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AN ACT
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relating to the licensing and regulation of towing companies and |
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vehicle storage facilities; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2308.002, Occupations Code, is amended |
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by amending Subdivisions (3), (6), and (8) and adding Subdivisions |
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(5-a), (7-a), and (8-a) to read as follows: |
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(3) "Consent tow" means any tow of a motor vehicle in |
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which the tow truck is summoned [initiated] by the owner or operator |
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of the vehicle or by a person who has possession, custody, or |
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control of the vehicle. The term does not include an incident |
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management tow or a private property [a] tow [of a motor vehicle
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initiated by a peace officer investigating a traffic accident or a
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traffic incident that involves the vehicle]. |
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(5-a) "Incident management tow" means any tow of a |
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vehicle in which the tow truck is summoned because of a traffic |
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accident or to an incident. |
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(6) "Nonconsent tow" means any tow of a motor vehicle |
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that is not a consent tow, including: |
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(A) an incident management tow; and |
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(B) a private property tow. |
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(7-a) "Parking facility authorized agent" means an |
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employee or agent of a parking facility owner with the authority to: |
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(A) authorize the removal of a vehicle from the |
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parking facility on behalf of the parking facility owner; and |
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(B) accept service on behalf of the parking |
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facility owner of a notice of hearing requested under this chapter. |
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(8) "Parking facility owner" means: |
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(A) an individual, corporation, partnership, |
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limited partnership, limited liability company, association, |
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trust, or other legal entity owning or operating [owner or operator
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of] a parking facility[, including a lessee, employee, or agent of
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an owner or operator]; |
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(B) a property owners' association having |
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control under a dedicatory instrument, as that term is defined in |
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Section 202.001, Property Code, over assigned or unassigned parking |
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areas; or |
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(C) a property owner having an exclusive right |
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under a dedicatory instrument, as that term is defined in Section |
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202.001, Property Code, to use a parking space. |
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(8-a) "Private property tow" means any tow of a |
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vehicle authorized by a parking facility owner without the consent |
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of the owner or operator of the vehicle. |
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SECTION 2. Section 2308.057(a), Occupations Code, is |
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amended to read as follows: |
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(a) The commission shall adopt rules for permitting tow |
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trucks and licensing towing operators and towing companies, |
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including rules for denial of applications and permits if the |
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applicant, a partner, principal, officer, or general manager of the |
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applicant, or other license or permit holder has: |
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(1) a criminal conviction, or has pleaded guilty or |
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nolo contendere to an offense, before the date of the application, |
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for: |
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(A) a felony; or |
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(B) a misdemeanor punishable by confinement in |
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jail or by a fine in an amount that exceeds $500; |
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(2) violated an order of the commission or executive |
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director, including an order for sanctions or administrative |
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penalties; |
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(3) failed to submit a license or permit bond in an |
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amount established by the commission; |
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(4) knowingly submitted false or incomplete |
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information on the application; or |
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(5) filed an application to permit a tow truck |
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previously permitted by a license or permit holder. |
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SECTION 3. Subchapter B, Chapter 2308, Occupations Code, is |
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amended by adding Section 2308.0575 to read as follows: |
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Sec. 2308.0575. RULES ON FEES; CONTRACT FOR STUDY; |
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CONFIDENTIAL INFORMATION. (a) To protect the public health and |
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safety, the commission by rule shall establish: |
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(1) the fees that may be charged in connection with a |
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private property tow; |
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(2) the maximum amount that may be charged for fees, |
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other than tow fees, that may be assessed by a towing company in |
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connection with a private property tow; and |
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(3) a maximum amount that may be charged for the |
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following private property tows: |
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(A) standard light-duty tows of motor vehicles |
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with a gross weight rating of 10,000 pounds or less; |
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(B) medium-duty tows of motor vehicles with a |
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gross weight rating of more than 10,000 pounds, but less than 25,000 |
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pounds; and |
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(C) heavy-duty tows of motor vehicles with a |
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gross weight rating that exceeds 25,000 pounds. |
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(b) In adopting rules under Subsection (a), the commission |
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shall contract for a study that: |
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(1) examines towing fee studies conducted by |
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municipalities in this state; and |
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(2) analyzes the cost of towing services by company, |
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the consumer price index, the geographic area, and individual cost |
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components. |
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(c) The commission may structure the maximum amounts that |
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may be charged for private property tows based on hourly or flat |
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fees or by geographic location. |
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(d) The commission shall maintain the confidentiality of |
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information contained in a study conducted under this section that |
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is claimed to be confidential for competitive purposes and may not |
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release information that identifies a person or company. The |
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confidential information is exempt from disclosure under Chapter |
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552, Government Code. |
