85R6036 BEE-F

By: Kuempel H.B. No. 2508

A BILL TO BE ENTITLED

AN ACT

relating to the licensing and regulation of tow truck companies, tow truck operators, vehicle storage facilities, and vehicle storage facility employees, the regulation of parking facilities and parking facility owners, and the elimination of required state licensing for vehicle booting companies and operators; authorizing fee increases.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. LICENSING AND REGULATION OF TOWING, BOOTING, AND

VEHICLE STORAGE

SECTION 1.01. Section 2303.002, Occupations Code, is amended by amending Subdivisions (1), (5), (7), and (8) and adding Subdivision (4-a) to read as follows:

(1) "Abandoned nuisance vehicle" means a motor vehicle that is[:

[(A) at least 10 years old; and

[(B)] of a condition only to be crushed [demolished, wrecked,] or dismantled.

(4-a) "Incident management scene" means the location on a public or private roadway or right-of-way of a traffic accident or incident requiring services, equipment, repair, or cleanup to return the location to its intended use.

(5) "Owner of a vehicle" means a person:

(A) named as the purchaser or transferee in the certificate of title issued for the vehicle under Chapter 501, Transportation Code, or Chapter 31, Parks and Wildlife Code, as applicable;

(B) in whose name the vehicle is titled [registered] under Chapter 501 [502], Transportation Code, or Chapter 31, Parks and Wildlife Code, as applicable, or a member of the person's immediate family;

(C) who holds the vehicle through a lease agreement;

(D) who is an unrecorded lienholder entitled to possess the vehicle under the terms of a chattel mortgage; or

(E) who is a lienholder, holds an affidavit of repossession, and is entitled to repossess the vehicle.

(7) "Vehicle" means:

(A) a motor vehicle, semitrailer, or trailer, as defined by Section 501.002, Transportation Code [for which the issuance of a certificate of title is required under Chapter 501, Transportation Code]; or

(B) a vessel, as defined by Section 31.003, Parks and Wildlife Code [any other device designed to be self-propelled or transported on a public highway].

(8) "Vehicle storage facility" means a garage, parking lot, or other facility that is:

(A) owned by a person other than a governmental entity; and

(B) used to store [or park] at least 10 vehicles each year.

SECTION 1.02. Section 2303.003(a), Occupations Code, is amended to read as follows:

(a) This chapter does not apply to a vehicle stored [or parked] at a vehicle storage facility as a result of a [with the] consent tow, as defined by Section 2308.002, unless the vehicle was towed from an incident management scene [of the owner of the vehicle].

SECTION 1.03. Subchapter A, Chapter 2303, Occupations Code, is amended by adding Section 2303.004 to read as follows:

Sec. 2303.004. MUNICIPAL LAW OR GOVERNMENTAL CONTRACT CONTROLS. Unless specifically provided otherwise, this chapter does not control over:

(1) a municipal ordinance or charter; or

(2) a contract with a governmental entity to provide services for incident management towing, as defined by Section 2308.002.

SECTION 1.04. Section 2303.051, Occupations Code, is amended to read as follows:

Sec. 2303.051. GENERAL POWERS AND DUTIES [RULEMAKING: LICENSE REQUIREMENTS]. The executive director or commission, as appropriate, may take action necessary to administer and enforce [shall adopt rules that:

[(1) establish the requirements for a person to be licensed to operate a vehicle storage facility to ensure that the facility maintains adequate standards for the care of stored vehicles;

[(2) relate to the administrative sanctions that may be imposed on a person licensed under this chapter;

[(3) govern the administration of] this chapter.

SECTION 1.05. Subchapter B, Chapter 2303, Occupations Code, is amended by adding Section 2303.0511 to read as follows:

Sec. 2303.0511. RULES; DENIAL OF CERTAIN APPLICATIONS; STANDARDS OF CONDUCT. (a) The commission shall adopt rules for the licensing of a person to operate a vehicle storage facility.

(b) The commission shall adopt rules for the denial of a license application if the applicant, a partner, principal, officer, or general manager of the applicant, or another potential license holder of the license for which the application is made has:

(1) before the date of the application, been convicted of or has pleaded guilty or nolo contendere to:

(A) a felony; or

(B) a misdemeanor punishable by confinement in jail or by a fine in an amount that exceeds $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 fee or permit bond in an amount established by the commission; or

(4) knowingly submitted false or incomplete information on the application.

(c) The commission by rule shall adopt standards of conduct for license holders under this chapter.

SECTION 1.06. The heading to Section 2303.053, Occupations Code, is amended to read as follows:

Sec. 2303.053. RULES REGARDING PAYMENT OF FEE TO DEPARTMENT.

SECTION 1.07. Section 2303.053(a), Occupations Code, is amended to read as follows:

(a) The commission may adopt rules regarding the method of payment of a fee to the department under this chapter.

SECTION 1.08. The heading to Section 2303.056, Occupations Code, is amended to read as follows:

Sec. 2303.056. PERIODIC [AND RISK-BASED] INSPECTIONS.

SECTION 1.09. Section 2303.058, Occupations Code, is amended to read as follows:

Sec. 2303.058. ADVISORY BOARD. The Towing and [,] Storage[, and Booting] Advisory Board under Chapter 2308 shall advise the commission in adopting vehicle storage rules under this chapter.

SECTION 1.10. Section 2303.103, Occupations Code, is amended to read as follows:

Sec. 2303.103. ELIGIBILITY. The department shall approve an application submitted as provided by Section 2303.102 unless [the department determines that]:

(1) [the applicant knowingly supplied false or incomplete information on the application;

[(2) in the three years preceding the date of application, the applicant, a partner, principal, or officer of the applicant, or the general manager of the applicant, was convicted of:

[(A) a felony; or

[(B) a misdemeanor punishable by confinement in jail or by a fine exceeding $500; or

[(3)] the vehicle storage facility for which the license is sought does not meet the standards for storage facilities established by commission rules; or

(2) the rules adopted under Section 2303.0511(b) require that the application be denied.

SECTION 1.11. Section 2303.104(b), Occupations Code, is amended to read as follows:

(b) The notice must state the reason for the department's decision and that the applicant is entitled to a hearing before the State Office of Administrative Hearings under Section 51.354 [department under Subchapter E].

SECTION 1.12. Sections 2303.151(a), (d), and (e), Occupations Code, are amended to read as follows:

(a) The operator of a vehicle storage facility who receives a vehicle that is registered in this state and that is towed to the facility for storage shall send a written notice to the registered owner and each [the primary] lienholder of the vehicle not later than the fifth day after the date but not earlier than 24 hours after the date the operator receives the vehicle.

(d) A notice under this section must:

(1) be correctly addressed;

(2) be sent with [carry] sufficient postage attached or paid; and

(3) be sent:

(A) by certified mail, return receipt requested; or

(B) by electronic certified mail, electronic return receipt with electronic delivery confirmation requested.

(e) A notice under this section is considered to have been:

(1) given on:

(A) the date indicated on the postmark; or

(B) the electronic filing date acknowledged by an electronic audit trail by the United States Postal Service or its agent; and

(2) [to be] timely filed if:

(A) [(1)] the postmark or electronic filing date indicates that the notice was mailed within the period described by Subsection (a) or (b), as applicable; or

(B) [(2)] the notice was published as provided by Section 2303.152.

SECTION 1.13. Section 2303.1511(a), Occupations Code, is amended to read as follows:

(a) A vehicle storage facility accepting a vehicle that is towed under Chapter 2308 [this chapter] shall, within two hours after receiving the vehicle, report to the local law enforcement agency with jurisdiction over the area from which the vehicle was towed:

(1) a general description of the vehicle;

(2) the state and number of the vehicle's license plate, if any;

(3) the vehicle identification number of the vehicle, if it can be ascertained;

(4) the location from which the vehicle was towed; and

(5) the name and location of the vehicle storage facility where the vehicle is being stored.

SECTION 1.14. Sections 2303.152(a), (b), and (e), Occupations Code, are amended to read as follows:

(a) Notice to the registered owner and each [the primary] lienholder of a vehicle towed to a vehicle storage facility may be provided by publication in a newspaper of general circulation in the county in which the vehicle is stored or on the Internet website of a newspaper of general circulation in the county in which the vehicle is stored if:

(1) the vehicle is registered in another state;

(2) the operator of the storage facility submits to the governmental entity with which the vehicle is registered a written request, including an electronic request, for information relating to the identity of the registered owner and each [any] lienholder of record;

(3) the identity of the registered owner cannot be determined;

(4) the registration does not contain an address for the registered owner; or

(5) the operator of the storage facility cannot reasonably determine the identity and address of each recorded lienholder.

(b) The written or electronic request must:

(1) be correctly addressed;

(2) be sent with [carry] sufficient postage attached or paid; and

(3) be sent:

(A) by certified mail, return receipt requested; or

(B) by electronic certified mail, electronic return receipt with electronic delivery confirmation requested.

