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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of motor vehicle towing, booting, and |
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storage; authorizing administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2303, Occupations Code, is |
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amended by adding Section 2303.1601 to read as follows: |
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Sec. 2303.1601. RELEASE OF PERSONAL PROPERTY AND COMMERCIAL |
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CARGO. (a) In this section, "commercial cargo" means any property |
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in or on a vehicle that has been transported in interstate or |
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intrastate commerce. |
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(b) The operator of a vehicle storage facility shall allow a |
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person who establishes ownership or right of possession or control |
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of a vehicle stored at the facility, or an authorized |
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representative of the person, to remove at no cost any personal |
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property from the vehicle that may be readily detached from the |
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vehicle. |
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(c) The operator of a vehicle storage facility shall allow a |
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person who demonstrates ownership or right of possession or control |
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of a vehicle stored at the facility or of commercial cargo contained |
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in or on a vehicle stored at the facility, or any authorized |
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representative of the person, to remove any commercial cargo |
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identified or described by a bill of lading, shipping manifest, |
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shipping invoice, or similar document. |
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SECTION 2. Chapter 2303, Occupations Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. TRANSFER OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO |
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BODY REPAIR SHOP |
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Sec. 2303.201. DEFINITIONS. In this subchapter: |
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(1) "Auto body repair shop" means a shop specializing |
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in the repair of bodies of damaged vehicles. |
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(2) "Auto repair shop" means a shop specializing in |
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the mechanical repair of vehicles. |
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(3) "Incident management tow" has the meaning assigned |
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by Section 2308.002. |
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Sec. 2303.202. APPLICABILITY. This subchapter applies only |
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to the operator or employee of a vehicle storage facility licensed |
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under this chapter. |
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Sec. 2303.203. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER. |
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(a) An operator or employee of a vehicle storage facility may |
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transfer or cause the transfer of a vehicle involved in an incident |
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management tow from a vehicle storage facility to an auto repair or |
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auto body repair shop only if: |
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(1) the facility operator or employee gives the |
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vehicle owner or operator written notice of the transfer on the form |
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developed under Section 2303.204; and |
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(2) the vehicle owner or operator: |
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(A) consents to the transfer; and |
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(B) signs the form. |
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(b) A vehicle storage facility operator shall retain any |
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records of the storage and release of a vehicle involved in an |
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incident management tow, including a copy of the form signed under |
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Subsection (a)(2). |
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Sec. 2303.204. FORM FOR NOTICE REGARDING TRANSFER. (a) The |
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department shall develop a form to provide notice to an owner or |
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operator of a vehicle involved in an incident management tow |
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regarding the transfer of the vehicle from a vehicle storage |
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facility to an auto repair or auto body repair shop. |
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(b) The form must include statements that: |
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(1) auto repair and auto body repair shops are not |
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regulated by the state; and |
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(2) the vehicle owner or operator: |
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(A) is not required to transfer the vehicle from |
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the vehicle storage facility to an auto repair or auto body repair |
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shop; |
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(B) will be subject to payment of unregulated |
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fees and charges to secure release of the vehicle from an auto |
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repair or auto body repair shop if the owner or operator consents to |
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the transfer; and |
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(C) may file a complaint with the department if |
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the vehicle is transferred without the owner's or operator's |
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signature on the form. |
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(c) In addition to the statements required by Subsection |
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(b), the department may include on the form under this section any |
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information the department determines is necessary to enhance |
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consumer protection relating to incident management tows. |
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Sec. 2303.205. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER |
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AND REPAIR SHOP; ORDER FOR REFUND. (a) An operator or employee of a |
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vehicle storage facility may not directly or indirectly accept |
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money or anything of value in connection with the transfer of a |
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vehicle that does not comply with Section 2303.203(a). |
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(b) The executive director or commission may order an |
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operator or employee of a vehicle storage facility who accepts |
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money or anything of value as described by Subsection (a) to pay to |
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the vehicle owner or operator an amount equal to the amount of the |
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value received. |
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(c) The executive director or commission may order an auto |
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repair or auto body repair shop that gives money or anything of |
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value to an operator or employee of a vehicle storage facility in |
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order to induce the transfer of a vehicle involved in an incident |
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management tow to the auto repair or auto body repair shop to refund |
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to the vehicle owner or operator any amount charged by the repair |
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shop in connection with the transfer or storage of the vehicle. |
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Sec. 2303.206. GROUNDS FOR REVOCATION OF LICENSE. In |
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addition to assessing an administrative penalty under Chapter 51 or |
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this chapter, the executive director or commission may revoke a |
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license issued under this chapter if, after notice and hearing, the |
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license holder is found to be in violation of this subchapter. |
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Sec. 2303.207. MAXIMUM PENALTY; CONTINUING VIOLATION. (a) |
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Notwithstanding any other provision of Chapter 51 or this chapter, |
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the amount of an administrative penalty that may be assessed for a |
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violation of this subchapter may not exceed $10,000 per day for each |
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violation. |
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(b) Each day of a continuing violation of this subchapter is |
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a separate violation. |
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SECTION 3. Subchapter G, Chapter 2303, Occupations Code, is |
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amended by adding Section 2303.306 to read as follows: |
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Sec. 2303.306. SURETY BOND REQUIRED. (a) The commission or |
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executive director may require the holder of a license issued under |
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this chapter who commits multiple violations of this chapter or a |
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rule adopted under this chapter to obtain a surety bond. |
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(b) The commission by rule shall establish the conditions |
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and amount of a surety bond required under Subsection (a) based on |
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the nature, extent, and seriousness of the violations. |
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(c) A surety bond required under Subsection (a) must: |
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(1) be issued by a surety authorized to conduct |
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business in this state; |
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(2) comply with the applicable requirements of the |
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Insurance Code; |
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(3) be payable to the executive director on behalf of |
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persons who are injured as a result of the license holder's |
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violation of Chapter 51 or this chapter; |
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(4) remain in effect for as long as required by the |
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department; and |
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(5) be in the form prescribed by the commission. |
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(d) A surety that issues a bond required by Subsection (a) |
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shall provide written notice to the department of the surety's |
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intent to cancel the bond not later than the 60th day before the |
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date the surety cancels the bond. |
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SECTION 4. Chapter 2308, Occupations Code, is amended by |
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adding Subchapter E-1 to read as follows: |
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SUBCHAPTER E-1. TOWING OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO |
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BODY REPAIR SHOP |
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Sec. 2308.231. DEFINITIONS. In this subchapter, "auto body |
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repair shop" and "auto repair shop" have the meanings assigned by |
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Section 2303.201. |
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Sec. 2308.232. APPLICABILITY. This subchapter applies only |
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to a towing company or operator licensed under this chapter. |
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Sec. 2308.233. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER. |
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(a) A towing company or operator may tow or cause the towing of a |
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vehicle involved in an incident management tow to an auto repair or |
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auto body repair shop only if: |
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(1) the towing company or operator gives the vehicle |
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owner or operator written notice of the transfer on the form |
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developed under Section 2308.234; and |
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(2) the vehicle owner or operator: |
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(A) consents to the transfer; and |
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(B) signs the form. |
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(b) A towing company shall retain any records of the storage |
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and release of a vehicle involved in an incident management tow, |
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including a copy of the form signed under Subsection (a)(2). |
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Sec. 2308.234. FORM FOR NOTICE REGARDING TRANSFER. (a) The |
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department shall develop a form to provide notice to an owner or |
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operator of a vehicle involved in an incident management tow |
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regarding the towing of the vehicle to an auto repair or auto body |
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repair shop. |
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(b) The form must include statements that: |
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(1) auto repair and auto body repair shops are not |
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regulated by the state; and |
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(2) the vehicle owner or operator: |
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(A) is not required to have the vehicle towed to |
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an auto repair or auto body repair shop; |
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(B) will be subject to payment of unregulated |
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fees and charges to secure release of the vehicle from an auto |
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repair or auto body repair shop if the owner or operator consents to |
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the tow; and |
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(C) may file a complaint with the department if |
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the vehicle is towed without the owner's or operator's signature on |
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the form. |
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(c) In addition to the statements required by Subsection |
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(b), the department may include on the form under this section any |
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information the department determines is necessary to enhance |
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consumer protection relating to incident management tows. |
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Sec. 2308.235. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER |
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AND REPAIR SHOP; ORDER FOR REFUND. (a) The holder of a license |
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issued under this chapter may not directly or indirectly accept |
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money or anything of value in connection with the towing of a |
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vehicle that does not comply with the requirements of Section |
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2308.233(a). |
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(b) The executive director or commission may order the |
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holder of a license issued under this chapter who accepts money or |
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anything of value as described by Subsection (a) to pay to the |
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vehicle owner or operator an amount equal to the amount of the value |
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received. |
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(c) The executive director or commission may order an auto |
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repair or auto body repair shop that gives money or anything of |
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value to the holder of a license issued under this chapter in order |
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to induce the license holder to tow a vehicle involved in an |
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incident management tow to an auto repair or auto body repair shop |
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to refund to the vehicle owner or operator any amount charged by the |
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repair shop in connection with the tow or storage of the vehicle. |
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Sec. 2308.236. REQUEST FOR REMOVAL FROM TOW ROTATION LIST. |
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The commission or executive director may: |
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(1) report a violation of this subchapter to a |
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sheriff's office that maintains a list of towing companies under |
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Section 2308.209; and |
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(2) request that a towing company that violates this |
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subchapter be removed from the list maintained by the sheriff's |
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office. |
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Sec. 2308.237. GROUNDS FOR REVOCATION OF LICENSE. In |
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addition to assessing an administrative penalty under Chapter 51 or |
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this chapter, the executive director or commission may revoke a |
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license issued under this chapter if, after notice and hearing, the |
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license holder is found to be in violation of this subchapter. |
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Sec. 2308.238. MAXIMUM PENALTY; CONTINUING VIOLATION. (a) |
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Notwithstanding any other provision of Chapter 51 or this chapter, |
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the amount of an administrative penalty that may be assessed for a |
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violation of this subchapter may not exceed $10,000 per day for each |
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violation. |
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(b) Each day of a continuing violation of this subchapter is |
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a separate violation. |
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SECTION 5. Section 2308.455, Occupations Code, is amended |
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to read as follows: |
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Sec. 2308.455. CONTENTS OF NOTICE. The notice under |
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Section 2308.454 must include: |
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(1) a statement of: |
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(A) the person's right to submit a request within |
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30 [14] days for a court hearing to determine whether probable cause |
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existed to remove, or install a boot on, the vehicle; |
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(B) the information that a request for a hearing |
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must contain; |
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(C) any filing fee for the hearing; and |
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(D) the person's right to request a hearing in |
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any justice court in: |
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(i) the county from which the vehicle was |
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towed; or |
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(ii) for booted vehicles, the county in |
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which the parking facility is located; |
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(2) the name, address, and telephone number of the |
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towing company that removed the vehicle or the booting company that |
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booted the vehicle; |
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(3) the name, address, telephone number, and county of |
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the vehicle storage facility in which the vehicle was placed; |
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(4) the name, street address including city, state, |
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and zip code, and telephone number of the person, parking facility |
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owner, or law enforcement agency that authorized the removal of the |
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vehicle; and |
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(5) the name, address, and telephone number of each |
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justice court in the county from which the vehicle was towed or, for |
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booted vehicles, the county in which the parking facility is |
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located, or the address of an Internet website maintained by the |
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Office of Court Administration of the Texas Judicial System that |
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contains the name, address, and telephone number of each justice |
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court in that county. |
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SECTION 6. Sections 2308.456(a), (c), and (c-1), |
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Occupations Code, are amended to read as follows: |
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(a) Except as provided by Subsections (c) and (c-1), a |
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person entitled to a hearing under this chapter must deliver a |
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written request for the hearing to the court before the 30th [14th] |
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day after the date the vehicle was removed and placed in the vehicle |
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storage facility or booted, excluding Saturdays, Sundays, and legal |
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holidays. |
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(c) If notice was not given under Section 2308.454, the |
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30-day [14-day] deadline for requesting a hearing under Subsection |
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(a) does not apply, and the owner or operator of the vehicle may |
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deliver a written request for a hearing at any time. |
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(c-1) The 30-day [14-day] period for requesting a hearing |
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under Subsection (a) does not begin until the date on which the |
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towing company or vehicle storage facility provides to the vehicle |
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owner or operator the information necessary for the vehicle owner |
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or operator to complete the material for the request for hearing |
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required under Subsections (b)(2) through (6). |
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SECTION 7. Subchapter K, Chapter 2308, Occupations Code, is |
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amended by adding Section 2308.506 to read as follows: |
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Sec. 2308.506. SURETY BOND REQUIRED. (a) The commission or |
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executive director may require the holder of a license issued under |
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this chapter who commits multiple violations of this chapter or a |
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rule adopted under this chapter to obtain a surety bond. |
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(b) The commission by rule shall establish the conditions |
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and amount of a surety bond required under Subsection (a) based on |
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the nature, extent, and seriousness of the violations. |
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(c) A surety bond required under Subsection (a) must: |
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(1) be issued by a surety authorized to conduct |
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business in this state; |
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(2) comply with the applicable requirements of the |
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Insurance Code; |
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(3) be payable to the executive director on behalf of |
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persons who are injured as a result of the license holder's |
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violation of Chapter 51 or this chapter; |
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(4) remain in effect for as long as required by the |
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department; and |
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(5) be in the form prescribed by the commission. |
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(d) A surety that issues a bond required by Subsection (a) |
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shall provide written notice to the department of the surety's |
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intent to cancel the bond not later than the 60th day before the |
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date the surety cancels the bond. |
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SECTION 8. As soon as practicable after the effective date |
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of this Act, the Texas Department of Licensing and Regulation shall |
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develop any form and the Texas Commission of Licensing and |
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Regulation shall adopt any rules to implement the changes in law |
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made by this Act. |
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SECTION 9. Sections 2308.455 and 2308.456, Occupations |
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Code, as amended by this Act, apply only to a notice or a request for |
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a hearing in connection with the towing or booting of a vehicle on |
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or after the effective date of this Act. A notice or a request for a |
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hearing in connection with the towing or booting of a vehicle before |
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the effective date of this Act is governed by the law in effect when |
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the vehicle was towed or booted, and the former law is continued in |
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effect for that purpose. |
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SECTION 10. This Act takes effect September 1, 2019. |