WES MOORE, Governor Ch. 669
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Chapter 669
(House Bill 1002)
AN ACT concerning
Commercial Vehicles – Police–Initiated Towing – Alterations
FOR the purpose of altering certain provisions related to the rates the Department of State
Police sets for tow companies involved in certain police–initiated towing;
establishing the Committee on Rate Setting and Complaint Resolution for
Police–Initiated Medium–Duty and Heavy–Duty Towing and Recovery; and
generally relating to the police–initiated towing of commercial vehicles.
BY repealing and reenacting, with amendments,
Article – Public Safety
Section 2–314
Annotated Code of Maryland
(2022 Replacement Volume)
BY adding to
Article – Public Safety
Section 2–314.1
Annotated Code of Maryland
(2022 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – Commercial Law
Section 16A–101
Annotated Code of Maryland
(2013 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Commercial Law
Section 16A–101(d)
Annotated Code of Maryland
(2013 Replacement Volume and 2022 Supplement)
(As enacted by Section 2 of this Act)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Public Safety
2–314.
(a) (1) In this section the following words have the meanings indicated. Ch. 669 2023 LAWS OF MARYLAND
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(2) “APPROVED RATES ” MEANS THE MAXIMUM RA TES APPROVED BY
THE DEPARTMENT THAT APPLY TO POLICE–INITIATED TOWING AND RECOVERY
SERVICES.
[(2)] (3) “Authorized tow company” means a company providing towing
and recovery services at the request of the Department and designated on the tow list.
[(3)] (4) “Heavy–duty towing” means towing and recovery of a vehicle
including trailers and semitrailers with a gross vehicle weight rating over 26,000 pounds.
[(4)] (5) “Medium–duty towing” means towing and recovery of a vehicle
including trailers or semitrailers with a gross vehicle weight rating from over 10,000
pounds to 26,000 pounds.
[(5)] (6) “Per pound billing” means a method of calculating a fee for
towing and recovery services using a formula that considers the weight of the vehicle,
equipment, or cargo that is the subject of the towing and recovery and multiplies the weight
of the vehicle, equipment, or cargo by a monetary amount.
[(6)] (7) “Police–initiated towing” means the towing or recovery of a
commercial motor vehicle which was authorized, requested, or dispatched by the
Department.
(8) “RECOVERY” MEANS WINCHING , HOISTING, UP–RIGHTING,
REMOVING, OR OTHERWISE RELOCAT ING A VEHICLE WHEN T HE VEHICLE IS FOUND
IN A LOCATION, STATE, OR POSITION IN WHICH IT CANNOT BE REMOVED FROM THE
LOCATION, STATE, OR POSITION USING ON LY THE VEHICLE ’S OWN POWER , EVEN IF
IT WERE IN COMPLETE OPERATING CONDITION .
[(7)] (9) “Tow list” means the list of towing businesses authorized by the
Department to perform police–initiated towing services of disabled or abandoned
commercial vehicles within the Department’s jurisdiction.
(10) “TOWING” MEANS USING ANOTHER VEHICLE TO MOVE OR
REMOVE A VEHICLE .
(b) The Department shall:
(1) establish and maintain a tow list, by county, of qualifying tow
companies for use by the Department in carrying out the duties of this subtitle; and
(2) make the tow list available to the public on request.
WES MOORE, Governor Ch. 669
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(c) The Department may adopt regulations to establish standards for tow
companies, including application procedures and minimum qualification requirements, and
must include on the list all qualifying tow companies.
(d) The Department shall:
(1) [require a tow company applying to the Department’s tow list for
medium– and heavy–duty towing to submit a rate sheet that does not include per pound
billing;
(2)] require a tow company that [makes an application under item (1) of this
subsection] IS ON THE TOW LIST to ban the use of per pound billing by October 1, 2023;
[(3) require the Department to make each tow compan y’s rate sheet
required under item (1) of this subsection available on request; and]
(2) ESTABLISH THE APPROV ED RATES FOR MEDIUM – AND
HEAVY–DUTY TOWING AND RECO VERY THAT MAY BE CHA RGED BY A TOW COMPAN Y
ON THE TOW LIST BY JANUARY 1, 2024; AND
[(4)] (3) develop a process to receive, investigate, and adjudicate
complaints from a vehicle owner or operator or the owner’s designee against an authorized
tow company regarding the police–initiated towing of a commercial motor vehicle, including
a process to suspend or remove an authorized tow company from the tow list.
(e) An authorized tow company may charge less than but may not charge more
than the APPROVED rates [on the rate sheet submitted to] AUTHORIZED BY the
Department for a police–initiated towing AND RECOVERY .
(f) If a vehicle owner or the owner’s designee requests the use of a specific towing
company, the Department shall honor that request and allow the vehicle owner to engage
the services of the requested towing company except when:
(1) the requested towing company cannot arrive at the location of the
vehicle within a reasonable time period;
(2) a traffic safety problem exists and the requested towing company
cannot arrive at the location within 30 minutes of a police employee’s arrival at the location
of the vehicle; or
(3) the vehicle is disabled in the roadway as a result of a collision or vehicle
fire and the requested towing company cannot arrive within 30 minutes of a police
employee’s arrival at the location of the vehicle.
2–314.1. Ch. 669 2023 LAWS OF MARYLAND
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(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “APPROVED RATES ” HAS THE MEANING STAT ED IN § 2–314 OF
THIS SUBTITLE.
(3) “COMMITTEE” MEANS THE COMMITTEE ON RATE SETTING AND
COMPLAINT RESOLUTION FOR POLICE–INITIATED MEDIUM–DUTY AND
HEAVY–DUTY TOWING AND RECOVERY.
(4) “POLICE–INITIATED TOWING ” HAS THE MEANING STAT ED IN §
2–314 OF THIS SUBTITLE .
(5) “RECOVERY” HAS THE MEANING STAT ED IN § 2–314 OF THIS
SUBTITLE.
(B) THERE IS A COMMITTEE ON RATE SETTING AND COMPLAINT
RESOLUTION FOR POLICE–INITIATED MEDIUM–DUTY AND HEAVY–DUTY TOWING
AND RECOVERY.
(C) THE COMMITTEE CONSISTS OF THE FOLLOWING MEMBER S:
(1) TWO REPRESENTATIVES OF THE TOWING AND RECOVERY
PROFESSIONALS OF MARYLAND, APPOINTED BY THE PRESIDENT OF THE TOWING
AND RECOVERY PROFESSIONALS OF MARYLAND;
(2) A REPRESENTATIVE OF THE MARYLAND MOTOR TRUCK
ASSOCIATION, APPOINTED BY THE PRESIDENT OF THE MARYLAND MOTOR TRUCK
ASSOCIATION;
(3) A REPRESENTATIVE OF THE OWNER–OPERATOR INDEPENDENT
DRIVERS ASSOCIATION, APPOINTED BY THE PRESIDENT OF THE
OWNER–OPERATOR INDEPENDENT DRIVERS ASSOCIATION;
(4) A REPRESENTATIVE OF THE MARYLAND TRANSPORTATION
AUTHORITY POLICE, APPOINTED BY THE SECRETARY OF TRANSPORTATION ;
(5) A REPRESENTATIVE OF THE STATE HIGHWAY ADMINISTRATION ,
APPOINTED BY THE ADMINISTRATOR OF THE STATE HIGHWAY ADMINISTRATION ;
AND
WES MOORE, Governor Ch. 669
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(6) A REPRESENTATIVE OF THE MARYLAND INSURANCE
ADMINISTRATION , APPOINTED BY THE INSURANCE COMMISSIONER .
(D) (1) A MEMBER OF THE COMMITTEE SHALL BE AP POINTED FOR A
3–YEAR TERM.
(2) A MEMBER OF THE COMMITTEE MAY BE REAP POINTED AT THE
END OF THE MEMBER ’S TERM.
(E) THE DEPARTMENT SHALL PROV IDE STAFF SUPPORT FOR THE
COMMITTEE.
(F) A MEMBER OF THE COMMITTEE:
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE
COMMITTEE; BUT
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET .
(G) THE COMMITTEE SHALL :
(1) ON OR BEFORE DECEMBER 1, 2023, RECOMMEND APPROVED
RATES TO THE DEPARTMENT THAT SHOUL D BE CHARGED FOR POL ICE–INITIATED
TOWING AND RECOVERY SERVICES;
(2) MEET AT LEAST ONCE E VERY 3 YEARS TO REVIEW AND CONSIDER
MODIFICATION OF THE APPROVED RATES ;
(3) REQUEST INFORMATION AND COMMENTS FROM OTHER PARTIES
OF INTEREST TO ASSIS T WITH ITS WORK;
(4) RECOMMEND TO THE DEPARTMENT A PROCESS FOR RESOLVING
TOWING COMPLAINTS ; AND
(5) MAKE ANY ADDITIONAL RECOMMENDATIONS TO T HE
DEPARTMENT THAT THE COMMITTEE CONSIDERS A PPROPRIATE.
(H) THE DEPARTMENT SHALL PROV IDE STAFF SUPPORT TO THE
COMMITTEE.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Ch. 669 2023 LAWS OF MARYLAND
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Article – Commercial Law
16A–101.
(a) (1) In this title the following words have the meanings indicated.
(2) “Authorized tow company” has the meaning stated in §
2–314 of the Public Safety Article.
