THE CITY OF FREDERICK MAYOR AND BOARD OF ALDERMEN ORDINANCE NO: G-13-07

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1 AN ORDINANCE concerning THE CITY OF FREDERICK MAYOR AND BOARD OF ALDERMEN ORDINANCE NO: G Nonconsensual towing of motor vehicles FOR the purpose of ensuring compliance with new State law by revising certain requirements as to signage; revising the number of signs needed in a parking lot; prohibiting towing companies from moving towed vehicles for a certain period; requiring towing companies to allow vehicle owners to reclaim their vehicles 24 hours per day, 7 days per week; prohibiting towing companies from towing solely for failure to display current registration without certain notice; requiring towing companies to obtain certain liability insurance; requiring storage facilities to make vehicles available for inspection or retrieval of certain personal property; requiring storage facilities to accept personal checks under certain circumstances; changing the requirements for notice following the towing of a vehicle; clarifying language; making stylistic changes; and generally pertaining to the nonconsensual towing of motor vehicles within The City of Frederick. BY repealing and reenacting, with amendments, Chapter 13 Article IV The Code of the City of Frederick, 1966 (as amended) SECTION I. BE IT ENACTED AND ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF FREDERICK that Chapter 13, Article IV of The Code of the City of Frederick, 1966 (as amended) is hereby repealed and reenacted, with amendments, as follows: Sec Definitions. Immobilize means to use any method, object, or device, including a clamp or lock, to prevent or inhibit the movement of a motor vehicle. [In-State Vehicle means a motor vehicle bearing Maryland registration plates, whether or not the registration appears to be current.] Motor Vehicle means any vehicle which is self-propelled or propelled by electric power obtained from overhead trolley wires, but not operated upon rails and shall include motorcycles which means a vehicle having a saddle for the use of the rider and designed to travel on not more than three (3) wheels in contact with the ground, including a motor scooter, mopeds, and a bicycle with motor attached, but excluding a tractor. [Out-or-State Vehicle means a motor vehicle bearing registration plates issued by any state other than Maryland, whether or not the registration appears to be current.] Parking Lot means a privately owned facility consisting of one or more spaces for motor vehicle parking that is accessible to the general public and intended by its owner to be used primarily by the owner's customers, clientele, residents, lessees, employees, or guests.

2 Parking Lot Owner means any person in lawful possession or control of a parking lot. The owner of a condominium parking lot is the council of unit owners. Storage Site means any land or building used by a towing company to store towed vehicles. Tow Truck Operator means any person who is the operator of a towing vehicle. Towing means the moving of a vehicle by a tow truck. Towing company means an individual, partnership, corporation, fiduciary, association, or other entity owning, operating, or conducting the business of towing or removing vehicles from private property. Vehicle means a vehicle as defined in Section of the Transportation Article of the Annotated Code of Maryland (1977) as amended from time to time, which includes but is not limited to motor vehicles, motorcycles and trailers. Vehicle Owner means the last known person in whose name title to a vehicle is registered. Sec Applicability. Subject to the exemptions set forth in subsection of this section, the provisions of this article apply to the towing of a vehicle from a parking lot within the City, without the consent of the vehicle owner. The provisions of this article do not apply to: (1) Towing initiated by the owner of a motor vehicle; (2) A towing company owned or operated by a unit of federal, state, or local government; or (3) Towing approved by a police officer, firefighter, or rescue squad member in the course of duty or under the state law on abandoned vehicles. [rhe provisions of this article are not intended to supersede any provision of the Maryland Annotated Code, and nothing in this article shall be construed to relieve a towing company or any other person from any obligation imposed by State law.] This article is enacted under the authority of and in accordance with the Transportation Article. Title 21. Subtitle 10A. of the Annotated Code of Maryland. Nothing in this article shall be construed to relieve a towing company or any other person from any obligation imposed by State law. Sec General Requirements and Prohibited Acts. *** Sec Parking on posted property; determination of owner. ***

