Sponsor says SB304 would shield lienholders from towing/storage liability

Senate Bill 304 would bar towing firms that tow for law enforcement from holding lienholders responsible for towing and storage charges if the lienholder does not reclaim the vehicle within the statutory notice period, sponsor testimony said.

Senator Lang, offering sponsor testimony, said an interpretation of Ohio’s towing law has allowed towers to pursue both the registered owner and the lienholder for large fees. He said small ‘buy‑here, pay‑here’ dealers sometimes serve as lienholders and can receive bills that exceed a vehicle’s value, producing losses in the thousands of dollars. Lang explained SB304 would prevent towing companies from seeking towing or storage fees from a lienholder who did not reclaim the vehicle within 10 days after notice; if neither owner nor lienholder reclaims a vehicle in that window, law enforcement may proceed to dispose of it through auction or salvage and proceeds would be applied to towing fees first.

Committee members asked for clarification about the 10‑day period and how and when notice must be sent; Lang said current law provides a 10‑day reclaim period but that some towing companies wait months to send notice and the bill seeks to require prompt notice. He said proceeds from disposition would first be used to pay towing companies and any remaining funds would be retained by the municipal entity.

Chair Manning closed the exchange after members’ questions; the committee recorded the matter as a first hearing and accepted Lang’s offer to provide additional expert testimony if requested.

No committee vote or amendment was recorded for SB304 at this hearing.