MD
Maryland House Bill HB870

Maryland 2022 Regular Session

Maryland House Bill HB870 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 560
21
3-– 1 –
4-Chapter 560
5-(House Bill 870)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0870*
89
9-Vehicle Towing or Removal – Secured Parties – Electronic Notification
10+HOUSE BILL 870
11+R5 2lr1786
12+ CF SB 731
13+By: Delegates Foley and Fraser–Hidalgo
14+Introduced and read first time: February 7, 2022
15+Assigned to: Environment and Transportation
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 7, 2022
1019
11-FOR the purpose of requiring authorizing a person who undertakes the towing or removal
12-of a vehicle from a parking lot to notify any secured party electronically if that form
13-of notice is agreed to by the tower and the secured party in a certain manner; and
14-generally relating to notification of secured parties after towing or removing a vehicle
15-from a parking lot.
20+CHAPTER ______
1621
17-BY repealing and reenacting, with amendments,
18- Article – Transportation
19-Section 21–10A–04
20- Annotated Code of Maryland
21- (2020 Replacement Volume and 2021 Supplement)
22+AN ACT concerning 1
2223
23- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24-That the Laws of Maryland read as follows:
24+Vehicle Towing or Removal – Secured Parties – Electronic Notification 2
2525
26-Article – Transportation
26+FOR the purpose of requiring authorizing a person who undertakes the towing or removal 3
27+of a vehicle from a parking lot to notify any secured party electronically if that form 4
28+of notice is agreed to by the tower and the secured party in a certain manner; and 5
29+generally relating to notification of secured parties after towing or removing a vehicle 6
30+from a parking lot. 7
2731
28-21–10A–04.
32+BY repealing and reenacting, with amendments, 8
33+ Article – Transportation 9
34+Section 21–10A–04 10
35+ Annotated Code of Maryland 11
36+ (2020 Replacement Volume and 2021 Supplement) 12
2937
30- (a) Unless otherwise set by local law, a person who undertakes the towing or
31-removal of a vehicle from a parking lot:
38+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
39+That the Laws of Maryland read as follows: 14
3240
33- (1) May not charge the owner of the vehicle, the owner’s agent, the insurer
34-of record, or any secured party more than:
41+Article – Transportation 15
3542
36- (i) Twice the amount of the total fees normally charged or
37-authorized by the political subdivision for the public safety impound towing of vehicles;
43+21–10A–04. 16
3844
39- (ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article,
40-the fee normally charged or authorized by the political subdivision from which the vehicle
41-was towed for the daily storage of impounded vehicles;
45+ (a) Unless otherwise set by local law, a person who undertakes the towing or 17
46+removal of a vehicle from a parking lot: 18
47+ 2 HOUSE BILL 870
4248
43- (iii) If a political subdivision does not establish a fee limit for the
44-public safety towing, recovery, or storage of impounded vehicles, $250 for towing and
45-recovering a vehicle and $30 per day for vehicle storage; and
4649
47- (iv) Subject to subsection (b) of this section, the actual cost of
48-providing notice under this section;
49- Ch. 560 2022 LAWS OF MARYLAND
50+ (1) May not charge the owner of the vehicle, the owner’s agent, the insurer 1
51+of record, or any secured party more than: 2
5052
51-– 2 –
52- (2) Shall notify the police department in the jurisdiction where the parking
53-lot is located within 1 hour after towing or removing the vehicle from the parking lot, and
54-shall provide the following information:
53+ (i) Twice the amount of the total fees normally charged or 3
54+authorized by the political subdivision for the public safety impound towing of vehicles; 4
5555
56- (i) A description of the vehicle including the vehicle’s registration
57-plate number and vehicle identification number;
56+ (ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 5
57+the fee normally charged or authorized by the political subdivision from which the vehicle 6
58+was towed for the daily storage of impounded vehicles; 7
5859
59- (ii) The date and time the vehicle was towed or removed;
60+ (iii) If a political subdivision does not establish a fee limit for the 8
61+public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 9
62+recovering a vehicle and $30 per day for vehicle storage; and 10
6063
61- (iii) The reason the vehicle was towed or removed; and
64+ (iv) Subject to subsection (b) of this section, the actual cost of 11
65+providing notice under this section; 12
6266
63- (iv) The locations from which and to which the vehicle was towed or
64-removed;
67+ (2) Shall notify the police department in the jurisdiction where the parking 13
68+lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 14
69+shall provide the following information: 15
6570
66- (3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM,
67-SHALL notify the owner, any secured party, and the insurer of record, AND, EXCEPT AS
68-PROVIDED IN ITEM (II) OF THIS ITEM, ANY SECURED PARTY by certified mail, return
69-receipt requested, and first–class mail within 7 days, exclusive of days that the towing
70-business is closed, after towing or removing the vehicle, and shall provide the same
71-information required in a notice to a police department under item (2) of this subsection;
72-AND
71+ (i) A description of the vehicle including the vehicle’s registration 16
72+plate number and vehicle identification number; 17
7373
74- (II) SHALL NOTIFY MAY PROVIDE NOTICE RE QUIRED UNDER
75-ITEM (I) OF THIS ITEM TO ANY SECURED PARTY EL ECTRONICALLY , IF THAT FORM OF
76-NOTICE IS AGREED TO BY THE TOWER AND THE SECURED PARTY IN WRI TING OR BY
77-ELECTRONIC COMMUNICA TION;
