TITLE transportation

Part I. Texas Department of Transportation

Chapter 17. Vehicle Titles and Registration

Subchapter B. Motor Vehicle Registration

43 TAC §§17.21, 17.23

The Texas Department of Transportation proposes amendments to §17.21 and §17.23, concerning temporary registration permits. The amendments are necessary to include provisions for exemption from temporary permits for foreign commercial vehicles operating in the border commercial zone.

Senate Bill 370, 75th Legislature, 1997 added Texas Civil Statutes, Article 6675c-2 to provide that a law or agreement of less than statewide application that is adopted by an agency or political subdivision of this state that regulates motor carriers or commercial motor vehicles or the operation of those carriers or vehicles in the transportation of cargo across the border or within an area adjacent to the border by foreign commercial motor vehicles has no effect unless the law or agreement applies uniformly to an entire border commercial zone and only in a border commercial zone.

Texas Civil Statutes, Article 6675c-2 provides that it supersedes that portion of any paired city, paired state, or similar understanding governing foreign commercial motor vehicles or motor carriers entered into under §502.054, Transportation Code, or any other law, and provides the boundaries of a border commercial zone may be modified or established only as provided by federal law.

Article 6675c-2 also provides for the exemption of a foreign commercial motor vehicle from registration if it spends only a short period of time in the border commercial zone.

Section 17.21 is amended to provide a definition for border commercial zone and department.

Section 17.23(g) is amended to provide that Texas Civil Statutes, Article 6675-c applies to agreements with other jurisdictions. Section 17.23 is further amended by adding subsection (h) to provide criteria for an exemption from the display of a temporary registration permit for foreign commercial vehicles operating in the border commercial zone if time in the border commercial zone is not more than 24 hours, or not more than 48 hours if the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle, and all financial requirements are satisfied. The vehicle must also be registered by the law of another state or country as evidenced by a valid metal license plate, and the country in which the person owns or controls the vehicle must provide a reciprocal exemption for commercial motor vehicles owned or controlled by residents of Texas.

Frank J. Smith, Director, Budget and Finance Division, has determined that for the first five-year period the amendments are in effect, there will be no fiscal implications for the state or local government as a result of enforcing or administering the amendments. There will be no economic costs to individuals who are required to comply with the sections as proposed.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments.

Mr. Dike also has determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of implementing the amendments will be to clarify the boundaries of the border commercial zones. There will be no effect on small businesses.

Written comments on the proposal may be submitted to Jerry L. Dike, Director, Vehicle Titles and Registration, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of written comments will be 5:00 p.m. on March 16, 1998.

The amended sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c-2, which authorizes the department to carry our provisions of those laws governing the issuance of motor vehicle registration.

No statutes, articles, or codes are affected by the proposed amendments.

§17.21. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

Border commercial zone

- A commercial zone established under Title 49, C.F.R., Part 372 which is contiguous to the border with Mexico.

Department

- The Texas Department of Transportation.

§17.23. Temporary Registration Permits.

(a)-(f)

(No change).

(g)

Agreements with other jurisdictions. In accordance with Transportation Code, §502.054 and Texas Civil Statutes, Article 6675c-2 , the executive director of the department may enter into a written agreement with an authorized officer of a state, province, territory, or possession of a foreign country to provide for the exemption from payment of registration fees by nonresidents if residents of this state are granted reciprocal exemptions. The executive director may enter into such agreement only upon:

(1)

the approval of the governor; and

(2)

making a determination that the economic benefits to the state outweigh all other factors considered.

(h)

Exemptions. A foreign commercial vehicle operating in accordance with Texas Civil Statutes, Article 6675c-2 is exempt from the display of a temporary registration permit if:

(1)

the vehicle is engaged solely in the transportation of cargo across the border into or from a border commercial zone;

(2)

for each load of cargo transported the vehicle remains in this state for:

(A)

not more than 24 hours; or

(B)

not more than 48 hours, if:

(i)

the vehicle is unable to leave this state within 24 hours because of circumstances beyond the control of the motor carrier operating the vehicle; and

(ii)

all financial responsibility requirements applying to this vehicle are satisfied;

(C)

the vehicle is registered and licensed as requested by the law of another state or country as evidenced by a valid metal license plate attached to the front or rear exterior of the vehicle; and

(D)

the country in which the person who owns or controls the vehicle is domiciled or is a citizen, provides a reciprocal exemption for commercial motor vehicles owned or controlled by residents of Texas.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801427

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


43 TAC §17.24

The Texas Department of Transportation proposes amendments to §17.24, concerning disabled person license plates and placards.

House Bills 580 and 685, 75th Legislature, 1997, amended Transportation Code, §502.024 and §681.002. House Bill 580 amends the requirements to obtain disabled person identification placards and also requires a hologram to be on each disabled person identification placard. House Bill 685 allows for an applicant to obtain more than one set of disabled person license plates for a motorcycle, passenger car, or light truck that is equipped with special equipment that will allow a person who has lost the use of one or both legs to operate the vehicle.

The amendments to §17.24 revise citations to reflect recodification into the Transportation Code, and require that windshield identification placards must contain a hologram and applicant's driver's license number or the number of a personal identification card issued to the applicant under Chapter 521. The amendments allow an applicant who is a non-resident serving in the United States Military on a military institution in Texas to use a current out-of-state driver's license for the application. In order to receive a disabled plate or insignia, the application must be: signed in the presence of a notary by a physician either licensed to practice medicine in this state or licensed by the United States Military if the physician practices medicine on a military installation in this state; or in the form of a written prescription. Both statements must include a certification as to whether the disability is temporary or permanent and the disabled person's name.

The amendments delete the acceptance of documentation from the Texas Rehabilitation Commission, the Texas Commission for the Blind, and Texas Handicap Association, and by sworn written statement. Additional sets of license plates may be issued for each vehicle that is specially equipped to allow operation by an operator who has lost the use of one or both legs.

The amendments: revise the expiration period from five years to four years; require that in order to renew a placard, the applicant must show an expired placard, or a receipt showing that a disabled person placard was previously issued; and delete the requirement that disabled plates must be renewed in the county in which the owner resides. The section requires the owner to present the current year's license receipt instead of the previous year's in order to replace a disabled person license plate, and provides if the county cannot verify that the disabled person license plates were issued to the owner, the owner must refile an initial application.

It clarifies that a disabled person is not exempt from payment of penalties and fees if the vehicle is parked within a municipal airport. The section allows a person from whom a placard was seized by a law enforcement officer under Transportation Code, §681.011 to request a hearing in accordance with §§1.21-1.61 of this title (relating to Contested Case Procedure) to determine if the revocation should continue or if the placard should be returned and the revocation rescinded.

Frank J. Smith, Director, Budget and Finance Division, has determined that for the first five years the amended section is in effect, there will be fiscal implications to the state as a result of enforcing or administering this section. The estimated increase in cost to the state is $23,294 per year for fiscal years 1998 - 2002. There will be no fiscal implication to local government as a result of enforcing or administering this section. There will be economic costs to individuals who are required to comply with the requirements of the amendments if they seek a hearing for revocation of a disabled plate or placard. The cost of a revocation hearing cannot be determined because it depends on the circumstances of the revocation, the location of the revocation, and the length of the hearing.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments.

Mr. Dike has also determined that for each year of the first five years the amended section is in effect the public benefits anticipated as a result of administering the section will be better enforcement and issuance procedures of disabled person plates and placards. There will be no effect on small businesses.

Written comments on the proposed amendments may be submitted to Mr. Jerry Dike, Director of Vehicle Titles and Registration Division, Texas Department of Transportation, Dewitt C. Greer Building, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of written comments will be 5 p.m. on March 16, 1998.

The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Transportation Code, Sections §502.253 and §681.002 which provide the department with the authority to issue disabled persons identification placards and license plates.

The amendments do not affect other statutes, articles, or codes.

§17.24. Disabled Person License Plates and Identification Placards.

(a)

Purpose. Transportation Code, Chapters 502 and 681 , [ Texas Civil Statutes, Article 6675a-5e.1 ], charges the department with the responsibility for issuing specially-designed license plates and identification placards for permanently and temporarily disabled persons. In order for the department to efficiently and effectively perform these duties, this section prescribes the policies and procedures for the application, issuance, and renewal of disabled person license plates and placards.

(b)

Issuance.

(1)

Disabled person license plates.

(A)

Vehicle. The department will issue specially designed license plates to permanently disabled persons or their transporters in lieu of regular passenger license plates, if the passenger vehicle, motorcycle, or light commercial vehicle:

(i)

has a manufacturer's rated carrying capacity of one ton or less;

(ii)

is used for non-commercial purposes; and

(iii)

is regularly operated by, or for the transportation of permanently disabled persons.

(B)

Identifying insignia. Disabled person license plates will include the international symbol of access. The department will issue disabled person insignia on those special category license plates that can accommodate the identifying insignia, and which are issued in accordance with §17.28 of this title (relating to Special Category License Plates, Symbols and Tabs).

(C)

License plate number. Disabled person license plates will bear a license plate number assigned by the department, or a personalized license plate number issued in accordance with §17.28 of this title (relating to Special Category License Plates, Symbols and Tabs).

(2)

Windshield identification placards. The department will issue removable windshield identification placards to temporarily or permanently disabled persons, and the transporters of permanently disabled persons.

(A)

Location. A person who has been issued a windshield identification placard shall suspend the placard from a vehicle's rearview mirror when the vehicle is parked in a disabled person parking space, or display the placard on the center portion of the dashboard if such vehicle does not have a rearview mirror.

(B)

Identifying insignia. Windshield identification placards will include the following information:

(i)

the international symbol of access;

(ii)

an identification number;

(iii)

the seal or other identification of the department; [ and ]

(iv)

date of expiration ;

(v)

the applicant's driver's license number or the number of a personal identification card issued to the applicant under Transportation Code, Chapter 521; and

(vi)

a hologram designed by the department.

(c)

Initial application.

(1)

Place of application. The following persons may file an application for disabled person license plates or identification placards with the county tax assessor-collector in the county in which the applicant resides:

(A)

the owner of a registered vehicle that is regularly operated by or for the transportation of a disabled person; and

(B)

a disabled person who is not a vehicle owner.

(2)

Application form. Such application must be made on a form prescribed by the director and shall, at a minimum, require the name, address, and signature of the disabled person, and:

(A)

the applicant's driver's license number or the number of a personal identification card issued to the applicant under Chapter 521; or

(B)

an out-of-state current driver's license issued to a non-resident individual serving in the United States military at a military installation in this state [ excepting those organizations described in paragraph (4) of this subsection ].

(3)

Accompanying documentation.

(A)

Unless otherwise exempted by law or this section, an initial application for disabled person license plates and an identification placard must be accompanied by evidence that the operator or regularly transported person is disabled.

(B)

Such evidence of disability must:

(i)

contain a certification as to whether the disability is temporary or permanent and the disabled person's name; and

(ii)

be signed by a physician who is licensed to practice medicine in Texas or by the United States Military and practicing medicine on a military installation in Texas.

(C)

The evidence must be in the form of: [ includes, but is not limited to: ]

(i)

[ (A) ] a disability statement, as it appears on the application for disabled person license plates or identification placards, which has been correctly completed and signed in the presence of a notary; or

(ii)

a written prescription. [ or by a licensed optometrist if the applicant is legally blind; ]

[ (B)

certification from the Texas Rehabilitation Commission or the Texas Commission for the Blind on the letterhead of the agency; ]

[ (C)

certification from the Texas Handicap Association for its members; or ]

[ (D)

a sworn affidavit executed by an amputee of a limb, hand, or foot, or a disabled person confined to a wheelchair, and the county tax assessor-collector, or his or her designee, attesting to the applicant's disability. ]

(4)

Additional requirements. Applications for disabled person license plates and identification placards shall be accompanied by any fees or additional documentation as required by law.

(5)

Exemptions from accompanying documentation. The department will issue disabled person identification placards to an organization that regularly transports disabled persons in vehicles it owns or controls if such organization is prohibited by law from disclosing the identities of their clients. In such cases, the application may be made in the name of the organization. In addition, accompanying documentation described in paragraph (2) of this subsection will not be required. Such organizations shall present an "Exempt" Texas Vehicle Registration Receipt issued in accordance with §17.30 of this title (relating to Motor Vehicle Registration) for each disabled person identification placard requested.

(6)

Limitations.

(A)

The department may issue the following number of disabled license plates and placards to applicants who are permanently disabled:

(i)

one set of disabled person license plates and one permanently disabled person identification placard; [ or ]

(ii)

no more than two permanently disabled person identification placards ; or

(iii)

additional sets of license plates for each vehicle that is specially equipped to allow operation by an operator who has lost the use of one or both legs.

(B)

The department will issue no more than two temporarily disabled person identification placards to those with temporary disabilities. Disabled person license plates are not available to those with temporary disabilities.

(d)

Renewal.

(1)

License plates. Disabled person license plates are valid for a period of 12 months from the date of issuance, and are renewable as specified in §17.30(d) of this title (relating to Motor Vehicle Registration).

(2)

Identification placards. Permanently disabled person identification placards are valid for a period of four [ five ] years from the month of issuance.

(A)

Place of renewal application. The applicant shall apply to the tax assessor-collector of the county in which the owner resides for disabled person identification placard renewal, prior to the expiration of the identification placard.

(B)

Accompanying documentation. In order to renew a permanently disabled person identification placard, an applicant shall present a copy of the previous identification placard application , expired placard, or a receipt showing that a disabled person placard was previously issued to the applicant. If [ or, if ] such previous application , placard, or receipt is not available, the applicant shall reapply as described in subsection (c) of this section.

(3)

Temporarily disabled person identification placards. Temporarily disabled person identification placards are valid for six months from the month of issuance or until the termination of the applicant's disability, whichever occurs first.

(A)

Termination of disability. If a person's disability ends prior to the expiration of the identification placard, the placard shall be destroyed.

(B)

Renewal. If a person's temporary disability extends for more than the six-month period for which the placard was issued, such person must reapply for a new identification placard as described in subsection (c) of this section.

(e)

Replacement.

(1)

License plates. If disabled person license plates are lost, stolen, or mutilated, the owner may obtain replacement license plates by applying with the county tax assessor-collector [ of the county in which the owner resides ].

(A)

Accompanying documentation. In order to replace permanently disabled person license plates, the owner shall present the current [ previous ] year's registration receipt and personal identification acceptable to the tax assessor-collector.

(B)

Absence of accompanying documentation. If the current [ previous ] year's registration receipt is not available and the county cannot verify that the disabled person license plates were issued to the owner , then the owner shall reapply in accordance with subsection (c) of this section.

(2)

Disabled person identification placards. If a disabled person identification placard becomes lost, stolen, or mutilated, the owner may obtain a new identification placard in accordance with subsection (c) of this section.

(f)

Transfer of disabled person license plates and identification placards.

(1)

License plates.

(A)

Transfer between persons. Disabled person license plates are non-transferable between persons. An owner who sells or trades a vehicle to which disabled person license plates have been issued shall remove the disabled person license plates from the vehicle. The owner shall return the license plates to the department, and obtain appropriate replacement license plates to place upon the vehicle prior to any transfer of ownership.

(B)

Transfer between vehicles. Disabled person license plates are non-transferable between vehicles.

(2)

Identification placards.

(A)

Transfer between vehicles. Disabled person identification placards may be displayed in any vehicle in which the disabled person drives or is a passenger [ are transferable to any vehicle in where the qualifying disabled person is either a driver or a passenger ].

(B)

Transfer between persons. Disabled person identification placards are non-transferable between persons.

(g)

Refueling and parking privileges.

(1)

Refueling services. In accordance with Texas Civil Statutes, Article 8613 the department will provide a notice to an owner of a vehicle displaying disabled person license plates or an identification placard setting forth the provisions of the Refueling Services to Disabled Person Act which requires a facility that offers motor vehicle fuel for sale to the public to limit the charge to a disabled driver to the self-service price.

(2)

Parking privileges. The operator of a vehicle displaying disabled person license plates or an identification placard is granted the following parking privileges under Transportation Code, §681.006 [ Texas Civil Statutes, Article 6675a-5e.1 ].

(A)

Any vehicle upon which disabled person license plates or a disabled person placard is displayed, when being operated by or for the transportation of a disabled person, shall be allowed to park for unlimited periods in any parking space or parking area designated specifically for the physically handicapped.

(B)

The owner of a vehicle on which disabled person license plates or a disabled person identification placard is displayed is exempt from the payment of fees or penalties imposed by a governmental authority for parking at a meter or in a space with a limitation on the length of time for parking, unless the vehicle is parked at a place or time that parking is prohibited, or unless the vehicle was not parking at the time by or for the transportation of a disabled person . This [ ; this ] exemption does not apply to fees or penalties imposed by a :

(i)

branch of the United States government ; or

(ii)

governmental unit for parking within the boundaries of a municipal airport.

(h)

Seizure and revocation of placard. A person from whom a placard was seized by a law enforcement officer under Transportation Code, §681.011 may request a hearing in accordance with §§1.21-1.61 of this title (relating to Contested Case Procedure) to determine if the revocation should continue or if the placard should be returned to the person and the revocation rescinded.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801428

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


43 TAC §17.50

The Texas Department of Transportation proposes amendments to §17.50, concerning exempt and alias vehicle registration.

Senate Bill 557, 75th Legislature, 1997, amended Transportation Code, §502.201 to require the department to provide by rule for the issuance of specially designated license plates for vehicles that are exempt from registration fees. Senate Bill 557, also amended Transportation Code, §502.2015 to provide that when an exempt agency applies for exempt license plates, the agency's name may appear in an emblem that is at least 100 square inches in size instead of 2 inches in height on the vehicle, and in a color different from the body of the vehicle so that it is clearly legible from a distance of 100 feet. Senate Bill 557 requires that an agency provide a copy of the commissioner court order or municipal ordinance exempting county or city vehicles from the inscription requirements under Transportation Code, §721.003 and §721.005 in order to receive exempt license plates without the word "exempt."

Section 17.50 is amended to allow an exempt agency's identification to appear by an emblem, providing the emblem is 100 inches square and easily seen from a distance of 100 feet, and require that agencies applying for exempt license plates for vehicles without the inscription must provide a copy of the order or ordinance as provided by Transportation Code, §721.003 and §721.005.

Frank J. Smith, Director, Budget and Finance, has determined that for the first five years the amended section is in effect, there will be no fiscal implications for the state or local government as a result of enforcing or administering the section. There will be no economic costs to individuals who are required to comply with the requirements of the section.

Jerry L. Dike, Director, Vehicle Titles and Registration Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed amendments.

Mr. Dike has determined that for each year of the first five years the amended section is in effect the public benefits anticipated as a result of administering the section will be allowing an exempt agency's the option of using an agency emblem on the exempt vehicle instead of the name of the agency, and ensuring exempt license plates are issued to qualified vehicles by requiring a copy of the order or ordinance for those vehicles issued in accordance with Transportation Code, §721.005. There will be no effect on small businessess.

Written comments on the proposed amendments may be submitted to Mr. Jerry L. Dike, Director, Vehicle Titles and Registration Division, Texas Department of Transportation, Dewitt C. Greer Building, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of written comments will be 5:00 p.m. on March 16, 1998.

The amendments are proposed under Transportation Code, §201.101 which provides the Texas Department of Transportation the authority to establish rules for the issuance of exempt vehicle registration; and more specifically Transportation Code, §502.201 which requires insignia or lettering on an exempt agency vehicles which receive plates with the word "exempt," and Transportation Code, §502.2015 which allows the issuance of plates without the word "exempt" if the requirements of Transportation Code §721.003 and §721.005 are met.

The amendments do not affect other statutes, articles, or codes.

§17.50. Exempt and Alias Vehicle Registration.

(a)

Exempt plate registration.

(1)

Issuance. Pursuant to Transportation Code, §502.202, a vehicle owned by and used exclusively in the service of a governmental agency, used exclusively for public school transportation services, used for fire fighting or by a volunteer fire department, or used in volunteer county marine law enforcement is exempt from payment of a registration fee, and the department will issue exempt plates to those vehicles

(2)

Application for exempt registration.

(A)

Application. The application for exempt plates shall be made on a form prescribed by the department, and shall contain the following information:

(i)

vehicle description;

(ii)

name of the exempt agency;

(iii)

an affidavit executed by an authorized person stating that the vehicle is owned or under the control of and will be operated by the exempt agency; and

(iv)

a certification that each vehicle listed on the application has the name of the exempt agency printed on each side of the vehicle in letters that are at least two inches high or in an emblem that is at least 100 square inches in size , and of a color sufficiently different from the body of the vehicle as to be clearly legible from a distance of 100 feet.

(B)

Emergency Medical Service Vehicle.

(i)

Exempt registration may be issued for a vehicle which is owned or leased by a non-profit emergency medical service provider; a municipality, county, or combination of both; or a non-profit emergency medical service provider chief or supervisor in accordance with Transportation Code §502.204.

(ii)

The application for exempt registration must contain the vehicle description, the name of the emergency medical service provider, and a statement signed by an officer of the emergency medical service provider stating that the vehicle is used exclusively as an emergency response vehicle and qualifies for registration under Transportation Code, §502.204.

(iii)

A copy of an emergency medical service provider license issued by the Texas Board of Health must accompany the application.

(C)

Fire fighting vehicle. The application for exempt registration of a fire fighting vehicle owned privately or by a volunteer fire department must contain the vehicle description. The affidavit must be executed by the person who has the proper authority, and shall state either that the vehicle is privately owned and is designed and used exclusively for fire fighting, or that the vehicle is owned by a volunteer fire department and is used exclusively in the conduct of business of such department.

