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Panel backs bill that denies towing fees if operators fail to notify lienholders

Utah House Business, Labor, and Commerce Standing Committee

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Summary

Sponsors said HB 268 preserves statutory notice rules for tows but prevents operators from collecting towing and storage fees if they fail to send required certified notice to lienholders; proponents called it reasonable enforcement and a protection for vehicle owners and lienholders. The committee passed the bill.

Sponsor testimony explained that House Bill 268 does not change the notice timeline but creates a penalty for tow companies that fail to meet the existing notification requirement: if a tow operator does not send required certified notice to the lienholder within two business days, the operator may not…

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