News & Law Updates

OHIO SENATE BILL 94 EFFECTIVE AS LAW ON OCTOBER 24, 2024

 

On Wednesday July 24th, Governor Mike DeWine signed Senate Bill 94, legislation that included several changes to Ohio police towing statutes. The language is now in effect as law and every Ohio Towing and Recovery Company must review the changes to make important decisions about your business. The bill makes several important updates, including:

– Expands the law enforcement entities that may order the towing of a motor vehicle to include university campus police departments, park district police forces, and natural resources officers and wildlife officers of the Department of Natural Resources (ODNR).

– It also grants a university campus police department, a park district police force, and ODNR the authority to dispose of an unclaimed towed motor vehicle or an abandoned junk motor vehicle, similar to current statute for all police departments. ***Current title sections we also updated to ensure Ohio Towing and Recovery Companies could also access titles (in the same manner currently available) to these vehicles, in the event the law enforcement entities do not dispose of the vehicles. The language also requires towers to be paid if the law enforcement entity ultimately disposes of the vehicle.

– The bill also clarifies that after an authorized law enforcement agency orders the towing and storage of a motor vehicle, the sheriff, chief of police, or ODNR must send notice of the tow to both the owner and any lienholder of the vehicle. The existing statute is unclear if the notice had to be sent to either the owner or lienholder (just one) or to both.

We supported these changes but added a significant amendment to the legislation to recognize that vehicle owners/lienholders are responsible to pay any expenses and charges incurred for vehicles ordered into storage by all law enforcement entities. For a long time, Ohio Towing and Recovery Companies have been saddled without payment for abandoned vehicles. This was due, in part, to current Revised Code language stating that a vehicle owner or lienholder “may reclaim” the motor vehicle upon payment of any expenses or charges incurred in its removal and storage….” This language was insufficient to protect the industry for payment because it only addressed payment IF a vehicle was reclaimed – resulting in thousands of vehicles being abandoned without payment.

The new language clarifies that vehicles owners are responsible for payment of any expenses or charges incurred in a vehicles’ removal or storage. It also strengthens the

current language regarding lienholders who are also required to pay for towing and storage if they intend to reclaim the property. The new language in Ohio Revised Code 4513.61 (C)(2) now reads (new language in bold and underlined):

The owner or lienholder of the motor vehicle is responsible for payment of any expenses or charges incurred in its removal and storage and may reclaim the motor vehicle upon payment of any those expenses or charges incurred in its removal and storage, and presentation of proof of ownership, which may be evidenced by a certificate of title or memorandum certificate of title to the motor vehicle, a certificate of registration for the motor vehicle, or a lease agreement…….

Responsibility for payment language has been a long-term goal of our industry for nearly a decade and we are proud to have accomplished SB 94 to keep addressing the issue of non-payment to the industry. Your business may want to consider referencing this new language when sending notifications to owners/lienholders and when necessary to cause civil actions against vehicle owners in the future.