Source: https://www.license.state.tx.us/towing/vsfrules.htm
Timestamp: 2018-12-12 19:21:36
Document Index: 35981577

Matched Legal Cases: ['§85', '§85', '§85', '§502', '§504', '§4', '§85', '§2303', '§2303', '§2303', '§2303', '§2303', 'art 40', 'art 40', '§85']

Vehicle Storage Facility Administrative Rules >
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16 Texas Administrative Code, Chapter 85
85.1. Authority
85.10. Definitions
85.20. Exemptions
85.200. License Required--Vehicle Storage Facility
85.201. License Requirements--Vehicle Storage Facility License
85.202. License Approval--Vehicle Storage Facility
85.203. License Requirements--Vehicle Storage Facility License Renewal
85.204. License Requirements--Vehicle Storage Facility Employee License
85.206. License Requirements--Vehicle Storage Facility Employee License Renewal; Dual Vehicle Storage Facility Employee and Towing Operator License
85.207. License--Notice of Proposed Denial, Opportunity to Comply
85.208. Department Notifications to Licensee
85.209. Licenses--License Terms
85.400. Insurance Requirements
85.450. Inspections--General
85.451. Periodic Inspections
85.453. Corrective Actions Following Inspection
85.650. Towing and Storage Advisory Board
85.700. Responsibilities of the Licensee--Proof of Exempt Status
85.701. Responsibilities of Licensee--Advertising
85.702. Responsibilities of Licensee--Changes to VSF Operator and VSF Employee License
85.703. Responsibilities of Licensee--Notice to Vehicle Owner or Lienholder
85.704. Responsibilities of Licensee--Second Notice; Consent to Sale
85.705. Responsibilities of Licensee--Report to Law Enforcement
85.706. Responsibilities of Licensee--Documentation and Records
85.707. Responsibilities of Licensee--Notice of Complaint Procedure
85.708. Responsibilities of Licensee--Rights of Owner or Authorized Representative
85.709. Responsibilities of Licensee--Unpermitted Tow Trucks Prohibited
85.710. Release of Vehicles
85.711. Responsibilities of Licensee--Forms of Payment for Release of Vehicle
85.712. Responsibilities of Licensee--Release of Vehicles; Payment by Lienholder or Insurance Company
85.713. Responsibilities of Licensee--Release of Vehicles from Law Enforcement Hold
85.714. Responsibilities of Licensee--Provide Insurance Information to Vehicle Owner
85.715. Responsibilities of Licensee--Publicly Listed Telephone Number
85.716. Responsibilities of Licensee--Inspection of Stored Vehicles
85.717. Responsibilities of Licensee--Removal of Parts; Dismantling or Demolishing Stored Vehicles
85.718. Responsibilities of Licensee--Use of Stored Vehicles Prohibited
85.719. Responsibilities of Licensee--Reasonable Storage Efforts; Impoundment of Stored Vehicles; Impoundment Fees
85.720. Responsibilities of Licensee--Repair; Alteration of Stored Vehicles Prohibited
85.721. Responsibilities of Licensee--Vehicle Transfers
85.722. Responsibilities of Licensee--Storage Fees and Other Charges
85.723. Responsibilities of Licensee--Disposal of Certain Vehicles
85.724. Responsibilities of Licensee--Disposition of Abandoned Nuisance Vehicle
85.725. Responsibilities of Licensee--Drug Testing Policy
85.726. Responsibilities of Licensee--Honesty, Trustworthiness, and Integrity
85.800. Fees
85.900. Administrative Sanctions and Penalties
85.1000. Technical Requirements--Facility Fencing Requirements
85.1001. Technical Requirements--Storage Lot Surface
85.1002. Technical Requirements Storage Lot Lighting
85.1003. Technical Requirements--Storage Lot Signs
85.1004. Technical Requirements--Company Records
85.1. Authority. (New section adopted effective April 15, 2008, 33 TexReg 2931)
These rules are adopted under the authority of the Texas Occupations Code, Chapter 51 and Chapter 2303.
85.10. Definitions. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(1) Abandoned nuisance vehicle--A motor vehicle that is at least 10 years old and is of a condition only to be demolished, wrecked, or dismantled.
(2) Act--The Vehicle Storage Facility Act, Texas Occupations Code, Chapter 2303.
(3) Affidavit of Right of Possession--A form prescribed by the department and provided by the licensee for use by an immediate family member certifying right of possession to a vehicle stored at a vehicle storage facility.
(5) Day--Twenty-four continuous hours.
(7) Executive director--The executive director of the department.
(8) Fence--An enclosure of wood, chain link, metal, concrete, or masonry, placed around an area used to store vehicles and designed to prevent intrusion and escape.
(9) Immediate family--A vehicle owner’s parents, spouse, children, brothers, and sisters.
(10) Impoundment--The following actions when performed on a stored vehicle:
(A) using materials such as plastic or canvas tarpaulins to ensure the preservation of a stored vehicle if doors, windows, convertible tops, hatchbacks, sunroofs, trunks, or hoods are broken or inoperative;
(B) conducting a written inventory of any unsecured personal property contained in a stored vehicle;
(C) removing and storing all unsecured personal property that is contained in a stored vehicle and for which safekeeping is necessary; or
(D) obtaining motor vehicle registration information for a specific vehicle from the Texas Department of Transportation, Vehicle Titles and Registration Division, or an equivalent out-of-state agency.
(11) License holder or Licensee--The person to which the department issued a license.
(12) Main entrance--The initial point from the public road onto the private property leading to the vehicle storage facility at which a consumer or service recipient enters a vehicle storage facility.
(13) Notice of Right of Possession for Salvage--A form prescribed by the department and executed by persons licensed under 16 Texas Administrative Code Chapter 86 as agents for an insurance company that has documented authority from the vehicle owner obtained prior to execution of the form, certifying right of possession of a total loss vehicle stored at a vehicle storage facility.
(14) Person--An individual, corporation, organization, business trust, estate, trust, partnership, association, or other legal entity.
(15) Primary lien holder--First lien holder named on the certificate of title in the motor vehicle registration records of the Texas Department of Transportation.
(16) Principal--An individual who:
(A) holds, whether personally, as a beneficiary of a trust, or by other constructive means:
(i) 10% of a corporation's outstanding stock; or
(ii) an ownership interest in a business that is equivalent to a fair market value of more than $25,000;
(B) has the controlling interest in a business;
(C) has a participating interest of more than 10% in the profits, proceeds, or capital gains of a business, regardless of whether the interest is direct or indirect, whether it is held through share, stock, or any other manner, or whether it includes voting rights;
(D) holds a position as a member of the board of directors or other governing body of a business; or
(E) holds a position as an elected officer of a business.
(17) Proof of loss claim form--A form prescribed by the department and submitted by an insurance company certifying right of possession to a vehicle stored at a vehicle storage facility.
(18) Registered owner--Each person in whose name a vehicle is titled under Transportation Code, Chapter 501, or in whose name a vehicle is registered under Transportation Code, Chapter 502.
(19) Vehicle--A motor vehicle subject to registration under Transportation Code, Title 7, Subtitle A, or any other device designed to be self-propelled or transported on a public highway.
(20) Vehicle owner--A person:
(A) in whose name a vehicle is registered under the Certificate of Title Act, Transportation Code, Chapter 501;
(B) in whose name a vehicle is registered under Transportation Code, Chapter 502, or a member of that person's immediate family;
(C) who holds a vehicle through a valid lease agreement;
(D) who is an unrecorded lienholder with a right to possession; or
(E) who is a lienholder that holds an affidavit of repossession and has the right to repossess a vehicle.
(21) Vehicle storage facility (VSF)--A garage, parking lot, or other facility owned or operated by a person other than a governmental entity for storing or parking 10 or more vehicles per year.
(22) Vehicle transfer--Any movement of a vehicle out of a VSF, prior to its release as prescribed in this chapter.
85.20. Exemptions. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) These rules do not apply to a vehicle parked or stored at a VSF with the consent of the vehicle's owner.
(b) These rules do not apply to VSFs operated by persons licensed under Texas Occupations Code, Chapter 2301.
85.200. License Required--Vehicle Storage Facility. (New section adopted effective April 15, 2008, 33 TexReg 2931)
A person may not operate a VSF unless the person holds a VSF license issued by the department.
For purposes of this section, each VSF physical location or lot is a separate facility and must obtain a VSF license.
85.201. License Requirements--Vehicle Storage Facility License. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 15, 2018 43 TexReg 85)
85.202. License Approval Vehicle Storage Facility. (New section adopted effective April 15, 2008, 33 TexReg 2931)
The department may deny a VSF license application if the applicant:
(1) knowingly supplied false or incomplete information on the application;
(3) the VSF for which the license is sought does not meet the standards for storage facilities established by these rules.
85.203. License Requirements--Vehicle Storage Facility License Renewal. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) To renew VSF license, an applicant must:
(b) To renew and maintain continuous licensure, the renewal requirements under this section must be completed prior to the expiration of the license. A late renewal means the licensee will have an unlicensed period from the expiration date of the expired license to the issuance date of the renewed license. During the unlicensed period, a person may not perform any functions of a VSF that requires a license under this chapter.
85.204. License Requirements--Vehicle Storage Facility Employee License. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended effective January 15, 2018, 43 TexReg 86)
(b) A person may not work at a VSF unless the individual holds:
85.206. License Requirements--Vehicle Storage Facility Employee License Renewal. (New section adopted effective May 3, 2010, 35 TexReg 3482; amended effective January 15, 2016 43 TexReg 86)
85.207. License--Notice of Proposed Denial, Opportunity to Comply. (New section adopted effective May 3, 2010, 35 TexReg 3482)
(a) If the department recommends denial of an application for a license under this chapter, the department shall send written notice of the decision to the applicant at the address shown on the application by certified mail, return receipt requested.
85.208. Department Notifications to Licensee. (New section adopted effective May 3, 2010, 35 TexReg 3482)
Unless otherwise provided for by statute or this chapter, the department may send notice of department proposed actions and decisions through email sent to the last email address designated by the licensee.
85.209. Licenses--License Terms. (New section adopted effective May 3, 2010, 35 TexReg 3482)
A license issued by the department is valid only for the person who applied for the license; applies only to the single VSF or person named on the license; and is valid for 12 months from the date of issuance.
85.400. Insurance Requirements. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) An applicant or VSF licensee is responsible for ensuring the electronic submission of a certificate of insurance when applying for an initial license, submitting a license renewal, changing a business name or affiliation, and upon request of the department.
(b) The certificate of insurance must be obtained from and submitted by an insurance company licensed to do business in Texas pursuant to the Texas Insurance Code.
(c) The facility name and address shown on the proof of insurance form must be the same as the name and address on the license. The VSF licensee is responsible for ensuring that the insurance information on file with the department reflects the correct name and address of the insured facility.
(d) The VSF licensee must obtain insurance for the insured facility that meets the following requirements:
(1) Insurance coverage shall be in an amount of not less than:
(A) $9,000 per claim if the VSF has space to store not more than 50 motor vehicles;
(B) $18,000 per claim if the facility has space to store 51 to 99 motor vehicles; and
(C) $25,000 per claim if the facility has space to store 100 or more motor vehicles.
(2) The VSF licensee's insurance policy must be kept in full force and effect so long as the facility is operating.
(3) The certificate of insurance must contain a provision obligating the insurer to give the department thirty-day notice before the effective date of a policy cancellation date. Notice must be in a form acceptable to the department.
(e) The department may revoke a VSF license if the insurance has been canceled and a replacement policy has not been filed prior to the cancellation date.
85.450. Inspections--General. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 15, 2018 43 TexReg 86)
(a) All VSFs shall be inspected periodically, or as a result of a complaint. These inspections will be performed to determine compliance with the requirements of the Act and these rules. In addition, the department may make information available to VSF owners and managers on best practices for risk-reduction techniques.
85.451. Periodic Inspections. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 15, 2018 43 TexReg 86)
85.453. Corrective Actions Following Inspection. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(1) the department shall provide the VSF a list of required corrective actions;
(2) within 10 days after receiving the list of required corrective actions, the VSF shall complete all corrective actions and provide written verification of the corrective actions to the department; and
(b) The department may assess administrative penalties and/or administrative sanctions for violations or for failure to complete corrective actions timely or provide written verification to the department timely, in accordance with §85.900.
85.650. Towing, and Storage Advisory Board. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended effective January 16, 2012, 37 TexReg 112l; amended effective January 15,2018 43 TexReg 86)
85.700. Responsibilities of the Licensee--Proof of Exempt Status. (New section adopted effective April 15, 2008, 33 TexReg 2931)
Vehicle storage facilities shall be responsible for providing proof regarding whether or not a vehicle was stored with the vehicle owner's consent.
85.701. Responsibilities of Licensee--Advertising. (New section adopted effective April 15, 2008, 33 TexReg 2931)
A licensee may not engage in false, misleading, or deceptive advertising.
85.702. Responsibilities of Licensee--Changes to VSF Operator and VSF Employee License. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) A licensed VSF operator shall notify the department of changes to any of following information:
(1) change in the business name no later than the effective date of the change;
(2) change of mailing or physical address no later than the effective date of the change;
(3) change in the facility's storage capacity no later than the effective date of the change; or
(4) change in the company’s drug testing policy.
(b) VSF employees licensed under these rules must submit a change of mailing address to the department within thirty days of the change.
85.703. Responsibilities of Licensee--Notice to Vehicle Owner or Lienholder. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended effective January 16, 2012, 37 TexReg 112; amended effective March 15, 2014, 39 TexReg 1704; amended effective January 15, 2018 43 TexReg 87))
(a) If a vehicle is removed by the vehicle owner or authorized representative within 24 hours after the VSF receives the vehicle, notification as described in subsections (b) - (j) does not apply.
(1) If a vehicle is registered in Texas, the VSF shall notify the vehicle's registered owner and primary lien holder by certified mail, return receipt requested, registered, or electronic certified mail within five days, but no sooner than within 24 hours of receipt of the vehicle.
(c) The operator of a VSF shall send the notice required by subsections (b) (1) and (b) (2) to an address obtained by mail or electronically from:
(1) the postmark indicates that the notice was mailed within the period described by subsection (b); or;
(2) the notice was published as provided by subsection (f).
(g) Notice by publication is not required if each notice sent in accordance with this Section is returned because:
(G) a notice of the towed vehicle owner's right under Texas Occupations Code, Chapter 2308, to challenge the legality of the tow involved; and
(A) the full name, street address, telephone number, and VSF license number of the VSF, and the Department’s internet address;
85.704. Responsibilities of Licensee--Second Notice; Consent to Sale. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 16, 2012, 37 TexReg 112; amended effective March 15, 2014, 39 TexReg 1704; amended effective January 15, 2018 43 TexReg 88)
(1) the information listed in §85.703(h)(1) (A) - (H);
(2) a statement of the right of the facility to dispose of the vehicle under subsection (a) and (b);
(1) the information listed in §85.703(i)(2); and
85.705. Responsibilities of Licensee--Report to Law Enforcement. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482, amended effective January 16, 2012, 37 TexReg 112)
(a) A vehicle storage facility accepting a vehicle that is towed under this chapter shall, within two hours after receiving the vehicle, report to the local law enforcement agency with jurisdiction over the area from which the vehicle was towed:
(b) The report required by this section must be made by:
(3) delivered personally;
(4) by facsimile, or
(5) in any manner prescribed by a law enforcement agency.
(c) VSF records shall indicate specifically to whom the report required by subsection (b) was reported and in what manner, as well as the time and date of the report, or the unique control or tracking number assigned to the report by local law enforcement documenting the report.
(d) This section does not apply to a vehicle received as a result of an incident management tow requested by law enforcement unless the law enforcement agency requests a report of incident management tows within its jurisdiction.
85.706. Responsibilities of Licensee--Documentation and Records. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended effective January 16, 2012, 37 TexReg 112)
(a) Retention of written documentation. Vehicle storage facility licensees must maintain a copy of the original written documentation regarding their operations for a period of two years from the date of the release or disposal of the vehicle. Written documentation shall be in the form of:
(1) motor vehicle registration checks;
(2) notification letters;
(3) certified return receipts;
(4) tow tickets (if applicable);
(5) bills for service;
(6) auction sales receipts;
(7) inventory (if applicable);
(8) certificates of authority to demolish; and
(9) any authorized document used to release a vehicle, including but not limited to a title, affidavit of right of possession and control, or court order.
(b) Minimum information. Each licensee shall keep written records on each vehicle kept or stored at the VSF. These records shall contain:
(1) the year, make, model, color, correct license plate number, state issuing the license, and correct vehicle identification number of the vehicle;
(2) the date, time and location from which the vehicle was towed, and name of person or company who authorized the tow;
(3) the tow operator’s TDLR license number, the name of the company that towed the vehicle, and the license plate numbers of plates issued to the tow truck under Transportation Code, §502.180, and §504.508;
(4) the date the vehicle was released, the name of the individual to whom the vehicle was released, and the type of identification (Texas drivers license or other state or federally issued photo identification) and identification number provided by the individual to whom the vehicle was released;
(5) the date of any vehicle transfer, and the address of the location to which the vehicle was transferred along with the name of the towing company and tow operator’s with TDLR license number, who made the transfer;
(6) a copy of any certificate of title issued after the vehicle came into the possession of the VSF, any certificate of authority to demolish, any law enforcement auction sales receipt, or any transfer document issued by the State of Texas for the vehicle if vehicle ownership has been transferred due to any action of the VSF or if the vehicle has been disposed of or demolished; and
(7) all amounts received at the time the vehicle was released, including the specific nature of each charge.
(c) Nonconsent tow tickets. The VSF shall ensure that nonconsent tow tickets (if applicable) contain the licensed name of the towing company, publicly listed telephone number, the towing company certificate of registration number and the TDLR license number of the towing operator.
(d) Regulatory documents. A VSF may not accept a vehicle for storage unless the VSF makes and maintains a copy of the towing operator’s valid TDLR operator’s license and tow truck cab card for the operator and truck delivering the vehicle for storage. The copies required by this subsection must be current and valid on the date a vehicle is delivered to the VSF for storage.
(e) Availability of documentation. All documents required by this chapter shall be made available by the licensee, the licensee's agent, or the licensee's employee for inspection and copying upon request by department personnel, or a law enforcement officer, during the same hours the VSF must ensure that vehicles are available for release to the vehicle owner.
(f) Care and custody of records. Required records shall be kept under the care and custody of the licensee for at least two years from the date the vehicle was released or disposed of.
85.707. Responsibilities of Licensee--Notice of Complaint Procedure. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) Each VSF shall notify the vehicle owner of the department’s website and email address, mailing address, and telephone number, for purposes of directing complaints regarding the vehicle storage to the department.
(b) The licensee may use a legible sticker or rubber stamp to convey the required information required by subsection (a). The notice shall be included on:
(1) a sign prominently displayed to the public at the place of payment, with letters at least one inch in height, and a contrasting background; and
(2) the front page of any bill for service.
85.708. Responsibilities of Licensee--Rights of Owner or Authorized Representative. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 16, 2012, 37 TexReg 112)
(a) A VSF must allow a person claiming to be the owner of a vehicle stored or parked at the facility to have access to the vehicle's glove compartment, console, or other interior storage area if documents necessary to establish the person's identity or ownership of the vehicle are located in the glove compartment, console, or other interior storage area.
(b) When a person demonstrates ownership or right to possession of a motor vehicle stored at a VSF, the person or his/her authorized representative shall:
(1) be entitled to inspect a copy of the tow ticket for the motor vehicle and shall not be required to pay any fees or charges before doing so (reasonable opportunity to view the tow ticket displayed behind a glass enclosure satisfies this requirement);
(2) be given access to, and be allowed to remove, any personal belongings in the vehicle, unless otherwise indicated by a law enforcement officer (the VSF must require a receipt from the person to whom the personal belongings are released for any such property removed from the stored vehicle by the vehicle owner or authorized representative);
(3) have access, during normal business hours, to the vehicle for the purposes of insurance and/or repair estimates; and
(4) on request, have access to the current nonconsent towing fees schedule relating to required posting at a VSF for the towing company that towed the vehicle to the VSF.
(c) When right of possession is demonstrated by submission of a proof of loss claim form from an insurance company, subsection (b)(2) does not apply.
(1) For purposes of this subsection, when an insurance company presents a proof of loss claim form, the term “access” includes, but is not limited to:
(A) verifying the present existence of such vehicle,
(B) confirming the loss,
(C) taking measurements and photographs of the interior and exterior of said vehicle,
(D) recording or attempting to ascertain mileage,
(E) verifying the VIN plate or label,
(F) opening or attempting to open doors, hood or trunk panels,
(G) writing a repair estimate, documenting features, options and conditions, and
(H) when authorized by the owner, operator or lessee of the vehicle, removing the vehicle from the VSF.
(2) Upon the request of an insurer presenting a proof of loss claim form, or upon the request of a tow truck operator possessing a notice of right of possession for salvage form, a VSF shall provide a legible copy of the tow ticket created by the towing operator responsible for towing the vehicle to the VSF to either:
(A) the insurer, within three business days of the insurer presenting the proof of loss claim form; or
(B) the tow truck operator, at the time the tow truck operator presents a copy of the notice of right to possession for salvage form to the VSF.
(3) The VSF may provide the copy of the tow ticket to the insurer, via regular mail, facsimile, or by other electronic means, provided the insurer provides the VSF with a specific mailing address, facsimile phone number, web address or email address to which to send the tow ticket.
(d) A VSF may not request a vehicle owner or operator to sign an authorization form for a tow, repair or any other service if the storage of the vehicle is the result of a tow initiated by law enforcement.
85.709. Responsibilities of Licensee--Unpermitted Tow Trucks Prohibited. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482)
Unless authorized by another law or regulation, a VSF shall not allow a tow truck that is not permitted under Texas Occupations Code, Chapter 2308, to enter the storage area of the facility.
(a) Release of vehicles. The VSF must comply with the following requirements when releasing vehicles.
(1) The VSF shall comply with all provisions of Texas Occupations Code, Chapter 2308, Subchapter J, relating to the rights of the owner of a stored vehicle, including providing the name, address, and telephone number of:
(A) each justice court in the county from which the vehicle was towed or, for booted vehicles, the county in which the parking facility is located, or the address of an Internet website maintained by the Office of Court Administration of the Texas Judicial System that contains the name, address, and telephone number of each justice court in that county; and
(B) the name, address and telephone number of the person or law enforcement agency that authorized the tow.
(2) The VSF shall provide the owner or the owner's representative with a tow ticket. The tow ticket may be combined with a VSF Invoice; provided, the combined tow ticket and VSF Invoice comply with the following requirements:
(A) tow charges must be separated from VSF storage charges and each category of charges must be preceded by a heading or label identifying the charges as “Tow Charges” or “Storage Charges”;
(B) tow charges must appear on the combined statement of charges exactly as stated on the tow ticket prepared by the tow operator and provided to the VSF at the time the vehicle is presented for storage; and
(C) the combined statement of charges meet and contain all required elements of a separate VSF invoice and tow ticket; provided the license number and name of the tow operator may be excluded.
(7) If a VSF does not accept vehicles 24 hours a day, such facility must have vehicles available for release within one hour between the hours of 8:00 a.m. and midnight Monday-Saturday and from 8:00 a.m. to 5:00 p.m. on Sundays except for nationally recognized holidays. It is not the intent of this section to require release of vehicles after midnight, and refusal to release after that time, even with notice after 11:00 p.m., is not a violation of this section.
(c) A person may not execute, submit or use a department-approved form or other document which contains a false, fictitious, dishonest, or fraudulent statement of a material fact used for the purpose of obtaining possession of or access to a motor vehicle stored by a facility licensed under Texas Occupations Code, Chapter 2303.
(1) For purposes of this section, a false, fictitious, dishonest, or fraudulent statement related to authorization from the vehicle owner to the person or entity named in the form or document is a material fact.
(b) A VSF in violation of subsection (a), in addition to administrative penalties, may not charge for the storage of a vehicle beyond the date payment by credit card is tendered.
85.712. Responsibilities of Licensee--Release of Vehicles; Payment by Lienholder or Insurance Company. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) A lienholder who repossesses a vehicle delivered to a VSF is liable to the operator of the facility for any money owed to the operator in relation to delivery of the vehicle to or storage of the vehicle in the facility regardless of whether an amount accrued before the lienholder repossessed the vehicle.
(b) An insurance company that pays a claim of total loss on a vehicle in a VSF is liable to the operator of the facility for any money owed to the operator in relation to delivery of the vehicle to or storage of the vehicle in the facility regardless of whether an amount accrued before the insurance company paid the claim.
85.713. Responsibilities of Licensee--Release of Vehicles From Law Enforcement Hold. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) The licensee may not refuse to release the vehicle to the vehicle's owner or insurance company due to nonpayment by the law enforcement agency that directed the towing and storage of the vehicle for evidentiary or examination purposes.
(b) Pursuant to 37 Texas Administrative Code §4.16, relating to commercial vehicle rules and enforcement procedures, a commercial motor vehicle stored at the direction of the Texas Department of Public Safety shall not be released until the amount of delinquent administrative penalty assessed against the vehicle owner has been paid.
85.714. Responsibilities of Licensee--Provide Insurance Information to Vehicle Owner. (New section adopted effective April 15, 2008, 33 TexReg 2931)
Upon request by the vehicle owner or the vehicle owner's authorized representative, the licensee shall provide the name, address, and telephone number of the insurance company that is providing required liability insurance coverage to the facility, in addition to the facility's insurance policy or certificate number for purposes of filing a claim for loss or damage of property. The insurance information shall be the same as that on file with the department.
85.715. Responsibilities of Licensee--Publicly Listed Telephone Number. (New section adopted effective April 15, 2008, 33 TexReg 2931)
All VSFs shall have a publicly listed telephone where the VSF can be contacted. If the telephone number is changed from the number in the most recent VSF application, the VSF shall give the department written notice of the change prior to the date the new number is used. The notice shall include the storage lot's name, its location, its license number, the old telephone number, and the new telephone number.
85.716. Responsibilities of Licensee--Inspection of Stored Vehicles. (New section adopted effective April 15, 2008, 33 TexReg 2931)
When the VSF accepts a vehicle towed without the vehicle owner's consent, the VSF shall inspect the vehicle and note as an addition on the tow ticket any differences from the information previously set out thereon, but shall not write over or deface any prior writing on the tow ticket. If the license plate number or vehicle identification number on the tow ticket is incorrect, the VSF shall note on its records the correct number and notify every previously advised person within 48 hours of noting the correct information.
85.718. Responsibilities of Licensee--Use of Stored Vehicles Prohibited. (New section adopted effective April 15, 2008, 33 TexReg 2931)
No stored vehicle may be used for personal or business use without the written consent of the vehicle's owner.
85.719. Responsibilities of Licensee--Reasonable Storage Efforts; Impoundment of Stored Vehicles; Impoundment Fees. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) Reasonable storage efforts. A VSF operator shall make reasonable efforts necessary for the storage of a vehicle, such as locking doors, rolling up windows, and closing doors, hatchbacks, sunroofs, trunks, hoods, or convertible tops. Such actions are included in the storage fee as set forth in this chapter.
