(a) Each tow truck operated by a trespass towing company must be identified, registered, and insured as required under State law, except that any required lettering must be placed on both sides of the truck. Each driver employed by a trespass towing service must be at least 18 years of age and must have a valid license to operate a tow truck.
(b) Every trespass towing company must register with the Office and must file a schedule of its rates for each action connected with the towing or storage of unauthorized vehicles. The Office may disapprove a rate that exceeds a maximum rate set under Section 30C-3.
(c) A trespass towing company must not charge a rate that is higher than the rate on file with the Office for any action in connection with the towing or storage of any unauthorized vehicle.
(d) Each trespass towing company must furnish the Office proof that it carries the insurance required under Section 31A-15(b). Each trespass towing company must inform the Office of the type of business organization or ownership in which the company operates and the names and current addresses of all owners or, if the company is a corporation, of the officers of the corporation and the name and address of a person authorized to accept service of process.
(e) A property owner must not order the towing of an unauthorized vehicle unless the property owner has entered into a written contract that authorizes a towing company to tow vehicles from the owner’s property. This provision does not apply if the towing company is the record owner of the property from which a vehicle is towed. The property owner and the towing company must keep on file each contract that is in effect, or that was terminated within the previous 12 months. The Office, the Police Department, and the owner of any vehicle towed by the company may inspect and copy any contract during normal business hours. The Office may issue model contracts that meet the requirements of this Chapter.
Any new written contract must include:
(1) a statement that the property owner is responsible for posting proper and sufficient signage to notify the public of parking restrictions;
(2) a statement that the property owner is responsible for expressly authorizing the towing of a particular vehicle, except as allowed under 30C-5(c)(8), and that the existence of this contract does not constitute express authorization;
(3) a statement that a property owner or towing company is liable for a violation of any duty imposed on the property owner or towing company by Chapter 30C, and the damages payable are three times the amount of any towing, release or storage fees charged;
(4) a statement that a property owner and a towing company are jointly and severally liable for a violation of any duty imposed on the towing company by Chapter 30C, with a right of contribution or indemnification; and
(5) a statement that any violation of any duty imposed on the property owner or towing company by Chapter 30C subjects the property owner or towing company to a potential fine of up to $1,000.00.
(f) Any property owner wishing to engage in the non-consensual towing of vehicles from their property must first register each commercial parking lot with the Office of Consumer Protection using an electronic registration program. The property owner must provide:
(1) the name and contact information for the property owner;
(2) the name and contact information of all individuals who may authorize the towing of each vehicle;
(3) a copy of the contract between the property owner and the towing firm; and
(4) a diagram of the dimensions of the parking lot including a mark indicating the locations of each sign stating the parking restrictions and disclosures required by County and State law.
(g) A property owner must update the information provided to the Office of Consumer Protection within 24 hours of any changes to the information provided under subsection (f).
(h) A property owner must provide annual reports regarding the number of vehicles towed and the reason why each vehicle was towed, unless the Director of the Office of Consumer Protection waives the requirement after finding that Police Department records meet the Office’s needs for enforcement of this Chapter. (1988 L.M.C., ch. 29, §2; 1996 L.M.C., ch. 13, § 1; 1997 L.M.C., ch. 21, §1; 2005 L.M.C., ch. 26, § 1; 2015 L.M.C., ch. 40, § 1; 2016 L.M.C., ch. 7, § 1.)
Editor’s note—2005 L.M.C., ch. 26, §§ 2 and 3, state:
Sec. 2. Regulations. A regulation which implements a function transferred to the Office of Consumer Protection by this Act continues in effect until otherwise amended or repealed, but any reference to any predecessor department or office must be treated as referring to the Office of Consumer Protection.
Sec. 3. Transition. This act does not invalidate or affect any action taken by the Department of Housing and Community Affairs before this Act took effect. Any responsibility or right granted by law, regulation, contract, or other document, and which is associated with a function transferred by this Act from the Department of Housing and Community Affairs, is transferred to the Office of Consumer Protection.