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