(D)

Disabled insignia. The application for disabled person registration insignia for a vehicle used by an exempt agency to regularly transport disabled persons may be used to obtain a specially designed disabled person placard in accordance with §17.24 of this title, (relating to Disabled Person License Plates and Identification Placards).

(3)

Exception. If the applicant is a law enforcement agency or is exempt from the inscription requirements under Transportation Code, §721.003 and §721.005, and the vehicle is not registered under subsection (b) of this section, then the vehicle may display license plates which are not marked with the word "exempt," and the applicant must present a certification that each vehicle listed on the application will be dedicated to law enforcement activities or that the applicant is exempt from inscription requirements under Transportation Code, §721.003 and §721.005. If a vehicle is exempt from inscription requirements under Transportation Code, §721.005, then the applicant must provide a copy of the order or ordinance which exempts the vehicle.

(b)

Affidavit for issuance of exempt registration under an alias.

(1)

Upon receipt of an affidavit for alias exempt registration, properly executed by the executive administrator of an exempt agency that is a law enforcement agency, alias exempt registration will be issued annually by the department for a vehicle used in covert criminal investigations.

(2)

The affidavit for exempt registration issued under an alias for use on law enforcement vehicles shall be in a form prescribed by the director and must include the vehicle description, a sworn statement that the vehicle will be used in covert criminal investigations, and the signature of either the executive administrator or his or her designee as provided in paragraph (3) of this subsection. The vehicle registration insignia of any vehicles no longer used in covert criminal investigations will be surrendered immediately to the department.

(3)

The executive administrator, by annually filing an authorization with the director, may appoint a staff designee to execute the affidavit. Upon the appointment of a new executive administrator or his or her designee, a new authorization must be filed.

(4)

The letter of authorization must contain a sworn statement delegating the authority to sign the affidavit to a designee, the name of the designee, and the name and the signature of the executive administrator. The jurat must be signed by a notary public.

(5)

The affidavit for alias exempt registration must be accompanied by a certificate of title application as cited in §17.7 of this title (relating to Alias Certificate of Title) which identifies the information required by the department to create the alias record of vehicle registration and title.

(c)

Replacement of exempt registration.

(1)

If exempt registration becomes lost, stolen, or mutilated, a properly executed replacement affidavit for exempt license plates must be submitted to the department.

(2)

The application for replacement license plates must contain the vehicle description, original license number, and the sworn statement that the license plates furnished for the vehicle described have been lost, stolen, or mutilated, and will not be used on any other vehicle.

(3)

Any remaining plate or plates must be removed and surrendered to the department upon issuance of the replacements.

(d)

Title requirements. Prior to or simultaneously with the issuance of exempt registration, the vehicle must be titled, unless otherwise exempted by law.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801429

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


Chapter 18. Motor Carriers

The Texas Department of Transportation proposes amendments to §§18.2, 18.80, 18.82, 18.84, 18.88, 18.89, 18.91-18.93, the repeal of §18.94 and new §§18.94-18.96, concerning vehicle storage facilities.

The amendments, repeal and new sections are necessary to implement the provisions of House Bill 1025, House Bill 2202, Senate Bill 370, §6.01, and Senate Bill 855, 75th Legislature, 1997, and to ensure the proper administration of laws concerning vehicle storage facility licensing.

House Bill 1025 amended Texas Civil Statutes, Article 6687-9a to provide a definition of "impoundment" which includes preservation, conducting an inventory, storing all unsecured personal property, and obtaining motor vehicle registration information. The term "preservation" is deleted.

House Bill 2202 amended Texas Civil Statutes, Article 6687-9a to: provide technical cleanup language to the Vehicle Storage Facility Act; amend definitions; and provide the department with the ability to deny, revoke, or suspend a vehicle storage facility license, and assess administrative penalties not to exceed $10,000 per violation.

Senate Bill 370, §6.01, amended Texas Civil Statutes, Article 6687-9a to provide a procedure for sending renewal notices to vehicle storage facility licensees.

Senate Bill 855, 75th Legislature, 1997, amended Texas Civil Statutes, Article 6687-9a to provide for the disposal of abandoned vehicles in vehicle storage facilities.

The amendments replace references to Texas Civil Statutes with the recodified citations to the Transportation Code. The amendments also replace references to "VSF" with "vehicle storage facility" and deletes references to "motor vehicle storage facilities.

Section 18.2 is amended to define terms relevant to the motor carrier chapter.

Section 18.80 is amended by moving references to other vehicle storage facility laws from §18.91(f) to this section.

Section 18.82 is amended by adding and clarifying terms relevant to the vehicle storage facility subchapter.

Section 18.84 is amended to provide that the department will mail a license renewal notice to the licensee's last known address according to the records of the department and eliminate charges for a duplicate vehicle storage facility license. It also provides that the department will not issue a license if an applicant knowingly supplies false or incomplete information on the application, if in the three years preceding the date of the application, one of the principals in the business has been convicted of a felony or misdemeanor for which the maximum punishment is confinement in jail or a fine exceeding $500, or if the vehicle storage facility does not meet the standards for vehicle storage facilities. This section requires a corporation to include a copy of its amendment to its articles of incorporation when submitting a supplemental application for registration to change licensee name or address.

Sections 18.89 and 18.92 are amended by replacing the term "administrative and preservation impoundment" with "notification and impoundment."

Amended §18.89 clarifies that letters on a notification sign regarding complaints must be one inch in height, and a contrasting background.

Amended §18.91 authorizes a vehicle storage facility to combine the required signs, provided that any combination of signs meets the respective requirements of each individual sign.

Section 18.93 is amended to provide that a vehicle storage facility operator shall not charge for more than five days of storage fees until a notice is mailed or published. The operator shall charge a daily storage fee after notice. This section prohibits a vehicle storage facility operator from charging an administrative fee.

Existing §18.94 is repealed and replaced with new §18.94 to provide a definition for the term "director," specify the types of sanctions the department may assess, including probation of a licensee whose license has been suspended and/or monetary penalties, and establish a procedure for investigation of and notice to the person charged with a violation. This section provides criteria to be used to determine which sanctions to impose, a procedure for response to the charge, and an opportunity for an administrative hearing. The section requires that the administrative law judge's proposal for decision be submitted to the director, who will determine whether a violation has occurred, and if, so impose the recommended penalty or other sanction; increase or decrease the amount of the recommended penalty or impose other sanctions. It provides for payment of penalty and appeal to a court with jurisdiction; provides that the department and the person charged may enter into a compromise settlement agreement; and authorizes the department to seek injunctive relief and civil penalties if it appears that a person is in violation of, or is threatening to violate, the Act, this subchapter, or an order of the department.

New §18.95 provides circumstances under which the department may revoke, suspend, or deny a license, or place a person on probation whose license has been suspended, in cases of conviction for certain criminal activities or probation violations. This section establishes criteria the department will consider regarding sanctions, and provides a procedure for notification of licensees/applicants of any revocation, suspension, denial, or probation. It establishes policies and procedures regarding suspension and revocation of a vehicle storage facility license for failure to provide proof of insurance, and provides that the department will suspend the license of a vehicle storage facility operator upon receipt of a final order suspending license issued under Family Code §232.008. This section provides that the department may require a licensee to report regularly to the department on any matter that is the basis of probation.

