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.
*sb0927*
SENATE BILL 927
E4 3lr2991
CF HB 1002
By: Senator Waldstreicher
Introduced and read first time: February 16, 2023
Assigned to: Rules
Re–referred to: Judicial Proceedings, March 6, 2023
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 17, 2023
CHAPTER ______
AN ACT concerning 1
Commercial Vehicles – Police–Initiated Towing – Alterations 2
FOR the purpose of altering certain provisions related to the rates the Department of State 3
Police sets for tow companies involved in certain police–initiated towing; 4
establishing the Committee on Rate Setting and Complaint Resolution for 5
Police–Initiated Medium–Duty and Heavy–Duty Towing and Recovery; and 6
generally relating to the police–initiated towing of commercial vehicles. 7
BY repealing and reenacting, with amendments, 8
Article – Public Safety 9
Section 2–314 10
Annotated Code of Maryland 11
(2022 Replacement Volume) 12
BY adding to 13
Article – Public Safety 14
Section 2–314.1 15
Annotated Code of Maryland 16
(2022 Replacement Volume) 17
BY repealing and reenacting, with amendments, 18
Article – Commercial Law 19
Section 16A–101 20
Annotated Code of Maryland 21 2 SENATE BILL 927
(2013 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Commercial Law 3
Section 16A–101(d) 4
Annotated Code of Maryland 5
(2013 Replacement Volume and 2022 Supplement) 6
(As enacted by Section 2 of this Act) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Public Safety 10
2–314. 11
(a) (1) In this section the following words have the meanings indicated. 12
(2) “APPROVED RATES ” MEANS THE MAXIMUM RA TES APPROVED BY 13
THE DEPARTMENT THAT APPLY TO POLICE–INITIATED TOWING AND RECOVERY 14
SERVICES. 15
[(2)] (3) “Authorized tow company” means a company providing towing 16
and recovery services at the request of the Department and designated on the tow list. 17
[(3)] (4) “Heavy–duty towing” means towing and recovery of a vehicle 18
including trailers and semitrailers with a gross vehicle weight rating over 26,000 pounds. 19
[(4)] (5) “Medium–duty towing” means towing and recovery of a vehicle 20
including trailers or semitrailers with a gross vehicle weight rating from over 10,000 21
pounds to 26,000 pounds. 22
[(5)] (6) “Per pound billing” means a method of calculating a fee for 23
towing and recovery services using a formula that considers the weight of the vehicle, 24
equipment, or cargo that is the subject of the towing and recovery and multiplies the weight 25
of the vehicle, equipment, or cargo by a monetary amount. 26
[(6)] (7) “Police–initiated towing” means the towing or recovery of a 27
commercial motor vehicle which was authorized, requested, or dispatched by the 28
Department. 29
(8) “RECOVERY” MEANS WINCHING , HOISTING, UP–RIGHTING, 30
REMOVING, OR OTHERWISE RELOCAT ING A VEHICLE WHEN T HE VEHICLE IS FOUND 31
IN A LOCATION, STATE, OR POSITION IN WHICH IT CANNOT BE REMOVED FROM THE 32
LOCATION, STATE, OR POSITION USING ON LY THE VEHICLE ’S OWN POWER , EVEN IF 33
IT WERE IN COMPLETE OPERATING CONDITION . 34 SENATE BILL 927 3
[(7)] (9) “Tow list” means the list of towing businesses authorized by the 1
Department to perform police–initiated towing services of disabled or abandoned 2
commercial vehicles within the Department’s jurisdiction. 3
(10) “TOWING” MEANS USING ANOTHER VEHICLE TO MOVE OR 4
REMOVE A VEHICLE . 5
(b) The Department shall: 6
(1) establish and maintain a tow list, by county, of qualifying tow 7
companies for use by the Department in carrying out the duties of this subtitle; and 8
(2) make the tow list available to the public on request. 9
(c) The Department may adopt regulations to establish standards for tow 10
companies, including application procedures and minimum qualification requirements, and 11
must include on the list all qualifying tow companies. 12
(d) The Department shall: 13
(1) [require a tow company applying to the Department’s tow list for 14
medium– and heavy–duty towing to submit a rate sheet that does not include per pound 15
billing; 16
(2)] require a tow company that [makes an application under item (1) of this 17
subsection] IS ON THE TOW LIST to ban the use of per pound billing by October 1, 2023; 18
[(3) require the Department to make each tow company’s rate sheet 19
required under item (1) of this subsection available on request; and] 20
(2) ESTABLISH THE APPROV ED RATES FOR MEDIUM – AND 21
HEAVY–DUTY TOWING AND RECO VERY THAT MAY BE CHA RGED BY A TOW COMPAN Y 22
ON THE TOW LIST BY JANUARY 1, 2024; AND 23
[(4)] (3) develop a process to receive, investigate, and adjudicate 24
complaints from a vehicle owner or operator or the owner’s designee against an authorized 25
tow company regarding the police–initiated towing of a commercial motor vehicle, including 26
a process to suspend or remove an authorized tow company from the tow list. 27
(e) An authorized tow company may charge less than but may not charge more 28
than the APPROVED rates [on the rate sheet submitted to] AUTHORIZED BY the 29
Department for a police–initiated towing AND RECOV ERY. 30
4 SENATE BILL 927
(f) If a vehicle owner or the owner’s designee requests the use of a specific towing 1
company, the Department shall honor that request and allow the vehicle owner to engage 2
the services of the requested towing company except when: 3
(1) the requested towing company cannot arrive at the location of the 4
vehicle within a reasonable time period; 5
(2) a traffic safety problem exists and the requested towing company 6
cannot arrive at the location within 30 minutes of a police employee’s arrival at the location 7
of the vehicle; or 8
(3) the vehicle is disabled in the roadway as a result of a collision or vehicle 9
fire and the requested towing company cannot arrive within 30 minutes of a police 10
employee’s arrival at the location of the vehicle. 11
2–314.1. 12
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(2) “APPROVED RATES ” HAS THE MEANING STAT ED IN § 2–314 OF 15
THIS SUBTITLE. 16
(3) “COMMITTEE” MEANS THE COMMITTEE ON RATE SETTING AND 17
COMPLAINT RESOLUTION FOR POLICE–INITIATED MEDIUM–DUTY AND 18
HEAVY–DUTY TOWING AND RECOVERY. 19
(4) “POLICE–INITIATED TOWING ” HAS THE MEANING STAT ED IN § 20
2–314 OF THIS SUBTITLE . 21
(5) “RECOVERY” HAS THE MEANING STAT ED IN § 2–314 OF THIS 22
SUBTITLE. 23
(B) THERE IS A COMMITTEE ON RATE SETTING AND COMPLAINT 24
RESOLUTION FOR POLICE–INITIATED MEDIUM–DUTY AND HEAVY–DUTY TOWING 25
AND RECOVERY. 26
(C) THE COMMITTEE CONSISTS OF THE FOLLOWING MEMBER S: 27
(1) TWO REPRESENTATIVES OF THE TOWING AND RECOVERY 28
PROFESSIONALS OF MARYLAND, APPOINTED BY THE PRESIDENT OF THE TOWING 29
AND RECOVERY PROFESSIONALS OF MARYLAND; 30
SENATE BILL 927 5
(2) A REPRESENTATIVE OF THE MARYLAND MOTOR TRUCK 1
ASSOCIATION, APPOINTED BY THE PRESIDENT OF THE MARYLAND MOTOR TRUCK 2
ASSOCIATION; 3
(3) A REPRESENTATIVE OF THE OWNER–OPERATOR INDEPENDENT 4
DRIVERS ASSOCIATION, APPOINTED BY THE PRESIDENT OF THE 5
OWNER–OPERATOR INDEPENDENT DRIVERS ASSOCIATION; 6
(4) A REPRESENTATIVE OF THE MARYLAND TRANSPORTATION 7
AUTHORITY POLICE, APPOINTED BY THE SECRETARY OF TRANSPORTATION ; 8
(5) A REPRESENTATIVE OF THE STATE HIGHWAY ADMINISTRATION , 9
APPOINTED BY THE ADMINISTRATOR OF THE STATE HIGHWAY ADMINISTRATION ; 10
AND 11
(6) A REPRESENTATIVE OF THE MARYLAND INSURANCE 12
ADMINISTRATION , APPOINTED BY THE INSURANCE COMMISSIONER . 13
(D) (1) A MEMBER OF THE COMMITTEE SHALL BE AP POINTED FOR A 14
3–YEAR TERM. 15
(2) A MEMBER OF THE COMMITTEE MAY BE REAP POINTED AT THE 16
END OF THE MEMBER ’S TERM. 17
(E) THE DEPARTMENT SHALL PROV IDE STAFF SUPPORT FOR THE 18
COMMITTEE. 19
(F) A MEMBER OF THE COMMITTEE: 20
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 21
COMMITTEE; BUT 22
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 23
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 24
(G) THE COMMITTEE SHALL : 25
(1) ON OR BEFORE DECEMBER 1, 2023, RECOMMEND APPROVED 26
RATES TO THE DEPARTMENT THAT SHOUL D BE CHARGED FOR POL ICE–INITIATED 27
TOWING AND RECOVERY SERVICES; 28
(2) MEET AT LEAST ONCE E VERY 3 YEARS TO REVIEW AND CONSIDER 29
MODIFICATION OF THE APPROVED RATES ; 30
6 SENATE BILL 927
(3) REQUEST INFORMATION AND COMMEN TS FROM OTHER PARTIE S 1
OF INTEREST TO ASSIS T WITH ITS WORK; 2
(4) RECOMMEND TO THE DEPARTMENT A PROCESS FOR RESOLVING 3
TOWING COMPLAINTS ; AND 4
(5) MAKE ANY ADDITIONAL RECOMMENDATIONS TO T HE 5
DEPARTMENT THAT THE COMMITTEE CONSIDERS A PPROPRIATE. 6
(H) THE DEPARTMENT SHALL PROV IDE STAFF SUPPORT TO THE 7
COMMITTEE. 8
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
as follows: 10
Article – Commercial Law 11
16A–101. 12
(a) (1) In this title the following words have the meanings indicated. 13
(2) “Authorized tow company” has the meaning stated in § 14
2–314 of the Public Safety Article. 15
(3) “Heavy–duty towing” has the meaning stated in § 2–314 of the Public 16
Safety Article. 17
(4) “Medium–duty towing” has the meaning stated in § 2–314 of the Public 18
Safety Article. 19
(5) “Police–initiated towing” has the meaning stated in § 2–314 of the 20
Public Safety Article. 21
(6) “Tow list” has the meaning stated in § 2–314 of the Public Safety 22
Article. 23
(b) (1) Title 16 of this article does not apply to police–initiated towing services 24
by an authorized tow company. 25
(2) Police–initiated towing does not create a lien or security interest for the 26
authorized tow company in any equipment, vehicle, or cargo. 27
(c) An authorized tow company shall provide a vehicle owner or operator or the 28
owner’s designee with reasonable access to a vehicle that is the subject of a police–initiated 29
towing so that the vehicle owner or operator or the owner’s designee may access and collect 30 SENATE BILL 927 7
any personal property or cargo contained in the vehicle, regardless of whether any payment 1
has been made for the authorized tow company’s services. 2
(d) (1) If there is no dispute as to the fees assessed by the authorized tow 3
company for the police–initiated towing of a vehicle: 4
(i) The vehicle owner or operator or the owner’s designee shall pay 5
the authorized tow company’s invoice; and 6
(ii) The authorized tow company shall release a vehicle and any 7
cargo that was the subject of a police–initiated towing immediately. 8
(2) If there is a genuine dispute as to the reasonableness or amount of the 9
fees assessed by an authorized tow company: 10
(i) The authorized tow company shall release the cargo immediately 11
to the owner or the owner’s authorized agent in accordance with this subsection on 12
submission of: 13
1. Proof of ownership if the cargo does not belong to the 14
transportation company; or 15
2. If the cargo belongs to the transportation company: 16
A. A letter from the insurance company stating there is 17
