Proposed Administrative Rules
Chapter 86. Vehicle Towing and Booting
Proposal Filed: July 30, 2021 – Published in the Texas Register: August 13, 2021
Deadline for Public Comment: September 13, 2021
Underlined text is new language.
[ Strikethrough text ] is deleted language.
The Texas Department of Licensing and Regulation (Department) proposes amendments to an existing rule at 16 Texas Administrative Code (TAC), Chapter 86, §86.455, regarding the Vehicle Towing and Booting Program. The proposed changes are referred to as “proposed rule.”
EXPLANATION OF AND JUSTIFICATION FOR THE RULE
The rules under 16 TAC Chapter 86 implement Texas Occupations Code, Chapter 2308, Vehicle Towing and Booting.
The proposed rule addresses the maximum amounts for private property tows and drop fees that may be charged by a towing company. Pursuant to Occupations Code §2308.0575, the Texas Commission of Licensing and Regulation (Commission) is required to biennially contract for a fee study which examines private property towing fees assessed by towing companies based on factors such as: (1) the costs of company towing services; (2) changes in the Consumer Price Index for All Urban Consumers (CPI-U); (3) the geographic area, in this instance, a specific focus on the urban consumers for the U.S. South Region; and (4) individual cost components, including the CPI-U for motor vehicle maintenance and repair and the CPI-U for motor vehicle insurance and state gasoline prices. The proposed rule is based upon findings from the 2020 fee study and is necessary to comply with the statutory requirements to implement the biennial adjustment of fees for 2021, in order to protect public health and safety of consumers.
The proposed rule was presented to and discussed by the Towing and Storage Advisory Board at its meeting on July 29, 2021. The Advisory Board did not make any changes to the proposed rule. The Advisory Board voted and recommended that the proposed rule be published in the Texas Register for public comment.
SECTION-BY-SECTION SUMMARY
The proposed rule amends §86.455(b), by reflecting the new maximum amounts for private property tows that may be charged by a towing company in connection with a private property tow, as determined by the 2020 fee study required by statute.
The proposed rule amends §86.455(c), by reflecting the new maximum amounts for motor vehicle drop charges that may be charged by a towing company in connection with a private property tow prior to its removal from the premises or parked location, as determined by the 2020 fee study required by statute.
FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT
Tony Couvillon, Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rule is in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rule.
Mr. Couvillon has determined that for each year of the first five years the proposed rule is in effect, there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed rule.
LOCAL EMPLOYMENT IMPACT STATEMENT
Mr. Couvillon has determined that the proposed rule will not affect the local economy, so the agency is not required to prepare a local employment impact statement under Government Code §2001.022.
PUBLIC BENEFITS
Mr. Couvillon also has determined that for each year of the first five-year period the proposed rule is in effect, the public benefit will be that the rule allows towing companies to adjust their private property tow fees to keep pace with inflation and current tow company costs. The fee changes help tow companies to be more financially secure in their operations and the rule also puts the public on notice of the fees that could be incurred if a vehicle is subject to a private property tow.
PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL
Mr. Couvillon has determined that for each year of the first five-year period the proposed rule is in effect, there will be additional costs to persons who are required to comply with the proposed rule. The statutorily required change in the amount of fees that may be charged for a private property tow could have an economic impact on some members of the general public who have a vehicle towed through a private property tow, or who request the release of a hooked-up vehicle prior to it being towed. However, having to pay an increased fee may be avoided by members of the public through compliance with all parking requirements at private parking facilities and therefore not being subject to a tow and its associated fees.
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rule. Since the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT
The proposed rule does not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Government Code §2001.0045.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rule. For each year of the first five years the proposed rule will be in effect, the agency has determined the following:
1. The proposed rule does not create or eliminate a government program.
2. Implementation of the proposed rule does not require the creation of new employee position or the elimination of existing employee positions.
3. Implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency.
4. The proposed rule does not require an increase or decrease in fees paid to the agency.
5. The proposed rule does not create a new regulation.
6. The proposed rule does not expand, limit, or repeal an existing regulation.
7. The proposed rule does not increase or decrease the number of individuals subject to the rule’s applicability.
8. The proposed rule does not positively or adversely affect this state's economy.
TAKINGS IMPACT ASSESSMENT
The Department has determined that no private real property interests are affected by the proposed rule and the proposed rule does not restrict, limit, or impose a burden on an owner’s rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule does not constitute a taking or require a takings impact assessment under Government Code §2007.043.
PUBLIC COMMENTS
Comments on the proposed rule may be submitted electronically on the Department’s website at https://ga.tdlr.texas.gov:1443/form/gcerules ; by facsimile to (512) 475-3032; or by mail to Vanessa Vasquez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.
STATUTORY AUTHORITY
The proposed rule is proposed under Texas Occupations Code, Chapters 51 and 2308, which authorize the Texas Commission of Licensing and Regulation, the Department’s governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rule are those set forth in Texas Occupations Code, Chapters 51 and 2308. No other statutes, articles, or codes are affected by the proposed rule.
§86.455. Private Property Tow Fees.
(a) For purposes of this section:
(1) light-duty means the tows of motor vehicles with a gross weight rating of 10,000 pounds or less;
(2) medium-duty means the tows of motor vehicles with a gross weight rating of more than 10,000 pounds, but less than 25,000 pounds; [ and ]
(3) heavy-duty means the tows of motor vehicles with a gross weight rating that exceeds 25,000 pounds; and
(4) drop charge means the maximum that may be charged for the release of the vehicle before its removal from the property or parked location.
(b) The maximum amount that may be charged for private property tows is as follows:
(1) light-duty [ light duty ] tows--$272 [ $255 ];
(2) medium-duty [ medium duty ] tows--$380 [ $357 ]; and
(3) heavy-duty [ heavy duty ] tows--$489 [ $459 ] per unit or a maximum of $978 [ $918 ].
(c) If the owner, authorized operator, or authorized agent of the owner of a motor vehicle that is parked without the authorization of the property owner attempts to retrieve the motor vehicle before its removal from the property or parked location, the maximum amount that may be charged for a drop charge (if the motor vehicle is hooked up) is:
(1) light duty tows--$135 [ $127 ];
(2) medium duty tows--$190 [ $178 ]; and
(3) heavy duty tows--$244 [ $229 ].
(d) If an owner, authorized operator, or authorized agent of the owner of a motor vehicle is present before the removal from the property or parked location the towing operator shall advise the owner, authorized operator, or authorized agent of the owner of a motor vehicle that he or she may offer payment of the towing drop charge.
(e) For purposes of this section, a tow company must accept cash, credit cards and debit cards as payment for the drop charge.
REVIEW BY AGENCY COUNSEL
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency’s legal authority to adopt.
Filed with the Office of the Secretary of State, on July 30, 2021.
Brad Bowman
General Counsel
Texas Department of Licensing and Regulation