86R12952 BEE-F
By: Oliverson H.B. No. 3434
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of motor vehicle towing, booting, and
storage; authorizing administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 2303, Occupations Code, is
amended by adding Section 2303.1601 to read as follows:
Sec. 2303.1601. RELEASE OF PERSONAL PROPERTY AND COMMERCIAL
CARGO. (a) In this section, "commercial cargo" means any property
in or on a vehicle that has been transported in interstate or
intrastate commerce.
(b) The operator of a vehicle storage facility shall allow a
person who establishes ownership or right of possession or control
of a vehicle stored at the facility, or an authorized
representative of the person, to remove at no cost any personal
property from the vehicle that may be readily detached from the
vehicle.
(c) The operator of a vehicle storage facility shall allow a
person who demonstrates ownership or right of possession or control
of a vehicle stored at the facility or of commercial cargo contained
in or on a vehicle stored at the facility, or any authorized
representative of the person, to remove any commercial cargo
identified or described by a bill of lading, shipping manifest,
shipping invoice, or similar document.
SECTION 2. Chapter 2303, Occupations Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. TRANSFER OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
BODY REPAIR SHOP
Sec. 2303.201. DEFINITIONS. In this subchapter:
(1) "Auto body repair shop" means a shop specializing
in the repair of bodies of damaged vehicles.
(2) "Auto repair shop" means a shop specializing in
the mechanical repair of vehicles.
(3) "Incident management tow" has the meaning assigned
by Section 2308.002.
Sec. 2303.202. APPLICABILITY. This subchapter applies only
to the operator or employee of a vehicle storage facility licensed
under this chapter.
Sec. 2303.203. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
(a) An operator or employee of a vehicle storage facility may
transfer or cause the transfer of a vehicle involved in an incident
management tow from a vehicle storage facility to an auto repair or
auto body repair shop only if:
(1) the facility operator or employee gives the
vehicle owner or operator written notice of the transfer on the form
developed under Section 2303.204; and
(2) the vehicle owner or operator:
(A) consents to the transfer; and
(B) signs the form.
(b) A vehicle storage facility operator shall retain any
records of the storage and release of a vehicle involved in an
incident management tow, including a copy of the form signed under
Subsection (a)(2).
Sec. 2303.204. FORM FOR NOTICE REGARDING TRANSFER. (a) The
department shall develop a form to provide notice to an owner or
operator of a vehicle involved in an incident management tow
regarding the transfer of the vehicle from a vehicle storage
facility to an auto repair or auto body repair shop.
(b) The form must include statements that:
(1) auto repair and auto body repair shops are not
regulated by the state; and
(2) the vehicle owner or operator:
(A) is not required to transfer the vehicle from
the vehicle storage facility to an auto repair or auto body repair
shop;
(B) will be subject to payment of unregulated
fees and charges to secure release of the vehicle from an auto
repair or auto body repair shop if the owner or operator consents to
the transfer; and
(C) may file a complaint with the department if
the vehicle is transferred without the owner's or operator's
signature on the form.
(c) In addition to the statements required by Subsection
(b), the department may include on the form under this section any
information the department determines is necessary to enhance
consumer protection relating to incident management tows.
Sec. 2303.205. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
AND REPAIR SHOP; ORDER FOR REFUND. (a) An operator or employee of a
vehicle storage facility may not directly or indirectly accept
money or anything of value in connection with the transfer of a
vehicle that does not comply with Section 2303.203(a).
(b) The executive director or commission may order an
operator or employee of a vehicle storage facility who accepts
money or anything of value as described by Subsection (a) to pay to
the vehicle owner or operator an amount equal to the amount of the
value received.
(c) The executive director or commission may order an auto
repair or auto body repair shop that gives money or anything of
value to an operator or employee of a vehicle storage facility in
order to induce the transfer of a vehicle involved in an incident
management tow to the auto repair or auto body repair shop to refund
to the vehicle owner or operator any amount charged by the repair
shop in connection with the transfer or storage of the vehicle.
Sec. 2303.206. GROUNDS FOR REVOCATION OF LICENSE. In
addition to assessing an administrative penalty under Chapter 51 or
this chapter, the executive director or commission may revoke a
license issued under this chapter if, after notice and hearing, the
license holder is found to be in violation of this subchapter.
Sec. 2303.207. MAXIMUM PENALTY; CONTINUING VIOLATION. (a)
Notwithstanding any other provision of Chapter 51 or this chapter,
the amount of an administrative penalty that may be assessed for a
violation of this subchapter may not exceed $10,000 per day for each
violation.
(b) Each day of a continuing violation of this subchapter is
a separate violation.
SECTION 3. Subchapter G, Chapter 2303, Occupations Code, is
amended by adding Section 2303.306 to read as follows:
Sec. 2303.306. SURETY BOND REQUIRED. (a) The commission or
executive director may require the holder of a license issued under
this chapter who commits multiple violations of this chapter or a
rule adopted under this chapter to obtain a surety bond.
(b) The commission by rule shall establish the conditions
and amount of a surety bond required under Subsection (a) based on
the nature, extent, and seriousness of the violations.
(c) A surety bond required under Subsection (a) must:
(1) be issued by a surety authorized to conduct
business in this state;
(2) comply with the applicable requirements of the
Insurance Code;
(3) be payable to the executive director on behalf of
persons who are injured as a result of the license holder's
violation of Chapter 51 or this chapter;
(4) remain in effect for as long as required by the
department; and
(5) be in the form prescribed by the commission.
(d) A surety that issues a bond required by Subsection (a)
shall provide written notice to the department of the surety's
intent to cancel the bond not later than the 60th day before the
date the surety cancels the bond.
SECTION 4. Chapter 2308, Occupations Code, is amended by
adding Subchapter E-1 to read as follows:
SUBCHAPTER E-1. TOWING OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
BODY REPAIR SHOP
Sec. 2308.231. DEFINITIONS. In this subchapter, "auto body
repair shop" and "auto repair shop" have the meanings assigned by
Section 2303.201.
Sec. 2308.232. APPLICABILITY. This subchapter applies only
to a towing company or operator licensed under this chapter.
Sec. 2308.233. NOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
(a) A towing company or operator may tow or cause the towing of a
vehicle involved in an incident management tow to an auto repair or
auto body repair shop only if:
(1) the towing company or operator gives the vehicle
owner or operator written notice of the transfer on the form
developed under Section 2308.234; and
(2) the vehicle owner or operator:
(A) consents to the transfer; and
(B) signs the form.
(b) A towing company shall retain any records of the storage
and release of a vehicle involved in an incident management tow,
including a copy of the form signed under Subsection (a)(2).
Sec. 2308.234. FORM FOR NOTICE REGARDING TRANSFER. (a) The
department shall develop a form to provide notice to an owner or
operator of a vehicle involved in an incident management tow
regarding the towing of the vehicle to an auto repair or auto body
repair shop.
(b) The form must include statements that:
(1) auto repair and auto body repair shops are not
regulated by the state; and
(2) the vehicle owner or operator:
(A) is not required to have the vehicle towed to
an auto repair or auto body repair shop;
(B) will be subject to payment of unregulated
fees and charges to secure release of the vehicle from an auto
repair or auto body repair shop if the owner or operator consents to
the tow; and
(C) may file a complaint with the department if
the vehicle is towed without the owner's or operator's signature on
the form.
(c) In addition to the statements required by Subsection
(b), the department may include on the form under this section any
information the department determines is necessary to enhance
consumer protection relating to incident management tows.
Sec. 2308.235. PROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
AND REPAIR SHOP; ORDER FOR REFUND. (a) The holder of a license
issued under this chapter may not directly or indirectly accept
money or anything of value in connection with the towing of a
vehicle that does not comply with the requirements of Section
2308.233(a).
(b) The executive director or commission may order the
holder of a license issued under this chapter who accepts money or
anything of value as described by Subsection (a) to pay to the
vehicle owner or operator an amount equal to the amount of the value
received.
(c) The executive director or commission may order an auto
repair or auto body repair shop that gives money or anything of
value to the holder of a license issued under this chapter in order
to induce the license holder to tow a vehicle involved in an
incident management tow to an auto repair or auto body repair shop
to refund to the vehicle owner or operator any amount charged by the
repair shop in connection with the tow or storage of the vehicle.
Sec. 2308.236. REQUEST FOR REMOVAL FROM TOW ROTATION LIST.
The commission or executive director may:
(1) report a violation of this subchapter to a
sheriff's office that maintains a list of towing companies under
Section 2308.209; and
(2) request that a towing company that violates this
subchapter be removed from the list maintained by the sheriff's
office.
Sec. 2308.237. GROUNDS FOR REVOCATION OF LICENSE. In
addition to assessing an administrative penalty under Chapter 51 or
this chapter, the executive director or commission may revoke a
license issued under this chapter if, after notice and hearing, the
license holder is found to be in violation of this subchapter.
Sec. 2308.238. MAXIMUM PENALTY; CONTINUING VIOLATION. (a)
Notwithstanding any other provision of Chapter 51 or this chapter,
the amount of an administrative penalty that may be assessed for a
violation of this subchapter may not exceed $10,000 per day for each
violation.
(b) Each day of a continuing violation of this subchapter is
a separate violation.
SECTION 5. Section 2308.455, Occupations Code, is amended
to read as follows:
Sec. 2308.455. CONTENTS OF NOTICE. The notice under
Section 2308.454 must include:
(1) a statement of:
(A) the person's right to submit a request within
30 [14] days for a court hearing to determine whether probable cause
existed to remove, or install a boot on, the vehicle;
(B) the information that a request for a hearing
must contain;
(C) any filing fee for the hearing; and
(D) the person's right to request a hearing in
any justice court in:
(i) the county from which the vehicle was
towed; or
(ii) for booted vehicles, the county in
which the parking facility is located;
(2) the name, address, and telephone number of the
towing company that removed the vehicle or the booting company that
booted the vehicle;
(3) the name, address, telephone number, and county of
the vehicle storage facility in which the vehicle was placed;
(4) the name, street address including city, state,
and zip code, and telephone number of the person, parking facility
owner, or law enforcement agency that authorized the removal of the
vehicle; and
(5) the name, address, and telephone number of each
justice court in the county from which the vehicle was towed or, for
booted vehicles, the county in which the parking facility is
located, or 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.
SECTION 6. Sections 2308.456(a), (c), and (c-1),
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 30th [14th]
day after the date the vehicle was removed and placed in the vehicle
storage facility or booted, excluding Saturdays, Sundays, and legal
holidays.
(c) If notice was not given under Section 2308.454, the
30-day [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.
(c-1) The 30-day [14-day] period for requesting a hearing
under Subsection (a) does not begin until the date on which the
towing company or vehicle storage facility provides to the vehicle
owner or operator the information necessary for the vehicle owner
or operator to complete the material for the request for hearing
required under Subsections (b)(2) through (6).
SECTION 7. Subchapter K, Chapter 2308, Occupations Code, is
amended by adding Section 2308.506 to read as follows:
Sec. 2308.506. SURETY BOND REQUIRED. (a) The commission or
executive director may require the holder of a license issued under
this chapter who commits multiple violations of this chapter or a
rule adopted under this chapter to obtain a surety bond.
(b) The commission by rule shall establish the conditions
and amount of a surety bond required under Subsection (a) based on
the nature, extent, and seriousness of the violations.
(c) A surety bond required under Subsection (a) must:
(1) be issued by a surety authorized to conduct
business in this state;
(2) comply with the applicable requirements of the
Insurance Code;
(3) be payable to the executive director on behalf of
persons who are injured as a result of the license holder's
violation of Chapter 51 or this chapter;
(4) remain in effect for as long as required by the
department; and
(5) be in the form prescribed by the commission.
(d) A surety that issues a bond required by Subsection (a)
shall provide written notice to the department of the surety's
intent to cancel the bond not later than the 60th day before the
date the surety cancels the bond.
SECTION 8. As soon as practicable after the effective date
of this Act, the Texas Department of Licensing and Regulation shall
develop any form and the Texas Commission of Licensing and
Regulation shall adopt any rules to implement the changes in law
made by this Act.
SECTION 9. Sections 2308.455 and 2308.456, Occupations
Code, as amended by this Act, apply only to a notice or a request for
a hearing in connection with the towing or booting of a vehicle on
or after the effective date of this Act. A notice or a request for a
hearing in connection with the towing or booting of a vehicle before
the effective date of this Act is governed by the law in effect when
the vehicle was towed or booted, and the former law is continued in
effect for that purpose.
SECTION 10. This Act takes effect September 1, 2019.