Texas House Bill HB4120

Texas 2017 - 85th Regular

Caption

Relating to a daily storage fee charged by a vehicle storage facility.

Impact

The passage of HB4120 will significantly impact vehicle storage facilities across Texas, altering how they calculate and impose towing storage fees. By changing the billing cycle from a midnight-to-midnight approach to one starting 24 hours post-tow, the law aims to protect consumers from being charged for full days when they retrieve their vehicles shortly after towing. This change seeks to balance operational realities for storage facilities with the rights of vehicle owners, particularly those who may face substantial fees due to extended storage times.

Summary

House Bill 4120 addresses the daily storage fees charged by vehicle storage facilities in Texas. This legislation modifies the existing statute, specifically Section 2303.155(d) of the Occupations Code, defining the time frame for when a day begins regarding the imposition of such fees. The bill stipulates that a day for charging a storage fee will begin 24 hours after the vehicle is towed, rather than at midnight, as previously defined. This change aims to create clearer regulations surrounding the time limits for storage charges, potentially reducing excessive charges for vehicle owners who retrieve their vehicles within shorter periods.

Contention

Although the bill is primarily intended to protect vehicle owners, it could raise some points of contention. Storage facilities may argue that the new definitions could lead to revenue losses if consumers regularly reclaim vehicles before the 24-hour mark. Additionally, the bill's potential impact on towing service providers is worth noting, as any adjustments in billing could influence their operations and customer interaction strategies. Stakeholders in the towing industry may express concerns over how this change will be implemented and regulated, prompting discussions on fairer practices in the towing and storage sector.