Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protection topic
No spam. Unsubscribe anytime.
Panel backs bill that denies towing fees if operators fail to notify lienholders
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 collect towing and storage fees.
Industry representatives said most towers comply and that the bill creates a disincentive for bad actors while leaving a rebuttable presumption for operators that can prove they sent notice. A Utah credit union representative said the change protects lienholders from being charged for long storage periods when required notice was not provided.
Committee members asked how the new rule would operate in practice when a vehicle is impounded and payment is demanded at the tow lot. Sponsors and industry witnesses explained that the remedy is claim enforcement and that lienholders can seek reimbursement where notice was deficient; the bill does not change lienholder rights to possession or legal remedies.
The committee passed HB 268 with a favorable recommendation (voice vote). Sponsor and supporters said the bill targets a small number of noncompliant operators and provides a clear enforcement mechanism.
