MDTA Finance and Administration Committee Meeting Materials

J00J00 – Maryland Transportation Authority

MDTA reports that it is currently in the process of implementing multiple strategies to increase the collection of unpaid tolls, including E-ZPass growth and expansion of interoperability with other non-E-ZPass regions of the United States, the execution of reciprocity agreements with other states, and utilizing a collections agency. The primary enforcement mechanism for in-state motorists is to authorize the flagging of a vehicle owner’s registration for suspension or nonrenewal through the Motor Vehicle Administration (MVA). In-state motorists without a valid E-ZPass account receive a Notice of Toll Due in the mail after traveling through a MDTA facility and are required to pay the toll within an allotted timeframe, or a citation with a $25 civil penalty is issued. Once a civil penalty has been issued, the motorist can either pay the citation and civil penalty amount within 30 days or contest the citation in the District Court. If the citation is not paid within this timeframe or the motorist is found guilty in the District Court, a final notice is issued. At this time, the motorist must pay the citation within 15 days before the associated vehicle registration is referred to MVA to be flagged for suspension or nonrenewal. A vehicle’s registration is flagged for nonrenewal when the vehicle has up to $1,000 in unpaid tolls and penalties. A vehicle’s registration is suspended if the vehicle has $1,000 or more in unpaid tolls and penalties. Accounts for in-state motorists with vehicle registrations flagged for suspension or nonrenewal by MVA are referred to the State’s Central Collections Unit (CCU) within certain timeframes following MVA flagging. CCU charges a 17% administrative fee on all accounts referred to it for collection, in addition to the amount owed.

Collection of Toll Debt from Out-of-state Motorists

MDTA indicates that the most effective method to reduce unpaid tolls by out-of-state motorists is through the expansion of participation in the E-ZPass network and greater interoperability with states and regions outside of the E-ZPass network, since the E-ZPass and pay-by-plate payment methods typically have a 100% probability of payment collection. Currently, the E-ZPass network primarily includes states in the northeast, southeast and midwest. States in other regions of the United States with toll facilities have different transponder protocols that can prevent interoperability with MDTA’s transponder readers. However, MDTA has installed tri-protocol readers to enable interoperability with the three most prevalent transponder protocols in the United States. Further expansion of this type of interoperability can enhance out-of-state toll collections. MDTA and MVA have initiated meetings with officials in Pennsylvania to discuss establishing a reciprocal toll enforcement agreement, and the development of an enforcement program and implementation plan is in progress. MDTA has also explored the feasibility of entering into similar agreements with Virginia and New York. In contrast with Pennsylvania, reciprocity agreements with these states would be more complex due to multiple tolling entities in both states, and varying financial penalties compared to Maryland. Lastly, MDTA has begun developing contractual requirements for retaining professional debt collection agency services and anticipates utilizing a competitive sealed bidding process to issue a multi-award contract for these services. Other administrative strategies identified by MDTA include establishing more convenient electronic payment mechanisms, providing additional payment due warning notices by mail, and providing payment due notices by email.

Analysis of the FY 2027 Maryland Executive Budget, 2026 30

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