(b) Impoundment of stored vehicles. If doors, windows, convertible tops, hatchbacks, sun roofs, trunks, or hoods are broken or inoperative, materials such as plastic or canvas tarpaulins must be used to ensure the impoundment of the stored vehicle.
(c) Impoundment Fees. A VSF operator is entitled to charge a fee for impoundment if, in addition to the requirements set out in subsection (b), the VSF operator, at a minimum:
(1) conducts a written inventory of any unsecured personal property contained in the vehicle;
(2) removes and stores all such property for which safekeeping is necessary, and specifies such removal and storage on the written inventory; or
(3) obtains motor vehicle registration information for the vehicle from the Texas Department of Transportation or analogous state agency.
85.720. Responsibilities of Licensee--Repair; Alteration of Stored Vehicles Prohibited. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 16, 2012, 37 TexReg 112)
A vehicle accepted for storage may not be repaired, altered, or have parts removed or replaced without consent of the vehicle owner or owner's authorized representative.
85.721. Responsibilities of Licensee--Vehicle Transfers. (New section adopted effective April 15, 2008, 33 TexReg 2931)
When a motor vehicle has been delivered to a VSF, the vehicle may not be moved from that facility within the first 31 days of storage without the vehicle owner's authorization. If it becomes necessary to move the vehicle during the first 31 days of storage because of VSF capacity problems, neither the registered vehicle owner nor recorded lienholder(s) may be assessed an additional charge. The VSF must send notice in accordance with these rules, except that the notice must be sent no less than 72 hours prior to moving the vehicle. If a vehicle is moved from a VSF, the licensee shall:
(1) charge only those fees otherwise permitted by §85.722 after the vehicle is towed to another location without the vehicle owner's permission;
(2) retain records and inform the vehicle owner upon request of the location where the vehicle is at all times from the date on which the vehicle is transferred from the VSF until such time as the vehicle is recovered by the vehicle owner, or a new certificate of title, a certificate of authority to demolish, a police auction sales receipt, or a transfer document is issued by the State of Texas; and
(3) maintain a record of the ultimate disposition of the vehicle, including the date and name of the person to whom the vehicle is released or a description of the document under which the vehicle was sold or demolished.
85.722. Responsibilities of Licensee--Storage Fees and Other Charges. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective January 16, 2012, 37 TexReg 112; amended effective January 15, 2018 43 TexReg 88; amended effective January 15, 2018 43 TexReg 88)
(a) For the purposes of this section, “VSF operator" includes a garage, parking lot, or other facility that is:
(1) A VSF may not charge a vehicle owner more than $50 for notification under these rules. If a notification must be published, and the actual cost of publication exceeds 50% of the notification fee, the VSF operator may recover the additional amount of the cost of publication. The publication fee is in addition to the notification fee.
(d) Daily storage fee. A VSF may not charge less than $5.00 or more than $20 for each day or part of a day for storage of a vehicle that is 25 feet or less in length. A VSF operator shall charge a fee of $35 for each day or part of a day for storage of a vehicle that exceeds 25 feet in length.
(3) A VSF that has accepted into storage a vehicle not registered in Texas shall not charge for more than five days of storage before the date the request for owner information is sent to the appropriate governmental entity or to the private entity authorized by that governmental entity to obtain title, registration, and lienholder information using a single vehicle identification inquiry.
85.723. Responsibilities of Licensee--Disposal of Certain Vehicles. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) Applicability. A VSF operator may not dispose of a vehicle unless the operator has complied with all provisions of the Act, including §§2303.151-2303.154 and §2303.157, concerning notification and disposal of abandoned vehicles.
(b) Documentation and records. A VSF operator shall keep complete and accurate records of any vehicle disposed of under these rules. These records shall include:
(1) a copy of all forms completed by the VSF and provided to the vehicle buyer;
(2) copies of all notifications issued to the registered owner and all recorded lienholders, regardless of whether the notifications were mailed or published; and
85.724. Responsibilities of Licensee--Disposition of Abandoned Nuisance Vehicle. (New section adopted effective April 15, 2008, 33 TexReg 2931)
(a) A VSF that holds an abandoned nuisance vehicle is not required to send or publish a second notice and is entitled to dispose of the vehicle on the 30th day after the date the notice is mailed or published under §2303.151 or §2303.152 of the Act.
(b) The VSF must:
(1) notify the Texas Department of Transportation that notices under Chapter 683, Transportation Code, have been provided and shall pay a fee to the Texas Department of Transportation; or
(2) notify the appropriate law enforcement agency and pay a fee to that agency.
(c) A law enforcement agency described by subsection (b)(2) may sign a document issued by the Texas Department of Transportation.
(d) Public sale. A VSF may dispose of a vehicle through a public sale in compliance with §2303.157 of the Act. Disputes over the sale or dispersal of proceeds from the sale of the vehicle may be pursued through a court of appropriate jurisdiction.
85.725. Responsibilities of Licensee--Drug Testing Policy. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended effective January 16, 2012, 37 TexReg 112; amended effective August 15, 2013, 38 TexReg 5060)
(1) Purpose and Scope. This drug testing policy provides guidance to supervisors and VSF employees about their responsibilities under this policy. Except as stated in paragraph (12), this policy applies to all VSF employees and all VSF job applicants.
(2) Definitions. The words and terms used in this policy shall have their ordinary meaning unless the words or terms are used in Texas Occupations Code, Chapter 2303 or Title 49 Code of Federal Regulation Part 40, in which event the words or terms shall have the meaning designated in those regulations.
(3) Consent Form.
(A) Before a drug test is administered, VSF employees and applicants are required to sign a consent form authorizing the test and permitting release of test results to the medical review officer (MRO), the company, and the department. The consent form shall provide space for employees and applicants to acknowledge that they have been notified of the drug testing policy.