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(e) To protect the confidentiality of the information, the |
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commission shall aggregate the information to the maximum extent |
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possible considering the purpose of the study. |
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(f) The department shall contract to conduct a study on |
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private property towing fees under this section at least once every |
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two years. |
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SECTION 4. Section 2308.060, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.060. POWERS AND DUTIES OF ADVISORY BOARD. The |
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advisory board shall provide advice and recommendations to the |
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department on technical matters relevant to the administration and |
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enforcement of this chapter, including examination content, |
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licensing standards, [and] continuing education requirements, and |
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maximum amounts that may be charged for fees related to private |
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property tows. |
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SECTION 5. Section 2308.202, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.202. REGULATION BY POLITICAL SUBDIVISIONS OF FEES |
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FOR NONCONSENT TOWS. The governing body of a political subdivision |
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may regulate the fees that may be charged or collected in connection |
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with a nonconsent tow originating in the territory of the political |
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subdivision if the private property tow fees: |
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(1) are authorized by commission rule; and |
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(2) do not exceed the maximum amount authorized by |
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commission rule. |
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SECTION 6. Section 2308.204, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.204. FEES FOR PRIVATE PROPERTY [NONCONSENT] TOWS |
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IN OTHER AREAS. [(a)] In an area in which no political subdivision |
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regulates the fees that may be charged or collected in connection |
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with [for] a private property [nonconsent] tow from private |
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property, a towing company may charge and collect fees [a fee] for |
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the tow of a motor vehicle [from private property] in an amount not |
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to exceed the maximum amount authorized by commission rule [an
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amount equal to 150 percent of the fee that the towing company would
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have been authorized to charge for a nonconsent tow made at the
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request of a peace officer of the political subdivision in which the
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private property is located]. |
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[(b)
A towing company may charge and collect a fee for the
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tow of a vehicle, with a gross vehicle weight rating in excess of
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26,000 pounds, from private property in an amount not to exceed an
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amount equal to 125 percent of the fee that the towing company would
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have been authorized to charge for a nonconsent tow made at the
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request of a peace officer of the political subdivision in which the
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private property is located.] |
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SECTION 7. Section 2308.206, Occupations Code, is amended |
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by adding Subsections (f) and (g) to read as follows: |
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(f) A license or permit holder may not charge a fee related |
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to a nonconsent tow that is not listed in the schedule most recently |
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submitted to the department under this section. |
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(g) The department may require a license or permit holder |
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that has violated Subsection (e) or (f) to reimburse the vehicle |
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owner or operator for the charges. |
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SECTION 8. Section 2308.208, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.208. MUNICIPAL OR COUNTY ORDINANCE REGULATING |
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UNAUTHORIZED VEHICLES AND TOWING OF MOTOR VEHICLES. The governing |
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body of a [A] municipality or the commissioners court of a county |
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may adopt an ordinance that is identical to this chapter or that |
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imposes additional requirements that exceed the minimum standards |
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of this chapter but may not adopt an ordinance conflicting with this |
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chapter. |
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SECTION 9. Section 2308.252(a), Occupations Code, is |
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amended to read as follows: |
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(a) A parking facility owner may, without the consent of the |
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owner or operator of an unauthorized vehicle, cause the vehicle and |
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any property on or in the vehicle to be removed and stored at a |
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vehicle storage facility at the vehicle owner's or operator's |
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expense if: |
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(1) signs that comply with Subchapter G prohibiting |
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unauthorized vehicles are located on the parking facility at the |
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time of towing and for the preceding 24 hours and remain installed |
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at the time of towing; |
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(2) the owner or operator of the vehicle has received |
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actual notice from the parking facility owner that the vehicle will |
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be towed at the vehicle owner's or operator's expense if it is in or |
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not removed from an unauthorized space; |
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(3) the parking facility owner gives notice to the |
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owner or operator of the vehicle under Subsection (b); or |
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(4) on request the parking facility owner provides to |
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the owner or operator of the vehicle information on the name of the |
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towing company and vehicle storage facility that will be used to |
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remove and store the vehicle and the vehicle is: |
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(A) left in violation of Section 2308.251 or |
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2308.253; or |
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(B) in or obstructing a portion of a paved |
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driveway or abutting public roadway used for entering or exiting |
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the facility. |
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SECTION 10. Section 2308.255(a), Occupations Code, is |
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amended to read as follows: |
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(a) A towing company that is insured as provided by |
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Subsection (c) may, without the consent of an owner or operator of |
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an unauthorized vehicle, remove and store the vehicle at a vehicle |
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storage facility at the expense of the owner or operator of the |
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vehicle if: |
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(1) the towing company has received written |
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verification from the parking facility owner that: |
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(A) the parking facility owner has installed the |
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signs required by Section 2308.252(a)(1); or |
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(B) the owner or operator received notice under |
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Section 2308.252(a)(2) or the parking facility owner gave notice |
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complying with Section 2308.252(a)(3); or |
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(2) on request the parking facility owner provides to |
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the owner or operator of the vehicle information on the name of the |
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towing company and vehicle storage facility that will be used to |
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remove and store the vehicle and the vehicle is: |
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(A) left in violation of Section 2308.251; or |
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(B) in or obstructing a portion of a paved |
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driveway or abutting public roadway used for entering or exiting |
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the facility and the removal is approved by a peace officer. |
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SECTION 11. Section 2308.256(a), Occupations Code, is |
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amended to read as follows: |
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(a) A vehicle storage facility accepting a vehicle that is |
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towed under this chapter shall within two hours after receiving the |
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vehicle report to the police department of the municipality from |
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[in] which the vehicle was towed [parking facility is located], or, |
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if the vehicle was towed from a location that [parking facility] is |
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not [located] in a municipality with [having] a police department, |
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to the sheriff of the county from [in] which the vehicle was towed |
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[parking facility is located]: |
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(1) a general description of the vehicle; |
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(2) the state and number of the vehicle's license |
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plate, if any; |
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(3) the vehicle identification number of the vehicle, |
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if it can be ascertained; |
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(4) the location from which the vehicle was towed; and |
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(5) the name and location of the vehicle storage |
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facility where the vehicle is being stored. |
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SECTION 12. Section 2308.404(c), Occupations Code, is |
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amended to read as follows: |
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(c) A towing company or parking facility owner who |
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intentionally, knowingly, or recklessly violates this chapter is |
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liable to the owner or operator of the vehicle that is the subject |
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of the violation for $1,000 [$300] plus three times the amount of |
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fees assessed in the vehicle's removal, towing, or storage. |
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SECTION 13. Section 2308.405, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.405. CRIMINAL PENALTY [VIOLATION OF CHAPTER;
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FINE]. A person commits an offense if the person violates |
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[violation of] this chapter. An offense under this section is a |
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misdemeanor punishable by a fine of not less than $500 or more than |
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$1,500 unless it is shown on trial of the offense that the person |
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knowingly or intentionally violated this chapter, in which event |
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the offense is a Class B misdemeanor. |
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SECTION 14. Section 2308.451, Occupations Code, is amended |
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by amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) If in a hearing held under this chapter the court does |
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not find that a person or law enforcement agency authorized, with |
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probable cause, the removal and storage in a vehicle storage |
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facility of a vehicle, the towing company, vehicle storage |
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facility, or parking facility owner [person] or law enforcement |
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agency that authorized the removal shall: |
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(1) pay the costs of the removal and storage; or |
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(2) reimburse the owner or operator for the cost of the |
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removal and storage paid by the owner or operator. |
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(c) If, in a hearing held under this chapter, regardless of |
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whether the court finds that there was probable cause for the |
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removal and storage of a vehicle, the court finds that the towing |
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charge collected exceeded fees regulated by a political subdivision |
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or authorized by this chapter or Chapter 2303, the towing company |
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shall reimburse the owner or operator of the vehicle an amount equal |
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to the overcharge. |
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SECTION 15. Section 2308.453, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.453. JURISDICTION. A hearing under this chapter |
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shall be in the justice court having jurisdiction in the precinct |
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from [in] which the motor vehicle was towed [storage facility is
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located]. |
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SECTION 16. Section 2308.454, Occupations Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) If the towing company or vehicle storage facility that |
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received the payment fails to furnish to the owner or operator of |
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the vehicle the name, address, and telephone number of the parking |
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facility owner or law enforcement agency that authorized the |
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removal of the vehicle, the towing company or vehicle storage |
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facility that received the payment is liable if the court, after a |
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hearing, does not find probable cause for the removal and storage of |
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the vehicle. |
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SECTION 17. Section 2308.455, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.455. CONTENTS OF NOTICE. The notice under |
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Section 2308.454 must include: |
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(1) a statement of: |
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(A) the person's right to submit a request within |
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14 days for a court hearing to determine whether probable cause |
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existed to remove the vehicle; |
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(B) the information that a request for a hearing |
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must contain; and |
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(C) any filing fee for the hearing; |
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(2) the name, address, and telephone number of the |
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towing company that removed the vehicle; |
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(3) the name, address, and telephone number of the |
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vehicle storage facility in which the vehicle was placed; |
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(4) the name, street address including city, state, |
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and zip code, and telephone number of the person, parking facility |
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[property] owner, or law enforcement agency that authorized the |
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removal of the vehicle; and |
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(5) the name, address, and telephone number of the |
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justice court having jurisdiction in the precinct in which the |
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parking [vehicle storage] facility is located. |
