By Cuellar of Webb H.B. No. 180
74R701(1) CLG
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of certain freight forwarders and to
1-3 forms regarding exports; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. DEFINITIONS. In this Act:
1-6 (1) "Freight forwarder" means a person, other than a
1-7 motor carrier, who holds itself out to the general public to
1-8 provide transportation of property for compensation and in the
1-9 ordinary course of its business:
1-10 (A) assembles and consolidates, or provides for
1-11 assembling and consolidating, a shipment;
1-12 (B) performs or provides for break-bulk and
1-13 distribution operations of a shipment;
1-14 (C) assumes responsibility for the
1-15 transportation of property from the place of receipt to the place
1-16 of destination; and
1-17 (D) uses a motor carrier for any part of the
1-18 transportation.
1-19 (2) "Motor carrier" has the meaning assigned by 49
1-20 U.S.C. Section 10102.
1-21 (3) "Person" means an individual, firm, or
1-22 corporation.
1-23 SECTION 2. LICENSE REQUIRED. A freight forwarder who is not
1-24 subject to licensing by the Interstate Commerce Commission may not
2-1 operate in this state without a license issued under this Act.
2-2 SECTION 3. LICENSE APPLICATION, ISSUANCE, AND RENEWAL. (a)
2-3 An applicant for a freight forwarder license must submit to the
2-4 attorney general:
2-5 (1) an application on a form prescribed by the
2-6 attorney general;
2-7 (2) a nonrefundable application fee; and
2-8 (3) a license fee.
2-9 (b) The attorney general shall issue a license if the
2-10 attorney general finds that the applicant meets the requirements of
2-11 this Act and the rules adopted under this Act.
2-12 (c) A license is valid for one year after the date the
2-13 license is issued.
2-14 (d) To renew a license, the licensee must submit to the
2-15 attorney general:
2-16 (1) an application for renewal on a form prescribed by
2-17 the attorney general; and
2-18 (2) a license renewal fee.
2-19 (e) A licensee may not transfer or assign a license issued
2-20 under this Act.
2-21 SECTION 4. FEES. The attorney general shall set the license
2-22 application fee, license fee, and license renewal fee in amounts
2-23 reasonable and necessary to defray the cost of administering this
2-24 Act.
2-25 SECTION 5. FREIGHT FORWARDER FUND. The attorney general
2-26 shall deposit fees collected under this Act to the credit of the
2-27 freight forwarder fund. Money in that fund may be appropriated
3-1 only to the attorney general and only to administer and enforce
3-2 this Act.
3-3 SECTION 6. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
3-4 (a) The attorney general may deny, suspend, or revoke a license
3-5 for a violation of this Act or a rule adopted under this Act.
3-6 (b) The denial, suspension, or revocation of a license by
3-7 the attorney general and the appeal from that action are governed
3-8 by the procedures for a contested case hearing under Chapter 2001,
3-9 Government Code.
3-10 SECTION 7. ADOPTION OF RULES. The attorney general shall
3-11 adopt rules necessary to implement this Act, including requirements
3-12 for the issuance, renewal, denial, suspension, and revocation of a
3-13 license.
3-14 SECTION 8. QUALIFICATIONS. (a) A person, other than a
3-15 corporation, is not eligible for a license or must surrender an
3-16 existing license if:
3-17 (1) during the period the person holds the license or
3-18 during the 10-year period preceding the date the license is issued,
3-19 the person has been convicted of:
3-20 (A) a felony or a crime involving moral
3-21 turpitude under the laws of this state, any other state, or the
3-22 United States; or
3-23 (B) a crime under the laws of another country
3-24 that involves moral turpitude or would be a felony if committed in
3-25 the United States; or
3-26 (2) the person owes delinquent taxes to any local,
3-27 state, or federal taxing entity.
4-1 (b) The attorney general may refuse to grant a license to a
4-2 corporation or may suspend or revoke a corporation's license if:
4-3 (1) the attorney general determines that, during the
4-4 period the corporation holds the license or during the 10-year
4-5 period preceding the date the license is issued, an officer,
4-6 director, member, or shareholder of the corporation or of a
4-7 corporation that owns shares in the corporation has been convicted
4-8 of:
4-9 (A) a felony under the laws of this state, any
4-10 other state, or the United States; or
4-11 (B) fraud or misrepresentation; or
4-12 (2) the corporation owes delinquent taxes to any
4-13 local, state, or federal taxing entity.
4-14 SECTION 9. BOND. (a) A freight forwarder who is licensed
4-15 under this Act shall post a bond in an amount determined by the
4-16 attorney general with a qualified surety company doing business in
4-17 this state.
4-18 (b) The bond must be conditioned on compliance by the
4-19 freight forwarder with this Act and each rule adopted under this
4-20 Act.
4-21 SECTION 10. RECORDS. (a) A freight forwarder shall
4-22 maintain a record that contains the following information for each
4-23 shipment of property the freight forwarder assumes responsibility
4-24 for transporting:
4-25 (1) the name of the sender of the property;
4-26 (2) the type of property that is being transported;
4-27 (3) the destination point of the property that is
5-1 being transported;
5-2 (4) the name of the person receiving the property; and
5-3 (5) the name of the person transporting the property.
5-4 (b) The freight forwarder shall keep a copy of a record
5-5 required under this section until the fourth anniversary of the
5-6 date the property is transported from this state.
5-7 SECTION 11. AUDIT.(a) The attorney general may periodically
5-8 audit the business records of a freight forwarder licensed under
5-9 this Act.
5-10 (b) For the purpose of carrying out this Act, the attorney
5-11 general may:
5-12 (1) examine a record required to be maintained under
5-13 Section 10 of this Act or another book, record, paper, or object
5-14 that the attorney general determines is necessary for conducting a
5-15 complete examination; or
5-16 (2) question, under oath, any person associated with
5-17 the freight forwarder's business, including an officer, director,
5-18 or employee of the freight forwarder.
5-19 (c) If a person required by the attorney general to submit
5-20 to an examination under this section refuses to permit the
5-21 examination or to answer any question authorized by this Act, the
5-22 attorney general may suspend the freight forwarder's license until
5-23 the examination is completed.
5-24 SECTION 12. ENFORCEMENT. The attorney general, with the
5-25 assistance of the Department of Public Safety, may investigate a
5-26 violation of this Act or a rule adopted under this Act. The
5-27 attorney general or any law enforcement agency may file a complaint
6-1 with the district attorney of Travis County or with the prosecuting
6-2 attorney of the county in which a violation is alleged to have
6-3 occurred.
6-4 SECTION 13. COOPERATIVE AGREEMENTS. The attorney general
6-5 shall cooperate with federal or state agencies in carrying out this
6-6 Act.
6-7 SECTION 14. CRIMINAL PENALTY. (a) A freight forwarder
6-8 commits an offense if the person knowingly violates this Act.
6-9 (b) An offense under this section is a Class A misdemeanor.
6-10 SECTION 15. CIVIL PENALTY. A freight forwarder who
6-11 knowingly violates this Act or who knowingly fails to comply with a
6-12 rule adopted under this Act is liable for a civil penalty of not
6-13 less than $100 or more than $500 for each violation.
6-14 SECTION 16. SHIPPER'S EXPORT DECLARATIONS. (a) A customs
6-15 broker shall prepare and sign a shipper's export declaration that
6-16 is required to be filed under federal law for a shipment of
6-17 commodities, gold, or silver exported from this state.
6-18 (b) In this section, "customs broker" means a person
6-19 licensed by the United States Customs Service to act as a customs
6-20 house broker.
6-21 SECTION 17. EFFECTIVE DATE. This Act takes effect September
6-22 1, 1995, except that Section 2, as added by this Act, which
6-23 prohibits certain freight forwarders from operating in this state
6-24 without a license, takes effect January 1, 1996.
6-25 SECTION 18. EMERGENCY. The importance of this legislation
6-26 and the crowded condition of the calendars in both houses create an
6-27 emergency and an imperative public necessity that the
7-1 constitutional rule requiring bills to be read on three several
7-2 days in each house be suspended, and this rule is hereby suspended.