3 Sec Signs.. A parking lot owner or operator may not have a vehicle towed from the parking lot unless there have been posted on the property, in conspicuous locations, as described in subsection of this section, at least twenty-four (24) hours before towing or ordering the towing of a vehicle, signs that: (1) Are at least twenty-four (24) inches high and thirty (30) inches wide; (2) Are clearly visible to the driver of a motor vehicle entering or being parked [on the property;] in the parking lot; (3) Summarize all parking restrictions on the lot enforced by the towing of unauthorized vehicles, including any time or area restrictions; (4) Indicate that vehicles violating the restrictions may be towed at the vehicle owner's expense; (5) State the location to which the vehicle will be [towed;] towed and the name of the towing company; (6) State [the hours in which the vehicle may be reclaimed;] that State law requires that the vehicle be available for reclamation 24 hours per day, 7 days per weekj (7) State the maximum amount the vehicle owner may be charged for the towing of the vehicle; and (8) Provide the telephone number of a person who can be contacted to arrange for the reclaiming of the vehicle by its [owner.] owner or the owner's agent. (e) The signs described in subsection of this section shall be placed to provide at least 1 sign for every 7,500 square feet of parking space in the parking lot. In addition, at [At] least one sign must be posted permanently at each vehicle entrance to the parking lot. [Sufficient numbers of additional signs must be posted permanently so that at least one sign is clearly visible from each parking area at all times. Alternatively, in a parking lot with two hundred (200) or more parking spaces, at least one sign must be posted for each two hundred (200) parking spaces, evenly spaced at the discretion of the parking lot owner, and at least one sign must be posted so as to be clearly visible at each vehicle entrance to the property.] Each sign must be printed and located so that it is readable by motorists in daylight and at night. The parking lot owner must maintain each sign in legible and unobstructed condition. Violation of this section is a municipal infraction, punishable by a fine of fifty dollars ($50.00). Each day a violation continues is deemed a separate offense.

4 Sec Complaint and tow slip. (e) (f) Except as otherwise provided in subsection [(e),] (e) of this section. a parking lot owner or operator may not cause an illegally parked vehicle to be towed without first making a complaint and signing a tow slip in accordance with this section. A complaint must include a signed statement made by the parking lot owner or operator, under oath, that the vehicle to be removed was parked on the parking lot owner's property without the consent of the parking lot owner or operator, and that the vehicle was parked in an area from which a sign prohibiting unauthorized parking was clearly visible. A tow slip presented by a towing company to the parking lot owner or operator must consist of one original and three (3) copies and must include the make and model of the vehicle, vehicle identification number, date and time of towing, license plate number, location towed from, name of complaining party, specific reason for the towing of the unauthorized vehicle, name and phone number of towing company, and address of the storage site where vehicle will be stored. Before the towing company tows the vehicle, the parking lot owner or operator shall sign the tow slip in the place provided. Prior to the towing of an unauthorized vehicle pursuant to this section, the towing company shall photograph the vehicle in a manner that documents the unauthorized parking of the vehicle. The towing company shall maintain any such photograph or a copy thereof in its company records for at least three (3) years from the date the vehicle is towed. If a parking lot owner or operator has a written contract with a towing company, the parking lot owner or operator is not required to make a complaint or sign a tow slip prior to the towing of an illegally parked vehicle by that towing company. Violation of subsections -(e) of this section is a municipal infraction, punishable by a fine of fifty dollars ($50.00). Sec [Towing of vehicle.] General powers and duties oftowing companies. [] After meeting the requirements of Section of this article, a towing company [may] shall immediately proceed to tow an illegally parked vehicle to [a storage site.] the storage facilitv stated on the signs in accordance with Section of this article. The towing company may not move the towed vehicle from that storage facilitv to another storage facilitv for at least 72 hours. Within one hour after the attachment of a vehicle, the towing company shall notify the Frederick Police Department, by phone or computer, of the date and time of the towing, the location [of the tow,] from which and to which the vehicle was towed; the make and model of the vehicle, the vehicle identification number, the license plate number, and the reason for the tow. [At the request of the vehicle owner, the storage site must be open for redemption of vehicles for at least one hour after the towing company's notification to the Frederick Police Department pursuant to subsection of this section. A towing company may charge a fee of not more than fifty dollars ($50.00) to any vehicle owner who reclaims a vehicle at a time that is not during the company's regular business hours.]

