88R19540 DRS-D     By: King of Uvalde H.B. No. 3478       A BILL TO BE ENTITLED   AN ACT   relating to mediation of certain fee disputes between towing   companies and motor carriers.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2303.154, Occupations Code, is amended   by amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  Except as provided by Subsection (a-1), if [If] a   vehicle is not claimed by a person permitted to claim the vehicle   before the 10th day after the date notice is mailed or published   under Section 2303.151 or 2303.152, the operator of the vehicle   storage facility shall consider the vehicle to be abandoned and, if   required by the law enforcement agency with jurisdiction where the   vehicle is located, report the abandonment to the law enforcement   agency.  If the law enforcement agency notifies the vehicle storage   facility that the agency will send notices and dispose of the   abandoned vehicle under Subchapter B, Chapter 683, Transportation   Code, the vehicle storage facility shall pay the fee required under   Section 683.031, Transportation Code.          (a-1)  For purposes of this subsection, "motor carrier" has   the meaning assigned by Section 643.001, Transportation Code. A   motor vehicle operated by a motor carrier and held in a vehicle   storage facility may not be considered abandoned under Subsection   (a):                (1)  until the 31st day after the date notice is mailed   or published under Section 2303.151 or 2303.152; or                (2)  if the operator of the vehicle storage facility   receives notice:                      (A)  under Section 2308.554(a)(1)(B) that the   vehicle is the subject of a request for mediation under Subchapter   L, Chapter 2308; or                      (B)  under Section 2308.560(c) that the vehicle is   the subject of a civil action brought by a party to the fee dispute   that was the subject of a mediation under Subchapter L, Chapter   2308.          SECTION 2.  Subchapter D, Chapter 2303, Occupations Code, is   amended by adding Section 2303.1541 to read as follows:          Sec. 2303.1541.  SALE OR DISPOSAL OF VEHICLE PENDING   MEDIATION PROHIBITED. A vehicle storage facility operator who   receives notice under Section 2308.554(a)(1)(B) or Section   2308.560(c) may not sell at a public sale or otherwise dispose of or   report to a law enforcement agency under Section 683.031(c),   Transportation Code, the vehicle that is the subject of the notice   until the operator receives notice under Section 2308.560 that:                (1)  the mediation has been resolved; and                (2)  if a civil action related to the fee dispute that   was the subject of the mediation was filed by a party after the end   of the mediation process, the civil action has concluded.          SECTION 3.  Chapter 2308, Occupations Code, is amended by   adding Subchapter L to read as follows:   SUBCHAPTER L. FEE DISPUTE MEDIATION   BETWEEN TOWING COMPANY AND MOTOR CARRIER          Sec. 2308.551.  DEFINITION. In this subchapter, "motor   carrier" has the meaning assigned by Section 643.001,   Transportation Code.          Sec. 2308.552.  FEE DISPUTE MEDIATION REQUIRED ON MOTOR   CARRIER REQUEST. (a) A motor carrier may request mediation under   this subchapter in a dispute with a towing company relating to an   incident management or other nonconsent tow for which towing and   recovery fees exceed $20,000.          (b)  A towing company must participate in mediation   requested by a motor carrier under this subchapter.          Sec. 2308.553.  REQUEST FOR MEDIATION. (a) A motor carrier   may submit a request in the manner prescribed by the department not   later than the 30th day after the later of the date the motor   carrier:                (1)  pays the towing and recovery charges; or                (2)  receives notice from a vehicle storage facility   under Section 2303.151.          (b)  A motor carrier that does not timely submit a request   under Subsection (a) waives the right to mediation under this   subchapter.          Sec. 2308.554.  NOTICE OF REQUEST; ORDER. (a) On receipt of   a request for mediation under this subchapter, the department   shall:                (1)  give notice that the motor carrier has requested   mediation to:                      (A)  the towing company that towed the vehicle   that is the subject of the request for mediation; and                      (B)  the operator of the vehicle storage facility   storing the vehicle that is the subject of the request for   mediation; and                (2)  order the parties to participate in mediation   under this subchapter.          (b)  A vehicle storage facility operator who receives notice   under this section:                (1)  may continue to charge a daily storage fee   authorized by Section 2303.155(b)(3); and                (2)  may not sell the vehicle at a public sale or   otherwise dispose of the vehicle under Subchapter D, Chapter 2303,   or report the vehicle to a law enforcement agency under Section   683.031(c), Transportation Code, before the operator receives   notice under Section 2308.560 that:                      (A)  the mediation has been resolved; and                      (B)  if a civil action related to the fee dispute   that was the subject of the mediation was filed by a party after the   end of the mediation process, the civil action has concluded.          Sec. 2308.555.  MEDIATOR. (a) A person may not act as a   mediator in the mediation program unless the person is qualified as   an impartial third party under Section 154.052, Civil Practice and   Remedies Code.          (b)  The parties by agreement shall select and compensate a   mediator from the list maintained by the department, except that   the parties by written agreement may select a mediator not on the   department's list.          (c)  If the parties do not agree on a mediator by the 10th day   after the date the department orders the parties to participate in   the mediation:                (1)  the motor carrier or the towing company shall   notify the department that a mediator has not been selected; and                (2)  the department shall select a mediator from the   department's list of qualified mediators based on convenience to   the location of each party.          (d)  Sections 154.053 and 154.055, Civil Practice and   Remedies Code, apply to a mediator under this subchapter.          Sec. 2308.556.  LOCATION AND SCHEDULE OF MEDIATION. (a) The   parties by agreement shall select a venue and schedule for   mediation under this subchapter. If the parties are unable to agree   on a venue and schedule, the mediator shall select a venue and   schedule.          (b)  Mediation must be completed not later than the 30th day   after the date the department orders the parties to mediate, except   that the deadline may be extended by agreement of all parties.          Sec. 2308.557.  APPLICABLE LAW. Section 154.073, Civil   Practice and Remedies Code, and Rule 408, Texas Rules of Evidence,   apply to mediation under this subchapter.          Sec. 2308.558.  DURATION AND COSTS OF MEDIATION. (a) The   fee for a mediator employed under this subchapter may not exceed:                (1)  $750 per party, for a half-day mediation; or                (2)  $1,500 per party, for a full-day mediation.          (b)  A mediation may not exceed one day unless the parties   agree to extend the mediation.          (c)  The department is not liable for compensation paid or to   be paid to a mediator employed under this subchapter.          (d)  Without regard to the outcome of mediation or subsequent   regulatory or judicial proceedings, costs incurred by a party in   mediation required by this subchapter may not be imposed on the   opposing party.          Sec. 2308.559.  MATTERS CONSIDERED IN MEDIATION; AGREED   RESOLUTION. In a mediation under this subchapter, the parties   shall evaluate, without limitation, whether the amount charged by   the towing company is excessive. If the parties determine that the   amount charged is excessive, the parties shall determine the   appropriate charges for services rendered.          Sec. 2308.560.  OUTCOME OF MEDIATION; CIVIL ACTION. (a) Not   later than the 15th day after the date the mediation concludes, the   mediator shall report to the department whether mediation resolves   the dispute. The department shall notify the operator of the   vehicle storage facility where the vehicle that is the subject of   the mediation is being stored of the outcome of the mediation.          (b)  If mediation does not resolve the dispute, either party   may file a civil action. A party in a mediation under this   subchapter may not bring a civil action before the conclusion of the   mediation process under this subchapter. This subsection does not   prohibit a motor carrier from filing a request for a hearing under   Subchapter J before the conclusion of mediation.          (c)  If a party in mediation brings a civil action related to   the fee dispute that was the subject of the mediation after the   conclusion of the mediation process, the party bringing the action   shall give notice to the operator of the vehicle storage facility   storing the vehicle that is the subject of the action of the   initiation and conclusion of the action. Notice under this   subsection must be given:                (1)  on filing the petition with the court, if the motor   carrier is the party filing the action; or                (2)  on service of citation on the motor carrier.          (d)  A vehicle storage facility operator who receives notice   of a civil action from a party under this section:                (1)  may continue to charge a daily storage fee   authorized by Section 2303.155(b)(3); and                (2)  may not sell the vehicle at a public sale or   otherwise dispose of the vehicle under Subchapter D, Chapter 2303,   before the party bringing the action gives the operator notice that   the action is concluded in favor of the towing company.          Sec. 2308.561.  FORMS AND PROCEDURES; REQUEST PORTAL. The   department shall:                (1)  adopt forms and procedures necessary to administer   this subchapter;                (2)  establish a portal on the department's Internet   website through which a request to participate in the mediation   program may be submitted; and                (3)  maintain a list of qualified mediators on the   department's Internet website.          SECTION 4.  Section 683.031, Transportation Code, is amended   by amending Subsection (a) and adding Subsection (a-1) to read as   follows:          (a)  Except as provided by Subsection (a-1), a [A] motor   vehicle is abandoned if the vehicle is left in a storage facility   operated for commercial purposes after the 10th day after the date   on which:                (1)  the garagekeeper gives notice by registered or   certified mail, return receipt requested, to the last known   registered owner of the vehicle and to each lienholder of record of   the vehicle under Chapter 501 to remove the vehicle;                (2)  a contract for the vehicle to remain on the   premises of the facility expires; or                (3)  the vehicle was left in the facility, if the   vehicle was left by a person other than the registered owner or a   person authorized to have possession of the vehicle under a   contract of use, service, storage, or repair.          (a-1)  For purposes of this subsection, "motor carrier" has   the meaning assigned by Section 643.001.  A motor vehicle operated   by a motor carrier and held at a vehicle storage facility may not be   considered abandoned under this subchapter:                (1)  until the 31st day after the date described by   Subsection (a); or                (2)  if the operator of the vehicle storage facility   receives notice:                      (A)  under Section 2308.554(a)(1)(B), Occupations   Code, that the vehicle is the subject of a request for mediation   under Subchapter L, Chapter 2308, Occupations Code; or                      (B)  under Section 2308.560(c), Occupations Code,   that the vehicle is the subject of a civil action brought by a party   to the fee dispute that was the subject of a mediation under   Subchapter L, Chapter 2308, Occupations Code.          SECTION 5.  This Act takes effect September 1, 2023.