1-1 AN ACT
1-2 relating to the regulation of motor carriers of household goods;
1-3 providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 3(a) and (e), Article 6675c, Revised
1-6 Statutes, are amended to read as follows:
1-7 (a) A motor carrier may not operate a commercial motor
1-8 vehicle, as defined by Section 548.001, Transportation Code, [140A,
1-9 Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
1-10 Texas Civil Statutes),] or a tow truck on a road or highway of this
1-11 state unless the carrier registers with the department under this
1-12 article.
1-13 (e) The department shall issue a certificate containing a
1-14 single registration number to a motor carrier, regardless of the
1-15 number of vehicles requiring registration the carrier operates.
1-16 The department shall issue a cab card as described by Section 5 of
1-17 this article for each vehicle requiring registration the motor
1-18 carrier operates. To avoid multiple registrations of a single
1-19 motor carrier, the department shall adopt simplified procedures for
1-20 the registration of motor carriers transporting household goods as
1-21 agents for carriers required to register under this article.
1-22 SECTION 2. Sections 4(a), (b), and (d), Article 6675c,
1-23 Revised Statutes, are amended to read as follows:
1-24 (a) A motor carrier that is required to register under
2-1 Section 3 of this article shall maintain liability insurance in an
2-2 amount set by the department for each vehicle requiring
2-3 registration the carrier operates. The department by rule may set
2-4 the amount of liability insurance required at an amount that does
2-5 not exceed the amount required for a motor carrier under federal
2-6 regulations adopted under 49 U.S.C. Section 10927(a)(1). In
2-7 setting the amount the department shall consider:
2-8 (1) the class and size of the vehicle; and
2-9 (2) the type of persons or cargo being transported.
2-10 (b) A motor carrier required to register under Section 3 of
2-11 this article transporting household goods shall maintain cargo
2-12 insurance in the same amount required for a motor carrier
2-13 transporting household goods under federal law.
2-14 (d) A motor carrier that is required to register under
2-15 Section 3 of this article must file with the department proof of
2-16 insurance in the amounts required by Subsections (a) and (b) of
2-17 this section, or proof of financial responsibility as described by
2-18 Subsection (c) of this section, in a form prescribed by the
2-19 department. The form must be filed:
2-20 (1) at the time of the initial registration;
2-21 (2) at the time of a subsequent registration, if the
2-22 motor carrier was required to be continuously registered under this
2-23 article and the carrier failed to maintain continuous registration;
2-24 (3) at the time a motor carrier changes insurers; and
2-25 (4) at the time a motor carrier changes ownership, as
2-26 determined by rules adopted by the department.
2-27 SECTION 3. Section 7(a), Article 6675c, Revised Statutes, is
3-1 amended to read as follows:
3-2 (a) The department may suspend or revoke a registration
3-3 issued under this article if:
3-4 (1) a motor carrier fails to maintain insurance or
3-5 proof of financial responsibility as required by Section 4(a) or
3-6 (b) or Section 8(c)(5) of this article;
3-7 (2) a motor carrier fails to keep proof of insurance
3-8 in the cab of each vehicle as required by Section 4(e) of this
3-9 article;
3-10 (3) a motor carrier fails to register a vehicle
3-11 requiring registration; or
3-12 (4) a motor carrier knowingly provides false
3-13 information on any form filed with the department under this
3-14 section.
3-15 SECTION 4. Section 8, Article 6675c, Revised Statutes, is
3-16 amended by amending Subsections (c) and (f) and adding Subsection
3-17 (g) to read as follows:
3-18 (c) The department shall adopt rules to protect consumers
3-19 who use the services of a motor carrier [who is required to
3-20 register under Section 3 of this article and] who is transporting
3-21 household goods for compensation [that are at least as stringent as
3-22 the corresponding provisions of 49 C.F.R. Part 1056. The
3-23 department may adopt rules under this subsection that are more
3-24 stringent than the corresponding federal provisions. A motor
3-25 carrier transporting household goods shall list a place of business
3-26 with a street address in this state and the carrier's registration
3-27 number issued under this article in any print advertising published
4-1 in this state]. The department may adopt all such rules as are
4-2 necessary to ensure that customers of household goods movers are
4-3 protected from deceptive or unfair practices and unreasonably
4-4 hazardous activities on the part of the movers. Such rules shall
4-5 [may] include but are not limited to measures to:
4-6 (1) establish a formal process for resolving disputes
4-7 over fees and damages [apart from the method of mediation in
4-8 Subsection (f) of this section];
4-9 (2) require a carrier to indicate clearly to consumers
4-10 whether estimates are binding or nonbinding and disclose the
4-11 maximum price a consumer could be required to pay; [and]
4-12 (3) create a centralized process for making complaints
4-13 about a carrier which also allows consumers to inquire about a
4-14 carrier's complaint record;
4-15 (4) require a motor carrier transporting household
4-16 goods to list a place of business with a street address in this
4-17 state and the carrier's registration number issued under this
4-18 article in any print advertising published in this state;
4-19 (5) require motor carriers who are required to
4-20 register under this section to file proof of cargo insurance in
4-21 amounts to be determined by the department that do not exceed the
4-22 amount required for a motor carrier transporting household goods
4-23 under federal law and shall allow alternative proof of financial
4-24 responsibility, through surety bonds, letters of credit, or other
4-25 means satisfactory to the department, for contractual obligations
4-26 to customers that do not exceed $5,000 aggregate loss or damage to
4-27 total cargo shipped at any one time;
5-1 (6) require motor carriers who are required to
5-2 register under this section to conspicuously advise consumers
5-3 concerning limitation of any carrier liability for loss or damage
5-4 as determined under Subdivision (7); and
5-5 (7) determine reasonable provisions governing
5-6 limitation of liability for loss or damage of motor carriers
5-7 required to register under this section, not to exceed 60 cents per
5-8 pound per article.
