S.B. No. 452
AN ACT
1-1 relating to the regulation and operation of tow trucks and storage
1-2 facilities; creating offenses and providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (b), Section 5.05, Chapter 741, Acts
1-5 of the 67th Legislature, Regular Session, 1981 (Article 4477-9a,
1-6 Vernon's Texas Civil Statutes), is amended to read as follows:
1-7 (b) If a garagekeeper or storage facility acquires
1-8 possession of a motor vehicle for a purpose other than repair, the
1-9 garagekeeper or storage facility is entitled to towing,
1-10 preservation, and notification charges and to reasonable storage
1-11 fees, in addition to storage fees earned pursuant to contract, for
1-12 a maximum of five <7> days only until notification is mailed to the
1-13 last known registered owner and all lien holders of record as
1-14 provided by Subsection (a) of this section. After such notice is
1-15 mailed, storage fees may continue until the vehicle is removed and
1-16 all accrued charges are paid. A garagekeeper who fails to report
1-17 the possession of an abandoned vehicle to the police department
1-18 within 48 hours <7 days> after it becomes abandoned may no longer
1-19 claim reimbursement for storage of the vehicle.
1-20 SECTION 2. Subdivision (1), Subsection (a), Section 5i,
1-21 Chapter 88, General Laws, Acts of the 41st Legislature, 2nd Called
1-22 Session, 1929 (Article 6675a-5i, Vernon's Texas Civil Statutes), is
1-23 amended to read as follows:
2-1 (1) "Tow truck" means a motor vehicle or mechanical
2-2 device adapted or used to tow, winch, or otherwise move <disabled>
2-3 motor vehicles.
2-4 SECTION 3. Subsection (b), Section 5i, Chapter 88, General
2-5 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
2-6 (Article 6675a-5i, Vernon's Texas Civil Statutes), is amended to
2-7 read as follows:
2-8 (b) The department shall design and provide for the issuance
2-9 of <special> license plates for commercial motor vehicles used as
2-10 tow trucks. The license plates shall bear the words "Tow Truck."
2-11 SECTION 4. Section 2, Vehicle Storage Facility Act (Article
2-12 6687-9a, Revised Statutes), is amended by amending Subdivisions (1)
2-13 and (3) and adding Subdivision (7) to read as follows:
2-14 (1) "Commission" <"Commissioner"> means the Railroad
2-15 Commission of Texas <commissioner of licensing and regulation>.
2-16 (3) "Vehicle storage facility" means a garage, parking
2-17 lot, or any type of facility owned by a person other than a
2-18 governmental entity for storing or parking 10 or more vehicles a
2-19 year.
2-20 (7) "Preservation" means an action taken by or at the
2-21 direction of the owner or operator of a vehicle storage facility
2-22 that is necessary to preserve, protect, or service a vehicle stored
2-23 or parked at the facility.
2-24 SECTION 5. Sections 4, 5, 6, 7, 8, and 10, Vehicle Storage
2-25 Facility Act (Article 6687-9a, Revised Statutes), are amended to
3-1 read as follows:
3-2 Sec. 4. Authority. (a) The commission <commissioner> may
3-3 issue licenses to operate vehicle storage facilities.
3-4 (b) The commission <commissioner> shall adopt rules
3-5 establishing requirements for the licensing of persons to operate
3-6 vehicle storage facilities to ensure that licensed storage
3-7 facilities maintain adequate standards for the care of stored
3-8 vehicles.
3-9 Sec. 5. Prohibition. A person may not operate a vehicle
3-10 storage facility unless the person holds a current license to
3-11 operate a vehicle storage facility issued to the person by the
3-12 commission <commissioner>.
3-13 Sec. 6. Application. (a) The commission <commissioner> by
3-14 rule shall determine the types of information to be supplied on an
3-15 application for a license under this article, but the rules must
3-16 require that an application be made under oath and list:
3-17 (1) each conviction of a felony, or a misdemeanor for
3-18 which the maximum punishment is by confinement in jail or by a fine
3-19 exceeding $200, that was obtained against the applicant or a
3-20 partner or officer of the applicant in the three years immediately
3-21 preceding the date of the application;
3-22 (2) the name and address of each partner, if the
3-23 applicant is a partnership; and
3-24 (3) the name and address of the president, secretary,
3-25 and treasurer of the corporation, if the applicant is a
4-1 corporation.
4-2 (b) The application of a corporation must be signed and
4-3 sworn to by the president and secretary of the corporation.
4-4 Sec. 7. Approval. The commission <commissioner> shall
4-5 approve an application that is submitted as provided by Section 6
4-6 of this article for a license to operate a vehicle storage facility
4-7 unless the commission <commissioner> determines that:
4-8 (1) the applicant knowingly supplied false or
4-9 incomplete information on the application;
4-10 (2) the applicant, one of the applicant's partners, a
4-11 principal or the general manager of the applicant, or one of the
4-12 applicant's officers has been convicted of a felony, or a
4-13 misdemeanor for which the maximum punishment is by confinement in
4-14 jail or by a fine exceeding $500, in the three years preceding the
4-15 date of the application; or
4-16 (3) the vehicle storage facility for which the license
4-17 is sought does not meet the standards for storage facilities
4-18 established by the rules of the commission <commissioner>.
4-19 Sec. 8. Notice of Denial. If the commission <commissioner>
4-20 denies an application for a license under this article, the
4-21 commission <department> shall send written notice of the decision
4-22 to the applicant, at the address shown on the application, by
4-23 certified mail, return receipt requested. The notice shall state
4-24 the reason for the commission's <commissioner's> decision and that
4-25 the applicant is entitled to a hearing before the commission
5-1 <commissioner> under Section 11 of this article. The notice may
5-2 state that the decision is temporary pending compliance by the
5-3 applicant. If the decision is temporary and the applicant complies
5-4 with the requirements of this article and rules of the commission
5-5 <commissioner> before the 15th day after the date the applicant
5-6 receives the notice, the commission <commissioner> shall then
5-7 approve the application.
5-8 Sec. 10. Sanctions. (a) The commission <commissioner>
5-9 shall adopt rules relating to the administrative sanctions that may
5-10 be enforced against a licensee. If a licensee, a partner of a
5-11 licensee, a principal in the licensee's business, or an employee of
5-12 the licensee violates, with the knowledge of the licensee, this
5-13 article or a rule or order adopted under this article, the
5-14 commission <commissioner> may:
5-15 (1) issue a written warning to the licensee specifying
5-16 the violations;
5-17 (2) deny, revoke, or suspend an application under this
5-18 article;
5-19 (3) place on probation a person whose license has been
5-20 suspended; or
5-21 (4) assess an administrative penalty in an amount not
5-22 to exceed $1,000 for each violation, with each violation considered
5-23 a separate offense.
5-24 (b) The commission <commissioner> may revoke or suspend a
5-25 license issued under this article or place on probation a person
6-1 whose license has been suspended if the commission <commissioner>
6-2 determines that a licensee, a partner of the licensee, a principal
6-3 in the licensee's business, or an employee of the licensee has been
6-4 finally convicted of:
6-5 (1) a felony; or
6-6 (2) a misdemeanor that:
6-7 (A) is punishable by confinement or by a fine
6-8 that exceeds $500; and
6-9 (B) directly relates to a duty or responsibility
6-10 of an operator of a vehicle storage facility.
6-11 (c) If it appears that a person is in violation of or is
6-12 threatening to violate this article or a rule or order adopted
6-13 under this article, the commission <commissioner> or the attorney
6-14 general at the commission's <commissioner's> request may institute
6-15 an action for injunctive relief, to recover a civil penalty not to
6-16 exceed $1,000 for each violation, or for both injunctive relief and
6-17 the civil penalty. If the commission <commissioner> or the
6-18 attorney general prevails in an action under this subsection, the
6-19 commission <commissioner> or the attorney general is entitled to
6-20 recover reasonable attorney's fees and court costs.
6-21 (d) A peace officer or license and weight inspector for the
6-22 Department of Public Safety may make an arrest for a violation of a
6-23 rule adopted under this article.
6-24 SECTION 6. Subsection (a), Section 11, Vehicle Storage
6-25 Facility Act (Article 6687-9a, Revised Statutes), is amended to
7-1 read as follows:
7-2 (a) A person whose application for a license to operate a
7-3 storage facility has been denied, whose license has been revoked,
7-4 or whose application to renew a license has been denied may, before
7-5 the 15th day after the date the person receives notice of the
7-6 revocation or denial, request in writing a hearing before the
7-7 commission <commissioner> on the revocation or denial.
7-8 SECTION 7. Section 13, Vehicle Storage Facility Act (Article
7-9 6687-9a, Revised Statutes), is amended to read as follows:
7-10 Sec. 13. NOTIFICATION OF OWNER. (a) The operator of a
7-11 vehicle storage facility who receives a vehicle that has been towed
7-12 to the facility for storage shall, not later than the fifth
7-13 <seventh> day but not before 24 hours after the date the operator
7-14 receives the vehicle, send a written notice to the registered owner
7-15 and the primary lienholder of the vehicle. The operator of the
7-16 storage facility may charge the owner of the vehicle a reasonable
7-17 fee for sending the notice required by this subsection. <This
7-18 subsection does not apply to notice for a vehicle that is removed
7-19 by the owner before the seventh day after the date the operator
7-20 receives the vehicle.>
7-21 (b) The notice must be sent by certified mail, return
7-22 receipt requested, and must contain:
7-23 (1) the date the vehicle was accepted for storage;
7-24 (2) the first day for which a storage fee is assessed;
7-25 (3) the daily storage rate;
8-1 (4) the type and amount of all other charges to be
8-2 paid when the vehicle is claimed;
8-3 (5) the full name, street address, and telephone
8-4 number of the facility;
8-5 (6) the hours during which the owner may claim the
8-6 vehicle; and
8-7 (7) the facility license number preceded by "Railroad
8-8 Commission of Texas <Department of Licensing and Regulation>
8-9 Vehicle Storage Facility License Number."
8-10 (c) A notice is considered to be timely filed if the
8-11 postmark shows that it was mailed within the five-day <seven-day>
8-12 period provided by Subsection (a) of this section.
8-13 SECTION 8. Subsection (b), Section 14, Vehicle Storage
8-14 Facility Act (Article 6687-9a, Revised Statutes), is amended to
8-15 read as follows:
8-16 (b) The operator of a vehicle storage facility is entitled
8-17 to <may not> charge an owner <more than> $10 for preservation of a
8-18 stored motor vehicle.
8-19 SECTION 9. Section 15, Vehicle Storage Facility Act (Article
8-20 6687-9a, Revised Statutes), is amended to read as follows:
8-21 Sec. 15. USE OF FEES. The commission <commissioner> shall
8-22 remit all fees collected under this article to the State Treasurer
8-23 for deposit in the State Treasury to the credit of a fund to be
8-24 used, subject to legislative appropriation, for administering this
8-25 article.
9-1 SECTION 10. Section 17, Vehicle Storage Facility Act
9-2 (Article 6687-9a, Revised Statutes), is amended to read as follows:
9-3 Sec. 17. OFFENSES; PENALTIES <PENALTY>. (a) A person
9-4 commits an offense if the person:
9-5 (1) operates a vehicle storage facility that does not
9-6 have a valid license issued under this article; or
9-7 (2) violates any rule adopted by the commission under
9-8 this article.
9-9 (b) A person convicted of an offense under this section
9-10 shall be punished by a fine of not less than $200 and not more than
9-11 $500 <An offense under this section is a Class C misdemeanor>.
9-12 (c) A person commits a separate offense for each day the
9-13 person acts in violation of this section.
9-14 SECTION 11. Sections 1, 2, 3, 4, 6, 7, 8, and 11, Chapter
9-15 1135, Acts of the 70th Legislature, Regular Session, 1987 (Article
9-16 6687-9b, Vernon's Texas Civil Statutes), are amended to read as
9-17 follows:
9-18 Sec. 1. Definitions. In this Act:
9-19 (1) "Commission" means the Railroad Commission of
9-20 Texas <Commission of Licensing and Regulation>.
9-21 (2) <"Commissioner" means the commissioner of
9-22 licensing and regulation.>
9-23 <(3) "Department" means the Texas Department of
9-24 Licensing and Regulation.>
9-25 <(4)> "Tow truck" means a motor vehicle or mechanical
10-1 device adapted or used to tow, winch, or otherwise move <disabled>
10-2 motor vehicles.
10-3 (3) <(5)> "Tow truck owner" means a person engaged in
10-4 the business of using a tow truck to tow, winch, or otherwise move
10-5 a motor vehicle.
10-6 Sec. 2. Registration Requirement. (a) Except as provided
10-7 by Sections <Section> 5 and 11A of this Act, a person may not
10-8 operate a tow truck in this state unless the tow truck is
10-9 registered with the commission <department> as provided by this
10-10 Act.
10-11 (b) The commission <commissioner> shall issue a certificate
10-12 of registration to a tow truck owner whose vehicle meets the
10-13 registration requirements prescribed by rule of the
10-14 commission <commissioner> and who pays the registration fee.
10-15 (c) A certificate of registration issued under this Act is
10-16 not transferable.
10-17 (d) Registration fees collected under this Act shall be
10-18 deposited in a special account in the general revenue fund to be
10-19 known as the tow truck registration account, which may be
10-20 appropriated only to the commission for the registration and
10-21 regulation of tow trucks.
10-22 Sec. 3. POWERS AND DUTIES OF COMMISSION <COMMISSIONER>. The
10-23 commission <commissioner> shall adopt rules, in the interest of
10-24 public safety, that provide requirements for registration and
10-25 maintenance of registration under this Act. Rules adopted under
11-1 this section must include <regarding only the> minimum insurance
11-2 requirements for the operation of tow trucks and minimum safety
11-3 standards regarding the operation of tow trucks.
11-4 Sec. 4. IDENTIFICATION REQUIREMENT. (a) A <To be eligible
11-5 for registration under this Act, a> tow truck covered by this Act
11-6 must be labeled on both sides of the tow truck with the name, city
11-7 <address>, and telephone number of the tow truck business of the
11-8 tow truck owner.
11-9 (b) The commission <commissioner> shall adopt rules relating
11-10 to the identification requirement imposed under this section.
11-11 Sec. 6. RENEWAL. A certificate of registration is valid for
11-12 the period set by the commission and may be renewed by paying to
11-13 the commission <commissioner> the required renewal fee.
11-14 Sec. 7. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
11-15 (a) The commission <commissioner> may deny, suspend, revoke, or
11-16 reinstate a certificate of registration.
11-17 (b) The commission <commissioner> shall adopt rules
11-18 establishing the procedures for denial, suspension, revocation, or
11-19 reinstatement of a certificate of registration for failure to
11-20 follow the <insurance and minimum safety> requirements established
11-21 by the commission <commissioner>.
11-22 (c) Proceedings relating to the denial, suspension, or
11-23 revocation of a certificate of registration issued under this Act
11-24 are subject to the Administrative Procedure and Texas Register Act
11-25 (Article 6252-13a, Vernon's Texas Civil Statutes).
12-1 Sec. 8. OFFENSES; PENALTIES <PENALTY>. (a) A person
12-2 commits an offense if the person:
12-3 (1) violates a rule adopted by the commission under
12-4 this Act; or
12-5 (2) operates <for compensation> a tow truck that does
12-6 not have:
12-7 (A) a valid certificate of registration issued
12-8 under this Act; and
12-9 (B) a valid tow truck license plate attached to
12-10 the rear of the tow truck that is clearly visible from the rear of
12-11 the truck.
12-12 (b) A person convicted of a violation of this section shall
12-13 be punished by a fine of not less than $200 and not more than $500
12-14 <An offense under this section is a Class C misdemeanor>.
12-15 (c) A person commits a separate offense for each day the
12-16 person acts in violation of this section.
12-17 Sec. 11. <EFFECTIVE DATE FOR REGISTRATION> REQUIREMENT OF
12-18 DRIVER'S LICENSE. (a) A person who holds a valid driver's license
12-19 or a valid commercial driver's license may not be required by a
12-20 municipality or political subdivision in this state to obtain a
12-21 license from the municipality or political subdivision for the
12-22 operation of a tow truck. A municipality may require a municipal
12-23 license for a tow truck operator performing private property tows
12-24 within the boundaries of the municipality without regard to the
12-25 location of the place of business of the tow truck owner. A
13-1 license fee may not exceed $15.
13-2 (b) In this section:
13-3 (1) "Driver's license" has the meaning assigned by
13-4 Section 1, Chapter 173, Acts of the 47th Legislature, Regular
13-5 Session, 1941 (Article 6687b, Vernon's Texas Civil Statutes),
13-6 including subsequent amendments to that definition.
13-7 (2) "Commercial driver's license" has the meaning
13-8 assigned by Section 3, Texas Commercial Driver's License Act
13-9 (Article 6687b-2, Revised Statutes), including subsequent
13-10 amendments to that definition <is engaged in business as a tow
13-11 truck owner on September 1, 1987, is not required to obtain a
13-12 certificate of registration under this Act for that tow truck until
13-13 February 1, 1988>.
13-14 SECTION 12. Chapter 1135, Acts of the 70th Legislature,
13-15 Regular Session, 1987 (Article 6687-9b, Vernon's Texas Civil
13-16 Statutes), is amended by adding Section 11A to read as follows:
13-17 Sec. 11A. EXCLUSIONS; EXEMPTIONS. (a) The following
13-18 vehicles are excluded from regulation under this Act and exempted
13-19 from registration under this Act:
13-20 (1) a tow truck that is:
13-21 (A) registered under the motor vehicle
13-22 registration laws of another state;
13-23 (B) operated in connection with and based at a
13-24 towing business located in another state;
13-25 (C) registered with a department or agency of
14-1 another state;
14-2 (D) regulated under the laws of another state
14-3 that, as to the operation of tow trucks, establish standards that
14-4 equal or exceed the requirements of this Act; and
14-5 (E) operated only temporarily or occasionally on
14-6 the highways of this state;
14-7 (2) a tow truck owned by and used exclusively in the
14-8 service of the United States, the State of Texas, a county, a city,
14-9 or a school district;
14-10 (3) a light commercial vehicle having a manufacturer's
14-11 rated carrying capacity of one ton or less to which a chain, strap,
14-12 or rented tow bar or towing device is affixed and that is operated
14-13 by an individual not in an automotive-related or
14-14 motor-vehicle-related business;
14-15 (4) a vehicle that is towing a race car, a motor
14-16 vehicle for exhibition, or an antique motor vehicle and is not
14-17 being operated as a part of a business or profession;
14-18 (5) a recreational vehicle, as defined by the Texas
14-19 Commercial Driver's License Act (Article 6687b-2, Revised
14-20 Statutes), including subsequent amendments to that definition,
14-21 towing another vehicle for a noncommercial purpose;
14-22 (6) a commercial transport vehicle that is capable of
14-23 hauling four or more motor vehicles;
14-24 (7) a vehicle used only for towing motorcycles and
14-25 incapable of towing any other type of vehicle;
15-1 (8) a non-tow-truck vehicle or tow device used by a
15-2 rental car agency to move vehicles for customer use;
15-3 (9) a non-tow-truck vehicle or tow device used in
15-4 agricultural operations for agricultural purposes; and
15-5 (10) non-tow-truck vehicles or tow devices owned by a
15-6 licensee of the Motor Vehicle Board of the Texas Department of
15-7 Transportation in transporting a vehicle owned by the licensee or a
15-8 customer of the licensee.