(3) “Heavy–duty towing” has the meaning stated in § 2–314 of the Public
Safety Article.
(4) “Medium–duty towing” has the meaning stated in § 2–314 of the Public
Safety Article.
(5) “Police–initiated towing” has the meaning stated in § 2–314 of the
Public Safety Article.
(6) “Tow list” has the meaning stated in § 2–314 of the Public Safety
Article.
(b) (1) Title 16 of this article does not apply to police–initiated towing services
by an authorized tow company.
(2) Police–initiated towing does not create a lien or security interest for the
authorized tow company in any equipment, vehicle, or cargo.
(c) An authorized tow company shall provide a vehicle owner or operator or the
owner’s designee with reasonable access to a vehicle that is the subject of a police–initiated
towing so that the vehicle owner or operator or the owner’s designee may access and collect
any personal property or cargo contained in the vehicle, regardless of whether any payment
has been made for the authorized tow company’s services.
(d) (1) If there is no dispute as to the fees assessed by the authorized tow
company for the police–initiated towing of a vehicle:
(i) The vehicle owner or operator or the owner’s designee shall pay
the authorized tow company’s invoice; and
(ii) The authorized tow company shall release a vehicle and any
cargo that was the subject of a police–initiated towing immediately.
(2) If there is a genuine dispute as to the reasonableness or amount of the
fees assessed by an authorized tow company:
WES MOORE, Governor Ch. 669
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(i) The authorized tow company shall release the cargo immediately
to the owner or the owner’s authorized agent in accordance with this subsection on
submission of:
1. Proof of ownership if the cargo does not belong to the
transportation company; or
2. If the cargo belongs to the transportation company:
A. A letter from the insurance company stating there is
coverage for the relevant claim or accident and including, at minimum, a claim number,
policy number, and policy limit; or
B. If an insurance policy required under item 2 of this item is
not high enough to cover the cost of the cargo clean–up, a signed letter of guarantee from
the transportation company; and
(ii) Beginning [October 1, 2023,] MARCH 1, 2024, the authorized
tow company shall release the vehicle to the owner or the owner’s authorized agent on
payment of 20% of the invoice by the vehicle owner or operator or the owner’s designee.
(3) A payment under paragraph (2)(ii) of this subsection does not eliminate
the remainder of the financial obligation to the authorized tow company.
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Commercial Law
16A–101.
(d) (1) If there is no dispute as to the fees assessed by the authorized tow
company for the police–initiated towing of a vehicle:
(i) The vehicle owner or operator or the owner’s designee shall pay
the authorized tow company’s invoice; and
(ii) The authorized tow company shall release a vehicle and any
cargo that was the subject of a police–initiated towing immediately.
(2) If there is a genuine dispute as to the reasonableness or amount of the
fees assessed by an authorized tow company[:
(i) The] THE authorized tow company shall release the cargo
immediately to the owner or the owner’s authorized agent in accordance with this
subsection on submission of: Ch. 669 2023 LAWS OF MARYLAND
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[1.] (I) Proof of ownership if the cargo does not belong to the
transportation company; or
[2.] (II) If the cargo belongs to the transportation company:
[A.] 1. A letter from the insurance company stating there
is coverage for the relevant claim or accident and including, at minimum, a claim number,
policy number, and policy limit; or
[B.] 2. If an insurance policy required under item 2 of this
item is not high enough to cover the cost of the cargo clean–up, a signed letter of guarantee
from the transportation company[; and
(ii) Beginning March 1, 2024, the authorized tow company shall
release the vehicle to the owner or the owner’s authorized agent on payment of 20% of the
invoice by the vehicle owner or operator or the owner’s designee.
(3) A payment under paragraph (2)(ii) of this subsection does not eliminate
the remainder of the financial obligation to the authorized tow company].
SECTION 4. AND BE IT FURTHER ENACTED, That:
(a) Section 3 of this Act is contingent upon the receipt of notice from the
Department of State Police that approved rates for medium– and heavy–duty towing and
recovery have been adopted as required by § 2–304(d)(2) of the Public Safety Article as
enacted by Section 1 of this Act.
(b) Within 5 days after the approved rates for medium– and heavy–duty towing
and recovery are adopted, the Maryland Department of State Police shall notify the
Department of Legislative Services.
(c) If notice of the adoption of the approved rates is received by the Department
of Legislative Services, Section 3 of this Act shall take effect on the date notice is received
by the Department of Legislative Services in accordance with subsection (b) of this section.
(d) If Section 3 of this Act takes effect, Section 2 of this Act, with no further action
by the General Assembly, shall be null and void.
SECTION 5. AND BE IT FURTHER ENACTED, That, subject to Section 4 of this
Act, this Act shall take effect July 1, 2023.
Approved by the Governor, May 16, 2023.