EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0731*
SENATE BILL 731
R5 2lr1884
CF HB 870
By: Senators Watson, Rosapepe, Lee, Smith, and Pinsky
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: March 5, 2022
CHAPTER ______
AN ACT concerning 1
Vehicle Towing or Removal – Secured Parties – Electronic Notification 2
FOR the purpose of requiring a person who undertakes the towing or removal of a vehicle 3
from a parking lot to notify any secured party electronically if that form of notice is 4
agreed to by the tower and the secured party in a certain manner; and generally 5
relating to notification of secured parties after towing or removing a vehicle from a 6
parking lot. 7
BY repealing and reenacting, with amendments, 8
Article – Transportation 9
Section 21–10A–04 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2021 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Transportation 15
21–10A–04. 16
(a) Unless otherwise set by local law, a person who undertakes the towing or 17
removal of a vehicle from a parking lot: 18
2 SENATE BILL 731
(1) May not charge the owner of the vehicle, the owner’s agent, the insurer 1
of record, or any secured party more than: 2
(i) Twice the amount of the total fees normally charged or 3
authorized by the political subdivision for the public safety impound towing of vehicles; 4
(ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 5
the fee normally charged or authorized by the political subdivision from which the vehicle 6
was towed for the daily storage of impounded vehicles; 7
(iii) If a political subdivision does not establish a fee limit for the 8
public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 9
recovering a vehicle and $30 per day for vehicle storage; and 10
(iv) Subject to subsection (b) of this section, the actual cost of 11
providing notice under this section; 12
(2) Shall notify the police department in the jurisdiction where the parking 13
lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 14
shall provide the following information: 15
(i) A description of the vehicle including the vehicle’s registration 16
plate number and vehicle identification number; 17
(ii) The date and time the vehicle was towed or removed; 18
(iii) The reason the vehicle was towed or removed; and 19
(iv) The locations from which and to which the vehicle was towed or 20
removed; 21
(3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM, 22
SHALL notify the owner, any secured party, and the insurer of record by certified mail, 23
return receipt requested, and first–class mail within 7 days, exclusive of days that the 24
towing business is closed, after towing or removing the vehicle, and shall provide the same 25
information required in a notice to a police department under item (2) of this subsection; 26
AND 27
(II) SHALL NOTIFY ANY SECU RED PARTY ELECTRONIC ALLY, IF 28
THAT FORM OF NOTICE IS AGREED TO BY THE TOWER AND THE SECURE D PARTY IN 29
WRITING OR BY ELECTR ONIC COMMUNICATION ; 30
(4) Shall provide to the owner, any secured party, and the insurer of record 31
the itemized actual costs of providing notice under this section; 32
SENATE BILL 731 3
(5) Before towing or removing the vehicle, shall have authorization of the 1
parking lot owner which shall include: 2
(i) The name of the person authorizing the tow or removal; 3
(ii) A statement that the vehicle is being towed or removed at the 4
request of the parking lot owner; and 5
(iii) Photographic evidence of the violation or event that precipitated 6
the towing of the vehicle; 7
(6) Shall obtain commercial liability insurance in the amount required by 8
federal law for transporting property in interstate or foreign commerce to cover the cost of 9
any damage to the vehicle resulting from the person’s negligence; 10
(7) May not employ or otherwise compensate individuals, commonly 11
referred to as “spotters”, whose primary task is to report the presence of unauthorized 12
parked vehicles for the purposes of towing or removal, and impounding; 13
(8) May not pay any remuneration to the owner, agent, or employee of the 14
parking lot; and 15
(9) May not tow a vehicle solely for a violation of failure to display a valid 16
current registration under § 13–411 of this article until 72 hours after a notice of violation 17
is placed on the vehicle. 18
(b) A person may not charge for the actual cost of providing notice under 19
subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 20
record, or any secured party retakes possession of the vehicle within 48 hours after the 21
vehicle was received at the storage facility. 22
(c) The Administration shall: 23
(1) Establish and maintain a database containing the proper address for 24
providing notice to an insurer under subsection (a)(3) of this section for each insurer 25
authorized to write a vehicle liability insurance policy in the State; and 26
(2) Make the database available to any tower free of charge. 27
(D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN 28
ACCORDANCE WITH SUBS ECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN 29
EFFECT UNTIL TERMINA TED BY EITHER PARTY . 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2022. 32