Can an authorized agent for a mechanic or towing company access a protected vehicle registration record to send a legally required lien notice to the owner?

Plain-English summary

A person acting as an authorized agent for mechanics with repairman's liens and towing companies with possessory liens on abandoned/unpaid vehicles asked the Commission for access to protected vehicle registration records — needed to send the legally required owner-notification before disposing of or transferring title to such vehicles. The requester had even filed for injunctive relief in district court, which granted a continuance to let the Commission formally resolve the issue.

The Commission held the requester (and similarly situated agents) IS entitled to access protected registration records — resolving in the agent's favor an issue the Commission had flagged as open in a related, slightly earlier advisory opinion (PLR 95-091), which had found that a possessory lien doesn't qualify as a "security interest" under Utah Code Ann. § 41-1a-116(4).

The path here was the statute's separate "advisory notice" exception. Under § 41-1a-116(4), the Motor Vehicle Division may release protected records for purposes including "advisory notices." The Commission formally adopted a broader interpretation of that term, defining it to cover:

1. Vehicle-safety notices from manufacturers, their authorized representatives, or government entities, AND
2. Statutory notices — required by law (including §§ 38-2-4 and 41-6-191 of the Utah Code, or other federal/state statutes) to be mailed to a vehicle owner at the address shown in Motor Vehicle Division records.

Because a mechanic's or tower's notice obligation under §§ 38-2-4/41-6-191 falls into category 2, an authorized agent acting for such a lienholder can access the protected record — but must prove two things: (1) the underlying lien itself (a copy of the work order or similar documentation), and (2) that they're genuinely authorized to act as the lienholder's representative (a limited power of attorney or another notarized statement signed by the mechanic or tower). The Commission also noted the record must still be handled under the statute's confidentiality conditions (no re-disclosure, no use for advertising/solicitation).

The ruling also reiterated that neither the private-investigator nor security-interest categories of § 41-1a-116(4) apply to this kind of agent, and that GRAMA's general protected-record disclosure provision (§ 63-2-202(4)) wasn't useful here since it would otherwise require a court order.

What this means for you

Towing companies, mechanics, and their authorized agents

You (or your properly authorized agent) CAN obtain a protected vehicle registration record to send the notice required before disposing of or transferring title to a lienheld vehicle — but you need documentary proof of both the lien and your agency authorization. Keep your work orders and any power-of-attorney/notarized authorization on file.

Motor Vehicle Division staff and similarly situated lienholders

This ruling supersedes the narrower reading floated (but not yet adopted) in PLR 95-091 — the "advisory notice" category now expressly covers these statutory lien notices, not just manufacturer safety recalls.

Accountants and tax professionals

Cross-reference this with PLR 95-091 (issued about six weeks earlier): together they show the Commission moving from "possessory liens don't qualify as a security interest" to "but they DO qualify under the separately available advisory-notice category" — the practical access problem got solved via a different statutory hook than the one first tried.

Common questions

Q: As a towing company, can I get a vehicle owner's protected address to send a required lien notice?
A: Yes, under the advisory-notice exception, as long as you can document your lien and (if acting through an agent) the agent's authorization.

Q: Does this mean possessory liens now count as a 'security interest' for protected-record access?
A: No — that door remains closed (per the related PLR 95-091). This ruling instead uses the separate "advisory notice" category.

Q: What documentation do I need to provide?
A: Proof of the lien (e.g., a work order) and proof that you're authorized to act for the lienholder (e.g., a limited power of attorney or notarized statement).

Citations and references

Statutes:

• Utah Code Ann. § 41-1a-116(4) (protected records; advisory notice exception)
• Utah Code Ann. § 63-2-202(4) (GRAMA disclosure conditions)
• Utah Code Ann. § 38-2-4 (mechanic's repairman's lien notice)
• Utah Code Ann. § 41-6-191 (towing company possessory lien)

Related Commission ruling:

• PLR 95-091 (found possessory liens don't qualify as a "security interest," and flagged the advisory-notice category as a possible alternative fix — adopted here)

Source

• Landing page: https://tax.utah.gov/commission/rulings/
• Original PDF: https://files.tax.utah.gov/tax/commission/ruling/96-018.htm

Original ruling text

96-018

Response
January 29, 1996

Request

RE:
Advisory Opinion - Release of Protected Vehicle Registration Information

Dear
XXXXX

Your
issues regarding protected vehicle registration information has been referred
to the Commission for response. As a result,
we have conducted a thorough review of our procedures for releasing protected
motor vehicle records and we will publish an administrative rule to clarify our
position. In the meantime, we are
issuing this advisory opinion as an informational statement of the Commission's
interpretation of the relevant statutes.

As
we understand your situation, your need for vehicle registration records arises
when (1) you are acting as an agent for a mechanic who has a repairman's lien
under section 32 of the Utah Code, and (2) you are arranging to dispose of
vehicles which are abandoned on private property. We also acknowledge that you
filed a petition for injunctive relief with the District Court and that at a
hearing on the matter on November 21 the court granted a continuance pending
our formal determination on this matter.

For
the reason set out below, we have determined that you are entitled to access
protected Utah registration records when you are acting as an authorized agent
of a mechanic or a tower who holds a valid possessory lien on the vehicle and
who is required by law to make notification to the vehicle owner at the address
shown of Motor Vehicle Division records.

Access
to Protected Registration Records Under Utah law, motor vehicle registration records
are public unless the registrant requests protected record status. Access to protected registration information
is governed by section 41-1a-116 (4) of the Motor Vehicle Act and by 63-2-202
of the Government Records Access Management Act (GRAMA).

Section
63-2-202 (4) of the Utah Code states:

Upon
request, a governmental entity shall disclose a protected record to:

(a)
the person who submitted the record;

(b)
any other individual who:

(I) has a power of attorney from all persons,
governmental entities, or political subdivisions whose interests were sought to
be protected by the protected classification; or

(ii) submits a notarized release from all persons,
governmental entities, or political subdivisions whose interests were sought to
be protected by the protected classification or from their legal
representatives dated no more than 90 days prior to the date the request is
made; or

(C) any person to whom the record must be provided
pursuant to a court order as provided in Subsection (7) or a legislative
subpoena as provided in Title 36, Chapter 14.

Section
41-1a-116 (4) of the Utah Code states:

In addition to those persons granted access to protected
records under Section 63-2-202, the division may disclose a protected record to
a licensed private investigator with a legitimate business need, a person with
a bona fide security interest or for purposes of safety, product recall,
advisory notices, or statistical reports only upon receipt of a signed
acknowledgment that the person receiving that protected record may not:

(a) disclose information from that record to any other
person; or

(b) use information from that record for advertising or
solicitation purposes.

The
GRAMA provision cited above is not very helpful in your situation because it
grants you access only if you present the Tax Commission with a court
order. Therefore, we focus our
attention on section 41-1a-116 (4).

You
may not claim access to protected records under section 41-1a-116 (4) as a
private investigator or secured party (which is defined by section 41-1a-102
(52)). However, you may claim access
for the purpose of an advisory notice.
The Commission interprets the term �advisory notice� narrowly to mean:

1. notices from vehicle manufacturers or the
   manufacturers' authorized representative or from government entities regarding
   information that is pertinent to the safety of vehicle owners or occupants, and

2. statutory notices required by sections 38
   and 4191 of the Utah Code or by other federal law or state statutes when
   statutes direct a party to mail a notice to a vehicle owner at the owner's last
   known address as shown on Motor Vehicle Division's records.

Under
the Commission's interpretation of �advisory notice,� the Motor Vehicle
Division will release protected Utah records to a mechanic or towing company or
to the authorized representative of the mechanic or towing company upon proof
of a lien under section 38-2-4 or 41-6-191 of the Utah Code. Proof of the lien may be established by
presenting a copy of the work order or similar documentation. As an agent for
the mechanic or the tower, you must also establish that you are acting as the
lienholder's authorized representative. Proof may be established by presenting
a limited power of attorney or some other notarized statement signed by the
mechanic or tower.

We
appreciate your agreeing to a continuance to allow us an opportunity to review
this issue. If you have further
questions, please let us know.

For
the Commission,

Alice
Shearer

Commissioner