HB 1054 78(R)    BILL ANALYSIS


HB 1054

By: Haggerty  
Business and Industry

Committee Report (Unamended)  



BACKGROUND AND PURPOSE 
Prior to the 78th 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 1054 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 committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
House Bill 1054 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. 1054 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
This Act takes effect September 1, 2003.