Texas 2009 81st Regular

Texas House Bill HB2571 Enrolled / Bill

Filed 02/01/2025

Download
.pdf .doc .html
                    H.B. No. 2571


 AN ACT
 relating to the licensing and regulation of towing companies and
 vehicle storage facilities; providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 2308.002, Occupations Code, is amended
 by amending Subdivisions (3), (6), and (8) and adding Subdivisions
 (5-a), (7-a), and (8-a) to read as follows:
 (3) "Consent tow" means any tow of a motor vehicle in
 which the tow truck is summoned [initiated] by the owner or operator
 of the vehicle or by a person who has possession, custody, or
 control of the vehicle. The term does not include an incident
 management tow or a private property [a] tow [of a motor vehicle
 initiated by a peace officer investigating a traffic accident or a
 traffic incident that involves the vehicle].
 (5-a)  "Incident management tow" means any tow of a
 vehicle in which the tow truck is summoned because of a traffic
 accident or to an incident.
 (6) "Nonconsent tow" means any tow of a motor vehicle
 that is not a consent tow, including:
 (A) an incident management tow; and
 (B) a private property tow.
 (7-a)  "Parking facility authorized agent" means an
 employee or agent of a parking facility owner with the authority to:
 (A)  authorize the removal of a vehicle from the
 parking facility on behalf of the parking facility owner; and
 (B)  accept service on behalf of the parking
 facility owner of a notice of hearing requested under this chapter.
 (8) "Parking facility owner" means:
 (A) an individual, corporation, partnership,
 limited partnership, limited liability company, association,
 trust, or other legal entity owning or operating [owner or operator
 of] a parking facility[, including a lessee, employee, or agent of
 an owner or operator];
 (B) a property owners' association having
 control under a dedicatory instrument, as that term is defined in
 Section 202.001, Property Code, over assigned or unassigned parking
 areas; or
 (C) a property owner having an exclusive right
 under a dedicatory instrument, as that term is defined in Section
 202.001, Property Code, to use a parking space.
 (8-a)  "Private property tow" means any tow of a
 vehicle authorized by a parking facility owner without the consent
 of the owner or operator of the vehicle.
 SECTION 2. Section 2308.057(a), Occupations Code, is
 amended to read as follows:
 (a) The commission shall adopt rules for permitting tow
 trucks and licensing towing operators and towing companies,
 including rules for denial of applications and permits if the
 applicant, a partner, principal, officer, or general manager of the
 applicant, or other license or permit holder has:
 (1)  a criminal conviction, or has pleaded guilty or
 nolo contendere to an offense, before the date of the application,
 for:
 (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 or permit bond in an
 amount established by the commission;
 (4)  knowingly submitted false or incomplete
 information on the application; or
 (5)  filed an application to permit a tow truck
 previously permitted by a license or permit holder.
 SECTION 3. Subchapter B, Chapter 2308, Occupations Code, is
 amended by adding Section 2308.0575 to read as follows:
 Sec. 2308.0575.  RULES ON FEES; CONTRACT FOR STUDY;
 CONFIDENTIAL INFORMATION.  (a)  To protect the public health and
 safety, the commission by rule shall establish:
 (1)  the fees that may be charged in connection with a
 private property tow;
 (2)  the maximum amount that may be charged for fees,
 other than tow fees, that may be assessed by a towing company in
 connection with a private property tow; and
 (3)  a maximum amount that may be charged for the
 following private property tows:
 (A)  standard light-duty tows of motor vehicles
 with a gross weight rating of 10,000 pounds or less;
 (B)  medium-duty tows of motor vehicles with a
 gross weight rating of more than 10,000 pounds, but less than 25,000
 pounds; and
 (C)  heavy-duty tows of motor vehicles with a
 gross weight rating that exceeds 25,000 pounds.
 (b)  In adopting rules under Subsection (a), the commission
 shall contract for a study that:
 (1)  examines towing fee studies conducted by
 municipalities in this state; and
 (2)  analyzes the cost of towing services by company,
 the consumer price index, the geographic area, and individual cost
 components.
 (c)  The commission may structure the maximum amounts that
 may be charged for private property tows based on hourly or flat
 fees or by geographic location.
 (d)  The commission shall maintain the confidentiality of
 information contained in a study conducted under this section that
 is claimed to be confidential for competitive purposes and may not
 release information that identifies a person or company. The
 confidential information is exempt from disclosure under Chapter
 552, Government Code.
 (e)  To protect the confidentiality of the information, the
 commission shall aggregate the information to the maximum extent
 possible considering the purpose of the study.
 (f)  The department shall contract to conduct a study on
 private property towing fees under this section at least once every
 two years.
 SECTION 4. Section 2308.060, Occupations Code, is amended
 to read as follows:
 Sec. 2308.060. POWERS AND DUTIES OF ADVISORY BOARD. The
 advisory board shall provide advice and recommendations to the
 department on technical matters relevant to the administration and
 enforcement of this chapter, including examination content,
 licensing standards, [and] continuing education requirements, and
 maximum amounts that may be charged for fees related to private
 property tows.
 SECTION 5. Section 2308.202, Occupations Code, is amended
 to read as follows:
 Sec. 2308.202. REGULATION BY POLITICAL SUBDIVISIONS OF FEES
 FOR NONCONSENT TOWS. The governing body of a political subdivision
 may regulate the fees that may be charged or collected in connection
 with a nonconsent tow originating in the territory of the political
 subdivision if the private property tow fees:
 (1) are authorized by commission rule; and
 (2)  do not exceed the maximum amount authorized by
 commission rule.
 SECTION 6. Section 2308.204, Occupations Code, is amended
 to read as follows:
 Sec. 2308.204. FEES FOR PRIVATE PROPERTY [NONCONSENT] TOWS
 IN OTHER AREAS. [(a)] In an area in which no political subdivision
 regulates the fees that may be charged or collected in connection
 with [for] a private property [nonconsent] tow from private
 property, a towing company may charge and collect fees [a fee] for
 the tow of a motor vehicle [from private property] in an amount not
 to exceed the maximum amount authorized by commission rule [an
 amount equal to 150 percent of the fee that the towing company would
 have been authorized to charge for a nonconsent tow made at the
 request of a peace officer of the political subdivision in which the
 private property is located].
 [(b)     A towing company may charge and collect a fee for the
 tow of a vehicle, with a gross vehicle weight rating in excess of
 26,000 pounds, from private property in an amount not to exceed an
 amount equal to 125 percent of the fee that the towing company would
 have been authorized to charge for a nonconsent tow made at the
 request of a peace officer of the political subdivision in which the
 private property is located.]
 SECTION 7. Section 2308.206, Occupations Code, is amended
 by adding Subsections (f) and (g) to read as follows:
 (f)  A license or permit holder may not charge a fee related
 to a nonconsent tow that is not listed in the schedule most recently
 submitted to the department under this section.
 (g)  The department may require a license or permit holder
 that has violated Subsection (e) or (f) to reimburse the vehicle
 owner or operator for the charges.
 SECTION 8. Section 2308.208, Occupations Code, is amended
 to read as follows:
 Sec. 2308.208. MUNICIPAL OR COUNTY ORDINANCE REGULATING
 UNAUTHORIZED VEHICLES AND TOWING OF MOTOR VEHICLES. The governing
 body of a [A] municipality or the commissioners court of a county
 may adopt an ordinance that is identical to this chapter or that
 imposes additional requirements that exceed the minimum standards
 of this chapter but may not adopt an ordinance conflicting with this
 chapter.
 SECTION 9. Section 2308.252(a), Occupations Code, is
 amended to read as follows:
 (a) A parking facility owner may, without the consent of the
 owner or operator of an unauthorized vehicle, cause the vehicle and
 any property on or in the vehicle to be removed and stored at a
 vehicle storage facility at the vehicle owner's or operator's
 expense if:
 (1) signs that comply with Subchapter G prohibiting
 unauthorized vehicles are located on the parking facility at the
 time of towing and for the preceding 24 hours and remain installed
 at the time of towing;
 (2) the owner or operator of the vehicle has received
 actual notice from the parking facility owner that the vehicle will
 be towed at the vehicle owner's or operator's expense if it is in or
 not removed from an unauthorized space;
 (3) the parking facility owner gives notice to the
 owner or operator of the vehicle under Subsection (b); or
 (4) 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 or
 2308.253; or
 (B) in or obstructing a portion of a paved
 driveway or abutting public roadway used for entering or exiting
 the facility.
 SECTION 10. Section 2308.255(a), Occupations Code, is
 amended to read as follows:
 (a) A towing company that is insured as provided by
 Subsection (c) may, without the consent of an owner or operator of
 an unauthorized vehicle, remove and store the vehicle at a vehicle
 storage facility at the expense of the owner or operator of the
 vehicle if:
 (1) the towing company has received written
 verification from the parking facility owner that:
 (A) the parking facility owner has installed the
 signs required by Section 2308.252(a)(1); or
 (B) the owner or operator received notice under
 Section 2308.252(a)(2) or the parking facility owner gave notice
 complying with Section 2308.252(a)(3); or
 (2) 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; or
 (B) in or obstructing a portion of a paved
 driveway or abutting public roadway used for entering or exiting
 the facility and the removal is approved by a peace officer.
 SECTION 11. Section 2308.256(a), Occupations Code, is
 amended to read as follows:
 (a) A vehicle storage facility accepting a vehicle that is
 towed under this chapter shall within two hours after receiving the
 vehicle report to the police department of the municipality from
 [in] which the vehicle was towed [parking facility is located], or,
 if the vehicle was towed from a location that [parking facility] is
 not [located] in a municipality with [having] a police department,
 to the sheriff of the county from [in] which the vehicle was towed
 [parking facility is located]:
 (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 12. Section 2308.404(c), Occupations Code, is
 amended to read as follows:
 (c) A towing company or parking facility owner who
 intentionally, knowingly, or recklessly violates this chapter is
 liable to the owner or operator of the vehicle that is the subject
 of the violation for $1,000 [$300] plus three times the amount of
 fees assessed in the vehicle's removal, towing, or storage.
 SECTION 13. Section 2308.405, Occupations Code, is amended
 to read as follows:
 Sec. 2308.405. CRIMINAL PENALTY [VIOLATION OF CHAPTER;
 FINE]. A person commits an offense if the person violates
 [violation of] this chapter. An offense under this section is a
 misdemeanor punishable by a fine of not less than $500 or more than
 $1,500 unless it is shown on trial of the offense that the person
 knowingly or intentionally violated this chapter, in which event
 the offense is a Class B misdemeanor.
 SECTION 14. Section 2308.451, Occupations Code, is amended
 by amending Subsection (b) and adding Subsection (c) to read as
 follows:
 (b) If in a hearing held under this chapter the court does
 not find that a person or law enforcement agency authorized, with
 probable cause, the removal and storage in a vehicle storage
 facility of a vehicle, the towing company, vehicle storage
 facility, or parking facility owner [person] or law enforcement
 agency that authorized the removal shall:
 (1) pay the costs of the removal and storage; or
 (2) reimburse the owner or operator for the cost of the
 removal and storage paid by the owner or operator.
 (c)  If, in a hearing held under this chapter, regardless of
 whether the court finds that there was probable cause for the
 removal and storage of a vehicle, the court finds that the towing
 charge collected exceeded fees regulated by a political subdivision
 or authorized by this chapter or Chapter 2303, the towing company
 shall reimburse the owner or operator of the vehicle an amount equal
 to the overcharge.
 SECTION 15. Section 2308.453, Occupations Code, is amended
 to read as follows:
 Sec. 2308.453. JURISDICTION. A hearing under this chapter
 shall be in the justice court having jurisdiction in the precinct
 from [in] which the motor vehicle was towed [storage facility is
 located].
 SECTION 16. Section 2308.454, Occupations Code, is amended
 by adding Subsection (c) to read as follows:
 (c)  If the towing company or vehicle storage facility that
 received the payment fails to furnish to the owner or operator of
 the vehicle the name, address, and telephone number of the parking
 facility owner or law enforcement agency that authorized the
 removal of the vehicle, the towing company or vehicle storage
 facility that received the payment is liable if the court, after a
 hearing, does not find probable cause for the removal and storage of
 the vehicle.
 SECTION 17. Section 2308.455, Occupations Code, is amended
 to read as follows:
 Sec. 2308.455. CONTENTS OF NOTICE. The notice under
 Section 2308.454 must include:
 (1) a statement of:
 (A) the person's right to submit a request within
 14 days for a court hearing to determine whether probable cause
 existed to remove the vehicle;
 (B) the information that a request for a hearing
 must contain; and
 (C) any filing fee for the hearing;
 (2) the name, address, and telephone number of the
 towing company that removed the vehicle;
 (3) the name, address, and telephone number of the
 vehicle storage facility in which the vehicle was placed;
 (4) the name, street address including city, state,
 and zip code, and telephone number of the person, parking facility
 [property] owner, or law enforcement agency that authorized the
 removal of the vehicle; and
 (5) the name, address, and telephone number of the
 justice court having jurisdiction in the precinct in which the
 parking [vehicle storage] facility is located.
 SECTION 18. Section 2308.456, Occupations Code, is amended
 by amending Subsection (a) and adding Subsection (c-1) to read as
 follows:
 (a) Except as provided by Subsections [Subsection] (c) and
 (c-1), a person entitled to a hearing under this chapter must
 deliver a written request for the hearing to the court before the
 14th day after the date the vehicle was removed and placed in the
 vehicle storage facility, excluding Saturdays, Sundays, and legal
 holidays.
 (c-1)  The 14-day period for requesting a hearing under
 Subsection (a) does not begin until the date on which the towing
 company or vehicle storage facility provides to the vehicle owner
 or operator the information necessary for the vehicle owner or
 operator to complete the material for the request for hearing
 required under Subsections (b)(2) through (6).
 SECTION 19. Sections 2308.458(a) and (b), Occupations Code,
 are amended to read as follows:
 (a) A hearing under this chapter shall be held before the
 21st calendar [14th working] day after the date the court receives
 the request for the hearing.
 (b) The court shall notify the person who requested the
 hearing, the parking facility owner [person] or law enforcement
 agency that authorized the removal of the vehicle, the towing
 company, and the vehicle storage facility in which the vehicle was
 placed of the date, time, and place of the hearing in a manner
 provided by Rule 21a, Texas Rules of Civil Procedure. The notice of
 the hearing to the towing company and the parking facility owner
 [person] or law enforcement agency that authorized the removal of
 the vehicle shall include a copy of the request for hearing.
 SECTION 20. Section 2308.460, Occupations Code, is amended
 to read as follows:
 Sec. 2308.460. ENFORCEMENT OF AWARD. (a) An award under
 this chapter may be enforced by any means available for the
 enforcement of a judgment for a debt.
 (b)  The department shall suspend a license holder's license
 on the license holder's failure to pay a final judgment awarded to
 an owner or operator of a vehicle before the 60th day after the date
 of the final judgment.  The department must provide notice of the
 suspension to the license holder at least 30 days before the date
 the license is to be suspended.
 (c)  The owner or operator of the vehicle shall submit a
 certified copy of the final judgment to the department.
 (d)  On receipt of the certified copy of the unpaid final
 judgment, the department shall disqualify a person from renewing a
 license or permit or deny the person the opportunity of taking a
 licensing examination on the grounds that the person, towing
 company, or vehicle storage facility has not paid a final judgment
 awarded to an owner or operator of a vehicle.
 (e)  The department shall reinstate the license on
 submission of evidence satisfactory to the department of payment of
 the final judgment by the person, towing company, or vehicle
 storage facility.
 SECTION 21. Section 2303.159(a), Occupations Code, is
 amended to read as follows:
 (a) The operator of a vehicle storage facility shall accept
 payment by an electronic check, debit card, or credit card for any
 charge associated with delivery or storage of a vehicle. The
 facility shall conspicuously post a sign that states:  "This
 vehicle storage facility must accept payment by an electronic
 check, credit card, or debit card for any fee or charge associated
 with delivery or storage of a vehicle."  The operator of a vehicle
 storage facility may not refuse to release a vehicle based on the
 inability of the facility to accept payment by electronic check,
 debit card, or credit card of a fee or charge associated with
 delivery or storage of the vehicle unless the operator, through no
 fault of the operator, is unable to accept the electronic check,
 debit card, or credit card because of a power outage or a machine
 malfunction.
 SECTION 22. Not later than September 1, 2010, the Texas
 Commission of Licensing and Regulation shall adopt the rules
 necessary to implement the changes in law made by this Act,
 including rules on the maximum amount of fees that may be charged
 for private property tows.
 SECTION 23. (a) The change in law made by this Act to
 Section 2308.405, Occupations Code, applies only to an offense
 committed on or after the effective date of this Act. For purposes
 of this section, an offense is committed before the effective date
 of this Act if any element of the offense occurs before that date.
 (b) An offense committed before the effective date of this
 Act is covered by the law in effect when the offense was committed,
 and the former law is continued in effect for that purpose.
 SECTION 24. (a) Except as provided by Subsection (b) of
 this section, this Act takes effect September 1, 2009.
 (b) Section 2308.0575, Occupations Code, as added by this
 Act, and Sections 2308.202 and 2308.204, Occupations Code, as
 amended by this Act, take effect September 1, 2010.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 2571 was passed by the House on April
 28, 2009, by the following vote: Yeas 147, Nays 0, 1 present, not
 voting; that the House refused to concur in Senate amendments to
 H.B. No. 2571 on May 25, 2009, and requested the appointment of a
 conference committee to consider the differences between the two
 houses; and that the House adopted the conference committee report
 on H.B. No. 2571 on May 31, 2009, by the following vote: Yeas 142,
 Nays 0, 1 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 2571 was passed by the Senate, with
 amendments, on May 22, 2009, by the following vote: Yeas 31, Nays
 0; at the request of the House, the Senate appointed a conference
 committee to consider the differences between the two houses; and
 that the Senate adopted the conference committee report on H.B. No.
 2571 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor