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H.B. 268

Signed into Law

Towing Notice and Ownership Rights Modifications

View on le.utah.gov
H.B. 268Signed into Law

Towing Notice and Ownership Rights Modifications

House
Senate
Governor

What This Bill Does

This bill provides certain protections for an owner or lien holder of a towed vehicle if proper notice has not been provided to the owner or lien holder.

Key Provisions

This bill:

  • provides that, for a private-property tow, a possessory lien related to a vehicle that has been towed is not enforceable if required notice was not properly provided to the owner or lien holder;
  • allows an owner or a lien holder to take possession of a vehicle without paying towing or storage fees if notice was not properly given;
  • if an owner claims notice was not properly provided, creates a presumption of improper notice that may be rebutted by presenting, as applicable:
    • time-stamped evidence that notice was properly provided to the Motor Vehicle Division; or
    • evidence that notice was sent via certified mail;
  • allows a party prevailing in an action related to lack of notice to be awarded attorney fees;
  • authorizes the Department of Transportation to make rules to establish the process for an owner or a lien holder to make a claim for release of a vehicle; and
  • makes technical changes.

Plain-Language Summary

AI-generated summary. We recommend consulting the bill text for important decisions.

When a vehicle is towed from private property without the owner's knowledge, Utah law already requires the towing company to report the tow to the Motor Vehicle Division immediately and send a certified letter to the vehicle owner and any lien holder within two business days. This bill strengthens enforcement of those notice requirements by making the towing company's right to collect fees — known as a possessory lien — unenforceable if proper notice was not given, and allowing vehicle owners or lien holders to reclaim their vehicle without paying towing or storage fees in that situation. If an owner disputes whether notice was properly given, the bill creates a legal presumption in the owner's favor that the towing company must overcome by producing time-stamped proof of database reporting or a certified mail record.