coverage for the relevant claim or accident and including, at minimum, a claim number, 18
policy number, and policy limit; or 19
B. If an insurance policy required under item 2 of this item is 20
not high enough to cover the cost of the cargo clean–up, a signed letter of guarantee from 21
the transportation company; and 22
(ii) Beginning [October 1, 2023,] MARCH 1, 2024, the authorized 23
tow company shall release the vehicle to the owner or the owner’s authorized agent on 24
payment of 20% of the invoice by the vehicle owner or operator or the owner’s designee. 25
(3) A payment under paragraph (2)(ii) of this subsection does not eliminate 26
the remainder of the financial obligation to the authorized tow company. 27
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
as follows: 29
Article – Commercial Law 30
16A–101. 31
8 SENATE BILL 927
(d) (1) If there is no dispute as to the fees assessed by the authorized tow 1
company for the police–initiated towing of a vehicle: 2
(i) The vehicle owner or operator or the owner’s designee shall pay 3
the authorized tow company’s invoice; and 4
(ii) The authorized tow company shall release a vehicle and any 5
cargo that was the subject of a police–initiated towing immediately. 6
(2) If there is a genuine dispute as to the reasonableness or amount of the 7
fees assessed by an authorized tow company[: 8
(i) The] THE authorized tow company shall release the cargo 9
immediately to the owner or the owner’s authorized agent in accordance with this 10
subsection on submission of: 11
[1.] (I) Proof of ownership if the cargo does not belong to 12
the transportation company; or 13
[2.] (II) If the cargo belongs to the transportation company: 14
[A.] 1. A letter from the insurance company stating there 15
is coverage for the relevant claim or accident and including, at minimum, a claim number, 16
policy number, and policy limit; or 17
[B.] 2. If an insurance policy required under item 2 of this 18
item is not high enough to cover the cost of the cargo clean–up, a signed letter of guarantee 19
from the transportation company[; and 20
(ii) Beginning March 1, 2024, the authorized tow company shall 21
release the vehicle to the owner or the owner’s authorized agent on payment of 20% of the 22
invoice by the vehicle owner or operator or the owner’s designee. 23
(3) A payment under paragraph (2)(ii) of this subsection does not eliminate 24
the remainder of the financial obligation to the authorized tow company]. 25
SECTION 4. AND BE IT FURTHER ENACTED, That: 26
(a) Section 3 of this Act is contingent upon the receipt of notice from the 27
Department of State Police that approved rates for medium– and heavy–duty towing and 28
recovery have been adopted as required by § 2–304(d)(2) of the Public Safety Article as 29
enacted by Section 1 of this Act. 30
(b) Within 5 days after the approved rates for medium– and heavy–duty towing 31
and recovery are adopted, the Maryland Department of State Police shall notify the 32
Department of Legislative Services. 33 SENATE BILL 927 9
(c) If notice of the adoption of the approved rates is received by the Department 1
of Legislative Services, Section 3 of this Act shall take effect on the date notice is received 2
by the Department of Legislative Services in accordance with subsection (b) of this section. 3
(d) If Section 3 of this Act takes effect, Section 2 of this Act, with no further action 4
by the General Assembly, shall be null and void. 5
SECTION 5. AND BE IT FURTHER ENACTED, That, subject to Section 4 of this 6
Act, this Act shall take effect July 1, 2023. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.