89R24078 RDR-D By: LaHood H.B. No. 5499 Substitute the following for H.B. No. 5499: By: Phelan C.S.H.B. No. 5499 A BILL TO BE ENTITLED AN ACT relating to towing fee studies and the amount of nonconsent towing fees in certain political subdivisions; authorizing an increase in existing fees; authorizing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2308.203, Occupations Code, is amended to read as follows: Sec. 2308.203. TOWING FEE STUDIES; RATE ADJUSTMENT REQUIRED. (a) The governing body of a political subdivision that regulates nonconsent tow fees shall conduct or contract to conduct a study on the fees for nonconsent tows originating in the territory of the political subdivision at least once every two years [establish procedures by which a towing company may request that a towing fee study be performed]. (b) Not later than 30 days after receiving the results of a towing fee study described by Subsection (a), the [The] governing body of the political subdivision shall: (1) publish the results of the towing fee study and the methodology used to conduct the study on the political subdivision's publicly accessible Internet website; and (2) establish or amend the allowable fees for nonconsent tows at amounts that represent the fair value of the services of a towing company and are reasonably related to any financial or accounting information provided to the governing body. (c) If a political subdivision does not establish or amend the allowable fees for nonconsent tows as required by Subsection (b), the amount of fees that may be charged or collected in connection with a nonconsent tow originating in the territory of the political subdivision: (1) defaults to the fee for a nonconsent tow established by commission rule under Section 2308.0575; and (2) may not be established or amended by the governing body of the political subdivision as authorized by Subsection (b) until another towing fee study is conducted. (d) Subsection (c) applies only to a political subdivision in a county with a population of 750,000 or more. (e) In addition to the other fees authorized under this section, the governing body of a political subdivision may impose an administrative fee for each nonconsent tow originating in the political subdivision in an amount reasonably necessary to cover the political subdivision's cost of conducting a towing fee study under this section. The political subdivision shall maintain a separate account for administrative fees collected under this subsection. Administrative fees collected under this subsection may be used only by the governing body of the political subdivision to cover costs associated with conducting or contracting to conduct a towing fee study under this section. SECTION 2. Section 2308.505, Occupations Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) A person commits an offense if the person: (1) violates an ordinance, resolution, order, rule, or regulation of a political subdivision adopted under Section 2308.201, 2308.202, or 2308.2085 for which the political subdivision does not prescribe the penalty; (2) charges or collects a fee in a political subdivision that regulates the operation of tow trucks under Section 2308.201 or 2308.202 or booting under Section 2308.2085 that is not authorized or is greater than the authorized amount of the fee; (3) [charges or collects a fee greater than the amount authorized under Section 2308.204; [(4) charges or collects a fee in excess of the amount filed with the department under Section 2308.206; [(5)] violates Section 2308.205; or (4) [(6)] violates a rule of the department applicable to a tow truck, towing company, or booting company. (c) It is a defense to prosecution under Subsection (a)(2) that the person charges or collects a fee in a political subdivision that regulates the operation of tow trucks under Section 2308.202 in an amount that is authorized under Section 2308.203(c)(1) or (e). SECTION 3. The change in law made by this Act to Section 2308.505, Occupations Code, applies only to an offense committed on or after the effective date of this Act. An offense committed before the effective date of this Act is governed by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date. SECTION 4. This Act takes effect September 1, 2025.