MD
Maryland Senate Bill SB731

Maryland 2022 Regular Session

Maryland Senate Bill SB731 Compare Versions

OldNewDifferences
1- LAWRENCE J. HOGAN, JR., Governor Ch. 561
21
3-– 1 –
4-Chapter 561
5-(Senate Bill 731)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0731*
810
9-Vehicle Towing or Removal – Secured Parties – Electronic Notification
11+SENATE BILL 731
12+R5 (2lr1884)
13+ENROLLED BILL
14+— Judicial Proceedings/Environment and Transportation —
15+Introduced by Senators Watson, Rosapepe, Lee, Smith, and Pinsky
1016
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.
17+Read and Examined by Proofreaders:
1618
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)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2223
23- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24-That the Laws of Maryland read as follows:
24+Sealed with the Great Seal and presented to the Governor, for his approval this
2525
26-Article – Transportation
26+_______ day of _______________ at ________________________ o’clock, ________M.
2727
28-21–10A–04.
28+______________________________________________
29+President.
2930
30- (a) Unless otherwise set by local law, a person who undertakes the towing or
31-removal of a vehicle from a parking lot:
31+CHAPTER ______
3232
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:
33+AN ACT concerning 1
3534
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;
35+Vehicle Towing or Removal – Secured Parties – Electronic Notification 2
3836
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;
37+FOR the purpose of requiring authorizing a person who undertakes the towing or removal 3
38+of a vehicle from a parking lot to notify any secured party electronically if that form 4
39+of notice is agreed to by the tower and the secured party in a certain manner; and 5
40+generally relating to notification of secured parties after towing or removing a vehicle 6
41+from a parking lot. 7
4242
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
43+BY repealing and reenacting, with amendments, 8
44+ Article – Transportation 9
45+Section 21–10A–04 10
46+ Annotated Code of Maryland 11
47+ (2020 Replacement Volume and 2021 Supplement) 12
48+ 2 SENATE BILL 731
4649
47- (iv) Subject to subsection (b) of this section, the actual cost of
48-providing notice under this section;
49- Ch. 561 2022 LAWS OF MARYLAND
5050
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:
51+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52+That the Laws of Maryland read as follows: 2
5553
56- (i) A description of the vehicle including the vehicle’s registration
57-plate number and vehicle identification number;
54+Article – Transportation 3
5855
59- (ii) The date and time the vehicle was towed or removed;
56+21–10A–04. 4
6057
61- (iii) The reason the vehicle was towed or removed; and
58+ (a) Unless otherwise set by local law, a person who undertakes the towing or 5
59+removal of a vehicle from a parking lot: 6
6260
63- (iv) The locations from which and to which the vehicle was towed or
64-removed;
61+ (1) May not charge the owner of the vehicle, the owner’s agent, the insurer 7
62+of record, or any secured party more than: 8
6563
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
64+ (i) Twice the amount of the total fees normally charged or 9
65+authorized by the political subdivision for the public safety impound towing of vehicles; 10
7366
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;
67+ (ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 11
68+the fee normally charged or authorized by the political subdivision from which the vehicle 12
69+was towed for the daily storage of impounded vehicles; 13
7870
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;
71+ (iii) If a political subdivision does not establish a fee limit for the 14
72+public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 15
73+recovering a vehicle and $30 per day for vehicle storage; and 16
8174
82- (5) Before towing or removing the vehicle, shall have authorization of the
83-parking lot owner which shall include:
75+ (iv) Subject to subsection (b) of this section, the actual cost of 17
76+providing notice under this section; 18
8477
85- (i) The name of the person authorizing the tow or removal;
78+ (2) Shall notify the police department in the jurisdiction where the parking 19
79+lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 20
80+shall provide the following information: 21
8681
87- (ii) A statement that the vehicle is being towed or removed at the
88-request of the parking lot owner; and
82+ (i) A description of the vehicle including the vehicle’s registration 22
83+plate number and vehicle identification number; 23
