1-1 By: Cuellar (Senate Sponsor - Truan) H.B. No. 1487 1-2 (In the Senate - Received from the House April 27, 1997; 1-3 April 29, 1997, read first time and referred to Committee on State 1-4 Affairs; May 2, 1997, rereferred to Committee on International 1-5 Relations, Trade, and Technology; May 9, 1997, reported favorably, 1-6 as amended, by the following vote: Yeas 6, Nays 0; May 9, 1997, 1-7 sent to printer.) 1-8 COMMITTEE AMENDMENT NO. 1 By: Truan 1-9 Amend H.B. No. 1487 as follows: 1-10 (1) On page 1, line 55, before "customs", insert 1-11 "licensed". 1-12 (2) On page 1, between lines 59 and 60, insert the 1-13 following: 1-14 "(d) This Act does not apply to an ocean freight forwarded 1-15 as defined by 46 U.S.C. Section 1702. 1-16 A BILL TO BE ENTITLED 1-17 AN ACT 1-18 relating to the regulation of certain transportation service 1-19 providers; providing penalties. 1-20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-21 SECTION 1. PURPOSE; LEGISLATIVE INTENT. The purpose of this 1-22 Act is to protect the health, safety, and welfare of the people of 1-23 this state through the registration of transportation service 1-24 providers and freight forwarders that operate in this state. This 1-25 Act is not intended to regulate the rates, routes, or services 1-26 provided by transportation service providers or freight forwarders. 1-27 SECTION 2. DEFINITIONS. In this Act: 1-28 (1) "Commissioner" means the commissioner of licensing 1-29 and regulation. 1-30 (2) "Department" means the Texas Department of 1-31 Licensing and Regulation. 1-32 (3) "Motor carrier" has the meaning assigned by 49 1-33 U.S.C. Section 13102. 1-34 (4) "Person" means an individual, corporation, 1-35 partnership, or association. 1-36 (5) "Transportation service provider" or "freight 1-37 forwarder" means a person, other than a motor carrier, that holds 1-38 itself out to the general public to provide transportation in this 1-39 state only of property for compensation and in the ordinary course 1-40 of its business: 1-41 (A) assembles and consolidates, or provides for 1-42 assembling and consolidating, a shipment; 1-43 (B) performs or provides for break-bulk and 1-44 distribution operations of a shipment; 1-45 (C) assumes responsibility for the land 1-46 transportation of property at any point from origin to destination; 1-47 and 1-48 (D) uses a motor or rail carrier for any part of 1-49 the transportation. 1-50 SECTION 3. REGISTRATION REQUIRED; EXCEPTIONS. (a) A person 1-51 may not operate as a transportation service provider or freight 1-52 forwarder in this state without a certificate of registration 1-53 issued under this Act. 1-54 (b) This Act does not apply to a person that acts as a 1-55 customs broker as defined by 19 U.S.C. Section 1641. 1-56 (c) This Act does not apply to a person that is engaged in 1-57 the wholesale distribution of alcoholic beverages and that operates 1-58 trucks and delivery vehicles under Chapter 19, 20, 21, 64, or 65, 1-59 Alcoholic Beverage Code. 1-60 SECTION 4. REGISTRATION PROCEDURE. (a) A person seeking to 1-61 register under this Act as a transportation service provider must 1-62 submit to the department: 1-63 (1) an application on a form prescribed by the 1-64 commissioner; and 2-1 (2) a nonrefundable registration fee. 2-2 (b) The application form prescribed under this section must 2-3 require that an applicant include: 2-4 (1) the current and each previous business name of the 2-5 applicant, if the applicant is not an individual; 2-6 (2) the physical business address of the applicant; 2-7 (3) the type of business organization of the applicant 2-8 and the date the business was started or incorporated, if 2-9 applicable; 2-10 (4) the applicant's federal employer identification 2-11 number or social security number, as applicable; and 2-12 (5) if the applicant is a corporation, a list of 2-13 related domestic or foreign entities and the names and social 2-14 security numbers of the corporation's officers and shareholders. 2-15 (c) A certificate of registration is valid for two years 2-16 after the date the certificate is issued. 2-17 (d) To renew a certificate of registration, the registration 2-18 holder must submit to the department: 2-19 (1) an application for renewal on a form prescribed by 2-20 the commissioner; and 2-21 (2) a registration renewal fee. 2-22 (e) A registration holder may not transfer or assign a 2-23 certificate of registration issued under this Act. 2-24 SECTION 5. FEES. The Texas Commission of Licensing and 2-25 Regulation shall set the registration and renewal fees in amounts 2-26 reasonable and necessary to cover the cost of administering this 2-27 Act. 2-28 SECTION 6. TRANSPORTATION SERVICE PROVIDER FUND. The 2-29 department shall deposit fees collected under this Act to the 2-30 credit of the transportation service provider fund. Money in that 2-31 fund may be appropriated only to the department and only to 2-32 administer and enforce this Act. 2-33 SECTION 7. DENIAL, SUSPENSION, OR REVOCATION OF CERTIFICATE 2-34 OF REGISTRATION. (a) The commissioner may deny, suspend, or 2-35 revoke a certificate of registration for a violation of this Act or 2-36 a rule adopted under this Act. 2-37 (b) The denial, suspension, or revocation of a certificate 2-38 of registration by the commissioner and the appeal from that action 2-39 are governed by the procedures for a contested case hearing under 2-40 Chapter 2001, Government Code. 2-41 SECTION 8. ADOPTION OF RULES. The commissioner shall adopt 2-42 rules necessary to implement this Act, including requirements for 2-43 the issuance, renewal, denial, suspension, and revocation of a 2-44 certificate of registration. 2-45 SECTION 9. QUALIFICATIONS. (a) An individual is not 2-46 eligible for a certificate of registration or must surrender an 2-47 existing certificate if: 2-48 (1) during the period the individual holds the 2-49 certificate of registration or during the 10-year period preceding 2-50 the date the certificate is issued, the individual has been 2-51 convicted of a crime under Chapter 481 or 483, Health and Safety 2-52 Code, or laws containing substantially the same elements under the 2-53 laws of any other state, the United States, or another country; or 2-54 (2) the individual owes delinquent taxes to any local, 2-55 state, or federal taxing entity. 2-56 (b) The department may refuse to grant a certificate of 2-57 registration to a person, other than an individual, or may suspend 2-58 or revoke the person's certificate if: 2-59 (1) the department determines that, during the period 2-60 the person holds the certificate or during the 10-year period 2-61 preceding the date the certificate is issued, an officer, director, 2-62 member, or shareholder of the person or of a person that owns 2-63 shares in the person has been convicted of a crime under Chapter 2-64 481 or 483, Health and Safety Code, or laws containing 2-65 substantially the same elements under the laws of any other state, 2-66 the United States, or another country; or 2-67 (2) the person owes delinquent taxes to any local, 2-68 state, or federal taxing entity. 2-69 SECTION 10. RECORDS. (a) A transportation service provider 3-1 shall maintain a record that contains for each shipment of property 3-2 the transportation service provider assumes responsibility for 3-3 transporting: 3-4 (1) the name of the shipper of the property; 3-5 (2) the type of property that is being transported; 3-6 (3) the destination point of the property that is 3-7 being transported; 3-8 (4) the name of the person receiving the property; and 3-9 (5) the name of the person transporting the property. 3-10 (b) The transportation service provider shall keep a copy of 3-11 a record required under this section until the fourth anniversary 3-12 of the date the property is transported. 3-13 SECTION 11. AUDIT. (a) The department may periodically 3-14 audit the business records of a transportation service provider 3-15 registered under this Act. 3-16 (b) For the purpose of carrying out this Act, the department 3-17 may: 3-18 (1) examine a record required to be maintained under 3-19 Section 10 of this Act or another book, record, paper, or object 3-20 that the department determines is necessary for conducting a 3-21 complete examination; or 3-22 (2) question, under oath, any person associated with 3-23 the business, including an officer, director, or employee of the 3-24 transportation service provider, or any person claiming the person 3-25 was negatively affected by an alleged violation of this Act by the 3-26 transportation service provider. 3-27 (c) If a person required by the department to submit to an 3-28 examination under this section refuses to permit the examination or 3-29 to answer any question authorized by this Act, the commissioner may 3-30 suspend the transportation service provider's certificate of 3-31 registration until the examination is completed. 3-32 SECTION 12. ENFORCEMENT. The commissioner, with the 3-33 assistance of the Department of Public Safety, may investigate a 3-34 violation of this Act or a rule adopted under this Act. The 3-35 commissioner or any law enforcement agency may file a complaint 3-36 with the district attorney of Travis County or with the prosecuting 3-37 attorney of the county in which a violation is alleged to have 3-38 occurred. 3-39 SECTION 13. COOPERATIVE AGREEMENTS. The department shall 3-40 cooperate with federal or state agencies in carrying out this Act. 3-41 SECTION 14. CRIMINAL PENALTY. (a) A transportation service 3-42 provider commits an offense if the person knowingly violates this 3-43 Act. 3-44 (b) An offense under this section is a Class A misdemeanor. 3-45 SECTION 15. CIVIL PENALTY. A transportation service 3-46 provider that knowingly violates this Act or knowingly fails to 3-47 comply with a rule adopted under this Act is liable for a civil 3-48 penalty of not less than $100 or more than $500 for each violation. 3-49 SECTION 16. POSTING OF CERTIFICATE REQUIRED. A registration 3-50 holder shall post the certificate of registration issued under this 3-51 Act in the person's place of business in a location visible to the 3-52 public. 3-53 SECTION 17. EFFECTIVE DATE. This Act takes effect September 3-54 1, 1997, except that Section 3 of this Act, which prohibits a 3-55 transportation service provider from operating in this state 3-56 without a certificate of registration, and Section 14 of this Act 3-57 take effect January 1, 1998. 3-58 SECTION 18. EMERGENCY. The importance of this legislation 3-59 and the crowded condition of the calendars in both houses create an 3-60 emergency and an imperative public necessity that the 3-61 constitutional rule requiring bills to be read on three several 3-62 days in each house be suspended, and this rule is hereby suspended. 3-63 * * * * *