78(R) SB279 - 2nd reading F4 (S)

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Amend CSSB 279 as follows:                                                   
	(1)  On page 73, delete lines 20-32, and substitute the 
following therefor:  
	SECTION 28.089.  Subsection (a), Section 7, Article 9035, 
Revised Statutes, is amended to read as follows:
	(a)  To ensure the adequate performance of a warrantor's 
obligations to a consumer, each warrantor shall comply with 
financial security requirements by:
		(1)  insuring its vehicle protection products under a 
reimbursement insurance policy issued by an insurer authorized to 
engage in the business of insurance in this state or under a surplus 
lines insurance policy issued by an insurer eligible to place 
coverage in this state as regulated under Chapter 981 [Article 
1.14-2], Insurance Code; or
		(2)  providing any other form of comparable financial 
security approved by the executive director [commissioner].
	(b)  The department may not require any other financial 
security requirements or financial standards for warrantors.
	(c)  Vehicle protection services must abide by the financial 
responsibility requirements provided by Chapter 686, 
Transportation Code.  The department may coordinate with the Texas 
Department of Insurance to assure consistency with the standard 
proof of motor vehicle liability insurance form prescribed by 
601.081, Transportation Code.
	(2)  On page 74, line 30, insert new Articles 30 and 31 to 
read as follows:  
	ARTICLE 30.  SECTION 30.01.  Section 2, Article 9035, Revised 
Statutes, is amended by adding a new Subsection 10 to read as 
follows:
		(10)  "Vehicle protection service" means a valet 
parking service as defined by Section 686.001(3), Transportation 
Code.
	ARTICLE 31.  VALET PARKING SERVICES

FINANCIAL RESPONSIBILITY
	SECTION 31.01.  Subtitle H, Title 7, Transportation Code, is 
amended by adding Chapter 686 to read as follows:

CHAPTER 686.  VALET PARKING SERVICES
	Sec. 686.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Financial responsibility" means the ability to 
respond in damages for liability for an accident that:
			(A)  occurs after the effective date of the 
document evidencing the establishment of the financial 
responsibility; and
			(B)  arises out of the operation of a motor 
vehicle by an employee of a valet parking service.
		(2)  "Public accommodation" means any:                                 
			(A)  inn, hotel, or motel;                                            
			(B)  restaurant, cafeteria, or other facility 
principally engaged in selling food for consumption on the 
premises;
			(C)  bar, nightclub, or other facility engaged in 
selling alcoholic beverages for consumption on the premises;
			(D)  motion picture house, theater, concert hall, 
stadium, or other place of exhibition or entertainment; or
			(E)  other facility used by or open to members of 
the public.       
		(3)  "Valet parking service" means a parking service 
through which the motor vehicles of patrons of a public 
accommodation are parked for a fee by a third party who is not an 
employee of the public accommodation.
	Sec. 686.002.  REQUIREMENT OF FINANCIAL RESPONSIBILITY FOR 
VALET PARKING SERVICES.  A person may not operate a valet parking 
service unless financial responsibility for each employee who 
operates a motor vehicle for the service is established through:
		(1)  a motor vehicle liability or comprehensive general 
liability and garage insurance policy in an amount established by 
Section 686.004;
		(2)  a surety bond filed under Section 601.121; or                     
		(3)  a deposit in the amount of $450,000 under Section 
601.122, notwithstanding any other amount prescribed by that 
section.
	Sec. 686.003.  EVIDENCE OF FINANCIAL RESPONSIBILITY.  (a)  
The owner or operator of a valet parking service shall provide 
evidence of financial responsibility in the same manner as required 
under Section 601.053.
	(b)  In addition to complying with Subsection (a), an owner 
or operator of a valet parking service shall exhibit, for public 
inspection, evidence of financial responsibility at a public 
accommodation whose patrons use the service.
	Sec. 686.004.  MINIMUM COVERAGE AMOUNTS.  (a)  The minimum 
amounts of motor vehicle liability insurance coverage required to 
establish financial responsibility under this chapter are:
		(1)  $100,000 for bodily injury to or death of one 
person in one accident;
		(2)  $300,000 for bodily injury to or death of two or 
more persons in one accident, subject to the amount provided by 
Subdivision (1) for bodily injury to or death of one of the persons; 
and
		(3)  $50,000 for damage to or destruction of property 
of others in one accident.
	(b)  The comprehensive general liability insurance must be 
on a broad form and provide limits of liability for bodily injury 
and property damage of not less than $300,000 combined single 
limit, or the equivalent.
	(c)  The garage insurance must provide limits of liability 
for bodily injury and property damage of not less than $300,000 
combined single limit, or the equivalent, and must provide the 
following coverages:
		(1)  comprehensive and collision coverage for physical 
damage;       
		(2)  coverage for vehicle storage; and                                 
		(3)  coverage for a vehicle driven by or at the 
direction of the valet parking service.
	Sec. 686.005.  COMMON LAW DEFENSES.  In an action against an 
owner or operator of a valet parking service that has not 
established financial responsibility as required by this chapter to 
recover damages for personal injuries, death, or property damage 
sustained in a motor vehicle accident arising out of the operation 
of a valet parking service, it is not a defense that the party who 
brings the action:
		(1)  was guilty of contributory negligence; or                         
		(2)  assumed the risk of injury, death, or property 
damage.          
	Sec. 686.006.  OPERATION OF MOTOR VEHICLE IN VIOLATION OF 
FINANCIAL RESPONSIBILITY REQUIREMENT; OFFENSE.  (a)  A person 
commits an offense if the person, while in the course and scope of 
the person's employment with a valet parking service, operates a 
motor vehicle of a patron of the service without the financial 
responsibility required by this chapter.
	(b)  Except as provided by Subsections (c) and (d), an 
offense under this section is a misdemeanor punishable by a fine of 
not less than $175 or more than $350.
	(c)  If a person has been previously convicted of an offense 
under this section, an offense under this section is a misdemeanor 
punishable by a fine of not less than $350 or more than $1,000.
	(d)  If the court determines that a person who has not been 
previously convicted of an offense under this section is 
economically unable to pay the fine, the court may reduce the fine 
to not less than $175.
	Sec. 686.007.  DEFENSE:  FINANCIAL RESPONSIBILITY IN EFFECT 
AT TIME OF ALLEGED OFFENSE.  It is a defense to prosecution under 
Section 686.002 that the person charged produces one of the 
documents listed in Section 601.053 that was valid at the time the 
offense is alleged to have occurred.