C.S.H.B. 1808 78(R)    BILL ANALYSIS


C.S.H.B. 1808
By: Hill
Transportation
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The federal deregulation of the trucking industry created a federal
preemption, at least in part, of local governments' authority to regulate
private property towing.  The courts are in the process of reviewing cases
and clarifying the federal law but one important issue has been resolved,
local governments do have the authority to regulate safety and rates for
nonconsensual towing including private property towing.  Nevertheless,
some towing companies have proceeded as if local governments have no
authority and are charging exorbitant and inconsistent rates.  While many
municipalities set nonconsensual tow rates by ordinance, counties do not
have ordinance making authority. Therefore, disreputable tow operators are
towing vehicles outside of city limits so that they are not subject to
regulation. Today, it is not unusual for a person to be charged up to $500
for passenger vehicle tow while the established rate in a nearby city is
less than $100.  And a large commercial vehicle may be charged in excess
of $2,000 for a tow from private property.  

C.S.H.B 1808 clarifies local governments' authority, municipal and county,
to regulate nonconsensual tow rates including private property towing.
The bill establishes what an excessive towing rate is for areas where
local government has not set towing rates.  It also requires that
nonconsent towing rates be filed with the Texas Department of
Transportation to be posted on the agencies website as well as requiring
that rates be posted at vehicle storage facilities.  C.S.H.B 1808 expands
penalties for excessive towing fees. 

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION-BY-SECTION ANALYSIS

Section 1.  Amends Section 643.053, Transportation Code to require an
annual registration fee of $25 rather than $10 for a tow truck. 

Section 2.  Amends Section 643.057, Transportation Code to require an
annual registration fee $25 rather than $10 for a tow truck and provides
that the department may not collect more than $25 for the registration of
a tow truck. 

Section 3.  Amends Section 643.058, Transportation Code to require a fee
of $25 rather than $10 for annual renewal of a tow truck registration.   

Section 4.  Amends Section 643.061, Transportation Code to require a fee
of  $50 rather than $20 for a two-year tow truck registration or renewal.

Section 5.  Amends Section 643.101, Transportation Code to require that
the owner of a tow truck performing nonconsent tows maintain at least
$50,000 of on-hook cargo insurance per truck. 

Section 6.  Adds new provisions to the Transportation Code providing
political subdivisions with clear authority to regulate nonconsent tow
rates.  Provides that if a political subdivision does not regulate the fee
for nonconsent private property towing then a towing company may not
charge a fee more than one and one-half times the fee charged for a
nonconsent tow requested by law enforcement.  Requires that a vehicle be
delivered to a licensed vehicle storage facility with fees  regulated by
the Vehicle Storage Facility (Chapter 2303, Occupations Code) and provides
that no additional fees may be charged without prior written consent of
the vehicle owner or operator. Requires that towing and storage fees be
posted at the storage facility and requires towing companies to submit
their rates to the department annually to be posted on the agencies
website. Requires that a political subdivision regulating nonconsent tow
rates establish procedures by which a towing company may request a rate
study. 

Section 7.  Amends Section 643.252, Transportation Code by providing that
a tow truck registration may be suspended or revoked for failure to
maintain insurance as required by Section 643.101(a). 

Section 8.  Amends Section 643.253, Transportation Code by amending the
heading. 

Section 9. Amends Section 643.253, Transportation Code to provide that
violations are a Class C misdemeanor punishable by fines of $200 to $1,000
per violation and authorizes law enforcement officers to issue tickets for
violations.   

Section 10.  Amends Section 658.009, Transportation Code to authorize a
court hearing on whether the amount charged exceeds the maximum allowed
rate and allows the court to require the towing company to pay the vehicle
owner any excessive charges. 

Section 11. Effective date.

EFFECTIVE DATE

September 1, 2003

COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 1808 makes changes in the drafting format by only including amended
sections of Transportation Code.  CSHB 1808 restructures Section 5 of the
bill by adding new sections to the Transportation Code rather than
amending Section 643.201 as in the filed bill.  In the substitute the
penalty provisions and provisions relating to court hearings are revised
to conform with the changes made in Section 5.  CSHB 1808 deletes the
language relating to the suspension or revocation of a registration by the
Texas Department of Transportation.