towing bill filed this week

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Please read the attached towing bill filed this week.  It has to do with releasing cargo and body shop transfers.  It also increases the number of days to request a tow hearing from 14 to 30.  There is a lot in it.  I need your comments on it as soon as possible.


By:AAOliverson H.B.ANo.A3434
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of motor vehicle towing, booting, and
storage; authorizing administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTIONA1.AASubchapter D, Chapter 2303, Occupations Code, is
amended by adding Section 2303.1601 to read as follows:
Sec.A2303.1601.AARELEASE OF PERSONAL PROPERTY AND COMMERCIAL
CARGO. (a) In this section, "commercial cargo" means any property
in or on a vehicle that has been transported in interstate or
intrastate commerce.
(b)AAThe operator of a vehicle storage facility shall allow a
person who establishes ownership or right of possession or control
of a vehicle stored at the facility, or an authorized
representative of the person, to remove at no cost any personal
property from the vehicle that may be readily detached from the
vehicle.
(c)AAThe operator of a vehicle storage facility shall allow a
person who demonstrates ownership or right of possession or control
of a vehicle stored at the facility or of commercial cargo contained
in or on a vehicle stored at the facility, or any authorized
representative of the person, to remove any commercial cargo
identified or described by a bill of lading, shipping manifest,
shipping invoice, or similar document.
SECTIONA2.AAChapter 2303, Occupations Code, is amended by
86R12952 BEE-F 1
adding Subchapter E to read as follows:
SUBCHAPTER E. TRANSFER OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
BODY REPAIR SHOP
Sec.A2303.201.AADEFINITIONS. In this subchapter:
(1)AA"Auto body repair shop" means a shop specializing
in the repair of bodies of damaged vehicles.
(2)AA"Auto repair shop" means a shop specializing in
the mechanical repair of vehicles.
(3)AA"Incident management tow" has the meaning assigned
by Section 2308.002.
Sec.A2303.202.AAAPPLICABILITY. This subchapter applies only
to the operator or employee of a vehicle storage facility licensed
under this chapter.
Sec.A2303.203.AANOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
(a) An operator or employee of a vehicle storage facility may
transfer or cause the transfer of a vehicle involved in an incident
management tow from a vehicle storage facility to an auto repair or
auto body repair shop only if:
(1)AAthe facility operator or employee gives the
vehicle owner or operator written notice of the transfer on the form
developed under Section 2303.204; and
(2)AAthe vehicle owner or operator:
(A)AAconsents to the transfer; and
(B)AAsigns the form.
(b)AAA vehicle storage facility operator shall retain any
records of the storage and release of a vehicle involved in an
incident management tow, including a copy of the form signed under

H.B.ANo.A3434
2
Subsection (a)(2).
Sec.A2303.204.AAFORM FOR NOTICE REGARDING TRANSFER. (a) The
department shall develop a form to provide notice to an owner or
operator of a vehicle involved in an incident management tow
regarding the transfer of the vehicle from a vehicle storage
facility to an auto repair or auto body repair shop.
(b)AAThe form must include statements that:
(1)AAauto repair and auto body repair shops are not
regulated by the state; and
(2)AAthe vehicle owner or operator:
(A)AAis not required to transfer the vehicle from
the vehicle storage facility to an auto repair or auto body repair
shop;
(B)AAwill be subject to payment of unregulated
fees and charges to secure release of the vehicle from an auto
repair or auto body repair shop if the owner or operator consents to
the transfer; and
(C)AAmay file a complaint with the department if
the vehicle is transferred without the owner ’s or operator ’s
signature on the form.
(c)AAIn addition to the statements required by Subsection
(b), the department may include on the form under this section any
information the department determines is necessary to enhance
consumer protection relating to incident management tows.
Sec.A2303.205.AAPROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
AND REPAIR SHOP; ORDER FOR REFUND. (a) An operator or employee of a
vehicle storage facility may not directly or indirectly accept

H.B.ANo.A3434

money or anything of value in connection with the transfer of a
vehicle that does not comply with Section 2303.203(a).
(b)AAThe executive director or commission may order an
operator or employee of a vehicle storage facility who accepts
money or anything of value as described by Subsection (a) to pay to
the vehicle owner or operator an amount equal to the amount of the
value received.
(c)AAThe executive director or commission may order an auto
repair or auto body repair shop that gives money or anything of
value to an operator or employee of a vehicle storage facility in
order to induce the transfer of a vehicle involved in an incident
management tow to the auto repair or auto body repair shop to refund
to the vehicle owner or operator any amount charged by the repair
shop in connection with the transfer or storage of the vehicle.
Sec.A2303.206.AAGROUNDS FOR REVOCATION OF LICENSE. In
addition to assessing an administrative penalty under Chapter 51 or
this chapter, the executive director or commission may revoke a
license issued under this chapter if, after notice and hearing, the
license holder is found to be in violation of this subchapter.
Sec.A2303.207.AAMAXIMUM PENALTY; CONTINUING VIOLATION. (a)
Notwithstanding any other provision of Chapter 51 or this chapter,
the amount of an administrative penalty that may be assessed for a
violation of this subchapter may not exceed $10,000 per day for each
violation.
(b)AAEach day of a continuing violation of this subchapter is
a separate violation.
SECTIONA3.AASubchapter G, Chapter 2303, Occupations Code, is

H.B.ANo.A3434
4
amended by adding Section 2303.306 to read as follows:
Sec.A2303.306.AASURETY BOND REQUIRED. (a) The commission or
executive director may require the holder of a license issued under
this chapter who commits multiple violations of this chapter or a
rule adopted under this chapter to obtain a surety bond.
(b)AAThe commission by rule shall establish the conditions
and amount of a surety bond required under Subsection (a) based on
the nature, extent, and seriousness of the violations.
(c)AAA surety bond required under Subsection (a) must:
(1)AAbe issued by a surety authorized to conduct
business in this state;
(2)AAcomply with the applicable requirements of the
Insurance Code;
(3)AAbe payable to the executive director on behalf of
persons who are injured as a result of the license holder ’s
violation of Chapter 51 or this chapter;
(4)AAremain in effect for as long as required by the
department; and
(5)AAbe in the form prescribed by the commission.
(d)AAA surety that issues a bond required by Subsection (a)
shall provide written notice to the department of the surety ’s
intent to cancel the bond not later than the 60th day before the
date the surety cancels the bond.
SECTIONA4.AAChapter 2308, Occupations Code, is amended by
adding Subchapter E-1 to read as follows:
SUBCHAPTER E-1. TOWING OF CERTAIN VEHICLES TO AUTO REPAIR OR AUTO
BODY REPAIR SHOP

H.B.ANo.A3434
5
Sec.A2308.231.AADEFINITIONS. In this subchapter, "auto body
repair shop" and "auto repair shop" have the meanings assigned by
Section 2303.201.
Sec.A2308.232.AAAPPLICABILITY. This subchapter applies only
to a towing company or operator licensed under this chapter.
Sec.A2308.233.AANOTICE AND SIGNATURE REQUIRED FOR TRANSFER.
(a) A towing company or operator may tow or cause the towing of a
vehicle involved in an incident management tow to an auto repair or
auto body repair shop only if:
(1)AAthe towing company or operator gives the vehicle
owner or operator written notice of the transfer on the form
developed under Section 2308.234; and
(2)AAthe vehicle owner or operator:
(A)AAconsents to the transfer; and
(B)AAsigns the form.
(b)AAA towing company shall retain any records of the storage
and release of a vehicle involved in an incident management tow,
including a copy of the form signed under Subsection (a)(2).
Sec.A2308.234.AAFORM FOR NOTICE REGARDING TRANSFER. (a) The
department shall develop a form to provide notice to an owner or
operator of a vehicle involved in an incident management tow
regarding the towing of the vehicle to an auto repair or auto body
repair shop.
(b)AAThe form must include statements that:
(1)AAauto repair and auto body repair shops are not
regulated by the state; and
(2)AAthe vehicle owner or operator:

H.B.ANo.A3434
6
(A)AAis not required to have the vehicle towed to
an auto repair or auto body repair shop;
(B)AAwill be subject to payment of unregulated
fees and charges to secure release of the vehicle from an auto
repair or auto body repair shop if the owner or operator consents to
the tow; and
(C)AAmay file a complaint with the department if
the vehicle is towed without the owner ’s or operator ’s signature on
the form.
(c)AAIn addition to the statements required by Subsection
(b), the department may include on the form under this section any
information the department determines is necessary to enhance
consumer protection relating to incident management tows.
Sec.A2308.235.AAPROHIBITED ACTIVITY BETWEEN LICENSE HOLDER
AND REPAIR SHOP; ORDER FOR REFUND. (a) The holder of a license
issued under this chapter may not directly or indirectly accept
money or anything of value in connection with the towing of a
vehicle that does not comply with the requirements of Section
2308.233(a).
(b)AAThe executive director or commission may order the
holder of a license issued under this chapter who accepts money or
anything of value as described by Subsection (a) to pay to the
vehicle owner or operator an amount equal to the amount of the value
received.
(c)AAThe executive director or commission may order an auto
repair or auto body repair shop that gives money or anything of
value to the holder of a license issued under this chapter in order

H.B.ANo.A3434
7
to induce the license holder to tow a vehicle involved in an
incident management tow to an auto repair or auto body repair shop
to refund to the vehicle owner or operator any amount charged by the
repair shop in connection with the tow or storage of the vehicle.
Sec.A2308.236.AAREQUEST FOR REMOVAL FROM TOW ROTATION LIST.
The commission or executive director may:
(1)AAreport a violation of this subchapter to a
sheriff ’s office that maintains a list of towing companies under
Section 2308.209; and
(2)AArequest that a towing company that violates this
subchapter be removed from the list maintained by the sheriff ’s
office.
Sec.A2308.237.AAGROUNDS FOR REVOCATION OF LICENSE. In
addition to assessing an administrative penalty under Chapter 51 or
this chapter, the executive director or commission may revoke a
license issued under this chapter if, after notice and hearing, the
license holder is found to be in violation of this subchapter.
Sec.A2308.238.AAMAXIMUM PENALTY; CONTINUING VIOLATION. (a)
Notwithstanding any other provision of Chapter 51 or this chapter,
the amount of an administrative penalty that may be assessed for a
violation of this subchapter may not exceed $10,000 per day for each
violation.
(b)AAEach day of a continuing violation of this subchapter is
a separate violation.
SECTIONA5.AASection 2308.455, Occupations Code, is amended
to read as follows:
Sec.A2308.455.AACONTENTS OF NOTICE. The notice under

H.B.ANo.A3434
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Section 2308.454 must include:
(1)AAa statement of:
(A)AAthe person ’s right to submit a request within
30 [14] days for a court hearing to determine whether probable cause
existed to remove, or install a boot on, the vehicle;
(B)AAthe information that a request for a hearing
must contain;
(C)AAany filing fee for the hearing; and
(D)AAthe person ’s right to request a hearing in
any justice court in:
(i)AAthe county from which the vehicle was
towed; or
(ii)AAfor booted vehicles, the county in
which the parking facility is located;
(2)AAthe name, address, and telephone number of the
towing company that removed the vehicle or the booting company that
booted the vehicle;
(3)AAthe name, address, telephone number, and county of
the vehicle storage facility in which the vehicle was placed;
(4)AAthe name, street address including city, state,
and zip code, and telephone number of the person, parking facility
owner, or law enforcement agency that authorized the removal of the
vehicle; and
(5)AAthe name, address, and telephone number of each
justice court in the county from which the vehicle was towed or, for
booted vehicles, the county in which the parking facility is
located, or the address of an Internet website maintained by the

H.B.ANo.A3434
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Office of Court Administration of the Texas Judicial System that
contains the name, address, and telephone number of each justice
court in that county.
SECTIONA6.AASections 2308.456(a), (c), and (c-1),
Occupations Code, are amended to read as follows:
(a)AAExcept as provided by Subsections (c) and (c-1), a
person entitled to a hearing under this chapter must deliver a
written request for the hearing to the court before the 30th [14th]
day after the date the vehicle was removed and placed in the vehicle
storage facility or booted, excluding Saturdays, Sundays, and legal
holidays.
(c)AAIf notice was not given under Section 2308.454, the
30-day [14-day] deadline for requesting a hearing under Subsection
(a) does not apply, and the owner or operator of the vehicle may
deliver a written request for a hearing at any time.
(c-1)AAThe 30-day [14-day] period for requesting a hearing
under Subsection (a) does not begin until the date on which the
towing company or vehicle storage facility provides to the vehicle
owner or operator the information necessary for the vehicle owner
or operator to complete the material for the request for hearing
required under Subsections (b)(2) through (6).
SECTIONA7.AASubchapter K, Chapter 2308, Occupations Code, is
amended by adding Section 2308.506 to read as follows:
Sec.A2308.506.AASURETY BOND REQUIRED. (a) The commission or
executive director may require the holder of a license issued under
this chapter who commits multiple violations of this chapter or a
rule adopted under this chapter to obtain a surety bond.

H.B.ANo.A3434
10
(b)AAThe commission by rule shall establish the conditions
and amount of a surety bond required under Subsection (a) based on
the nature, extent, and seriousness of the violations.
(c)AAA surety bond required under Subsection (a) must:
(1)AAbe issued by a surety authorized to conduct
business in this state;
(2)AAcomply with the applicable requirements of the
Insurance Code;
(3)AAbe payable to the executive director on behalf of
persons who are injured as a result of the license holder ’s
violation of Chapter 51 or this chapter;
(4)AAremain in effect for as long as required by the
department; and
(5)AAbe in the form prescribed by the commission.
(d)AAA surety that issues a bond required by Subsection (a)
shall provide written notice to the department of the surety ’s
intent to cancel the bond not later than the 60th day before the
date the surety cancels the bond.
SECTIONA8.AAAs soon as practicable after the effective date
of this Act, the Texas Department of Licensing and Regulation shall
develop any form and the Texas Commission of Licensing and
Regulation shall adopt any rules to implement the changes in law
made by this Act.
SECTIONA9.AASections 2308.455 and 2308.456, Occupations
Code, as amended by this Act, apply only to a notice or a request for
a hearing in connection with the towing or booting of a vehicle on
or after the effective date of this Act. A notice or a request for a

H.B.ANo.A3434
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hearing in connection with the towing or booting of a vehicle before
the effective date of this Act is governed by the law in effect when
the vehicle was towed or booted, and the former law is continued in
effect for that purpose.
SECTIONA10.AAThis Act takes effect September 1, 2019.

New Associate Member - TowTrax

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TDLR Notice-Effective Immediately!

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Effective immediately, the Texas Department of Licensing and Regulation (TDLR) is discontinuing periodic inspections of tow companies. Local jurisdictions have ordinances overseeing tow company and tow truck operations, and the Texas Department of Transportation and Texas Department of Motor Vehicles also inspect tow trucks, depending on their size. Discontinuing these periodic, routine inspections will reduce the redundant regulatory burdens on this industry and allow both TDLR and licensees to more efficiently use their time and limited resources to perform additional time-intensive inspections of massage, cosmetology and vehicle storage facility establishments.

Texas law does not require TDLR to perform periodic inspections of tow companies or tow trucks. Further, there have been no serious health or safety violations identified by TDLR during these inspections. TDLR will continue to investigate complaints received regarding tow companies, check insurance, and perform spot inspections when necessary.

Peak Trailer Group Forms Peak Wrecker LLC

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Peak Wrecker to Sell & Service Wreckers from Miller Industries

 

February 4, 2019 – Peak Trailer Group is pleased to announce the formation of Peak Wrecker LLC. Peak Wrecker provides Miller Industries wrecker bodies and towing equipment fabrication, installation, and service in south Texas. Peak Wrecker supports Miller’s Vulcan, Century, and Holmes product lines, along with all makes of used wreckers. Peak Wrecker also carries towing trailers from Trail-Eze.

Peak has pulled together a team of industry veterans to sell and service wreckers from their San Antonio, Texas, facility.

• Jim Paules, General Manager for Peak Trailer and Peak Wrecker in San Antonio, has a history with Miller Industries, after working at commercial truck dealerships for over 20 years. Prior to joining Peak in November 2017, Jim was the general manager for a large Miller Distributor in the U.S.

• Randy Olson, Peak Wrecker Sales Manager for New & Used Wreckers, previously worked for Miller Industries for 27 years, as National Sales Manager, then Vice President of Marketing. After leaving Miller Industries, Randy managed the operations of a wrecker distributorship for 1.5 years. He is passionate about the towing industry and serves on the Towing and Recovery Association of America Education Foundation and was inducted into the International Towing and Recovery Hall of Fame.

• Curtis Sanchez, Peak Wrecker Parts Sales, has been selling wrecker parts for over 30 years. He worked for a couple of towing equipment companies, then for Miller Industries from August 1995-August 2003. While at Miller, Curtis designed their Accessory Department. His career then took him to various towing and parts companies. Curtis has experience installing towing equipment and bodies, rewiring, welding, and purchasing parts and bodies.

Along with installers and other service personnel, the Peak Wrecker team is ready to provide customers with new and used wreckers, plus the aftermarket service and support to maintain those vehicles.

Bobby Briggs, Peak Group President said, “We are extremely excited about the formation of Peak Wrecker and our ability to sell and service wreckers from Miller Industries, the leader in towing and recovery equipment. The addition of wreckers is a great fit for Peak, and allows us to offer our customers a full line of products from one of the most trust manufacturers in the wrecker industry.

Peak Wrecker was officially formed on October 24, 2018, and a contract signed with Miller Industries in December 2018. Peak Wrecker is in the process of stocking their San Antonio location, where they are ready to serve the South and Central Texas area with 46 oversized bays and awnings, 2 paint booths, and a truck equipment manufacturing department. They have the capacity to house up to 90 wrecker trucks (including car carriers, light-duty and heavy-duty wreckers, rotators, and heavy haul trailers) and have a large inventory of parts under one roof to ensure that quality upfitting and repairs are completed efficiently.

 

About Miller Industries

Miller Industries was founded in 1990. Since its inception, the company has provided innovative high quality towing and recovery equipment worldwide. Listed as “MLR” on the New York Stock Exchange, Miller Industries has a total of four manufacturing facilities in the United States, one in England, and one in France. They place the most stringent guidelines in the design of a new wrecker or carrier. Their educated sales and distribution network, along with a high level of support and service after the sale, is what makes Miller Industries’ brands of wreckers unmatched in the industry. They provide a complete line of quality equipment, including carriers up to 30 feet in length, with deck capabilities of up to 40,000 lbs., and towing recovery units with boom capacities of 75 tons. Miller brands include Century, Vulcan, Chevron, and Holmes. Visit www.millerind.com for additional information.

About Peak Trailer Group

Peak Trailer Group is a privately-held company co-owned by Summit Holdings, Kyrish Truck Centers, and Southwest International Trucks. The company operates 2 full-service trailer sales, parts, service, and body shop locations in Dallas and San Antonio, Texas; as well as a sales location in El Paso, Texas. Peak Trailer Group represents Wabash National^® dry and refrigerated van trailers, as well as Transcraft^® platform trailers in the entire states of Texas and Oklahoma, and in northern Louisiana. Peak also represents Dura-Haul^® belt trailers, end dumps, silage trailers, and belly dumps, and Trail-Eze heavy-haul trailers in the entire state of Oklahoma and parts of Texas; and Reitnouer aluminum flatbed, drop-deck, and specialty trailers in the states of Texas and Oklahoma. Peak Wrecker LLC, located in San Antonio, Texas, provides Miller Industries wrecker bodies and towing equipment fabrication, installation, and service in south Texas. Peak Wrecker sells Miller’s new product lines of Vulcan, Century, and Holmes, along with all makes of used wreckers. Peak Wrecker also carries towing trailers from Trail-Eze.

 

Peak has over 100 employees, with 55 technicians, over 80 service/tank bays, 8 mobile service and repair trucks, 2 body shops, and 4 paint booths. Peak stocks all-makes parts, offers new and used trailers and wreckers, and can facilitate equipment financing. Learn more at www.peaktrailergroup.com and www.peakwrecker.com.

86th Legislative Session

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The Legislature convened the 86^th Legislative Session on Tuesday, January 8^th and a lot of legislative “housekeeping” items have been going on since. 

 The House voted unanimously to elevate Dennis Bonnen as their Speaker of the House.  Speaker Bonnen gave a very moving acceptance speech.  Last week the Governor and Lieutenant Governor were inaugurated and George Strait played at the Inaugural Ball. 

 As of this email, 1,471 pieces of legislation have been filed by legislators.   Of those, we are tracking 5 bills that will have an impact on the towing industry.   Two of those bills will have a detrimental impact to your business. 

 HB 625 by Victoria Neave Relating to notice and request for a hearing regarding a vehicle that has been towed or booted.  HB 625 would allow a vehicle owner 60 days, instead of the current law of 14 days, to request a hearing.

 HB 626 by Victoria Neave Relating to notice of a person’s right to a hearing placed on a sign prohibiting unauthorized vehicles on a parking facility.   This bill would require a statement describing a person’s right to request a court hearing to determine whether probable cause existed to remove, or install a boot on, a vehicle.

 Last week, Senator Nelson filed Senate Bill 1, the budget bill.  Likewise, the Legislative Budget Board released, what we believe will be, the House budget bill.  The House budget will not be filed until the House Committee assignments come out later this month, but I would anticipate that the language will be identical. 

 Additionally, the Lieutenant Governor issued committee assignments on Friday.  You may access the complete list with this link.  https://senate.texas.gov/_assets/pdf/86th_Senate_Committees.pdf  Senate bills will start being referred to the committees of jurisdiction this week and the Senate Finance Committee will begin their budget hearings tomorrow with an organization meeting.

 There are key dates that we will be working under.  As soon as we have a copy of the House Rules Calendar, I will provide a copy to you.  As many of you may know, the House and Senate are not allowed, under the Constitution to pass any bills during the first sixty days, unless it is declared an emergency item by the Governor.  That being said, the committees can hold hearings on bills during that time. 

Southwest Tow Operators