By: Carona S.B. No. 702 A BILL TO BE ENTITLED AN ACT relating to the regulation of the towing and storage of vehicles. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 2303, Occupations Code, is amended by adding Section 2303.1016 to read as follows: Sec. 2303.1016. VEHICLE STORAGE FACILITY EMPLOYEE AND TOWING OPERATOR; DUAL LICENSE. (a) The commission shall adopt rules for the issuance of a dual license for a person who is a vehicle storage facility employee and towing operator. The department shall issue the license to an applicant who: (1) meets the requirements established under: (A) Section 2303.1015; (B) Section 2308.153, 2308.154, or 2308.155; and (C) any applicable rules adopted under this subchapter or Subchapter D, Chapter 2308; and (2) submits to the department: (A) an application on a department-approved form; and (B) the required license fee. (b) A person holding a license issued under this section may: (1) work at a vehicle storage facility; and (2) perform towing operations. (c) The fee for a license issued under this section may not be: (1) less than the fee for a license issued under Section 2303.1015 or Subchapter D, Chapter 2308; or (2) more than the sum of the fees for a license issued under Section 2303.1015 and a license issued under Subchapter D, Chapter 2308. SECTION 2. Subdivision (11), Section 2308.002, Occupations Code, is amended to read as follows: (11) "Tow truck" means a motor vehicle, including a wrecker, equipped with a mechanical device used to tow, winch, or otherwise move another motor vehicle. The term does not include: (A) a motor vehicle owned and operated by a governmental entity, including a public school district; (B) a motor vehicle towing: (i) a race car; (ii) a motor vehicle for exhibition; or (iii) an antique motor vehicle; (C) a recreational vehicle towing another vehicle; (D) a motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device if the vehicle is not operated in the furtherance of a commercial enterprise; (E) a motor vehicle that is controlled or operated by a farmer or rancher and used for towing a farm vehicle; or (F) a motor vehicle that: (i) is owned or operated by an entity the primary business of which is the rental of motor vehicles; and (ii) only tows vehicles rented by the entity. SECTION 3. Subchapter D, Chapter 2308, Occupations Code, is amended by adding Section 2308.1521 to read as follows: Sec. 2308.1521. VEHICLE STORAGE FACILITY EMPLOYEE AND TOWING OPERATOR; DUAL LICENSE. (a) The commission shall adopt rules for the issuance of a dual license for a person who is a vehicle storage facility employee and towing operator. The department shall issue the license to an applicant who: (1) meets the requirements established under: (A) Section 2308.153, 2308.154, or 2308.155; (B) Section 2303.1015; and (C) any applicable rules adopted under this subchapter or Subchapter C, Chapter 2303; and (2) submits to the department: (A) an application on a department-approved form; and (B) the required license fee. (b) A person holding a license issued under this section may: (1) work at a vehicle storage facility; and (2) perform towing operations. (c) The fee for a license issued under this section may not be: (1) less than the fee for a license issued under this subchapter or Section 2303.1015; or (2) more than the sum of the fees for a license issued under this subchapter and a license issued under Section 2303.1015. SECTION 4. Subsection (b), Section 2308.153, Occupations Code, is amended to read as follows: (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 [be a licensed Texas driver]; and (2) be certified by a [the National Drivers Certification Program of the Towing and Recovery Association of America or another certification] program approved by the department. SECTION 5. Subsection (b), Section 2308.154, Occupations Code, is amended to read as follows: (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 [be a licensed Texas driver]; and (2) be certified by a [the National Drivers Certification Program of the Towing and Recovery Association of America or another certification] program approved by the department. SECTION 6. Subsection (b), Section 2308.155, Occupations Code, is amended to read as follows: (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 [be a licensed Texas driver]. SECTION 7. Subchapter D, Chapter 2308, Occupations Code, is amended by adding Section 2308.1551 to read as follows: Sec. 2308.1551. TRAINING LICENSE. (a) The department may issue a training license to an applicant for a license under this subchapter if the applicant: (1) holds a valid driver's license issued by a state in the United States; (2) meets the qualifications established by rule by the commission; and (3) is engaged in the process of learning and assisting in the operation of a tow truck under the supervision of a licensed tow truck operator. (b) Notwithstanding Subsection (a), an applicant for a license under Section 2308.153 may be supervised by an operator who holds a license issued under Section 2308.153, 2308.154, or 2308.155. (c) A training license issued under this section expires on the 91st day after the date of issuance and may not be renewed. (d) The commission by rule shall set the fee, establish the qualifications, and provide for the issuance of a training license under this section. SECTION 8. 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 [a] drug testing policy for towing operators. A towing company that establishes an alcohol and [a] drug testing policy under this subsection may adopt the model alcohol and drug testing policy adopted by the commission 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. (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 alcohol and drug test each year for each towing operator; and (2) authorize random, unannounced alcohol and drug testing for towing operators. SECTION 9. 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 shall [may] regulate the fees that may be charged or collected in connection with a nonconsent tow originating in the territory of the political subdivision. SECTION 10. Subchapter G, Chapter 2308, Occupations Code, is amended by adding Section 2308.306 to read as follows: Sec. 2308.306. NOTICE REGARDING AMOUNT CHARGED FOR TOWING REQUIRED. A sign posted under this subchapter must include notice regarding the amount that may be charged for towing. SECTION 11. (a) The changes in law made by this Act to Sections 2308.153, 2308.154, and 2308.155, Occupations Code, apply only to a license application filed on or after the effective date of this Act. A license application filed before the effective date of this Act is governed by the law in effect when the license application was filed, and the former law is continued in effect for that purpose. (b) Not later than April 1, 2010, the Texas Commission of Licensing and Regulation shall adopt the model alcohol and drug testing policy required by Section 2308.158, Occupations Code, as amended by this Act. (c) A towing company is not required to comply with the alcohol and drug testing policy required by Section 2308.158, Occupations Code, as amended by this Act, until January 1, 2010. (d) Not later than April 1, 2010, the Texas Commission of Licensing and Regulation shall adopt rules as necessary to implement Sections 2303.1016, 2308.1521, and 2308.1551, Occupations Code, as added by this Act. SECTION 12. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2009. (b) Sections 2303.1016, 2308.1521, and 2308.1551, Occupations Code, as added by this Act, take effect June 1, 2010.