74+ (ii) The date and time the vehicle was towed or removed; 18
7875
79- (4) Shall provide to the owner, any secured party, and the insurer of record
80-the itemized actual costs of providing notice under this section;
76+ (iii) The reason the vehicle was towed or removed; and 19
8177
82- (5) Before towing or removing the vehicle, shall have authorization of the
83-parking lot owner which shall include:
78+ (iv) The locations from which and to which the vehicle was towed or 20
79+removed; 21
8480
85- (i) The name of the person authorizing the tow or removal;
81+ (3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM, 22
82+SHALL notify the owner, any secured party, and the insurer of record, AND, EXCEPT AS 23
83+PROVIDED IN ITEM (II) OF THIS ITEM, ANY SECURED PARTY by certified mail, return 24
84+receipt requested, and first–class mail within 7 days, exclusive of days that the towing 25
85+business is closed, after towing or removing the vehicle, and shall provide the same 26
86+information required in a notice to a police department under item (2) of this subsection; 27
87+AND 28
8688
87- (ii) A statement that the vehicle is being towed or removed at the
88-request of the parking lot owner; and
89+ (II) SHALL NOTIFY MAY PROVIDE NOTICE RE QUIRED UNDER 29
90+ITEM (I) OF THIS ITEM TO ANY SECURED PARTY EL ECTRONICALLY , IF THAT FORM OF 30
91+NOTICE IS AGREED TO BY THE TOWER AND THE SECURED PARTY IN WRI TING OR BY 31
92+ELECTRONIC CO MMUNICATION ; 32
8993
90- (iii) Photographic evidence of the violation or event that precipitated
91-the towing of the vehicle;
94+ (4) Shall provide to the owner, any secured party, and the insurer of record 33
95+the itemized actual costs of providing notice under this section; 34 HOUSE BILL 870 3
9296
93- (6) Shall obtain commercial liability insurance in the amount required by
94-federal law for transporting property in interstate or foreign commerce to cover the cost of
95-any damage to the vehicle resulting from the person’s negligence;
96- LAWRENCE J. HOGAN, JR., Governor Ch. 560
9797
98-– 3 –
99- (7) May not employ or otherwise compensate individuals, commonly
100-referred to as “spotters”, whose primary task is to report the presence of unauthorized
101-parked vehicles for the purposes of towing or removal, and impounding;
10298
103- (8) May not pay any remuneration to the owner, agent, or employee of the
104-parking lot; and
99+ (5) Before towing or removing the vehicle, shall have authorization of the 1
100+parking lot owner which shall include: 2
105101
106- (9) May not tow a vehicle solely for a violation of failure to display a valid
107-current registration under § 13–411 of this article until 72 hours after a notice of violation
108-is placed on the vehicle.
102+ (i) The name of the person authorizing the tow or removal; 3
109103
110- (b) A person may not charge for the actual cost of providing notice under
111-subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of
112-record, or any secured party retakes possession of the vehicle within 48 hours after the
113-vehicle was received at the storage facility.
104+ (ii) A statement that the vehicle is being towed or removed at the 4
105+request of the parking lot owner; and 5
114106
115- (c) The Administration shall:
107+ (iii) Photographic evidence of the violation or event that precipitated 6
108+the towing of the vehicle; 7
116109
117- (1) Establish and maintain a database containing the proper address for
118-providing notice to an insurer under subsection (a)(3) of this section for each insurer
119-authorized to write a vehicle liability insurance policy in the State; and
110+ (6) Shall obtain commercial liability insurance in the amount required by 8
111+federal law for transporting property in interstate or foreign commerce to cover the cost of 9
112+any damage to the vehicle resulting from the person’s negligence; 10
120113
121- (2) Make the database available to any tower free of charge.
114+ (7) May not employ or otherwise compensate individuals, commonly 11
115+referred to as “spotters”, whose primary task is to report the presence of unauthorized 12
116+parked vehicles for the purposes of towing or removal, and impounding; 13
122117
123- (D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN
124-ACCORDANCE WITH SUBSECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN
125-EFFECT UNTIL TERMINA TED BY EITHER PARTY .
118+ (8) May not pay any remuneration to the owner, agent, or employee of the 14
119+parking lot; and 15
126120
127- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
128-October 1, 2022.
121+ (9) May not tow a vehicle solely for a violation of failure to display a valid 16
122+current registration under § 13–411 of this article until 72 hours after a notice of violation 17
123+is placed on the vehicle. 18
129124
130-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
125+ (b) A person may not charge for the actual cost of providing notice under 19
126+subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 20
127+record, or any secured party retakes possession of the vehicle within 48 hours after the 21
128+vehicle was received at the storage facility. 22
129+
130+ (c) The Administration shall: 23
131+
132+ (1) Establish and maintain a database containing the proper address for 24
133+providing notice to an insurer under subsection (a)(3) of this section for each insurer 25
134+authorized to write a vehicle liability insurance policy in the State; and 26
135+
136+ (2) Make the database available to any tower free of charge. 27
137+
138+ (D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN 28
139+ACCORDANCE WITH SUBS ECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN 29
140+EFFECT UNTIL TERMINA TED BY EITHER PARTY . 30
141+
142+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
143+October 1, 2022. 32
144+