By Duncan S.B. No. 1632
75R8269 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of vehicle storage facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Vehicle Storage Facility Act (Article
1-5 6687-9a, Revised Statutes), is amended to read as follows:
1-6 Sec. 2. DEFINITIONS. In this article:
1-7 (1) "Commission" means the Texas [Department of]
1-8 Transportation Commission.
1-9 (2) "Department" means the Texas Department of
1-10 Transportation.
1-11 (3) "Director" means the executive director of the
1-12 department or the executive director's designee not below the rank
1-13 of division or special office director.
1-14 (4) [(3)] "Vehicle storage facility" means a garage,
1-15 parking lot, or any type of facility owned by a person other than a
1-16 governmental entity, except as provided by Section 14(f) of this
1-17 article, for storing or parking 10 or more vehicles a year.
1-18 (5) [(4)] "Vehicle" means a motor vehicle subject to
1-19 registration under the Certificate of Title Act (Transportation
1-20 Code, Chapter 501) [(Article 6687-1, Vernon's Texas Civil
1-21 Statutes)] or any other device designed to be self-propelled or
1-22 transported on a public highway.
1-23 (6) [(5)] "Owner of a vehicle" means:
1-24 (A) a person in whose name the vehicle is
2-1 registered under the Certificate of Title Act (Transportation Code,
2-2 Chapter 501) [(Article 6687-1, Vernon's Texas Civil Statutes)];
2-3 (B) a person in whose name the vehicle is
2-4 registered under Transportation Code, Chapter 502 [Section 2,
2-5 Chapter 88, General Laws, Acts of the 41st Legislature, 2nd Called
2-6 Session, 1929 (Article 6675a-2, Vernon's Texas Civil Statutes)], or
2-7 a member of the person's immediate family;
2-8 (C) a person who holds the vehicle through a
2-9 valid lease agreement; or
2-10 (D) an unrecorded lienholder whose right to
2-11 possess the vehicle exists through a chattel mortgage.
2-12 (7) "Person" includes corporation, organization,
2-13 business trust, estate, trust, partnership, association, and any
2-14 other legal entity.
2-15 (8) [(6)] "Principal" means an individual who:
2-16 (A) holds personally or as a beneficiary of a
2-17 trust or by other constructive method:
2-18 (i) 10 percent of a corporation's
2-19 outstanding stock; or
2-20 (ii) more than $25,000 of the fair market
2-21 value of a business;
2-22 (B) has the controlling interest in a business;
2-23 (C) has a participating interest of more than 10
2-24 percent in the profits, proceeds, or capital gains of a business,
2-25 regardless of whether the interest is direct or indirect, is
2-26 through shares, stock, or any other manner, or includes voting
2-27 rights;
3-1 (D) is a member of the board of directors or
3-2 other governing body of a business; or
3-3 (E) serves as an elected officer of a business.
3-4 (9) [(7)] "Preservation" means an action taken by or
3-5 at the direction of the owner or operator of a vehicle storage
3-6 facility that is necessary to preserve, protect, or service a
3-7 vehicle stored or parked at the facility.
3-8 SECTION 2. Subsections (a) and (c), Section 4, Vehicle
3-9 Storage Facility Act (Article 6687-9a, Revised Statutes), are
3-10 amended to read as follows:
3-11 (a) The department [commission] may issue licenses to
3-12 operate storage facilities.
3-13 (c) The department [commission] may impose and collect a fee
3-14 for a license in an amount sufficient to recover the department's
3-15 [commission's] costs of administering this Act. Fees collected
3-16 under this subsection shall be deposited in the general revenue
3-17 fund. The commission [department] may adopt rules regarding the
3-18 method of payment of a fee under this Act. The rules may authorize
3-19 the use of electronic funds transfer or a valid credit card issued
3-20 by a financial institution chartered by a state or the federal
3-21 government or by a nationally recognized credit organization
3-22 approved by the department. The rules may require the payment of a
3-23 discount or a service charge for a credit payment in addition to
3-24 the fee.
3-25 SECTION 3. Section 5, Vehicle Storage Facility Act (Article
3-26 6687-9a, Revised Statutes), is amended to read as follows:
3-27 Sec. 5. PROHIBITION. A person may not operate a vehicle
4-1 storage facility unless the person holds a current license to
4-2 operate a vehicle storage facility issued to the person by the
4-3 department [commission].
4-4 SECTION 4. Section 7, Vehicle Storage Facility Act (Article
4-5 6687-9a, Revised Statutes), is amended to read as follows:
4-6 Sec. 7. APPROVAL. The department [commission] shall approve
4-7 an application that is submitted as provided by Section 6 of this
4-8 article for a license to operate a vehicle storage facility unless
4-9 the department [commission] determines that:
4-10 (1) the applicant knowingly supplied false or
4-11 incomplete information on the application;
4-12 (2) the applicant, one of the applicant's partners, a
4-13 principal or the general manager of the applicant, or one of the
4-14 applicant's officers has been convicted of a felony, or a
4-15 misdemeanor for which the maximum punishment is by confinement in
4-16 jail or by a fine exceeding $500, in the three years preceding the
4-17 date of the application; or
4-18 (3) the vehicle storage facility for which the license
4-19 is sought does not meet the standards for storage facilities
4-20 established by the rules of the department [commission].
4-21 SECTION 5. Section 8, Vehicle Storage Facility Act (Article
4-22 6687-9a, Revised Statutes), is amended to read as follows:
4-23 Sec. 8. NOTICE OF DENIAL. If the department [commission]
4-24 denies an application for a license under this article, the
4-25 department [commission] shall send notice of the decision to the
4-26 applicant, at the address shown on the application, by certified
4-27 mail, return receipt requested. The notice shall state the reason
5-1 for the department's [commission's] decision and that the applicant
5-2 is entitled to a hearing before the department [commission] under
5-3 Section 11 of this article. The notice may state that the decision
5-4 is temporary pending compliance by the applicant. If the decision
5-5 is temporary and the applicant complies with the requirements of
5-6 this article and rules of the commission before the 15th day after
5-7 the date the applicant receives the notice, the department
5-8 [commission] shall then approve the application.
5-9 SECTION 6. Subsections (a) and (b), Section 9, Vehicle
5-10 Storage Facility Act (Article 6687-9a, Revised Statutes), are
5-11 amended to read as follows:
5-12 (a) A license issued under this article is valid for the
5-13 period set by the department [commission].
5-14 (b) A person may apply to the department [commission] to
5-15 renew the license on an application form approved by the department
5-16 [commission]. An application for renewal of a license must be
5-17 accompanied by a nonrefundable fee.
5-18 SECTION 7. Subsections (a), (b), and (c), Section 10,
5-19 Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes),
5-20 are amended to read as follows:
5-21 (a) The commission shall adopt rules relating to the
5-22 administrative sanctions that may be enforced against a licensee.
5-23 If a licensee, a partner of a licensee, a principal in the
5-24 licensee's business, or an employee of the licensee violates, with
5-25 the knowledge of the licensee, this article or a rule or order
5-26 adopted under this article, the department [commission] may:
5-27 (1) issue a written warning to the licensee specifying
6-1 the violations;
6-2 (2) deny, revoke, or suspend an application or license
6-3 under this article;
6-4 (3) place on probation a person whose license has been
6-5 suspended; or
6-6 (4) assess an administrative penalty in an amount not
6-7 to exceed $1,000 for each violation, with each violation considered
6-8 a separate offense.
6-9 (b) The department [commission] may revoke or suspend a
6-10 license issued under this article or place on probation a person
6-11 whose license has been suspended if the department [commission]
6-12 determines that a licensee, a partner of the licensee, a principal
6-13 in the licensee's business, or an employee of the licensee has been
6-14 finally convicted of:
6-15 (1) a felony; or
6-16 (2) a misdemeanor that:
6-17 (A) is punishable by confinement or by a fine
6-18 that exceeds $500; and
6-19 (B) directly relates to a duty or responsibility
6-20 of an operator of a vehicle storage facility.
6-21 (c) If it appears that a person is in violation of or is
6-22 threatening to violate this article or a rule or order adopted
6-23 under this article, the department [commission] or the attorney
6-24 general at the department's [commission's] request may institute an
6-25 action for injunctive relief, to recover a civil penalty not to
6-26 exceed $1,000 for each violation, or for both injunctive relief and
6-27 the civil penalty. If the department [commission] or the attorney
7-1 general prevails in an action under this subsection, the department
7-2 [commission] or the attorney general is entitled to recover
7-3 reasonable attorney's fees and court costs.
7-4 SECTION 8. The Vehicle Storage Facility Act (Article
7-5 6687-9a, Revised Statutes), is amended by adding Section 10A to
7-6 read as follows:
7-7 Sec. 10A. ADMINISTRATIVE PENALTIES. (a) A person commits a
7-8 violation if the person operates a vehicle storage facility without
7-9 a current license issued by the department. In addition to
7-10 sanctions under Sections 10(c) and 17 of this article, the person
7-11 may be assessed an administrative penalty set by the department in
7-12 an amount not to exceed $10,000 for each violation. Each day a
7-13 violation continues or occurs is a separate violation for purposes
7-14 of imposing a penalty.
7-15 (b) In determining the amount of the penalty, the department
7-16 shall consider:
7-17 (1) the seriousness of the violation, including the
7-18 nature, circumstances, extent, and gravity of any prohibited acts,
7-19 and the hazard or potential hazard created to the health, safety,
7-20 or economic welfare of the public;
7-21 (2) the economic harm to property or the environment
7-22 caused by the violation;
7-23 (3) the history of previous violations;
7-24 (4) the amount necessary to deter future violations;
7-25 (5) efforts to correct the violation; and
7-26 (6) any other matter that justice may require.
7-27 (c) An administrative penalty may be assessed under this
8-1 section only after the person charged with a violation has been
8-2 given an opportunity for an administrative hearing.
8-3 (d) If the person charged requests a hearing or fails to
8-4 respond timely to notice, the department shall set a hearing and
8-5 give notice of the hearing to the person charged. The hearing
8-6 shall be held by an administrative law judge of the State Office of
8-7 Administrative Hearings. The administrative law judge shall make
8-8 findings of fact, conclusions of law, and issue to the director a
8-9 proposal for a decision as to the occurrence of the violation.
8-10 (e) Based on the findings of fact, conclusions of law, and
8-11 proposal for a decision, the director by order may find that a
8-12 violation has occurred and impose a penalty or may find that no
8-13 violation has occurred. The director may increase or decrease the
8-14 amount of the penalty recommended by the administrative law judge.
8-15 (f) If the person charged with a violation does not appear
8-16 for the hearing, the director may assess a penalty and issue an
8-17 order that the penalty be paid after the department has determined
8-18 that a violation occurred.
8-19 (g) A hearing under this section is an exhaustion of
8-20 administrative remedies, and an appeal from a hearing is to the
8-21 district court in Travis County.
8-22 (h) Within 30 days after the date of the director's order
8-23 becomes final as provided by Section 2001.144, Chapter 2001,
8-24 Government Code, the person charged with the penalty shall:
8-25 (1) pay the penalty in full;
8-26 (2) forward the amount to the department for placement
8-27 in an escrow account pending judicial review of the matter; or
9-1 (3) post with the department a supersedeas bond for
9-2 the amount of the penalty until judicial review is final.
9-3 (i) Failure to comply with Subsection (h) of this section is
9-4 a waiver of the right to contest the order.
9-5 (j) If a court determines that a violation has not occurred
9-6 or that the amount of the penalty should be reduced or not
9-7 assessed, the department shall remit the appropriate amount to the
9-8 person with interest or execute release of the bond.
9-9 (k) An administrative penalty owed under this section may be
9-10 recovered in a civil action brought by the attorney general at the
9-11 request of the department.
9-12 SECTION 9. Section 11, Vehicle Storage Facility Act (Article
9-13 6687-9a, Revised Statutes), is amended to read as follows:
9-14 Sec. 11. HEARING. (a) A person whose application for a
9-15 license to operate a storage facility has been denied, whose
9-16 license has been revoked, or whose application to renew a license
9-17 has been denied may, before the 15th day after the date the person
9-18 receives notice of the revocation or denial, request in writing an
9-19 administrative [a] hearing [before the commission] on the
9-20 revocation or denial.
9-21 (b) The provisions of the Administrative Procedure [and
9-22 Texas Register] Act (Government Code, Chapter 2001) [(Article
9-23 6252-13a, Vernon's Texas Civil Statutes)], relating to notice and
9-24 hearings on contested cases, apply to notice and hearings on
9-25 denial, revocation, and renewal of licenses under this article.
9-26 (c) A hearing under this section shall be held by an
9-27 administrative law judge of the State Office of Administrative
10-1 Hearings. The administrative law judge shall make findings of fact
10-2 and conclusions of law and promptly issue to the director a
10-3 proposal for a decision about revocation or denial. Based on the
10-4 findings of fact, conclusions of law, and proposal for a decision,
10-5 the director by order may revoke or deny a license.
10-6 (d) A hearing under this section is an exhaustion of
10-7 administrative remedies, and an appeal from a hearing is to the
10-8 district court in Travis County [having jurisdiction over the
10-9 applicant or licensee].
10-10 SECTION 10. Section 14, Vehicle Storage Facility Act
10-11 (Article 6687-9a, Revised Statutes), is amended by amending
10-12 Subsections (c), (d), (e), and (f) and adding Subsection (g) to
10-13 read as follows:
10-14 (c) The operator of a vehicle storage facility may not
10-15 charge [less than $5 or] more than $15 for each day or part of a
10-16 day for storage of a vehicle. A daily storage fee may be charged
10-17 for a day regardless of whether the vehicle is stored for 24 hours
10-18 of the day, except that a daily storage fee may not be charged for
10-19 more than one day if the vehicle remains at the vehicle storage
10-20 facility less than 12 hours. For the purposes of this subsection a
10-21 day is considered to begin and end at midnight.
10-22 (d) The operator of a vehicle storage facility may charge a
10-23 fee under Subsection (c) for each day:
10-24 (1) not to exceed five days, until the notice
10-25 described by Section 13 is mailed; and
10-26 (2) after notice is mailed, until the vehicle is
10-27 removed and all accrued charges are paid.
11-1 (e) The operator of a vehicle storage facility may not
11-2 charge any additional fees that are similar to notification,
11-3 preservation, or administrative fees.
11-4 (f) [(e)] This section controls over any conflicting
11-5 municipal ordinance or charter provision.
11-6 (g) [(f)] For the purposes of this section, "vehicle storage
11-7 facility" includes a garage, parking lot, or any type of facility
11-8 owned by a governmental entity for storing or parking 10 or more
11-9 vehicles.
11-10 SECTION 11. Section 15, Vehicle Storage Facility Act
11-11 (Article 6687-9a, Revised Statutes), is amended by to read as
11-12 follows:
11-13 Sec. 15. USE OF FEES. The department [commission] shall
11-14 remit all fees collected under this article to the State Treasurer
11-15 for deposit in the State Treasury to the credit of the general
11-16 revenue fund.
11-17 SECTION 12. Section 16, Vehicle Storage Facility Act
11-18 (Article 6687-9a, Revised Statutes), is repealed.
11-19 SECTION 13. The importance of this legislation and the
11-20 crowded condition of the calendars in both houses create an
11-21 emergency and an imperative public necessity that the
11-22 constitutional rule requiring bills to be read on three several
11-23 days in each house be suspended, and this rule is hereby suspended,
11-24 and that this Act take effect and be in force from and after its
11-25 passage, and it is so enacted.