5-9 (f) The department shall appoint a rules advisory committee
5-10 consisting of representatives of motor carriers transporting
5-11 household goods using small, medium, and large equipment, the
5-12 public, and the department. Members of the committee serve at the
5-13 pleasure of the department and are not entitled to compensation or
5-14 reimbursement of expenses for serving on the committee. The
5-15 department may adopt rules to govern the operations of the advisory
5-16 committee. The committee shall:
5-17 (1) examine the rules adopted by the department under
5-18 Subsection (c) of this section and make recommendations to the
5-19 department on modernizing and streamlining the rules;
5-20 (2) conduct a study of the feasibility and necessity
5-21 of requiring any vehicle liability insurance for household goods
5-22 carriers required to register under this section; and
5-23 (3) pursuant to Subsection (c)(7) of this section,
5-24 recommend a maximum level of liability limitation that does not
5-25 exceed 60 cents per pound. [All collective associations of motor
5-26 carriers transporting household goods, or agents thereof, which
5-27 have received approval for collective ratemaking agreements under
6-1 Section 9(d) of this article shall provide a method of mediation
6-2 for consumers to receive resolution through mediation of disputes
6-3 over fees, damages, and services. All costs associated with such
6-4 mediation shall be borne by the motor carriers, the agents thereof,
6-5 or the association. All carriers and agents who are parties to
6-6 collective agreements approved under Section 9(d) of this article
6-7 must participate in consumer complaint resolution, including
6-8 participation in the mediation process and advertisement of the
6-9 availability of mediation in all contracts or estimate proposals.
6-10 Any complaint mediation that is not resolved to the mutual
6-11 agreement of all parties shall be reported to the department.
6-12 Consumers shall be advised of their rights to seek resolution
6-13 directly from the department. The department shall adopt rules
6-14 that ensure such notification is available to consumers in a form
6-15 and manner consistent with its duties under Subsection (c) of this
6-16 section.]
6-17 (g) The department shall require motor carriers who are not
6-18 required to register under Section 3 of this article to register
6-19 their operations before transporting household goods for
6-20 compensation. The department shall determine the forms and
6-21 procedures for such registration. The department shall charge a
6-22 motor carrier who registers under this subsection a fee that does
6-23 not exceed the total of the fees imposed by Section 3 of this
6-24 article.
6-25 SECTION 5. Section 10, Article 6675c, Revised Statutes, is
6-26 amended to read as follows:
6-27 Sec. 10. Criminal penalty. (a) A person commits an offense
7-1 if the person fails to:
7-2 (1) register as required by Section 3 or 8 of this
7-3 article;
7-4 (2) maintain insurance or proof of financial
7-5 responsibility as required by Section 4 or 8 of this article; or
7-6 (3) keep a cab card in the cab of a vehicle as
7-7 required by Section 5(a) of this article.
7-8 (b) A person commits an offense if the person solicits the
7-9 transportation of household goods for compensation without being
7-10 registered as required by Section 3 or 8 of this article.
7-11 (c) An offense under this section is a Class C misdemeanor.
7-12 SECTION 6. Section 1(1), Article 6675d, Revised Statutes, is
7-13 amended to read as follows:
7-14 (1) "Commercial motor vehicle" means a motor vehicle
7-15 described by Section 548.001(1), Transportation Code [has the
7-16 meaning assigned by Section 140A, Uniform Act Regulating Traffic on
7-17 Highways (Article 6701d, Vernon's Texas Civil Statutes)].
7-18 SECTION 7. Section 5, Article 6675d, Revised Statutes, is
7-19 amended by adding Subsection (c) to read as follows:
7-20 (c) A rule adopted by the director under this article
7-21 relating to hours of service, an operator's record of duty status,
7-22 or an operator's daily log, for operations outside a 150-mile
7-23 radius of the normal work-reporting location, also applies to and
7-24 must be complied with by a motor carrier, as defined by Section 1,
7-25 Article 6675c, Revised Statutes, of household goods not using a
7-26 commercial motor vehicle, as defined by Section 548.001,
7-27 Transportation Code.
8-1 SECTION 8. The study required by Section 8(f)(2), Article
8-2 6675c, Revised Statutes, as added by this Act, must be completed
8-3 not later than July 1, 1998, and any resulting rules shall be made
8-4 to take effect January 1, 1999.
8-5 SECTION 9. This Act takes effect September 1, 1997.
8-6 SECTION 10. The importance of this legislation and the
8-7 crowded condition of the calendars in both houses create an
8-8 emergency and an imperative public necessity that the
8-9 constitutional rule requiring bills to be read on three several
8-10 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1418 was passed by the House on May
6, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1418 on May 24, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1418 was passed by the Senate, with
amendments, on May 21, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor