HBA-KMH,LCA C.S.H.B. 1708 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1708 By: Maxey Transportation 4/18/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE In 1995, the U.S. Congress deregulated the towing industry, removing the ability of a municipality or county to regulate a towing company that tows a vehicle from private property without the consent of the vehicle's owner or operator. Shortly thereafter, an amendment was passed that authorized the regulation of fees for a tow without consent. C.S.H.B. 1708 amends the Transportation Code to provide a maximum fee schedule, determined by the gross weight of a vehicle, a towing company may charge for a nonconsensual tow from public or private property. This bill also provides clarification of a towing company's ability to charge a "drop fee," which allows the owner or operator of a vehicle to pay $30 to a tow truck operator for the release of a car that has been prepared for towing, but which has not yet been moved. This bill provides that a violation of this section by a towing company or its representative constitutes a Class A misdemeanor, and provides that this section only applies when a local rule, order, or ordinance does not exist. C.S.H.B. 1708 adds a requirement that a towing company must carry a minimum amount of cargo insurance for each tow truck, and defines "towing company" as a person operating a tow truck registered under Chapter 643, Transportation Code (Motor Carrier Registration). RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 643, Transportation Code, by adding Sections 643.203 and 643.024, as follows: Sec. 643.203. MAXIMUM CHARGE FOR NONCONSENT TOW. (a) Provides that this section applies to a vehicle defined by Section 541.201 (Vehicles), Transportation Code, which is to be towed from public or private property by a towing company, as defined by Section 684.001, Transportation Code (Definitions), without the consent of the owner or operator of the vehicle. (b) Sets forth a schedule, based upon vehicle weight and size, for the maximum amount a company may charge for a tow. (c) Requires an operator of a tow truck to release a vehicle to its owner or operator if the vehicle has not been moved, is fully prepared to be towed legally, and the owner or operator pays a $30 fee to the operator of the tow truck. (d) Requires the towing company to issue to the owner or operator of the vehicle a receipt for a fee charged under this section and keep a copy of the receipt at the towing company's place of business until the second anniversary of the tow date. (e) Provides that a towing company or tow truck operator commits an offense by violating this section. Provides that such an offense is a Class A misdemeanor.. (f) Provides that an order, rule, or ordinance of a political subdivision of this state controls any conflict between this section and such an order, rule, or ordinance. Sec. 643.204. INSURANCE REQUIREMENT FOR A TOWING COMPANY. Provides that a towing company, as defined by Section 684.001, must have on-hook cargo insurance coverage in a minimum amount of $25,000 for each tow truck the company operates. SECTION 2. Amends Section 684.001(5), Transporation Code, to provide that "towing company" means a person operating a tow truck under Chapter 643, Transportation Code (Motor Carrier Registration). SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1 of the substitute modifies the original as follows: Modifies proposed Section 643.203, Transportation Code (Maximum Charge for Nonconsent Tow), as follows: Modifies proposed Section 643.203(b)(1) to increase the maximum nonconsent tow fee cap from $80 to $90, increase the gross weight rating cap in this fee class from 8,500 pounds or less to 10,000 pounds or less, and to delete length and width limits. Modifies proposed Section 643.203(b)(2) to increase the gross weight rating for this class from between 8,500 and 14,000 pounds to between 10,000 and 26,001 pounds, and to delete length and width limits. Modifies proposed Section 643.203(b)(3) to provide that a vehicle with a gross weight of more than 26,001 pounds has a tow fee cap of $300. Modifies proposed Section 643.203(c) to require the owner or operator of a tow truck to release a vehicle to its owner or operator if the owner or operator of the vehicle pays $30 to the tow truck operator, and if the tow truck operator has fully prepared the vehicle for legal towing but has not yet moved the vehicle. Language in the original added the drop fee to the full tow fee, and did not provide for the release of the vehicle's release before towing. Modifies proposed Section 643.203(d) to require a towing company to keep receipts on file for two years, rather not specifying a time amount. Deletes proposed Section 643.203(e), which provided for a regular maximum-fee-cap increase. Redesigates proposed Subsection (f) of the original as substituted Subsection (e), which provides that an offense under this section constitutes a Class A midemeanor. Changes language in the redesignated subsection to clarify that this section applies to towing companies and operators, rather than to persons. Adds Subsection (f) to provide that any local order, rule, or ordinance which conflicts with this section prevails. Adds Section 603.204 (Insurance Requirement for Towing Company) to establish minimum required cargo insurance coverage per tow truck for a towing company. SECTION 2 of the original, which amended Section 643.251(a), Transportation Code (Administrative Penalty), to provide for an administrative penalty under this section, is deleted. SECTION 3 of the original is redesignated to SECTION 2 of the substitute. SECTIONS 4 (effective date) and 5 (emergency clause) of the original are redesignated to SECTIONS 3 and 4, respectively.