1-1 AN ACT 1-2 relating to requiring a valet parking service to maintain financial 1-3 responsibility; creating an offense. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle H, Title 7, Transportation Code, is 1-6 amended by adding Chapter 686 to read as follows: 1-7 CHAPTER 686. VALET PARKING SERVICES 1-8 Sec. 686.001. DEFINITIONS. In this chapter: 1-9 (1) "Financial responsibility" means the ability to 1-10 respond in damages for liability for an accident that: 1-11 (A) occurs after the effective date of the 1-12 document evidencing the establishment of the financial 1-13 responsibility; and 1-14 (B) arises out of the operation of a motor 1-15 vehicle by an employee of a valet parking service. 1-16 (2) "Public accommodation" means any: 1-17 (A) inn, hotel, or motel; 1-18 (B) restaurant, cafeteria, or other facility 1-19 principally engaged in selling food for consumption on the 1-20 premises; 1-21 (C) bar, nightclub, or other facility engaged in 1-22 selling alcoholic beverages for consumption on the premises; 1-23 (D) motion picture house, theater, concert hall, 1-24 stadium, or other place of exhibition or entertainment; or 2-1 (E) other facility used by or open to members of 2-2 the public. 2-3 (3) "Valet parking service" means a parking service 2-4 through which the motor vehicles of patrons of a public 2-5 accommodation are parked for a fee by a third party who is not an 2-6 employee of the public accommodation. 2-7 Sec. 686.002. REQUIREMENT OF FINANCIAL RESPONSIBILITY FOR 2-8 VALET PARKING SERVICES. A person may not operate a valet parking 2-9 service unless financial responsibility for each employee who 2-10 operates a motor vehicle for the service is established through: 2-11 (1) a motor vehicle liability or comprehensive general 2-12 liability and garage insurance policy in an amount established by 2-13 Section 686.004; 2-14 (2) a surety bond filed under Section 601.121; or 2-15 (3) a deposit in the amount of $450,000 under Section 2-16 601.122, notwithstanding any other amount prescribed by that 2-17 section. 2-18 Sec. 686.003. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) The 2-19 owner or operator of a valet parking service shall provide evidence 2-20 of financial responsibility in the same manner as required under 2-21 Section 601.053. 2-22 (b) In addition to complying with Subsection (a), an owner 2-23 or operator of a valet parking service shall exhibit, for public 2-24 inspection, evidence of financial responsibility at a public 2-25 accommodation whose patrons use the service. 2-26 Sec. 686.004. MINIMUM COVERAGE AMOUNTS. (a) The minimum 2-27 amounts of motor vehicle liability insurance coverage required to 3-1 establish financial responsibility under this chapter are: 3-2 (1) $100,000 for bodily injury to or death of one 3-3 person in one accident; 3-4 (2) $300,000 for bodily injury to or death of two or 3-5 more persons in one accident, subject to the amount provided by 3-6 Subdivision (1) for bodily injury to or death of one of the 3-7 persons; and 3-8 (3) $50,000 for damage to or destruction of property 3-9 of others in one accident. 3-10 (b) The comprehensive general liability insurance must be on 3-11 a broad form and provide limits of liability for bodily injury and 3-12 property damage of not less than $300,000 combined single limit, or 3-13 the equivalent. 3-14 (c) The garage insurance must provide limits of liability 3-15 for bodily injury and property damage of not less than $300,000 3-16 combined single limit, or the equivalent, and must provide the 3-17 following coverages: 3-18 (1) comprehensive and collision coverage for physical 3-19 damage; 3-20 (2) coverage for vehicle storage; and 3-21 (3) coverage for a vehicle driven by or at the 3-22 direction of the valet parking service. 3-23 Sec. 686.005. COMMON LAW DEFENSES. In an action against an 3-24 owner or operator of a valet parking service that has not 3-25 established financial responsibility as required by this chapter to 3-26 recover damages for personal injuries, death, or property damage 3-27 sustained in a motor vehicle accident arising out of the operation 4-1 of a valet parking service, it is not a defense that the party who 4-2 brings the action: 4-3 (1) was guilty of contributory negligence; or 4-4 (2) assumed the risk of injury, death, or property 4-5 damage. 4-6 Sec. 686.006. OPERATION OF MOTOR VEHICLE IN VIOLATION OF 4-7 FINANCIAL RESPONSIBILITY REQUIREMENT; OFFENSE. (a) A person 4-8 commits an offense if the person, while in the course and scope of 4-9 the person's employment with a valet parking service, operates a 4-10 motor vehicle of a patron of the service without the financial 4-11 responsibility required by this chapter. 4-12 (b) Except as provided by Subsections (c) and (d), an 4-13 offense under this section is a misdemeanor punishable by a fine of 4-14 not less than $175 or more than $350. 4-15 (c) If a person has been previously convicted of an offense 4-16 under this section, an offense under this section is a misdemeanor 4-17 punishable by a fine of not less than $350 or more than $1,000. 4-18 (d) If the court determines that a person who has not been 4-19 previously convicted of an offense under this section is 4-20 economically unable to pay the fine, the court may reduce the fine 4-21 to not less than $175. 4-22 Sec. 686.007. DEFENSE: FINANCIAL RESPONSIBILITY IN EFFECT 4-23 AT TIME OF ALLEGED OFFENSE. It is a defense to prosecution under 4-24 Section 686.002 that the person charged produces one of the 4-25 documents listed in Section 601.053 that was valid at the time the 4-26 offense is alleged to have occurred. 4-27 SECTION 2. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 2495 was passed by the House on April 18, 2001, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 2495 was passed by the Senate on May 17, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor