Bill Text: TX HB3478 | 2023-2024 | 88th Legislature | Engrossed

---

Bill Title: Relating to mediation of certain fee disputes between towing companies and motor carriers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2023-04-19 - Received from the House [HB3478 Detail]

Download: Texas-2023-HB3478-Engrossed.html

---

88R19540 DRS-D
By: King of Uvalde H.B. No. 3478

A BILL TO BE ENTITLED
AN ACT
relating to mediation of certain fee disputes between towing
companies and motor carriers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.154, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) Except as provided by Subsection (a-1), if [If] a
vehicle is not claimed by a person permitted to claim the vehicle
before the 10th day after the date notice is mailed or published
under Section 2303.151 or 2303.152, the operator of the vehicle
storage facility shall consider the vehicle to be abandoned and, if
required by the law enforcement agency with jurisdiction where the
vehicle is located, report the abandonment to the law enforcement
agency. If the law enforcement agency notifies the vehicle storage
facility that the agency will send notices and dispose of the
abandoned vehicle under Subchapter B, Chapter 683, Transportation
Code, the vehicle storage facility shall pay the fee required under
Section 683.031, Transportation Code.
(a-1) For purposes of this subsection, "motor carrier" has
the meaning assigned by Section 643.001, Transportation Code. A
motor vehicle operated by a motor carrier and held in a vehicle
storage facility may not be considered abandoned under Subsection
(a):
(1) until the 31st day after the date notice is mailed
or published under Section 2303.151 or 2303.152; or
(2) if the operator of the vehicle storage facility
receives notice:
(A) under Section 2308.554(a)(1)(B) that the
vehicle is the subject of a request for mediation under Subchapter
L, Chapter 2308; or
(B) under Section 2308.560(c) that the vehicle is
the subject of a civil action brought by a party to the fee dispute
that was the subject of a mediation under Subchapter L, Chapter
2308.
SECTION 2. Subchapter D, Chapter 2303, Occupations Code, is
amended by adding Section 2303.1541 to read as follows:
Sec. 2303.1541. SALE OR DISPOSAL OF VEHICLE PENDING
MEDIATION PROHIBITED. A vehicle storage facility operator who
receives notice under Section 2308.554(a)(1)(B) or Section
2308.560(c) may not sell at a public sale or otherwise dispose of or
report to a law enforcement agency under Section 683.031(c),
Transportation Code, the vehicle that is the subject of the notice
until the operator receives notice under Section 2308.560 that:
(1) the mediation has been resolved; and
(2) if a civil action related to the fee dispute that
was the subject of the mediation was filed by a party after the end
of the mediation process, the civil action has concluded.
SECTION 3. Chapter 2308, Occupations Code, is amended by
adding Subchapter L to read as follows:
SUBCHAPTER L. FEE DISPUTE MEDIATION
BETWEEN TOWING COMPANY AND MOTOR CARRIER
Sec. 2308.551. DEFINITION. In this subchapter, "motor
carrier" has the meaning assigned by Section 643.001,
Transportation Code.
Sec. 2308.552. FEE DISPUTE MEDIATION REQUIRED ON MOTOR
CARRIER REQUEST. (a) A motor carrier may request mediation under
this subchapter in a dispute with a towing company relating to an
incident management or other nonconsent tow for which towing and
recovery fees exceed $20,000.
(b) A towing company must participate in mediation
requested by a motor carrier under this subchapter.
Sec. 2308.553. REQUEST FOR MEDIATION. (a) A motor carrier
may submit a request in the manner prescribed by the department not
later than the 30th day after the later of the date the motor
carrier:
(1) pays the towing and recovery charges; or
(2) receives notice from a vehicle storage facility
under Section 2303.151.
(b) A motor carrier that does not timely submit a request
under Subsection (a) waives the right to mediation under this
subchapter.
Sec. 2308.554. NOTICE OF REQUEST; ORDER. (a) On receipt of
a request for mediation under this subchapter, the department
shall:
(1) give notice that the motor carrier has requested
mediation to:
(A) the towing company that towed the vehicle
that is the subject of the request for mediation; and
(B) the operator of the vehicle storage facility
storing the vehicle that is the subject of the request for
mediation; and
(2) order the parties to participate in mediation
under this subchapter.
(b) A vehicle storage facility operator who receives notice
under this section:
(1) may continue to charge a daily storage fee
authorized by Section 2303.155(b)(3); and
(2) may not sell the vehicle at a public sale or
otherwise dispose of the vehicle under Subchapter D, Chapter 2303,
or report the vehicle to a law enforcement agency under Section
683.031(c), Transportation Code, before the operator receives
notice under Section 2308.560 that:
(A) the mediation has been resolved; and
(B) if a civil action related to the fee dispute
that was the subject of the mediation was filed by a party after the
end of the mediation process, the civil action has concluded.
Sec. 2308.555. MEDIATOR. (a) A person may not act as a
mediator in the mediation program unless the person is qualified as
an impartial third party under Section 154.052, Civil Practice and
Remedies Code.
(b) The parties by agreement shall select and compensate a
mediator from the list maintained by the department, except that
the parties by written agreement may select a mediator not on the
department's list.
(c) If the parties do not agree on a mediator by the 10th day
after the date the department orders the parties to participate in
the mediation:
(1) the motor carrier or the towing company shall
notify the department that a mediator has not been selected; and
(2) the department shall select a mediator from the
department's list of qualified mediators based on convenience to
the location of each party.
(d) Sections 154.053 and 154.055, Civil Practice and
Remedies Code, apply to a mediator under this subchapter.
Sec. 2308.556. LOCATION AND SCHEDULE OF MEDIATION. (a) The
parties by agreement shall select a venue and schedule for
mediation under this subchapter. If the parties are unable to agree
on a venue and schedule, the mediator shall select a venue and
schedule.
(b) Mediation must be completed not later than the 30th day
after the date the department orders the parties to mediate, except
that the deadline may be extended by agreement of all parties.
Sec. 2308.557. APPLICABLE LAW. Section 154.073, Civil
Practice and Remedies Code, and Rule 408, Texas Rules of Evidence,
apply to mediation under this subchapter.
Sec. 2308.558. DURATION AND COSTS OF MEDIATION. (a) The
fee for a mediator employed under this subchapter may not exceed:
(1) $750 per party, for a half-day mediation; or
(2) $1,500 per party, for a full-day mediation.
(b) A mediation may not exceed one day unless the parties
agree to extend the mediation.
(c) The department is not liable for compensation paid or to
be paid to a mediator employed under this subchapter.
(d) Without regard to the outcome of mediation or subsequent
regulatory or judicial proceedings, costs incurred by a party in
mediation required by this subchapter may not be imposed on the
opposing party.
Sec. 2308.559. MATTERS CONSIDERED IN MEDIATION; AGREED
RESOLUTION. In a mediation under this subchapter, the parties
shall evaluate, without limitation, whether the amount charged by
the towing company is excessive. If the parties determine that the
amount charged is excessive, the parties shall determine the
appropriate charges for services rendered.
Sec. 2308.560. OUTCOME OF MEDIATION; CIVIL ACTION. (a) Not
later than the 15th day after the date the mediation concludes, the
mediator shall report to the department whether mediation resolves
the dispute. The department shall notify the operator of the
vehicle storage facility where the vehicle that is the subject of
the mediation is being stored of the outcome of the mediation.
(b) If mediation does not resolve the dispute, either party
may file a civil action. A party in a mediation under this
subchapter may not bring a civil action before the conclusion of the
mediation process under this subchapter. This subsection does not
prohibit a motor carrier from filing a request for a hearing under
Subchapter J before the conclusion of mediation.
(c) If a party in mediation brings a civil action related to
the fee dispute that was the subject of the mediation after the
conclusion of the mediation process, the party bringing the action
shall give notice to the operator of the vehicle storage facility
storing the vehicle that is the subject of the action of the
initiation and conclusion of the action. Notice under this
subsection must be given:
(1) on filing the petition with the court, if the motor
carrier is the party filing the action; or
(2) on service of citation on the motor carrier.
(d) A vehicle storage facility operator who receives notice
of a civil action from a party under this section:
(1) may continue to charge a daily storage fee
authorized by Section 2303.155(b)(3); and
(2) may not sell the vehicle at a public sale or
otherwise dispose of the vehicle under Subchapter D, Chapter 2303,
before the party bringing the action gives the operator notice that
the action is concluded in favor of the towing company.
Sec. 2308.561. FORMS AND PROCEDURES; REQUEST PORTAL. The
department shall:
(1) adopt forms and procedures necessary to administer
this subchapter;
(2) establish a portal on the department's Internet
website through which a request to participate in the mediation
program may be submitted; and
(3) maintain a list of qualified mediators on the
department's Internet website.
SECTION 4. Section 683.031, Transportation Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) Except as provided by Subsection (a-1), a [A] motor
vehicle is abandoned if the vehicle is left in a storage facility
operated for commercial purposes after the 10th day after the date
on which:
(1) the garagekeeper gives notice by registered or
certified mail, return receipt requested, to the last known
registered owner of the vehicle and to each lienholder of record of
the vehicle under Chapter 501 to remove the vehicle;
(2) a contract for the vehicle to remain on the
premises of the facility expires; or
(3) the vehicle was left in the facility, if the
vehicle was left by a person other than the registered owner or a
person authorized to have possession of the vehicle under a
contract of use, service, storage, or repair.
(a-1) For purposes of this subsection, "motor carrier" has
the meaning assigned by Section 643.001. A motor vehicle operated
by a motor carrier and held at a vehicle storage facility may not be
considered abandoned under this subchapter:
(1) until the 31st day after the date described by
Subsection (a); or
(2) if the operator of the vehicle storage facility
receives notice:
(A) under Section 2308.554(a)(1)(B), Occupations
Code, that the vehicle is the subject of a request for mediation
under Subchapter L, Chapter 2308, Occupations Code; or
(B) under Section 2308.560(c), Occupations Code,
that the vehicle is the subject of a civil action brought by a party
to the fee dispute that was the subject of a mediation under
Subchapter L, Chapter 2308, Occupations Code.
SECTION 5. This Act takes effect September 1, 2023.