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.
*sb0040*
SENATE BILL 40
R7 5lr1656
(PRE–FILED) CF HB 191
By: Senator Muse
Requested: November 1, 2024
Introduced and read first time: January 8, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: January 29, 2025
CHAPTER ______
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
2 SENATE BILL 40
(a) Unless otherwise set by local law, a person who undertakes the towing or 1
removal of a vehicle from a parking lot: 2
(1) May not charge the owner of the vehicle, the owner’s agent, the insurer 3
of record, or any secured party more than: 4
(i) Twice the amount of the total fees normally charged or 5
authorized by the political subdivision for the public safety impound towing of vehicles; 6
(ii) Notwithstanding § 16–207(f)(1) of the Commercial Law Article, 7
the fee normally charged or authorized by the political subdivision from which the vehicle 8
was towed for the daily storage of impounded vehicles; 9
(iii) If a political subdivision does not establish a fee limit for the 10
public safety towing, recovery, or storage of impounded vehicles, $250 for towing and 11
recovering a vehicle and $30 per day for vehicle storage; and 12
(iv) Subject to subsection (b) of this section, the actual cost of 13
providing notice under this section; 14
(2) Shall notify the police department in the jurisdiction where the parking 15
lot is located within 1 hour after towing or removing the vehicle from the parking lot, and 16
shall provide the following information: 17
(i) A description of the vehicle including the vehicle’s registration 18
plate number and vehicle identification number; 19
(ii) The date and time the vehicle was towed or removed; 20
(iii) The reason the vehicle was towed or removed; and 21
(iv) The locations from which and to which the vehicle was towed or 22
removed; 23
(3) (i) [Shall] SUBJECT TO ITEMS (II) AND (III) OF THIS ITEM, 24
SHALL notify the owner and[, except as provided in item (ii) of this item,] the insurer of 25
record and any secured party by certified mail, return receipt requested, and first–class 26
mail within 7 days, exclusive of days that the towing business is closed, after towing or 27
removing the vehicle, and shall provide the same information required in a notice to a police 28
department under item (2) of this subsection; [and] 29
(II) MAY PROVIDE NOTICE RE QUIRED UNDER ITEM (I) OF THIS 30
ITEM TO THE OWNER EL ECTRONICALLY THROUGH THE ADMINISTRATION IF : 31
SENATE BILL 40 3
1. THE ADMINISTRATION SENDS THE NOTICE TO THE 1
OWNER USING THE E –MAIL ADDRESS THE OWN ER PROVIDED TO THE 2
ADMINISTRATION , AS SHOWN IN THE ADMINISTRATION ’S RECORDS; AND 3
2. THE TOWER SENDS A NOT ICE BY CERTIFIED MAI L, 4
RETURN RECEIPT REQUE STED, AND FIRST–CLASS MAIL, TO THE OWNER IF THE 5
OWNER DOES NOT RESPOND WITHIN 7 DAYS AFTER THE ELECT RONIC NOTICE WAS 6
SENT BY THE ADMINISTRATION ; AND 7
[(ii)] (III) May provide notice required under item (i) of this item to 8
any secured party or insurer of record electronically, if that form of notice is agreed to by 9
the tower and the secured party or insurer of record in writing or by electronic 10
communication; 11
(4) Shall provide to the owner, any secured party, and the insurer of record 12
the itemized actual costs of providing notice under this section; 13
(5) Before towing or removing the vehicle, shall have authorization of the 14
parking lot owner which shall include: 15
(i) The name of the person authorizing the tow or removal; 16
(ii) A statement that the vehicle is being towed or removed at the 17
request of the parking lot owner; and 18
(iii) Photographic evidence of the violation or event that precipitated 19
the towing of the vehicle; 20
(6) Shall obtain commercial liability insurance in the amount required by 21
federal law for transporting property in interstate or foreign commerce to cover the cost of 22
any damage to the vehicle resulting from the person’s negligence; 23
(7) May not employ or otherwise compensate individuals, commonly 24
referred to as “spotters”, whose primary task is to report the presence of unauthorized 25
parked vehicles for the purposes of towing or removal, and impounding; 26
(8) May not pay any remuneration to the owner, agent, or employee of the 27
parking lot; and 28
(9) May not tow a vehicle solely for a violation of failure to display a valid 29
current registration under § 13–411 of this article until 72 hours after a notice of violation 30
is placed on the vehicle. 31
(b) A person may not charge for the actual cost of providing notice under 32
subsection (a)(1)(iv) of this section if the vehicle owner, the owner’s agent, the insurer of 33 4 SENATE BILL 40
record, or any secured party retakes possession of the vehicle within 48 hours after the 1
vehicle was received at the storage facility. 2
(c) The Administration shall: 3
(1) ADOPT REGULATIONS TO ALLOW FOR ELECTRONIC NOTIFICATION 4
TO VEHICLE OWNERS UN DER SUBSECTION (A)(3)(II) OF THIS SECTION; 5
(2) Establish and maintain a database containing the proper address for 6
providing notice to an insurer under subsection [(a)(3)] (A)(3)(III) of this section for each 7
insurer authorized to write a vehicle liability insurance policy in the State; and 8
[(2)] (3) Make the database REQUIRED UNDER ITEM (2) OF THIS 9
SUBSECTION available to any tower free of charge. 10
(d) An agreement to provide notice electronically made in accordance with 11
subsection [(a)(3)(ii)] (A)(3)(III) of this section shall remain in effect until terminated by 12
