Vehicle Storage Facilities Penalties and Sanctions
Texas Occupations Code, Chapter 2303
Texas Occupations Code, Chapter 2308
16 Texas Administration Code, Chapter 85
Texas Occupations Code, Chapter 51
16 Texas Administrative Code, Chapter 60
Class A
Penalty: $200 up to $800
POSTING AND PUBLIC INFORMATION VIOLATIONS
Violation |
Rule/Statute |
Failed to provide a copy of a nonconsent tow fees schedule on request |
2303.1551(b);
85.1003(c)(1)
|
Nonconsent tow ticket did not contain all required tow company information |
85.706(c) |
Failed to notify the vehicle owner of the Department’s website and email address, mailing address, and telephone number where required |
85.707 |
ADMINISTRATIVE VIOLATIONS
Violation |
Rule/Statute |
Failed to complete all corrective actions following an inspection and provide written verification to the Department |
85.453(a)(2) |
Engaged in false, misleading, or deceptive advertising |
85.701 |
Failed to notify the Department of a change of an operator’s mailing or physical address no later than the effective date of change |
85.702(a)(2) |
Failed to notify the Department of a change in the facility’s storage capacity no later than the effective date of change |
85.702(a)(3) |
Failed to notify the Department of a change in the company’s drug testing policy |
85.702(a)(4) |
Accepted a vehicle for storage but did not make or maintain a valid and current copy of the tow operator’s license and the cab card for the driver and truck delivering the vehicle |
85.706(d) |
Allowed an unpermitted tow truck to enter onto the vehicle storage facility grounds |
85.709 |
Failed to give the Department notice containing all required information prior to the storage facility beginning use of a telephone number different from the one on file with the Department |
85.715 |
Failed to note a correct license plate or vehicle identification number in the facility’s records |
85.716 |
Failed to reimburse the Department for necessary travel expenses and per diem for inspections or investigations conducted at an out-of-state facility |
85.1004(a)(2) |
ACCESS VIOLATIONS
Violation |
Rule/Statute |
Failure to require a receipt from the person removing personal belongings from a stored vehicle |
85.708(b)(2) |
FACILITY VIOLATIONS
Violation |
Rule/Statute |
Failed to have the storage facility completely enclosed by a fence six feet high with a gate |
85.1000(1) |
Operated two vehicle storage facilities within the same fenced area |
85.1000(1) |
Failed to have an all-weather surface or surface was overgrown with vegetation |
85.1001 |
Failed to maintain illumination levels adequate for nighttime release of vehicles |
85.1002 |
STORAGE VIOLATIONS
Violation |
Rule/Statute |
Failed to make reasonable efforts necessary for storage of the vehicle |
85.719(a) |
Failed to use plastic or canvas tarpaulins to ensure the impoundment of the vehicle |
85.719(b) |
Failed to lock the storage facility fence gate at all times when the licensee or an agent or employee is not at the storage lot |
85.1000(1) |
Stored or kept a vehicle at a storage facility which was not kept inside the fenced area or an enclosed area |
85.1000(2)(A) |
Failed to secure a vehicle accepted for storage to prevent theft of the vehicle or its contents |
85.1000(2)(B) |
INSURANCE FILING VIOLATIONS
Violation |
Rule/Statute |
Licensee failed to ensure the electronic submission of a certificate of insurance when changing a business name or affiliation, or upon request of the Department |
85.400(a) |
Name and address on the certificate of insurance was different than those on the permit |
85.400(c) |
Certificate of insurance failed to contain a provision obligating the insurer to give the Department thirty days’ notice before the effective date of a policy cancellation date |
85.400(d)(3) |
Failed to file a replacement insurance policy, once insurance had been canceled, prior to the cancellation date |
85.400(e) |
SIGN AND NOTICE VIOLATIONS
Violation |
Rule/Statute |
Failure to have a notice by publication contain all required information |
2303.153(b);
85.703(i)(2)
|
Failed to include all required information in a second notice |
2303.154(b);
2303.154(c);
85.704(d); 85.704(e)
|
Failed to send the second notice no earlier than the 15th day, and no later than the 21st day, after the date the first notice is mailed or published under §87.705 |
