SRC-MAX H.B. 1487 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1487
By: Cuellar (Truan)
International Relations Trade & Technology
5-5-97
Engrossed


DIGEST 

Currently, many freight forwarders in Texas are not registered.  There are
concerns that freighter forwarders operating near the U.S.-Mexico border
may be involved in drug smuggling and other illegal activities.  This bill
requires freight forwarders to register with the Commissioner of Licensing
and Regulation. 

PURPOSE

As proposed, H.B. 1487 sets forth provisions regarding the regulation of
certain transportation service providers and provides penalties.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of licensing and
regulation in SECTION 8 of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. PURPOSE; LEGISLATIVE INTENT.  Sets forth the purpose of this
Act regarding the registration of transportation service providers and
freight forwarders that operate in this state. Provides that this Act is
not intended to regulate the rates, routes, or service provided by
transportation service providers or freight forwarders. 

SECTION 2. DEFINITIONS.  Defines "commissioner," "department," "motor
carrier" "person," and "transportation service provider" or "freight
forwarder."   

SECTION 3. REGISTRATION REQUIRED; EXCEPTIONS. Prohibits a person from
operating as a transportation service provider or freight forwarder in
this state without a certificate of registration issued under this Act.
Provides that this section does not apply to certain persons. 

SECTION 4. REGISTRATION PROCEDURE.  Requires a person seeking to register
under this Act as a transportation service provider to submit an
application and a certain fee to the Texas Department of Licensing and
Regulation (department).  Requires the application form prescribed under
this section to require an applicant to include certain information.
Provides that a certificate for registration is valid for two years after
the date the certificate is issued.  Requires the registration holder to
submit certain information to the department to renew a certificate of
registration. Prohibits a registration holder from transferring or
assigning a certificate of registration issued under this Act.  
SECTION 5. FEES.  Requires the Texas Commission of Licensing and
Regulation to set the registration and renewal fees in amounts reasonable
and necessary to cover the cost of administering this Act.   

SECTION 6. TRANSPORTATION SERVICE PROVIDER FUND.  Requires the department
to deposit fees collected under this Act to the credit of the
transportation service provider fund. Authorizes the money in that fund to
be appropriated only to the department and only to administer and enforce
this Act. 

SECTION 7. DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE OF
REGISTRATION.  Set forth provisions regarding the commissioner of
licensing and regulation's (commissioner) authorization to deny, suspend,
or revoke a certificate of registration for certain violations. 

SECTION 8. ADOPTION OF RULES.  Requires the commissioner to adopt rules
necessary to implement this Act, including requirements for the issuance,
renewal, denial, suspension, and revocation of a certificate of
registration. 

SECTION 9. QUALIFICATIONS.  Provides that an individual is not eligible
for a certificate of registration or must surrender an existing
certificate under certain conditions.   

SECTION 10. RECORDS.  Sets forth provisions under which a transportation
service provider is required to maintain certain records.   

SECTION 11. AUDIT.  Sets forth provisions regarding the audit of the
business records of a transportation service provider by the department.  

SECTION 12. ENFORCEMENT.  Sets forth provisions regarding the enforcement
of this Act by the commissioner. 

SECTION 13. COOPERATIVE AGREEMENTS.  Requires the department to cooperate
with federal or state agencies in carrying out this Act. 

SECTION 14. CRIMINAL PENALTY.  Provides that a person commits a Class A
misdemeanor if a person knowingly violates this Act. 

SECTION 15. CIVIL PENALTY.  Sets forth a civil penalty for a person who
violates this Act. 

SECTION 16. POSTING OF CERTIFICATE REQUIRED.  Requires a registration
holder to post the certificate or registration issued under this Act in
the person's place of business in a location visible to the public.   

SECTION 17. Effective date: September 1, 1997.  
  Effective date of SECTIONS 3 and 14:  January 1, 1998.

SECTION 18. Emergency clause.