(e) Notice to the registered owner and each recorded [the primary] lienholder of a vehicle towed to a vehicle storage facility may be provided by publication in a newspaper of general circulation in the county in which the vehicle is stored or on the Internet website of a newspaper of general circulation in the county in which the vehicle is stored if:

(1) the vehicle does not display a license plate or a vehicle inspection certificate indicating the state of registration;

(2) the identity of the registered owner cannot reasonably be determined by the operator of the storage facility; or

(3) the operator of the storage facility cannot reasonably determine the identity and address of each recorded lienholder.

SECTION 1.15. Section 2303.154, Occupations Code, is amended to read as follows:

Sec. 2303.154. SECOND NOTICE; CONSENT TO SALE. (a) [If a vehicle is not claimed by a person permitted to claim the vehicle or a law enforcement agency has not taken an action in response to a notice under Section 683.031(c), Transportation Code, before the 15th day after the date notice is mailed or published under Section 2303.151 or 2303.152, the operator of the vehicle storage facility shall send a second notice to the registered owner and the primary lienholder of the vehicle.

[(a-1)] If a vehicle is not claimed by a person permitted to claim the vehicle before the 10th day after the date notice is mailed or published under Section 2303.151 or 2303.152, the operator of the vehicle storage facility shall consider the vehicle to be abandoned and report the [send notice of] abandonment to a law enforcement agency with jurisdiction where the vehicle is located. If the law enforcement agency notifies the vehicle storage facility that the agency will send notices and dispose of abandoned vehicles under Subchapter B, Chapter 683, Transportation Code, the vehicle storage facility shall pay the fee required under Section 683.031, Transportation Code.

(b) Not earlier than the 14th day after the date notice is mailed or published under Section 2303.151 or 2303.152, the operator of a vehicle storage facility shall send a second notice to the registered owner and each recorded lienholder of the vehicle if the facility has made a report under Subsection (a) and the law enforcement agency:

(1) has notified the facility that the law enforcement agency will not take custody of the vehicle;

(2) has not taken custody of the vehicle; or

(3) has not responded to the report.

(c) Notice under this section must be sent by certified mail, return receipt requested, or electronic certified mail, electronic return receipt with electronic delivery confirmation requested, and include:

(1) the information listed in Section 2303.153(a);

(2) a statement of the right of the facility to dispose of the vehicle under Section 2303.157; and

(3) a statement that the failure of the owner or lienholder to claim the vehicle before the 30th day after the date the notice is provided is:

(A) a waiver by that person of all right, title, or interest in the vehicle; and

(B) a consent to the sale of the vehicle at a public sale.

(d) [(c)] Notwithstanding Subsection (c) [(b)], if publication is required for notice under this section, the notice must include:

(1) the information listed in Section 2303.153(b); and

(2) a statement that the failure of the owner or recorded lienholder to claim the vehicle before the date of sale is:

(A) a waiver of all right, title, and interest in the vehicle; and

(B) a consent to the sale of the vehicle at a public sale.

SECTION 1.16. Section 2303.1545(b), Occupations Code, is amended to read as follows:

(b) The facility may:

(1) notify the Texas Department of Motor Vehicles [department] that notices under Chapter 683, Transportation Code, have been provided and shall pay a fee of $10 to the Texas Department of Motor Vehicles [department]; or

(2) in the alternative, notify the appropriate law enforcement agency and pay a fee of $10 to that agency if required by the agency.

SECTION 1.17. Section 2303.155, Occupations Code, is amended by amending Subsection (a) and adding Subsections (h) and (i) to read as follows:

(a) For the purposes of this section, "governmental vehicle storage facility" means a garage, parking lot, or other facility that is:

(1) [(A)] owned by a governmental entity; and

(2) [(B)] used to store or park at least 10 vehicles each year.

(h) The commission shall biennially:

(1) adjust fees under this section according to the percentage increase or decrease, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics of the United States Department of Labor;

(2) notify vehicle storage facilities licensed under this chapter of the adjustment; and

(3) allow a reasonable period for implementation of the adjustment.

(i) If a fee is decreased under Subsection (h), the operator of a vehicle storage facility or governmental vehicle storage facility shall begin charging the new fee amount on the effective date of the decrease. If a fee is increased, the operator may begin charging the new amount at any time on or after the effective date of the increase.

SECTION 1.18. Section 2303.1551, Occupations Code, is amended to read as follows:

Sec. 2303.1551. REQUIRED POSTING OR DISPLAY. (a) All storage fees shall be posted or electronically displayed at the licensed vehicle storage facility [to which the motor vehicle has been delivered and shall be posted] in view of a [the] person claiming a [who claims the] vehicle.

(b) A vehicle storage facility accepting a nonconsent towed vehicle shall post or electronically display a sign in [one inch] letters at least one inch high at the time of installation stating "Nonconsent tow fees schedules available on request." The vehicle storage facility shall provide a copy of a nonconsent towing fees schedule on request.

SECTION 1.19. Section 2303.157, Occupations Code, is amended by amending Subsections (a) and (b) and adding Subsections (a-1) and (b-1) to read as follows:

(a) The operator of a vehicle storage facility may dispose of a vehicle for which the second notice is given under Section 2303.154(b) or (d) [2303.154] if, before the 30th day after the date notice is mailed or published, the vehicle is not:

(1) claimed by a person entitled to claim the vehicle; or

(2) taken into custody by a law enforcement agency under Chapter 683, Transportation Code.

(a-1) If the vehicle is not claimed by a person entitled to claim the vehicle within the period described by Subsection (a), the owner or any recorded lienholder:

(1) waives all rights and interests in the vehicle; and

(2) consents to the sale of the vehicle at a public sale.

(b) An operator entitled to dispose of a vehicle under this section may sell the vehicle at a public sale without obtaining a release or discharge of any lien on the vehicle, regardless of whether notice was provided by mail or by publication under this chapter. The proceeds from the sale of the vehicle shall be applied to the charges incurred for the vehicle under Section 2303.155 and the cost of the public sale. The operator shall pay any excess proceeds to the person entitled to those proceeds.

(b-1) The purchaser of an abandoned vehicle under this section:

(1) takes title to the vehicle free and clear of all liens and claims of ownership;

(2) shall receive an auction sales receipt from the vehicle storage facility; and

(3) is entitled to register the vehicle and receive a certificate of title under Chapter 501, Transportation Code, or Chapter 31, Parks and Wildlife Code, as applicable.

SECTION 1.20. Sections 2303.159(a) and (a-1), Occupations Code, are amended to read as follows:

(a) The operator of a vehicle storage facility shall accept each of the following forms of payment for any charge associated with delivery or storage of a vehicle:

(1) cash;

(2) debit card; and

(3) credit card, if the credit card is issued by:

(A) a financial institution chartered by a state or the federal government; or

(B) a nationally recognized credit organization approved by the department.

(a-1) The operator of a vehicle storage facility shall conspicuously post or electronically display a sign that states: "This vehicle storage facility must accept payment by cash, credit card, and debit card for any fee or 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 debit card or credit card of a fee or charge associated with delivery or storage of the vehicle unless the operator, through no fault of the operator, is unable to accept the debit card or credit card because of a power outage or a machine malfunction.

SECTION 1.21. The heading to Section 2303.160, Occupations Code, is amended to read as follows:

Sec. 2303.160. RELEASE OF VEHICLES TO VEHICLE OWNER.

SECTION 1.22. Sections 2303.160(b) and (c), Occupations Code, are amended to read as follows:

(b) A vehicle storage facility shall release a vehicle to an owner of the vehicle if the owner:

(1) presents:

(A) valid photo identification issued by this state, another state, a federal agency, or a foreign government; and

(B) proof of ownership or right of possession or control of vehicle, including [must accept] evidence of financial responsibility[, as] required by Section 601.051, Transportation Code; and

(2) pays the fees and charges for services regulated under this chapter and Chapter 2308, including charges for an incident management tow, as defined by Section 2308.002 [, as an additional form of identification that establishes ownership or right of possession or control of the vehicle].

(c) A [Subsection (b) does not require a] vehicle storage facility may require other documentation as required by a municipal ordinance, law enforcement agency, or governmental agency under which the tow was authorized [to release a vehicle to the owner or operator of the vehicle if the owner or operator of the vehicle does not:

[(1) pay the charges for services regulated under this chapter or Chapter 2308, including charges for an incident management tow, as defined by Section 2308.002; and

[(2) present valid photo identification issued by this state, another state, a federal agency, or a foreign government].

SECTION 1.23. Subchapter D, Chapter 2303, Occupations Code, is amended by adding Section 2303.1601 to read as follows:

Sec. 2303.1601. ACCEPTANCE OF VEHICLES FROM AND RELEASE OF VEHICLES TO LICENSED TOWING OPERATORS. (a) A vehicle storage facility may accept towed vehicles only from licensed towing operators.

(b) A vehicle storage facility is required to release a vehicle to a towing operator only if:

(1) the towing operator:

(A) is licensed under Chapter 2308; and

(B) has the vehicle owner's written consent to the release of the vehicle, which may be in the form of an e-mail from the owner; and

(2) the release occurs between 8 a.m. and 6 p.m. on a weekday.

SECTION 1.24. Chapter 2303, Occupations Code, is amended by adding Subchapter E to read as follows:

SUBCHAPTER E. RIGHTS OF OWNERS AND OPERATORS OF STORED VEHICLES

Sec. 2303.201. NOTICE TO VEHICLE OWNER OR OPERATOR. (a) At the time an owner or operator of a vehicle pays the costs of the vehicle's towing, storage, and recovery, the vehicle storage facility that received the payment shall, unless a hearing regarding the vehicle's storage and towing has been held under Subchapter J, Chapter 2308, give the owner or operator written notice of the person's rights under this chapter, Chapter 2308 of this code, and Chapter 401, Property Code.

(b) The operator of a vehicle storage facility that sends a notice under Subchapter D shall include with that notice a notice of the person's rights under this chapter, Chapter 2308 of this code, and Chapter 401, Property Code.

(c) A vehicle storage facility that fails to furnish to the owner or operator of the vehicle at the time of payment the name, address, and telephone number of the parking facility owner or law enforcement agency that authorized the towing of the vehicle is liable for the costs of the vehicle's storage if the court, after a hearing, does not find probable cause for the towing and storage of the vehicle.

Sec. 2303.202. CONTENTS OF NOTICE. The notice under Section 2303.201 must include:

(1) a statement of:

(A) the vehicle owner's right to submit a request within 14 days for a court hearing to determine whether probable cause existed to tow the vehicle;

(B) the information that a request for a hearing must contain;

(C) the amount of any filing fee for the hearing; and

(D) the vehicle owner's right to request a hearing in any justice court in the county from which the vehicle was towed;

(2) the name, address, and telephone number of the towing company that towed the vehicle;

(3) the name, address, telephone number, and county of the vehicle storage facility in which the vehicle is stored;

(4) the name, street address, including city, state, and zip code, and telephone number of the person, parking facility owner, or law enforcement agency that authorized the towing of the vehicle; and

(5) either:

(A) the name, address, and telephone number of each justice court in the county from which the vehicle was towed; or

(B) the address of an Internet website maintained by the Office of Court Administration of the Texas Judicial System that contains the name, address, and telephone number of each justice court in that county.

Sec. 2303.203. HEARING. A hearing referenced in a notice given under this subchapter is governed by Subchapter J, Chapter 2308.

SECTION 1.25. Section 2303.302(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if the person [:

[(1)] violates the licensing requirements of this chapter [; or

[(2) employs an individual who does not hold an appropriate license required by this chapter].

SECTION 1.26. Sections 2308.002(1), (7), (8), (13), (14), (15), and (16), Occupations Code, are amended to read as follows:

(1) "Advisory board" means the Towing and [,] Storage [, and Booting] Advisory Board.

(7) "Parking facility" has the meaning assigned by Section 401.002, Property Code [means public or private property used, wholly or partly, for restricted or paid vehicle parking. The term includes:

[(A) a restricted space on a portion of an otherwise unrestricted parking facility; and

[(B) a commercial parking lot, a parking garage, and a parking area serving or adjacent to a business, church, school, home that charges a fee for parking, apartment complex, property governed by a property owners' association, or government-owned property leased to a private person, including:

[(i) a portion of the right-of-way of a public roadway that is leased by a governmental entity to the parking facility owner; and

[(ii) the area between the facility's property line abutting a county or municipal public roadway and the center line of the roadway's drainage way or the curb of the roadway, whichever is farther from the facility's property line].

(8) "Parking facility owner" has the meaning assigned by Section 401.002, Property Code [means:

[(A) an individual, corporation, partnership, limited partnership, limited liability company, association, trust, or other legal entity owning or operating a parking facility;

[(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].

(13) "Unauthorized vehicle" has the meaning assigned by Section 401.002, Property Code [means a vehicle parked, stored, or located on a parking facility without the consent of the parking facility owner].

(14) "Vehicle" means a:

(A) motor vehicle, as defined by Section 501.002, Transportation Code; or

(B) vessel, as defined by Section 31.003, Parks and Wildlife Code [device in, on, or by which a person or property may be transported on a public roadway. The term includes an operable or inoperable automobile, truck, motorcycle, recreational vehicle, or trailer but does not include a device moved by human power or used exclusively on a stationary rail or track].

(15) "Vehicle owner" means a person:

(A) named as the purchaser or transferee in the certificate of title issued for the vehicle under Chapter 501, Transportation Code, or Chapter 31, Parks and Wildlife Code, as applicable;

(B) in whose name the vehicle is titled [registered] under Chapter 501 [502], Transportation Code, or Chapter 31, Parks and Wildlife Code, as applicable, or a member of the person's immediate family;

(C) who holds the vehicle through a lease agreement;

(D) who is an unrecorded lienholder entitled to possess the vehicle under the terms of a chattel mortgage; or

(E) who is a lienholder holding an affidavit of repossession and entitled to repossess the vehicle.

(16) "Vehicle storage facility" has the meaning assigned by [means a vehicle storage facility, as defined by] Section 2303.002 [, that is operated by a person who holds a license issued under Chapter 2303 to operate the facility].

SECTION 1.27. Subchapter A, Chapter 2308, Occupations Code, is amended by adding Section 2308.005 to read as follows:

Sec. 2308.005. MUNICIPAL LAW OR GOVERNMENTAL CONTRACT CONTROLS. Unless specifically provided otherwise, this chapter does not control over:

(1) a municipal ordinance or charter; or

(2) a contract with a governmental entity to provide incident management tow service.

SECTION 1.28. The heading to Subchapter B, Chapter 2308, Occupations Code, is amended to read as follows:

SUBCHAPTER B. ADVISORY BOARD; POWERS AND DUTIES OF DEPARTMENT AND

COMMISSION

SECTION 1.29. The heading to Section 2308.051, Occupations Code, is amended to read as follows:

Sec. 2308.051. TOWING AND [,] STORAGE [, AND BOOTING] ADVISORY BOARD.

SECTION 1.30. Section 2308.051(a), Occupations Code, as amended by Chapters 457 (H.B. 2548) and 845 (S.B. 2153), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows:

(a) The advisory board consists of the following members appointed by the presiding officer of the commission with the approval of the commission:

(1) one representative of a towing company operating in a county with a population of less than one million;

(2) one representative of a towing company operating in a county with a population of one million or more;

(3) one owner of a vehicle storage facility located in a county with a population of less than one million;

(4) one owner of a vehicle storage facility located in a county with a population of one million or more;

(5) one parking facility owner;

(6) one law enforcement officer from a county with a population of less than one million;

(7) one law enforcement officer from a county with a population of one million or more;

(8) one representative of property and casualty insurers who write automobile insurance in this state; and

[(9) one representative of a booting company]

(9) one public member.

SECTION 1.31. Section 2308.052, Occupations Code, is amended by adding Subsection (d) to read as follows:

(d) The presiding officer of the commission may remove a member who is absent from two or more consecutive meetings of the advisory board.

SECTION 1.32. 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 [, booting companies, and boot operators]. The commission may adopt different rules applicable to each type of permit or license.

SECTION 1.33. Section 2308.059, Occupations Code, is amended to read as follows:

Sec. 2308.059. PERIODIC [AND RISK-BASED] INSPECTIONS. (a) The department may enter and inspect at any time during business hours:

(1) the place of business of any person regulated under this chapter; or

(2) any place in which the department has reasonable cause to believe that a license or permit holder is in violation of this chapter or in violation of a rule or order of the commission or executive director.

(b) [The department shall conduct additional inspections based on a schedule of risk-based inspections using the following criteria:

[(1) the type and nature of the towing company or operator;

[(2) the inspection history;

[(3) any history of complaints involving the towing company or operator; and

[(4) any other factor determined by the commission by rule.

[(c) The towing company shall pay a fee for each risk-based inspection performed under this section. The commission by rule shall set the amount of the fee.

[(d)] In conducting an inspection under this section, the department may inspect a vehicle, a facility, business records, or any other place or thing reasonably required to enforce this chapter or a rule or order adopted under this chapter.

SECTION 1.34. Subchapter B, Chapter 2308, Occupations Code, is amended by adding Section 2308.062 to read as follows:

Sec. 2308.062. CONTINUING EDUCATION PROGRAMS. (a) The commission by rule shall recognize, prepare, and administer continuing education programs for license holders.

(b) A person recognized by the commission to offer a continuing education program must:

(1) register with the department; and

(2) comply with rules adopted by the commission relating to continuing education.

SECTION 1.35. The heading to Subchapter C, Chapter 2308, Occupations Code, is amended to read as follows:

SUBCHAPTER C. GENERAL [TOW TRUCK] PERMIT PROVISIONS [REQUIREMENTS]

SECTION 1.36. Section 2308.101, Occupations Code, is amended to read as follows:

Sec. 2308.101. PERMIT REQUIRED. A tow truck may not be used for consent towing or nonconsent towing on a public roadway in this state unless an appropriate permit has been issued for the tow truck under this chapter [subchapter]. Each tow truck requires a separate permit.

SECTION 1.37. Section 2308.102(a), Occupations Code, is amended to read as follows:

(a) An applicant for a permit under this chapter [subchapter] must submit to the department:

(1) a completed application on a form prescribed by the executive director;

(2) evidence of insurance or financial responsibility required under this chapter [subchapter];

(3) the required fees; and

(4) any other information required by the executive director.

SECTION 1.38. Section 2308.106(a), Occupations Code, is amended to read as follows:

(a) The department shall issue a permit under this chapter [subchapter] to an applicant who meets the requirements for a permit. The department may deny an application if the applicant has had a permit revoked under this chapter.

SECTION 1.39. Sections 2308.108(a), (b), and (e), Occupations Code, are amended to read as follows:

(a) The department shall issue a cab card for each tow truck issued a permit. The commission by rule shall prescribe the contents of the cab card [must:

[(1) show the permit number of the certificate issued under Section 2308.106(b);

[(2) show the type of permit issued;

[(3) show the vehicle unit number;

[(4) show the vehicle identification number; and

[(5) contain a statement that the vehicle has been issued a permit under this subchapter].

(b) The department shall issue a cab card when the department issues or renews a permit under this chapter [subchapter].

(e) If the department determines that the cab card system described by Subsections (a) through (c) is not an efficient means of enforcing this chapter [subchapter], the commission [executive director] by rule may adopt an alternative method that is accessible by law enforcement personnel in the field and provides for the enforcement of the permit requirements of this chapter [subchapter].

SECTION 1.40. Section 2308.109(b), Occupations Code, is amended to read as follows:

(b) The information required to be displayed must be:

(1) printed in letters and numbers that are, at the time of initial application, at least two inches high and in a color that contrasts with the color of the background surface; and

(2) permanently affixed in conspicuous places on both sides of the tow truck.

SECTION 1.41. Sections 2308.110(a) and (c), Occupations Code, are amended to read as follows:

(a) A permit holder shall maintain liability insurance for each tow truck according to the requirements under this chapter [subchapter].

(c) An applicant or permit holder must file with the department evidence of insurance as required by this chapter [subchapter].

SECTION 1.42. The heading to Subchapter D, Chapter 2308, Occupations Code, is amended to read as follows:

SUBCHAPTER D. GENERAL LICENSE PROVISIONS [REQUIREMENTS]

SECTION 1.43. Section 2308.151, Occupations Code, is amended to read as follows:

Sec. 2308.151. LICENSE REQUIRED. Unless the person holds an appropriate license under this chapter [subchapter], a person may not:

(1) perform towing operations; or

(2) operate a towing company [;

[(3) perform booting operations; or

[(4) operate a booting company].

SECTION 1.44. Section 2308.152, Occupations Code, is amended to read as follows:

Sec. 2308.152. GENERAL LICENSE APPLICATION REQUIREMENTS. An applicant for a license under this chapter [subchapter] must submit to the department:

(1) a completed application on a form prescribed by the executive director;

(2) the required fees; and

(3) any other information required by commission rule.

SECTION 1.45. Section 2308.156, Occupations Code, is amended to read as follows:

Sec. 2308.156. NONTRANSFERABILITY OF LICENSE. (a) A license issued by the executive director is valid throughout this state and is not transferable.

(b) Notwithstanding Subsection (a), if the holder of a license issued under this chapter dies or is disabled, the commission may transfer the license to a member of the license holder's family.

SECTION 1.46. Section 2308.158, Occupations Code, is amended to read as follows:

Sec. 2308.158. ALCOHOL AND DRUG TESTING OF TOWING OPERATORS. (a) A towing company shall establish an alcohol and drug testing policy for towing operators. A towing company that establishes an alcohol and drug testing policy under this subsection may adopt:

(1) the model alcohol and drug testing policy adopted by the commission;

(2) [or may use] another alcohol and drug testing policy that the department determines is at least as stringent as the policy adopted by the commission; or

(3) the alcohol and drug testing policy prescribed by 49 C.F.R. Part 40.

(b) The commission by rule shall adopt a model alcohol and drug testing policy for use by a towing company. The model alcohol and drug testing policy must be designed to ensure the safety of the public through appropriate alcohol and drug testing and to protect the rights of employees. The model alcohol and drug testing policy must [:

[(1) require at least one scheduled drug test each year for each towing operator; and

[(2)] authorize random, unannounced alcohol and drug testing for towing operators.

SECTION 1.47. Sections 2308.159(a) and (c), Occupations Code, are amended to read as follows:

(a) A license issued under this chapter [subchapter] is valid for one year. The department may adopt a system under which licenses expire at different times during the year.

(c) A license holder may renew a license issued under this chapter by:

(1) submitting an application on a form prescribed by the executive director;

(2) submitting evidence demonstrating compliance with the requirements for the license type as required by this chapter or commission rule;

(3) paying a renewal fee; and

(4) completing continuing education as required by Section 2308.163, 2308.173, or 2308.183, as applicable [2308.157].

SECTION 1.48. Chapter 2308, Occupations Code, is amended by adding Subchapters D-1, D-2, and D-3 to read as follows:

SUBCHAPTER D-1. INCIDENT MANAGEMENT TOWING

Sec. 2308.161. REQUIREMENTS FOR INCIDENT MANAGEMENT TOWING PERMIT. (a) An incident management towing permit is required for a tow truck used to perform any nonconsent tow initiated by a peace officer, including a tow authorized under Section 545.3051, Transportation Code.

(b) To be eligible for an incident management towing permit, an applicant must submit evidence that:

(1) the tow truck to be permitted is equipped to tow light-duty or heavy-duty vehicles according to the manufacturer's towing guidelines;

(2) the applicant maintains at least $500,000 of liability insurance coverage for the tow truck; and

(3) the applicant maintains at least $50,000 of cargo insurance coverage for the tow truck.

(c) A tow truck permitted under this section may also be used for private property towing and consent towing.

(d) When a tow truck is used for a nonconsent tow initiated by a peace officer under Section 545.3051, Transportation Code, the permit holder is an agent of law enforcement and is subject to Section 545.3051(e), Transportation Code.

Sec. 2308.162. INCIDENT MANAGEMENT TOWING OPERATOR'S LICENSE. (a) An incident management towing operator's license is required to operate a tow truck permitted under Section 2308.161.

(b) An applicant for an incident management towing operator's license must:

(1) hold a valid driver's license issued by a state in the United States; and

(2) be certified by a program approved by the department.

Sec. 2308.163. CONTINUING EDUCATION REQUIREMENTS FOR INCIDENT MANAGEMENT TOWING OPERATOR. (a) To renew an incident management towing operator's license for the first time, a license holder must complete an eight-hour professional development course relating to incident management towing that is approved and administered by the department.

(b) To renew an incident management towing operator's license after the first renewal, a license holder must complete a four-hour professional development course relating to incident management towing that is approved and administered by the department.

SUBCHAPTER D-2. PRIVATE PROPERTY TOWING

Sec. 2308.171. REQUIREMENTS FOR PRIVATE PROPERTY TOWING PERMIT. (a) A private property towing permit is required for a tow truck used to perform a nonconsent tow authorized by a parking facility owner under this chapter or Chapter 401, Property Code.

(b) To be eligible for a private property towing permit, an applicant must submit evidence that:

(1) the tow truck to be permitted is equipped to tow light-duty or heavy-duty vehicles according to the manufacturer's towing guidelines;

(2) the applicant maintains at least $300,000 of liability insurance coverage for the tow truck; and

(3) the applicant maintains at least $50,000 of cargo insurance coverage for the tow truck.

(c) A tow truck permitted under this section may also be used for consent towing. A tow truck permitted under this section may not be used for incident management towing.

Sec. 2308.172. PRIVATE PROPERTY TOWING OPERATOR'S LICENSE. (a) A private property towing operator's license is required to operate a tow truck permitted under Section 2308.171.

(b) An applicant for a private property towing operator's license must:

(1) hold a valid driver's license issued by a state in the United States; and

(2) be certified by a program approved by the department.

Sec. 2308.173. CONTINUING EDUCATION REQUIREMENTS FOR PRIVATE PROPERTY TOWING OPERATOR. To renew a private property towing operator's license, a license holder must complete a four-hour professional development course relating to private property towing that is approved and administered by the department.

SUBCHAPTER D-3. CONSENT TOWING

Sec. 2308.181. REQUIREMENTS FOR CONSENT TOWING PERMIT. (a) A consent towing permit is required for a tow truck used to perform a consent tow authorized by the vehicle owner.

(b) To be eligible for a consent towing permit, an applicant must submit evidence that:

(1) the tow truck to be permitted is equipped to tow light-duty or heavy-duty vehicles according to the manufacturer's towing guidelines; and

(2) the applicant maintains at least $300,000 of liability insurance coverage for the tow truck.

(c) A tow truck permitted under this section may not be used for nonconsent towing, including incident management towing and private property towing.

Sec. 2308.182. CONSENT TOWING OPERATOR'S LICENSE. (a) A consent towing operator's license is required to operate a tow truck permitted under Section 2308.181.

(b) An applicant for a consent towing operator's license must hold a valid driver's license issued by a state in the United States.

Sec. 2308.183. CONTINUING EDUCATION REQUIREMENTS FOR CONSENT TOWING OPERATOR. To renew a consent towing operator's license, a license holder must complete a four-hour professional development course relating to consent towing that is approved and administered by the department.

SECTION 1.49. Section 2308.201(d), Occupations Code, is amended to read as follows:

(d) A political subdivision may not require a person who holds a driver's license or commercial driver's license to obtain a license or permit for operating a tow truck unless the person performs nonconsent tows in the territory of the political subdivision. A fee charged for a license or permit may not exceed $50 [$15].

SECTION 1.50. The heading to Section 2308.205, Occupations Code, is amended to read as follows:

Sec. 2308.205. TOWING OF [STORAGE OF TOWED] VEHICLES TO LICENSED VEHICLE STORAGE FACILITY.

SECTION 1.51. Sections 2308.2065(a) and (b), Occupations Code, are amended to read as follows:

(a) A license or permit holder may not charge a fee [for a nonconsent tow that is greater than]:

(1) [the fee] for a private property [nonconsent] tow that is greater than a fee:

(A) established under Section 2308.0575; or

(B) authorized by a political subdivision; or

(2) [a fee] for an incident management [a nonconsent] tow that is greater than a fee authorized by a political subdivision.

(b) A license or permit holder may not charge a fee [for a service related to a nonconsent tow that is not included in the list of fees established]:

(1) for a service related to a private property tow that is not included in the fees established under Section 2308.0575; or

(2) for a service related to an incident management tow that is not a fee authorized by a political subdivision.

SECTION 1.52. Section 2308.2085(a), Occupations Code, is amended to read as follows:

(a) A municipality may adopt an ordinance regulating [that is identical to the] booting companies and operators [provisions in this chapter or that imposes additional requirements that exceed the minimum standards of the booting provisions in this chapter but may not adopt an ordinance that conflicts with the booting provisions in this chapter].

SECTION 1.53. Section 2308.255, Occupations Code, is transferred to Subchapter I, Chapter 2308, Occupations Code, redesignated as Section 2308.4011, Occupations Code, and amended to read as follows:

Sec. 2308.4011 [2308.255]. TOWING COMPANY'S [OR BOOT OPERATOR'S] AUTHORITY TO TOW [REMOVE AND STORE OR BOOT] UNAUTHORIZED VEHICLE FROM PARKING FACILITY. (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, tow [remove and store] the vehicle to [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 the conditions for vehicle removal under Section 401.052, Property Code, are satisfied[:

[(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) on request the parking facility owner provides to the owner or operator of the vehicle information on 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;

[(B) in or obstructing a portion of a paved driveway; or

[(C) on a public roadway used for entering or exiting the facility and the removal is approved by a peace officer].

(b) A towing company may not tow [remove] an unauthorized vehicle except under:

(1) this chapter;

(2) a municipal ordinance that complies with Section 2308.208; or

(3) the direction of a peace officer or the owner or operator of the vehicle.

(c) [Only a towing company that is insured against liability for property damage incurred in towing a vehicle may remove and store an unauthorized vehicle under this section.

[(d)] A towing company may tow [remove and store] a vehicle under Subsection (a) to a licensed vehicle storage facility [and a boot operator may boot a vehicle under Section 2308.257] only if the parking facility owner:

(1) requests that the towing company tow [remove and store or that the boot operator boot] the specific vehicle; or

(2) has a standing written agreement with the towing company [or boot operator] to enforce parking restrictions in the parking facility.

SECTION 1.54. The heading to Section 2308.353, Occupations Code, is amended to read as follows:

Sec. 2308.353. TOWING [REMOVAL] UNDER GOVERNMENTAL ENTITY'S AUTHORITY OF UNAUTHORIZED VEHICLE PARKED IN RIGHT-OF-WAY.

SECTION 1.55. Sections 2308.353(b) and (c), Occupations Code, are amended to read as follows:

(b) A sign under Subsection (a)(2) must:

(1) state that a vehicle parked in the right-of-way may be towed at the expense of the owner or operator of the vehicle;

(2) be placed facing the public roadway:

(A) on the parking facility owner's property not more than two feet from the common boundary line; and

(B) at intervals so that no point in the boundary line is less than 25 feet from a sign posted under this subsection; and

(3) in all other respects comply with Subchapter C, Chapter 401, Property Code [G].

(c) After signs have been posted under Subsection (b), the parking facility owner may have [or] a towing company tow [may remove] an unauthorized vehicle from the right-of-way subject to the governmental entity's written permission given under Subsection (a)(2).

SECTION 1.56. Section 2308.354, Occupations Code, is transferred to Subchapter E, Chapter 2308, Occupations Code, and redesignated as Section 2308.210, Occupations Code, to read as follows:

Sec. 2308.210 [2308.354]. AUTHORITY FOR REMOVAL OF VEHICLE FROM PUBLIC ROADWAY. (a) Under an ordinance of a municipality regulating the parking of vehicles in the municipality, to aid in the enforcement of the ordinance, an employee designated by the municipality may be authorized to:

(1) immobilize a vehicle parked in the municipality; and

(2) remove an immobilized vehicle from a public roadway in the municipality.

(b) A parking facility owner or towing company may not remove a vehicle from a public roadway except under:

(1) this chapter or a municipal ordinance that complies with Section 2308.208; or

(2) the direction of a peace officer or the owner or operator of the vehicle.

(c) In addition to the authority granted under Subsection (a) and to aid in the enforcement of an ordinance regulating the parking of vehicles, a municipality with a population of 1.9 million or more may authorize a designated employee to request the removal of a vehicle parked illegally in an area designated as a tow-away zone in a residential area where on-street parking is regulated by the ordinance.

(d) Subsections (a) and (c) do not apply to a vehicle owned by an electric, gas, water, or telecommunications utility while the vehicle is parked for the purpose of conducting work on a facility of the utility that is located below, above, or adjacent to the street.

SECTION 1.57. The heading to Subchapter I, Chapter 2308, Occupations Code, is amended to read as follows:

SUBCHAPTER I. REGULATION OF TOWING COMPANIES [, BOOTING COMPANIES,

AND PARKING FACILITY OWNERS]

SECTION 1.58. Section 2308.402, Occupations Code, is amended to read as follows:

Sec. 2308.402. TOWING COMPANY [AND BOOTING COMPANY] PROHIBITED FROM FINANCIAL INVOLVEMENT WITH PARKING FACILITY OWNER. (a) A towing company [or booting company] may not directly or indirectly give anything of value to a parking facility owner in connection with [:

[(1)] the towing [removal] of a vehicle from a parking facility [; or

[(2) the booting of a vehicle in a parking facility].

(b) A towing company [or booting company] may not have a direct or indirect monetary interest in a parking facility [:

[(1)] from which the towing company for compensation tows [removes] unauthorized vehicles [; or

[(2) in which the booting company for compensation installs boots on unauthorized vehicles].

(c) This section does not apply to a sign required under Section 401.101, Property Code, [2308.301] provided by a towing [or booting] company to a parking facility owner.

SECTION 1.59. Section 2308.404, Occupations Code, is amended to read as follows:

Sec. 2308.404. CIVIL LIABILITY OF TOWING COMPANY [, BOOTING COMPANY, OR PARKING FACILITY OWNER] FOR VIOLATION OF CHAPTER. (a) A towing company that[, booting company, or parking facility owner who] violates this chapter is liable to the owner or operator of the vehicle that is the subject of the violation for:

(1) damages arising from the towing [removal, storage, or booting] of the vehicle; and

(2) towing [, storage, or booting] fees assessed in connection with the vehicle's towing [removal, storage, or booting].

(b) A vehicle's owner or operator is not required to prove negligence of a [parking facility owner,] towing company [, or booting company] to recover under Subsection (a).

(c) A towing company that[, booting 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 plus three times the amount of fees assessed in the vehicle's [removal,] towing [, storage, or booting].

SECTION 1.60. Section 2308.452, Occupations Code, is amended to read as follows:

Sec. 2308.452. RIGHT OF OWNER OR OPERATOR OF VEHICLE TO HEARING. The owner or operator of a vehicle that has been towed to [removed and placed in] a vehicle storage facility [or booted] without the consent of the owner or operator of the vehicle is entitled to a hearing on whether probable cause existed for the tow [removal and placement or booting].

SECTION 1.61. Section 2308.453, Occupations Code, is amended to read as follows:

Sec. 2308.453. JURISDICTION. A hearing under this chapter shall be in any justice court in[:

[(1)] the county from which the motor vehicle was towed [; or

[(2) for booted vehicles, the county in which the parking facility is located].

SECTION 1.62. Sections 2308.456(a), (b), and (c), Occupations Code, are amended to read as follows:

(a) Except as provided by Subsections (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 towed and stored [removed and placed] in the vehicle storage facility [or booted], excluding Saturdays, Sundays, and legal holidays.

(b) A request for a hearing must contain:

(1) the name, address, and telephone number of the owner or operator of the vehicle;

(2) the location from which the vehicle was towed [removed or in which the vehicle was booted];

(3) the date when the vehicle was towed [removed or booted];

(4) the name, address, and telephone number of the person or law enforcement agency that authorized the tow [removal or booting];

(5) the name, address, and telephone number of the vehicle storage facility in which the vehicle was stored [placed];

(6) the name, address, and telephone number of the towing company that towed [removed] the vehicle [or of the booting company that installed a boot on the vehicle];

(7) a copy of any receipt or notification that the owner or operator received from the towing company [, the booting company,] or the vehicle storage facility; and

(8) if the vehicle was towed [removed] from [or booted in] a parking facility:

(A) one or more photographs that show the location and text of any sign posted at the facility restricting parking of vehicles; or

(B) a statement that no sign restricting parking was posted at the parking facility.

(c) If notice was not given under Subchapter E, Chapter 2303 [Section 2308.454], the 14-day deadline for requesting a hearing under Subsection (a) does not apply, and the owner or operator of the vehicle may deliver a written request for a hearing at any time.

SECTION 1.63. Sections 2308.458(b), (c), and (e), Occupations Code, are amended to read as follows:

(b) The court shall notify the person who requested the hearing [for a towed vehicle], the parking facility owner or law enforcement agency that authorized the towing [removal] of the vehicle, the towing company, and the vehicle storage facility in which the vehicle was stored [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 towing company and the parking facility owner or law enforcement agency that authorized the towing [removal] of the vehicle must include a copy of the request for hearing. Notice to the law enforcement agency that authorized the towing [removal] of the vehicle is sufficient as notice to the political subdivision in which the law enforcement agency is located.

(c) The issues in a hearing regarding a towed vehicle under this chapter are:

(1) whether probable cause existed for the towing [removal and placement] of the vehicle;

(2) whether a towing charge imposed or collected in connection with the towing [removal or placement] of the vehicle was [greater than the amount] authorized [by the political subdivision] under Section 2308.2065 [2308.201 or 2308.202]; or

(3) whether a storage [towing] charge imposed or collected in connection with the storage [removal or placement] of the vehicle in a vehicle storage facility was authorized or was greater than the amount authorized under Chapter 2303 [Section 2308.203; or

[(4) 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 2308.0575].

(e) The court may award:

(1) court costs [and attorney's fees] to the prevailing party;

(2) the reasonable cost of photographs submitted under Section 2308.456(b)(8) to a vehicle owner or operator who is the prevailing party;

(3) an amount equal to the amount by which [that] the towing or storage charge [or booting removal charge and associated parking fees] exceeded fees regulated by a political subdivision or authorized by this code or by Chapter 2303; and

(4) reimbursement of fees paid for vehicle towing and[,] storage[, or removal of a boot].

SECTION 1.64. Subchapter J, Chapter 2308, Occupations Code, is amended by adding Section 2308.4581 to read as follows:

Sec. 2308.4581. PAYMENT OF COST OF TOWING AND STORAGE OF VEHICLE. (a) If after a hearing held under this subchapter the court finds that a person or law enforcement agency authorized, with probable cause, the towing and storage of a vehicle, the person who requested the hearing shall pay the costs of the towing and storage.

(b) If after a hearing held under this subchapter the court does not find that a person or law enforcement agency authorized, with probable cause, the towing and storage of a vehicle, the towing company, vehicle storage facility, parking facility owner, or law enforcement agency that authorized the tow shall:

(1) pay the costs of the towing and storage; or

(2) reimburse the owner or operator for the cost of the towing and storage paid by the owner or operator.

(c) If after a hearing held under this subchapter, regardless of whether the court finds that there was probable cause for the towing and storage of a vehicle, the court finds that the amount of a towing or storage charge collected was not authorized by Section 2308.2065 or Chapter 2303, the towing company or vehicle storage facility as applicable shall reimburse the owner or operator of the vehicle an amount equal to the amount of the overcharge for towing or storage.

SECTION 1.65. Section 2308.459, Occupations Code, is amended to read as follows:

Sec. 2308.459. APPEAL. (a) An appeal from a hearing under this chapter is governed by the rules of procedure applicable to civil cases in justice court, except that no appeal bond may be required by the court.

(b) If the party requesting the hearing does not participate in the hearing, the party waives the right to an appeal under this section.

SECTION 1.66. Section 2308.505(a), Occupations Code, is amended to read as follows:

(a) A person commits an offense if the person:

(1) violates an ordinance, resolution, order, rule, or regulation of a political subdivision adopted under Section 2308.201 or[,] 2308.202[, or 2308.2085] 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 2308.201 or 2308.202 [or booting under Section 2308.2085] 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 2308.204;

[(4)] charges or collects a fee in excess of the amount authorized [filed with the department] under Section 2308.2065 [2308.206];

(4) [(5)] violates Section 2308.205; or

(5) [(6)] violates a rule of the department applicable to a tow truck or[,] towing company[, or booting company].

ARTICLE 2. PARKING FACILITIES AND PARKING FACILITY OWNERS

SECTION 2.01. The Property Code is amended by adding Title 16 to read as follows:

TITLE 16. MISCELLANEOUS RIGHTS AND DUTIES OF PROPERTY OWNERS

CHAPTER 401. PARKING FACILITIES AND PARKING FACILITY OWNERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 401.001. SHORT TITLE. This chapter may be cited as the Texas Parking Facility Act.

Sec. 401.002. DEFINITIONS. In this chapter:

(1) "Parking facility" means public or private property used, wholly or partly, for restricted or paid vehicle parking, including:

(A) a restricted space on a portion of an otherwise unrestricted parking facility; and

(B) a commercial parking lot, a parking garage, and a parking area serving or adjacent to a business, church, school, home that charges a fee for parking, apartment complex, property governed by a property owners' association, or government-owned property leased to a private person, including:

(i) a portion of the right-of-way of a public roadway that is leased by a governmental entity to the parking facility owner; and

(ii) the area between the facility's property line abutting a county or municipal public roadway and the center line of the roadway's drainage way or the curb of the roadway, whichever is farther from the facility's property line.

(2) "Parking facility owner" means:

(A) an individual, corporation, partnership, limited partnership, limited liability company, association, trust, or other legal entity owning or operating a parking facility;

(B) a property owners' association having control under a dedicatory instrument, as that term is defined in Section 202.001, 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, to use a parking space.

(3) "Private property tow" has the meaning assigned by Section 2308.002, Occupations Code.

(4) "Towing company" has the meaning assigned by Section 2308.002, Occupations Code.

(5) "Unauthorized vehicle" means a vehicle parked, stored, or located on a parking facility without the consent of the parking facility owner.

(6) "Vehicle" has the meaning assigned by Section 2308.002, Occupations Code.

(7) "Vehicle owner" has the meaning assigned by Section 2308.002, Occupations Code.

(8) "Vehicle storage facility" has the meaning assigned by Section 2303.002, Occupations Code.

SUBCHAPTER B. UNAUTHORIZED VEHICLES AT PARKING FACILITY

Sec. 401.051. PROHIBITION AGAINST UNATTENDED VEHICLES IN CERTAIN AREAS OF PARKING FACILITY. (a) The owner or operator of a vehicle may not leave unattended on a parking facility a vehicle that:

(1) is in or obstructs a vehicular traffic aisle, entry, or exit of the parking facility;

(2) prevents a vehicle from exiting a parking space in the facility;

(3) is in or obstructs a fire lane marked according to Subsection (c);

(4) does not display the special license plates issued under Section 504.201, Transportation Code, or the disabled parking placard issued under Chapter 681, Transportation Code, for a vehicle transporting a disabled person and that is in a parking space designated for the exclusive use of a vehicle transporting a disabled person; or

(5) is leaking a fluid that presents a hazard or threat to persons or property.

(b) Subsection (a) does not apply to an emergency vehicle that is owned by, or the operation of which is authorized by, a governmental entity.

(c) If a government regulation governing the marking of a fire lane applies to a parking facility, a fire lane in the facility must be marked as provided by the regulation. If a government regulation on the marking of a fire lane does not apply to the parking facility, all curbs of fire lanes must be painted red and be conspicuously and legibly marked with the warning "FIRE LANE--TOW AWAY ZONE" in white letters at least three inches high, at intervals not exceeding 50 feet.

Sec. 401.052. TOWING AND STORAGE OF UNAUTHORIZED VEHICLE. (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 towed by a person licensed under Chapter 2308, Occupations Code, and stored at a vehicle storage facility operated by a person licensed under Chapter 2303, Occupations Code, at the vehicle owner's or operator's expense if:

(1) signs that comply with Subchapter C 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) on request, the parking facility owner provides to the owner or operator of the vehicle information on the name of the towing company and vehicle storage facility that will be used to tow and store the vehicle and the vehicle is:

(A) left in violation of Section 401.051 or 401.053; or

(B) in or obstructing a portion of a paved driveway or abutting public roadway used for entering or exiting the facility.

(b) A parking facility owner is considered to have given notice under Subsection (a)(3) if:

(1) a conspicuous notice has been attached to the vehicle's front windshield or, if the vehicle has no front windshield, to a conspicuous part of the vehicle stating:

(A) that the vehicle is in a parking space in which the vehicle is not authorized to be parked;

(B) a description of all other unauthorized areas in the parking facility;

(C) that the vehicle will be towed at the expense of the owner or operator of the vehicle if it remains in an unauthorized area of the parking facility; and

(D) a telephone number that is answered 24 hours a day to enable the owner or operator of the vehicle to locate the vehicle; and

(2) a notice is mailed after the notice is attached to the vehicle as provided by Subdivision (1) to the owner of the vehicle by certified mail, return receipt requested, to the last address shown for the owner according to the vehicle registration records of the Texas Department of Motor Vehicles, or if the vehicle is registered in another state, the appropriate agency of that state.

(c) The notice under Subsection (b)(2) must:

(1) state that the vehicle is in a space in which the vehicle is not authorized to park;

(2) describe all other unauthorized areas in the parking facility;

(3) contain a warning that the unauthorized vehicle will be towed at the expense of the owner or operator of the vehicle if it is not removed from the parking facility before the 15th day after the postmark date of the notice; and

(4) state a telephone number that is answered 24 hours a day to enable the owner or operator to locate the vehicle.

(d) The mailing of a notice under Subsection (b)(2) is not required if, after the notice is attached under Subsection (b)(1), the owner or operator of the vehicle leaves the vehicle in another location where parking is unauthorized for the vehicle according to the notice.

Sec. 401.053. UNATTENDED VEHICLES ON PARKING FACILITY OF APARTMENT COMPLEX; TOWING AND STORAGE OF VEHICLES. (a) This section applies only to a parking facility serving or adjacent to an apartment complex consisting of one or more residential apartment units and any adjacent real property serving the apartment complex.

(b) The owner or operator of a vehicle may not leave unattended on a parking facility a vehicle that:

(1) obstructs a gate that is designed or intended for the use of pedestrians or vehicles;

(2) obstructs pedestrian or vehicular access to an area that is used for the placement of a garbage or refuse receptacle used in common by residents of the apartment complex;

(3) is in or obstructs a restricted parking area or parking space designated under Subchapter C, including a space designated for the use of employees or maintenance personnel of the parking facility or apartment complex;

(4) is in a tow away zone, other than a fire lane described by Section 401.051(c), that is brightly painted and is conspicuously and legibly marked with the warning "TOW AWAY ZONE" in contrasting letters at least three inches high;

(5) is a semitrailer, trailer, or truck-tractor, as defined by Section 502.001, Transportation Code, unless the owner or operator of the vehicle is permitted under the terms of a rental or lease agreement with the apartment complex to leave the unattended vehicle on the parking facility; or

(6) is leaking a fluid that presents a hazard or threat to persons or property.

(c) A parking facility owner may not have an emergency vehicle described by Section 401.051(b) towed from the parking facility.

(d) Except as provided by a contract described by Subsection (e), a parking facility owner may not have a vehicle towed from the parking facility merely because the vehicle does not display an unexpired license plate or registration insignia issued for the vehicle under Chapter 502, Transportation Code, or the vehicle registration law of another state or country.

(e) A contract provision providing for the towing from a parking facility of a vehicle that does not display an unexpired license plate or registration insignia is valid only if the provision requires the owner or operator of the vehicle to be given at least 10 days' written notice that the vehicle will be towed from the facility at the vehicle owner's or operator's expense if it is not removed from the parking facility. The notice must be:

(1) delivered in person to the owner or operator of the vehicle; or

(2) sent by certified mail, return receipt requested, to the owner or operator of the vehicle.

(f) This section may not be construed:

(1) to authorize the owner or operator of a vehicle to leave an unattended vehicle on property that is not designed or intended for the parking of vehicles; or

(2) to limit or restrict the enforcement of Chapter 683, Transportation Code.

(g) A provision of an apartment lease or rental agreement entered into or renewed on or after January 1, 2004, that is in conflict or inconsistent with this section is void and may not be enforced.

Sec. 401.054. LIMITATION ON PARKING FACILITY OWNER'S AUTHORITY TO TOW UNAUTHORIZED VEHICLE. A parking facility owner may not have an unauthorized vehicle towed from the facility except:

(1) as provided by this chapter or a municipal ordinance that complies with Section 2308.208, Occupations Code; or

(2) under the direction of a peace officer or the owner or operator of the vehicle.

SUBCHAPTER C. SIGNS PROHIBITING UNAUTHORIZED VEHICLES AND

DESIGNATING RESTRICTED AREAS

Sec. 401.101. GENERAL REQUIREMENTS FOR SIGN PROHIBITING UNAUTHORIZED VEHICLES. (a) Except as provided by Section 401.104 or 401.105, an unauthorized vehicle may not be towed under Section 401.052(a)(1) unless a sign prohibiting unauthorized vehicles on a parking facility is:

(1) facing and conspicuously visible to the driver of a vehicle that enters the facility;

(2) located:

(A) on the right or left side of each driveway or curb-cut through which a vehicle can enter the facility, including an entry from an alley abutting the facility; or

(B) at intervals along the entrance so that no entrance is farther than 25 feet from a sign if:

(i) curbs, access barriers, landscaping, or driveways do not establish definite vehicle entrances onto a parking facility from a public roadway other than an alley; and

(ii) the width of an entrance exceeds 35 feet;

(3) permanently mounted on a pole, post, permanent wall, or permanent barrier;

(4) installed on the parking facility; and

(5) installed so that the bottom edge of the sign is not lower than five feet and not higher than eight feet above ground level.

(b) Except as provided by Section 401.105, an unauthorized vehicle may be towed under Section 401.052(a)(1) only if each sign prohibiting unauthorized vehicles:

(1) is made of weather-resistant material;

(2) is at least 18 inches wide and 24 inches high;

(3) contains the international symbol for towing vehicles;

(4) contains a statement describing who may park in the parking facility and prohibiting all others;

(5) bears the words "Unauthorized Vehicles Will Be Towed at Owner's or Operator's Expense";

(6) contains a statement of the days and hours of towing enforcement; and

(7) contains a number, including the area code, of a telephone that is answered 24 hours a day to enable an owner or operator of a vehicle to locate a towed vehicle.

Sec. 401.102. COLOR, LAYOUT, AND LETTERING HEIGHT REQUIREMENTS. (a) Except as provided by Section 401.105, each sign required by this chapter must comply with the color, layout, and lettering height requirements of this section.

(b) A bright red international towing symbol, which is a solid silhouette of a tow truck towing a vehicle on a generally rectangular white background, at least four inches high, must be on the uppermost portion of a sign or on a separate sign placed immediately above the sign.

(c) The portion of the sign immediately below the international towing symbol must:

(1) in lettering at least two inches high, contain the words "Towing Enforced"; and

(2) consist of white letters on a bright red background.

(d) Except as provided by Subsection (e), the next lower portion of the sign must contain the remaining information required by Section 401.101(b) displayed in bright red letters at least one inch high on a white background.

(e) The bottommost portion of the sign must contain a telephone number required by Section 401.101(b) in lettering at least one inch high and may, if the facility owner chooses or if an applicable municipal ordinance requires, include the name and address of the storage facility to which an unauthorized vehicle will be towed. The lettering on this portion of the sign must consist of white letters on a bright red background.

Sec. 401.103. TELEPHONE NUMBER FOR LOCATING TOWED VEHICLE REQUIRED. If a parking facility owner posts a sign described by Sections 401.101 and 401.102, the owner of a vehicle that is towed from the facility under this chapter must be able to locate the vehicle by calling the telephone number on the sign.

Sec. 401.104. DESIGNATION OF RESTRICTED PARKING SPACES ON OTHERWISE UNRESTRICTED PARKING FACILITY. A parking facility owner may designate one or more spaces as restricted parking spaces on a portion of an otherwise unrestricted parking facility. Instead of installing a sign at each entrance to the parking facility as provided by Section 401.101(a)(2), an owner may place in the designated spaces a sign that prohibits unauthorized vehicles from parking in those spaces and that otherwise complies with Sections 401.101 and 401.102:

(1) at the right or left side of each entrance to a designated area or group of parking spaces located on the restricted portion of the parking facility; or

(2) at the end of a restricted parking space so that the sign, the top of which must not be higher than seven feet above the ground, is in front of a vehicle that is parked in the space with the rear of the vehicle at the entrance of the space.

Sec. 401.105. INDIVIDUAL PARKING RESTRICTIONS IN RESTRICTED AREA. (a) A parking facility owner who complies with Sections 401.101 and 401.102 may impose further specific parking restrictions in an area to which the signs apply for individual spaces by installing or painting a weather-resistant sign or notice on a curb, pole, post, permanent wall, or permanent barrier so that the sign is in front of a vehicle that is parked in the space with the rear of the vehicle at the entrance of the space.

(b) The top of the sign or notice may not be higher than seven feet above the ground.

(c) The sign or notice must include an indication that the space is reserved for a particular unit number, person, or type of person.

(d) The letters on the sign or notice under this section must be at least two inches high and must be in contrast to the color of the curb, pole, post, wall, or barrier so that the letters can be read during the day and at night. The letters are not required to be illuminated or made of reflective material.

SUBCHAPTER D. TOWING OF UNAUTHORIZED VEHICLES FROM CERTAIN PUBLIC

ROADWAY PARKING FACILITY AREAS

Sec. 401.151. TOWING OF UNAUTHORIZED VEHICLE FROM LEASED RIGHT-OF-WAY. Unless prohibited by the lease, a parking facility owner or towing company may tow an unauthorized vehicle parked in a leased area described by Section 401.002(1)(B)(i) if the owner or towing company gives notice under Section 401.052(a)(1), (2), or (3) and otherwise complies with this chapter.

Sec. 401.152. TOWING OF UNAUTHORIZED VEHICLE FROM AREA BETWEEN PARKING FACILITY AND PUBLIC ROADWAY. Unless prohibited by a municipal ordinance, a parking facility owner may have a towing company tow an unauthorized vehicle any part of which is in an area described by Section 401.002(1)(B)(ii) if notice under Section 401.052(a)(2) or (3) is given and the owner or towing company otherwise complies with this chapter.

SUBCHAPTER E. PARKING FACILITY OWNERS

Sec. 401.201. PARKING FACILITY OWNER PROHIBITED FROM RECEIVING FINANCIAL GAIN FROM TOWING COMPANY. (a) A parking facility owner may not directly or indirectly accept anything of value from a towing company in connection with the towing of a vehicle from a parking facility.

(b) A parking facility owner may not have a direct or indirect monetary interest in a towing company that for compensation tows unauthorized vehicles from a parking facility in which the parking facility owner has an interest.

(c) This section does not apply to a sign required under Section 401.101 provided by a towing company to a parking facility owner.

Sec. 401.202. LIMITATION ON LIABILITY OF PARKING FACILITY OWNER FOR TOWING OR STORAGE OF UNAUTHORIZED VEHICLE. A parking facility owner who causes the towing of an unauthorized vehicle is not liable for damages arising from the towing or storage of the vehicle if the vehicle:

(1) was towed in compliance with this chapter; and

(2) is:

(A) towed by a towing company insured against liability for property damage incurred in towing a vehicle; and

(B) stored by a vehicle storage facility insured against liability for property damage incurred in storing a vehicle.

Sec. 401.203. CIVIL LIABILITY OF PARKING FACILITY OWNER FOR VIOLATION OF CHAPTER. (a) A parking facility owner who violates this chapter is liable to the owner or operator of the vehicle that is the subject of the violation for:

(1) damages arising from the towing or storage of the vehicle; and

(2) towing or storage fees assessed in connection with the vehicle's towing or storage.

(b) A vehicle's owner or operator is not required to prove negligence of a parking facility owner to recover under Subsection (a).

(c) A 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 plus three times the amount of fees assessed in the vehicle's towing or storage.

Sec. 401.204. VIOLATION OF CHAPTER; INJUNCTION. A violation of this chapter may be enjoined under Subchapter E, Chapter 17, Business & Commerce Code.

Sec. 401.205. MINOR SIGN OR LETTERING HEIGHT VARIATIONS. A minor variation of a required or minimum height of a sign or lettering is not a violation of this chapter.

ARTICLE 3. CONFORMING AMENDMENTS

SECTION 3.01. Section 2158.001(2), Occupations Code, is amended to read as follows:

(2) "Parking facility," "parking facility owner," and "vehicle" have the meanings assigned by Section 401.002, Property [2308.002, Occupations] Code.

SECTION 3.02. Section 503.096(a), Transportation Code, is amended to read as follows:

(a) If a person is engaged in business as a dealer in violation of Section 503.021, a peace officer may cause a vehicle that is being offered for sale by the person to be towed from the location where the vehicle is being offered for sale and stored at a vehicle storage facility, as defined by Section 2303.002 [2308.002], Occupations Code.

SECTION 3.03. Section 683.001(2), Transportation Code, is amended to read as follows:

(2) "Garagekeeper" means an owner or operator of a storage facility or vehicle storage facility.

SECTION 3.04. Section 683.003, Transportation Code, is amended by adding Subsection (c) to read as follows:

(c) To the extent of any conflict between this chapter and Subchapters D and E, Chapter 2303, Occupations Code, those subchapters control for a vehicle stored in a vehicle storage facility.

ARTICLE 4. REPEALERS

SECTION 4.01. The following provisions of the Occupations Code are repealed:

(1) Sections 2303.056(c) and (d);

(2) Sections 2303.1015 and 2303.1016;

(3) Section 2303.161;

(4) Sections 2308.002(1-a), (1-b), (1-c), (7-a), and (9);

(5) Sections 2308.103, 2308.104, and 2308.105;

(6) Sections 2308.1521, 2308.153, 2308.154, 2308.155, 2308.1551, 2308.1555, and 2308.1556;

(7) Section 2308.157;

(8) The heading to Subchapter F, Chapter 2308;

(9) Sections 2308.251, 2308.252, 2308.253, and 2308.254;

(10) Sections 2308.2555, 2308.2565, and 2308.257;

(11) Subchapter G, Chapter 2308;

(12) Sections 2308.351 and 2308.352;

(13) Section 2308.401;

(14) Section 2308.403;

(15) Section 2308.451;

(16) Sections 2308.454 and 2308.455; and

(17) Sections 2308.458(b-2) and (c-1).

ARTICLE 5. TRANSITIONS; EFFECTIVE DATE

SECTION 5.01. (a) The changes in law made by this Act do not affect the validity of a proceeding pending before a court or other governmental entity on the effective date of this Act.

(b) An offense or other violation of law committed before the effective date of this Act is governed by the law in effect when the offense or violation was committed, and the former law is continued in effect for that purpose. For purposes of this subsection, an offense or violation was committed before the effective date of this Act if any element of the offense or violation occurred before that date.

(c) On the effective date of this Act:

(1) a license or permit issued under former Section 2303.1015, 2303.1016, 2308.1521, 2308.1551, 2308.1555, or 2308.1556, Occupations Code, expires; and

(2) the term of the booting company representative member of the advisory board under Section 2308.051, Occupations Code, expires.

(d) Except as otherwise provided by this section, the changes in law made by this Act applicable to the storage of a vehicle by a vehicle storage facility under Chapter 2303, Occupations Code, as amended by this Act, apply only to a vehicle accepted for storage by a vehicle storage facility on or after the effective date of this Act. A vehicle accepted for storage by a vehicle storage facility before the effective date of this Act is governed by the law in effect at the time the vehicle was accepted, and the former law is continued in effect for that purpose.

(e) Except as otherwise provided by this section, the changes in law made by this Act applicable to the towing or booting of a vehicle under Chapter 2308, Occupations Code, as amended by this Act, and Chapter 401, Property Code, as added by this Act, apply only to the towing or booting of a vehicle initiated on or after the effective date of this Act. The towing or booting of a vehicle initiated before the effective date of this Act is governed by the law in effect at the time the towing or booting was initiated, and the former law is continued in effect for that purpose.

(f) Sections 2303.004 and 2308.005, Occupations Code, as added by this Act, apply only to a conflict between Chapter 2303 or 2308, Occupations Code, and a municipal ordinance or charter or a contract that arises on or after the effective date of this Act. A conflict that arises before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

(g) Sections 2303.157(b), Occupations Code, as amended by this Act, and 2303.157(b-1), Occupations Code, as added by this Act, apply only to an abandoned vehicle purchased on or after the effective date of this Act. An abandoned vehicle purchased before the effective date of this Act is governed by the law in effect on the date the vehicle was purchased, and the former law is continued in effect for that purpose.

(h) Section 2308.052(d), Occupations Code, as added by this Act, applies only to an absence by a member from a meeting of the Towing and Storage Advisory Board that occurs on or after the effective date of this Act. An absence by a member from a meeting of the Towing and Storage Advisory Board that occurs before the effective date of this Act is governed by the law in effect on the date the absence occurred, and the former law is continued in effect for that purpose.

(i) Section 2308.156(b), Occupations Code, as added by this Act, applies only to the transfer of a license due to the death or disability of a license holder on or after the effective date of this Act. The transfer of a license due to the death or disability of a license holder before the effective date of this Act is governed by the law in effect on the date the license holder dies or becomes disabled, and the former law is continued in effect for that purpose.

(j) Sections 2308.163, 2308.173, and 2308.183, Occupations Code, as added by this Act, apply only to the renewal of a license issued on or after September 1, 2018. The renewal of a license issued before September 1, 2018, is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose.

(k) The changes in law made by this Act to Section 2308.255, Occupations Code, do not apply to the booting of a vehicle under a standing written agreement between a booting company and a parking facility owner entered into before the effective date of this Act. The booting of a vehicle under a standing written agreement entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5.02. This Act takes effect September 1, 2017.