Texas 2017 - 85th Regular

Texas House Bill HB2508 Latest Draft

Bill / House Committee Report Version Filed 02/02/2025

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                            85R22029 BEE-F
 By: Kuempel H.B. No. 2508
 Substitute the following for H.B. No. 2508:
 By:  Kuempel C.S.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.
 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), 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.
 (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:
 (1)  a vehicle stored [or parked] at a vehicle storage
 facility with the consent of the owner of the vehicle; or
 (2)  unless the vehicle was towed from an incident
 management scene, a vehicle stored at a vehicle storage facility as
 a result of a consent tow, as defined by Section 2308.002.
 SECTION 1.03.  Subchapter A, Chapter 2303, Occupations Code,
 is amended by adding Section 2303.004 to read as follows:
 Sec. 2303.004.  GOVERNMENTAL CONTRACT CONTROLS. Unless
 specifically provided otherwise, this chapter does not control over
 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.
 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.  If the operator
 of a vehicle storage facility sends the notice outside of the time
 period described by this subsection or Subsection (b), the ability
 of the operator to seek foreclosure of a lien on the vehicle for
 storage charges is not affected.
 (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 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 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 recorded
 [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 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, if required by the law enforcement agency with
 jurisdiction where the vehicle is located, report the [send notice
 of] abandonment to the [a] law enforcement agency. 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 15th 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:
 (1)  was not required to make a report under Subsection
 (a); or
 (2)  has made a required report under Subsection (a)
 and the law enforcement agency:
 (A)  has notified the facility that the law
 enforcement agency will not take custody of the vehicle;
 (B)  has not taken custody of the vehicle; or
 (C)  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
 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.  Sections 2303.1545(b) and (c), Occupations
 Code, are amended to read as follows:
 (b)  The facility shall, if required by the agency, [may:
 [(1)     notify the department that notices under Chapter
 683, Transportation Code, have been provided and shall pay a fee of
 $10 to the department; or
 [(2)  in the alternative,] notify the appropriate law
 enforcement agency and pay a fee of $10 to that agency.
 (c)  A law enforcement agency described by Subsection (b)
 [(b)(2)] may sign a document issued by the department.
 SECTION 1.17.  Section 2303.155, Occupations Code, is
 amended by amending Subsections (a), (b), and (c) and adding
 Subsection (h) 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.
 (b)  The operator of a vehicle storage facility or
 governmental vehicle storage facility may charge the owner of a
 vehicle stored or parked at the facility:
 (1)  a notification fee set in a reasonable amount for
 providing notice under this subchapter, including notice under
 Section 2303.154(d) [2303.154(c)];
 (2)  an impoundment fee of $20, subject to Subsection
 (h), for any action that:
 (A)  is taken by or at the direction of the owner
 or operator of the facility; and
 (B)  is necessary to preserve, protect, or service
 a vehicle stored or parked at the facility;
 (3)  a daily storage fee, subject to Subsection (h),
 of:
 (A)  not less than $5 and not more than $20 for
 each day or part of a day the vehicle is stored at the facility if
 the vehicle is not longer than 25 feet; or
 (B)  $35 for each day or part of a day the vehicle
 is stored at the facility if the vehicle is longer than 25 feet; and
 (4)  any fee that is required to be submitted to a law
 enforcement agency, the agency's authorized agent, or a
 governmental entity[; and
 [(5)     a fee in an amount set by the commission for the
 remediation, recovery, or capture of an environmental or biological
 hazard].
 (c)  Subject to Subsection (h), a [A] notification fee under
 Subsection (b) may not exceed $50, except that if notice by
 publication is required by this chapter and the cost of publication
 exceeds 50 percent of the notification fee, the vehicle storage
 facility may recover the additional amount of the cost of
 publication from the vehicle owner or agent.
 (h)  Not later than September 1 of each even-numbered year,
 the commission shall review and by rule adjust as necessary as
 determined by the review the amount that a vehicle storage facility
 operator may charge the owner or operator of a vehicle stored at the
 facility:
 (1)  as a notification fee under Subsection (b)(1);
 (2)  as an impoundment fee under Subsection (b)(2); and
 (3)  as a daily storage fee under Subsection (b)(3).
