Relating to towing fee studies and the amount of nonconsent towing fees in certain political subdivisions; authorizing an increase in existing fees; authorizing a fee.

89(R) HB 5499 - Engrossed version - Bill Text

89R24078 RDR-D

By: LaHood

H.B. No. 5499

A BILL TO BE ENTITLED

AN ACT

relating to towing fee studies and the amount of nonconsent towing

fees in certain political subdivisions; authorizing an increase in

existing fees; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2308.203, Occupations Code, is amended

to read as follows:

Sec. 2308.203. TOWING FEE STUDIES
; RATE ADJUSTMENT

REQUIRED
. (a) The governing body of a political subdivision that

regulates nonconsent tow fees shall
conduct or contract to conduct

a study on the fees for nonconsent tows originating in the territory

of the political subdivision at least once every two years

[
establish procedures by which a towing company may request that a

towing fee study be performed
].

(b)
Not later than 30 days after receiving the results of a

towing fee study described by Subsection (a), the
[
The
] governing

body of the political subdivision shall
:

(1)

publish the results of the towing fee study and the

methodology used to conduct the study on the political

subdivision's publicly accessible Internet website; and

(2)
establish or amend the allowable fees for

nonconsent tows at amounts that represent the fair value of the

services of a towing company and are reasonably related to any

financial or accounting information provided to the governing body.

(c)

If a political subdivision does not establish or amend

the allowable fees for nonconsent tows as required by Subsection

(b), the amount of fees that may be charged or collected in

connection with a nonconsent tow originating in the territory of

the political subdivision:

(1)

defaults to the fee for a nonconsent tow

established by commission rule under Section 2308.0575; and

(2)

may not be established or amended by the governing

body of the political subdivision as authorized by Subsection (b)

until another towing fee study is conducted.

(d)

Subsection (c) applies only to a political subdivision

in a county with a population of 750,000 or more.

(e)

In addition to the other fees authorized under this

section, the governing body of a political subdivision may impose

an administrative fee for each nonconsent tow originating in the

political subdivision in an amount reasonably necessary to cover

the political subdivision's cost of conducting a towing fee study

under this section. The political subdivision shall maintain a

separate account for administrative fees collected under this

subsection. Administrative fees collected under this subsection

may be used only by the governing body of the political subdivision

to cover costs associated with conducting or contracting to conduct

a towing fee study under this section.

SECTION 2. Section 2308.505, Occupations Code, is amended

by amending Subsection (a) and adding Subsection (c) 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, 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

filed with the department under Section 2308.206;

[
(5)
] violates Section 2308.205; or

(4)
[
(6)
] violates a rule of the department applicable

to a tow truck, towing company, or booting company.

(c)

It is a defense to prosecution under Subsection (a)(2)

that the person charges or collects a fee in a political subdivision

that regulates the operation of tow trucks under Section 2308.202

in an amount that is authorized under Section 2308.203(c)(1) or

(e).

SECTION 3. The change in law made by this Act to Section

2308.505, Occupations Code, applies only to an offense committed on

or after the effective date of this Act. An offense committed

before the effective date of this Act is governed by the law in

effect on the date the offense was committed, and the former law is

continued in effect for that purpose. For purposes of this section,

an offense was committed before the effective date of this Act if

any element of the offense occurred before that date.

SECTION 4. This Act takes effect September 1, 2025.