2308.154(d);
85.704(b)
|
Failed to send required notice to a law enforcement agency regarding an abandoned vehicle |
2303.154(a-1);
85.704(b)
|
Failed to notify the Department of Motor Vehicles or a law enforcement agency that the required notices regarding an abandoned vehicle have been provided and pay the $10 fee |
2303.1545(b);
85.724(b)
|
Failed to have a clearly visible sign in the proper lettering size and color contrast which sets out the charge for storage and all other fees, and all forms of payment accepted |
2303.1551(a);
85.1003(b)
|
Failed to post a sign with one-inch letters stating “Nonconsent tow fees schedules available on request.” |
2303.1551(b);
85.1003(c)(1)
|
Failed to have a conspicuously posted sign stating “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” |
2303.159(a-1);
85.1003(e)
|
Failed to include all required information in a vehicle owner’s written notice of rights under Chapter 2308, Subchapter J |
2308.455;
85.710(a)(1)
|
Failed to have notification to vehicle owner meet all mailing requirements |
85.703(i) |
Failed to have mailed notification state all required information |
85.703(i)(1) |
Failed to have published notification state all required information |
85.703(i)(2) |
Failed to have a clearly visible and readable sign which displays the required facility information in the proper lettering size and color contrast |
85.1003(a) |
Failed to have a clearly visible sign in the proper lettering size and color contrast which lists all documents that may be presented to obtain possession of the vehicle, or did not state “Affidavit of Right of Possession Furnished Upon Request” |
85.1003(d) |
FEE SCHEDULE VIOLATIONS
Violation |
Rule/Statute |
Charged an impoundment fee but the written bill for services did not specify the exact services performed for that fee and the dates those services were performed |
85.722(e) |
Failed to give a vehicle owner, upon request, access to the current nonconsent towing fees schedule for the towing company that towed the vehicle 24 hours a day |
85.708(b)(4) |
Nonconsent tow fee schedule provided for viewing did not match the fees authorized by law |
85.1003(c)(2) |
TOW TICKET VIOLATIONS
Violation |
Rule/Statute |
Failed to inspect an accepted vehicle and note on the tow ticket any differences from the information already on the ticket |
85.716 |
Defaced or wrote over any previous writing on a tow ticket when adding information during the vehicle inspection |
85.716 |
Failed to notify every previously notified person within 48 hours of a vehicle’s correct license plate or vehicle identification number |
85.716 |
PRACTICING WITHOUT PROPER LICENSE OR PERMIT
Violation |
Rule/Statute |
Performed a function that requires a facility license while license was expired |
85.203(b) |
Performed a duty that requires an employee license while license was expired |
85.206(b) |
Class B
Penalty: $500 up to $1,500 and/or 6-month probated suspension up to 6-month full suspension
ADMINISTRATIVE VIOLATIONS
Violation |
Rule/Statute |
Failed to notify the Department of a change in business name no later than the effective date of change |
85.702(a)(1) |
ACCESS VIOLATIONS
Violation |
Rule/Statute |
Failed to allow vehicle owner access to vehicle to obtain documents to establish ownership |
2303.158,
85.708(a)
|
Failed to give the vehicle owner or an authorized representative access to the vehicle or to remove personal belongings from the vehicle |
85.708(b)(2) |
Failed to allow the vehicle owner or an authorized representative access to the vehicle for the purposes of insurance and/or repair estimates |
85.708(b)(3) |
TOW TICKET VIOLATIONS
Violation |
Rule/Statute |
Failed to allow the vehicle owner or an authorized representative to inspect the tow ticket before being required to pay fees |
85.708(b)(1) |
Failed to provide a legible copy of the tow ticket to an insurer within three days of being presented with a proof of loss claim form |
85.708(c)(2)(A) |
Failed to provide a legible copy of the tow ticket to a tow truck operator upon being presented with a proof of loss claim form |
85.708(c)(2)(B) |
Failed to a provide a tow ticket to the vehicle owner or owner’s representative |
85.710(a)(2) |
