Bill > HB0336

This bill distinguishes between normal towing operations and more complex "recovery operations," which involve extracting or stabilizing disabled, damaged, or overturned vehicles that cannot move on their own, require specialized equipment, or present hazards. It mandates that motor carriers must use their vehicle insurance policies to cover the costs of recovery operations. For commercial liability insurers providing coverage for recovered vehicles or cargo, the bill requires them to pay recovery operators directly for reasonable and necessary services within 60 days of receiving an invoice, or pay 75% of the invoiced amount up to $40,000. If a dispute arises over the cost, the insurer and recovery operator must first attempt mediation, and if unsuccessful, the dispute will be resolved through binding arbitration, with the insurer required to post a bond for the disputed amount. The bill also requires motor carriers to obtain a specific insurance endorsement for recovery operations, with a minimum coverage limit of $40,000 per operation, and clarifies that this coverage applies to non-consent police-generated tows. Additionally, it requires towing entities to ensure that tow truck motor carriers dispatched for recovery operations have the appropriate qualifications.

Transportation and Infrastructure

https://le.utah.gov/~2026/bills/static/HB0336.html