HBA-JEK H.B. 2495 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2495
By: Haggerty
Business & Industry
7/11/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, a valet parking service was not required to
have liability insurance.  A person who sustained injury or whose property
was damaged by an employee of a valet service that did not have liability
insurance had to pay for the damages out of pocket or have their insurance
cover the costs, which may have led to higher insurance premiums.  House
Bill 2495 requires a valet parking service to assume financial
responsibility for each employee who operates a motor vehicle for the
service. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2495 amends the Transportation Code to prohibit a person from
operating a valet parking service unless financial responsibility for each
employee who operates a motor vehicle for the service is established
through a surety bond, a deposit with the comptroller in the amount of
$450,000, or a motor vehicle liability insurance policy that meets
specified minimum coverage amounts.  The bill provides that the
comprehensive general liability insurance must be not less than $300,000,
and that the garage insurance must provide liability limits of not less
than $300,000 and must cover comprehensive and collision coverage for
physical damage, coverage for vehicle storage, and coverage for a vehicle
driven by or at the direction of the valet parking service. 

The bill establishes offenses and fines to punish a person who violates
these requirements, and provides that it is not a defense in an action to
recover damages against an owner or operator of a valet parking service
that has not established financial responsibility that the party who brings
the action was guilty of contributory negligence, or assumed the risk of
injury, death, or property damage. 

H.B. 2495 requires the owner or operator of a valet parking service to
provide evidence of financial responsibility on request by a peace officer
and to display for public inspection evidence of financial responsibility
at a public accommodation whose patrons use the service. 

EFFECTIVE DATE

Vetoed.