By Cuellar H.B. No. 1487
75R3706 JMM-F
A BILL TO BE ENTITLED
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. DEFINITIONS. In this Act:
1-6 (1) "Commissioner" means the commissioner of licensing
1-7 and regulation.
1-8 (2) "Department" means the Texas Department of
1-9 Licensing and Regulation.
1-10 (3) "Motor carrier" has the meaning assigned by 49
1-11 U.S.C. Section 13102.
1-12 (4) "Person" means an individual, corporation,
1-13 partnership, or association.
1-14 (5) "Transportation service provider" means a person,
1-15 other than a motor carrier, that holds itself out to the general
1-16 public to provide transportation of property for compensation and
1-17 in the ordinary course of its business:
1-18 (A) assembles and consolidates, or provides for
1-19 assembling and consolidating, a shipment;
1-20 (B) performs or provides for break-bulk and
1-21 distribution operations of a shipment;
1-22 (C) assumes responsibility for the land
1-23 transportation of property at any point from origin to destination;
1-24 and
2-1 (D) uses a motor or rail carrier for any part of
2-2 the transportation.
2-3 SECTION 2. REGISTRATION REQUIRED. A person who is not
2-4 subject to regulation as a freight forwarder under federal law by
2-5 the Surface Transportation Board may not operate as a
2-6 transportation service provider in this state without a certificate
2-7 of registration issued under this Act.
2-8 SECTION 3. REGISTRATION PROCEDURE. (a) A person seeking to
2-9 register under this Act as a transportation service provider must
2-10 submit to the department:
2-11 (1) an application on a form prescribed by the
2-12 commissioner; and
2-13 (2) a nonrefundable registration fee.
2-14 (b) The application form prescribed under this section must
2-15 require that an applicant include:
2-16 (1) the current and each previous business name of the
2-17 applicant, if the applicant is not an individual;
2-18 (2) the physical business address of the applicant;
2-19 (3) the type of business organization of the applicant
2-20 and the date the business was started or incorporated, if
2-21 applicable;
2-22 (4) the applicant's federal employer identification
2-23 number or social security number, as applicable; and
2-24 (5) if the applicant is a corporation, a list of
2-25 related domestic or foreign entities and the names and social
2-26 security numbers of the corporation's officers and shareholders.
2-27 (c) A certificate of registration is valid for two years
3-1 after the date the certificate is issued.
3-2 (d) To renew a certificate of registration, the registration
3-3 holder must submit to the department:
3-4 (1) an application for renewal on a form prescribed by
3-5 the commissioner; and
3-6 (2) a registration renewal fee.
3-7 (e) A registration holder may not transfer or assign a
3-8 certificate of registration issued under this Act.
3-9 SECTION 4. FEES. The Texas Commission of Licensing and
3-10 Regulation shall set the registration and renewal fees in amounts
3-11 reasonable and necessary to cover the cost of administering this
3-12 Act.
3-13 SECTION 5. TRANSPORTATION SERVICE PROVIDER FUND. The
3-14 department shall deposit fees collected under this Act to the
3-15 credit of the transportation service provider fund. Money in that
3-16 fund may be appropriated only to the department and only to
3-17 administer and enforce this Act.
3-18 SECTION 6. DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE
3-19 OF REGISTRATION. (a) The commissioner may deny, suspend, or
3-20 revoke a certificate of registration for a violation of this Act or
3-21 a rule adopted under this Act.
3-22 (b) The denial, suspension, or revocation of a certificate
3-23 of registration by the commissioner and the appeal from that action
3-24 are governed by the procedures for a contested case hearing under
3-25 Chapter 2001, Government Code.
3-26 SECTION 7. ADOPTION OF RULES. The commissioner shall adopt
3-27 rules necessary to implement this Act, including requirements for
4-1 the issuance, renewal, denial, suspension, and revocation of a
4-2 certificate of registration.
4-3 SECTION 8. QUALIFICATIONS. (a) An individual is not
4-4 eligible for a certificate of registration or must surrender an
4-5 existing certificate if:
4-6 (1) during the period the individual holds the
4-7 certificate of registration or during the 10-year period preceding
4-8 the date the certificate is issued, the individual has been
4-9 convicted of:
4-10 (A) a felony or a crime involving moral
4-11 turpitude under the laws of this state, any other state, or the
4-12 United States; or
4-13 (B) a crime under the laws of another country
4-14 that involves moral turpitude or would be a felony if committed in
4-15 the United States; or
4-16 (2) the individual owes delinquent taxes to any local,
4-17 state, or federal taxing entity.
4-18 (b) The department may refuse to grant a certificate of
4-19 registration to a person, other than an individual, or may suspend
4-20 or revoke the person's certificate if:
4-21 (1) the department determines that, during the period
4-22 the person holds the certificate or during the 10-year period
4-23 preceding the date the certificate is issued, an officer, director,
4-24 member, or shareholder of the person or of a person that owns
4-25 shares in the person has been convicted of:
4-26 (A) a felony or a crime involving moral
4-27 turpitude under the laws of this state, any other state, or the
5-1 United States;
5-2 (B) a crime under the laws of another country
5-3 that involves moral turpitude or that would be a felony if
5-4 committed in the United States; or
5-5 (C) fraud or misrepresentation; or
5-6 (2) the person owes delinquent taxes to any local,
5-7 state, or federal taxing entity.
5-8 SECTION 9. BOND. (a) A transportation service provider
5-9 that is registered under this Act shall post a bond in an amount
5-10 determined by the department with a qualified surety company doing
5-11 business in this state.
5-12 (b) The bond must be conditioned on compliance by the
5-13 transportation service provider with this Act and each rule adopted
5-14 under this Act.
5-15 SECTION 10. RECORDS. (a) A transportation service provider
5-16 shall maintain a record that contains for each shipment of property
5-17 the transportation service provider assumes responsibility for
5-18 transporting:
5-19 (1) the name of the shipper of the property;
5-20 (2) the type of property that is being transported;
5-21 (3) the destination point of the property that is
5-22 being transported;
5-23 (4) the name of the person receiving the property; and
5-24 (5) the name of the person transporting the property.
5-25 (b) The transportation service provider shall keep a copy of
5-26 a record required under this section until the fourth anniversary
5-27 of the date the property is transported.
6-1 SECTION 11. AUDIT. (a) The department may periodically
6-2 audit the business records of a transportation service provider
6-3 registered under this Act.
6-4 (b) For the purpose of carrying out this Act, the department
6-5 may:
6-6 (1) examine a record required to be maintained under
6-7 Section 10 of this Act or another book, record, paper, or object
6-8 that the department determines is necessary for conducting a
6-9 complete examination; or
6-10 (2) question, under oath, any person associated with
6-11 the transportation service provider's business, including an
6-12 officer, director, or employee of the transportation service
6-13 provider, or any person claiming the person was negatively affected
6-14 by an alleged violation of this Act by the transportation service
6-15 provider.
6-16 (c) If a person required by the department to submit to an
6-17 examination under this section refuses to permit the examination or
6-18 to answer any question authorized by this Act, the commissioner may
6-19 suspend the transportation service provider's certificate of
6-20 registration until the examination is completed.
6-21 SECTION 12. ENFORCEMENT. The commissioner, with the
6-22 assistance of the Department of Public Safety, may investigate a
6-23 violation of this Act or a rule adopted under this Act. The
6-24 commissioner or any law enforcement agency may file a complaint
6-25 with the district attorney of Travis County or with the prosecuting
6-26 attorney of the county in which a violation is alleged to have
6-27 occurred.
7-1 SECTION 13. COOPERATIVE AGREEMENTS. The department shall
7-2 cooperate with federal or state agencies in carrying out this Act.
7-3 SECTION 14. CRIMINAL PENALTY. (a) A transportation service
7-4 provider commits an offense if the person knowingly violates this
7-5 Act.
7-6 (b) An offense under this section is a Class A misdemeanor.
7-7 SECTION 15. CIVIL PENALTY. A transportation service
7-8 provider that knowingly violates this Act or knowingly fails to
7-9 comply with a rule adopted under this Act is liable for a civil
7-10 penalty of not less than $100 or more than $500 for each violation.
7-11 SECTION 16. POSTING OF CERTIFICATE REQUIRED. A registration
7-12 holder shall post the certificate of registration issued under this
7-13 Act in the person's place of business in a location visible to the
7-14 public.
7-15 SECTION 17. EFFECTIVE DATE. This Act takes effect September
7-16 1, 1997, except that Section 2 of this Act, which prohibits a
7-17 transportation service provider from operating in this state
7-18 without a certificate of registration, takes effect January 1,
7-19 1998.
7-20 SECTION 18. EMERGENCY. The importance of this legislation
7-21 and the crowded condition of the calendars in both houses create an
7-22 emergency and an imperative public necessity that the
7-23 constitutional rule requiring bills to be read on three several
7-24 days in each house be suspended, and this rule is hereby suspended.