Texas 2019 - 86th Regular

Texas House Bill HB3434 Compare Versions

Only one version of the bill is available at this time.

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1	1	86R12952 BEE-F
2	2	By: Oliverson H.B. No. 3434
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of motor vehicle towing, booting, and
8	8	storage; authorizing administrative penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter D, Chapter 2303, Occupations Code, is
11	11	amended by adding Section 2303.1601 to read as follows:
12	12	Sec. 2303.1601. RELEASE OF PERSONAL PROPERTY AND COMMERCIAL
13	13	CARGO. (a) In this section, "commercial cargo" means any property
14	14	in or on a vehicle that has been transported in interstate or
15	15	intrastate commerce.
16	16	(b) The operator of a vehicle storage facility shall allow a
17	17	person who establishes ownership or right of possession or control
18	18	of a vehicle stored at the facility, or an authorized
19	19	representative of the person, to remove at no cost any personal
20	20	property from the vehicle that may be readily detached from the
21	21	vehicle.
22	22	(c) The operator of a vehicle storage facility shall allow a
23	23	person who demonstrates ownership or right of possession or control
24	24	of a vehicle stored at the facility or of commercial cargo contained
25	25	in or on a vehicle stored at the facility, or any authorized
26	26	representative of the person, to remove any commercial cargo
27	27	identified or described by a bill of lading, shipping manifest,
28	28	shipping invoice, or similar document.
29	29	SECTION 2. Chapter 2303, Occupations Code, is amended by
30	30	adding Subchapter E to read as follows:
31	31	SUBCHAPTER E. TRANSFER OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
32	32	BODY REPAIR SHOP
33	33	Sec. 2303.201. DEFINITIONS. In this subchapter:
34	34	(1) "Auto body repair shop" means a shop specializing
35	35	in the repair of bodies of damaged vehicles.
36	36	(2) "Auto repair shop" means a shop specializing in
37	37	the mechanical repair of vehicles.
38	38	(3) "Incident management tow" has the meaning assigned
39	39	by Section 2308.002.
40	40	Sec. 2303.202. APPLICABILITY. This subchapter applies only
41	41	to the operator or employee of a vehicle storage facility licensed
42	42	under this chapter.
43	43	Sec. 2303.203. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
44	44	(a) An operator or employee of a vehicle storage facility may
45	45	transfer or cause the transfer of a vehicle involved in an incident
46	46	management tow from a vehicle storage facility to an auto repair or
47	47	auto body repair shop only if:
48	48	(1) the facility operator or employee gives the
49	49	vehicle owner or operator written notice of the transfer on the form
50	50	developed under Section 2303.204; and
51	51	(2) the vehicle owner or operator:
52	52	(A) consents to the transfer; and
53	53	(B) signs the form.
54	54	(b) A vehicle storage facility operator shall retain any
55	55	records of the storage and release of a vehicle involved in an
56	56	incident management tow, including a copy of the form signed under
57	57	Subsection (a)(2).
58	58	Sec. 2303.204. FORM FOR NOTICE REGARDING TRANSFER. (a) The
59	59	department shall develop a form to provide notice to an owner or
60	60	operator of a vehicle involved in an incident management tow
61	61	regarding the transfer of the vehicle from a vehicle storage
62	62	facility to an auto repair or auto body repair shop.
63	63	(b) The form must include statements that:
64	64	(1) auto repair and auto body repair shops are not
65	65	regulated by the state; and
66	66	(2) the vehicle owner or operator:
67	67	(A) is not required to transfer the vehicle from
68	68	the vehicle storage facility to an auto repair or auto body repair
69	69	shop;
70	70	(B) will be subject to payment of unregulated
71	71	fees and charges to secure release of the vehicle from an auto
72	72	repair or auto body repair shop if the owner or operator consents to
73	73	the transfer; and
74	74	(C) may file a complaint with the department if
75	75	the vehicle is transferred without the owner's or operator's
76	76	signature on the form.
77	77	(c) In addition to the statements required by Subsection
78	78	(b), the department may include on the form under this section any
79	79	information the department determines is necessary to enhance
80	80	consumer protection relating to incident management tows.