either party. 13
25–204. 14
(a) (1) As soon as reasonably possible and within 7 days at most after it takes 15
an abandoned vehicle into custody, a police department shall send a notice, by certified 16
mail, return receipt requested, bearing a postmark from the United States Postal Service, 17
to: 18
(i) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 19
THE last known registered owner of the vehicle; and 20
(ii) Subject to paragraph [(2)] (3) of this subsection, each secured 21
party, as shown on the records of the Administration. 22
(2) A POLICE DEPARTMENT MA Y NOTIFY THE LAST KN OWN 23
REGISTERED OWNER ELE CTRONICALLY THROUGH THE ADMINISTRATION IF: 24
(I) THE ADMINISTRATION SENDS THE NOTICE TO THE OW NER 25
USING THE E–MAIL ADDRESS THE OWN ER PROVIDED TO THE ADMINISTRATION , AS 26
SHOWN IN THE RECORDS OF THE ADMINISTRATION ; AND 27
(II) THE POLICE DEPARTMENT SENDS THE OWNER NOTI CE BY 28
CERTIFIED MA IL, RETURN RECEIPT REQUE STED, AND FIRST–CLASS MAIL, IF THE 29
OWNER DOES NOT RESPO ND WITHIN 7 DAYS AFTER THE ELECT RONIC NOTICE WAS 30
SENT BY THE ADMINISTRATION . 31
SENATE BILL 40 5
[(2)] (3) A police department may send notice to any secured party 1
electronically, if that form of notice is agreed to by the police department, the tower, and 2
the secured party in writing or by electronic communication. 3
(b) The notice shall: 4
(1) State that the abandoned vehicle has been taken into custody; 5
(2) Describe the year, make, model, and vehicle identification number of 6
the vehicle; 7
(3) Give the location of the facility where the vehicle is held; 8
(4) (i) Inform the owner and secured party of the owner’s and secured 9
party’s right to reclaim the vehicle within 3 weeks after the date of the notice, on payment 10
of all towing, preservation, and storage charges resulting from taking or placing the vehicle 11
in custody; or 12
(ii) In Baltimore City and Montgomery County, subject to subsection 13
(a)(2) AND (3) of this section, be sent by certified mail, return receipt requested, and inform 14
the owner and secured party of the owner’s and secured party’s right to reclaim the vehicle 15
within 11 working days after the receipt of the notice, on payment of all towing, 16
preservation, and storage charges resulting from taking or placing the vehicle in custody; 17
and 18
(5) State that the failure of the owner or secured party to exercise this right 19
in the time provided is: 20
(i) A waiver by the owner or secured party of all of the owner’s or 21
secured party’s right, title, and interest in the vehicle; 22
(ii) A consent to the sale of the vehicle at public auction; and 23
(iii) A consent by the owner other than a lessor to the retention of the 24
vehicle for public purposes as provided in § 25–207 of this subtitle. 25
(c) In Baltimore City, Prince George’s County, and Montgomery County, a police 26
department or its agent may seek to recover costs of impoundment, storage, and sale of a 27
vehicle as provided by §§ 25–206.1 and 25–206.2 of this subtitle. If a police department or 28
its agent seeks to apply the provisions of §§ 25–206.1 and 25–206.2 of this subtitle, the 29
notice required by this section shall also state that the failure of the owner or secured party 30
to exercise the right to reclaim the vehicle in the time provided may cause: 31
(1) Continuing liability of the owner for costs of: 32
(i) Impoundment; 33
6 SENATE BILL 40
(ii) Storage within the chargeable limit for storage as provided in § 1
25–206.1(b) of this subtitle; and 2
(iii) Sale of the vehicle; and 3
(2) Denial of any application by the owner to renew the registration of any 4
vehicle as required by § 25–206.2 of this subtitle. 5
(D) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO ALLOW FOR 6
ELECTRONIC NOTIFICAT ION TO THE LAST KNOW N REGISTERED OWNER O F A 7
VEHICLE UNDER SUBSEC TION (A)(2) OF THIS SECTION. 8
25–205. 9
(a) This section applies if: 10
(1) The identity of the last registered owner of an abandoned vehicle cannot 11
be determined; 12
(2) The registration of the vehicle gives no address for the owner; 13
(3) It is impossible to determine with reasonable certainty the identity and 14
address of each secured party; 15
(4) The certified mail notice required by § 25–204 of this subtitle is 16
returned as undeliverable; or 17
(5) The electronic [notice] NOTICES authorized under [§ 25–204] § 18
25–204(A)(2) OR (3) of this subtitle [is] ARE not acknowledged or [is] ARE returned as 19
undeliverable. 20
(b) Under one of the conditions described in subsection (a) of this section, a police 21
department that takes an abandoned vehicle into custody shall give the required notice by 22
posting a notice complying with the provisions of subsection (c) of this section in the circuit 23
court of the county where the abandoned vehicle was found. 24
(c) The notice: 25
(1) May contain multiple listings of abandoned vehicles; 26
(2) Shall contain the information required by § 25–204 of this subtitle; and 27
(3) Shall be posted: 28
(i) Within 15 days of the taking into custody of the vehicle; or 29
SENATE BILL 40 7
(ii) If the notice by posting under this section is made because of the 1
return as undeliverable of a prior notice by certified mail, return receipt requested, bearing 2
a postmark from the United States Postal Service, within 7 days of the return of that prior 3
notice. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2025. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.