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SB 883

Post-Towing Procedure Workgroup - Establishment

2025 Regular Session Introduced by Mary-Dulany James

SB 883 creates a statutory tow lien on privately towed vehicles for charges and forms a temporary workgroup to study due‑process requirements and recommend liens rules.

Third Reading Passed with Amendments
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Bill Summary · SB 883

SB 883 — Post‑Towing Procedure Workgroup; Statutory Liens for Towed Vehicles

Status: Third Reading Passed with Amendments (Introduced Jan 23, 2025)

Overview / Purpose

SB 883 (Commerce/Judicial Proceedings) (1) creates a temporary Post‑Towing Procedure Workgroup to examine post‑towing practices for vehicles removed from privately owned parking lots and to recommend measures needed to satisfy State and federal due‑process requirements to establish enforceable possessory or statutory liens; and (2) adds a new statutory lien provision to the Commercial Law Article addressing liens that arise when a vehicle is towed or removed from a private lot under Transportation Article, Title 21, Subtitle 10A.

Key Provisions — Statutory Lien (Commercial Law §16‑202(e))

  • Establishes that a person who tows or removes a motor vehicle from a privately owned parking lot (on behalf of the owner/agent) has a lien on that vehicle for charges incurred for:
    • towing;
    • recovery;
    • storage; and
    • notice provided.
  • The lien is created at the time the charges giving rise to the lien are incurred.
  • The lien is extinguished if the vehicle is reclaimed and the charges are paid by any of: the vehicle owner, lessee, operator, insurer of record, any secured party, or an authorized agent of the owner.
  • Any lien created under this subsection is subordinate to a security interest that predates the lien.

Key Provisions — Post‑Towing Procedure Workgroup

  • Establishes a Workgroup staffed by the Department of Commerce.
  • Membership (selected by named officials/organizations) includes:
    • one Senator and one Delegate (appointed by Senate President and House Speaker);
    • representative of the Office of the Attorney General (Consumer Protection Division);
    • representative of Maryland Association of Counties;
    • two representatives of Towing and Recovery Professionals of Maryland;
    • representatives of Maryland Retailers Alliance, Maryland Multi‑Housing Association, and the Apartment and Office Building Association of Metropolitan Washington.
  • The Governor designates the chair.
  • Members receive no compensation but are eligible for travel expense reimbursement under State rules.
  • Charge: identify and examine post‑towing procedures for privately owned parking lots and develop recommendations about what measures (including notice requirements) would be needed to satisfy State and federal due‑process standards to create legally enforceable possessory/statutory liens.
  • Report due to the General Assembly by December 1, 2025.

Timeline / Effective Dates

  • Effective date: June 1, 2025.
  • Workgroup sunset: Act terminates June 30, 2026 (1 year, 1 month after effect date).
  • Workgroup report: December 1, 2025.

Fiscal Impact

  • Department of Commerce can staff the Workgroup with existing resources.
  • Expense reimbursements for members are expected to be minimal and absorbable within existing budgets.
  • No local government or small business fiscal impact identified in the fiscal note.

Context / Affected Parties

  • Affects towing and recovery companies, privately owned parking lot owners and agents, vehicle owners/operators/lessees, insurers, and secured parties.
  • Builds on existing towing requirements in Maryland law (e.g., police notification, photographic evidence, notice to owners/insurers, statutory caps on towing/storage where local limits are not set).

Procedural Status & Related Notes

  • Amends Commercial Law to add §16‑202(e).
  • Reported, amended, and passed (Senate) — workgroup and lien provisions included in amended text.
  • Report and fiscal note prepared by Department of Legislative Services; similar prior bills (e.g., SB 107) exist in earlier sessions.

Compiled from official sources — confirm details with the bill’s official record.

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