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SECTION 18. Section 2308.456, Occupations Code, is amended |
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by amending Subsection (a) and adding Subsection (c-1) to read as |
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follows: |
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(a) Except as provided by Subsections [Subsection] (c) and |
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(c-1), a person entitled to a hearing under this chapter must |
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deliver a written request for the hearing to the court before the |
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14th day after the date the vehicle was removed and placed in the |
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vehicle storage facility, excluding Saturdays, Sundays, and legal |
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holidays. |
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(c-1) The 14-day period for requesting a hearing under |
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Subsection (a) does not begin until the date on which the towing |
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company or vehicle storage facility provides to the vehicle owner |
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or operator the information necessary for the vehicle owner or |
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operator to complete the material for the request for hearing |
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required under Subsections (b)(2) through (6). |
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SECTION 19. Sections 2308.458(a) and (b), Occupations Code, |
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are amended to read as follows: |
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(a) A hearing under this chapter shall be held before the |
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21st calendar [14th working] day after the date the court receives |
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the request for the hearing. |
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(b) The court shall notify the person who requested the |
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hearing, the parking facility owner [person] or law enforcement |
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agency that authorized the removal of the vehicle, the towing |
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company, and the vehicle storage facility in which the vehicle was |
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placed of the date, time, and place of the hearing in a manner |
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provided by Rule 21a, Texas Rules of Civil Procedure. The notice of |
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the hearing to the towing company and the parking facility owner |
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[person] or law enforcement agency that authorized the removal of |
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the vehicle shall include a copy of the request for hearing. |
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SECTION 20. Section 2308.460, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.460. ENFORCEMENT OF AWARD. (a) An award under |
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this chapter may be enforced by any means available for the |
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enforcement of a judgment for a debt. |
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(b) The department shall suspend a license holder's license |
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on the license holder's failure to pay a final judgment awarded to |
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an owner or operator of a vehicle before the 60th day after the date |
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of the final judgment. The department must provide notice of the |
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suspension to the license holder at least 30 days before the date |
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the license is to be suspended. |
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(c) The owner or operator of the vehicle shall submit a |
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certified copy of the final judgment to the department. |
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(d) On receipt of the certified copy of the unpaid final |
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judgment, the department shall disqualify a person from renewing a |
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license or permit or deny the person the opportunity of taking a |
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licensing examination on the grounds that the person, towing |
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company, or vehicle storage facility has not paid a final judgment |
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awarded to an owner or operator of a vehicle. |
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(e) The department shall reinstate the license on |
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submission of evidence satisfactory to the department of payment of |
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the final judgment by the person, towing company, or vehicle |
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storage facility. |
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SECTION 21. Section 2303.159(a), Occupations Code, is |
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amended to read as follows: |
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(a) The operator of a vehicle storage facility shall accept |
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payment by an electronic check, debit card, or credit card for any |
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charge associated with delivery or storage of a vehicle. The |
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facility shall conspicuously post a sign that states: "This |
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vehicle storage facility must accept payment by an electronic |
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check, credit card, or debit card for any fee or charge associated |
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with delivery or storage of a vehicle." The operator of a vehicle |
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storage facility may not refuse to release a vehicle based on the |
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inability of the facility to accept payment by electronic check, |
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debit card, or credit card of a fee or charge associated with |
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delivery or storage of the vehicle unless the operator, through no |
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fault of the operator, is unable to accept the electronic check, |
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debit card, or credit card because of a power outage or a machine |
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malfunction. |
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SECTION 22. Not later than September 1, 2010, the Texas |
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Commission of Licensing and Regulation shall adopt the rules |
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necessary to implement the changes in law made by this Act, |
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including rules on the maximum amount of fees that may be charged |
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for private property tows. |
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SECTION 23. (a) The change in law made by this Act to |
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Section 2308.405, Occupations Code, applies only to an offense |
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committed on or after the effective date of this Act. For purposes |
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of this section, an offense is committed before the effective date |
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of this Act if any element of the offense occurs before that date. |
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(b) An offense committed before the effective date of this |
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Act is covered by the law in effect when the offense was committed, |
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and the former law is continued in effect for that purpose. |
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SECTION 24. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2009. |
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(b) Section 2308.0575, Occupations Code, as added by this |
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Act, and Sections 2308.202 and 2308.204, Occupations Code, as |
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amended by this Act, take effect September 1, 2010. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2571 was passed by the House on April |
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28, 2009, by the following vote: Yeas 147, Nays 0, 1 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 2571 on May 25, 2009, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 2571 on May 31, 2009, by the following vote: Yeas 142, |
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Nays 0, 1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2571 was passed by the Senate, with |
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amendments, on May 22, 2009, by the following vote: Yeas 31, Nays |
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0; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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2571 on May 31, 2009, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |