PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 85. VEHICLE STORAGE FACILITIES
The Texas Commission of Licensing and Regulation (Commission) adopts amendments to an existing rule at 16 Texas Administrative Code (TAC), Chapter 85, §85.722, regarding the Vehicle Storage Facilities Program, without changes to the proposed text as published in the October 6, 2023, issue of the Texas Register (48 TexReg 5806). The adopted rule will not be republished.
EXPLANATION OF AND JUSTIFICATION FOR THE RULE
The rules under 16 TAC Chapter 85, implement Texas Occupations Code, Chapter 2303, Vehicle Storage Facilities.
The adopted rule amendments address the maximum amounts for vehicle storage and impoundment fees that may be charged by a vehicle storage facility company. The adopted rule increases the allowable vehicle storage facility impoundment fee and daily storage fees in accordance with changes in the Consumer Price Index for all Urban Consumers (CPI-U) during the preceding state fiscal biennium, as authorized by statute. Pursuant to Texas Occupations Code §2303.1552, the Texas Commission of Licensing and Regulation (Commission) is authorized to adjust the vehicle impound and storage fees based upon changes in the CPI not later than November 1st on every odd-numbered year. The Commission is then authorized by that statute to adjust the impoundment fee described under §2303.155(b)(2) and the storage fees described under §2303.155(b)(3) by an amount equal to the amount of the applicable fee in effect on December 31 of the preceding year multiplied by the percentage increase or decrease in the consumer price index during the preceding state fiscal biennium. The adopted rule, based upon analysis of the CPI during the preceding state fiscal biennium by Department staff, is necessary to comply with the statutory requirements to implement changes in the vehicle impound and storage fees for 2023.
2023 Rate Adjustment Pursuant to Stakeholder Comment
On or about August 3, 2023, the Department received a stakeholder comment regarding a concern about the calculations used for the 2023 Rate Adjustment pursuant to §2303.1552. The comment noted a difference in the calculations used between the 2019 and 2021 Rate Adjustments which resulted in reduced fees that VSF operators were authorized to charge under the 2021 maximum VSF Storage and Impoundment fee rates following that 2021 adjustment. Upon review of the two rate adjustments, the Department amended the 2023 Rate Adjustment, consistent with existing state law, which includes a "catch-up adjustment," using initial base fees that reflect what the maximum authorized fees would currently be if the same 2019 and 2021 rate adjustment calculations had been employed. The result will be higher allowed maximum fees to be charged by VSF operators under the adopted rule.
SECTION-BY-SECTION SUMMARY
The adopted rule amends §85.722(d) by reflecting the new maximum amounts for daily storage fees that may be charged by a vehicle storage facility in connection with receipt and storage of a vehicle, as authorized by statute.
The adopted rule amends §85.722(e) by reflecting the new maximum amount for the vehicle impoundment fee that may be charged by a vehicle storage facility in connection with impoundment and custody of a vehicle, as authorized by statute.
PUBLIC COMMENTS
The Department drafted and distributed the proposed rule to persons internal and external to the agency. The proposed rule was published in the October 6, 2023, issue of the Texas Register (48 TexReg 5806). The public comment period closed on November 6, 2023. The Department did not receive any comments from interested parties on the proposed rule.
ADVISORY BOARD RECOMMENDATIONS AND COMMISSION ACTION
The proposed rule was presented to the Towing and Storage Advisory Board (Advisory Board) at its meeting on September 13, 2023. The Advisory Board did not make any changes to the proposed rule. The Advisory Board voted and recommended that the proposed rule be published in the Texas Register for public comment. The Advisory Board agreed that a second meeting was not needed as the rule amendments employed the statutory calculations as authorized by Texas Occupations Code §2303.1552. At its meeting on December 1, 2023, the Commission adopted the proposed rule.
STATUTORY AUTHORITY
The adopted rule is adopted under Texas Occupations Code, Chapters 51 and 2303, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the adopted rule are those set forth in Texas Occupations Code, Chapters 51 and 2303. No other statutes, articles, or codes are affected by the adopted rule.
The legislation that enacted the statutory authority under which the adopted rule is adopted is House Bill 1140, 86th Legislature, Regular Session (2019).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 21, 2023.
TRD-202304937
Doug Jennings
General Counsel
Texas Department of Licensing and Regulation
Effective date: January 15, 2024
Proposal publication date: October 6, 2023
For further information, please call: (512) 463-7750