5 ! l!g} The towing company shall provide the owner of the vehicle or the owner's agent immediate and continuous opportunity. 24 hours per day, 7 days per week, from the time the vehicle was received at the storage facility, to retake possession of the vehicle. A towing company may not tow a vehicle solely for a violation of failure to display a valid current registration under of the Transportation Article until 72 hours after a notice of violation is placed on the vehicle. [] (e) A towing company that undertakes the towing of a vehicle from private property may not employ or otherwise compensate individuals, commonly referred to as "spotters", whose primary task is to report the presence of unauthorized parked vehicles for the purposes of towing. [(e)] (f) A towing company may not payor offer to pay a parking lot owner or operator, and a parking lot owner or operator shall not accept payment, for authorizing the towing of a vehicle from any parking lot. For purposes of this subsection, "payment" means money, services, or any other thing of value. (g) A towing company shall obtain commercial liability insurance in the amount required by federal law for transporting property in interstate or foreign commerce to cover the cost of any damage to the vehicle resulting from the person's negligence. Sec Incomplete tows. If a vehicle owner or [operator] agent returns to a vehicle at any time after the vehicle is attached to a tow [truck] truck. whether or not it has been lifted off the ground, but before it is towed from a parking lot: If the owner or agent requests that the tower release the vehicle, the [rhe] tow truck operator shall release the vehicle to the vehicle owner or [operator;] agent and A towing company may charge a drop fee in accordance with Section 13-BO of this article. The towing company may not charge any other fee for attaching or releasing the vehicle. The Frederick Police Department may enforce subsection of this section by ordering a person to release a vehicle that has been attached to a tow truck. Such an order has no effect on the drop fee that may be charged pursuant to subsection of this section. Sec Maintenance during storage. lill ilu If a towed vehicle contains keys, the storage custodian shall keep the keys to the vehicle in his possession at all times while the vehicle is impounded. The storage custodian shall keep the impounded vehicle secure and make periodic inspections of all impounded vehicles. A storage facility that is in possession of a towed vehicle shall make the vehicle available to the owner. the owner's agent. the insurer of record. or a secured

6 party, under the supervision of the storage facility, for (i) inspection; or (ii) retrieval of personal property not attached to the vehicle. Sec Notice to owner. [If a vehicle is not claimed within seventy-two (72) hours after it is towed, the towing company that towed the vehicle shall mail to the vehicle owner, and to any secured party as may be obtained through the vehicle license number, a notice including the following:] A towing company shall notify the owner, any secured party, and the insurer of record by certified mail, return receipt requested, and first-class mail within 3 days. exclusive of days that the towing company is closed, after towing or removing the vehicle, and shall provide the following information: (1) A statement that the vehicle has been taken into custody for violation of this article; (2) The [year,] make, model, [and] vehicle identification number and license plate number of the vehicle; (3) The location [of the storage site where the vehicle is held;] from which and to which the vehicle was [towed; and] towed; (4) A statement of the right of the vehicle owner or secured party to reclaim the vehicle upon payment of all towing and storage charges resulting from the towing and storage of the [vehicle.] vehicle; and (5) The itemized actual costs of providing notice under this section. [] [] [Except as otherwise provided in subsection, the notice required by subsection must be mailed within (i) seven (7) days after the vehicle is towed if the vehicle is an instate vehicle; or (ii) sixty (60) days after the vehicle is towed if the vehicle is an out-ofstate vehicle.] [Notice complying with the provisions of subsection may be given by publication in at least one newspaper of general circulation in the City if:] [(1)] [The identity of the last registered owner of an impounded vehicle cannot be determined;] [(2)] [The registration of the vehicle gives no address for the owner;] [(3)] [It is impossible to determine with reasonable certainty the identity and address of each secured party; or] [(4)] [The notice required by subsection of this section is returned as undeliverable.] [] [Any notice made pursuant to SUbsection must be published within (i) fifteen (15) days after the vehicle is towed if the vehicle is an in-state vehicle; or (ii) seventy-five (75) days after the vehicle is towed if the vehicle is an out-of-state vehicle.]

7 [(e)] [(f)] [Notwithstanding any other provision of this section, if notice is made by publication pursuant to subsection (4), the publication must be made within seven (7) days of the return of the certified mail as undeliverable.] [fhe notice required by this section is in addition to, and not in lieu of, any notice requirement imposed by Title 25, Subtitle 2 of the Maryland Annotated Code.] Sec Payment of charges. (e) (f) (g) The owner or secured party of a vehicle which has been impounded may reclaim the vehicle by paying all required fees to the towing company. The towing charge may not exceed two hundred dollars ($200.00) for any vehicle up to 10,000 pounds gross vehicle weight. The charge includes the first twenty-four (24) hours of storage, mileage, and hook-up fees, which includes the use of a dolly and transportation to a storage site. The rate chargeable per additional twenty-four-hour period for storage where the motor vehicle is to be stored by the towing company is not to exceed fifty dollars ($50.00). The towing charge may not exceed five hundred dollars ($500.00) for any vehicle between ten thousand one (10,001) and twenty-six thousand (26,000) pounds gross vehicle weight and seven hundred fifty dollars ($750.00) for any vehicle over twenty-six thousand (26,000) pounds gross vehicle weight. The charge includes the first twentyfour (24) hours of storage, mileage, and hook-up fees, which includes the use of a dolly and transportation to a storage site. The charge also includes winching, unlocking vehicles, go jacks, dollies, caging brakes and removal of a drive line. The rate chargeable per additional twenty-four-hour period for storage where the motor vehicle is to be stored by the towing company is not to exceed five dollars ($5.00) per linear foot. A drop fee may not exceed seventy-five dollars ($75.00) for vehicles up to ten thousand (10,000) pounds gross vehicle weight. A drop fee not to exceed two hundred dollars ($200.00) may be charged for vehicles over ten thousand (10,000) pounds gross vehicle weight. The towing company shall provide a receipt indicating the drop fee paid and the date of the incomplete tow. Storage charges may begin after the first calendar day the motor vehicle is available for recovery by the owner or secured party. If a vehicle is not reclaimed within seventy-two (72) hours after it is towed, a towing company may charge the vehicle owner an administrative fee not to exceed seventy-five dollars ($75.00). A [towing company] storage facility shall accept payment in [cash or by a major credit card with a credit card slip validly Signed by the vehicle owner for the amount of all valid charges.] cash. [fhe towing company] A storage facility also shall accept (i) the two (2) most widely used major credit cards, MasterCard and Visa; (ii) any MasterCard debit card; and (iii) any Visa debit card. ill Except as otherwise provided in paragraph (2) of this subsection, if a storage facility is unable to process a credit card payment and does not

