Bill Summary – FastDemocracy

HB 157
                       Department of Legislative Services
                               Maryland General Assembly
                                     2020 Session
                            FISCAL AND POLICY NOTE
                                  Third Reader
House Bill 157               (Chair, Environment and Transportation Committee)(By
                             Request - Departmental - Transportation)
Environment and Transportation                                   Judicial Proceedings
     Vehicle Laws - Business or Occupational Licenses - Administrative Penalties
This departmental bill authorizes the Motor Vehicle Administration (MVA) to immediately
suspend a specified business or occupational license before holding an administrative
hearing if MVA determines that the person is violating the used vehicle safety inspection
requirements and that there is a danger of immediate, substantial, and continuing harm to
the public if the license is continued pending a hearing. Within seven days of a request for
a hearing on the license suspension, MVA must grant the hearing in accordance with
Title 12, Subtitle 2 of the Transportation Article. After the hearing, MVA must render an
immediate decision to (1) continue the license suspension; (2) revoke the license; or
(3) reinstate the license. To the extent of a conflict between the bill and Title 12, Subtitle 2
of the Transportation Article, the bill’s provisions take precedence.
                                     Fiscal Summary
State Effect: The bill is not anticipated to materially affect State finances or operations.
Local Effect: None.
Small Business Effect: The Maryland Department of Transportation has determined that
this bill has minimal or no impact on small business (attached). The Department of
Legislative Services concurs with this assessment.
                                          Analysis
Current Law/Background: Title 15 of the Transportation Article contains licensing
provisions for various entities that are regulated by MVA, including:
      manufacturers, distributors, and factory branches;
      vehicle dealers;
      vehicles salespersons;
      automotive dismantlers and recyclers and scrap processors;
      title service agents;
      driver’s schools; and
      driving instructors.
If MVA refuses an application for a license (or for the renewal of a license) under Title 15
of the Transportation Article, the applicant may request a hearing on that action. However,
MVA may only suspend or revoke a license after holding a hearing. Among other things,
Title 12, Subtitle 2 of the Transportation Article delineates the hearings process for cases
in which MVA refuses, suspends, or revokes a license or privilege.
Except in specified circumstances, a used vehicle that is transferred must undergo a safety
inspection. In some cases, the transferor is responsible for ensuring the vehicle is inspected;
in others, the transferee must obtain the safety inspection. In some cases, either the
transferor or transferee may obtain the required inspection.
MVA advises that the bill is intended to allow an emergency suspension against dealers
and tag and title service licensees who falsify a safety inspection in order to register a
vehicle. MVA further notes that, since July 2014, its Division of Investigations and
Security Services has documented at least 2,000 used vehicles that were registered without
being properly inspected. These uninspected vehicles were processed through at least
30 licensed tag and title and used car dealers with electronic registration and titling. The
2,000 vehicles did not have the soundness of their braking system, tires, or steering
components checked and were registered and permitted to operate on the highway. When
MVA became aware of these serious violations, it had no immediate recourse to prevent
additional (and potentially unsafe) vehicles from being unlawfully registered.
According to MVA, the authorization to immediately suspend a dealer or a tag and title
service’s license for safety inspection violations on an emergency basis – while also
guaranteeing that business the right to an expeditious hearing on the charges – will balance
the need of the licensee and the responsibility of MVA to prevent undue harm to public
safety.
                                 Additional Information
Prior Introductions: None.
HB 157/ Page 2
Designated Cross File: None.
Information Source(s):       Maryland Department of Transportation; Office of
Administrative Hearings; Department of Legislative Services
Fiscal Note History:    First Reader - February 4, 2020
md/ljm                  Third Reader - March 14, 2020
Analysis by: Eric F. Pierce                         Direct Inquiries to:
                                                    (410) 946-5510
                                                    (301) 970-5510
HB 157/ Page 3
                 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL:        Vehicle Laws - Business or Occupational Licenses - Administrative
                      Penalties
BILL NUMBER:          HB 157
PREPARED BY:          Maryland Department of Transportation / Motor Vehicle
                      Administration
(Dept./Agency)
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
         X       WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
                 BUSINESS
                            OR
                 WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
                 BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
There may be an impact on small businesses because their licenses could be suspended.
HB 157/ Page 4
Statutes affected: 
Text - First - Vehicle Laws - Business or Occupational Licenses - Administrative Penalties: 15-110 Transportation
Text - Third - Vehicle Laws - Business or Occupational Licenses - Administrative Penalties: 15-110 Transportation