8984
90- (iii) Photographic evidence of the violation or event that precipitated
91-the towing of the vehicle;
85+ (ii) The date and time the vehicle was towed or removed; 24
9286
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. 561
87+ (iii) The reason the vehicle was towed or removed; and 25
9788
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;
89+ (iv) The locations from which and to which the vehicle was towed or 26
90+removed; 27
10291
103- (8) May not pay any remuneration to the owner, agent, or employee of the
104-parking lot; and
92+ (3) (I) [Shall] EXCEPT AS PROVIDED IN ITEM (II) OF THIS ITEM, 28
93+SHALL notify the owner, any secured party, and the insurer of record, AND, EXCEPT AS 29
94+PROVIDED IN ITEM (II) OF THIS ITEM, ANY SECURED PARTY by certified mail, return 30
95+receipt requested, and first–class mail within 7 days, exclusive of days that the towing 31
96+business is closed, after towing or removing the vehicle, and shall provide the same 32 SENATE BILL 731 3
10597
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.
10998
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.
99+information required in a notice to a police department under item (2) of this subsection; 1
100+AND 2
114101
115- (c) The Administration shall:
102+ (II) SHALL NOTIFY MAY PROVIDE NOTICE RE QUIRED UNDER 3
103+ITEM (I) OF THIS ITEM TO ANY SECURED PARTY EL ECTRONICALLY , IF THAT FORM OF 4
104+NOTICE IS AGREED TO BY THE TOWER AND THE SECURED PARTY IN WRI TING OR BY 5
105+ELECTRONIC COMMUNICA TION; 6
116106
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
107+ (4) Shall provide to the owner, any secured party, and the insurer of record 7
108+the itemized actual costs of providing notice under this section; 8
120109
121- (2) Make the database available to any tower free of charge.
110+ (5) Before towing or removing the vehicle, shall have authorization of the 9
111+parking lot owner which shall include: 10
122112
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 .
113+ (i) The name of the person authorizing the tow or removal; 11
126114
127- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
128-October 1, 2022.
115+ (ii) A statement that the vehicle is being towed or removed at the 12
116+request of the parking lot owner; and 13
129117
130-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
118+ (iii) Photographic evidence of the violation or event that precipitated 14
119+the towing of the vehicle; 15
120+
121+ (6) Shall obtain commercial liability insurance in the amount required by 16
122+federal law for transporting property in interstate or foreign commerce to cover the cost of 17
123+any damage to the vehicle resulting from the person’s negligence; 18
124+
125+ (7) May not employ or otherwise compensate individuals, commonly 19
126+referred to as “spotters”, whose primary task is to report the presence of unauthorized 20
127+parked vehicles for the purposes of towing or removal, and impounding; 21
128+
129+ (8) May not pay any remuneration to the owner, agent, or employee of the 22
130+parking lot; and 23
131+
132+ (9) May not tow a vehicle solely for a violation of failure to display a valid 24
133+current registration under § 13–411 of this article until 72 hours after a notice of violation 25
134+is placed on the vehicle. 26
135+
136+ (b) A person may not charge for the actual cost of providing notice under 27
137+subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 28
138+record, or any secured party retakes possession of the vehicle within 48 hours after the 29
139+vehicle was received at the storage facility. 30
140+
141+ (c) The Administration shall: 31
142+ 4 SENATE BILL 731
143+
144+
145+ (1) Establish and maintain a database containing the proper address for 1
146+providing notice to an insurer under subsection (a)(3) of this section for each insurer 2
147+authorized to write a vehicle liability insurance policy in the State; and 3
148+
149+ (2) Make the database available to any tower free of charge. 4
150+
151+ (D) AN AGREEMENT TO PROVI DE NOTICE ELECTRONIC ALLY MADE IN 5
152+ACCORDANCE WITH SUBSECTION (A)(3)(II) OF THIS SECTION SHAL L REMAIN IN 6
153+EFFECT UNTIL TERMINA TED BY EITHER PARTY . 7
154+
155+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
156+October 1, 2022. 9
157+
158+
159+
160+
161+
162+Approved:
163+________________________________________________________________________________
164+ Governor.
165+________________________________________________________________________________
166+ President of the Senate.
167+________________________________________________________________________________
168+ Speaker of the House of Delegates.