8 W have an operable automatic teller machine on the premises. it shall accept a personal check. A storage facility may refuse to accept a personal check as payment if it is unable to process a credit card for the payment because use of the credit card has been declined by the credit card company. (h) (i) If a vehicle owner withholds payment in a credit card transaction with a towing service and a court in any subsequent civil action finds that the tow was valid and the amount charged was correct, the vehicle owner shall pay the towing company, in addition to the amount validly charged, liquidated damages of two (2) times the amount validly charged, but not more than one thousand dollars ($1,000.00), and all reasonable costs of collection, including court costs and a reasonable attorney's fee. A towing company shall display prominently at each storage site a sign including: a copy of its current fee schedule and a statement that these fees do not exceed the amount authorized by this section; the hours during which a vehicle owner may reclaim a vehicle; and a phone number a vehicle owner may call to reach the towing company. Sec Immobilization of vehicle prohibited. A towing company or tow truck operator shall not immobilize a motor vehicle in a parking lot except to the extent that immobilization is performed in the process of towing a motor vehicle in accordance with this article. The Frederick Police Department may enforce this section by ordering a person not to immobilize a vehicle or by ordering a person to release an immobilized vehicle without payment. Any person whose vehicle has been immobilized in violation of this section may recover from the parking lot owner or operator, the towing company, or any other person responsible for immobilizing the vehicle, in a civil action, actual damages sustained, attorney's fees, and a penalty less than or equal to two hundred dollars ($200.00). The remedies set forth in this section do not replace or limit any other remedy available at law or in equity. Sec Remedies. Any towing company, and any parking lot owner or operator who authorizes, expressly or under a standing authorization, the towing of a vehicle from private property, are liable for violation of any duty imposed on the service or owner by this article with regard to: (1) Any towing of a vehicle that does not comply with this article; (2) Any towing of a vehicle in the mistaken belief that the vehicle was not authorized to park in the place from which it was towed; and (3) Any damages to a towed vehicle incurred during the tow or storage and caused by a lack of reasonable care by the towing company, the parking lot owner or operator, or an agent of either.

9 (e) A parking lot owner or operator is not liable for the towing of a vehicle if the parking lot owner or operator did not authorize the towing, expressly or under a standing contract. Except as provided in subsection, a parking lot owner or operator and a towing company are jointly and severally liable for the violation of any duty imposed by this article on the towing company, with a right of contribution or indemnification. A vehicle owner must mitigate any damages recoverable under this article. Damages payable under subsections (1) and (2) of this section are three (3) times the amount of any towing, release, or storage fees [charged.] charged. in addition to actual damages sustained by any person as a direct result of the violation. A vehicle owner may also recover attorney's fees from the person liable for the damages. SECTION II. BE IT FURTHER ENACTED AND ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF FREDERICK that in the event any provision, section, sentence, clause, or part of this ordinance shall be held to be invalid, such invalidity shall not affect or impair any remaining provision, section, sentence, clause, or part of this ordinance, it being the intent of the City that such remainder shall be and shall remain in full force and effect. SECTION III. BE IT FURTHER ENACTED AND ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF FREDERICK that this ordinance shall take effect on the date it is approved by the Mayor and all other ordinances or parts of ordinances inconsistent with the provisions of this ordinance will as of that date be repealed to the extent of such inconsistency. PASSED: DATE: February APPROVED: DATE: February 21,2013 February Approved for Legal Sufficiency: ~JdM City Attorney