1-1 By: Alexander, Siebert, et al. H.B. No. 1418
1-2 (Senate Sponsor - Sibley)
1-3 (In the Senate - Received from the House May 7, 1997;
1-4 May 8, 1997, read first time and referred to Committee on State
1-5 Affairs; May 18, 1997, reported adversely, with favorable Committee
1-6 Substitute by the following vote: Yeas 11, Nays 0; May 18, 1997,
1-7 sent to printer.)
1-8 COMMITTEE SUBSTITUTE FOR H.B. No. 1418 By: Nixon
1-9 A BILL TO BE ENTITLED
1-10 AN ACT
1-11 relating to the regulation of motor carriers of household goods;
1-12 providing a penalty.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Sections 3(a) and (e), Article 6675c, Revised
1-15 Statutes, are amended to read as follows:
1-16 (a) A motor carrier may not operate a commercial motor
1-17 vehicle, as defined by Section 548.001, Transportation Code, [140A,
1-18 Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
1-19 Texas Civil Statutes),] or a tow truck on a road or highway of this
1-20 state unless the carrier registers with the department under this
1-21 article.
1-22 (e) The department shall issue a certificate containing a
1-23 single registration number to a motor carrier, regardless of the
1-24 number of vehicles requiring registration the carrier operates.
1-25 The department shall issue a cab card as described by Section 5 of
1-26 this article for each vehicle requiring registration the motor
1-27 carrier operates. To avoid multiple registrations of a single
1-28 motor carrier, the department shall adopt simplified procedures for
1-29 the registration of motor carriers transporting household goods as
1-30 agents for carriers required to register under this article.
1-31 SECTION 2. Sections 4(a), (b), and (d), Article 6675c
1-32 Revised Statutes, are amended to read as follows:
1-33 (a) A motor carrier that is required to register under
1-34 Section 3 of this article shall maintain liability insurance in an
1-35 amount set by the department for each vehicle requiring
1-36 registration the carrier operates. The department by rule may set
1-37 the amount of liability insurance required at an amount that does
1-38 not exceed the amount required for a motor carrier under federal
1-39 regulations adopted under 49 U.S.C. Section 10927(a)(1). In
1-40 setting the amount the department shall consider:
1-41 (1) the class and size of the vehicle; and
1-42 (2) the type of persons or cargo being transported.
1-43 (b) A motor carrier required to register under Section 3 of
1-44 this article transporting household goods shall maintain cargo
1-45 insurance in the same amount required for a motor carrier
1-46 transporting household goods under federal law.
1-47 (d) A motor carrier that is required to register under
1-48 Section 3 of this article must file with the department proof of
1-49 insurance in the amounts required by Subsections (a) and (b) of
1-50 this section, or proof of financial responsibility as described by
1-51 Subsection (c) of this section, in a form prescribed by the
1-52 department. The form must be filed:
1-53 (1) at the time of the initial registration;
1-54 (2) at the time of a subsequent registration, if the
1-55 motor carrier was required to be continuously registered under this
1-56 article and the carrier failed to maintain continuous registration;
1-57 (3) at the time a motor carrier changes insurers; and
1-58 (4) at the time a motor carrier changes ownership, as
1-59 determined by rules adopted by the department.
1-60 SECTION 3. Section 7(a), Article 6675c, Revised Statutes, is
1-61 amended to read as follows:
1-62 (a) The department may suspend or revoke a registration
1-63 issued under this article if:
1-64 (1) a motor carrier fails to maintain insurance or
2-1 proof of financial responsibility as required by Section 4(a) or
2-2 (b) or Section 8(c)(5) of this article;
2-3 (2) a motor carrier fails to keep proof of insurance
2-4 in the cab of each vehicle as required by Section 4(e) of this
2-5 article;
2-6 (3) a motor carrier fails to register a vehicle
2-7 requiring registration; or
2-8 (4) a motor carrier knowingly provides false
2-9 information on any form filed with the department under this
2-10 section.
2-11 SECTION 4. Section 8, Article 6675c, Revised Statutes, is
2-12 amended by amending Subsections (c) and (f) and adding Subsection
2-13 (g) to read as follows:
2-14 (c) The department shall adopt rules to protect consumers
2-15 who use the services of a motor carrier [who is required to
2-16 register under Section 3 of this article and] who is transporting
2-17 household goods for compensation [that are at least as stringent as
2-18 the corresponding provisions of 49 C.F.R. Part 1056. The
2-19 department may adopt rules under this subsection that are more
2-20 stringent than the corresponding federal provisions. A motor
2-21 carrier transporting household goods shall list a place of business
2-22 with a street address in this state and the carrier's registration
2-23 number issued under this article in any print advertising published
2-24 in this state]. The department may adopt all such rules as are
2-25 necessary to ensure that customers of household goods movers are
2-26 protected from deceptive or unfair practices and unreasonably
2-27 hazardous activities on the part of the movers. Such rules shall
2-28 [may] include but are not limited to measures to:
2-29 (1) establish a formal process for resolving disputes
2-30 over fees and damages [apart from the method of mediation in
2-31 Subsection (f) of this section];
2-32 (2) require a carrier to indicate clearly to consumers
2-33 whether estimates are binding or nonbinding and disclose the
2-34 maximum price a consumer could be required to pay; [and]
2-35 (3) create a centralized process for making complaints
2-36 about a carrier which also allows consumers to inquire about a
2-37 carrier's complaint record;
2-38 (4) require a motor carrier transporting household
2-39 goods to list a place of business with a street address in this
2-40 state and the carrier's registration number issued under this
2-41 article in any print advertising published in this state;
2-42 (5) require motor carriers who are required to
2-43 register under this section to file proof of cargo insurance in
2-44 amounts to be determined by the department that do not exceed the
2-45 amount required for a motor carrier transporting household goods
2-46 under federal law and shall allow alternative proof of financial
2-47 responsibility, through surety bonds, letters of credit, or other
2-48 means satisfactory to the department, for contractual obligations
2-49 to customers that do not exceed $5,000 aggregate loss or damage to
2-50 total cargo shipped at any one time; and
2-51 (6) require motor carriers who are required to
2-52 register under this section to conspicuously advise consumers
2-53 concerning limitation of any carrier liability for loss or damage
2-54 as determined under Subdivision (7); and
2-55 (7) determine reasonable provisions governing
2-56 limitation of liability for loss or damage of motor carriers
2-57 required to register under this section, not to exceed 60 cents per
2-58 pound per article.
2-59 (f) The department shall appoint a rules advisory committee
2-60 consisting of representatives of motor carriers transporting
2-61 household goods using small, medium, and large equipment, the
2-62 public, and the department. Members of the committee serve at the
2-63 pleasure of the department and are not entitled to compensation or
2-64 reimbursement of expenses for serving on the committee. The
2-65 department may adopt rules to govern the operations of the advisory
2-66 committee. The committee shall:
2-67 (1) examine the rules adopted by the department under
2-68 Subsection (c) of this section and make recommendations to the
2-69 department on modernizing and streamlining the rules;
3-1 (2) conduct a study of the feasibility and necessity
3-2 of requiring any vehicle liability insurance for household goods
3-3 carriers required to register under this section; and
3-4 (3) pursuant to Subsection (c)(7) of this section,
3-5 recommend a maximum level of liability limitation that does not
3-6 exceed 60 cents per pound. [All collective associations of motor
3-7 carriers transporting household goods, or agents thereof, which
3-8 have received approval for collective ratemaking agreements under
3-9 Section 9(d) of this article shall provide a method of mediation
3-10 for consumers to receive resolution through mediation of disputes
3-11 over fees, damages, and services. All costs associated with such
3-12 mediation shall be borne by the motor carriers, the agents thereof,
3-13 or the association. All carriers and agents who are parties to
3-14 collective agreements approved under Section 9(d) of this article
3-15 must participate in consumer complaint resolution, including
3-16 participation in the mediation process and advertisement of the
3-17 availability of mediation in all contracts or estimate proposals.
3-18 Any complaint mediation that is not resolved to the mutual
3-19 agreement of all parties shall be reported to the department.
3-20 Consumers shall be advised of their rights to seek resolution
3-21 directly from the department. The department shall adopt rules
3-22 that ensure such notification is available to consumers in a form
3-23 and manner consistent with its duties under Subsection (c) of this
3-24 section.]
3-25 (g) The department shall require motor carriers who are not
3-26 required to register under Section 3 of this article to register
3-27 their operations before transporting household goods for
3-28 compensation. The department shall determine the forms and
3-29 procedures for such registration. The department shall charge a
3-30 motor carrier who registers under this subsection a fee that does
3-31 not exceed the total of the fees imposed by Section 3 of this
3-32 article.
3-33 SECTION 5. Section 10, Article 6675c, Revised Statutes, is
3-34 amended to read as follows:
3-35 Sec. 10. Criminal penalty. (a) A person commits an offense
3-36 if the person fails to:
3-37 (1) register as required by Section 3 or 8 of this
3-38 article;
3-39 (2) maintain insurance or proof of financial
3-40 responsibility as required by Section 4 or 8 of this article; or
3-41 (3) keep a cab card in the cab of a vehicle as
3-42 required by Section 5(a) of this article.
3-43 (b) A person commits an offense if the person solicits the
3-44 transportation of household goods for compensation without being
3-45 registered as required by Section 3 or 8 of this article.
3-46 (c) An offense under this section is a Class C misdemeanor.
3-47 SECTION 6. Section 1(1), Article 6675d, Revised Statutes, is
3-48 amended to read as follows:
3-49 (1) "Commercial motor vehicle" means a motor vehicle
3-50 described by Section 548.001(1), Transportation Code [has the
3-51 meaning assigned by Section 140A, Uniform Act regulating Traffic on
3-52 Highways (Article 6701d, Vernon's Texas Civil Statutes)].
3-53 SECTION 7. Section 5, Article 6675d, Revised Statutes, is
3-54 amended by adding Subsection (c) to read as follows:
3-55 (c) A rule adopted by the director under this article
3-56 relating to hours of service, an operator's record of duty status,
3-57 or an operator's daily log, for operations outside a 150-mile
3-58 radius of the normal work-reporting location, also applies to and
3-59 must be complied with by a motor carrier, as defined by Section 1,
3-60 Article 6675c, Revised Statutes, of household goods not using a
3-61 commercial motor vehicle, as defined by Section 548.001,
3-62 Transportation Code.
3-63 SECTION 8. The study required by Section 8(f)(2), Article
3-64 6675c, Revised Statutes, as added by this Act, must be completed
3-65 not later than July 1, 1998, and any resulting rules shall be made
3-66 to take effect January 1, 1999.
3-67 SECTION 9. This Act takes effect September 1, 1997.
3-68 SECTION 10. The importance of this legislation and the
3-69 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.
4-4 * * * * *