New §18.96 provides that no vehicle may be disposed of under Texas Civil Statutes, Article 6687-9a, unless the vehicle storage facility operator has complied with all provisions of the Act, and a vehicle storage facility operator shall notify the vehicle owner and all recorded lienholders of the proposed disposal of the vehicle in accordance with Texas Civil Statutes, Article 6687-9a, §13(d). This section specifies the types of records a vehicle storage facility operator shall keep under its care and custody; explains how a vehicle storage facility operator may dispose of a vehicle through public sale; and clarifies how disputes over the sale, or dispersal of proceeds from the sale, of a vehicle are to be pursued.

Frank Smith, Director, Budget and Finance Division, has determined that for the first five-year period the sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. There will be no economic costs to individuals who are required to comply with the sections as proposed.

Lawrance R. Smith, Director, Motor Carrier Division, has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the proposed sections.

Mr. Lawrance Smith has determined that for each year of the first five years the proposed sections are in effect, the public benefits anticipated as a result of enforcing the sections will be increased protection for vehicle storage facility customers. There will be no effect on small businesses.

Written comments on the proposal may be submitted to Lawrence R. Smith, Director, Motor Carrier Division, Texas Department of Transportation, 125 E. 11th St., Austin, Texas 78701-2483. The deadline for receipt of comments will be 5:00 p.m. on March 16, 1998.

Subchapter A. General Provisions

43 TAC §18.2

The amended sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 643 which authorizes the department to carry out the provisions of those laws governing the registration of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize the department to carry out the provisions of those laws governing the licensing of vehicle storage facilities.

No statutes, articles, or codes are affected by these proposed amendments.

§18.2. Definitions.

The following words and terms, when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.

Tow truck

- A motor vehicle equipped with, or used in combination with, a mechanical device [ , mini-trailer, or auto-trailer, and which is adapted or ] used to tow, winch, or otherwise move another vehicle. For the purposes of this chapter, the following motor vehicles are not considered tow trucks:

(A)

a motor vehicle owned and used exclusively by a governmental entity, including a public school district;

(B)

a motor vehicle towing:

(i)

a race car;

(ii)

a motor vehicle for exhibition; or

(iii)

an antique motor vehicle;

(C)

a recreational vehicle towing another vehicle;

(D)

a motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device that is not operated in the furtherance of a commercial enterprise; or

(E)

a motor vehicle, controlled and/or operated by a farmer or rancher, towing a farm vehicle.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801430

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


Subchapter G. Vehicle Storage Facilities

43 TAC 18.80, 18.82, 18.84, 18.88, 18.89, 18.91-18.93

The amended sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 643 which authorizes the department to carry out the provisions of those laws governing the registration of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize the department to carry out the provisions of those laws governing the licensing of vehicle storage facilities.

No statutes, articles, or codes are affected by these proposed amendments.

§18.80. Purpose and Scope.

Texas Civil Statutes, Article 6687-9a (Vehicle Storage Facility Act), provide that a person may not operate a vehicle storage facility unless the person holds a current license to operate a vehicle storage facility issued by the Texas Department of Transportation. In order to protect all parties from unfair, unreasonable and deceptive practices, this subchapter sets forth the department's commitment to provide procedures and policies under which vehicle storage facility operators and their customers may transact business. The sections under this subchapter describe the procedures by which a person may obtain a license to operate a vehicle storage facility, conditions under which a licensee must operate the facility, and the procedures by which the department will enforce this subchapter. Other laws which may affect the operations of a vehicle storage facility are Transportation Code, Chapters 643 and 683, Property Code, §70.003, §70.004, and §70.006, and the regulations or ordinances of any political subdivision of this State.

§18.82. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

Person

- An individual, corporation, organization, business trust, estate, trust, partnership, association, or other legal entity.

Impoundment [ Preservation ]

- Actions performed on a stored vehicle which consist of the following minimum requirements:

(A)

using of materials such as plastic or canvas tarpaulins to ensure the preservation of a stored vehicle if doors, windows, convertible tops, hatchbacks, sun roofs, 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 contained in a stored vehicle for which safekeeping is necessary; and

(D)

obtaining motor vehicle registration information for a specific vehicle from the department's Vehicle Titles and Registration Division, statutory agents or service providers.

Vehicle

- A motor vehicle subject to registration under Transportation Code, Chapter 501 [ the Certificate of Title Act, Texas Civil Statutes, Article 6687-1 ], or any other device designed to be self-propelled or transported on a public highway [ and which is towed or transported to a vehicle storage facility without the owner's consent ].

§18.84. Issuance and Renewal of License.

(a)

Issuance. The department will issue a vehicle storage facility [ VSF ] license to an applicant meeting the requirements of §18.83 of this title (relating to Application for Original Vehicle Storage Facility License) , unless the department determines that:

(1)

the applicant knowingly supplied false or incomplete information on the application;

(2)

in the three years preceding the date of the application, the applicant, one of the applicant's partners, a principal or general manager of the applicant, or one of the applicant's officers has been convicted of a felony or misdemeanor for which the maximum punishment is confinement in jail or a fine exceeding $500; or

(3)

the vehicle storage facility for which the license is sought does not meet the standards established by this subchapter for vehicle storage facilities.

(b)

Transferability/assignability. Vehicle storage facility [ VSF ] licenses are non-transferable and non-assignable from a licensee to another person or entity.

(c)

Licensee change of name or address. Prior to the effective date of any change in a licensee's name or address from the name or address appearing on the original vehicle storage facility license application, the licensee shall file a supplemental application with the department. A licensee that is a corporation shall include a copy of the amendment to its articles of incorporation approved by the Texas Secretary of State along with its supplemental application for registration. A licensee incorporated outside the State of Texas shall include a copy of its amendments to its articles of incorporation approved by the corresponding chartering authority.

(d)

Expiration. Vehicle storage facility [ VSF ] licenses are valid for 12 months and expire annually on the issuance anniversary date. A licensee may renew its vehicle storage facility license in accordance with subsection (e) of this section and retain its original license number.

[ (e)

Duplicate vehicle storage facility licenses. Application for a duplicate VSF license shall be made with the department. A $25 fee will be charged for issuing a duplicate license. This fee is non-refundable, and may be paid in accordance with §18.85 of this title (relating to Payment of Fees). The expiration date of a duplicate VSF license shall be the same as the original license. ]

(e)

[ (f) ] Renewal of vehicle storage facility license. Licensees must apply annually, prior to license expiration, to renew the vehicle storage facility [ VSF ] operators license.

(1)

Renewal notices. The department will mail a license renewal notice to the licensee's last known address, according to the records of the department, indicating the month and year the license expires to each licensee approximately 45 days prior to license expiration. Failure to receive the notice does not relieve the licensee of the responsibility to renew the vehicle storage facility [ VSF ] license.

(2)

Renewal application and fee. An application for vehicle storage facility [ VSF ] license renewal must be returned by the licensee to the Motor Carrier Division and shall be accompanied by the annual renewal fee of $75. The renewal fee is non-refundable and is payable as described in §18.85 of this title (relating to Payment of Fees). In order to avoid expiration, a renewal application and fee must be received by the Motor Carrier Division prior to the expiration date.

(3)

Expired vehicle storage facility license. An individual, partnership, or corporation whose vehicle storage facility [ VSF ] is still in business and whose license is not renewed must apply for a new license in accordance with §18.84 of this title (relating to License Issuance and Renewal). To avoid the loss of the original license number, an application must be received by the Motor Carrier Division within 90 days after license expiration. The application shall be accompanied by a fee of $100.

§18.88. Documentation and Records.

(a)

Retention of written documentation. Vehicle storage facility licensees must maintain written documentation regarding their operations for a period of two years from the date such operations occurred. Written documentation shall be in the form of:

(1)

motor vehicle registration checks;

(2)

notification letters;

(3)

certified return receipts;

(4)

tow tickets or wrecker slips (if applicable);

(5)

bills for service;

(6)

auction receipts;

(7)

inventory (if applicable);

(8)

certificates of authority to demolish; and

(9)

any authorized document used to release a vehicle (title, affidavit of right of possession and control, court order, etc.).

(b)

Combination documents. Provided that the document contains the minimum information described in subsection (c) of this section, a licensee may consolidate the information required into a single document in order to meet record retention requirements of subsection (a) of this section. Combination documents may consist of:

(1)

bills for service;

(2)

inventory records;

(3)

tow tickets; or

(4)

wrecker slips (if applicable).

(c)

Minimum information. Each licensee shall keep written records on each vehicle kept or stored at the vehicle storage facility [ 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 who authorized the tow;

(3)

the name of the tow truck driver, 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 §502.281;

(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 it was transferred along with the name of the towing company and tow truck driver who made the transfer;

(6)

a copy of any certificate of title issued after the vehicle came into the possession of the vehicle storage facility [ VSF ], any certificate of authority to demolish, any police 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 vehicle storage facility [ 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.

(d)

Availability of documentation. All required documentation 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 certified law enforcement officer within the officer's jurisdiction, during the same hours the vehicle storage facility [ VSF ] must ensure that vehicles are available for release to the vehicle owner.

(e)

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 received.

§18.89. Notice of Complaint Procedure.

Each vehicle storage facility [ VSF ] shall notify consumers and service recipients of the name, mailing address, and telephone number of the department for purposes of directing complaints regarding vehicle storage to the department. The licensee may use a legible sticker or rubber stamp to convey the required information. The notification 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 [ specifications in accordance with §18.91 (d) of this title (relating to Facility Requirements) ]; and

(2)

any bill for service.

§18.91. Facility Requirements.

(a)

Enclosure and security of stored vehicles.

(1)

Fencing. If not enclosed by a five foot high fence on or before September 1, 1985, all vehicle storage facilities 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 vehicle storage facilities may operate within the same fenced area.

(2)

Security of vehicles.

(A)

No vehicle may be stored or kept at any licensed vehicle storage facility [ VSF ] unless it is kept inside the fenced or enclosed area at all times. For purposes of this subsection, the term "enclosed" shall mean inside a building.

(B)

A vehicle accepted for storage in a vehicle storage facility 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.

(b)

Surface. All [ motor ] vehicle storage facilities 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.

(c)

Illumination. All [ motor ] vehicle storage facilities 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.

(d)

Signs.

(1)

Facility information. All [ motor ] vehicle storage facilities 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, shall be visible at 10 feet, and shall contain the following information:

(A)

the registered name of the storage lot, as it appears on the vehicle storage facility [ VSF ] license;

(B)

street address;

(C)

the telephone number for the owner to contact in order to obtain release of the vehicle;

(D)

the facility's hours, within one hour of which vehicles will be released to vehicle owners; and

(E)

the storage lot's state license number preceded by the phrase "VSF License Number."

(2)

Per diem charges. All [ motor ] vehicle storage facilities shall have a sign setting out the per diem charge for storage and all other fees which may be charged by the storage lot, including notification and impoundment [ administrative and preservation/pound ] fees. This sign shall be located so it is clearly visible to a vehicle owner prior to paying the fees, shall have letters at least 1 inch in height, with a contrasting background.

(3)

Instruments accepted for release of vehicle. All [ motor ] vehicle storage facilities shall have a sign describing the instruments which 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 §18.92(a)(2) of this title (relating to Technical Requirements), and shall also state: "Affidavit of Right of Possession and Control Furnished Upon Request." This sign shall be located so it is clearly visible to a vehicle owner at the place of payment, have letters at least 1 inch in height with a contrasting background.

(4)

Combination signs. A vehicle storage facility may combine the signs described in §18.89(1) of this title (relating to Facility Requirements) and paragraphs (2) and (3) of this subsection, provided that the combination sign meets the requirements of each of the separate signs.

(e)

Unregistered tow trucks. No vehicle storage facility [ VSF ] shall permit any tow truck which is not registered under Transportation Code, Chapter 643 [ Texas Civil Statutes, Article 6675c ], to enter onto the grounds of the facility.

[ (f)

Other laws, statutes, rules and regulations affecting VSF operations. Some other laws which may affect the operation of a VSF include:

[ (1)

Transportation Code, Chapter 683;

[ (2)

Texas Civil Statutes, Article 6675c;

[ (3)

Property Code, §70.003, §70.004, and §70.006; and

[ (4)

any political subdivision's ordinances or regulations. ]

§18.92. Technical Requirements.

(a)

Release of vehicles. The licensee shall comply with the following requirements when releasing vehicles.

(1)

The licensee shall comply with all provisions of Texas Transportation Code, Chapter 685, and Texas Civil Statutes, Article 6701g-3, relating to the rights of the owner of a stored vehicle, including providing the name, address, and telephone number of the justice of the peace or magistrate from whose jurisdiction the vehicle was removed.

(2)

The licensee shall allow the vehicle owner or his/her authorized representative to obtain possession of the vehicle at any time between the hours listed on the facility information sign posted as described in §18.91(d)(1) of this title (relating to Facility Requirements), upon payment of all fees due, presentation of valid identification (Texas drivers license or other state or federally issued photo identification), and upon presentation of:

(A)

a notarized power-of-attorney;

(B)

a court order;

(C)

a certificate of title;

(D)

a tax collector's receipt and a vehicle registration renewal card accompanied by a conforming identification;

(E)

notarized proof of loss claim of theft from an insurance company to show a right to possession;

(F)

positive name and address information corresponding to that contained in the files of the department's Vehicle Titles and Registration Division; or

(G)

a department approved Affidavit of Right of Possession and Control, as defined in §18.82 of this title (relating to Definitions), which is to be furnished by the licensee upon request (an Affidavit of Right of Possession and Control is not to be used as a repossession instrument).

(3)

All [ motor ] vehicle storage facilities shall have vehicles available for release 24 hours a day within one hour's notice if it accepts vehicles 24 hours a day.

(4)

If a vehicle storage facility [ 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.

(b)

Notification of insurance information. 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 garage keeper's legal 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 which is on file with the department.

(c)

Publicly listed telephone number. All [ motor ] vehicle storage facilities shall have a publicly listed and operable telephone where the licensee can be contacted. If the telephone number is changed from the number set out in the vehicle storage license application, the licensee 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.

(d)

Inspection of stored vehicles. When the licensee, the licensee's agent, or the licensee's employee accepts a vehicle towed without the vehicle owner's consent, such person shall inspect the vehicle and note as an addition on the wrecker slip or wrecker ticket any differences from the information previously set out thereon, but shall not write over or deface any prior writing on the slip or ticket. If the license plate number or vehicle identification number on the wrecker ticket or wrecker slip are incorrect, the vehicle storage facility [ VSF ] shall note on its records the correct number and notify every previously advised person within 48 hours of noting the correct information.

(e)

Removal of parts; dismantling or demolishing of stored vehicles. Except as stated to the contrary in this section, no parts shall be removed from any vehicle, and no vehicle shall be dismantled or demolished within the storage area of a licensed vehicle storage facility [ VSF ]. Vehicles may be dismantled or demolished only if the storage lot has a certificate of title, certificate of authority to demolish, police auction sales receipt, or transfer document issued by the State of Texas for the vehicle being dismantled or demolished.

(f)

Use of stored vehicles. No stored vehicle may be utilized for personal or business use without the written consent of the vehicle's owner.

(g)

Reasonable storage efforts. A vehicle storage facility [ VSF ] operator shall make reasonable efforts necessary for the storage of a vehicle, such as locking doors, rolling up windows, and closing doors, hatchbacks, sun roofs, trunks, hoods, or convertible tops. Such actions are included in the storage fee as set forth in §18.93 of this title (relating to Storage Fees/Charges).

(h)

Impoundment [ Preservation ] 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 preservation of the stored vehicle. A vehicle storage facility [ VSF ] operator is entitled to charge a fee for impoundment [ preservation ] if, in addition to the requirements set out in this subsection, the vehicle storage facility [ 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; and

(3)

obtains motor vehicle registration information for the vehicle from the department.

(i)

Repair or alteration of stored vehicles. A vehicle accepted for storage may not be repaired, altered, or have parts removed or replaced without the vehicle owner's or his authorized representative's consent.

(j)

Vehicle transfers. When a motor vehicle has been delivered to a vehicle storage facility [ 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 vehicle storage facility [ VSF ] capacity problems, neither the registered vehicle owner nor recorded lienholder(s) may be assessed an additional charge. The vehicle storage facility [ VSF ] must send notice in accordance with §18.87 of this title (relating to Notifications Regarding Towed Vehicles), except that the notice must be sent no less than 72 hours prior to moving the vehicle. If a vehicle is moved from a vehicle storage facility [ VSF ], the licensee shall:

(1)

charge only those fees otherwise permitted by §18.93 of this title (relating to Storage Fees/Charges) 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 vehicle storage facility [ 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.

§18.93. Storage Fees/Charges.

The fees outlined in this section have precedence over any conflicting municipal ordinance or charter provision.

(1)

Notification fee.

(A)

A vehicle storage facility [ VSF ] operator may not charge an owner more than $25 for notification under §18.87 of this title (relating to Notification Regarding Towed Vehicles).

(B)

If a vehicle is removed by the owner within 24 hours after the date the operator receives the vehicle, notification is not required under §18.87 of this title (relating to Notification Regarding Towed Vehicles).

(C)

If a vehicle is removed by the owner before notification is sent, or within 24 hours from the time the operator receives the vehicle, a notification fee may not be charged to the owner by the vehicle storage facility [ VSF ] operator.

(2)

Daily storage fee. A vehicle storage facility [ VSF ] operator may not charge less than $5.00 or more than $15 for each day or part of a day for storage of a vehicle.

(A)

A daily storage fee may be charged for a day regardless of whether the vehicle is stored for 24 hours of the day, except that a daily storage fee may not be charged for more than one day if the vehicle remains at the vehicle storage facility [ VSF ] less than 12 hours. For the purposes of this paragraph, a day is considered to begin and end at midnight.

(B)

A vehicle storage facility operator shall not charge for more than five days of storage fees until a notice, as prescribed in §18.87 of this title, is mailed or published.

(C)

A vehicle storage facility operator shall charge a daily storage fee after notice, as prescribed in §18.87 of this title, is mailed or published for each day or portion of a day the vehicle is in storage until the vehicle is removed and all accrued charges are paid.

(3)

Impoundment [ Preservation ] fee. A vehicle storage facility [ VSF ] operator may charge an owner no more than $10 for impoundment [ preservation ] of a stored motor vehicle, if such impoundment [ preservation ] is performed in accordance with §18.92 (h) [ (g) ] of this title (relating to Technical Requirements). If the vehicle storage facility [ VSF ] operator charges a fee for impoundment [ preservation ], the written bill for services must specify the exact services performed for that fee and the dates such services were performed.

(4)

Additional fees. A vehicle storage facility [ VSF ] operator may not charge any additional fees that are similar to notification or impoundment [ , preservation, or administrative ] fees. A vehicle storage facility operator may not charge an administrative fee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801431

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


43 TAC §18.94

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Transportation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repealed section is proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 643 which authorizes the department to carry out the provisions of those laws governing the registration of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize the department to carry out the provisions of those laws governing the licensing of vehicle storage facilities.

No statutes, articles, or codes are affected by this proposed repeal.

§18.94. Sanctions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801432

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630


43 TAC §§18.94-18.96

The new sections are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, Chapter 643 which authorizes the department to carry out the provisions of those laws governing the registration of motor carriers, and Texas Civil Statutes, Article 6687-9a, which authorize the department to carry out the provisions of those laws governing the licensing of vehicle storage facilities.

No statutes, articles, or codes are affected by these proposed new sections.

§18.94. Sanctions.

(a)

Definition. For purposes of this section, the term "director" shall mean the executive director of the department or the executive director's designee not below the rank of division or special office director.

(b)

Types of sanctions.

(1)

The department may issue sanctions to an applicant for a license, a licensee or a partner of a licensee, a principal in the licensee's business, or an employee of the licensee, with the knowledge of the licensee who violates the Act, this subchapter, (including failure to meet the standards established by this subchapter), or an order of the department. The department may:

(A)

issue a written warning to the licensee specifying the violation;

(B)

deny, revoke, or suspend a license;

(C)

place a licensee on probation if his or her license has been suspended; or

(D)

assess an administrative penalty not to exceed $1,000 for each violation.

(2)

If a person violates §5 of the Act concerning licensure, the department may assess administrative penalties in an amount not to exceed $10,000 per violation, in addition to sanctions imposed under subsection (h) of this section or §17 of the Act concerning penalties and offenses. Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty.

(3)

If a suspension is probated, the department may require the person to make regular reports to the department or its designee on matters that are the basis of the probation or limit practice to the areas licensed by the department under this Act.

(c)

Initiation of proceedings.

(1)

If an authorized investigator of the department determines that a violation has occurred, the investigator shall issue a summary to the manager, stating the facts on which the investigator based his or her conclusion.

(2)

The manager will determine whether sanctions should be imposed based on:

(A)

the seriousness of the violation, including the nature, circumstances, extent, and gravity of any prohibited acts, and the hazard or potential hazard to the health, safety, or economic welfare of the public;

(B)

the economic harm to property or the environment caused by the violation;

(C)

the history of previous violations;

(D)

the amount necessary to deter future violations;

(E)

efforts to correct the violations; and

(F)

any other matter that justice may require.

