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.
*sb0883*
SENATE BILL 883
I4 5lr3043
SB 107/24 – JPR
By: Senator James
Introduced and read first time: January 28, 2025
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 2025
CHAPTER ______
AN ACT concerning 1
Commercial Law – Statutory Liens – Motor Vehicles Towed or Removed From 2
Parking Lots 3
Post–Towing Procedure Workgroup – Establishment 4
FOR the purpose of establishing that a certain person has a lien on a motor vehicle towed 5
or removed from a privately owned parking lot for certain charges under certain 6
circumstances; establishing the circumstances in which the lien is extinguished; and 7
generally relating to statutory liens and motor vehicles the Post–Towing Procedure 8
Workgroup to identify and examine issues relating to the establishment of statutory 9
liens on motor vehicles that are towed or removed from privately owned parking lots 10
under certain circumstances; and generally relating to the Post–Towing Procedure 11
Workgroup. 12
BY adding to 13
Article – Commercial Law 14
Section 16–202(e) 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2024 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Commercial Law 20
16–202. 21 2 SENATE BILL 883
(E) (1) A PERSON HAS A LIEN ON A MOTOR VEHICLE IF T HE PERSON TOWS 1
OR REMOVES THE MOTOR VEHICLE FROM A PRIVA TELY OWNED PARKING LOT UN DER 2
TITLE 21, SUBTITLE 10A OF THE TRANSPORTATION ARTICLE, ON BEHALF OF THE 3
PARKING LOT OWNER OR AGENT, FOR ANY CHARGE INCUR RED FOR ANY: 4
(I) TOWING; 5
(II) RECOVERY; 6
(III) STORAGE; OR 7
(IV) NOTICE PROVIDED . 8
(2) A LIEN CREATED UNDER THIS S UBSECTION SHALL BE 9
EXTINGUISHED IF THE MOTOR VEHICLE IS REC LAIMED AND THE CHARG ES GIVING 10
RISE TO THE LIEN ARE PAID BY: 11
(I) THE OWNER OF THE MOTO R VEHICLE; 12
(II) THE LESSEE OF THE MOT OR VEHICLE; 13
(III) THE OPERATOR OF THE M OTOR VEHICLE; 14
(IV) THE INSURER OF RECORD ; 15
(V) ANY SECURED PARTY ; OR 16
(VI) ANY AUTHORIZED AGENT OF THE MOTOR VEHICLE OWNER. 17
(3) A LIEN IS CREATED UNDE R THIS SUBSECTION WH EN ANY 18
CHARGES GIVING RISE TO THE LIEN ARE INCU RRED. 19
(4) A LIEN CREATED UNDER THIS SUBSECTIO N IS SUBORDINATE TO A 20
SECURITY INTEREST TH AT PREDATES THE CREA TION OF THE LIEN. 21
(a) There is a Post–Towing Procedure Workgroup. 22
(b) The Task Force consists of the following members: 23
(1) one member of the Senate of Maryland, appointed by the President of 24
the Senate; 25
(2) one member of the House of Delegates, appointed by the Speaker of the 26
House; 27 SENATE BILL 883 3
(3) one representative of the Consumer Protection Division in the Office of 1
the Attorney General, appointed by the Attorney General; 2
(4) one representative of the Maryland Association of Counties, designated 3
by the Executive Director of the Association; 4
(5) two representatives of the Towing and Recovery Professionals of 5
Maryland, designated by the President of the organization; 6
(6) one representative of the Maryland Retailers Alliance, designated by 7
the President of the Alliance; 8
(7) one representative of the Maryland Multi–Housing Association, 9
designated by the Executive Director of the Association; and 10
(8) one representative of the Apartment and Office Building Association of 11
Metropolitan Washington, designated by the chair of the Association. 12
(c) The Governor shall designate the chair of the Workgroup. 13
(d) The Department of Commerce shall provide staff for the Workgroup. 14
(e) A member of the Workgroup: 15
(1) may not receive compensation as a member of the Task Force; but 16
(2) is entitled to reimbursement for expenses under the Standard State 17
Travel Regulations, as provided in the State budget. 18
(f) (1) The Workgroup shall, in consultation with interested stakeholders, 19
identify and examine post–towing procedures relating to the towing or removal of motor 20
vehicles from privately owned parking lots in accordance with Title 21, Subtitle 10A of the 21
Transportation Article. 22
(2) In conducting the examination under paragraph (1) of this subsection, 23
the Workgroup shall also formulate recommendations on what measures would need to be 24
in place or required to comply with due process requirements under State and federal law 25
in order to establish a legally enforceable possessory or statutory lien as part of post–towing 26
procedures, including any notice requirements. 27
(g) On or before December 1, 2025, the Workgroup shall report its findings and 28
recommendations to the General Assembly in accordance with § 2–1257 of the State 29
Government Article. 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October June 1, 2025. It shall remain effective for a period of 1 year and 1 month and, at 32 4 SENATE BILL 883
the end of June 30, 2026, this Act, with no further action required by the General Assembly, 1
shall be abrogated and of no further force and effect. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.