(B) The consent form shall set forth the following information:
(i) the procedure for confirming and verifying an initial positive test result;
(ii) the consequences of a verified positive test result; and
(iii) the consequences of refusing to undergo a drug test.
(C) The consent form also provides authorization for certified or licensed attending medical personnel to take and have analyzed appropriate specimens to determine if the tested drugs were present in the towing operator’s and applicant’s system.
(4) Compliance with Drug Testing Policy. The failure or refusal by a VSF employee or applicant to cooperate fully by signing necessary consent forms or other required documents or the failure or refusal to submit to any test or any procedure under this policy in a timely manner will be grounds for refusal to hire or for termination. The submission by an applicant or employee of a urine sample that is not his/her own or is a diluted specimen shall be grounds for refusal to hire or for termination.
(5) General Rules. This drug testing policy is governed by these general rules:
(A) VSF employees shall not take or be under the influence of any drugs unless prescribed by the employee's licensed physician.
(B) VSF employees are prohibited from engaging in the manufacture, sale, distribution, use, or unauthorized possession of illegal drugs at any time.
(C) All VSF property is subject to inspection at any time without notice. There should be no expectation of privacy in or on such property. VSF property includes, but is not limited to, vehicles, desks, containers, files, and lockers.
(D) Any VSF employee convicted of violating a criminal drug statute shall inform his/her supervisor of such conviction (including pleas of guilty and nolo contendere) within five days of the conviction occurring. Failure to inform the supervisor subjects the employee to disciplinary action up to and including termination for the first offense. The VSF will notify the Texas Department of Licensing and Regulation of the conviction (including pleas of guilty and nolo contendere).
(A) Pre-employment. All applicants for positions requiring a VSF employee license, who have received a conditional offer of employment, must take a drug test before receiving a final offer of employment.
(B) Annual. All VSF employees employed by a VSF must complete at least one scheduled drug test each 12-month period from the date of the initial license or renewal.
(iii) Each licensed VSF participating in a consortium must ensure that the consortium performs random drug testing on at least 25% of the total number of the licensed VSF employees participating in and tested by the consortium.
(D) Return-to-Duty and Follow-Up.
(i) Any VSF employee who has violated this drug testing policy and is allowed to return to work must submit to a return-to-duty test. Follow-up tests will be unannounced, and at least six tests will be conducted in the first 12 months after a VSF employee returns to duty. Follow-up testing may be extended for up to 60 months following return to duty. The test results of all return to duty and follow-up must be negative.
(ii) The VSF employee will be required to pay for his or her return-to-duty and follow-up tests accordingly.
(7) Drug Testing. The drugs for which tests are required under this policy are marijuana, cocaine, amphetamines, phencyclidine (PCP), and opiates.
(8) Specimen Collection Procedures.
(A) All urine specimens will be collected by a laboratory that is certified and monitored by the federal Department of Health and Human Services (DHHS).
(B) Drug testing procedures include split specimen procedures. Each urine specimen is subdivided into two bottles labeled as a "primary" and a "split" specimen. Only the primary specimen is opened and used for the urinalysis. The split specimen bottle remains sealed and is stored at the laboratory.
(C) If the analysis of the primary specimen confirms the presence of drugs, the VSF employee has 72 hours to request sending the split specimen to another federal DHHS certified laboratory for analysis. The VSF employee will be required to pay for his or her split specimen test(s).
(D) For the VSF employee’s protection, the results of the analysis will be confidential except for the testing laboratory. After the MRO has evaluated a positive test result, the VSF employee will be notified, and the MRO will notify the company.
(E) The VSF will notify the department of the positive test result. Notification to the department must occur within 3 days of receipt of the confirmed test results from the MRO. The notification must include the:
(i) VSF employee’s name;
(ii) VSF employee license number;
(iii) date of the positive test;
(iv) substance detected by the drug test; and
(v) disciplinary action imposed for violation of the drug testing policy.
(9) Reporting and Reviewing of Drug Testing Results.
(A) The company shall designate a medical review officer (MRO) to receive, report, and store testing information transmitted by the laboratory. This person shall be a licensed physician with knowledge of substance abuse disorders.
(B) The laboratory shall report test results only to the designated MRO, who will review them in accordance with accepted guidelines and the procedures adopted by the federal Department of Transportation.
(C) Reports from the laboratory to the MRO shall be in writing or by fax. The MRO may talk with the VSF employee by telephone upon exchange of acceptable identification.
(D) Neither the company, the laboratory, nor the MRO shall disclose any drug test results to any other person except under written authorization from the VSF employee, unless such results are necessary in the process of resolution of accident (incident) investigations, requested by court order, or required to be released to parties having a legal right-to-know as determined by state and federal law.
(10) Distribution of Information to VSF Employee. The minimal distribution of information for all VSF employees will include the display and distribution of:
(A) informational material on the physical and mental effects of drugs;
(B) an existing community services hotline number, available drug counseling, rehabilitation, and assistance program;
(C) the company’s policy regarding the use of prohibited drugs and/or alcohol; and
(D) the consequences or disciplinary action that may be imposed upon VSF employees for violating the drug policy.
(11) Consequences of a Confirmed Positive Drug Test.
(A) Job applicants will be denied employment if their initial positive pre-employment drug test results have been confirmed.
(B) If a VSF employee’s positive drug test result has been confirmed, the VSF employee will stand down from VSF duties and may be subject to disciplinary action up to and including termination.
(C) The company may consider the following factors in determining the appropriate disciplinary response: the VSF employee’s work history, length of employment, current work assignment, current job performance, and existence of past disciplinary actions.
(D) No disciplinary action may be taken pursuant to this drug policy against VSF employees who voluntarily identify themselves as drug users, obtain counseling, rehabilitation and comply with return to duty and follow-up drug testing.
(12) Exceptions.
(A) VSF employees subject to random drug testing under Title 49 Code of Federal Regulation, Part 40 who have been randomly tested in the 12-month reporting period are exempt from the annual test requirement, provided that the VSF employee tested negative and the negative test results are submitted to and verified by the MRO.
(B) VSF employees holding a valid towing operator license issued by the department who are tested for drugs in accordance with 16 Texas Administrative Code Chapter 86 are exempt from this section.
(b) Independent drug testing policy.
(1) A VSF may file an independent drug testing policy.
(2) The filing must describe how the independent drug testing policy is as stringent as each provision of the model policy set forth in subsection (a).
(c) Compliance. A VSF must adopt and implement a drug testing policy compliant with subsection (a) or (b).
85.726. Responsibilities of License--Honesty, Trustworthiness, and Integrity. (New section adopted effective March 15, 2014, 39 TexReg 1704)
A person licensed under this chapter must conduct vehicle storage facility operations with honesty, trustworthiness and integrity.
85.800. Fees. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective May 3, 2010, 35 TexReg 3482; amended January 15, 2018 43 TexReg 89)
85.900. Administrative Sanctions and Penalties. (New section adopted effective April 15, 2008, 33 TexReg 2931)
A person that violates Texas Occupations Code, Chapter 2303, a rule, or an order of the Executive Director or Commission relating to Texas Occupations Code, Chapters 2303, will be subject to administrative sanctions and/or administrative penalties under Texas Occupations Code, Chapters 51 and 2303 and applicable agency rules.
85.1000. Technical Requirements--Facility Fencing Requirements. (New section adopted effective April 15, 2008, 33 TexReg 2931)
Enclosure and security of stored vehicles.
(1) Fencing. If not enclosed by a five-foot high fence on or before September 1, 1985, all VSFs shall be completely enclosed by a fence at least six feet high with a gate, which is locked at all times when the licensee or an agent or employee is not at the storage lot. No two VSFs may operate within the same fenced area.
(2) Security of vehicles.
(A) No vehicle may be stored or kept at any licensed VSF unless it is kept inside the fenced or enclosed area at all times. For purposes of this subparagraph, the term "enclosed" shall mean inside a building.
(B) A vehicle accepted for storage in a VSF must be secured to prevent theft of the vehicle or its contents, including but not limited to locking doors, closing windows and hatchbacks, and raising or covering convertible tops.
85.1001. Technical Requirements--Storage Lot Surface. (New section adopted effective April 15, 2008, 33 TexReg 2931)
All VSFs shall have an all-weather surface such as concrete, asphalt, black-top, stone, macadam, limestone, iron ore, gravel, shell, or caliche, that enables the safe and effective movement of stored vehicles upon all portions of the lot, both under their own power and under tow, at all times, regardless of prevailing weather conditions. The surface shall also be free of overgrown vegetation.
85.1002. Technical Requirements--Storage Lot Lighting. (New section adopted effective April 15, 2008, 33 TexReg 2931)
All VSFs shall maintain illumination levels adequate for nighttime release of vehicles. The term "adequate" shall mean sufficient to allow inspection of a vehicle for damage at the time of release. At a minimum, there must be one lighting fixture containing at least a 250-watt element for each 1/4 acre of storage area.
85.1003. Technical Requirements--Storage Lot Signs. (New section adopted effective April 15, 2008, 33 TexReg 2931; amended effective September 1, 2010, 35 TexReg 7786; amended effective January 16, 2012, 37 TexReg 112; amended effective August 15, 2013, 38 TexReg 5060; amended effective January 1, 2016, 40 TexReg 9122; amended effective January 15, 2018 43 TexReg 89)
(a) Facility information. All VSFs shall have a clearly visible and readable sign at its main entrance. Such sign shall have letters at least 2 inches in height, with contrasting background, be readable at 10 feet, and contain the following information:
(c) Nonconsent towing fees schedule. All VSFs shall place a clearly readable sign where payment to the VSF is made which states:
(d) Instruments accepted for release of vehicle. VSFs shall have a sign describing the documents that may be presented by the vehicle owner or his/her authorized representative to obtain possession of the vehicle. This sign shall list all instruments as described in §85.710(a)(3)(A) – (I), and shall also state: "Affidavit of Right of Possession Furnished Upon Request." The sign may be affixed to the payment window.
85.1004. Technical Requirements--Company Records. (New section adopted effective, January 16, 2012, 37 TexReg 112)
(a) General records to be maintained. Except as provided in paragraphs (1) and (2), every vehicle storage facility shall maintain at a principal office in Texas all records and information required by the department.
(1) Texas firms. If a vehicle storage facility wishes to maintain records at a location other than its principal office in Texas, the vehicle storage facility shall make a written request to the department. A vehicle storage facility may not begin maintaining records at an alternate location until the request is approved by the department.
(2) Out-of-state firms. A vehicle storage facility whose principal business address is located outside the state of Texas shall maintain records required under this section at its principal office in Texas. Alternatively, a vehicle storage facility may maintain such records at an out-of-state facility if the vehicle storage facility reimburses the department for necessary travel expenses and per diem for any inspections or investigations conducted under this chapter.
(b) Preservation and destruction of records. All books and records generated by a vehicle storage facility must be maintained for not less than two years at the vehicle storage facility's principal business address.