Post-Towing Procedure Workgroup - Establishment
SB 883 addresses towing from privately owned parking lots in two related ways. First, it amends Maryland’s Commercial Law to create a statutory lien for a person who tows or removes a motor vehicle from a privately owned parking lot on behalf of the lot owner or agent, covering towing, recovery, storage, and notice charges. The lien is extinguished once the vehicle is reclaimed and the charges are paid by the vehicle owner, lessee, operator, insurer, secured party, or an authorized agent, and the lien is subordinate to any preexisting security interest.
Second, the bill establishes a temporary Post-Towing Procedure Workgroup to study post-towing procedures for vehicles removed from privately owned parking lots under the Transportation Article. The Workgroup is directed to consult stakeholders, examine what due process protections and notice requirements would be needed to support a legally enforceable possessory or statutory lien, and report recommendations to the General Assembly by December 1, 2025. The Act is temporary and is set to expire on June 30, 2026.
The bill adds a new subsection to § 16-202 of the Commercial Law Article, creating an express lien right tied to towing and related charges for vehicles removed from private parking lots, while also clarifying when that lien ends and how it interacts with prior security interests. It also creates a short-lived intergovernmental and stakeholder workgroup under the Department of Commerce to evaluate whether Maryland’s post-towing procedures can support enforceable lien rights consistent with state and federal due process requirements. The practical effect is to affect towing operators, parking lot owners, vehicle owners, lenders/secured parties, insurers, and consumer protection interests.
The voting record shows strong bipartisan support, with unanimous passage in both chambers on third reading and passage with amendments in the House. The bill’s structure suggests general agreement on studying the issue and clarifying towing-related lien procedures, while the amendments indicate lawmakers wanted to refine the proposal before final passage. No committee transcript is available, but the final votes reflect broad consensus rather than controversy.
The main policy tension in SB 883 is between towing/parking lot interests seeking a clear mechanism to secure payment for towing, storage, and notice costs, and vehicle owners, consumer advocates, and secured lenders concerned about due process, notice, and priority of liens. The bill’s workgroup component reflects unresolved questions about what procedures are necessary to make such liens legally enforceable, especially in relation to notice requirements and preexisting security interests. The inclusion of consumer protection, county, towing industry, retail, and multi-housing representatives suggests the legislature viewed the issue as multi-stakeholder and potentially contentious, even though the bill itself passed without recorded opposition.