On March 4, Associate Policy Director Karrington Anderson testified before the Judicial Proceedings Committee in opposition to SB 883 – Commercial Law – Statutory Liens – Motor Vehicles Towed or Removed From Parking Lots.
This bill would create a statutory possessory lien on vehicles towed from privately owned parking lots, allowing private towing companies to retain vehicles until all charges are paid.
Under current law, towing companies do not have the legal authority to hold a vehicle as collateral for unpaid towing and storage fees. Instead, they must use standard commercial debt collection processes. SB 883 would grant them an extraordinary power that has been repeatedly rejected by the General Assembly and that presents significant policy and constitutional concerns.
In a similar version of this bill, filed in the House, though not the cross-file for this bill, proponents of the legislation felt the only way to address constitutional concerns was shifting the burden to local governments to establish an administrative hearing process for vehicle owners to challenge a tow.
Towing and vehicle impoundment are already confusing and frustrating for residents. SB 883 would erode consumer protections by making it harder for vehicle owners—especially those with limited financial means—to reclaim their cars. Without access to their vehicles, residents may face barriers to employment, healthcare, and other essential needs.
SB 883 was heard in the opposite chamber, the Environment and Transportation Committee, on April 1. MACo submitted written testimony in opposition to this bill.
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