Briefing and FAQ on Ohio’s New Towing Dispute Resolution Bill - HB 403
Brief on Ohio House Bill 403
I. Executive Summary
House Bill 403 (HB 403) is a multifaceted piece of legislation in Ohio that aims to address several distinct issues: primarily, creating a new civil action process for disputes between trucking companies and towing services regarding post-accident towing and storage fees for commercial vehicles; providing an exemption to motor vehicle tampering laws; expanding exceptions to window tinting prohibitions; and mandating annual background checks for transportation network company (TNC) drivers. The bill has garnered broad bipartisan support, with the various involved industries working together to create a fair and balanced approach to the issues. A key element of the bill is the expedited dispute resolution process allowing for quick release of vehicles and cargo with the court acting as the final arbitrator, and a significant amendment was added to remove lienholders and leasing companies from being defined as "motor vehicle owners" for the purposes of the disputes.
II. Key Themes and Provisions
Dispute Resolution for Towing Fees: The primary focus of HB 403 is to establish a structured and expedited process for resolving disputes over towing and storage fees for commercial motor vehicles after accidents. This is a major point of contention between trucking and towing companies, and the new procedure is designed to be more efficient and fair to both parties, and to keep commerce moving.
Civil Action: The bill allows a “motor vehicle owner” (defined as the titled owner or lessee, but explicitly excluding lienholders or leasing companies) to initiate a civil action against a towing service or storage facility in the municipal or county court where the vehicle was towed.
Undisputed Payment and Bond: The vehicle owner must pay the undisputed portion of the towing bill and post a bond equal to the disputed amount.
Expedited Release: Upon payment of the undisputed amount and posting of the bond, the towing service must release the vehicle, cargo, and personal property within two business days. This is a crucial provision aimed at reducing delays and minimizing the disruption to commercial operations. As noted by both the towing companies and trucking companies, the delays caused by the old dispute processes resulted in a real cost to the businesses involved.
Court Determination: The court will review the evidence and determine whether the towing fees were reasonable, ordering the owner to pay any additional amounts or requiring the towing company to refund any overcharges. The court may also impose penalties as appropriate. The court's role is to be an impartial arbiter and ensure fair prices.
Reciprocal Action: The towing service also has the option to initiate an expedited civil action against the vehicle owner if payment isn’t received within 45 days. This ensures both parties have the option to pursue the other for monies owed.
Motor Vehicle Tampering Exemption: HB 403 creates an exemption for motor vehicle dealers who sell tampered vehicles to other dealers through auctions, provided certain disclosure conditions are met. This allows more flexibility in the sale of vehicles between dealers while maintaining legal restrictions against knowingly selling tampered vehicles to the public. The key here is transparency; as long as the proper disclosures are made by the seller, this action will not be considered a violation of tampering laws.
The specific disclosures required are that the dealer discloses to the auction, the auction announces during the auction, the auction identifies the vehicle in written descriptions, and the auction provides a receipt to the buyer and seller stating that the vehicle has been tampered with.
Window Tinting Exception: The bill expands exceptions to window tinting prohibitions by allowing certain school buses that transport children with disabilities to have tinted windows behind the driver's seat and on the rear windows. This allows the buses to provide transportation without overly visible or open windows for children with disabilities that may be adversely affected by other passengers seeing them.
Transportation Network Company (TNC) Background Checks: HB 403 mandates that TNCs like Uber and Lyft conduct annual background checks on all authorized drivers, and terminate any driver that no longer meets initial authorization requirements. This is to ensure a continuing level of safety for the patrons of TNC services.
TNCs must conduct a check of multi-state criminal databases as well as check the national sex offender registry. They must also receive and review a driving history report.
TNCs are prohibited from authorizing drivers who do not possess a valid driver's license or have had certain serious driving-related violations, and must terminate any driver who no longer meets these requirements in their annual background check.
III. Key Players and Proponents
Primary Sponsor: Representative (now Senator) Al Cutrona.
Cosponsors: A bipartisan group of Senators and Representatives including Jerry C. Cirino, Hearcel F. Craig, William P. DeMora, Catherine D. Ingram, Terry Johnson, Stephanie Kunze, Nathan H. Manning, Bill Reineke, Shane Wilkin, Sean P. Brennan, Sara P. Carruthers, Jack K. Daniels, Richard Dell'Aquila, Dave Dobos, Brett Hudson Hillyer, Don Jones, Adam Mathews, Kevin D. Miller, Ismail Mohamed, Phillip M. Robinson, Jr., Nick Santucci, Jean Schmidt. This large group of co-sponsors indicates a broad coalition of support.
Proponent Organizations: Ohio Trucking Association (OTA): They support the bill because it provides a method for resolving disputes while ensuring that cargo is not held hostage by towing companies. They also worked with the towing industry to come to an agreement that works for everyone involved.
Association of Professional Towers – Ohio (APTO): They support the bill because it provides a clear payment path for services provided.
Towing and Recovery Association of Ohio (TRAO): They support the bill for the same reasons as APTO, noting that they need payment for their services, but cannot collect from any government entity.
Ohio Credit Union League, Ohio Bankers League, Community Bankers Association of Ohio: While these groups were initially concerned about liability, the amendment AM_135_2824-1 removed lienholders and leasing companies from the liability in the disputes and was strongly supported by these groups.
IV. Legislative Process
House of Representatives: HB 403 was introduced in the House, went through committee (House Civil Justice Committee), and was passed unanimously (91-0)
Senate: The bill then went to the Senate, was reviewed by the Senate Judiciary Committee, and passed unanimously (30-0).
Companion Bill: Senator Shane Wilkin introduced SB 258, which is a companion bill to HB 403.
