107oag093

CourtMaryland Attorney General Reports
DecidedApril 18, 2022
Docket107OAG093
StatusPublished

This text of 107oag093 (107oag093) is published on Counsel Stack Legal Research, covering Maryland Attorney General Reports primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
107oag093, (Md. 2022).

Opinion

Gen. 93] 93

TRANSPORTATION

VEHICLE LAWS – TOWING FEES – HOW TO DETERMINE THE PERMISSIBLE FEES FOR TRESPASS TOWING IN LOCAL JURISDICTIONS UNDER SECTION 21-10A-04 OF THE TRANSPORTATION ARTICLE

April 13, 2022 The Honorable Brandon M. Scott Mayor, Baltimore City

You have asked for an opinion of the Attorney General as to how to interpret certain towing-fee-related provisions in § 21-10A- 04 of the Transportation Article. That statute imposes constraints on the fees that can be charged for the towing of vehicles from private parking lots, a practice that is often called “trespass towing.” Those constraints, in turn, are largely based on the fees for “impound towing,” i.e., the removal of vehicles from public streets. More specifically, the statute generally sets the permissible fee for trespass towing as double the “total fees normally charged or authorized by the political subdivision for the public safety impound towing of vehicles,” Md. Code Ann., Transp. (“TR”) § 21-10A-04(a)(1)(i), plus “the fee normally charged or authorized by the political subdivision from which the vehicle was towed for the daily storage of impounded vehicles,” TR § 21-10A- 04(a)(1)(ii). But the statute provides a different maximum fee for trespass towing—$250 for towing a vehicle and $30 per day for storage—“[i]f a political subdivision does not establish a fee limit for the public safety towing, recovery, or storage of impounded vehicles.” TR § 21-10A-04(a)(1)(iii).

Under that scheme, your first question is which towing- related fees may be doubled under subparagraph (a)(1)(i) of the statute as the “total fees normally charged or authorized by the political subdivision for the public safety impound towing of vehicles.” That is, do the “total fees” that may be doubled include only fees that are charged for the actual towing of the vehicle, or can they also include storage fees, fees for notice, or administrative fees that a local jurisdiction might charge in connection with impound towing? Your second question is about the meaning of the term “normally charged or authorized” in TR §§ 21-10A- 04(a)(1)(i) and (ii), and how that term relates to the term “fee limit” found in § 21-10A-04(a)(1)(iii). In other words, was the term “fee limit” in (a)(1)(iii) intended as a shorthand to refer back to the fee “normally charged or authorized” by the jurisdiction for impound 94 [107 Op. Att’y

towing mentioned earlier in that subsection—such that the default fee in (a)(1)(iii) applies only if the jurisdiction does not have a fee “normally charged or authorized”—or was the term “fee limit” intended to mean something else? You explain that, at Baltimore City Council committee hearings held to consider recent legislation that would amend local towing laws, testimony from members of the towing industry revealed that there are conflicting interpretations of § 21-10A-04. In our opinion, as to your first question, the “total fees” referred to in TR § 21-10A-04(a)(1)(i) clearly do not include fees for storage or notice, or fines owed for traffic or parking violations. And although less clear, the term “total fees” likely also does not include administrative fees charged by a political subdivision for public safety impound towing. Rather, both the text and the legislative history of the provision indicate that the “total fees” include those fees directly related to the actual towing of a vehicle, such as fees for hook-up, mileage, or time. As to your second question, our conclusion is that the fees “normally charged or authorized” by a jurisdiction for public safety impound towing refer to the fees for a normal tow set by the jurisdiction in its local code or by some other formal fee-setting mechanism and that, so understood, those fees serve as a type of “fee limit” for purposes of TR § 21-10A-04(a)(1)(iii).

I Background

A. Section 21-10A-04 of the Transportation Article Title 21, Subtitle 10A of the Transportation Article regulates the towing or removal of vehicles from parking lots, which are defined as “privately owned facilit[ies] consisting of 3 or more spaces for motor vehicle parking” that are “[a]ccessible to the general public” and “intended by the owner of the facility to be used primarily by the owner’s customers, clientele, residents, lessees, or guests.” TR § 21-10A-01(a). The practice of removing vehicles from these parking lots is sometimes referred to as “trespass towing.” See, e.g., Baltimore County Code Ordinances § 21-16-101(j) (2021) (defining “trespass towing”). The provisions in Subtitle 10A apply statewide, though local authorities are not precluded from adopting local laws or regulations that relate to the registration or licensing of those who engage in “the parking, towing or removal, or impounding of vehicles,” or from “otherwise regulating” the practice in a “more stringent manner.” TR § 21- 10A-01(b); see also id. § 26-301(b)(3) (providing that any political Gen. 93] 95

subdivision of the State may adopt ordinances and regulations that “[r]egulate the towing of vehicles from publicly owned and privately owned parking lots”).

Section 21-10A-04 governs the process of towing and storing a vehicle and, as relevant here, includes limitations on the fees that may be charged in connection with a trespass tow. Currently, the statute provides that: Unless otherwise set by local law, a person who undertakes the towing or removal of a vehicle from a parking lot:

(1) May not charge the owner of the vehicle, the owner’s agent, the insurer of record, or any secured party more than: (i) Twice the amount of the total fees normally charged or authorized by the political subdivision for the public safety impound towing of vehicles; (ii) Notwithstanding § 16-207(f)(1) of the Commercial Law Article,[1] the fee normally charged or authorized by the political subdivision from which the vehicle was towed for the daily storage of impounded vehicles; (iii) If a political subdivision does not establish a fee limit for the public safety towing, recovery, or storage of impounded vehicles, $250 for towing and recovering a vehicle and $30 per day for vehicle storage; and (iv) Subject to subsection (b) of this section, the actual cost of providing notice under this section[.]

TR § 21-10A-04(a)(1).

The statute is relatively new. Prior to 1989, State law did not regulate private towing practices, 73 Opinions of the Attorney General 349, 351 n.2 (1988), though there were local laws that did to some extent, see, e.g., Cade v. Montgomery County, 83 Md. App. 419, 431 (1990) (holding that a Montgomery County ordinance that 1 That provision, which governs statutory liens on personal property, states that “storage fees of the third party holder may not exceed $5 per day or a total of $300.” 96 [107 Op. Att’y

regulated trespass towing, including maximum fees, was not unconstitutional); 73 Opinions of the Attorney General 246, 248 (1988) (concluding that a Montgomery County ordinance regulating towing of vehicles from private property was valid).

In 1989, a bill was introduced in response to “many well- publicized abuses by towing companies and parking lot owners in the Baltimore area.” Floor Report, Senate Jud. Proc. Comm., H.B. 1303, 1989 Leg., Reg. Sess., at 2. These abuses included “exorbitant fees, unauthorized removal, unavailability, and damage to removed vehicles.” Id. As introduced, the bill provided that persons towing from private parking lots, in Baltimore City and County only, were precluded from charging “more for the towing of the vehicle from the parking lot than the amount normally charged by the political subdivision for the towing of vehicles” or “more than $10 per day for storage.” H.B. 1303, 1989 Leg., Reg. Sess. (First Reader).

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Bluebook (online)
107oag093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/107oag093-mdag-2022.