MAAPPS Fighting Licensing Legislation that Will Affect Process Servers Everywhere

• February 11, 2013
• by Kimberly Faber
• Legislation

Update: 2/22/2013

From Torri Schaffer: "It went really well. They did not make a decision and have to vote on it. We have a really good feeling about it, and I believe that we are going to be sit down with them and come to some kind of compromise. The senators asked some very, very good questions. We will be submitting our proposal."

On February 1st, 2013, Senator Brian Frosh introduced a Bill proposing licensing and certification requirements for process servers. The Bill would change the process serving industry in Maryland in a number of ways and requires substantial bonds, application fees, and additional costs to process servers. The Mid-Atlantic Association of Professional Process Servers (MAAPPS) is fighting the Bill and is asking for help from process servers across the country in opposing this bill.

Official Statement from MAAPPS President Stephen Folcher

Senate Bill 554

Senate Bill 554 seeks to require process server agencies to be formally licensed, and for individual process servers to be certified in order to serve process in Maryland. 

Major points:

• The bill would require that certified process servers work under a licensed agency.
• The actual costs for individual process servers and process serving companies will be approximately $12,000 to $20,000, depending on the number of people involved in the business.
• Process servers must be certified to serve process in Maryland.
• Maryland process serving companies must list all agencies they forward work to as affiliate companies.
• In order to obtain licensure, an agency would have to submit a $1 million bond, a $375 application fee, and pay all costs associated with application fees and background checks for employees, officers, directors, agents, and affiliates.
• Individual licenses have the same restrictions, but with a $200 application fee and a $15,000 bond.
• Licensure requires State and Federal background checks, submission of all business operations including financial and tax records, proof of insurance.

The Mid-Atlantic Association of Professional Process Servers (MAAPPS), opposes the bill, sharing that with high bond requirements and hard costs it will likely put independent contractors and smaller companies out of business.

Further reading:
Senate Bill 554

How will this affect other states?

Michelle Dwojewski, head of the legislative committee for MAAPPS, warns that this is a bill that will affect process servers across the country. "The way this bill is written, it would require that Maryland companies list their affiliate contractors and companies, so even out of state process servers will be affected," she said. Providing the example of a California process serving firm needing a paper served in Baltimore, she says that they would not be able to be listed on the document or it would make the serve invalid. Additionally, in order to forward a serve to a company in another state, the Maryland process serving firm would have to list the out of state company as an affiliate. "When you think about our industry and how our industry functions, that's going to be a dramatic change," she said. "A lot of paralegals like to call their local servers to handle nationwide serves. With respect to this piece of legislation, it would virtually stop that." 

Statement from MAAPPS

From President Steven Folcher: "As written this bill does make a lot of arbitrary changes as to how process serving companies operate, but the bill does very little to improve the culpability and quality of process servers. It is MAAPPS’s position that certification of private process servers is not a bad idea, but if Maryland wants to ensure that all of its residents receive due process, we need education. This bill, from our point of view, drives up the cost of doing business to the point where small companies and small firms will no longer be able to operate, and so obviously we are against it."

From legislative committee head Michelle Dwojewski: "In addition to just licensing requirements you're going to have business requirements and those costs, so it could escalate the price of service to 200-300 per serve. I think it's ridiculous to include employees who have no cause to serve documents and have them go through background checks just to work as a receptionist or answer the telephone. It's not just about service in Maryland. All of the neighboring states are going to have significant difficulty with this. Dynamically, the bill is a very poorly written bill, and it goes against the way our industry works.

This bill will put independent contrators as well as small process serving companies out of business."

MAAPPS Immediate Past President Torri Schaffer

From Immediate Past President Torri Schaffer: "Why is it important to oppose the bill? This bill will put independent contractors as well as small process serving companies out of business. We are in favor of registration and education, but not written under these terms."

Hearing for this Bill: February 19, 2013

The official hearing for Senate Bill 554 will be on February 19th, next Tuesday at 1:00pm. MAAPPS hopes to have at least 30 people attend the hearing and encourages any process server in the area to attend.  

Ways to help MAAPPS fight the bill

Here's how you can help:

• Donate to MAAPPS: MAAPPS has incurred additional expenses as they've hired a lobbyist to help fight these changes and is taking donations to help cover the costs.
• Spread the word
• Attend the hearing 

For questions about this bill, to donate, and to find out more, visit MAAPPS.org or contact Torri Schaffer: [email protected] (301) 869-5081.