 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 a sign that complies with commission rules and
 states [in one inch letters stating] "Nonconsent tow fees schedules
 available on request."  The vehicle storage facility shall provide
 a copy of a nonconsent towing fees schedule on request.  The
 commission shall adopt rules for signs required under this
 subsection.
 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 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, any
 fee authorized under Section 2308.2065, 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 VEHICLE TO VEHICLE OWNER OR
 OPERATOR [VEHICLES].
 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 is licensed under Chapter
 2308; 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 and Chapter 2308.
 (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 and Chapter 2308.
 (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), (11), (14), (15), and
 (16), Occupations Code, are amended to read as follows:
 (1)  "Advisory board" means the Towing and [,] Storage
 [, and Booting] Advisory Board.
 (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;
 (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;
 (G)  a truck-trailer combination that is owned or
 operated by a dealer licensed under Chapter 2301 and used to
 transport new vehicles during the normal course of a documented
 transaction in which the dealer is a party and ownership or the
 right of possession of the transported vehicle is conveyed or
 transferred; or
 (H)  a car hauler that is:
 (i)  designed to transport three or more
 motor vehicles at the same time; and
 (ii) used solely to transport, other than in
 a consent or nonconsent tow, motor vehicles as cargo in the course
 of a prearranged shipping transaction or for use in mining,
 drilling, or construction operations.
 (14)  "Vehicle" has the meaning assigned by Section
 2303.002 [means a 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 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 representative [owner] of a vehicle storage
 facility located in a county with a population of less than one
 million;
 (4)  one representative [owner] of a vehicle storage
 facility located in a county with a population of one million or
 more;
 (5)  one parking facility representative [owner];
 (6)  one peace officer [law enforcement officer] from a
 county with a population of less than one million;
 (7)  one peace officer [law enforcement officer] from a
 county with a population of one million or more;
 (8)  one representative of a member insurer, as defined
 by Section 462.004, Insurance Code, of the Texas Property and
 Casualty Insurance Guaranty Association who writes [property and
 casualty insurers who write] automobile insurance in this state;
 and
 [(9)  one representative of a booting company]
 (9)  one person who operates both a towing company and a
 vehicle storage facility [public member].
 SECTION 1.31.  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 1.32.  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 1.33.  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, or 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 1.34.  The heading to Subchapter C, Chapter 2308,
 Occupations Code, is amended to read as follows:
 SUBCHAPTER C. GENERAL [TOW TRUCK] PERMIT PROVISIONS [REQUIREMENTS]
 SECTION 1.35.  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 1.36.  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 1.37.  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 1.38.  Sections 2308.108(b) and (e), Occupations
 Code, are amended to read as follows:
 (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 1.39.  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 in a size
 and [at least two inches high and in a] color that comply with
 commission rules [contrasts with the color of the background
 surface]; and
 (2)  permanently affixed in conspicuous places on both
 sides of the tow truck.
 SECTION 1.40.  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 1.41.  The heading to Subchapter D, Chapter 2308,
 Occupations Code, is amended to read as follows:
 SUBCHAPTER D. GENERAL LICENSE PROVISIONS [REQUIREMENTS]
 SECTION 1.42.  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 1.43.  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 1.44.  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
 towing company license issued under this chapter dies or is
 disabled, the commission may transfer the license to a member of the
 license holder's family in accordance with commission rule.
 SECTION 1.45.  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 1.46.  Section 2308.159(a), Occupations Code, is
 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.
 SECTION 1.47.  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.
 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.
 (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.
 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.
 SECTION 1.48.  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
 established under Section 2308.0575; or
 (2)  a fee for an incident management or private
 property [a nonconsent] tow 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 private property tow under Section
 2308.0575; or
 (2)  by a political subdivision.
 SECTION 1.49.  Section 2308.2085, Occupations Code, is
 amended to read as follows:
 Sec. 2308.2085.  LOCAL AUTHORITY REGULATION OF [MUNICIPAL
 ORDINANCE REGULATING] BOOTING ACTIVITIES [COMPANIES AND
 OPERATORS].  (a) A local authority [municipality] may regulate, in
 areas in which the entity regulates parking or traffic, [adopt an
 ordinance that is identical to the] booting activities, including:
 (1)  operation of booting companies and operators that
 operate on a parking facility;
 (2)  any permit and sign requirements in connection
 with the booting of a vehicle; and
 (3)  [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.