LAW ENFORCEMENT REPORTING VIOLATIONS
Violation |
Rule/Statute |
Accepted a vehicle nonconsent towed from private property and failed to report the tow to local law enforcement within two hours of receipt of vehicle |
2303.1511(a);
2308.2565(a);
85.705(a)
|
Report to local law enforcement of the acceptance of a nonconsent-towed vehicle failed to include a description of vehicle, license plate and ascertainable VIN information, location from where the vehicle was towed, and the name and location of the destination vehicle storage facility |
2303.1511(a);
2308.2565(a);
85.705(a)
|
Failed to make the required nonconsent tow report by telephone, electronically, personally or by facsimile |
2303.1511(b);
85.705(b)
|
Failed to provide a report to law enforcement of incident management tows within 48 hours of receiving the request |
2308.2565(b) |
Failed to keep a record of to whom and in what manner the required nonconsent tow report was reported, the date and time, or the tracking or control number assigned by the law enforcement agency |
85.705(c) |
ALCOHOL AND DRUG TESTING
Violation |
Rule/Statute |
Vehicle storage facility failed to establish, maintain, and implement, an effective drug testing policy for its employees as required by law |
2303.161;
85.725
|
Employee or applicant failed or refused to fully cooperate and comply with any term of the vehicle storage facility’s drug testing policy |
85.725(a)(4) |
Vehicle storage facility employee took or was under the influence of a drug not prescribed by a physician |
85.725(a)(5)(A) |
Vehicle storage facility employee engaged in the manufacture, sale, distribution, use, or unauthorized possession of illegal drugs |
85.725(a)(5)(B) |
Vehicle storage facility to notify the Department of an employee’s drug conviction |
85.725(a)(5)(D) |
Vehicle storage facility participating in a consortium failed to ensure the consortium performs random drug testing on at least 25% of the VSF’s employees |
85.725(a)(6)(C)(iii) |
Vehicle storage facility failed to notify the Department within three days of an employee’s confirmed positive drug test result |
85.725(a)(8)(E) |
Vehicle storage facility employee failed to stand down from vehicle storage facility duties following a positive drug test result confirmation |
85.725(a)(11)(B) |
UNLICENSED ACTIVITY
Violation |
Rule/Statute |
Worked in a vehicle storage facility without a required license |
2303.1015(a);
85.204(b)
|
Employed a person who did not hold a required license |
2303.1015(a);
85.204(c)
|
FEE VIOLATIONS
Violation |
Rule/Statute |
Charged a notification fee exceeding $50 or charged a publication fee greater than allowed by law |
2303.155(b)(1);
2303.155(c);
85.722(c)(1)
|
Charged an impoundment fee greater than $20 |
2303.155(b)(2);
85.722(e)
|
Charged an impoundment fee when the impoundment was not performed in accordance with 16 T.A.C. Ch. 85 |
2303.155(b)(2);
85.719(c); 85.722(e)
|
Charged a daily storage fee of more than $20 for each day for a vehicle not longer than 25 feet |
2303.155(b)(3)(A);
85.722(d)
|
Charged a daily storage fee of more than $35 for each day for a vehicle longer than 25 feet |
2303.155(b)(3)(B);
85.722(d)
|
Charged a storage fee for more than one day when the vehicle remained at the facility for less than 12 hours |
2303.155(d);
85.722(d)(1)
|
Charged for more than five days of storage before mailing notice or requesting owner information from the proper governmental entity |
2303.155(e);
85.722(d)(2);
85.722(d)(3)
|
Charged a daily storage fee during the period beginning on the 21st day after the first notice is sent and ending 24 hours after the second notice is sent when second notice is sent after the 21st day on which the first notice was mailed or published |
2303.154(e)(2);
85.704(c)
|
Charged an additional fee for storage which is not authorized by law |
2303.155(f);
85.722(h)
|
Failed to accept payment by cash, debit card, or credit card for the delivery or storage of a vehicle |
2303.159(a);
85.711
|
Charged a notification fee when the vehicle was removed within 24 hours or before the notification was sent |
85.722(c)(3) |
NOTICE VIOLATIONS
Violation |
Rule/Statute |
Failed to send proper notice of the vehicle’s location to the vehicle owner and lienholder by the fifth day after receipt of the vehicle which is registered in Texas |
