1-1 AN ACT
1-2 relating to the regulation of certain transportation service
1-3 providers; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. PURPOSE; LEGISLATIVE INTENT. The purpose of this
1-6 Act is to protect the health, safety, and welfare of the people of
1-7 this state through the registration of transportation service
1-8 providers and freight forwarders that operate in this state. This
1-9 Act is not intended to regulate the rates, routes, or services
1-10 provided by transportation service providers or freight forwarders.
1-11 SECTION 2. DEFINITIONS. In this Act:
1-12 (1) "Commissioner" means the commissioner of licensing
1-13 and regulation.
1-14 (2) "Department" means the Texas Department of
1-15 Licensing and Regulation.
1-16 (3) "Motor carrier" has the meaning assigned by 49
1-17 U.S.C. Section 13102.
1-18 (4) "Person" means an individual, corporation,
1-19 partnership, or association.
1-20 (5) "Transportation service provider" or "freight
1-21 forwarder" means a person, other than a motor carrier, that holds
1-22 itself out to the general public to provide transportation in this
1-23 state only of property for compensation and in the ordinary course
2-1 of its business:
2-2 (A) assembles and consolidates, or provides for
2-3 assembling and consolidating, a shipment;
2-4 (B) performs or provides for break-bulk and
2-5 distribution operations of a shipment;
2-6 (C) assumes responsibility for the land
2-7 transportation of property at any point from origin to destination;
2-8 and
2-9 (D) uses a motor or rail carrier for any part of
2-10 the transportation.
2-11 SECTION 3. REGISTRATION REQUIRED; EXCEPTIONS. (a) A person
2-12 may not operate as a transportation service provider or freight
2-13 forwarder in this state without a certificate of registration
2-14 issued under this Act.
2-15 (b) This Act does not apply to a person that acts as a
2-16 licensed customs broker as defined by 19 U.S.C. Section 1641.
2-17 (c) This Act does not apply to a person that is engaged in
2-18 the wholesale distribution of alcoholic beverages and that operates
2-19 trucks and delivery vehicles under Chapter 19, 20, 21, 64, or 65,
2-20 Alcoholic Beverage Code.
2-21 (d) This Act does not apply to an ocean freight forwarder as
2-22 defined by 46 U.S.C. Section 1702.
2-23 SECTION 4. REGISTRATION PROCEDURE. (a) A person seeking to
2-24 register under this Act as a transportation service provider must
2-25 submit to the department:
3-1 (1) an application on a form prescribed by the
3-2 commissioner; and
3-3 (2) a nonrefundable registration fee.
3-4 (b) The application form prescribed under this section must
3-5 require that an applicant include:
3-6 (1) the current and each previous business name of the
3-7 applicant, if the applicant is not an individual;
3-8 (2) the physical business address of the applicant;
3-9 (3) the type of business organization of the applicant
3-10 and the date the business was started or incorporated, if
3-11 applicable;
3-12 (4) the applicant's federal employer identification
3-13 number or social security number, as applicable; and
3-14 (5) if the applicant is a corporation, a list of
3-15 related domestic or foreign entities and the names and social
3-16 security numbers of the corporation's officers and shareholders.
3-17 (c) A certificate of registration is valid for two years
3-18 after the date the certificate is issued.
3-19 (d) To renew a certificate of registration, the registration
3-20 holder must submit to the department:
3-21 (1) an application for renewal on a form prescribed by
3-22 the commissioner; and
3-23 (2) a registration renewal fee.
3-24 (e) A registration holder may not transfer or assign a
3-25 certificate of registration issued under this Act.
4-1 SECTION 5. FEES. The Texas Commission of Licensing and
4-2 Regulation shall set the registration and renewal fees in amounts
4-3 reasonable and necessary to cover the cost of administering this
4-4 Act.
4-5 SECTION 6. TRANSPORTATION SERVICE PROVIDER FUND. The
4-6 department shall deposit fees collected under this Act to the
4-7 credit of the transportation service provider fund. Money in that
4-8 fund may be appropriated only to the department and only to
4-9 administer and enforce this Act.
4-10 SECTION 7. DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE
4-11 OF REGISTRATION. (a) The commissioner may deny, suspend, or
4-12 revoke a certificate of registration for a violation of this Act or
4-13 a rule adopted under this Act.
4-14 (b) The denial, suspension, or revocation of a certificate
4-15 of registration by the commissioner and the appeal from that action
4-16 are governed by the procedures for a contested case hearing under
4-17 Chapter 2001, Government Code.
4-18 SECTION 8. ADOPTION OF RULES. The commissioner shall adopt
4-19 rules necessary to implement this Act, including requirements for
4-20 the issuance, renewal, denial, suspension, and revocation of a
4-21 certificate of registration.
4-22 SECTION 9. QUALIFICATIONS. (a) An individual is not
4-23 eligible for a certificate of registration or must surrender an
4-24 existing certificate if:
4-25 (1) during the period the individual holds the
5-1 certificate of registration or during the 10-year period preceding
5-2 the date the certificate is issued, the individual has been
5-3 convicted of a crime under Chapter 481 or 483, Health and Safety
5-4 Code, or laws containing substantially the same elements under the
5-5 laws of any other state, the United States, or another country; or
5-6 (2) the individual owes delinquent taxes to any local,
5-7 state, or federal taxing entity.
5-8 (b) The department may refuse to grant a certificate of
5-9 registration to a person, other than an individual, or may suspend
5-10 or revoke the person's certificate if:
5-11 (1) the department determines that, during the period
5-12 the person holds the certificate or during the 10-year period
5-13 preceding the date the certificate is issued, an officer, director,
5-14 member, or shareholder of the person or of a person that owns
5-15 shares in the person has been convicted of a crime under Chapter
5-16 481 or 483, Health and Safety Code, or laws containing
5-17 substantially the same elements under the laws of any other state,
5-18 the United States, or another country; or
5-19 (2) the person owes delinquent taxes to any local,
5-20 state, or federal taxing entity.
5-21 SECTION 10. RECORDS. (a) A transportation service provider
5-22 shall maintain a record that contains for each shipment of property
5-23 the transportation service provider assumes responsibility for
5-24 transporting:
5-25 (1) the name of the shipper of the property;
6-1 (2) the type of property that is being transported;
6-2 (3) the destination point of the property that is
6-3 being transported;
6-4 (4) the name of the person receiving the property; and
6-5 (5) the name of the person transporting the property.
6-6 (b) The transportation service provider shall keep a copy of
6-7 a record required under this section until the fourth anniversary
6-8 of the date the property is transported.
6-9 SECTION 11. AUDIT. (a) The department may periodically
6-10 audit the business records of a transportation service provider
6-11 registered under this Act.
6-12 (b) For the purpose of carrying out this Act, the department
6-13 may:
6-14 (1) examine a record required to be maintained under
6-15 Section 10 of this Act or another book, record, paper, or object
6-16 that the department determines is necessary for conducting a
6-17 complete examination; or
6-18 (2) question, under oath, any person associated with
6-19 the business, including an officer, director, or employee of the
6-20 transportation service provider, or any person claiming the person
6-21 was negatively affected by an alleged violation of this Act by the
6-22 transportation service provider.
6-23 (c) If a person required by the department to submit to an
6-24 examination under this section refuses to permit the examination or
6-25 to answer any question authorized by this Act, the commissioner may
7-1 suspend the transportation service provider's certificate of
7-2 registration until the examination is completed.
7-3 SECTION 12. ENFORCEMENT. The commissioner, with the
7-4 assistance of the Department of Public Safety, may investigate a
7-5 violation of this Act or a rule adopted under this Act. The
7-6 commissioner or any law enforcement agency may file a complaint
7-7 with the district attorney of Travis County or with the prosecuting
7-8 attorney of the county in which a violation is alleged to have
7-9 occurred.
7-10 SECTION 13. COOPERATIVE AGREEMENTS. The department shall
7-11 cooperate with federal or state agencies in carrying out this Act.
7-12 SECTION 14. CRIMINAL PENALTY. (a) A transportation service
7-13 provider commits an offense if the person knowingly violates this
7-14 Act.
7-15 (b) An offense under this section is a Class A misdemeanor.
7-16 SECTION 15. CIVIL PENALTY. A transportation service
7-17 provider that knowingly violates this Act or knowingly fails to
7-18 comply with a rule adopted under this Act is liable for a civil
7-19 penalty of not less than $100 or more than $500 for each violation.
7-20 SECTION 16. POSTING OF CERTIFICATE REQUIRED. A registration
7-21 holder shall post the certificate of registration issued under this
7-22 Act in the person's place of business in a location visible to the
7-23 public.
7-24 SECTION 17. EFFECTIVE DATE. This Act takes effect September
7-25 1, 1997, except that Section 3 of this Act, which prohibits a
8-1 transportation service provider from operating in this state
8-2 without a certificate of registration, and Section 14 of this Act
8-3 take effect January 1, 1998.
8-4 SECTION 18. EMERGENCY. The importance of this legislation
8-5 and the crowded condition of the calendars in both houses create an
8-6 emergency and an imperative public necessity that the
8-7 constitutional rule requiring bills to be read on three several
8-8 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. 1487 was passed by the House on April
25, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1487 on May 14, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1487 was passed by the Senate, with
amendments, on May 12, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor