88R7046 DRS-D

By: King of Uvalde H.B. No. 3478

A BILL TO BE ENTITLED

AN ACT

relating to mediation of certain fee disputes between towing companies and motor carriers.

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

SECTION 1. Subchapter D, Chapter 2303, Occupations Code, is amended by adding Section 2303.1541 to read as follows:

Sec. 2303.1541. SALE OR DISPOSAL OF VEHICLE PENDING MEDIATION PROHIBITED. A vehicle storage facility operator who receives notice under Section 2308.554(a)(2) or Section 2308.560(c) may not sell at a public sale or otherwise dispose of the vehicle that is the subject of the notice until the operator receives notice under Section 2308.560 that:

(1) the mediation has been resolved; and

(2) if a civil action was filed by a party after the end of the mediation process, the civil action has concluded.

SECTION 2. Chapter 2308, Occupations Code, is amended by adding Subchapter L to read as follows:

SUBCHAPTER L. FEE DISPUTE MEDIATION

BETWEEN TOWING COMPANY AND MOTOR CARRIER

Sec. 2308.551. DEFINITION. In this subchapter, "motor carrier" has the meaning assigned by Section 643.001, Transportation Code.

Sec. 2308.552. FEE DISPUTE MEDIATION REQUIRED ON MOTOR CARRIER REQUEST. (a) A motor carrier may request mediation under this subchapter in a dispute with a towing company relating to an incident management tow for which towing and recovery fees exceed $20,000.

(b) A towing company must participate in mediation requested by a motor carrier under this subchapter.

Sec. 2308.553. REQUEST FOR MEDIATION. (a) A motor carrier may submit a request in the manner prescribed by the department not later than the 30th day after the later of the date the motor carrier:

(1) pays the towing and recovery charges; or

(2) receives notice from a vehicle storage facility under Section 2303.151.

(b) A motor carrier that does not timely submit a request under Subsection (a) waives the right to mediation under this subchapter.

Sec. 2308.554. NOTICE OF REQUEST. (a) On receipt of a request for mediation under this subchapter, the department shall give notice that the motor carrier has requested mediation to:

(1) the towing company that towed the vehicle that is the subject of the request for mediation; and

(2) the operator of the vehicle storage facility storing the vehicle that is the subject of the request for mediation.

(b) A vehicle storage facility operator who receives notice under this section:

(1) may continue to charge a daily storage fee authorized by Section 2303.155(b)(3); and

(2) may not sell the vehicle at a public sale or otherwise dispose of the vehicle under Subchapter D, Chapter 2303, before the operator receives notice under Section 2308.560 that:

(A) the mediation has been resolved; and

(B) if a civil action was filed by a party after the end of the mediation process, the civil action has concluded.

Sec. 2308.555. MEDIATOR. (a) A person may not act as a mediator in the mediation program unless the person is qualified as an impartial third party under Section 154.052, Civil Practice and Remedies Code.

(b) The parties by agreement shall select and compensate a mediator from the list maintained by the department, except that the parties by written agreement may select a mediator not on the department's list.

(c) If the parties do not agree on a mediator by the 10th day after the date the department gives notice to the towing company of the request for mediation:

(1) the motor carrier shall notify the department that a mediator has not been selected; and

(2) the department shall select a mediator from the department's list of qualified mediators based on convenience to the location of the towing company.

(d) Sections 154.053 and 154.055, Civil Practice and Remedies Code, apply to a mediator under this subchapter.

Sec. 2308.556. LOCATION AND SCHEDULE OF MEDIATION. (a) The parties by agreement shall select a venue and schedule for mediation under this subchapter. If the parties are unable to agree on a venue and schedule, the mediator shall select a venue and schedule.

(b) Mediation must be completed not later than the 30th day after the date the department orders the parties to mediate, except that the deadline may be extended by the department at the request of all parties.

Sec. 2308.557. APPLICABLE LAW. Section 154.073, Civil Practice and Remedies Code, applies to mediation under this subchapter.

Sec. 2308.558. COSTS OF MEDIATION. (a) The fee for a mediator employed under this subchapter may not exceed:

(1) $750 per party, for a half-day mediation; or

(2) $1,500 per party, for a full-day mediation.

(b) The department is not liable for compensation paid or to be paid to a mediator employed under this subchapter.

(c) Without regard to the outcome of mediation or subsequent regulatory or judicial proceedings, costs incurred by a party in mediation required by this subchapter may not be imposed on the opposing party.

Sec. 2308.559. MATTERS CONSIDERED IN MEDIATION; AGREED RESOLUTION. (a) In a mediation under this subchapter, the parties shall evaluate whether the amount charged by the towing company is excessive. If the parties determine that the amount charged is excessive, the parties shall determine the appropriate charges for services rendered.

(b) A mediator may not impose the mediator's own judgment on the issues for that of the parties.

Sec. 2308.560. OUTCOME OF MEDIATION; CIVIL ACTION. (a) Not later than the 15th day after the date the mediation concludes, the mediator shall report to the department whether mediation resolves the dispute. The department shall notify the operator of the vehicle storage facility where the vehicle that is the subject of the mediation is being stored of the outcome of the mediation.

(b) If mediation does not resolve the dispute, either party may file a civil action. A party in a mediation under this subchapter may not bring a civil action before the conclusion of the mediation process under this subchapter. This subsection does not prohibit a motor carrier from filing a request for a hearing under Subchapter J before the conclusion of mediation.

(c) If a party in mediation brings a civil action after the conclusion of the mediation process, the motor carrier shall give notice to the operator of the vehicle storage facility storing the vehicle that is the subject of the action of the initiation and conclusion of the action. Notice under this subsection must be given:

(1) on filing the petition with the court, if the motor carrier is the party filing the action; or

(2) on service of citation on the motor carrier.

(d) A vehicle storage facility operator who receives notice of a civil action from a motor carrier under this section:

(1) may continue to charge a daily storage fee authorized by Section 2303.155(b)(3); and

(2) may not sell the vehicle at a public sale or otherwise dispose of the vehicle under Subchapter D, Chapter 2303, before the motor carrier gives the operator notice of the conclusion of the action.

Sec. 2308.561. FORMS AND PROCEDURES; REQUEST PORTAL. The department shall:

(1) adopt forms and procedures necessary to administer this subchapter;

(2) establish a portal on the department's Internet website through which a request to participate in the mediation program may be submitted; and

(3) maintain a list of qualified mediators on the department's Internet website.

SECTION 3. This Act takes effect September 1, 2023.