Bill Text: TX SB1501 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the regulation of motor vehicle towing, booting, and storage and to the elimination of required state licensing for vehicle booting companies and operators; creating a criminal offense.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2017-06-15 - See remarks for effective date [SB1501 Detail]

Download: Texas-2017-SB1501-Comm_Sub.html

---

By: Zaffirini S.B. No. 1501
(In the Senate - Filed March 8, 2017; March 20, 2017, read
first time and referred to Committee on Business & Commerce;
April 18, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 18, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1501 By: Zaffirini

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of motor vehicle towing, booting, and
storage and to the elimination of required state licensing for
vehicle booting companies and operators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. Section 2308.002, Occupations Code, is amended
by amending Subdivisions (1) and (8-a) and adding Subdivisions
(5-b) and (8-b) to read as follows:
(1) "Advisory board" means the Towing and[,] Storage[,
and Booting] Advisory Board.
(5-b) "Local authority" means a state or local
governmental entity authorized to regulate traffic or parking and
includes:
(A) an institution of higher education; and
(B) a political subdivision, including a county,
municipality, special district, junior college district, housing
authority, or other political subdivision of this state.
(8-a) "Peace officer" means a person who is a peace
officer under Article 2.12, Code of Criminal Procedure.
(8-b) "Private property tow" means any tow of a
vehicle authorized by a parking facility owner without the consent
of the owner or operator of the vehicle.
SECTION 3. Effective September 1, 2018, Section 2308.004,
Occupations Code, is amended to read as follows:
Sec. 2308.004. EXEMPTION. Sections 2308.151(b),
2308.2085, 2308.257, and 2308.258 do [(a) This chapter does] not
apply to:
(1) a person who, while exercising a statutory or
contractual lien right with regard to a vehicle:
(A) [(1)] installs or removes a boot; or
(B) [(2)] controls, installs, or directs the
installation and removal of one or more boots; or[.]
(2) [(b) This chapter does not apply to] a commercial
office building owner or manager who installs or removes a boot in
the building's parking facility.
SECTION 4. 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 5. Effective September 1, 2018, 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
subchapter, a person may not:
(1) perform towing operations; or
(2) operate a towing company.[;]
(b) Unless a person is authorized by a local authority under
Section 2308.2085, a person may not:
(1) [(3)] perform booting operations; or
(2) [(4)] operate a booting company.
SECTION 6. 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 7. Section 2308.255, Occupations Code, is amended
to read as follows:
Sec. 2308.255. TOWING COMPANY'S [OR BOOT OPERATOR'S]
AUTHORITY TO TOW [REMOVE] AND STORE [OR BOOT] UNAUTHORIZED VEHICLE.
(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 the vehicle to [remove] and store the
vehicle 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) are posted; 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 tow [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) a peace officer; or
(B) 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
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.
(e) When a tow truck is used for a nonconsent tow authorized
by a peace officer under Section 545.3051, Transportation Code, the
operator of the tow truck and the towing company are agents of the
law enforcement agency and are subject to Section 545.3051(e),
Transportation Code.
SECTION 8. Section 2308.257, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A boot operator that installs a boot on a vehicle must
affix a conspicuous notice to the vehicle's front windshield or
driver's side window stating:
(1) that the vehicle has been booted and damage may
occur if the vehicle is moved;
(2) the date and time the boot was installed;
(3) the name, address, and telephone number of the
booting company;
(4) a telephone number that is answered 24 hours a day
to enable the owner or operator of the vehicle to arrange for
removal of the boot;
(5) the amount of the fee for removal of the boot and
any associated parking fees; [and]
(6) notice of the right of a vehicle owner or vehicle
operator to a hearing under Subchapter J; and
(7) in the manner prescribed by the local authority,
notice of the procedure to file a complaint with the local authority
for violation of this chapter by a boot operator.
(b-1) No more than one boot may be installed on a vehicle at
any time.
SECTION 9. Subchapter F, Chapter 2308, Occupations Code, is
amended by adding Section 2308.258 to read as follows:
Sec. 2308.258. BOOT REMOVAL. (a) A booting company
responsible for the installation of a boot on a vehicle shall remove
the boot not later than one hour after the time the owner or
operator of the vehicle contacts the company to request removal of
the boot.
(b) A booting company shall waive the amount of the fee for
removal of a boot, excluding any associated parking fees, if the
company fails to have the boot removed within the time prescribed by
Subsection (a).
SECTION 10. 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 11. (a) The following provisions of the
Occupations Code are repealed:
(1) Section 2308.002(9); and
(2) Section 2308.103(d).
(b) Effective September 1, 2018, Sections 2308.1555 and
2308.1556, Occupations Code, are repealed.
SECTION 12. (a) On September 1, 2018, a license issued
under former Section 2308.1555 or 2308.1556, Occupations Code,
expires.
(b) 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.
(c) The changes in law made by this Act to Section 2308.255,
Occupations Code, do not apply to the booting of a vehicle pursuant
to 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 pursuant to 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 13. This Act takes effect only if a specific
appropriation for the implementation of the Act is provided in a
general appropriations act of the 85th Legislature.
SECTION 14. Except as otherwise provided by this Act, this
Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39,
Article III, Texas Constitution. If this Act does not receive the
vote necessary for immediate effect, this Act takes effect
September 1, 2017.
* * * * *