholders said…