88R7046 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.  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)(2) or Section   2308.560(c) may not sell at a public sale or otherwise dispose of   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 was filed by a party after the   end of the mediation process, the civil action has concluded.          SECTION 2.  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 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. (a) On receipt of a   request for mediation under this subchapter, the department shall   give notice that the motor carrier has requested mediation to:                (1)  the towing company that towed the vehicle that is   the subject of the request for mediation; and                (2)  the operator of the vehicle storage facility   storing the vehicle that is the subject of the request for   mediation.          (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,   before the operator receives notice under Section 2308.560 that:                      (A)  the mediation has been resolved; and                      (B)  if a civil action 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 gives notice to the towing company of   the request for mediation:                (1)  the motor carrier 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 the towing company.          (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 the department at the request   of all parties.          Sec. 2308.557.  APPLICABLE LAW. Section 154.073, Civil   Practice and Remedies Code, applies to mediation under this   subchapter.          Sec. 2308.558.  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)  The department is not liable for compensation paid or to   be paid to a mediator employed under this subchapter.          (c)  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. (a) In a mediation under this subchapter, the parties   shall evaluate 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.          (b)  A mediator may not impose the mediator's own judgment on   the issues for that of the parties.          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 after the   conclusion of the mediation process, the motor carrier 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 motor carrier 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 motor carrier gives the operator notice of the   conclusion of the action.          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 3.  This Act takes effect September 1, 2023.