81	81	Sec. 2303.205. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
82	82	AND REPAIR SHOP; ORDER FOR REFUND. (a) An operator or employee of a
83	83	vehicle storage facility may not directly or indirectly accept
84	84	money or anything of value in connection with the transfer of a
85	85	vehicle that does not comply with Section 2303.203(a).
86	86	(b) The executive director or commission may order an
87	87	operator or employee of a vehicle storage facility who accepts
88	88	money or anything of value as described by Subsection (a) to pay to
89	89	the vehicle owner or operator an amount equal to the amount of the
90	90	value received.
91	91	(c) The executive director or commission may order an auto
92	92	repair or auto body repair shop that gives money or anything of
93	93	value to an operator or employee of a vehicle storage facility in
94	94	order to induce the transfer of a vehicle involved in an incident
95	95	management tow to the auto repair or auto body repair shop to refund
96	96	to the vehicle owner or operator any amount charged by the repair
97	97	shop in connection with the transfer or storage of the vehicle.
98	98	Sec. 2303.206. GROUNDS FOR REVOCATION OF LICENSE. In
99	99	addition to assessing an administrative penalty under Chapter 51 or
100	100	this chapter, the executive director or commission may revoke a
101	101	license issued under this chapter if, after notice and hearing, the
102	102	license holder is found to be in violation of this subchapter.
103	103	Sec. 2303.207. MAXIMUM PENALTY; CONTINUING VIOLATION. (a)
104	104	Notwithstanding any other provision of Chapter 51 or this chapter,
105	105	the amount of an administrative penalty that may be assessed for a
106	106	violation of this subchapter may not exceed $10,000 per day for each
107	107	violation.
108	108	(b) Each day of a continuing violation of this subchapter is
109	109	a separate violation.
110	110	SECTION 3. Subchapter G, Chapter 2303, Occupations Code, is
111	111	amended by adding Section 2303.306 to read as follows:
112	112	Sec. 2303.306. SURETY BOND REQUIRED. (a) The commission or
113	113	executive director may require the holder of a license issued under
114	114	this chapter who commits multiple violations of this chapter or a
115	115	rule adopted under this chapter to obtain a surety bond.
116	116	(b) The commission by rule shall establish the conditions
117	117	and amount of a surety bond required under Subsection (a) based on
118	118	the nature, extent, and seriousness of the violations.
119	119	(c) A surety bond required under Subsection (a) must:
120	120	(1) be issued by a surety authorized to conduct
121	121	business in this state;
122	122	(2) comply with the applicable requirements of the
123	123	Insurance Code;
124	124	(3) be payable to the executive director on behalf of
125	125	persons who are injured as a result of the license holder's
126	126	violation of Chapter 51 or this chapter;
127	127	(4) remain in effect for as long as required by the
128	128	department; and
129	129	(5) be in the form prescribed by the commission.
130	130	(d) A surety that issues a bond required by Subsection (a)
131	131	shall provide written notice to the department of the surety's
132	132	intent to cancel the bond not later than the 60th day before the
133	133	date the surety cancels the bond.
134	134	SECTION 4. Chapter 2308, Occupations Code, is amended by
135	135	adding Subchapter E-1 to read as follows:
136	136	SUBCHAPTER E-1. TOWING OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
137	137	BODY REPAIR SHOP
138	138	Sec. 2308.231. DEFINITIONS. In this subchapter, "auto body
139	139	repair shop" and "auto repair shop" have the meanings assigned by
140	140	Section 2303.201.
141	141	Sec. 2308.232. APPLICABILITY. This subchapter applies only
142	142	to a towing company or operator licensed under this chapter.
143	143	Sec. 2308.233. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
144	144	(a) A towing company or operator may tow or cause the towing of a
145	145	vehicle involved in an incident management tow to an auto repair or
146	146	auto body repair shop only if:
147	147	(1) the towing company or operator gives the vehicle
148	148	owner or operator written notice of the transfer on the form
149	149	developed under Section 2308.234; and
150	150	(2) the vehicle owner or operator:
151	151	(A) consents to the transfer; and
152	152	(B) signs the form.
