towing fees adjust for inflation every odd year

The text as introduced · 659 words

89R6032 AND-F

By: Alvarado
S.B. No. 1175

A BILL TO BE ENTITLED

AN ACT

relating to the biennial adjustment of certain towing fees and

maximum charges.

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

SECTION 1. Section 2308.0575, Occupations Code, is amended

to read as follows:

Sec. 2308.0575. BIENNIAL ADJUSTMENT OF CERTAIN [ RULES ON ]

FEES AND MAXIMUM CHARGES [ ; CONTRACT FOR STUDY; CONFIDENTIAL

INFORMATION ]. (a) In this section, "consumer price index" means

the Consumer Price Index for All Urban Consumers (CPI-U) published

by the Bureau of Labor Statistics of the United States Department of

Labor.

(b) To protect the public health and safety and subject to

Subsection (c) , in each odd-numbered year the commission , not later

than November 1, by rule may adjust [ shall establish ]:

(1) the fees that may be charged in connection with a

private property tow;

(2) the maximum amount that may be charged for fees,

other than tow fees, that may be assessed by a towing company in

connection with a private property tow; and

(3) a maximum amount that may be charged for the

following private property tows:

(A) standard light-duty tows of motor vehicles

with a gross weight rating of 10,000 pounds or less;

(B) medium-duty tows of motor vehicles with a

gross weight rating of more than 10,000 pounds, but less than 25,000

pounds; and

(C) heavy-duty tows of motor vehicles with a

gross weight rating that exceeds 25,000 pounds.

(c) The commission may adjust fees and maximum charge

amounts under Subsection (b) by an amount equal to the amount of the

applicable fee or charge amount in effect on December 31 of the

preceding year multiplied by the percentage increase or decrease in

the consumer price index during the most immediate preceding state

fiscal biennium.

(d) If a fee or maximum charge amount is adjusted under this

section, the commission shall publish the adjusted fee or amount on

the department's Internet website.

(e) A fee or maximum charge amount adjusted under this

section is effective beginning the January 1 following the adoption

of a rule under this section.

(f) If a fee or maximum charge amount is decreased under

this section, the operator of a vehicle towing company, as defined

by Section 2308.002, shall begin charging the adjusted fee or

amount on the effective date of the decrease. If a fee or maximum

charge amount is increased under this section, the operator may

begin charging the adjusted fee or amount at any time on or after

the effective date of the increase.

[ (b) In adopting rules under Subsection (a), the commission

shall contract for a study that:

[ (1) examines towing fee studies conducted by

municipalities in this state; and

[ (2) analyzes the cost of towing services by company,

the consumer price index, the geographic area, and individual cost

components.

[ (c) The commission may structure the maximum amounts that

may be charged for private property tows based on hourly or flat

fees or by geographic location.

[ (d) The commission shall maintain the confidentiality of

information contained in a study conducted under this section that

is claimed to be confidential for competitive purposes and may not

release information that identifies a person or company. The

confidential information is exempt from disclosure under Chapter

552, Government Code.

[ (e) To protect the confidentiality of the information, the

commission shall aggregate the information to the maximum extent

possible considering the purpose of the study.

[ (f) The department shall contract to conduct a study on

private property towing fees under this section at least once every

two years. ]

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.