Bill Text: TX HB2508 | 2017-2018 | 85th Legislature | Engrossed

Bill Title: 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-09 - Referred to Business & Commerce [HB2508 Detail]

Download: Texas-2017-HB2508-Engrossed.html
 
 
  By: Kuempel 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.
         (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)  Before 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 Subsection
  (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.
         (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 OR LOCAL AUTHORIZATION REQUIRED.
  (a) 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.
         (b)  Unless prohibited by a local authority under Section
  2308.2085, a person may:
               (1) [; (3)]  perform booting operations; or
               (2) [(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.  Section 2308.205(a), Occupations Code, is
  amended to read as follows:
         (a)  A towing company that makes a nonconsent tow shall tow
  the vehicle to a vehicle storage facility that is operated by a
  person who holds a license to operate the facility under Chapter
  2303, unless:
               (1)  the towing company agrees to take the vehicle to a
  location designated by the vehicle's owner; or
               (2)  the vehicle is towed under Section 2308.259(b).
         SECTION 1.49.  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 1.50.  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 1.51.  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 1.52.  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 1.53.  Subchapter F, Chapter 2308, Occupations Code,
  is amended by adding Sections 2308.258 and 2308.259 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).
         (c)  A booting company responsible for the installation of
  more than one boot on a vehicle may not charge a total amount for the
  removal of the boots that is greater than the amount of the fee for
  the removal of a single boot.
         Sec. 2308.259.  TOWING COMPANY'S AUTHORITY TO TOW VEHICLE
  FROM UNIVERSITY PARKING FACILITY. (a) In this section:
               (1)  "Special event" means a university-sanctioned,
  on-campus activity, including parking lot maintenance.
               (2)  "University" means:
                     (A)  a public senior college or university, as
  defined by Section 61.003, Education Code; or
                     (B)  a private or independent institution of
  higher education, as defined by Section 61.003, Education Code.
         (b)  Subject to Subsection (c), an individual designated by a
  university may, to facilitate a special event, request that a
  vehicle parked at a university parking facility be towed to another
  location on the university campus.
         (c)  A vehicle may not be towed under Subsection (b) unless
  signs complying with this section are installed on the parking
  facility for the 72 hours preceding towing enforcement for the
  special event and for 48 hours after the conclusion of the special
  event.
         (d)  Each sign required under Subsection (c) must:
               (1)  contain:
                     (A)  a statement of:
                           (i)  the nature of the special event; and
                           (ii)  the dates and hours of towing
  enforcement; and
                     (B)  the number, including the area code, of a
  telephone that is answered 24 hours a day to identify the location
  of a towed vehicle;
               (2)  face and be conspicuously visible to the driver of
  a vehicle that enters the facility;
               (3)  be located:
                     (A)  on the right or left side of each driveway or
  curb-cut through which a vehicle can enter the facility, including
  an entry from an alley abutting the facility; or
                     (B)  at intervals along the entrance so that no
  entrance is farther than 25 feet from a sign if:
                           (i)  curbs, access barriers, landscaping, or
  driveways do not establish definite vehicle entrances onto a
  parking facility from a public roadway other than an alley; and
                           (ii)  the width of an entrance exceeds 35
  feet;
               (4)  be made of weather-resistant material;
               (5)  be at least 18 inches wide and 24 inches tall;
               (6)  be mounted on a pole, post, wall, or free-standing
  board; and
               (7)  be installed so that the bottom edge of the sign is
  no lower than two feet and no higher than six feet above ground
  level.
         (e)  If a vehicle is towed under Subsection (b), personnel
  must be available to:
               (1)  release the vehicle within two hours after a
  request for release of the vehicle; and
               (2)  accept any payment required for the release of the
  vehicle.
         (f)  A university may not charge a fee for a tow under
  Subsection (b) that exceeds 75 percent of the private property tow
  fee established under Section 2308.0575.
         (g)  A vehicle towed under Subsection (b) that is not claimed
  by the vehicle owner or operator within 48 hours after the
  conclusion of the special event may only be towed:
               (1)  without further expense to the vehicle owner or
  operator; and
               (2)  to another location on the university campus.
         (h)  The university must notify the owner or operator of a
  vehicle towed under Subsection (b) of the right of the vehicle owner
  or operator to a hearing under Subchapter J.
         SECTION 1.54.  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 1.55.  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 1.56.  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 1.57.  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 1.58.  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 1.59.  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 1.60.  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 1.61.  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 1.62.  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 1.63.  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 1.64.  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 1.65.  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 1.66.  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 1.67.  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 1.68.  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 1.69.  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 1.70.  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 1.71.  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 1.72.  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.

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