81R21567 YDB-F
 
  By: Gonzales, Smith of Tarrant, Martinez H.B. No. 2571
 
  Substitute the following for H.B. No. 2571:
 
  By:  Pickett C.S.H.B. No. 2571
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the licensing and regulation of towing companies and
  vehicle storage facilities; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2308.002, Occupations Code, is amended
  by amending Subdivisions (3), (6), and (8) and adding Subdivisions
  (5-a) and (8-a) to read as follows:
               (3)  "Consent tow" means any tow of a motor vehicle in
  which the tow truck is summoned [initiated] by the owner or operator
  of the vehicle or by a person who has possession, custody, or
  control of the vehicle. The term does not include an incident
  management tow or a private property [a] tow [of a motor vehicle
  initiated by a peace officer investigating a traffic accident or a
  traffic incident that involves the vehicle].
               (5-a)  "Incident management tow" means any tow of a
  vehicle in which the tow truck is summoned to a traffic accident or
  incident.
               (6)  "Nonconsent tow" means any tow of a motor vehicle
  that is not a consent tow, including:
                     (A)  an incident management tow; and
                     (B)  a private property tow.
               (8)  "Parking facility owner" means:
                     (A)  an individual, corporation, partnership,
  limited partnership, limited liability company, association,
  trust, or other legal entity owning or operating [owner or operator
  of] a parking facility[, including a lessee, employee, or agent of
  an owner or operator];
                     (B)  a property owners' association having
  control under a dedicatory instrument, as that term is defined in
  Section 202.001, Property Code, over assigned or unassigned parking
  areas; or
                     (C)  a property owner having an exclusive right
  under a dedicatory instrument, as that term is defined in Section
  202.001, Property Code, to use a parking space.
               (8-a)  "Private property tow" means any tow of a
  vehicle authorized by a parking facility owner.
         SECTION 2.  Section 2308.057(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission shall adopt rules for permitting tow
  trucks and licensing towing operators and towing companies,
  including rules for denial of an application or permit if the
  applicant, a partner, principal, officer, or general manager of the
  applicant, or a license or permit holder has:
               (1)  a criminal conviction or has pled guilty or nolo
  contendere before the date of the application for:
                     (A)  a felony; or
                     (B)  a misdemeanor punishable by confinement in
  jail or by a fine exceeding $500;
               (2)  violated an order of the commission or executive
  director, including an order for sanctions or administrative
  penalties;
               (3)  failed to submit a license or permit bond in an
  amount established by the commission;
               (4)  knowingly submitted false or incomplete
  information on a license or permit application; and
               (5)  filed an application to permit a tow truck that is
  already permitted by another license or permit holder.
         SECTION 3.  Subchapter B, Chapter 2308, Occupations Code, is
  amended by adding Section 2308.0575 to read as follows:
         Sec. 2308.0575.  RULES ON FEES; STUDY; CONFIDENTIAL
  INFORMATION.  (a)  To protect the public health and safety, the
  commission by rule shall establish:
               (1)  the fees that may be charged in connection with a
  private property tow;
               (2)  the maximum amount that may be charged for fees,
  other than tow fees, that may be assessed by a towing company in
  connection with a private property tow; and
               (3)  a maximum amount that may be charged for the
  following private property tows:
                     (A)  standard light-duty tows of motor vehicles
  with a gross weight rating of 10,000 pounds or less;
                     (B)  medium-duty tows of motor vehicles with a
  gross weight rating of more than 10,000 pounds, but less than 25,000
  pounds; and
                     (C)  heavy-duty tows of motor vehicles with a
  gross weight rating that exceeds 25,000 pounds.
         (b)  In adopting rules under Subsection (a), the commission
  shall:
               (1)  consider private property towing fee studies
  conducted by municipalities in this state; and
               (2)  conduct studies of private property towing fees
  that analyze cost of service by company, the consumer price index,
  geographic area, and individual cost components.
         (c)  The commission may structure the maximum amounts that
  may be charged for private property tows based on hourly or flat
  fees or by geographic location.
         (d)  The commission shall maintain the confidentiality of
  information contained in a study conducted under this section that
  is claimed to be confidential for competitive purposes and may not
  release information that identifies a person or company. The
  confidential information is exempt from disclosure under Chapter
  552, Government Code.
         (e)  To protect the confidentiality of the information, the
  commission shall aggregate the information to the maximum extent
  possible considering the purpose of the study.
         SECTION 4.  Section 2308.060, Occupations Code, is amended
  to read as follows:
         Sec. 2308.060.  POWERS AND DUTIES OF ADVISORY BOARD. The
  advisory board shall provide advice and recommendations to the
  department on technical matters relevant to the administration and
  enforcement of this chapter, including examination content,
  licensing standards, [and] continuing education requirements, and
  maximum amounts that may be charged for fees related to private
  property tows.
         SECTION 5.  Section 2308.202, Occupations Code, is amended
  to read as follows:
         Sec. 2308.202.  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 if the private property tow fees:
               (1)  are authorized by commission rule; and
               (2)  do not exceed the maximum amount authorized by
  commission rule.
         SECTION 6.  Section 2308.204, Occupations Code, is amended
  to read as follows:
         Sec. 2308.204.  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 in connection with [for] a
  nonconsent private property tow [from private property], a towing
  company may charge and collect fees [a fee] for the tow of a motor
  vehicle from private property in an amount not to exceed the maximum
  amount authorized by:
               (1)  the commissioners court in the county in which the
  vehicle storage facility is located; or
               (2)  if the commissioners court does not set the
  maximum amount, the average of the maximum amounts authorized by
  the three political subdivisions that regulate nonconsent incident
  management tow fees and that are closest to the facility [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.]
         SECTION 7.  Section 2308.206, Occupations Code, is amended
  by adding Subsections (f) and (g) to read as follows:
         (f)  A license or permit holder may not charge a fee related
  to a nonconsent tow that is not listed in the schedule most recently
  submitted to the department under this section.
         (g)  The department may require a license or permit holder
  that has violated Subsection (e) or (f) to reimburse the vehicle
  owner or operator for the charges.
         SECTION 8.  The heading to Section 2308.208, Occupations
  Code, is amended to read as follows:
         Sec. 2308.208.  MUNICIPAL ORDINANCE REGULATING UNAUTHORIZED
  VEHICLES AND TOWING OF MOTOR VEHICLES.
         SECTION 9.  Section 2308.252(a), Occupations Code, is
  amended to read as follows:
         (a)  A parking facility owner may, without the consent of the
  owner or operator of an unauthorized vehicle, cause the vehicle and
  any property on or in the vehicle to be removed and stored at a
  vehicle storage facility at the vehicle owner's or operator's
  expense if:
               (1)  signs that comply with Subchapter G prohibiting
  unauthorized vehicles are located on the parking facility at the
  time of towing and for the preceding 24 hours and remain installed
  at the time of towing;
               (2)  the owner or operator of the vehicle has received
  actual notice from the parking facility owner that the vehicle will
  be towed at the vehicle owner's or operator's expense if it is in or
  not removed from an unauthorized space;
               (3)  the parking facility owner gives notice to the
  owner or operator of the vehicle under Subsection (b); or
               (4)  the parking facility owner has provided to the
  owner or operator of the vehicle written notice of the name of the
  towing company and vehicle storage facility that will be used to
  remove and store the vehicle and the vehicle is:
                     (A)  left in violation of Section 2308.251 or
  2308.253; or
                     (B)  in or obstructing a portion of a paved
  driveway or abutting public roadway used for entering or exiting
  the facility.
         SECTION 10.  Section 2308.255(a), Occupations Code, is
  amended to read as follows:
         (a)  A towing company that is insured as provided by
  Subsection (c) may, without the consent of an owner or operator of
  an unauthorized vehicle, remove and store the vehicle at a vehicle
  storage facility at the expense of the owner or operator of the
  vehicle if:
               (1)  the towing company has received written
  verification from the parking facility owner that:
                     (A)  the parking facility owner has installed the
  signs required by Section 2308.252(a)(1); or
                     (B)  the owner or operator received notice under
  Section 2308.252(a)(2) or the parking facility owner gave notice
  complying with Section 2308.252(a)(3); or
               (2)  the parking facility owner has provided to the
  owner or operator of the vehicle written notice of the name of the
  towing company and vehicle storage facility that will be used to
  remove and store the vehicle and the vehicle is:
                     (A)  left in violation of Section 2308.251; or
                     (B)  in or obstructing a portion of a paved
  driveway or abutting public roadway used for entering or exiting
  the facility and the removal is approved by a peace officer.
         SECTION 11.  Section 2308.404(c), Occupations Code, is
  amended to read as follows:
         (c)  A towing company or parking facility owner who
  intentionally, knowingly, or recklessly violates this chapter is
  liable to the owner or operator of the vehicle that is the subject
  of the violation for $1,000 [$300] plus three times the amount of
  fees assessed in the vehicle's removal, towing, or storage.
         SECTION 12.  Section 2308.405, Occupations Code, is amended
  to read as follows:
         Sec. 2308.405.  CRIMINAL PENALTY [VIOLATION OF CHAPTER;
  FINE].  A person commits an offense if the person violates
  [violation of] this chapter. An offense under this section is a
  Class B misdemeanor [punishable by a fine of not less than $500 or
  more than $1,500].
         SECTION 13.  Section 2308.451(b), Occupations Code, is
  amended to read as follows:
         (b)  If in a hearing held under this chapter the court does
  not find that a person or law enforcement agency authorized, with
  probable cause, the removal and storage in a vehicle storage
  facility of a vehicle, the towing company, vehicle storage
  facility, [person] or law enforcement agency that authorized the
  removal shall:
               (1)  pay the costs of the removal and storage; or
               (2)  reimburse the owner or operator for the cost of the
  removal and storage paid by the owner or operator.
         SECTION 14.  Section 2308.453, Occupations Code, is amended
  to read as follows:
         Sec. 2308.453.  JURISDICTION. A hearing under this chapter
  shall be in the justice court having jurisdiction in the precinct
  from [in] which the motor vehicle was towed [storage facility is
  located].
         SECTION 15.  Section 2308.454, Occupations Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  If the towing company or vehicle storage facility that
  received the payment fails to furnish to the owner or operator of
  the vehicle the name, address, and telephone number of the parking
  facility owner or law enforcement agency that authorized the
  removal of the vehicle, the towing company or vehicle storage
  facility that received the payment is liable if the court, after a
  hearing, does not find probable cause for the removal and storage of
  the vehicle.
         SECTION 16.  Section 2308.455, Occupations Code, is amended
  to read as follows:
         Sec. 2308.455.  CONTENTS OF NOTICE.  The notice under
  Section 2308.454 must include:
               (1)  a statement of:
                     (A)  the person's right to submit a request within
  14 days for a court hearing to determine whether probable cause
  existed to remove the vehicle;
                     (B)  the information that a request for a hearing
  must contain; and
                     (C)  any filing fee for the hearing;
               (2)  the name, address, and telephone number of the
  towing company that removed the vehicle;
               (3)  the name, address, and telephone number of the
  vehicle storage facility in which the vehicle was placed;
               (4)  the registered name, street address including
  city, state, and zip code, and telephone number of the person,
  parking facility [property] owner, or law enforcement agency that
  authorized the removal of the vehicle; and
               (5)  the name, address, and telephone number of the
  justice court having jurisdiction in the precinct in which the
  parking [vehicle storage] facility is located.
         SECTION 17.  Section 2308.456, Occupations Code, is amended
  by amending Subsection (a) and adding Subsection (c-1) to read as
  follows:
         (a)  Except as provided by Subsections [Subsection] (c) and
  (c-1), a person entitled to a hearing under this chapter must
  deliver a written request for the hearing to the court before the
  14th day after the date the vehicle was removed and placed in the
  vehicle storage facility, excluding Saturdays, Sundays, and legal
  holidays.
         (c-1)  The 14-day period for requesting a hearing under
  Subsection (a) does not begin until the date on which the towing
  company or vehicle storage facility provides to the vehicle owner
  or operator the information necessary for the vehicle owner or
  operator to complete the material for the request for hearing
  required under Subsections (b)(2) through (6).
         SECTION 18.  Section 2308.458(b), Occupations Code, is
  amended to read as follows:
         (b)  The court shall notify the person who requested the
  hearing, the parking facility owner [person] or law enforcement
  agency that authorized the removal of the vehicle, and the vehicle
  storage facility in which the vehicle was placed of the date, time,
  and place of the hearing in a manner provided by Rule 21a, Texas
  Rules of Civil Procedure.  The notice of the hearing to the parking
  facility owner [person] or law enforcement agency that authorized
  the removal of the vehicle shall include a copy of the request for
  hearing.
         SECTION 19.  Section 2308.460, Occupations Code, is amended
  to read as follows:
         Sec. 2308.460.  ENFORCEMENT OF AWARD. (a) An award under
  this chapter may be enforced by any means available for the
  enforcement of a judgment for a debt.
         (b)  The department shall suspend a license holder's license
  on the license holder's failure to pay a final judgment awarded to
  an owner or operator of a vehicle before the 60th day after the date
  of the final judgment.
         (c)  The owner or operator of the vehicle shall submit a
  certified copy of the final judgment to the department.
         (d)  On receipt of the certified copy of the unpaid final
  judgment, the department shall disqualify a person from renewing a
  license or permit or deny the person the opportunity of taking a
  licensing examination on the grounds that the person, towing
  company, or vehicle storage facility has not paid a final judgment
  awarded to an owner or operator of a vehicle.
         (e)  The department shall reinstate the license on
  submission of evidence satisfactory to the department of payment of
  the final judgment by the person, towing company, or vehicle
  storage facility.
         SECTION 20.  Section 2303.159(a), Occupations Code, is
  amended to read as follows:
         (a)  The operator of a vehicle storage facility shall accept
  payment by an electronic check, debit card, or credit card for any
  charge associated with delivery or storage of a vehicle.  The
  operator of a vehicle storage facility may not refuse to release a
  vehicle based on the inability of the facility to accept payment by
  electronic check, debit card, or credit card of a fee or charge
  associated with delivery or storage of the vehicle. The facility
  shall conspicuously post a sign that states: "This vehicle storage
  facility must accept payment by an electronic check, credit card,
  or debit card for any fee or charge associated with delivery or
  storage of a vehicle."
         SECTION 21.  Not later than September 1, 2010, the Texas
  Commission of Licensing and Regulation shall adopt the rules
  necessary to implement the changes in law made by this Act,
  including rules on the maximum amount of fees that may be charged
  for private property tows.
         SECTION 22.  (a) The change in law made by this Act to
  Section 2308.405, Occupations Code, applies only to an offense
  committed on or after the effective date of this Act. For purposes
  of this section, an offense is committed before the effective date
  of this Act if any element of the offense occurs before that date.
         (b)  An offense committed before the effective date of this
  Act is covered by the law in effect when the offense was committed,
  and the former law is continued in effect for that purpose.
         SECTION 23.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2009.
         (b)  Sections 2308.202 and 2308.204, Occupations Code, as
  amended by this Act, take effect September 1, 2010.