Vehicle Storage Facilities Penalties and Sanctions

Texas Occupations Code, Chapter 2303

Texas Occupations Code, Chapter 2308

16 Texas Administration Code, Chapter 85

Class A:

1^st Violation, Reprimand to $1,000

2^nd Violation, $500 to $2,000

3^rd Violation, $1,000 to $4,000 per day not corrected and/or 6-month probated suspension to 1-year full suspension

Failure to notify the Department of an operator’s name change no later than the effective date of change - 85.702(a)(1)
Failure to notify the Department of a change of an operator’s mailing or physical address no later than the effective date of change - 85.702(a)(2)
Failure to notify the Department of a change in the facility's storage capacity no later than the effective date of change - 85.702(a)(3)
Failure to notify the Department of a change in the licensee’s drug testing policy within 30 days of the date of change - 85.702(a)(4)
Nonconsent tow ticket did not contain all required tow company information - 85.706(c)
Failure to notify the vehicle owner of the Department’s website and email address, mailing address, and telephone number where required - 85.707
Failure to require a receipt from the person removing personal belongings from a stored vehicle - 85.708(b)(2)
Failure to give the Department notice containing all required information prior to the storage facility beginning use of a telephone number different from the one on file with the Department - 85.715
Failure to have a clearly visible and readable sign which displays the required information in the proper lettering size and color contrast - 85.1003(a)
Failure to have a clearly visible sign in the proper lettering size and color contrast which sets out the charge for storage and all other fees, and all forms of payment accepted - 85.1003(b)
Failure to have a conspicuously placed sign in one inch letters stating "Applicable schedules of nonconsent towing fees will be provided for viewing upon request by persons claiming vehicles." - 85.1003(c)
Failure to have a clearly visible sign in the proper lettering size and color contrast which lists all documents that may be presented to obtain possession of the vehicle, or did not state "Affidavit of Right of Possession Furnished Upon Request." - 85.1003(d)

Class B:

1^st Violation, $500 to $3,000 and/or up to 6-month probated suspension

2^nd Violation, $1,500 to $5,000 plus 1-year probated suspension to 1-year full suspension

3^rd Violation, $3,000 to $5,000 per day not corrected plus 1-year full suspension to revocation

Failure to send proper notice of the vehicle’s location to the vehicle owner and lienholder by the fifth day after receipt of the vehicle which is registered in Texas - 2303.151(a), 2303.151(d), 2303.151(e), 2303.153(a), 85.703(b)(1)
Failure to send proper notice of the vehicle’s location to the vehicle owner and lienholder by the 14th day after receipt of the vehicle which is registered outside Texas - 2303.151(b),2303.151(d),2303.151(e), 2303.153(a), 85.703(b)(2)
Failure to provide the notice to the owner and lienholder by publication when required - 2303.152(a), 2303.152(e), 85.703(f)
Provided notice by publication when all requirements allowing notice by publication had not been met - 2303.152(a), 2303.152(b), 2303.152(e), 85.703(f)
Failure to have a notice by publication contain all required information - 2303.153(b), 85.703(i)(2)
Failure to send a second notice of the vehicle’s location to the vehicle owner and lienholder when required - 2303.154(a), 85.704(a)
Failure to send required notice to a law enforcement agency regarding an abandoned vehicle - 2303.154(a-1), 85.704(b)
Failure of second notice to contain all required information - 2303.154(b), 2303.154(c), 85.704(c), 85.704(d)
Disposed of an abandoned nuisance vehicle before the 30^th day after the first and only notice was sent - 2303.1545(a)
Failure to notify the Department or a law enforcement agency that the required notices regarding an abandoned vehicle have been provided and pay the $10 fee - 2303.1545(b), 85.724(b)
Charged an impoundment fee greater than $20 - 2303.155(b)(2), 85.722(e)
Charged a daily storage fee of more than $20 for each day for a vehicle not longer than 25 feet - 2303.155(b)(3)(A), 85.722(d)
Charged a daily storage fee of more than $35 for each day for a vehicle longer than 25 feet - 2303.155(b)(3)(B), 85.722(d)
Charged a notification fee exceeding $50 or a cost a publication fee greater than allowed by law - 2303.155(b)(1), 2303.155(c), 85.722(c)(1)
Charged a storage fee for more than one day when the vehicle remained at the facility for less than 12 hours - 2303.155(d), 85.722(d)(1)
Failure to accept payment by electronic check, debit card, or credit card for the delivery or storage of a vehicle - 2303.159(a), 85.711
Failure to provide a copy of a nonconsent towing fees schedule on request - 2308.207(a), 2308.207(b)
Failure to give a vehicle owner who paid the cost of the vehicle’s removal written notice of the person’s rights under Chapter 2308 - 2308.454(a)
Failure to include a notice of the person’s rights within the required notice which states the facility has the vehicle - 2308.454(b)
Failure of a vehicle owner’s written notice of rights to include all required information - 2308.455, 85.710(a)(1)
Failure to complete all corrective actions and provide written verification to the Department - 85.453(a)(2)
Failure to have notification to vehicle owner meet all mailing requirements - 85.703(d), 85.703(i)
Failure to have mailed notification state all required information - 85.703(1)
Failure to have published notification state all required information - 85.703(2)
Accepted a vehicle nonconsent towed from private property and failed to report the tow to local law enforcement within two hours of receipt of vehicle - 2308.256, 85.705(a), 85.705(b)
Failure to have the required nonconsent tow report contain all required information - 85.705(c)
Failure to keep a record of to whom the required nonconsent tow report was reported, the date and time, or the tracking or control number assigned by the law enforcement agency - 85.705(c)
Failure to maintain a copy of all written documentation regarding operations for a minimum of two years from release of disposal of vehicle - 85.706(a)
Failure of written documentation to contain all required information - 85.706(b)
Accepted a vehicle for storage but did not make or maintain a valid and current copy of the tow operator’s license and the cab card for the driver and truck delivering the vehicle - 85.706(d)
Failure to keep all required records under the storage facility’s care and custody for at least two years from the date of vehicle release or disposal - 85.706(e)
Failure to allow the vehicle owner or an authorized representative to inspect the tow ticket before being required to pay fees - 85.708(b)(1)
Failure to give the vehicle owner or an authorized representative access to the vehicle or to remove personal belongings from the vehicle - 85.708(b)(2)
Failure to allow the vehicle owner or an authorized representative access to the vehicle for the purposes of insurance and/or repair estimates - 85.708(b)(3)
Failure to provide a legible copy of the tow ticket to an insurer within three days of being presented with a proof of loss claim form - 85.708(c)(2)(A)
Failure to provide a legible copy of the tow ticket to a tow truck operator upon being presented with a proof of loss claim form - 85.708(c)(2)(B)
Requested a vehicle owner sign an authorization form for a tow, repair, or any other service, for a tow initiated by law enforcement - 85.708(d)
Failure to a provide a tow ticket to the vehicle owner or owner’s representative - 85.710(a)(2)
Required an owner or owner’s representative to sign a form which changed the status of a law enforcement initiated tow from a nonconsent tow to a consent tow status - 85.710(b)(1)
Required an owner or owner’s representative to sign a form which changed the status of the vehicle storage resulting from a nonconsent tow to a consent storage status - 85.710(b)(2)
Required an owner or owner’s representative to sign a form which imposed additional charges not regulated by the Department - 85.710(b)(3)
Released a commercial vehicle stored at the direction of Texas DPS when the amount of delinquent administrative penalty assessed against the vehicle had not been paid - 85.713(b)
Failure to note a correct license plate or vehicle identification number in the facility’s records - 85.716
Failure to notify every previously notified person within 48 hours of a vehicle’s correct license plate or vehicle identification number - 85.716
Failure to make reasonable efforts necessary for the storage of the vehicle - 85.719(a)
Failure to use plastic or canvas tarpaulins to ensure the impoundment of the vehicle - 85.719(b)
Allowed a stored vehicle to be repaired, altered, of to have parts removed or replaced without the consent of the owner or owner’s representative - 85.720
Moved a vehicle from the storage facility within 31 days of delivery without the owner’s authorization - 85.721
Moved a vehicle from the storage facility within 31 days of delivery and assessed an additional charge - 85.721
Moved a vehicle from the storage facility within 31 days of delivery and failed to send notice no less than 72 hours prior to the move - 85.721
Charged unpermitted fees after a vehicle was towed to another location without the owner’s permission - 85.721(1)
Failure to inform a vehicle owner upon request of the location of the vehicle at all times from vehicle relocation to ultimate vehicle disposition - 85.721(2)
Failure to maintain a record of ultimate vehicle disposition which includes all required information - 85.721(3)
Charged a notification fee when the vehicle was removed within 24 hours or before the notification was sent - 85.722(c)(3)
Disposed of a vehicle without complying with all provisions of the law concerning notification and disposal of abandoned vehicles - 85.723(a)
Failure to keep complete and accurate records for a disposed vehicle which include all required information - 85.723(b)
Failure to have the storage facility completely enclosed by a fence six feet high with a gate - 85.1000(1)
Failure to lock the storage facility fence gate at all times when the licensee or an agent or employee is not at the storage lot - 85.1000(1)
Operated two vehicle storage facilities within the same fenced area - 85.1000(1)
Stored or kept a vehicle at a storage facility which was not kept inside the fenced area or an enclosed area - 85.1000(2)(A)
Did not secure a vehicle accepted for storage to prevent theft of the vehicle or its contents - 85.1000(2)(B)
Failure to have an all-weather surface or surface was overgrown with vegetation - 85.1001
Failure to maintain illumination levels adequate for nighttime release of vehicles - 85.1002
Posted nonconsent towing fee schedule did not match the fee schedule on file with the Department - 85.1003(c)

Class C:

1^st Violation, $1000 to $5,000 and/or 1-year probated suspension up to revocation

2^nd Violation, $2000 to $5,000 plus 1-year probated suspension to revocation

3^rd Violation, $3,500 to $5,000 per day not corrected plus revocation

Failure to pay risk-based inspection fee - 2303.056(d), 85.452(c)
Operated a vehicle storage facility without holding a license for that facility - 2303.101(a),85.200, 85.203(b)
Worked in a vehicle storage facility without holding an employee license - 2303.1015(a), 85.204(b)
Employed a person who did not hold a vehicle storage facility employee license - 2303.1015(a), 85.204(b), 85.205(b)
Charged for more than five days of storage before mailing notice or requesting owner information from the proper governmental entity - 2303.155(e), 85.722(d)(2), 85.722(d)(3)
Charged an additional fee for storage which is not authorized by law - 2303.155(f), 85.722(h)
Disposed of an abandoned vehicle before the 30^th day after notice was sent - 2303.157(a),
Failure to apply the proceeds from the sale of a vehicleto the charges incurred for the vehicle - 2303.157(b)
Failure to pay any excess proceeds from a vehicle sale to the person entitled to those proceeds - 2303.157(b), 85.704(e)
Sold a vehicle before the 30^th day after notice was sent that was not an abandoned nuisance vehicle and did not submit an application for disposal to the Department of Transportation - 2303.157(c)
Failure to allow vehicle owner access to vehicle to obtain documents to establish ownership - 2303.158, 85.708(a)
Failure to release a vehicle or required an affidavit for release because the valid identification presented had a different address than the address on the title or registration for the vehicle - 2303.160(a), 85.710(a)(4)
Failure to accept evidence of financial responsibility as a form of identification that establishes right of possession of the vehicle - 2303.160(b), 85.710(a)(5)
Operated or managed a vehicle storage facility as a sole proprietor or unincorporated partnership without holding an employee license - 85.204(c)
Obtained insurance from an insurer not authorized to do business in Texas - 85.400(b)
Name and address on the certificate of insurance was different than those on the permit - 85.400(c)
Failure to maintain liability insurance for each vehicle storage facility in the required amount - 85.400(d)(1), 85.400(d)(2)
Certificate of insurance failed to contain a provision obligating the insurer to give the Department thirty days notice before the effective date of a policy cancellation date - 85.400(d)(3)
Failure of a vehicle storage facility owner, manager, or their representative to cooperate with an inspector in the performance of the inspection - 85.450(d)
Engaged in false, misleading, or deceptive advertising - 85.701
Failure to make all documents available to a Department inspector or law enforcement officer for inspection or copying - 85.706(e)
Failure to give a vehicle owner access to the current nonconsent towing fees schedule for the specific company that towed the vehicle - 85.708(b)(4)
Allowed an unpermitted tow truck to enter onto the vehicle storage facility grounds - 85.709
Failure to allow an owner or owner’s representative to obtain possession of a vehicle when all fees were paid and valid identification and acceptable documentation proving right of possession were presented - 85.710(a)(3)
Did not have a vehicle available for release 24 hours a day when the facility accepted vehicles 24 hours a day - 85.710(a)(7)
Did not have a vehicle available for release during the required hours within one hour of notice - 85.710(a)(8)
Did not clearly note the time of receipt of a call requesting release, or did not have the person requesting release separately initial the notation - 85.710(a)(9)
Refused to release of a vehicle to an owner or insurance company due to nonpayment by the law enforcement agency that directed the towing and storage - 85.713(a)
Failure to provide upon request all required liability insurance information - 85.714
Provided liability insurance information which was not the same as that on file with the Department - 85.714
Failure to have a publicly listed telephone number at which the vehicle storage facility could be contacted. - 85.715
Failure to inspect an accepted vehicle and note on the tow ticket any differences from the information already on the ticket - 85.716
Defaced or wrote over any previous writing on a tow ticket when adding information during the vehicle inspection - 85.716
Removed parts or dismantled or demolished a vehicle within the storage area when not allowed - 85.717
Used a stored vehicle for personal or business use without the written consent of the owner - 85.718
Charged an impoundment fee when the impoundment was not performed in accordance with 16TAC Ch. 85 - 2303.155(b)(2), 85.719(c), 85.722(e)
Charged an impoundment fee but the written bill for services did not specify the exact services performed for that fee and the dates those services were performed - 85.722(e)

Class D:

1^st Violation, $2,000 to $5000 and/or 6-month to 1-year suspension

2^nd Violation, $3,000 to $5,000 plus 1-year suspension up to revocation

3^rd Violation, Revocation

Failure of a vehicle storage facility to establish a drug testing policy for its employees - 2303.160, 85.725
Failure or refusal to fully cooperate and comply with any term of the vehicle storage facility’s drug testing policy - 85.725
Vehicle storage facility employee or applicant took or was under the influence of a drug not prescribed by a physician - 85.725(a)(5)(A)
Vehicle storage facility employee or applicant engaged in the manufacture, sale, distribution, use, or unauthorized possession of illegal drugs - 85.725(a)(5)(B)
Failure of a vehicle storage facility to notify the Department of an employee’s drug conviction - 85.725(a)(5)(D)
Failure of a vehicle storage facility to notify the Department within three days of an employee’s confirmed positive drug test result - 85.725(a)(8)(E)
Failure of a vehicle storage facility employee to stand down from vehicle storage facility duties following a positive drug test result confirmation - 86.710(a)(11)(B)

Class E:

1^st Violation, Revocation

2^nd Violation, Revocation

3^rd Violation, Revocation

Failure to comply with previous order of the Commission/Executive Director - 2303.304(a)(2), 65.90
Obtained a license by fraud or false representation - 2303.103(1), 65.90(c)(1)
Failure to pay the Department for a dishonored check - 60.82

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