H.B. No. 849
AN ACT
relating to the regulation of tow trucks, to the authority of a
political subdivision of this state to regulate tow trucks, and to
insurance for commercial motor vehicles; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.151(d), Occupations Code, is
amended to read as follows:
(d) A notice under this section must:
(1) be correctly addressed;
(2) carry sufficient postage; and
(3) be sent by certified mail, return receipt
requested or electronic certified mail.
SECTION 2. Section 2303.155(b), Occupations Code, is
amended to read as follows:
(b) The operator of a vehicle storage facility or
governmental vehicle storage facility may charge the owner of a
vehicle stored or parked at the facility:
(1) a notification fee set in a reasonable amount not
to exceed $25 for providing notice under this subchapter;
(2) an impoundment fee of $20 [$10] for any action
that:
(A) is taken by or at the direction of the owner
or operator of the facility; and
(B) is necessary to preserve, protect, or service
a vehicle stored or parked at the facility; and
(3) a daily storage fee of not less than $5 and not
more than $15 for each day or part of a day the vehicle is stored at
the facility.
SECTION 3. Section 545.306(a), Transportation Code, is
amended to read as follows:
(a) The commissioners court of a county with a population of
3.3 million or more shall by ordinance provide for the licensing of
or the granting of a permit to a person to remove or store a vehicle
authorized by Section 545.305 to be removed in an unincorporated
area of the county. The ordinance must include rules to ensure the
protection of the public and the safe and efficient operation of
towing and storage services in the county and may not regulate or
restrict the use of lighting equipment more than the extent allowed
by state and federal law. The sheriff shall determine the rules
included in the ordinance with the review and consent of the
commissioners court.
SECTION 4. Section 643.053, Transportation Code, is amended
to read as follows:
Sec. 643.053. FILING OF APPLICATION. An application under
Section 643.052 must be filed with the department and accompanied
by:
(1) an application fee of $100 plus a $10 fee for each
vehicle requiring registration other than a tow truck or a $25 fee
for each tow truck the motor carrier proposes to operate;
(2) evidence of insurance or financial responsibility
as required by Section 643.103(a); and
(3) any insurance filing fee required under Section
643.103(c).
SECTION 5. Sections 643.057(a), (b), and (d),
Transportation Code, are amended to read as follows:
(a) A motor carrier may not operate an additional vehicle
requiring registration unless the carrier pays a registration fee
of $10 for each additional vehicle other than a tow truck or $25 for
each tow truck and shows the department evidence of insurance or
financial responsibility for the vehicle in an amount at least
equal to the amount set by the department under Section 643.101.
(b) A motor carrier is not required to pay the applicable
[$10] registration fee under Subsection (a) for a vehicle for which
the same fee is required and that replaces a vehicle for which the
fee has been paid.
(d) The department may not collect more than $10 in
equipment registration fees for a vehicle other than a tow truck
registered under both this subchapter and Chapter 645 or more than
$25 if the vehicle is a tow truck.
SECTION 6. Section 643.058(c), Transportation Code, is
amended to read as follows:
(c) A motor carrier may renew a registration under this
subchapter by:
(1) supplementing the application with any new
information required under Section 643.056;
(2) paying a $10 fee for each vehicle requiring
registration other than a tow truck or a fee of $25 for each tow
truck the carrier operates; and
(3) providing the department evidence of continuing
insurance or financial responsibility in an amount at least equal
to the amount set by the department under Section 643.101.
SECTION 7. Section 643.061(b), Transportation Code, is
amended to read as follows:
(b) A motor carrier applying for registration under this
section must pay:
(1) a $20 fee for each vehicle registered other than a
tow truck or a fee of $50 for each tow truck under Subsection
(a)(1);
(2) a $10 fee for each vehicle registered other than a
tow truck or a fee of $25 for each tow truck under Subsection
(a)(2); and
(3) application and insurance filing fees the
department by rule adopts in an amount not to exceed $100 each.
SECTION 8. Section 643.101, Transportation Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) The owner of a tow truck that is used to perform
nonconsent tows, as defined by Section 643.201, shall maintain
on-hook cargo insurance in the amount of at least $50,000 per truck.
(e) Unless state law permits a commercial motor vehicle to
be self-insured, any insurance required for a commercial motor
vehicle must be obtained from:
(1) an insurer authorized to do business in this state
whose aggregate net risk, after reinsurance, under any one
insurance policy is not in excess of 10 percent of the insurer's
policyholders' surplus, and credit for such reinsurance is
permitted by law; or
(2) an insurer that meets the eligibility requirements
of a surplus lines insurer pursuant to Article 1.14-2, Insurance
Code. Notwithstanding any other provision in law, an insurer in
compliance with this subsection shall be deemed to be in compliance
with any rating or financial criteria established for motor
carriers by any political subdivision of the state.
SECTION 9. Section 643.201(a), Transportation Code, is
amended to read as follows:
(a) In addition to the registration requirements of
Subchapter B, a political subdivision of this state may regulate
the operation of a tow truck to the extent allowed by federal law,
except that a political subdivision may not issue a more
restrictive regulation for the use of lighting equipment on a tow
truck than is imposed by this title.
SECTION 10. Subchapter E, Chapter 643, Transportation Code,
is amended by adding Sections 643.203-643.208 to read as follows:
Sec. 643.203. REGULATION BY POLITICAL SUBDIVISIONS OF FEES
FOR NONCONSENT TOWS. The governing body of a political subdivision
may regulate the fees that may be charged or collected in connection
with a nonconsent tow originating in the territory of the political
subdivision.
Sec. 643.204. TOWING FEE STUDIES. (a) The governing body
of a political subdivision that regulates nonconsent tow fees shall
establish procedures by which a towing company may request that a
towing fee study be performed.
(b) The governing body of the political subdivision shall
establish or amend the allowable fees for nonconsent tows at
amounts that represent the fair value of the services of a towing
company and are reasonably related to any financial or accounting
information provided to the governing body.
Sec. 643.205. FEES FOR NONCONSENT TOWS IN OTHER AREAS. (a)
In an area in which no political subdivision regulates the fees that
may be charged or collected for a nonconsent tow from private
property, a towing company may charge and collect a fee for the tow
of a motor vehicle from private property in an amount not to exceed
an amount equal to 150 percent of the fee that the towing company
would have been authorized to charge for a nonconsent tow made at
the request of a peace officer of the political subdivision in which
the private property is located.
(b) A towing company may charge and collect a fee for the tow
of a vehicle, with a gross vehicle weight rating in excess of 26,000
pounds, from private property in an amount not to exceed an amount
equal to 125 percent of the fee that the towing company would have
been authorized to charge for a nonconsent tow made at the request
of a peace officer of the political subdivision in which the private
property is located.
Sec. 643.206. STORAGE OF TOWED VEHICLES. (a) A towing
company that makes a nonconsent tow shall tow the vehicle to a
vehicle storage facility that is operated by a person who holds a
license to operate the facility under Chapter 2303, Occupations
Code.
(b) A storage or notification fee imposed in connection with
a motor vehicle towed to a vehicle storage facility is governed by
Chapter 2303, Occupations Code.
(c) Except as provided by this chapter or Chapter 2303,
Occupations Code, a fee may not be charged or collected without the
prior written consent of the vehicle owner or operator.
Sec. 643.207. REQUIRED FILING. (a) Before January 31 of
each year, a towing company shall file with the department a
schedule showing each towing fee that the towing company charges or
collects in connection with a nonconsent tow.
(b) If a political subdivision begins regulating nonconsent
tow fees, the fees shall be reported to the department by the towing
company before the 30th day after the regulation goes into effect.
(c) Any changes in nonconsent tow fees regulated by a
political subdivision shall be reported to the department by the
towing company before the 30th day after the effective date of the
change.
(d) The department shall make towing fee schedules
available on the department's Internet website. The department
shall make no determination as to the reasonableness of a towing fee
schedule.
Sec. 643.208. REQUIRED POSTING. All towing and storage
fees shall be posted at the licensed vehicle storage facility to
which the motor vehicle has been delivered and shall be posted in
view of the person who claims the vehicle.
SECTION 11. Section 643.252(a), Transportation Code, is
amended to read as follows:
(a) The department may suspend or revoke a registration
issued under this chapter or place on probation a motor carrier
whose registration is suspended if a motor carrier:
(1) fails to maintain insurance or evidence of
financial responsibility as required by Section 643.101(a), (b),
[or] (c), or (d) or 643.153(b);
(2) fails to keep evidence of insurance in the cab of
each vehicle as required by Section 643.103(b);
(3) fails to register a vehicle requiring
registration;
(4) knowingly provides false information on any form
filed with the department under this chapter; or
(5) violates a rule adopted under Section 643.063.
SECTION 12. The heading to Section 643.253, Transportation
Code, is amended to read as follows:
Sec. 643.253. OFFENSES AND PENALTIES [CRIMINAL PENALTY].
SECTION 13. Section 643.253, Transportation Code, is
amended by amending Subsection (c) and adding Subsections (d)-(f)
to read as follows:
(c) Except as provided by Subsection (e), an [An] offense
under this section is a Class C misdemeanor.
(d) A person commits an offense if the person:
(1) violates an ordinance, resolution, order, rule, or
regulation of a political subdivision adopted under Section 643.201
or 643.203, for which the political subdivision does not prescribe
the penalty;
(2) charges or collects a fee in a political
subdivision that regulates the operation of tow trucks under
Section 643.201 or 643.203 that is not authorized or is greater than
the authorized amount of the fee;
(3) charges or collects a fee greater than the amount
authorized under Section 643.205;
(4) charges or collects a fee in excess of the amount
filed with the department under Section 643.207;
(5) violates Section 643.206; or
(6) violates a rule of the department applicable to a
tow truck and towing company.
(e) An offense under Subsection (d) is a misdemeanor
punishable by a fine of not less than $200 or more than $1,000 per
violation.
(f) A peace officer may issue a citation for a violation
under this section.
SECTION 14. Section 683.001, Transportation Code, is
amended by adding Subdivisions (9) and (10) to read as follows:
(9) "Abandoned nuisance vehicle" means a motor vehicle
that is at least 10 years old and is of a condition only to be
junked, crushed, or dismantled.
(10) "Vehicle storage facility" means a vehicle
storage facility, as defined by Section 2303.002, Occupations Code,
that is operated by a person who holds a license issued under
Chapter 2303 of that code to operate that vehicle storage facility.
SECTION 15. Section 683.012, Transportation Code, is
amended by adding Subsection (e) to read as follows:
(e) A law enforcement agency is not required to send a
notice, as otherwise required by Subsection (a), if the agency has
received notice from a vehicle storage facility that an application
has or will be submitted to the department for the disposal of the
vehicle.
SECTION 16. Section 683.034(e), Transportation Code, is
amended to read as follows:
(e) If the law enforcement agency does not take the vehicle
into custody before the 31st day after the date notice is sent under
Section 683.012:
(1) the law enforcement agency may not take the
vehicle into custody; and
(2) the storage facility may dispose of the vehicle
under:
(A) Chapter 70, Property Code, except that notice
under Section 683.012 satisfies the notice requirements of that
chapter; or
(B) Chapter 2303, Occupations Code, if:
(i) the storage facility is a vehicle
storage facility; and
(ii) the vehicle is an abandoned nuisance
vehicle.
SECTION 17. Sections 685.009(c) and (e), Transportation
Code, are amended to read as follows:
(c) The issues [sole issue] in a hearing under this chapter
are:
(1) [is] whether probable cause existed for the
removal and placement of the vehicle;
(2) whether a towing charge imposed or collected in
connection with the removal or placement of the vehicle was greater
than the amount authorized by the political subdivision under
Section 643.201 or 643.203;
(3) whether a towing charge imposed or collected in
connection with the removal or placement of the vehicle was greater
than the amount authorized under Section 643.204 or 643.205; or
(4) whether a towing charge imposed or collected in
connection with the removal or placement of the vehicle was greater
than the amount filed with the department under Section 643.207.
(e) The court may award:
(1) court costs to the prevailing party; [and]
(2) the reasonable cost of photographs submitted under
Section 685.007(b)(8) to a vehicle owner or operator who is the
prevailing party; and
(3) an amount equal to the amount that the towing
charge exceeded fees regulated by a political subdivision or
authorized by this code or by Chapter 2303, Occupations Code.
SECTION 18. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to an
offense committed on or after September 1, 2003.
(c) An offense committed before September 1, 2003, is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before September 1, 2003, if
any element of the offense was committed before that date.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 849 was passed by the House on April
9, 2003, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 849 on May 30, 2003, by a non-record
vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 849 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor