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.
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*sb0731*
SENATE BILL 731
R5 (2lr1884)
ENROLLED BILL
— Judicial Proceedings/Environment and Transportation —
Introduced by Senators Watson, Rosapepe, Lee, Smith, and Pinsky
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Vehicle Towing or Removal – Secured Parties – Electronic Notification 2
FOR the purpose of requiring authorizing a person who undertakes the towing or removal 3
of a vehicle from a parking lot to notify any secured party electronically if that form 4
of notice is agreed to by the tower and the secured party in a certain manner; and 5
generally relating to notification of secured parties after towing or removing a vehicle 6
from a 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
2 SENATE BILL 731
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Transportation 3
21–10A–04. 4
(a) Unless otherwise set by local law, a person who undertakes the towing or 5
removal of a vehicle from a parking lot: 6
(1) May not charge the owner of the vehicle, the owner’s agent, the insurer 7
of record, or any secured party more than: 8
(i) Twice the amount of the total fees normally charged or 9
authorized by the political subdivision for the public safety impound towing of vehicles; 10
(ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 11
the fee normally charged or authorized by the political subdivision from which the vehicle 12
was towed for the daily storage of impounded vehicles; 13
(iii) If a political subdivision does not establish a fee limit for the 14
public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 15
recovering a vehicle and $30 per day for vehicle storage; and 16
(iv) Subject to subsection (b) of this section, the actual cost of 17
providing notice under this section; 18
(2) Shall notify the police department in the jurisdiction where the parking 19
lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 20
shall provide the following information: 21
(i) A description of the vehicle including the vehicle’s registration 22
plate number and vehicle identification number; 23
(ii) The date and time the vehicle was towed or removed; 24
(iii) The reason the vehicle was towed or removed; and 25
(iv) The locations from which and to which the vehicle was towed or 26
removed; 27
(3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM, 28
SHALL notify the owner, any secured party, and the insurer of record, AND, EXCEPT AS 29
PROVIDED IN ITEM (II) OF THIS ITEM, ANY SECURED PARTY by certified mail, return 30
receipt requested, and first–class mail within 7 days, exclusive of days that the towing 31
business is closed, after towing or removing the vehicle, and shall provide the same 32 SENATE BILL 731 3
information required in a notice to a police department under item (2) of this subsection; 1
AND 2
(II) SHALL NOTIFY MAY PROVIDE NOTICE RE QUIRED UNDER 3
ITEM (I) OF THIS ITEM TO ANY SECURED PARTY EL ECTRONICALLY , IF THAT FORM OF 4
NOTICE IS AGREED TO BY THE TOWER AND THE SECURED PARTY IN WRI TING OR BY 5
ELECTRONIC COMMUNICA TION; 6
(4) Shall provide to the owner, any secured party, and the insurer of record 7
the itemized actual costs of providing notice under this section; 8
(5) Before towing or removing the vehicle, shall have authorization of the 9
parking lot owner which shall include: 10
(i) The name of the person authorizing the tow or removal; 11
(ii) A statement that the vehicle is being towed or removed at the 12
request of the parking lot owner; and 13
(iii) Photographic evidence of the violation or event that precipitated 14
the towing of the vehicle; 15
(6) Shall obtain commercial liability insurance in the amount required by 16
federal law for transporting property in interstate or foreign commerce to cover the cost of 17
any damage to the vehicle resulting from the person’s negligence; 18
(7) May not employ or otherwise compensate individuals, commonly 19
referred to as “spotters”, whose primary task is to report the presence of unauthorized 20
parked vehicles for the purposes of towing or removal, and impounding; 21
(8) May not pay any remuneration to the owner, agent, or employee of the 22
parking lot; and 23
(9) May not tow a vehicle solely for a violation of failure to display a valid 24
current registration under § 13–411 of this article until 72 hours after a notice of violation 25
is placed on the vehicle. 26
(b) A person may not charge for the actual cost of providing notice under 27
subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 28
record, or any secured party retakes possession of the vehicle within 48 hours after the 29
vehicle was received at the storage facility. 30
(c) The Administration shall: 31
4 SENATE BILL 731
(1) Establish and maintain a database containing the proper address for 1
providing notice to an insurer under subsection (a)(3) of this section for each insurer 2
authorized to write a vehicle liability insurance policy in the State; and 3
(2) Make the database available to any tower free of charge. 4
(D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN 5
ACCORDANCE WITH SUBSECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN 6
EFFECT UNTIL TERMINA TED BY EITHER PARTY . 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2022. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.