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Lawmakers hear bipartisan support for expedited towing‑fee dispute process in SB 258

Senate Transportation Committee · December 4, 2024
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Summary

The Senate Transportation Committee heard testimony from trucking and towing groups supporting SB 258, which would let trucking companies post bond to initiate expedited court review of disputed towing invoices and require release of property within two days of the bond being posted; an amendment removes lienholders from the litigation process and adds notification requirements.

Chair Coonsie opened a second hearing on Senate Bill 258 and heard proponent testimony from the Ohio Trucking Association and towing‑industry groups.

Michael Guastella of the Ohio Trucking Association told the committee that when heavy commercial vehicles are towed after crashes, invoices can reach ‘‘upwards of $50,000 or even higher’’ and that trucking companies often dispute fees but lack a speedy resolution. He said SB 258 (and companion House Bill 403) would allow a trucking company to initiate a civil action to dispute towing charges, require the trucking company to post a bond for the full amount of the disputed bill, and mandate that property be released from the towing company no later than two days after the bond is posted.

Guastella and later witnesses said the bill is the result of multi‑year negotiations among trucking, towing, banking and insurance stakeholders. He described an amendment (referenced in testimony as amendment "2824‑1") that would remove lienholders and leasing companies from the civil litigation process, and would require towing companies to notify known lienholders of any action filed.

Joe Hollabaugh of the Association of Professional Towers Ohio (presenting with Megan Leshucka of the Towing and Recovery Association of Ohio) said the towing industry helped craft the bill to create a fair, expedited dispute process for heavy‑duty recovery. Hollabaugh stressed towing companies respond to law‑enforcement‑ordered recovery operations that clear roadway obstructions for public safety and said current remedies such as replevin can be slow and costly. He said an established, predictable process should reduce disputes and encourage front‑end cooperation among parties.

Senator Schafer asked whether current court remedies were adequate; witnesses said ordinary litigation can be lengthy, leaving cargo and equipment detained and affecting commerce. On bond mechanics, witnesses explained the bond is posted upfront and the court ultimately disburses funds according to the court’s ruling.

Next steps: the committee recorded testimony and discussion; sponsors and stakeholders may consider the amendment language and operational rules for notification to lienholders and bond administration before further committee action.