(d)

Notice. The manager shall give written notice of the violation and the proposed sanction to the person charged. The notice shall include:

(1)

a brief summary of the alleged violations;

(2)

a statement of the proposed sanction and any accompanying conditions; and

(3)

a statement of the right of the person charged to a hearing concerning the violation, the sanction, and the terms of the sanction, or the amount of the penalty.

(e)

Response.

(1)

Not later than the 15th day after the date on which the notice is received, the person charged may accept the manager's proposal, including all accompanying conditions, or make a written request for a hearing.

(2)

The person is considered to have accepted the proposal if he or she has not made a written request for a hearing and the person has received notice that the sanction is:

(A)

a written warning;

(B)

denial, revocation, or suspension of a license; or

(C)

probation.

(f)

Administrative hearing.

(1)

If the person charged fails to respond in a timely manner to the notice and the sanction is a monetary penalty, or if the person requests a hearing, the department will initiate a contested case in accordance with §§1.21-1.61 of this title (relating to Contested Case Procedure). The department will provide written notice of such action to the person.

(2)

A contested case under this subsection will be governed by §§1.21-1.61 of this title (relating to Contested Case Procedure), except that an administrative law judge's proposal for decision shall be submitted to the director. The director may determine, by order, that:

(A)

no violation has occurred; or

(B)

a violation has occurred, and

(i)

impose the penalty or other sanction recommended by the administrative judge;

(ii)

increase or decrease the amount of the penalty recommended by the administrative judge within the limits prescribed by subsection (b) of this section; or

(iii)

impose other sanctions.

(g)

Settlement agreements.

(1)

At any time prior to the date on which a final order is issued by the director under subsection (f)(2) of this section, the department and the person may agree to enter into a compromise settlement agreement. The agreement shall not constitute an admission by the person of any violation. The compromise settlement agreement shall be signed by the person and the director, and will reflect that the person consents to the assessment of a specific administrative penalty and/or other sanction.

(2)

Simultaneously with the filing of a compromise settlement agreement, if the penalty is monetary, then the alleged violator shall remit a cashier's check or money order to the department, payable to the "State Comptroller - Treasury Operations." These funds shall be held in an escrow account until agreement is executed by the alleged violator and the director.

(h)

Injunctive relief and civil penalty.

(1)

If it appears that a person is in violation of, or is threatening to violate the Act, this subchapter, or an order of the department, the attorney general at the department's request may institute an action for injunctive relief to:

(A)

restrain the person from continuing the violation or threatening the violation; and

(B)

for civil penalties not to exceed $1,000 for each violation.

(2)

If the department or the attorney general prevails in an action under this section, the department or the attorney general is entitled to recover reasonable attorney's fees and court costs.

§18.95. Criminal Convictions, Insurance, and Child Support.

(a)

Criminal convictions.

(1)

The department may revoke, suspend, or deny a license issued under the Act, or place a person on probation whose license has been suspended if the department determines that a licensee, a partner of the licensee, a principal in the licensee's business, or an employee of the licensee has been finally convicted of a:

(A)

felony; or

(B)

misdemeanor that directly relates to a duty or responsibility of a vehicle storage facility operator and is punishable by:

(i)

confinement; or

(ii)

a fine exceeding $500.

(2)

The department may also, after hearing, suspend, revoke, or deny a license because of a person's felony probation revocation, parole revocation, or revocation of mandatory supervision.

(3)

In determining whether a criminal conviction directly relates to the operation of a vehicle storage facility, the department shall consider the:

(A)

nature and seriousness of the crime;

(B)

extent to which a license might offer an opportunity to engage in further criminal activity of the same type as that in which the person was previously involved; and

(C)

relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of operating a vehicle storage facility.

(4)

In determining the present fitness of a person who has been convicted of a crime, the department shall also consider:

(A)

the extent and nature of the person's past criminal activity;

(B)

whether or not the person was a minor at the time of the commission of the crime;

(C)

the amount of time that has elapsed since the person's last criminal activity;

(D)

the conduct and work activity of the person prior to and following the criminal activity;

(E)

evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and

(F)

other evidence of the person's present fitness, including letters of recommendation from:

(i)

prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person;

(ii)

the sheriff and chief of police in the community where the person resides; and

(iii)

any other persons in contact with the convicted person.

(G)

It shall be the responsibility of the applicant, to the extent possible, to secure and provide the department with the recommendations of prosecution, law enforcement, and correctional authorities.

(H)

A person who has been convicted of criminal activity shall furnish proof, in such form as may be required by the department, that he or she has:

(i)

otherwise maintained a record of good conduct; and

(ii)

paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he or she has been convicted.

(5)

The department will provide written notice of denial, suspension, or revocation in accordance with §18.94(d) of this title (relating to Sanctions). The person will have the opportunity to respond and request an administrative hearing in accordance with §18.94(e) and (f) of this title.

(b)

Failure to maintain insurance.

(1)

Upon receipt of notice of termination of insurance coverage under §18.86(c) of this title (relating to Insurance Requirements), the department will provide written notice of the proposed suspension and revocation in accordance with §18.94(d) of this title.

(2)

If the licensee does not file proof of insurance as required by §18.86 of this title prior to the termination of its existing insurance, the division will suspend the licensee's license for 90 days. The division will revoke the license on the 91st day unless the licensee provides proof of insurance in compliance with §18.86 of this title before the effective date of revocation. If proof of insurance is timely provided, the department will reinstate the license.

(3)

If the suspended licensee does not provide proof of insurance under paragraph (2) of this subsection, the licensee must file an application as required by §18.83 of this title (relating to Application for Original Vehicle Storage Facility).

(4)

A final order will be issued in accordance with §18.94(f)(2) of this title.

(c)

Failure to pay court ordered child support.

(1)

On receipt of a final order suspending license, issued under Family Code, §232.008, the department will issue a notice as described in §18.94(d) of this title and suspend the license of a vehicle storage facility operator.

(2)

The department will charge an administrative fee of $5.00 to a licensee who is the subject of an order suspending the license.

(d)

Terms of probation. If a vehicle storage facility licensee is placed on probation, the department may require the licensee to report regularly to the department on any matter that is the basis of the probation.

§18.96. Disposal of Certain Vehicles.

(a)

Applicability. No vehicle may be disposed of unless the vehicle storage operator has complied with all provisions of the Act, including but not limited to §13 and §14B concerning notification and disposal of abandoned vehicles.

(b)

Notification of proposed disposal. A vehicle storage facility operator shall notify the vehicle owner and all recorded lienholders of the proposed disposal of the vehicle in accordance with §13(d) of the Act concerning notification.

(c)

Documentation and records. A vehicle storage facility operator shall keep under its care and custody complete and accurate records of any vehicle disposed of under §14B of the Act concerning abandoned vehicles. These records shall include, but are not limited, to:

(1)

a copy of the VTR-265VSF form completed by the vehicle storage facility operator and provided to the vehicle buyer; and

(2)

copies of all notifications issued to the vehicle owner and all recorded lienholders.

(d)

Public sale. A vehicle storage facility operator may dispose of a vehicle through a public sale in compliance with §14B of the Act concerning abandoned vehicles. Disputes over the sale or dispersal of proceeds from the sale of the vehicle may be pursued through a court of appropriate jurisdiction.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 30, 1998.

TRD-9801433

Bob Jackson

Acting General Counsel

Texas Department of Transportation

Earliest possible date of adoption: March 15, 1998

For further information, please call: (512) 463-8630