EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0191* HOUSE BILL 191 R7 5lr1222 (PRE–FILED) CF SB 40 By: Delegate Foley Requested: October 15, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Vehicle Laws – Towed, Removed, or Abandoned Vehicles – Electronic Notice to 2 Owner 3 FOR the purpose of authorizing a person who tows or removes a vehicle from a parking lot 4 to provide electronic notice of the tow or removal to the vehicle owner through the 5 Motor Vehicle Administration under certain circumstances; authorizing a police 6 department that takes an abandoned vehicle into custody to send an electronic notice 7 to the last known registered owner of the vehicle through the Administration under 8 certain circumstances; and generally relating to the electronic notice to vehicle 9 owners for towed, removed, or abandoned vehicles. 10 BY repealing and reenacting, with amendments, 11 Article – Transportation 12 Section 21–10A–04, 25–204, and 25–205 13 Annotated Code of Maryland 14 (2020 Replacement Volume and 2024 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Transportation 18 21–10A–04. 19 (a) Unless otherwise set by local law, a person who undertakes the towing or 20 removal of a vehicle from a parking lot: 21 (1) May not charge the owner of the vehicle, the owner’s agent, the insurer 22 of record, or any secured party more than: 23 2 HOUSE BILL 191 (i) Twice the amount of the total fees normally charged or 1 authorized by the political subdivision for the public safety impound towing of vehicles; 2 (ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 3 the fee normally charged or authorized by the political subdivision from which the vehicle 4 was towed for the daily storage of impounded vehicles; 5 (iii) If a political subdivision does not establish a fee limit for the 6 public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 7 recovering a vehicle and $30 per day for vehicle storage; and 8 (iv) Subject to subsection (b) of this section, the actual cost of 9 providing notice under this section; 10 (2) Shall notify the police department in the jurisdiction where the parking 11 lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 12 shall provide the following information: 13 (i) A description of the vehicle including the vehicle’s registration 14 plate number and vehicle identification number; 15 (ii) The date and time the vehicle was towed or removed; 16 (iii) The reason the vehicle was towed or removed; and 17 (iv) The locations from which and to which the vehicle was towed or 18 removed; 19 (3) (i) [Shall] SUBJECT TO ITEMS (II) AND (III) OF THIS ITEM, 20 SHALL notify the owner and[, except as provided in item (ii) of this item,] the insurer of 21 record and any secured party by certified mail, return receipt requested, and first–class 22 mail within 7 days, exclusive of days that the towing business is closed, after towing or 23 removing the vehicle, and shall provide the same information required in a notice to a police 24 department under item (2) of this subsection; [and] 25 (II) MAY PROVIDE NOTICE REQUI RED UNDER ITEM (I) OF THIS 26 ITEM TO THE OWNER ELECTRO NICALLY THROUGH THE ADMINISTRATION IF: 27 1. THE ADMINISTRATION SENDS THE NOTICE TO THE 28 OWNER USING THE E –MAIL ADDRESS THE OWNER PROVIDED TO THE 29 ADMINISTRATION , AS SHOWN IN THE ADMINISTRATION ’S RECORDS; AND 30 2. THE TOWER SENDS A NOT ICE BY CERTIFIED MAIL , 31 RETURN RECEIPT REQUE STED, AND FIRST–CLASS MAIL, TO THE OWNER IF THE 32 OWNER DOES NOT RESPOND WITHIN 7 DAYS AFTER THE ELECTRONIC NOTICE WAS 33 SENT BY THE ADMINISTRATION ; AND 34 HOUSE BILL 191 3 [(ii)] (III) May provide notice required under item (i) of this item to 1 any secured party or insurer of record electronically, if that form of notice is agreed to by 2 the tower and the secured party or insurer of record in writing or by electronic 3 communication; 4 (4) Shall provide to the owner, any secured party, and the insurer of record 5 the itemized actual costs of providing notice under this section; 6 (5) Before towing or removing the vehicle, shall have authorization of the 7 parking lot owner which shall include: 8 (i) The name of the person authorizing the tow or removal; 9 (ii) A statement that the vehicle is being towed or removed at the 10 request of the parking lot owner; and 11 (iii) Photographic evidence of the violation or event that precipitated 12 the towing of the vehicle; 13 (6) Shall obtain commercial liability insurance in the amount required by 14 federal law for transporting property in interstate or foreign commerce to cover the cost of 15 any damage to the vehicle resulting from the person’s negligence; 16 (7) May not employ or otherwise compensate individuals, commonly 17 referred to as “spotters”, whose primary task is to report the presence of unauthorized 18 parked vehicles for the purposes of towing or removal, and impounding; 19 (8) May not pay any remuneration to the owner, agent, or employee of the 20 parking lot; and 21 (9) May not tow a vehicle solely for a violation of failure to display a valid 22 current registration under § 13–411 of this article until 72 hours after a notice of violation 23 is placed on the vehicle. 24 (b) A person may not charge for the actual cost of providing notice under 25 subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 26 record, or any secured party retakes possession of the vehicle within 48 hours after the 27 vehicle was received at the storage facility. 28 (c) The Administration shall: 29 (1) ADOPT REGULATIONS TO ALLOW FOR ELECTRONIC NOTIFICATION 30 TO VEHICLE OWNERS UNDER SUBSECTION (A)(3)(II) OF THIS SECTION; 31 4 HOUSE BILL 191 (2) Establish and maintain a database containing the proper address for 1 providing notice to an insurer under subsection [(a)(3)] (A)(3)(III) of this section for each 2 insurer authorized to write a vehicle liability insurance policy in the State; and 3 [(2)] (3) Make the database REQUIRED UNDER ITEM (2) OF THIS 4 SUBSECTION available to any tower free of charge. 5 (d) An agreement to provide notice electronically made in accordance with 6 subsection [(a)(3)(ii)] (A)(3)(III) of this section shall remain in effect until terminated by 7 either party. 8 25–204. 9 (a) (1) As soon as reasonably possible and within 7 days at most after it takes 10 an abandoned vehicle into custody, a police department shall send a notice, by certified 11 mail, return receipt requested, bearing a postmark from the United States Postal Service, 12 to: 13 (i) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 14 THE last known registered owner of the vehicle; and 15 (ii) Subject to paragraph [(2)] (3) of this subsection, each secured 16 party, as shown on the records of the Administration. 17 (2) A POLICE DEPARTMENT MA Y NOTIFY THE LAST KNOWN 18 REGISTERED OWNER ELECTRONICALLY THROUGH THE ADMINISTRATION IF: 19 (I) THE ADMINISTRATION SENDS THE NOTI CE TO THE OWNER 20 USING THE E–MAIL ADDRESS THE OWNER PROVIDED TO THE ADMINISTRATION , AS 21 SHOWN IN THE RECORDS OF THE ADMINISTRATION ; AND 22 (II) THE POLICE DEPARTMENT SENDS THE OWNER NOTICE BY 23 CERTIFIED MAIL , RETURN RECEIPT REQUE STED, AND FIRST–CLASS MAIL, IF THE 24 OWNER DOES NOT RESPOND WIT HIN 7 DAYS AFTER THE ELECTRONIC NOTIC E WAS 25 SENT BY THE ADMINISTRATION . 26 [(2)] (3) A police department may send notice to any secured party 27 electronically, if that form of notice is agreed to by the police department, the tower, and 28 the secured party in writing or by electronic communication. 29 (b) The notice shall: 30 (1) State that the abandoned vehicle has been taken into custody; 31 HOUSE BILL 191 5 (2) Describe the year, make, model, and vehicle identification number of 1 the vehicle; 2 (3) Give the location of the facility where the vehicle is held; 3 (4) (i) Inform the owner and secured party of the owner’s and secured 4 party’s right to reclaim the vehicle within 3 weeks after the date of the notice, on payment 5 of all towing, preservation, and storage charges resulting from taking or placing the vehicle 6 in custody; or 7 (ii) In Baltimore City and Montgomery County, subject to subsection 8 (a)(2) AND (3) of this section, be sent by certified mail, return receipt requested, and inform 9 the owner and secured party of the owner’s and secured party’s right to reclaim the vehicle 10 within 11 working days after the receipt of the notice, on payment of all towing, 11 preservation, and storage charges resulting from taking or placing the vehicle in custody; 12 and 13 (5) State that the failure of the owner or secured party to exercise this right 14 in the time provided is: 15 (i) A waiver by the owner or secured party of all of the owner’s or 16 secured party’s right, title, and interest in the vehicle; 17 (ii) A consent to the sale of the vehicle at public auction; and 18 (iii) A consent by the owner other than a lessor to the retention of the 19 vehicle for public purposes as provided in § 25–207 of this subtitle. 20 (c) In Baltimore City, Prince George’s County, and Montgomery County, a police 21 department or its agent may seek to recover costs of impoundment, storage, and sale of a 22 vehicle as provided by §§ 25–206.1 and 25–206.2 of this subtitle. If a police department or 23 its agent seeks to apply the provisions of §§ 25–206.1 and 25–206.2 of this subtitle, the 24 notice required by this section shall also state that the failure of the owner or secured party 25 to exercise the right to reclaim the vehicle in the time provided may cause: 26 (1) Continuing liability of the owner for costs of: 27 (i) Impoundment; 28 (ii) Storage within the chargeable limit for storage as provided in § 29 25–206.1(b) of this subtitle; and 30 (iii) Sale of the vehicle; and 31 (2) Denial of any application by the owner to renew the registration of any 32 vehicle as required by § 25–206.2 of this subtitle. 33 6 HOUSE BILL 191 (D) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO ALLOW FOR 1 ELECTRONIC NOTIFICATION TO THE LAST KNOWN RE GISTERED OWNER OF A 2 VEHICLE UNDER SUBSECTION (A)(2) OF THIS SECTION. 3 25–205. 4 (a) This section applies if: 5 (1) The identity of the last registered owner of an abandoned vehicle cannot 6 be determined; 7 (2) The registration of the vehicle gives no address for the owner; 8 (3) It is impossible to determine with reasonable certainty the identity and 9 address of each secured party; 10 (4) The certified mail notice required by § 25–204 of this subtitle is 11 returned as undeliverable; or 12 (5) The electronic [notice] NOTICES authorized under [§ 25–204] § 13 25–204(A)(2) OR (3) of this subtitle [is] ARE not acknowledged or [is] ARE returned as 14 undeliverable. 15 (b) Under one of the conditions described in subsection (a) of this section, a police 16 department that takes an abandoned vehicle into custody shall give the required notice by 17 posting a notice complying with the provisions of subsection (c) of this section in the circuit 18 court of the county where the abandoned vehicle was found. 19 (c) The notice: 20 (1) May contain multiple listings of abandoned vehicles; 21 (2) Shall contain the information required by § 25–204 of this subtitle; and 22 (3) Shall be posted: 23 (i) Within 15 days of the taking into custody of the vehicle; or 24 (ii) If the notice by posting under this section is made because of the 25 return as undeliverable of a prior notice by certified mail, return receipt requested, bearing 26 a postmark from the United States Postal Service, within 7 days of the return of that prior 27 notice. 28 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29 October 1, 2025. 30