Vehicle Booting and Immobilization - Proposed Amendments to Administrative Rules

Chapter 89. Vehicle Booting and Immobilization

Proposal Filed: April 23, 2018 – Published in the Texas Register: May 4, 2018
Deadline for Public Comment: June 4, 2018

Underlined text is new language.

[ Strikethrough text ] is deleted language.

The Texas Department of Licensing and Regulation (Department) proposes the repeal of existing rules at 16 Texas Administrative Code (TAC), Chapter 89, §§89.1, 89.10, 89.21 - 89.30, 89.40, 89.45 - 89.48, 89.65 - 89.73, 89.75 - 89.80, 89.90, 89.91, and §§89.100 - 89.103, regarding the Vehicle Booting and Immobilization program.

JUSTIFICATION AND EXPLANATION OF THE RULES

The proposed repeal implements changes from Senate Bill 1501 and Senate Bill 2065, 85th Legislature, Regular Session (2017), which deregulates vehicle booting at the state level, with a transfer of regulatory authority to municipalities. The proposed repeal is necessary to implement Senate Bill 1501 and Senate Bill 2065.

SECTION-BY-SECTION SUMMARY

The proposed repeal of §§89.1, 89.10, 89.21 - 89.30, 89.40, 89.45 - 89.48, 89.65 - 89.73, 89.75 -89.80, 89.90, 89.91, and §§89.100 - 89.103, deregulates vehicle booting at the state level.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Brian E. Francis, Executive Director, has determined that for each year of the first five years the proposed repeal is in effect, there are no estimated additional costs or reductions in costs to state government as a result of enforcing or administering the proposed repeal.

There are currently 92 boot operators and 10 booting companies regulated by the Department. The workload imposed on the Department from these licensees is minimal given that most booting operator licenses are applied for online and there are a small number of booting companies seeking licensure in any given year. There is no reduction in costs to the state because the workload is not significantly reduced.

Mr. Francis has also determined that there may be additional costs imposed on local governments if they choose to create a local booting program. However, these costs are unknown because creation of a booting program on the local level is not mandatory and costs may vary widely depending on the type and extent of regulation imposed by local governments for their individual programs.

Mr. Francis has also determined that for each year of the first five years the proposed repeal is in effect, there is a loss of revenue to the state totaling $7,050 because of the elimination of the boot operator license ($75 per license) held by an average annual population of 94 operators, and a yearly loss of $3,000 in revenue each year for the elimination of the booting company license ($350 per license), held by an average annual population of 12 companies.

Conversely, the deregulation of licenses will not result in an increase of revenue to the state because the corresponding application fees are eliminated.

LOCAL EMPLOYMENT IMPACT STATEMENT

Mr. Francis has determined that the proposed repeal deregulates, but does not eliminate or prohibit, booting regulation as a practice. Booting companies and operators can still operate in a newly deregulated environment and local political subdivisions can regulate these companies and operators if they choose to do so.

PUBLIC BENEFITS

Mr. Francis has determined that for each year of the first five-year period the proposed repeal is in effect, the public benefit will be that the cost of issuing and maintaining booting licenses is eliminated on the state level, while allowing municipalities to protect consumers through local control, if they choose to enact a booting regulation program, and still allowing booting operators and companies to operate in a newly deregulated environment.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Francis has determined that for each year of the first five-year period the proposed repeal is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed repeal.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

There will be no adverse effect on small businesses, micro-businesses, or rural communities as a result of the proposed repeal on the state level.

There could, however, be an effect on booting companies and operators, if local governments choose to regulate them. However, it is unknown which local governments would choose to regulate; how much they would charge booting companies and operators to be regulated; or if the regulation at that level would have an adverse effect or not.

Since the agency has determined that the proposed repeal will have no known adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, are not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

Under Government Code §2001.0045, a state agency may not adopt a proposed rule if the fiscal note states that the rule imposes a cost on regulated persons, including another state agency, a special district, or a local government, unless the state agency: (a) repeals a rule that imposes a total cost on regulated persons that is equal to or greater than the total cost imposed on regulated persons by the proposed rule; or (b) amends a rule to decrease the total cost imposed on regulated persons by an amount that is equal to or greater than the cost imposed on the persons by the proposed rule. There are exceptions for certain types of rules under §2001.0045(c).

The proposed repeal does not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the rule will be in effect, the agency has determined the following:

(1) The proposed repeal does eliminate a government program because the State will no longer regulate booting companies and operators pursuant to SB 1501 and SB 2065.

(2) Implementation of the proposed repeal does not require the creation of new employee positions or the elimination of existing employee positions because the number of booting licenses across the state is minimal and does not require the employment of individuals at the state level who are solely dedicated to the booting program. Additionally, most booting licenses were obtained through an online process that did not require one-on-one interactions with agency employees.

(3) Implementation of the proposed repeal does not require an increase or decrease in future legislative appropriations to the agency because the booting program will no longer exist at the state level.

(4) The proposed repeal does require a decrease in fees paid to the agency because booting operators and companies will no longer require state licensure.

(5) The proposed repeal does not create a new regulation.

(6) The proposed repeal does repeal existing booting regulations, for companies and operators, that are found in 16 TAC Chapter 89.

(7) The proposed repeal does decrease the number of individuals subject to the rule's applicability because booting companies and operators will no longer be regulated at the state level.

(8) The proposed repeal does not positively or adversely affect this state's economy. The effect on the state’s economy is neutral because the number of regulated operators and companies was minimal and did not generate a significant amount to the state in fees.

PUBLIC COMMENTS

Comments on the proposal may be submitted to Ana Villarreal, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile (512) 475-3032, or electronically: erule.comments@tdlr.texas.gov . The deadline for comments is 30 days after publication in the Texas Register.

STATUTORY AUTHORITY

The repeal is proposed under Texas Occupations Code, Chapters 51 and 2308, which authorize the Commission, 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 proposal are those set forth in Texas Occupations Code, Chapters 51 and 2308. No other statutes, articles, or codes are affected by the proposal.

[ Chapter 89. Vehicle Booting and Immobilization ]

[ 89.1. Authority and Purpose ]

[ 89.10. Definitions ]

[ 89.21. License Required to Install Boots or Operate Booting Company ]

[ 89.22. License--License Nontransferable and Valid for One Year ]

[ 89.23. License Requirement--Booting Operator License ]

[ 89.24. License Requirement--Booting Operator License Renewal ]

[ 89.25. License Requirement--Booting Company License ]

[ 89.26. License Requirement--Booting Company License Renewal ]

[ 89.27. License--Notice of Proposed Denial, Opportunity to Comply ]

[ 89.28. Department Notification to Licensee ]

[ 89.29. License Requirements--Booting Operator Continuing Education ]

[ 89.30. Exemptions ]

[ 89.40. Insurance Requirements ]

[ 89.45. Inspections--General ]

[ 89.46. Periodic Inspections ]

[ 89.47. Risk-based Inspections ]

[ 89.48. Corrective Actions Following Inspection ]

[ 89.65. Towing, Storage, and Booting Advisory Board ]

[ 89.66. Responsibilities of Licensee--Change to Booting Operator License ]

[ 89.67. Responsibilities of Licensee--Change to Booting Company License ]

[ 89.68. Responsibilities of Licensee--Booting of Vehicles ]

[ 89.69. Responsibilities of Licensee--Proof of Authority to Install Boot ]

[ 89.70. Responsibilities of Licensee--Conspicuous Notice of Booting ]

[ 89.71. Responsibilities of Licensee--Receipt on Removal of Boot ]

[ 89.72. Responsibilities of Licensee--Inspection of Records ]

[ 89.73. Responsibilities of Licensee--Form of Payment ]

[ 89.75. Responsibilities of Licensee--Removal of Boot ]

[ 89.76. Responsibilities of Licensee--Deposits ]

[ 89.77. Responsibilities of Licensee--Independent Contractors ]

[ 89.78. Responsibilities of Licensee--Prohibited Financial Benefits ]

[ 89.79. Responsibilities of Licensee--Prohibitions Against Booting and Towing the Same Vehicle ]

[ 89.80. Fees ]

[ 89.90. Administrative Sanctions and Penalties ]

[ 89.91. Enforcement Authority ]

[ 89.100. Technical Requirements--Provide Insurance Information to Vehicle Owner or Operator ]

[ 89.101. Technical Requirements--Municipal Booting Fees ]

[ 89.102. Technical Requirements--Vehicle Signage ]

[ 89.103. Technical Requirements--Booting Operator Identification ]

REVIEW BY AGENCY COUNSEL

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be a valid exercise of the agency’s legal authority.

Filed with the Office of the Secretary of State, on April 23, 2018.

Brian E. Francis
Executive Director
Texas Department of Licensing and Regulation