LAWRENCE J. HOGAN, JR., Governor Ch. 560
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Chapter 560
(House Bill 870)
AN ACT concerning
Vehicle Towing or Removal – Secured Parties – Electronic Notification
FOR the purpose of requiring authorizing a person who undertakes the towing or removal
of a vehicle from a parking lot to notify any secured party electronically if that form
of notice is agreed to by the tower and the secured party in a certain manner; and
generally relating to notification of secured parties after towing or removing a vehicle
from a parking lot.
BY repealing and reenacting, with amendments,
Article – Transportation
Section 21–10A–04
Annotated Code of Maryland
(2020 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Transportation
21–10A–04.
(a) Unless otherwise set by local law, a person who undertakes the towing or
removal of a vehicle from a parking lot:
(1) May not charge the owner of the vehicle, the owner’s agent, the insurer
of record, or any secured party more than:
(i) Twice the amount of the total fees normally charged or
authorized by the political subdivision for the public safety impound towing of vehicles;
(ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article,
the fee normally charged or authorized by the political subdivision from which the vehicle
was towed for the daily storage of impounded vehicles;
(iii) If a political subdivision does not establish a fee limit for the
public safety towing, recovery, or storage of impounded vehicles, $250 for towing and
recovering a vehicle and $30 per day for vehicle storage; and
(iv) Subject to subsection (b) of this section, the actual cost of
providing notice under this section;
Ch. 560 2022 LAWS OF MARYLAND
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(2) Shall notify the police department in the jurisdiction where the parking
lot is located within 1 hour after towing or removing the vehicle from the parking lot, and
shall provide the following information:
(i) A description of the vehicle including the vehicle’s registration
plate number and vehicle identification number;
(ii) The date and time the vehicle was towed or removed;
(iii) The reason the vehicle was towed or removed; and
(iv) The locations from which and to which the vehicle was towed or
removed;
(3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM,
SHALL notify the owner, any secured party, and the insurer of record, AND, EXCEPT AS
PROVIDED IN ITEM (II) OF THIS ITEM, ANY SECURED PARTY by certified mail, return
receipt requested, and first–class mail within 7 days, exclusive of days that the towing
business is closed, after towing or removing the vehicle, and shall provide the same
information required in a notice to a police department under item (2) of this subsection;
AND
(II) SHALL NOTIFY MAY PROVIDE NOTICE RE QUIRED UNDER
ITEM (I) OF THIS ITEM TO ANY SECURED PARTY EL ECTRONICALLY , IF THAT FORM OF
NOTICE IS AGREED TO BY THE TOWER AND THE SECURED PARTY IN WRI TING OR BY
ELECTRONIC COMMUNICA TION;
(4) Shall provide to the owner, any secured party, and the insurer of record
the itemized actual costs of providing notice under this section;
(5) Before towing or removing the vehicle, shall have authorization of the
parking lot owner which shall include:
(i) The name of the person authorizing the tow or removal;
(ii) A statement that the vehicle is being towed or removed at the
request of the parking lot owner; and
(iii) Photographic evidence of the violation or event that precipitated
the towing of the vehicle;
(6) Shall obtain commercial liability insurance in the amount required by
federal law for transporting property in interstate or foreign commerce to cover the cost of
any damage to the vehicle resulting from the person’s negligence;
LAWRENCE J. HOGAN, JR., Governor Ch. 560
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(7) May not employ or otherwise compensate individuals, commonly
referred to as “spotters”, whose primary task is to report the presence of unauthorized
parked vehicles for the purposes of towing or removal, and impounding;
(8) May not pay any remuneration to the owner, agent, or employee of the
parking lot; and
(9) May not tow a vehicle solely for a violation of failure to display a valid
current registration under § 13–411 of this article until 72 hours after a notice of violation
is placed on the vehicle.
(b) A person may not charge for the actual cost of providing notice under
subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of
record, or any secured party retakes possession of the vehicle within 48 hours after the
vehicle was received at the storage facility.
(c) The Administration shall:
(1) Establish and maintain a database containing the proper address for
providing notice to an insurer under subsection (a)(3) of this section for each insurer
authorized to write a vehicle liability insurance policy in the State; and
(2) Make the database available to any tower free of charge.
(D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN
ACCORDANCE WITH SUBSECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN
EFFECT UNTIL TERMINA TED BY EITHER PARTY .
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.