The bill is currently listed as "Passed by the Senate" and is expected to be sent to the Governor.
V. Impact and Significance
Balancing Interests: HB 403 attempts to balance the competing interests of trucking companies, towing services, and other stakeholders. It seeks to provide a fair and efficient process for resolving disputes, minimizing economic disruptions, and ensuring payment for necessary services.
Streamlined Dispute Resolution: The expedited civil action process outlined in the bill is a significant improvement over previous methods, which involved costly and time-consuming legal battles like replevin actions. This process is expected to significantly reduce delays and financial burdens for both trucking and towing businesses.
Industry Collaboration: The collaborative effort between the trucking and towing industries to develop the bill highlights the potential for consensus-building in addressing complex issues. The bill was created in part because the various involved parties recognized the need for change and were willing to work together to find a solution.
Amendment Impact: Amendment AM_135_2824-1 demonstrates the importance of legislative flexibility. The inclusion of lienholders in the initial definition of "motor vehicle owner" could have had unintended consequences, and the amendment provided a simple and amicable solution.
Increased Safety: The annual background check requirements for TNC drivers adds another measure of safety and security for the passengers.
VI. Quotes
"HB 403 codifies a simple, fair and balanced process to resolve disputes where both parties are provided a clear path and will know the 'rules of the road' if they cannot agree on a final bill when these major accidents must be cleared from our roadways." - Senator Al Cutrona
"This legislation seeks to solve that problem by creating a dispute resolution process that gives both sides a chance to have their case heard." - Michael Guastella, Ohio Trucking Association
"The issue of 'price gouging', especially in the heavy-duty towing and recovery space, is a very contentious issue for both the towing and trucking industries." - Joe Hollabaugh, Association of Professional Towers – Ohio
VII. Conclusion
House Bill 403 represents a comprehensive effort to address various issues within the transportation sector in Ohio. The bill's focus on dispute resolution, motor vehicle tampering, window tinting, and TNC background checks, combined with its collaborative development process, makes it a notable example of effective legislation, and one that was thoroughly vetted and worked on by a wide variety of stakeholders. The bill's broad bipartisan support and unanimous passage in both the House and Senate indicates a strong likelihood of the bill being enacted. An FAQ on Ohio House Bill 403 follows.
FAQ:
What is the main purpose of House Bill 403 (HB 403) regarding commercial vehicles towed after accidents?
HB 403 primarily addresses disputes that arise between trucking companies and towing services over the costs associated with towing and storing commercial motor vehicles after accidents. It establishes a streamlined legal process for resolving these disputes, aiming to ensure the prompt release of vehicles and cargo while protecting both the trucking and towing industries. It creates a civil action process where the vehicle owner can object to the bill amount.
How does HB 403 facilitate the quick release of a commercial vehicle and its cargo when there is a billing dispute?
Under HB 403, a trucking company can initiate a civil action to contest a towing bill. To do this, they must pay the undisputed portion of the bill to the towing service and post a bond equal to the disputed amount. Once these actions are complete, the towing service is obligated to release the vehicle, cargo, and any personal property within two business days, allowing the trucking company to continue operations without significant delays.
What role does the court play in resolving disputes over towing fees under HB 403?
The court's role is to assess the reasonableness of the towing and storage charges. It will examine the evidence presented by both the trucking company and the towing service to determine if the billed amount was justified. The court has the authority to order the trucking company to pay additional charges if the initial bill was deemed reasonable, or conversely, to order refunds or impose monetary penalties if the charges were unreasonable.
Besides towing disputes, what other areas does HB 403 address?
Beyond towing disputes, HB 403 also includes provisions relating to motor vehicle tampering, window tinting, and transportation network companies (TNCs). It creates an exemption for motor vehicle dealers who sell tampered vehicles to other dealers through auctions with proper disclosure, expands exceptions to window tinting prohibitions for certain school buses used for children with disabilities, and mandates that TNCs conduct annual background checks on their drivers.
How does HB 403 alter existing regulations on motor vehicle tampering?
HB 403 provides an exemption for motor vehicle dealers who sell vehicles with tampered emission control systems to other dealers through auctions, provided that they disclose this issue to the auction and that the auction makes the disclosure to the purchasing dealer. However, it does not alter the regulation preventing the sale of tampered vehicles to the general public. This allows more flexibility in the dealer-to-dealer market while maintaining environmental protections.
What changes does HB 403 introduce concerning window tinting regulations?
HB 403 expands existing exceptions to window tinting rules, by allowing certain school buses that transport children with disabilities to have tinted windows behind the driver's seat and in the rear windows. This is meant to accommodate the specific transportation needs of these children where excessive sunlight may be an issue.
How does HB 403 impact Transportation Network Companies (TNCs) like Uber or Lyft?
HB 403 introduces a requirement for TNCs to conduct an annual background check on each authorized driver. Furthermore, if any driver fails to meet the company's initial authorization requirements during the annual check, the company is required to terminate the driver's authorization.
What is the significance of amendment AM_135_2824-1 to HB 403, and who advocated for it?
Amendment AM_135_2824-1 significantly clarifies the definition of "motor vehicle owner" in the context of towing disputes by removing lienholders (banks, leasing companies) from that definition. This change was made in response to concerns from financial institutions and other related parties such as the Community Bankers Association of Ohio, the Ohio Bankers League, the Ohio Credit Union League, and the Ohio Automobile Dealers Association. This amendment prevents these entities from being automatically drawn into civil actions over towing fees and provides a notification process should any issues arise. It also specifically limited the bill to commercial motor vehicles towed per ORC 4513.66 (A)(2).