153	153	(b) A towing company shall retain any records of the storage
154	154	and release of a vehicle involved in an incident management tow,
155	155	including a copy of the form signed under Subsection (a)(2).
156	156	Sec. 2308.234. FORM FOR NOTICE REGARDING TRANSFER. (a) The
157	157	department shall develop a form to provide notice to an owner or
158	158	operator of a vehicle involved in an incident management tow
159	159	regarding the towing of the vehicle to an auto repair or auto body
160	160	repair shop.
161	161	(b) The form must include statements that:
162	162	(1) auto repair and auto body repair shops are not
163	163	regulated by the state; and
164	164	(2) the vehicle owner or operator:
165	165	(A) is not required to have the vehicle towed to
166	166	an auto repair or auto body repair shop;
167	167	(B) will be subject to payment of unregulated
168	168	fees and charges to secure release of the vehicle from an auto
169	169	repair or auto body repair shop if the owner or operator consents to
170	170	the tow; and
171	171	(C) may file a complaint with the department if
172	172	the vehicle is towed without the owner's or operator's signature on
173	173	the form.
174	174	(c) In addition to the statements required by Subsection
175	175	(b), the department may include on the form under this section any
176	176	information the department determines is necessary to enhance
177	177	consumer protection relating to incident management tows.
178	178	Sec. 2308.235. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
179	179	AND REPAIR SHOP; ORDER FOR REFUND. (a) The holder of a license
180	180	issued under this chapter may not directly or indirectly accept
181	181	money or anything of value in connection with the towing of a
182	182	vehicle that does not comply with the requirements of Section
183	183	2308.233(a).
184	184	(b) The executive director or commission may order the
185	185	holder of a license issued under this chapter who accepts money or
186	186	anything of value as described by Subsection (a) to pay to the
187	187	vehicle owner or operator an amount equal to the amount of the value
188	188	received.
189	189	(c) The executive director or commission may order an auto
190	190	repair or auto body repair shop that gives money or anything of
191	191	value to the holder of a license issued under this chapter in order
192	192	to induce the license holder to tow a vehicle involved in an
193	193	incident management tow to an auto repair or auto body repair shop
194	194	to refund to the vehicle owner or operator any amount charged by the
195	195	repair shop in connection with the tow or storage of the vehicle.
196	196	Sec. 2308.236. REQUEST FOR REMOVAL FROM TOW ROTATION LIST.
197	197	The commission or executive director may:
198	198	(1) report a violation of this subchapter to a
199	199	sheriff's office that maintains a list of towing companies under
200	200	Section 2308.209; and
201	201	(2) request that a towing company that violates this
202	202	subchapter be removed from the list maintained by the sheriff's
203	203	office.
204	204	Sec. 2308.237. GROUNDS FOR REVOCATION OF LICENSE. In
205	205	addition to assessing an administrative penalty under Chapter 51 or
206	206	this chapter, the executive director or commission may revoke a
207	207	license issued under this chapter if, after notice and hearing, the
208	208	license holder is found to be in violation of this subchapter.
209	209	Sec. 2308.238. MAXIMUM PENALTY; CONTINUING VIOLATION. (a)
210	210	Notwithstanding any other provision of Chapter 51 or this chapter,
211	211	the amount of an administrative penalty that may be assessed for a
212	212	violation of this subchapter may not exceed $10,000 per day for each
213	213	violation.
214	214	(b) Each day of a continuing violation of this subchapter is
215	215	a separate violation.
216	216	SECTION 5. Section 2308.455, Occupations Code, is amended
217	217	to read as follows:
218	218	Sec. 2308.455. CONTENTS OF NOTICE. The notice under
219	219	Section 2308.454 must include:
220	220	(1) a statement of:
221	221	(A) the person's right to submit a request within
222	222	30 [14] days for a court hearing to determine whether probable cause
223	223	existed to remove, or install a boot on, the vehicle;
224	224	(B) the information that a request for a hearing
225	225	must contain;
226	226	(C) any filing fee for the hearing; and
227	227	(D) the person's right to request a hearing in
228	228	any justice court in:
229	229	(i) the county from which the vehicle was
230	230	towed; or
231	231	(ii) for booted vehicles, the county in
232	232	which the parking facility is located;
233	233	(2) the name, address, and telephone number of the
234	234	towing company that removed the vehicle or the booting company that
235	235	booted the vehicle;
236	236	(3) the name, address, telephone number, and county of
237	237	the vehicle storage facility in which the vehicle was placed;
238	238	(4) the name, street address including city, state,
239	239	and zip code, and telephone number of the person, parking facility
240	240	owner, or law enforcement agency that authorized the removal of the
241	241	vehicle; and
242	242	(5) the name, address, and telephone number of each
243	243	justice court in the county from which the vehicle was towed or, for
244	244	booted vehicles, the county in which the parking facility is
245	245	located, or the address of an Internet website maintained by the
246	246	Office of Court Administration of the Texas Judicial System that
247	247	contains the name, address, and telephone number of each justice
248	248	court in that county.
249	249	SECTION 6. Sections 2308.456(a), (c), and (c-1),
250	250	Occupations Code, are amended to read as follows:
251	251	(a) Except as provided by Subsections (c) and (c-1), a
252	252	person entitled to a hearing under this chapter must deliver a
253	253	written request for the hearing to the court before the 30th [14th]
254	254	day after the date the vehicle was removed and placed in the vehicle
255	255	storage facility or booted, excluding Saturdays, Sundays, and legal
256	256	holidays.
257	257	(c) If notice was not given under Section 2308.454, the
258	258	30-day [14-day] deadline for requesting a hearing under Subsection
259	259	(a) does not apply, and the owner or operator of the vehicle may
260	260	deliver a written request for a hearing at any time.
261	261	(c-1) The 30-day [14-day] period for requesting a hearing
262	262	under Subsection (a) does not begin until the date on which the
263	263	towing company or vehicle storage facility provides to the vehicle
264	264	owner or operator the information necessary for the vehicle owner
265	265	or operator to complete the material for the request for hearing
266	266	required under Subsections (b)(2) through (6).
267	267	SECTION 7. Subchapter K, Chapter 2308, Occupations Code, is
268	268	amended by adding Section 2308.506 to read as follows:
269	269	Sec. 2308.506. SURETY BOND REQUIRED. (a) The commission or
270	270	executive director may require the holder of a license issued under
271	271	this chapter who commits multiple violations of this chapter or a
272	272	rule adopted under this chapter to obtain a surety bond.
273	273	(b) The commission by rule shall establish the conditions
274	274	and amount of a surety bond required under Subsection (a) based on
275	275	the nature, extent, and seriousness of the violations.
276	276	(c) A surety bond required under Subsection (a) must:
277	277	(1) be issued by a surety authorized to conduct
278	278	business in this state;
279	279	(2) comply with the applicable requirements of the
280	280	Insurance Code;
281	281	(3) be payable to the executive director on behalf of
282	282	persons who are injured as a result of the license holder's
283	283	violation of Chapter 51 or this chapter;
284	284	(4) remain in effect for as long as required by the
285	285	department; and
286	286	(5) be in the form prescribed by the commission.
287	287	(d) A surety that issues a bond required by Subsection (a)
288	288	shall provide written notice to the department of the surety's
289	289	intent to cancel the bond not later than the 60th day before the
290	290	date the surety cancels the bond.
291	291	SECTION 8. As soon as practicable after the effective date
292	292	of this Act, the Texas Department of Licensing and Regulation shall
293	293	develop any form and the Texas Commission of Licensing and
294	294	Regulation shall adopt any rules to implement the changes in law
295	295	made by this Act.
296	296	SECTION 9. Sections 2308.455 and 2308.456, Occupations
297	297	Code, as amended by this Act, apply only to a notice or a request for
298	298	a hearing in connection with the towing or booting of a vehicle on
299	299	or after the effective date of this Act. A notice or a request for a
300	300	hearing in connection with the towing or booting of a vehicle before
301	301	the effective date of this Act is governed by the law in effect when
302	302	the vehicle was towed or booted, and the former law is continued in
303	303	effect for that purpose.
304	304	SECTION 10. This Act takes effect September 1, 2019.