15-9 (b) The commission shall adopt rules to administer this
15-10 section.
15-11 SECTION 13. Chapter 1135, Acts of the 70th Legislature,
15-12 Regular Session, 1987 (Article 6687-9b, Vernon's Texas Civil
15-13 Statutes), is amended by adding Section 11B to read as follows:
15-14 Sec. 11B. FEES. Fees collected under this Act shall be
15-15 remitted to the comptroller for deposit to the credit of an account
15-16 in the general revenue fund, which shall be designated by the
15-17 comptroller. Money in the account may be appropriated only to the
15-18 commission for the enforcement of this Act.
15-19 SECTION 14. Subsection (c), Section 3, Chapter 42, General
15-20 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
15-21 (Article 6701d-11, Vernon's Texas Civil Statutes), is amended by
15-22 adding Subdivision (8) to read as follows:
15-23 (8) The length limitations of this subsection do not
15-24 apply to the combination of a tow truck and another vehicle or
15-25 vehicle combination if:
16-1 (A) the other vehicle or vehicle combination
16-2 cannot be normally or safely driven or was abandoned on a highway;
16-3 and
16-4 (B) the tow truck is towing the other vehicle or
16-5 vehicle combination directly from its location on the highway to
16-6 the nearest authorized place of repair, terminal, or destination of
16-7 unloading.
16-8 SECTION 15. (a) A rule adopted by the Texas Commission of
16-9 Licensing and Regulation or the commissioner of licensing and
16-10 regulation under Chapter 1135, Acts of the 70th Legislature,
16-11 Regular Session, 1987 (Article 6687-9b, Vernon's Texas Civil
16-12 Statutes), or the Vehicle Storage Facility Act (Article 6687-9a,
16-13 Revised Statutes) before the effective date of this Act remains in
16-14 effect as a rule of the Railroad Commission of Texas.
16-15 (b) A certificate of registration or a license that is valid
16-16 on the effective date of this Act remains valid until it expires or
16-17 until the Railroad Commission of Texas suspends or revokes the
16-18 registration or license.
16-19 (c) A proceeding to suspend or revoke a certificate of
16-20 registration issued under Chapter 1135, Acts of the 70th
16-21 Legislature, Regular Session, 1987 (Article 6687b, Vernon's Texas
16-22 Civil Statutes), or a license issued under the Vehicle Storage
16-23 Facility Act (Article 6687-9a, Revised Statutes) pending before the
16-24 Texas Commission of Licensing and Regulation on the effective date
16-25 of this Act is transferred without change in status to the Railroad
17-1 Commission of Texas on the effective date of this Act.
17-2 (d) All records of the Texas Commission of Licensing and
17-3 Regulation involving the registration of tow trucks under Chapter
17-4 1135, Acts of the 70th Legislature, Regular Session, 1987 (Article
17-5 6687-9b, Vernon's Texas Civil Statutes), or the licensing of
17-6 vehicle storage facilities under the Vehicle Storage Facility Act
17-7 (Article 6687-9a, Revised Statutes) shall be, on the effective date
17-8 of this Act, transferred to the Railroad Commission of Texas.
17-9 SECTION 16. Subdivision (2), Section 2, Vehicle Storage
17-10 Facility Act (Article 6687-9a, Revised Statutes), is repealed.
17-11 SECTION 17. (a) This Act takes effect September 1, 1993.
17-12 (b) The changes in law made by Sections 10 and 11 of this
17-13 Act apply only to an offense committed on or after that date. An
17-14 offense committed before the effective date of this Act is covered
17-15 by the law in effect when the offense was committed, and the former
17-16 law is continued in effect for that purpose. For purposes of this
17-17 section, an offense was committed before the effective date of this
17-18 Act if any element of the offense occurred before that date.
17-19 SECTION 18. The importance of this legislation and the
17-20 crowded condition of the calendars in both houses create an
17-21 emergency and an imperative public necessity that the
17-22 constitutional rule requiring bills to be read on three several
17-23 days in each house be suspended, and this rule is hereby suspended.