2303.151(a);
2303.151(d); 2303.151(e);
2303.153(a);
85.703(b)(1)
|
Failed to send proper notice of the vehicle’s location to the vehicle owner and lienholder by the 14th day after receipt of the vehicle which is registered outside Texas |
2303.151(b);
2303.151(d);
2303.151(e);
2303.153(a);
85.703(b)(2)
|
Failed to provide notice to the owner and lienholder by publication when required |
2303.152(a);
2303.152(e);
85.703(e)
|
Provided notice by publication when all requirements allowing notice by publication had not been met |
2303.152(a);
2303.152(b);
2303.152(e); 85.703(e)
|
Failed to send a second notice of the vehicle’s location to the vehicle owner and lienholder when required |
2303.154(a);
85.704(a)
|
Failed to timely send the second notification letter to the vehicle owner and lienholder when required |
2303.154(d);
85.704(b)
|
Failed to give a vehicle owner written notice of the person’s rights under Chapter 2308, Subchapter J at the time of payment |
2308.454(a)
|
Failed to include a notice of the vehicle owner’s rights under Chapter 2308, Subchapter J with the required notice which states the facility has the vehicle |
2308.454(b) |
RELEASE OF VEHICLES VIOLATIONS
Violation |
Rule/Statute |
Refused to release a vehicle because of the inability to accept payment by cash, debit card or credit card |
2303.159(a) |
Failed to release a vehicle or required an affidavit for release because the valid identification presented had a different address than the address on the title or registration for the vehicle |
2303.160(a);
85.710(a)(4)
|
Failed to accept evidence of financial responsibility as a form of identification that establishes right of possession of the vehicle |
2303.160(b);
85.710(a)(5)
|
Failed to allow an owner or owner’s representative to obtain possession of a vehicle when all fees were paid and valid identification and acceptable documentation proving right of possession were presented |
85.710(a)(3) |
Failed to have a vehicle available for release 24 hours a day when the facility accepted vehicles 24 hours a day |
85.710(a)(7) |
Failed to have a vehicle available for release during the required hours within one hour of notice |
85.710(a)(8) |
Refused to release of a vehicle to an owner or insurance company due to nonpayment by the law enforcement agency that directed the towing and storage |
85.713(a) |
Released a commercial vehicle stored at the direction of Texas DPS when the amount of delinquent administrative penalty assessed against the vehicle had not been paid pursuant to 37 T.A.C. § 4.16 |
85.713(b) |
Failed to have a publicly listed telephone number at which the vehicle storage facility could be contacted |
85.715 |
Class C
Penalty: $1,000 up to $4,000 and/or 1-year probated suspension up to 1-year full suspension
ADMINISTRATIVE AND RECORDS VIOLATIONS
Violation |
Rule/Statute |
Vehicle storage facility owner, manager, or their representative failed to cooperate with an inspector or investigator in the performance of the inspection or investigation |
85.450(d);
60.23(a)(3)
|
Failed to make all records and documents available to a Department inspector, investigator, or law enforcement officer for inspection or copying |
85.451(b);
85.706(e);
60.23(a)(3)
|
Failed to maintain a copy of all required written records and documents at the principal business address for a minimum of two years from release or disposal of a vehicle |
85.706(a);
85.1004(b)
|
Failed to keep all required records under the storage facility’s care and custody for at least two years from the date of vehicle release or disposal |
85.706(f) |
Failed to maintain a record of ultimate vehicle disposition which includes all required information |
85.721(3) |
Failed to keep complete and accurate records for a disposed vehicle which include all required information |
85.723(b) |
Vehicle storage facility failed to maintain all required records and documents at a principal office in Texas |
85.1004(a) |
Vehicle storage facility maintained required records at an alternate location other than the principal office without approval from the Department |
85.1004(a)(1) |
FEE VIOLATIONS
Violation |
Rule/Statute |
Charged unpermitted fees after a vehicle was towed to another location without the owner’s permission |
85.721(1) |
Class D
Penalty: $2,000 up to $5,000 and/or 1-year full suspension up to revocation
UNLICENSED ACTIVITY
Violation |
Rule/Statute |
Operated a vehicle storage facility without holding a license for that facility |
2303.101(a);
85.200; 85.203(b)
|
Operated or managed a vehicle storage facility as a sole proprietor or unincorporated partnership without holding an employee license |
85.204(d) |
INSURANCE VIOLATIONS
Violation |
Rule/Statute |
Obtained insurance from an insurer not authorized to do business in Texas |
85.400(b) |
Failed to obtain and maintain liability insurance for each vehicle storage facility in the required amount |
85.400(d)(1);
85.400(d)(2)
|
Provided liability insurance information to vehicle owner which was not the same as that on file with the Department |
85.714 |
Failed to provide to vehicle owner or owner’s representative upon request all required liability insurance information |
85.714 |
DISPOSAL OF VEHICLE VIOLATIONS
Violation |
Rule/Statute |
Disposed of an abandoned nuisance vehicle before the 30th day after the first and only notice was sent |
2303.1545(a) |
Disposed of an abandoned vehicle before the 30th day after notice was sent |
2303.157(a) |
Failed to apply the proceeds from the sale of a vehicle
to the charges incurred for the vehicle or pay excess proceeds to the person entitled to the proceeds
|
2303.157(b); 85.704(f) |
Sold a vehicle before the 30th day after notice was sent that was not an abandoned nuisance vehicle and did not submit an application for disposal to the Department of Transportation |
2303.157(c) |
Removed parts or dismantled or demolished a vehicle within the storage area when not allowed |
85.717 |
Allowed a stored vehicle to be repaired, altered, or to have parts removed or replaced without the consent of the owner or owner’s representative |
85.720 |
Moved a vehicle from the storage facility within 31 days of delivery without the owner’s authorization |
85.721 |
Moved a vehicle from the storage facility within 31 days of delivery and assessed an additional charge |
85.721 |
Moved a vehicle from the storage facility within 31 days of delivery and failed to send notice no less than 72 hours prior to the move |
85.721 |
Failed to maintain records and inform a vehicle owner upon request of the location of the vehicle at all times from vehicle relocation to ultimate vehicle disposition |
85.721(2) |
Disposed of a vehicle without complying with all provisions of the law concerning notification and disposal of abandoned vehicles and maintenance of records |
85.723(a) |
Failed to maintain complete and accurate records of any vehicle disposed, as required |
85.723(b) |
INTEGRITY VIOLATIONS
Violation |
Rule/Statute |
Failed to comply with previous order of the Commission/Executive Director |
2308.501(2);
86.204(a)(2);
86.208(2);
86.216(d)(2);
51.301(2)
|
Requested a vehicle owner or operator to sign an authorization form for a tow, repair, or any other service, for a tow initiated by law enforcement |
85.708(d) |
Required an owner or owner’s representative to sign a form which changed the status of a law enforcement-initiated tow from a nonconsent tow to a consent tow status |
85.710(b)(1) |
Required an owner or owner’s representative to sign a form which changed the status of the vehicle storage resulting from a nonconsent tow to a consent storage status |
85.710(b)(2) |
Required an owner or owner’s representative to sign a form which imposed additional charges not regulated by the Department |
85.710(b)(3) |
Used a stored vehicle for personal or business use without the written consent of the owner |
85.718 |
Obtained a license by fraud or false representation |
60.23(a)(1) |
Submitted falsified required documents as part of the initial or renewal application packet |
60.23(a)(2) |
Failed to pay the Department for a dishonored payment |
60.82 |
Refused to permit, or interfered with, an inspection or investigation by an authorized TDLR representative |
60.23(a)(3) |
Fraudulent or deceptive conduct displaying such a lack of honesty, integrity, and trustworthiness as to render the license holder ineligible to continue holding a license. |
60.41(b) |
Failed to conduct vehicle storage facility operations with honesty, trustworthiness, and integrity |
85.726 |