Missouri’s HB 745: Statewide Regulation and a $25,000 Penalty
Missouri’s HB 745: How It Will Impact the Towing and Storage Industry
Missouri’s towing industry is facing a significant regulatory change with the introduction of HB 745, a bill aimed at curbing abusive towing practices related to nonconsensual towing of commercial vehicles. Sponsored by Rep. Dave Griffith (R-Jefferson City), HB 745 is designed to increase transparency, limit excessive fees, and provide a dispute resolution process for truckers and insurers. While this bill is being praised by trucking associations and insurers, it could have major implications for towing companies operating in Missouri. Here’s what you need to know about HB 745 and how it affects your towing business.
What Does HB 745 Do?
HB 745 focuses on nonconsensual towing, which occurs when a commercial vehicle is towed without the owner's prior approval, often at the request of law enforcement. Under the bill, the Missouri Department of Transportation (“MoDOT”) will establish new procedures and oversight mechanisms for nonconsensual towing operations. The bill includes several provisions that will directly impact Missouri towing companies:
New Complaint and Review Process: The bill creates a system for truckers, insurers, or vehicle operators to file complaints against towing companies if they believe they have been unfairly charged. MoDOT will be responsible for investigating these complaints and adjudicating disputes. This means that towing companies could face penalties or bans if found in violation of new regulations.
Creation of the Towing and Recovery Review Board: MoDOT may form a seven-member board to oversee towing disputes. This board would include representatives from the trucking industry, law enforcement, and insurance companies, making it likely that industry-specific concerns will be closely scrutinized.
Limits on Towing Fees and Billing Practices: The bill prohibits towing companies from using a per-pound billing method and requires detailed itemized invoices. Invoices must include the towing company’s name, contact information, requestor details, and time logs for dispatch and completion. If a dispute arises, towing companies may no longer demand payment before releasing a vehicle or cargo.
Storage Fees and Lien Restrictions: Under HB 745, storage fees must stop accruing once a complaint is filed with MoDOT. Additionally, towing companies will no longer be able to place a lien on commercial vehicles or cargo to enforce payment. This change will limit the ability of towers to recover unpaid bills through traditional means.
Law Enforcement Must Honor Trucker Requests for Specific Tow Companies: If a commercial vehicle operator requests a specific towing company, law enforcement must comply unless the company cannot respond within 30 minutes or if the vehicle is blocking traffic and needs immediate removal. This provision may reduce business opportunities for towers that frequently respond to police-ordered tows.
Severe Penalties for Violations: Any towing company found conducting a nonconsensual tow while prohibited by MoDOT could face a civil penalty of $25,000 per violation. Additionally, MoDOT will have the authority to suspend or permanently prohibit companies from providing nonconsensual towing services if they violate these new regulations.
Why Is HB 745 Being Proposed?
The bill is heavily supported by trucking associations and insurance companies, which argue that certain towing companies are engaging in “predatory” practices. According to testimony from the Owner-Operator Independent Drivers Association (“OOIDA”), independent truckers often face excessive towing and storage fees that can reach $35,000 to $100,000 per incident (OOIDA Testimony). Lawmakers like Rep. Griffith have been working on this issue since 2019, aiming to balance fair business practices with consumer protection. In his testimony, Griffith stated that one bad tow bill can financially devastate an independent trucker (House Bill 745 Overview).
What This Means for Missouri’s Towing Industry
For towing companies, HB 745 represents a major shift in regulation that could impact revenue, business operations, and legal exposure. Here’s what Missouri tow operators need to consider:
Stronger Oversight & Accountability: With MoDOT overseeing complaints and disputes, towing companies should prepare for increased scrutiny. Proper documentation, transparent pricing, and adherence to new regulations will be critical.
Loss of Revenue from Storage & Liens: Towing companies would no longer be able to rely on placing liens on vehicles or cargo to secure payment, and storage fees must stop accumulating once a complaint is filed. This could increase unpaid invoices and make collections more difficult.
Limited Police-Ordered Towing Opportunities: Since truckers can request their preferred towing company, towers that rely heavily on law enforcement dispatches may see a decline in business.
Hefty Fines for Noncompliance: The $25,000 penalty per violation is a serious financial risk for towers who fail to comply with the bill’s requirements. Thus, it will remain essential for Missouri towing businesses to train staff on regulatory compliance and maintain meticulous records of each tow performed.
What’s Next for HB 745?
As of March 4, 2025, HB 745 is still in committee review. The next hearing is scheduled for March 11, 2025 in the House Transportation Committee (Missouri House Bill Status). If the bill passes through the House and Senate, it will go into effect on August 28, 2025. Towing companies should monitor legislative updates and prepare for changes in their operations.
What Missouri Towers Should Do Now
Review Your Current Billing Practices: Ensure all invoices meet the new requirements for transparency and itemized billing.
Assess the Financial Impact: Evaluate how losing lien rights and storage fee accruals may impact revenue and consider alternative collection strategies.
Stay Informed & Engage With Lawmakers: Industry representatives should consider voicing concerns to legislators and advocating for reasonable amendments to balance fair regulation with business viability (Missouri House of Representatives).
Final Thoughts
While HB 745 is intended to protect truckers from excessive towing costs, it also introduces new challenges for Missouri’s towing industry. By understanding the bill’s implications and preparing for compliance, towing companies can adapt to the new regulations while maintaining their business operations. With strict penalties and significant industry oversight on the horizon, now is the time for Missouri towers to evaluate their practices and prepare for change.
For more details on HB 745 and its progress, visit the Missouri House of Representatives’ website at house.mo.gov. If you have concerns about how this bill may affect your business, consider reaching out to industry associations or attending upcoming hearings to stay informed.