 [(b)  A municipality may regulate the] fees that may be
 charged in connection with the booting of a vehicle [, including
 associated parking fees].
 (b)  Regulations adopted under this section must:
 (1)  incorporate the requirements of Sections 2308.257
 and 2308.258;
 (2)  include procedures for vehicle owners and
 operators to file a complaint with the local authority regarding a
 booting company or operator;
 (3)  provide for the imposition of a penalty on a
 booting company or operator for a violation of Section 2308.258;
 and
 (4)  provide for the revocation of any permit, license,
 or other authority of a booting company or operator to boot vehicles
 if the company or operator violates Section 2308.258 more than
 twice in a five-year period [(c) A municipality may require booting
 companies to obtain a permit to operate in the municipality].
 SECTION 1.50.  Section 2308.254, Occupations Code, is
 amended to read as follows:
 Sec. 2308.254.  LIMITATION ON PARKING FACILITY OWNER'S
 AUTHORITY TO TOW [REMOVE] UNAUTHORIZED VEHICLE. A parking facility
 owner may not have an unauthorized vehicle towed [removed] from the
 facility except:
 (1)  as provided by this chapter or a municipal
 ordinance that complies with Section 2308.208; or
 (2)  under the direction of a peace officer or the owner
 or operator of the vehicle.
 SECTION 1.51.  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:
 (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 tow
 [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 tow [remove and
 store] an unauthorized vehicle under this section.
 (d)  A towing company may tow [remove and store] a vehicle to
 a licensed storage facility under Subsection (a) [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 1.52.  Subchapter F, Chapter 2308, Occupations Code,
 is amended by adding Section 2308.258 to read as follows:
 Sec. 2308.258.  BOOT REMOVAL. (a) A booting company
 responsible for the installation of a boot on a vehicle shall remove
 the boot not later than one hour after the time the owner or
 operator of the vehicle contacts the company to request removal of
 the boot.
 (b)  A booting company shall waive the amount of the fee for
 removal of a boot, excluding any associated parking fees, if the
 company fails to have the boot removed within the time prescribed by
 Subsection (a).
 SECTION 1.53.  Section 2308.302, Occupations Code, is
 amended by adding Subsection (b-1) and amending Subsections (c),
 (d), and (e) to read as follows:
 (b-1)  Any portion of the sign that is not described by
 Subsection (b) must be red or white with any lettering contrasting
 with the background.
 (c)  The portion of the sign immediately below the
 international towing symbol must, [:
 [(1)]  in lettering at least two inches in height,
 contain the words, as applicable:
 (1) [(A)]  "Towing and Booting Enforced"; or
 (2) [(B)]  "Towing Enforced"[; or
 [(C)  "Booting 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 2308.301(b) displayed in [bright red] letters at least
 one inch in height [on a white background].
 (e)  The bottommost portion of the sign must contain the
 telephone numbers required by Section 2308.301(b), in lettering at
 least one inch in height 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 [removed. The lettering on this portion of the sign
 must consist of white letters on a bright red background].
 SECTION 1.54.  Section 2308.304, Occupations Code, is
 amended to read as follows:
 Sec. 2308.304.  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 2308.301(a)(2), an owner may place a sign that
 prohibits unauthorized vehicles from parking in designated spaces
 and that otherwise complies with Sections 2308.301 and 2308.302:
 (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 directly facing and in front of [a vehicle that is
 parked in the space and the rear of which is at the entrance of] the
 restricted space.
 SECTION 1.55.  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 1.56.  Section 2308.353(c), Occupations Code, is
 amended to read as follows:
 (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 1.57.  Section 2308.354, Occupations Code, is
 transferred to Subchapter E, Chapter 2308, Occupations Code,
 redesignated as Section 2308.210, Occupations Code, and amended to
 read as follows:
 Sec. 2308.210 [2308.354].  AUTHORITY FOR TOWING [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)  tow [remove] an immobilized vehicle from a public
 roadway in the municipality.
 (b)  A parking facility owner or towing company may not tow
 [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
 towing [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 1.58.  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 1.59.  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 2308.301 provided by a towing [or booting] company to a
 parking facility owner.
 SECTION 1.60.  Section 2308.403, Occupations Code, is
 amended to read as follows:
 Sec. 2308.403.  LIMITATION ON LIABILITY OF PARKING FACILITY
 OWNER FOR TOWING [REMOVAL] OR STORAGE OF UNAUTHORIZED VEHICLE. A
 parking facility owner who causes the towing [removal] of an
 unauthorized vehicle is not liable for damages arising from the
 towing [removal] or storage of the vehicle if the vehicle:
 (1)  was towed [removed] in compliance with this
 chapter; and
 (2)  is:
 (A)  towed [removed] 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.
 SECTION 1.61.  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 SUBCHAPTER
 [CHAPTER]. (a) A towing company [, booting company,] or parking
 facility owner who violates this subchapter [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 [removal,]
 storage[, or booting] of the vehicle; and
 (2)  towing or [,] storage[, or booting] fees paid by
 the owner or operator [assessed] in connection with the vehicle's
 towing or [removal,] storage[, or booting].
 (b)  A vehicle's owner or operator is not required to prove
 negligence of a parking facility owner or[,] towing company [, or
 booting company] to recover under Subsection (a).
 (c)  A towing company [, booting company,] or parking
 facility owner who intentionally, knowingly, or recklessly
 violates this subchapter [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 paid by the owner or
 operator [assessed] in connection with the vehicle's [removal,]
 towing or [,] storage[, or booting].
 SECTION 1.62.  Section 2308.452, Occupations Code, is
 amended to read as follows:
 Sec. 2308.452.  RIGHT OF OWNER OR OPERATOR OF VEHICLE TO
 HEARING. (a) 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].
 (b)  In a hearing authorized by Subsection (a), a court may
 determine only the issues described by Section 2308.458(c).
 SECTION 1.63.  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 1.64.  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 1.65.  Section 2308.458, Occupations Code, is
 amended by amending Subsections (b), (c), and (e) and adding
 Subsections (c-2), (c-3), (f), and (g) 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, including any photographs, exhibits,
 schedules, or other evidence, attached to or included or filed with
 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 only issues in a hearing regarding a towed vehicle
 under this chapter, at trial in a justice court or on appeal, 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].
 (c-2)  In determining whether probable cause for the towing
 of a vehicle existed under Subsection (c)(1), the court shall
 consider the facts known to the tow operator at the time the vehicle
 was towed and stored in a vehicle storage facility.
 (c-3)  The court shall find that probable cause for the
 towing of a vehicle existed under Subsection (c)(1) if a vehicle was
 towed from the parking facility of a multiunit complex, as defined
 by Section 92.151, Property Code, where the vehicle was parked in
 violation of the parking rules or policies of the multiunit
 complex.
 (e)  The court may award, at trial in a justice court or on
 appeal, only:
 (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].
 (f)  In a hearing under this chapter, in a justice court or on
 appeal, any issue of fact or law must be submitted to and determined
 by the court.
 (g)  In a hearing under this chapter, on appeal, the court
 may not consider an issue or claim that was not presented or award
 damages or relief that was not requested in justice court.
 SECTION 1.66.  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 chapter 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 chapter 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 chapter, 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 1.67.  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 1.68.  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].
 SECTION 1.69.  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 1.70.  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 1.71.  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 2. REPEALER
 SECTION 2.01.  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)  Section 2308.002(7-a);
 (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 2308.253(g);
 (8)  Sections 2308.2555 and 2308.2565;
 (9)  Section 2308.451;
 (10)  Sections 2308.454 and 2308.455; and
 (11)  Sections 2308.458(b-2) and (c-1).
 ARTICLE 3. TRANSITIONS; EFFECTIVE DATE
 SECTION 3.01.  (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, a license or permit
 issued under former Section 2303.1015, 2303.1016, 2308.1521,
 2308.1551, 2308.1555, or 2308.1556, 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, 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 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)  The changes in law made by this Act to Section
 2308.051(a), Occupations Code, regarding the qualifications for a
 member of the Towing and Storage Advisory Board do not affect the
 entitlement of a member serving on the board immediately before the
 effective date of this Act to continue to serve and function as a
 member of the board for the remainder of the member's term. When
 board vacancies occur on or after the effective date of this Act,
 the presiding officer of the Texas Commission of Licensing and
 Regulation shall appoint new members to the board in a manner that
 reflects the changes in law made by this Act.
 (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)  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 3.02.  This Act takes effect September 1, 2017.