PROPOSED RULES Before an agency may permanently adopt a new or amended section or repeal an existing section, a proposal detailing the action must be published in the Texas Register at least 30 days before action is taken. The 30-day time period gives interested persons an opportunity to review and make oral or written comments on the section. Also, in the case of substantive action, a public hearing must be granted if requested by at least 25 persons, a governmental subdivision or agency, or an association having at least 25 members. Symbology in proposed amendments. New language added to an existing section is indicated by the use of bold text. [Brackets] indicate deletion of existing material within a section. TITLE 16. ECONOMIC REGULATION Part I. Railroad Commission of Texas Chapter 5. Transportation Division Subchapter A. General Provisions 16 TAC sec.sec.5.1-5.6 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.1-5.6, concerning policy, scope, citation, definitions, examination of facilities and records, and preservation duplicates of commission records. This proposal is made in order to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.1. Policy. sec.5.2. Scope. sec.5.3. Citation. sec.5.4. Definitions. sec.5.5. Examination of Facilities and Records. sec.5.6. Preservation Duplicates of Commission Records. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501293 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 16 TAC sec.sec.5.1-5.4 The Railroad Commission of Texas proposes new sec.sec.5.1-5.4, concerning policy, scope, citation, and preservation duplicates of commission records. This proposal is made in conjunction with other proposed changes to Chapter 5, which is being updated in response to recent federal deregulation legislation contained in House Rule 2739 enacting Title VI of the Federal Aviation Administration Authorization Act of 1994, effective January 1, 1995. The federal legislation includes a federal preemption over any state's regulation of prices, routes, or services of most motor carriers performing for-hire transportation. The proposed new sections bring the general provisions of the title into conformity with the remainder of this title. Jackye Greenlee, assistant director-central operations, has determined that for the each year of the first five year period the proposed section will be in effect, there will be no fiscal implications for state or local government as a result of enforcing the sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of administering the sections will be to clarify the general provisions of this title for the public. There will be no effect on small businesses as a result of enforcing the sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register . The new sections are proposed under Texas Civil Statutes, Article 911a sec.4(a), which charges the commission with prescribing rules and regulations necessary for the government of motor bus companies; Texas Civil Statutes Article 911b sec.4(a)(1), which charges the commission with prescribing rules and regulations necessary for the government of motor carriers; Texas Civil Statutes, Article 6687-9b, which charges the commission to adopt rules to provide for the registration of tow trucks; and Texas Civil Statutes, Article 6687-9a, which charges the commission to adopt rules to provide for the licensing of vehicle storage facilities. The following is the articles that are affected by the proposed sections: Texas Civil Statutes, Articles 911a, 911b, 6687-9a, and 6687-9b. sec.5.1. Policy. The public policy of this state, as declared by the legislature, requires that the commission ensure the public safety by requiring the registration and regulation of commercial carriers, household goods carriers, tow truck owners, vehicle storage facilities, and motor bus companies. sec.5.2. Scope. These regulations include all of the substantive measures of general application adopted by the commission for the supervision and regulation of commercial carriers, household goods carriers, motor bus companies, motor transportation brokers, tow truck owners, and vehicle storage facilities. sec.5.3. Citation. These regulations are arranged by parts and regulations. They may be cited as "M.T.R." followed by the word "part" or the abbreviation "reg." and the number of the part or regulation referred to. sec.5.4. Preservation Duplicates of Commission Records.
    Pursuant to Texas Government Code sec.441.038 and Chapter 441, Subchapter D, the commission hereby designates as preservation duplicates of public records of the Transportation Division, to the end that they may be treated and considered for all purposes as original records, the following film files: (1) Film files 1 to 149, both inclusive, reproductions of public records relating to specialized motor carriers. (2) Film files 1 to 62, both inclusive, 1 to 3, both inclusive, and 1 to 5, both inclusive, reproductions of public records relating to common carrier motor carriers. (3) Film files 1 to 14, both inclusive, reproductions of public records relating to contract carriers. (4) Film files 1 to 51, both inclusive, reproductions of public records relating to motor bus companies. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1995. TRD-9501320 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter B. Operating Certificates, Permits, and Licenses 16 TAC sec.5.21, sec.5.22 The Railroad Commission of Texas proposes amendments to s5.21, concerning definitions, and sec.5.22, concerning application for certificate of registration. This proposal is made as part of a comprehensive revision of Chapter 5 of this title in light of recent legislative changes to statutes concerning regulation of transportation. The purposes of the amendments are to correct internal cross-references as a result of proposed amendments to other subchapters, to amend the provisions for a safety affidavit, and to eliminate double payment of per vehicle fees that would result under the commercial carrier registration system in Texas and the federal, single-state registration system. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed amendment. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of the proposal will be the incorporation of carrier safety requirements into subchapter B of the commission's motor transportation regulations, concerning commercial carriers. In addition, the public will benefit by the reduction of fees for vehicle registration. There is no anticipated economic cost to individuals who are required to comply with the amendments as proposed. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The amendments are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, sec.sec.4(a)(1) and 4(a)(12), which authorizes the commission to prescribe rules for the safety of motor carriers. The following is the article that is affected by these sections: Texas Civil Statutes, Article 911b. sec.5.21. Definitions. The following words and terms when used in this subchapter shall have the following meanings unless the context clearly indicates otherwise. Commercial carrier -Any person that operates or causes the operation of a commercial motor vehicle upon the public highways of the State of Texas. This definition does not include a tow truck owner as that term is defined in s5.502
      [sec.5.802] of this title (relating to Definitions). Commercial motor vehicle-Any motor vehicle with a gross weight rating of 26,001 pounds or more, designed or used for the transportation of property. For the purposes of this title, a vehicle transporting any of the commodities listed in sec.5.24(d)(1)-(3) of this title (relating to Minimum Limits of Financial Responsibility) is a commercial motor vehicle if such vehicle has a gross weight rating of 10,000 pounds or more. All tow trucks, as that term is defined in s5.502
        [sec.5.802] of this title (relating to Definitions) are commercial motor vehicles, regardless of the gross weight rating of the tow truck. Notwithstanding the foregoing, the following are not commercial motor vehicles: (A) a vehicle registered with the commission pursuant to sec.9.15
          [sec.9.17] of this title (relating to Registration of
            LP-Gas Transport); (B) (No change.) (C) a vehicle transporting household goods as that term is defined in sec.5.101
              [ s5.251] of this title (relating to Definitions
                [Authority]), pursuant to a specialized motor carrier certificate of public convenience and necessity issued by the Commission. (D) a vehicle transporting property exclusively in interstate or foreign commerce pursuant to subchapter F
                  [T] of this title (relating to Registration of Interstate Motor Carriers
                    [Single State Registration of Interstate Motor Carrier Operations]); (E)-(K) (No change.) sec.5.22. Application for certificate of registration. (a)-(e) (No change.) (f) Safety affidavit. Each commercial carrier shall complete, as part of the application, an affidavit stating that the commercial carrier has knowledge of and will conduct operations in accordance with sec.5.33 of this subchapter (relating to Safety Regulations of the Department of Transportation Adopted), s5.34 of this subchapter (relating to Explosives and Other Dangerous Articles), and all other applicable
                      federal and state safety regulations. Each failure to conduct operations in accordance with such rules
                        [all federal] and [state safety] regulations shall constitute a violation of this subchapter. (g) Filing fees. (1) Commercial motor vehicle registration. Except as provided in paragraph (3) of this subsection, the
                          [The] fee for registering a commercial motor vehicle shall be $10 for each vehicle. (2) (No change.) (3) The payment of the $10 fee specified in paragraph (1) of this subsection will not be required for the same number of commercial motor vehicles for which the commercial carrier has designated Texas as a state of travel in the single state registration system defined in sec.5.402 of this title (relating to Definitions). In order to be exempt from the $10 fee under this subsection, the commercial carrier must file with the commission, prior to the date the fee would otherwise be due, a receipt providing proof of registration under the single state registration system (currently Form RS-3) and specifying the number of vehicles for which the commercial carrier has designated Texas as a state of travel. This paragraph shall have retroactive effect for all applications for certificates of registration, as specified in this section, filed prior to the effective date of this section. (h)-(k) (No change.) This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501327 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 16 TAC sec.5.33, sec.5.34 The Railroad Commission of Texas proposes new sec.5.33, concerning safety regulations of the Department of Transportation and sec.5.34, concerning explosives and other dangerous articles. This proposal is made as part of a comprehensive revision of Chapter 5 in light of recent legislative changes to statutes concerning regulation of transportation to reorganize commission rules into concise subchapters for each category of the rules. The proposal is made in order to incorporate safety and hazardous material rules applicable to motor carriers into subchapter B, concerning commercial carriers. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the proposal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of the proposal will be the incorporation of carrier safety requirements into Subchapter B of the commission's motor transportation regulations, concerning commercial carriers and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the rules as proposed. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The new sections are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, sec.sec.4(a)(1) and 4(a)(12), which authorizes the commission to prescribe rules for the safety of motor carriers. The following are the articles that are affected by these sections: Texas Civil Statutes, Article 911b and 6701d sec.139. sec.5.33. Safety Regulations of the Department of Transportation. (a) The commission incorporates by reference the Federal Motor Carrier Safety Regulations, 49 Code of Federal Regulations, Parts 390-393 and 395-397, including amendments and interpretations thereto. (b) For purposes of this section only, and with respect to the adoption in subsection (a) of this section, certain terms when used in the federal regulations as adopted in subsection (a) of this section will be defined as follows: (1) the definition of a motor carrier will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(o); (2) the definition of hazardous material shipper will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(p); (3) interstate or foreign commerce will include all movements by motor vehicle, both interstate and intrastate, over the streets and highways of this state; (4) department means the Railroad Commission of Texas; (5) regional highway administrator means the director of the Texas Department of Public Safety; (6) farm vehicle means any vehicle or combination of vehicles controlled and/or operated by a farmer or rancher being used to transport agriculture products, farm machinery, and farm supplies to or from a farm or ranch; and (7) private carrier means any person not included in the terms "common carrier by motor vehicle" or "contract carrier by motor vehicle" who or which transports by motor vehicle property of which person is the owner, lessee, or bailee, when such transportation is for the purpose of sale, lease, rent, or bailment, or in furtherance of any commercial enterprise. (c) Exceptions to the adoption in subsection (a) of this section were made by Texas Civil Statutes, Article 6701d, sec.139, and are adopted as follows. (1) The regulations shall be applicable to vehicles with an actual gross weight, a registered gross weight, or a gross weight rating in excess of 26,000 pounds, except that the regulations will be applicable to farm vehicles with an actual gross weight, a registered gross weight, or vehicles with a gross rating of 48,000 pounds or more. Vehicles transporting 15 or more passengers and all vehicles transporting hazardous materials requiring a placard are subject to the regulations. (2) Drivers in intrastate commerce will be permitted to drive 12 hours following eight consecutive hours off duty. (3) Such regulations shall not apply to vehicles operated intrastate used in oil or water well servicing or drilling which are constructed as a machine consisting of a mast, an engine for power, a draw works, and a chassis permanently constructed or assembled for such purpose or purposes. (4) Such regulations shall not apply to a mobile crane which is an unladen, self-propelled vehicle constructed as a machine used to raise, shift, or lower weights when operated intrastate. (5) The maintenance of any type of government form, separate company form, driver's record of duty status, or a driver's daily log is not required if the vehicle is operated within a 150 air mile radius of the normal work reporting location: (A) if owner has another method by which he keeps, as a business record, date and time of delivery of product or service, and location of delivery of product or service so that a general record of the driver's hours of service may be compiled; or (B) if another law requires or specifies the maintenance of delivery tickets, sales invoices, or other documents which show the date of delivery and quantity of merchandise delivered, so that a general record of the driver's hours of service may be compiled; and (C) provided that the business records generally conform with the following: (i) the time the driver reports for duty each day; (ii) the total number of hours the driver is on duty each day; (iii) the time the driver is released from duty each day; and (iv) the total time for the preceding seven days in accordance with 49 Code of Federal Regulations, sec.395.8 of the Federal Motor Carrier Safety Regulations for drivers used for the first time or intermittently. (6) Drivers who are not transporting hazardous materials and were regularly employed in Texas as an intrastate motor carrier prior to the effective date of this adoption are not required to meet the medical standards contained in the federal regulations. (A) For the purpose of enforcement of this regulation, those drivers who reached their 18th birthday after September 1, 1989, shall be required to meet all medical standards. (B) The exceptions contained in this paragraph shall not be deemed as exemption from drug testing requirements contained in 49 Code of Federal Regulations, Part 391. (d) Exceptions adopted by the commission not specified in Texas Civil Statutes, Article 6701d, sec.139, are as follows. (1) 49 Code of Federal Regulations, sec.393.86 requiring rear end protection shall not be applicable provided the vehicle was manufactured prior to September 1, 1991. (2) Under this section, the Texas Department of Public Safety may provide a waiver for a person who is otherwise disqualified under 49 Code of Federal Regulations, sec.391.41(b)10, provided the person meets the vision standards adopted by the Texas Department of Public Safety in 37 Texas Administrative Code sec.15.51 (relating to Vision Tests). (A) Applications for a waiver shall not be accepted by the Texas Department of Public Safety after January 1, 1990. (B) Waivers granted under this paragraph are automatically renewed, provided the applicant continues to meet vision standards adopted by the Texas Department of Public Safety in 37 Texas Administrative Code sec.15.51 (relating to Vision Tests). (3) Drivers of vehicles under this section operating in intrastate transportation shall not be permitted to drive after having worked and/or driven for 70 hours in any consecutive seven-day period. (4) 49 Code of Federal Regulations, sec.391.11b(1) is not adopted for intrastate drivers. The minimum age for an intrastate driver shall be 18 years of age. (5) 49 Code of Federal Regulations, sec.391.11b(2) is not adopted for intrastate drivers. An intrastate driver must have successfully passed the examination for a Texas driver's license and be a minimum age of 18 years old. (6) 49 Code of Federal Regulations, sec.391.51 pertaining to driver qualification files is effective on and after January 1, 1990. (7) Part 391, 49 Code of Federal Regulations, as it pertains to drug testing requirements, are effective on and after December 21, 1990, for intrastate drivers. (8) Texas Civil Statutes, Article 6701d, sec.132(b) and (c), concerning brakes on trailers weighing 15,000 pounds gross weight or less, take precedence over the brake requirements in the federal regulations for trailers of this gross weight specification. (9) Texas Civil Statutes, Article 6701b-1, concerning identifying markings on commercial motor vehicles shall take precedence over 49 Code of Federal Regulations, sec.390.21 for vehicles operated in intrastate commerce. (10) Peace officers of any Texas city having a population of 300,000 or more are considered to be certified by the Texas Department of Public Safety and eligible to enforce the Federal Motor Carrier Safety Regulations, provided each officer enforcing the Federal Motor Carrier Safety Regulations must have completed a course of training of which the curriculum and instructors have been approved by the director of the Texas Department of Public Safety. Peace officers requesting certification as required in this paragraph shall submit to the Texas Department of Public Safety a schedule of the courses which have been completed, including identification of the instructor(s). Peace officers certified by the director of the Texas Department of Public Safety shall have the authority to enforce the regulations herein adopted applicable to intrastate drivers and vehicles and all regulations in 49 Code of Federal Regulations, Parts 390-393 and 395-397, applicable to interstate drivers and vehicles. (11) Regulations and exceptions adopted herein are applicable to intrastate drivers and vehicles. All regulations contained in 49 Code of Federal Regulations, Parts 390-393 and 395-397 and all amendments thereto pertaining to interstate drivers and vehicles are adopted. (12) Nothing in this section shall be construed to prohibit an employer from requiring and enforcing more stringent requirements relating to safety of operation and employee safety and health. sec.5.34. Explosives and Other Dangerous Articles. In addition to all other regulations governing motor carrier operations in interstate commerce, commercial carriers of explosives or other dangerous articles shall be governed cumulatively by the following: (1) regulations of the United States Department of Transportation, as amended, supplemented, or revised, governing the transportation of explosives or other dangerous articles (49 Code of Federal Regulations Parts 171-178, inclusive, 49 Code of Federal Regulations Part 397); (2) regulations of the commission issued through its Liquefied Petroleum Gas Division (see Liquefied Petroleum Gas Docket Number 1); (3) the Uniform Act Regulating Traffic on Highways (Texas Civil Statutes article 6701d). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501328 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter C. System of Accounts and Records 16 TAC sec.sec.5.51, 5.52, 5.56-5.59 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.51, 5.52, and 5.56-5.59, concerning definitions, double entry books required, verification of entries, claim register, information required, and limited common carrier motor carrier. This proposal is made in order to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.51. Definitions. sec.5.52. Double Entry Books Required. sec.5.56. Verification of Entries. sec.5.57. Claim Register. sec.5.58. Information Required. sec.5.59. Limited Common Carrier Motor Carrier. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501294 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter D. Maintenance, Preservation and Destruction of Records 16 TAC sec.sec.5.71-5.73 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.71-5.73, concerning maintenance by Texas firms, maintenance by out-of-state firms, and preservation and destruction. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of the rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.71. Maintenance by Texas Firms. sec.5.72. Maintenance by Out-of-State Firms. sec.5.73. Preservation and Destruction. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501295 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter E. Annual and Other Reports 16 TAC sec.sec.5.81-5.83, 5.85 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.81-5.83, and 5.85, concerning annual report required, form of annual reports, additional reports, and sale and transfer; lease; annual report. This proposal is made in order to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the Commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeal will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and achieve greater compliance by a reorganization of the rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.81. Annual Report Required. sec.5.82. Form of Annual Reports. sec.5.83. Additional Reports. sec.5.85. Sale and Transfer; Lease; Annual Report. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501296 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter F. Bills of Lading and Waybills 16 TAC sec.sec.5.91-5.104 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Raiload Commission of Texas proposes the repeal of ssec.5.91-5.104, concerning bills of lading to be issued, contents of bills of lading, issuance of waybills, contents of waybills, waybill to accompany shipment, carriers of newspapers, limited common carriers: waybill-bill of lading, carriers of motion picture films, common carriers providing courier service, through billing by regular route common carriers, motor carriers providing service in armored cars and trucks, operations as a parcel carrier, contract carriers providing pickup and delivery service, and contract carriers providing dedicated service. This proposal is made in order to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.91. Bills of Lading to be Issued. sec.5.92. Contents of Bills of Lading. sec.5.93. Issuance of Waybills. sec.5.94. Contents of Waybills. sec.5.95. Waybill to Accompany Shipment. sec.5.96. Carriers of Newspapers. sec.5.97. Limited Common Carriers: Waybill-Bill of Lading. sec.5.98. Carriers of Motion Picture Films. sec.5.99. Common Carriers Providing Courier Service. sec.5.100. Through Billing by Regular Route Common Carriers. sec.5.101. Motor Carriers Providing Service in Armored Cars and Trucks. sec.5.102. Operations as a Parcel Carrier. sec.5.103. Contract Carriers Providing Pickup and Delivery Service. sec.5.104. Contract Carriers Providing Dedicated Service. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501297 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter C. Household Goods Carriers 16 TAC sec.sec.5.102-5.123, 5.125-5.147 The Railroad Commission of Texas proposes new sec.sec.5.102-5.123 and 5.125-5. 147, concerning definitions; safety requirements; explosives and other dangerous articles; driver's daily log; minimum limits of financial responsibility; insurance carriers; termination of insurance coverage; qualification as self- insurer; compliance with laws and regulations; prohibition of unauthorized services; call and demand service; use of highways; pick-up and delivery service; operating authority; joinder of motor carrier certificates; division of certificate or permit authority; consolidation of certificate or permit authority; compliance pending approval; cancellation, suspension, and reinstatement of intrastate certificates or permits; reinstatement fee; local representatives; deceptive advertising prohibited; estimate sheet; bills of lading to be issued; issuance of waybills; freightbills; inventory of shipment; weights; accessorial service statement; claims for loss or damage; equipment registration and cab cards; other identifying marks; lease-related activities of motor carriers; joint transportation between carriers; credit; tariff rates and charges; mileage rates; ratemaking; collective rate applications; temporary rates; annual reports; records; examination of facilities and records; registered agent and address for service of process; forms; procedure; and administrative sanctions. This proposal is made as part of a comprehensive revision of Chapter 5 in light of recent legislative changes to statutes concerning regulation of transportation and to reorganize the commission's rules into concise subchapters for each category of the rules. The commission may approve amendments, additions, and deletions to proposed rules to ensure that the proposed rate-related rules in this subchapter are in conformity with the benchmark rate-setting methodology in proposed sec.5.136. The previous rules concerned a set rate rather than the flexible rates proposed with the benchmark methodology. Comments concerning any needed changes to implement the benchmark rate-setting methodology are specifically solicited. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five year period the proposed sections will be in effect, there will be no fiscal implications for state or local government as a result of enforcing the sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of administering the proposed sections will be to establish a system for regulating household goods carriers, including requirements for safety and insurance, and to achieve greater compliance by a reorganization of rules into concise subchapters. There will be no effect on small businesses as a result of enforcing the proposed sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register . Comments concerning any needed changes to implement the benchmark rate-setting methodology are specifically solicited. Comments are also solicited as to whether the proposed sections conform to Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305). The new sections are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by the proposed sections: Texas Civil Statutes, Article 911b. sec.5.102. Safety Requirements. (a) The commission incorporates by reference the Federal Motor Carrier Safety Regulations, 49 Code of Federal Regulations, Parts 390-393 and 395-397, including amendments and interpretations thereto. (b) For purposes of this section only, and with respect to the adoption in subsection (a) of the section, certain terms when used in the federal regulations as adopted in subsection (a) of this section will be defined as follows: (1) the definition of a motor carrier will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(o); (2) the definition of hazardous material shipper will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(p); (3) interstate or foreign commerce will include all movements by motor vehicle, both interstate and intrastate, over the streets and highways of this state; (4) department means the Railroad Commission of Texas; (5) regional highway administrator means the director of the Texas Department of Public Safety; (6) farm vehicle means any vehicle or combination of vehicles controlled and/or operated by a farmer or rancher being used to transport agriculture products, farm machinery, and farm supplies to or from a farm or ranch; and (7) private carrier means any person not included in the terms "common carrier by motor vehicle" or "contract carrier by motor vehicle" who or which transports by motor vehicle property of which person is the owner, lessee, or bailee, when such transportation is for the purpose of sale, lease, rent, or bailment, or in furtherance of any commercial enterprise. (c) Exceptions to the adoption in subsection (a) of this section were made by Texas Civil Statutes, Article 6701d, s139, and are adopted as follows. (1) The regulations shall be applicable to vehicles with an actual gross weight, a registered gross weight, or a gross weight rating in excess of 26,000 pounds, except that the regulations will be applicable to farm vehicles with an actual gross weight, a registered gross weight, or vehicles with a gross rating of 48, 000 pounds or more. Vehicles transporting 15 or more passengers and all vehicles transporting hazardous materials requiring a placard are subject to the regulations. (2) Drivers in intrastate commerce will be permitted to drive 12 hours following eight consecutive hours off duty. (3) Such regulations shall not apply to vehicles operated intrastate used in oil or water well servicing or drilling which are constructed as a machine consisting of a mast, an engine for power, a draw works, and a chassis permanently constructed or assembled for such purpose or purposes. (4) Such regulations shall not apply to a mobile crane which is an unladen, self-propelled vehicle constructed as a machine used to raise, shift, or lower weights when operated intrastate. (5) The maintenance of any type of government form, separate company form, driver's record of duty status, or a driver's daily log is not required if the vehicle is operated within a 150 air mile radius of the normal work reporting location: (A) if owner has another method by which he keeps, as a business record, date and time of delivery of product or service, and location of delivery of product or service so that a general record of the driver's hours of service may be compiled; or (B) if another law requires or specifies the maintenance of delivery tickets, sales invoices, or other documents which show the date of delivery and quantity of merchandise delivered, so that a general record of the driver's hours of service may be compiled; and (C) provided that the business records generally conform with the following: (i) the time the driver reports for duty each day; (ii) the total number of hours the driver is on duty each day; (iii) the time the driver is released from duty each day; and (iv) the total time for the preceding seven days in accordance with 49 Code of Federal Regulations, sec.395.8 of the Federal Motor Carrier Safety Regulations for drivers used for the first time or intermittently. (6) Drivers who are not transporting hazardous materials and were regularly employed in Texas as an intrastate motor carrier prior to the effective date of this adoption are not required to meet the medical standards contained in the federal regulations. (A) For the purpose of enforcement of this regulation, those drivers who reached their 18th birthday after September 1, 1989, shall be required to meet all medical standards. (B) The exceptions contained in this paragraph shall not be deemed as exemption from drug testing requirements contained in 49 Code of Federal Regulations, Part 391. (d) Exceptions adopted by the commission not specified in Texas Civil Statutes, Article 6701d, sec.139, are as follows: (1) 49 Code of Federal Regulations, sec.393. 86 requiring rear end protection shall not be applicable provided the vehicle was manufactured prior to September 1, 1991. (2) Under this section, the Texas Department of Public Safety may provide a waiver for a person who is otherwise disqualified under 49 Code of Federal Regulations, sec.391.41(b)(10), provided the person meets the vision standards adopted by the Texas Administrative Code sec.15.51 (relating to Vision Tests). (A) Applications for a waiver shall not be accepted by the Texas Department of Public Safety after January 1, 1990. (B) Waivers granted under this paragraph are automatically renewed, provided the applicant continues to meet vision standards adopted by the Texas Department of Public Safety in 37 Texas Administrative Code sec.15.51 (relating to Vision Tests). (3) Drivers of vehicles under this section operating in intrastate transportation shall not be permitted to drive after having worked and/or driven for 70 hours in any consecutive seven-day period. (4) 49 Code of Federal Regulations, sec.391.11(b)(1) is not adopted for intrastate drivers. The minimum age for an intrastate driver shall be 18 years of age. (5) 49 Code of Federal Regulations, sec.391.11(b)(2) is not adopted for intrastate drivers. An intrastate driver must have successfully passed the examination for a Texas driver's license and be a minimum age of 18 years old. (6) 49 Code of Federal Regulations, sec.391.51 pertaining to driver qualification files is effective on and after January 1, 1990. (7) The portions of 49 Code of Federal Regulations, Part 391 pertaining to drug testing requirements, are effective on and after December 21, 1990 for intrastate drivers. (8) Texas Civil Statutes, Article 6701d, sec.132(b) and (c), concerning brakes on trailers weighing 15,000 pounds gross weight or less, take precedence over the brake requirements in the federal regulations for trailers of this gross weight specification. (9) Texas Civil Statutes, Article 6701b-1, concerning identifying markings on commercial motor vehicles shall take precedence over 49 Code of Federal Regulations, sec.390.21 for vehicles operated in intrastate commerce. (10) Peace officers of any Texas city having a population of 300,000 or more are considered to be certified by the Texas Department of Public Safety and eligible to enforce the Federal Motor Carrier Safety Regulations, provided each officer enforcing the Federal Motor Carrier Safety Regulations must have completed a course of training of which the curriculum and instructors have been approved by the director of the Texas Department of Public Safety. Peace officers requesting certification as required in this paragraph shall submit to the Texas Department of Public Safety a schedule of the courses which have been completed, including identification of the instructor(s). Peace officers certified by the director of the Texas Department of Public Safety shall have the authority to enforce the regulations herein adopted applicable to intrastate drivers and vehicles and all regulations in 49 Code of Federal Regulations, Parts 390-393 and 395-397, applicable to interstate drivers and vehicles. (11) Regulations and exceptions adopted herein are applicable to intrastate drivers and vehicles. All regulations contained in 49 Code of Federal Regulations, Parts 390-393 and 395-397 and all amendments thereto pertaining to interstate drivers and vehicles are adopted. (12) Nothing in this section shall be construed to prohibit an employer from requiring and enforcing more stringent requirements relating to safety of operation and employee safety and health. sec.5.103. Explosives and Other Dangerous Articles. In addition to all other regulations governing motor carrier operations in interstate commerce, motor carriers of explosives or other dangerous articles shall be governed cumulatively by the following: (1) Regulations of the Department of Transportation, as amended, supplemented, or revised, governing the transportation of explosives or other dangerous articles (49 C.F.R. Parts 171-178, inclusive) (49 C.F.R. Part 397). (2) Regulations of the commission issued through its Liquefied Petroleum Gas Division (see Liquefied Petroleum Gas Docket Number 1). (3) The Uniform Act Regulating Traffic on Highways (Texas Civil Statutes, Article 6701d). sec.5.104. Driver's Daily Log. (a) Every certificated household goods carrier shall require that a driver's daily log shall be made by each of its drivers, and every driver who operates a motor vehicle subject to the jurisdiction of the Railroad Commission of Texas shall make a daily log. Driver's logs shall be made on and in accordance with the instructions of BMC-59, driver's daily log, as revised from time to time, as prescribed by the department of transportation, and they shall reflect the true facts as to the activities of each driver for the full 24 hours of each day. (b) All driver's logs shall be maintained by each household goods carrier in accordance with sec.5.142 of this title (relating to Records). sec.5.105. Minimum Limits of Financial Responsibility. (a) Filing required. Every household goods carrier shall file and maintain evidence of currently effective bodily injury and property damage liability insurance, cargo insurance, and workers' compensation insurance in the amounts required by subsection (c) of this section, and such household goods carrier shall not operate any motor vehicle upon the highways of this state unless the carrier has filed and the commission has accepted evidence of currently effective insurance, as prescribed by subsection (d) of this section. Operation of a motor vehicle by a household goods carrier over the public highways of this state without the appropriate insurance coverage in effect and on file with the commission shall be a violation of this subchapter. (b) Submission of evidence of financial responsibility. The evidence of financial responsibility, as prescribed by subsection (d) of this section, shall be submitted prior to issuance of any operating authority to a household goods carrier. (c) Minimum limits. The minimum limits of financial responsibility for household goods carriers are as follows: (1) combined single limit for bodily injuries to or death of all persons killed in any accident, and loss or damage in any one accident to the property of others (excluding cargo) -$500,000. (2) loss of or damage to total cargo shipped-$5,000. (3) loss of or damage to total cargo carried on any one motor vehicle-$5,000. (4) workers' compensation insurance coverage in the amount required by the Workers' Compensation Act. Notwithstanding the provision of paragraph (4) of this subsection, a household goods carrier may protect its employees by obtaining accidental insurance coverage. A household goods carrier may not be self-insured for the coverage required by this paragraph. (d) Proof required. The evidence of insurance required by this section shall be in the form set forth by the commission, and shall be duly completed and executed by an authorized representative of an insurance company holding a certificate of authority to transact such kinds of insurance business in the State of Texas, or by a surplus lines insurer approved by the Texas Department of Insurance. The cancellation of a policy of insurance may be effected only by the insurance company or the insured giving 30 days' notice in writing to the commission. The 30 day notice period will be calculated from the date notice is actually received by the commission. (e) Self-insurance. Notwithstanding the provisions of this section, a household goods carrier may be authorized to self-insure for bodily injury and property damage liability in lieu of filing proof of insurance, as provided in sec.5.108 of this title (relating to Qualification as Self-Insurer). sec.5.106. Insurance Carriers. (a) No surety bond, insurance policy, or certificate of insurance will be accepted by the commission unless issued by an insurance company or surety company licensed and authorized to do business in the State of Texas, in the form prescribed or approved by the Texas Department of Insurance and signed or countersigned by an authorized agent of the insurance company or surety company. The commission will accept a certificate of insurance issued by a surplus lines insurer that meets the requirements of the Insurance Code, Article 1.14-2 and rules adopted by the Texas Department of Insurance under that article, if accompanied by proof of inability to obtain insurance from an insurance company authorized to do business in the State of Texas. Proof of the household goods carrier's inability to obtain insurance shall be made in accordance with sec.15.13 (relating to Surplus Lines Insurance Requests for Information, Examination, and Complaints). Each certificate of insurance filed with the commission for the coverage required under sec.5.105 of this title (relating to Minimum Limits of Financial Responsibility) shall be accompanied by a filing fee of $100. (b) In all instances in which the insurer or surety of a household goods carrier becomes insolvent or becomes involved in a receivership or other insolvency proceeding, the household goods carrier may apply for approval of a surety bond or insurance policy issued by another surety or insurer, upon filing with the commission an affidavit, executed by an owner, partner, or officer of the household goods carrier, showing that no accidents or claims have occurred or arisen during the insolvency of the insurance carrier or surety, or that all damages and claims so arising have been satisfied. sec.5.107. Termination of Insurance Coverage. Except when replaced by another acceptable form of insurance coverage approved by the commission, no insurance coverage or surety bond shall be canceled or withdrawn until after 30 days' notice has been given to the commission by the insurance company or surety, in the form prescribed by the commission. sec.5.108. Qualification as Self-Insurer. (a) General Qualifications. The commission will give consideration to and may approve the application of a household goods carrier to qualify as a self- insurer if such carrier furnishes a true and accurate statement of its financial condition and other evidence that establishes the ability of such household goods carrier to satisfy its obligations for bodily injury and property damage liability, without affecting the stability or permanency of the business of such household goods carrier. In lieu of other proof, the commission may accept evidence of the qualifications of a household goods carrier as a self-insurer under the regulations of the Interstate Commerce Commission. (b) Applicant Guidelines. In addition to filing an application as prescribed by the commission, an applicant for self-insurer status covering bodily injury and property damage claims involving motor vehicles shall submit materials that will allow the commission to determine whether: (1) The net worth of the applicant is adequate in relationship to the size of its operations and the extent of its request for self-insurance authority. The applicant shall demonstrate that it will maintain a net worth sufficient to ensure that it will be able to meet its statutory obligations to the public to pay all claims relating to motor vehicles in the event of loss. (2) The applicant has a sound self-insurance program. The applicant shall demonstrate that it has established, and will maintain, an insurance program that will protect the public against all claims involving motor vehicles to the same extent as the minimum security limits applicable under this title. A self- insurance program may include, but not be limited to, one or more of the following: reserves, sinking funds, third party financial guarantees, parent company or affiliate sureties, excess insurance coverage, or other equivalent arrangements. (3) The applicant has an adequate ongoing safety program. Applicant shall submit evidence of an adequate ongoing safety program that is in substantial compliance with the safety regulations adopted by the commission. (c) Other securities or agreements. The commission may consider applications for approval of other securities or agreements and may approve any such application if satisfied that the security or agreement offered will afford adequate security for protection of the public. (d) Periodic Reports. Annual statements, semi-annual reports, and any other reports required by the commission reflecting the applicant's financial condition and status of its self-insurance program may be filed with the commission during the period of the household goods carrier's self-insurer status. (e) Duration of self-insurer status. The commission may approve the applicant as a self-insurer for any specific time period, or for an indefinite period until revoked under the provisions of subsection (f) of this section. (f) Revocation of self-insurer status. The commission may at any time, upon ten days' notice to the self-insurer, require the self-insurer to appear and demonstrate that it continues to have adequate financial resources to pay all claims involving motor vehicles for bodily injury and property damage liability, and that it remains in compliance with the other requirements of this section, and any previous orders issued by the commission. If the applicant fails to so demonstrate, its self-insurer status may be revoked. sec.5.109. Compliance with Laws and Regulations. All household goods carriers shall conduct their operations in accordance with all applicable laws of the State of Texas and all applicable regulations of the commission. All certificates and permits issued by the commission are subject to applicable provisions of law and of these regulations as fully as if said laws and said regulations were set forth verbatim in each certificate and permit. sec.5.110. Prohibition of Unauthorized Services. No household goods carrier shall perform any service or services within the jurisdiction of the commission except those which are authorized by a certificate or permit issued by the commission, or specifically authorized by these regulations for the class of which it is a member. sec.5.111. Call and Demand Service. All household goods carriers shall have authority, unless expressly prohibited by their respective certificates or permits, to render, in accordance with applicable tariff provisions, call and demand service upon the routes or within the territories upon or within which they are authorized to render service by their respective certificates or permits. sec.5.112. Use of Highways. (a) Each household goods carrier shall use only those highways which are authorized by its respective certificates or permits. However, household goods carriers which operate in both interstate and intrastate commerce are not required to secure additional authority from the commission to use in interstate commerce any highway which is included in the intrastate operating authority granted by a certificate or permit issued by the commission. (b) All household goods carriers duly authorized to perform operations in interstate or foreign commerce in Texas pursuant to the provisions of the Interstate Commerce Act are hereby authorized to use the highways of this state to perform interstate operations within the commercial zone of any municipality, as provided by the order of the Interstate Commerce Commission in ex parte MC- 37, 49 U.S.C. sec.10526. sec.5.113. Pick-Up and Delivery Service. All household goods carriers are hereby authorized, as an incident to the services authorized by their respective certificates or permits, to render pick-up and delivery services to and from all points which are located within the pick-up and delivery zones prescribed by the commission in applicable tariffs. sec.5.114. Operating Authority. (a) Certificate of public convenience and necessity or permit required. No household goods carrier shall transport household goods for hire between two or more incorporated cities without first obtaining a certificate of public convenience and necessity or permit from the commission. The application fee for a certificate of public convenience and necessity or permit shall be $100. The application shall be in the form prescribed by the commission. (b) Duplicative authority prohibited. No household goods carrier shall be granted operating authority duplicative of that held by such household goods carrier under any existing certificate or permit. If a household goods carrier receives additional duplicative authority by sale or transfer, the commission may provide for merger of the duplicative portion of such authority. (c) Sale, assignment, lease, or transfer of operating authority. (1) On application a certificate or permit may be sold, assigned, leased, or transferred, with the approval of the commission and upon payment of a tax equal to 10% of the amount paid as consideration for the certificate. (2) A person acquiring control over a household goods carrier, whether through ownership of stock, merger, consolidation, or otherwise, shall, within 15 days after the day on which control is acquired, file notice of the change in controlling interest with the director. (3) Authority is dormant, and an application to transfer may be denied, if the commission finds that the authority, or any portion thereof, has been inactive for a period of at least three consecutive years, with no resumption of activity for a period of at least one year prior to the filing of the application. If a complaint alleging dormancy is filed against a certificate holder and the authority is shown to be dormant, then the complaint may be sustained and the dormant authority may be canceled. Nothing in this section shall prohibit the commission from bringing on its own motion a complaint alleging dormancy. (4) A current intrastate operating report covering the operation in that portion of the year immediately preceding the sale, transfer, or lease of a certificate or permit must be furnished by the seller or lessor before final approval of the sale and transfer or lease will be given by the commission. (d) Voluntary suspension of a certificate. On application by a household goods carrier, the commission may authorize such household goods carrier to suspend services under its certificate or permit for a period not to exceed one year. The application shall be in the form prescribed by the commission. The application shall be accompanied by all cab cards currently held by the applicant, together with a reinstatement fee of $25. No notice of hearing shall be required in such cases. Upon subsequent application, the commission may authorize a household goods carrier to suspend service for one additional year without notice or hearing. Any subsequent application for authority to suspend service shall be heard and determined by the commission. (e) Transportation of property other than household goods. Household goods carriers transporting property other than household goods in equipment registered with the commission are not required to comply with sec.5.22 of this title (relating to Application for Certificate of Registration) and sec.5.23 of this title (relating to Cab Cards). All other provisions in Subchapter B of this title (relating to Commercial Carriers) will apply to household goods carriers when operating as commercial carriers. sec.5.115. Joinder of Motor Carrier Certificates. A household goods carrier may not render a coordinated or through service not authorized by any single certificate by virtue of tacking, joining, or combining operations authorized under two or more separately granted household goods carrier certificates, or under two or more separately granted portions of a consolidated certificate, unless after notice and hearing the commission has found that public convenience and necessity require such coordinated or through service and has specifically authorized same. sec.5.116. Division of Certificate or Permit Authority.
                            No division of operating authority conferred by either certificate or permit shall be permitted unless a written application is filed, notice issued, and public hearing held on the merits of such division. The form for such application to divide shall be promulgated by the commission. sec.5.117. Consolidation of Certificate or Permit Authority.
                              No consolidating of operating authority conferred by either certificate or permit shall be permitted unless a written application is filed, notice issued, and public hearing held on the merits of such consolidation. The form for such application to consolidate shall be promulgated by the commission. sec.5.118. Compliance Pending Approval. In any transfer proceeding, whether sale, assignment, lease, transfer, or inheritance, the transferor shall maintain full compliance with the commission's requirements, which shall include without limitation, the filing of insurance certificates, payment of vehicle fees, and the filing of annual operating reports, until such transfer has been finally approved. sec.5.119. Cancellation, Suspension, and Reinstatement of Intrastate Certificates or Permits. (a) Conditions under which authority may be involuntarily suspended or canceled. The intrastate certificate or permit of a household goods carrier shall be subject to cancellation under any of the following conditions: (1) failure to provide evidence of continuous insurance or surety bond coverage as required. (2) failure to maintain the required continuous insurance or surety bond coverage during the time the household goods carrier holds an intrastate certificate or permit. (3) failure to file an annual operating report as required. (4) failure to register equipment. (5) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension. (b) Notice of insurance violation. Upon receipt by the commission of notification pursuant to sec.5.107 of this title (relating to Termination of Insurance Coverage) that a household goods carrier's surety bond, policy, or certificate of insurance will terminate after 30 days, the commission shall send a letter by first class mail advising the motor carrier or motor bus company that upon termination of such insurance it must cease all operations under its certificate or permit. (c) Notice of other violation. If any of the conditions enumerated in subsection (a)(2) and (4) of this section arises, the commission shall notify the household goods carrier that its certificate or permit is subject to cancellation. Notification that a certificate or permit is subject to cancellation shall be by publication in the Transportation Division notice. (d) Extension of time for compliance. A certificate or permit shall not be subject to cancellation for noncompliance with insurance requirements if, prior to the termination of its current insurance, the household goods carrier files proof of insurance in accordance with sec.5.106 of this title (relating to Insurance Carriers). The time for filing such proof of insurance may be extended for 30 days, during which time the certificate or permit will remain in good standing if, prior to the termination of its current insurance, the household goods carrier files a certificate of insurance or a copy of an insurance policy, indicating new insurance at least equal in coverage to the current minimum levels established by the commission. For good cause, the period for filing operating reports, registering equipment, or for otherwise complying with applicable laws and regulations may be extended, in writing by the director, a maximum of 60 days, during which time the certificate or permit shall remain in good standing if a request for extension is filed with the commission prior to the carrier's certificate or permit having been made subject to cancellation. (e) Return to good standing prior to cancellation. (1) A certificate or permit which is subject to cancellation under this section for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsection (a)(1) of this section may be returned to good standing by the director if, before the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(1) has been corrected, together with a fee in the amount of $1.00 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that there has been no lapse in insurance or surety bond coverage, only a failure to provide the commission with evidence of this coverage, shall include: (A) an affidavit duly executed by the insurance agent; or (B) a certificate of insurance from the insurance agent; or (C) any other evidence deemed acceptable by the commission. (2) A certificate or permit which is subject to cancellation under this section for failure to maintain the required continuous insurance or surety bond coverage as detailed in subsection (a)(2) of this section may be returned to good standing by the director if, before the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder files proof that the condition which made the certificate or permit subject to cancellation under this subsection has been corrected, together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that the condition has been corrected shall include an affidavit duly executed by the holder to the certificate or permit showing that: (A) no accidents or losses have occurred; and (B) no claims have arisen; or (C) all damages, losses, and claims so arising have been satisfied. (3) A certificate or permit which is subject to cancellation under this section for failure to: (A) file an annual operating report; (B) failure to register equipment; and/or (C) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension as detailed in subsection (a)(2)-(4) of this section, respectively, may be returned to good standing by the director if, prior to the issuance of a commission order canceling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(2)-(4) of this section has been corrected together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. (f) Cancellation. The commission may cancel, suspend, or amend any certificate or permit which is subject to cancellation under this section. No certificate or permit shall be canceled, suspended, or amended without notice by certified letter mailed to the carrier's current address on file with the Railroad Commission pursuant to sec.5.144 of this title (relating to Registered Agent and Address for Service of Process) setting a time and place for hearing at which any interested party may appear to show cause why the certificate or permit should not be canceled. (g) Surrender of certificates and permits, cards and plates, and cessation of operations. Upon issuance of a commission final order canceling or suspending a certificate or permit, the carrier shall immediately return the certificate or permit, together with all cab cards in the carrier's possession, to the commission or to any duly authorized representative of the commission. The household goods carrier shall concurrently cease all operations under the certificate or permit. (h) Reinstatement after cancellation. (1) Reinstatement of certificates or permits canceled before enactment of this section. Certificates and permits canceled prior to enactment of this section shall be final for all purposes. Such certificates or permits cannot thereafter be reinstated. (2) Reinstatement of certificates or permits canceled after enactment of this rule. (A) Commission may provide for reinstatement in cancellation order. The Commission may, in the order canceling a certificate or permit, provide that the certificate or permit may be reinstated if the holder files a reinstatement application within a specified period of time following issuance of the cancellation order. (B) Reinstatement authority of director. The Commission, in the order canceling a certificate or permit, may provide that the certificate be reinstated by the director. Under this subsection, the director shall reinstate a canceled certificate where the holder of the canceled certificate files with the Transportation Division: (i) an application requesting reinstatement within the period provided in subparagraph (C) of this paragraph; (ii) evidence of insurance or surety bond coverage; (iii) evidence that all fees have been paid; (iv) an equipment report; and (v) an annual operating report. (C) Deadline for filing reinstatement applications. The deadline for filing of reinstatement applications specified in the cancellation order shall not be later than two years after the issuance of the cancellation order. (D) Reinstatement fee. (i) No application for reinstatement of a certificate or permit canceled for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsections (a)(1) and (f) of this section shall be granted unless the applicant shall pay to the commission a reinstatement fee in the amount of $1. 00 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. (ii) No application for reinstatement of a certificate or permit canceled for failure to maintain the required continuous insurance or surety bond coverage, failure to file an annual operating report, failure to register equipment, and/or failure to renew voluntary suspension or reactivate suspended certificate or permit upon termination of voluntary suspension as detailed in subsections (a)(2)-(5) and (f) of this section, shall be granted unless the applicant shall pay to the commission a reinstatement fee in the amount of $10 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. sec.5.120. Reinstatement Fee.
                                Every application for reinstatement of a certificate or permit which has been canceled or suspended shall be accompanied by a reinstatement fee of $25, and such fee shall be in the form of a cashier's check or money order and shall be made payable to the state treasurer. A separate reinstatement fee shall be required for each certificate or permit and the reinstatement fee shall be retained whether the reinstatement request is approved or not. sec.5.121. Local Representative. (a) May appoint local representative. A household goods carrier may appoint a local representative to represent the household goods carrier's business interests in any city, town, or area in Texas where such household goods carrier does not sell or solicit shipments out of its own office, terminal, or warehouse. Each household goods carrier shall be responsible for the acts, delinquencies, omissions, and conduct of each of its local representatives. No local representative may represent more than one household goods carrier. No household goods carrier may act as a local representative or agent for another household goods carrier. No local representative shall appoint any other representative for a household goods carrier. Each household goods carrier shall file with the commission a current, accurate list of its local representatives and their addresses, on or before January 1, April 1, July 1, and October 1, of each year. (b) Use of trade name. Every local representative shall operate under the trade name of the represented household goods carrier, shall display the trade name of said carrier prominently in all advertising, and shall prominently display the name of the represented household goods carrier in all communications with the public. (c) Availability of tariff records. Each household goods carrier that has a local representative shall be responsible to the commission for requiring each of its local representatives to keep copies of the applicable tariff in such local representative's office, open to public inspection. (d) Shipping record maintained. Each local representative shall keep a record of every shipment that it negotiates or handles for at least two years after date of shipment. sec.5.122. Deceptive Advertising Prohibited. No household goods carrier shall make, publish, display, disseminate, advertise, circulate, or place before the public or prospective shipper in any manner, orally or in writing, in any format, or via any other medium of advertisement or communication, a statement concerning any aspect of intrastate regulated transportation performed by the household goods carrier that is false or misleading in whole or in part. A statement shall be deemed misleading within the meaning of this section if it omits any qualification imposed by the regulations of this commission. sec.5.123. Estimate Sheet. (a) Estimate of total charges made at shipper request. Whenever a shipper requests that an estimated total cost of proposed services or estimated total weight of shipment be furnished by a household goods carrier, the household goods carrier shall furnish a written estimate of charges before the shipment is loaded and only after a visual inspection of the goods to be moved is made by the estimator. The estimate sheet shall be made in the form prescribed by the commission. (b) Required information on estimate sheet. Such estimate shall contain the information hereinafter set forth, and across the top of each form there shall be imprinted in red letters not less than 1/2 inch high, the words "estimated cost of service." The following statement will also be included on the estimate form in red letters not less than 1/4 inch high: "Not a guaranteed price. When assessing final charges to the shipper, the actual weight, obtained after loading is completed, will be used. The percentage of deviation if any, from the applicable benchmark rate will be used in assessing the total charge." The form shall be fully executed as appropriate in each case in accordance with the instructions therein. The original or a true legible copy of each estimate form prepared in accordance with this subsection shall be delivered to the shipper and a copy thereof shall be maintained by the carrier as part of its record of shipment, in accordance with sec.5.142 of this chapter (relating to Records). (c) Notification of actual weight. Whenever the shipper specifically requests notification of the actual weight and charges on a shipment, the carrier shall determine the actual weight and charges and notify the shipper within 24 hours of the time the shipment is offered for delivery. Such notification shall be at the carrier's expense. Where the shipment is in transit less than 24 hours, notification shall be made at the earliest possible time. (d) Actual charges greater than estimated charges. When assessing final charges to the shipper, the carrier must utilize the percentage, if any, from the applicable benchmark rate as in the estimate to the shipper in assessing the total charges. Whenever actual transportation charges, including packing and other accessorial charges, exceed the estimated charges by more than 10% or $25, whichever is greater, the carrier shall notify the shipper of the amount thereof by telegram or telephone at the carrier's expense. Such notice shall be made no later than 24 hours prior to the time the shipment is offered for delivery, except where the shipment is in transit less than 24 hours. Where the shipment is in transit less than 24 hours, notification shall be made at the earliest possible time. This subsection shall not apply: (1) where credit is to be extended by the carrier; or (2) where the shipper has not supplied an address or telephone number at which the communication would be received. (e) Reports of underestimates. At the request of the director, a household goods carrier shall report all instances of underestimates during the preceding month. sec.5.125. Issuance of Waybills. (a) Waybill to be issued. Each household goods carrier shall issue a waybill covering each shipment transported or service performed. A combination waybill and freight or expense bill or invoice or combination bill of lading and waybill may be issued if it shows all of the information required in this title relating to Contents of Waybills. (b) Contents of waybills. Each waybill shall show, in addition to any other information required by law or by the applicable tariff or tariffs, the following information: (1) The number of the waybill, as numbered consecutively in each household goods carrier's own series at the time of printing. In lieu of preparing waybills numbered at time of printing, household goods carriers may elect to establish a complete system of accountability through or by assignment of a control number to a waybill or other descriptive instrument at the time of dispatch of equipment; and prior to the receipt of freight from the consignor. (A) Such control number must be inserted on the waybill or other descriptive instrument by the driver prior to the receipt of freight from the consignor. (B) Assignment of the control number must be in numerical sequence, centrally controlled by the carrier or its dispatching terminal. (C) Household goods carriers may not duplicate any control number assigned in a calendar year. (D) Assignment of a control number must definitely relate to the month in which dispatch of the equipment was made and to the terminal dispatching the equipment. (E) Such assigned control number must be entered immediately into the household goods carrier's permanent dispatch records and relate to the equipment dispatched. (F) All other information required by this section shall be included in the waybill or other descriptive instrument permitted by this section. (2) The name and address of the issuing carrier. (3) The date of movement. (4) The name and address of the shipper. (5) The points of origin and destination. (6) The name and address of the consignee. (7) The number and description of the commodity, goods, articles, packages, or property comprising the shipment, showing separately those of differing classification and those which are subject to varying rates or charges. (8) The weight, volume, or measurement of property comprising the shipment, classified separately in accordance with applicable tariffs. (9) The number of any special permits and the cost thereof. (10) A shipper's certificate of weight, where applicable. (11) Any accessorial or additional service charges in detail, giving size and kind of equipment, the number of men, and total hours of extra labor and equipment services provided. (12) The amount of any charges which have been advanced. (13) Household goods carriers shall show the number of the truck or truck tractor and trailer transporting the shipment. (14) Mileage between origin and destination, and tariff used. (c) Waybill to accompany shipment. Each shipment shall be accompanied by the waybill relating thereto, or another descriptive instrument which provides the information required by subsection (b) of this section. If two or more trucks are used to transport a single shipment, a separate waybill or descriptive instrument shall accompany the portion of the shipment contained in each of the trucks and each such waybill or descriptive instrument shall show, with respect to that portion of the shipment which it accompanies, all information required by subsection (b) of this section, and shall, in addition thereto, refer specifically to the bill of lading which covers the entire shipment. Where only a portion of a shipment is transported in a particular vehicle, the waybill or descriptive instrument accompanying such portion may show the applicable information by reference to any other waybill or descriptive instrument covering a portion of said shipment wherein said information for the entire shipment is shown. However, in all cases in which a special permit is obtained, the required information concerning such permits shall be shown on the waybill or descriptive instrument which accompanies the portion of the shipment to which such permit applies. sec.5.126. Freight Bills. (a) Freight bills containing lawful rates and charges applicable for line haul movements and/or detention and accessorial services are to be issued by the carriers and are to be presented to consignor and/or consignee or owner for collection of such charges, subject to sec.5.135 of this title (relating to Credit). The freight bill shall contain all information shown on the waybill, and in addition, the rate assessed and total charges to collect, including charges for extra labor or accessorial services, if any. All freight bills bearing hourly charges for detention, extra labor, or other accessorial charges shall show the date and time of the beginning and ending of the services upon which charges are based and any other information necessary for a complete explanation of such charges. This information may be shown on the waybill instead of on the freight bill, if a copy of the waybill is attached to the freight bill. (b) Carriers may elect to use a combination bill of lading, waybill, and freight bill. In such an event, the combination bill shall contain all information required in sec.5. 124 of this title (relating to Bills of Lading To Be Issued), sec.5.126 of this title (relating to Freight Bills), and this section. sec.5.127. Inventory of Shipment. Each household goods carrier shall prepare an inventory of each shipment which it originates and shall deliver a copy to the shipper. The inventory shall be endorsed by the carrier, and the carrier shall be solely responsible for its accuracy. The original or a legible copy of the inventory will be attached to the bill of lading in the carrier's files. sec.5.128. Weights. Weights to be used in assessing freight charges on household goods shall be obtained as follows: (1) The tare weight of the vehicle shall be determined prior to the loading of said vehicle by weighing either on scales maintained by the carrier or on certified scales maintained and operated by a public bonded weigher. All fuel tanks shall be full and there shall be no driver or crew member thereon. A weight ticket shall be carried on the vehicle in the form prescribed by the commission. The equipment, in the same physical state and condition, shall again be weighed after loading. The net weight of the shipment shall be the difference in tare and loaded weight. The provisions of this subsection shall apply on less-than-truckload shipments and partial shipments, except that for less-than- truckload shipments or partial shipments, the tare weight of the vehicle shall only be determined initially and the actual weight of each less-than-truckload shipment or partial shipment shall be determined by subsequent and successive weighing; and provided further, that where a less-than-truckload or partial shipment does not exceed 1,000 pounds, such less-than-truckload shipment or partial shipment may be weighed on a certified scale prior to being loaded in the vehicle and such less-than-truckload shipment or partial load shall have a weight ticket evidencing such weighing attached to the bill of lading or waybill covering the shipment. (2) On all shipments weighed pursuant to the provisions of this subsection which are placed in storage in transit or delivered out of storage to destination by another vehicle, no additional weighing shall be required unless the shipment has been decreased or increased in weight subsequent to the original weighing of the shipment. (3) If no certified scale is available at origin, any point en route, or at destination, a constructive weight, based upon seven pounds per cubic foot of properly loaded van space, may be used. sec.5.129. Accessorial Service Statement. Each household goods carrier shall prepare a separate statement or certificate for accessorial services performed by such household goods carrier if performed as part of a shipment. The statement or certificate for accessorial services shall fully explain and itemize all accessorial services performed and shall include beginning and ending times on all accessorial services for which hourly charges are assessed. sec.5.130. Claims for Loss or Damage. (a) Filing of claims. (1) A claim for loss, damage, injury or delay to a shipment must be filed in writing with the household goods carrier who received, delivered, or handled the shipment. The use of a claims form set out in the applicable tariff is recommended but not required. (2) The claim must contain facts sufficient to identify the shipment, and make demand for payment of a specified or determinable amount of money. (3) Bad order reports, appraisal reports of damage, notation of exceptions on freight bills or other documents, inspection reports issued by carrier inspectors, or tracers or inspection requests, cannot be substituted for a written claim but may be used to supplement or support a written claim. (b) Documents required in support of claims. A claim must be accompanied by the following: (1) the original freight bill and bill of lading or other contract of carriage, or copies of such documents; (2) documentation to establish the value of the property; (3) when an asserted claim for loss cannot otherwise be confirmed by the household goods carrier, if the household goods carrier requires, a signed statement that the property covered by the claim has not been received; (4) when the interest of the claimant in the property involved does not appear from the documents submitted, the household goods carrier may require a written assignment or other documentation of claimant's interest. (c) Acknowledgement and disposition of claims. (1) Each household goods carrier receiving a written claim for loss of or damage to property transported shall acknowledge receipt of the claim in writing to the claimant within 15 calendar days after receipt by the household goods carrier or the household goods carrier's agent, unless the carrier pays or declines to pay the claim within that 15 days. At the time of claim acknowledgement, the household goods carrier will notify the claimant in writing of the following: "Claim handling procedures are established by the Railroad Commission of Texas. Household goods carriers operating in intrastate commerce must comply with the Motor Transportation Regulations sec.5.130 in the handling of loss and/or damage claims. Questions or complaints concerning the household goods carrier's handling (the Commission has no authority to adjudicate the settlement of the claim) should be directed to the Railroad Commission of Texas, Transportation/Gas Utilities Division at its Austin, Texas address, or at (512) 463-7111." The household goods carrier or household goods carrier's agent shall record the date of receipt on the claim. (2) The household goods carrier shall pay, decline to pay, or make a firm compromise settlement offer in writing to the claimant within 60 days after receipt of the claim by the household goods carrier or its agent. If, for reasons beyond the control of the household goods carrier, the claim cannot be processed and disposed of within 60 days after receipt, the household goods carrier shall at that time and at the expiration of each succeeding 30-day period while the claim remains pending, advise the claimant in writing of the status of the claim and the reasons for the delay in final disposition. (d) Inconsistent claims. When two or more household goods carriers have been presented with a similar claim on the same shipment, the household goods carriers may require further substantiation from each claimant to the extent necessary to resolve any overlap or conflict. (e) Documenting pilferage. If any portion of a shipment bears any indication of pilferage, the household goods carrier and consignee shall jointly inventory the contents and note shortages or damages on the household goods carrier's delivery receipt. (f) Reporting of concealed damage. Consignee has the responsibility to notify the delivering carrier of concealed damage to a shipment as soon as it is discovered, and to preserve the shipping container and its contents in the same condition as when the damage was discovered, insofar as possible. (g) Inspection by household goods carrier or consignee. The household goods carrier shall inspect a damaged shipment as soon as practicable after being notified and requested to inspect by the consignee, but no later than fifteen normal working days after that request. The household goods carrier shall make a written report of the results of the inspection and provide the original to the consignee. (h) Payment of shipping charges. Payment of shipping charges and payment of claims shall be handled separately, and one shall not be used to offset the other. (i) Conflicting provisions. Any and all items or provisions of tariffs that apply to the operations of household goods carriers are superseded to the extent that they conflict with the provisions of this section. (j) Claim register. Each household goods carrier shall maintain a claim register recording each claim received by the household goods carrier, including claims for alleged loss or damage to cargo, overcharge, personal injury, accident, and fire. Each claim shall include, at a minimum, information as to the name of the claimant, date claim received, the date the claim was paid, and the total amount paid or the date the claim was disallowed and the reason the claim was disallowed. Each claim shall be supported by all claim papers, or a memorandum identifying the person with possession of the claim papers. sec.5.131. Equipment Registration and Cab Cards. (a) Each household goods carrier shall identify all motor vehicles used in the conduct of its operations by filing an equipment report with the commission. This report shall be in the form prescribed by the director, and a separate report, along with the required fees, shall be filed for each certificate or permit under which operations are conducted. An equipment report filed on behalf of a sole proprietorship, partnership, or corporation shall be invalid unless signed by an owner, partner, officer, attorney, or designated agent. (b) Each household goods carrier shall maintain at its principal office a current list of all motor vehicles registered with the commission. Such list shall be maintained in accordance with sec.5.145 of this title (relating to Records). (c) Each household goods carrier shall maintain at its principal office a current list of all equipment and all vehicles offered for use in the performance of tariff accessorial services. Such list shall set forth the capacities of the involved equipment and vehicles, including, but not limited to, tonnage rating, lifting capacity, and/or drawbar rating. This list shall be maintained in accordance with sec.5.142 of this title (relating to Records). (d) No motor vehicle may be used in the performance of tariff accessorial services unless: (1) such vehicle bears a current cab card; or (2) such vehicle is identified on the household goods carrier's current list of vehicles offered for use in the performance of tariff accessorial services. (e) Each motor vehicle operated in line haul service by a household goods carrier shall bear a current cab card. Except as otherwise provided, no motor vehicle may be issued more than one intrastate cab card at any one time. When any motor vehicle is retired from service, all cards issued for that vehicle shall be returned to the commission immediately. (f) A cab card may be transferred from a motor vehicle that is retired from service to a motor vehicle which is substituted therefore upon the filing of a report in a form prescribed by the director, accompanied by the cab card of the retired vehicle. The fee shall be $1.00 for each motor vehicle so substituted. (g) A cab card that has been lost or destroyed may be replaced upon the filing of an application in the form prescribed by the director. The fee shall be $1.00 for each cab card so replaced. (h) Multiple cab cards. (1) No motor vehicle may be issued more than one cab card at any one time. (2) Where separate household goods carrier certificates or permits are owned and operated by the same legal entity, or where separate household goods carrier certificates or permits are owned by separate legal entities under common ownership and control, or where separate household goods carrier certificates or permits are acquired by lease, duly approved by the commission, and such leased certificates or permits are operated under common control, each motor vehicle used in the conduct of operations may be issued more than one cab card. Written approval of the director shall be required. A household goods carrier shall annually declare in writing to the director the status of ownership and control with regard to the involved certificates or permits, fully disclosing any changes in such ownership and control. The annual declaration required by this subsection shall be filed no later than 20 days prior to the anniversary date of approval. (i) Cab cards shall be renewed annually. Each household goods carrier shall be assigned an annual date for renewal according to the last digit of the household goods carrier's certificate number or permit number listed in subsection (j) of this section: (j) The annual fee for renewal of a household goods carrier cab card is $11, composed of a $10 statutory fee and a $1.00 charge for the cab card. If a motor vehicle is placed in service by a household goods carrier after the annual renewal date, the annual fee shall be prorated as set forth in the following table:
                                  Figure: 16 TAC s5.131(j) (k) All fees required by this section shall be satisfied by a cashier's check, certified check, or money order, payable to the state treasurer. To insure timely renewal and return of new cab cards, all reports and forms should be received by the Austin office of the commission no later than 15 calendar days prior to expiration. (l) A cab card may be transferred from a motor vehicle that is temporarily out of service to a vehicle which has been leased from a bona fide leasing company. The household goods carrier shall attach the cab card of the out-of- service vehicle to the lease agreement, and carry such documents in the leased vehicle. The replacement vehicle must be fully covered by liability insurance as required by sec.5.105 of this title (relating to Minimum Limits of Financial Responsibility). The transferred cab card shall be valid for the replacement vehicle no more than 15 days after the date of the lease agreement. sec.5.132. Other Identifying Marks. Every motor vehicle used in the transportation of household goods for hire shall bear on both sides thereof the name of the carrier, the number of the vehicle, and the number of the certificate or permit authorizing the service. The identifying signs shall be printed in letters not less than two inches in height, in sharp color contrast to the background, and shall be plainly legible for a distance of at least 50 feet. sec.5.133. Lease-Related Activities of Motor Carriers. (a) Supervision and control of regulated operations. The holder of a certificate or permit shall be obligated to exercise direct supervision and control of all operations performed under authority of its certificate or permit. (b) Reservation of activities to the holder of a certificate or permit. (1) Reservation of activities to the holder of a certificate or permit. (A) Reserved activities. No person or entity other than the holder of a certificate or permit may, under authority of a certificate or permit. (i) establish, operate, or supervise any facility used in the provision of regulated transportation service; (ii) engage in billing or collecting activities; (iii) remit compensation to the driver of a motor vehicle; (iv) solicit traffic from the shipping or receiving public; or (v) exercise direction or control of personnel or equipment used in operations under a certificate or permit. (B) Prohibition against performance of reserved activities by noncarriers. A certificate or permit holder which receives consideration for the performance by any person or entity other than the certificate or permit holder of activities reserved to the holder of a certificate or permit under this paragraph shall be deemed to have engaged in an unauthorized conveyance of its operating rights. (2) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise. (A) Holder of a certificate or permit, its employees or agents-The owner of a certificate or permit, if the holder is a sole proprietor; a partner, if the holder is a partnership; an officer, if the holder is a corporation; the lessee under a lease approved by order of the commission; or any bona fide employee or agent of the holder. (B) Certificate or permit-A household goods carrier certificate of public convenience and necessity issued by the Railroad Commission of Texas. (c) Use of carrier name. (1) Use of noncarrier name prohibited. Operations under a certificate or permit shall not be conducted under the name of any person or entity other than the holder of the certificate or permit. Except as provided in paragraph (2) of this subsection. (A) no name other than the correct name of the certificate or permit holder, as set out in the holder's certificate or permit, shall appear on terminal or other facilities, or on power equipment or other equipment, used in connection with services under authority of the holder's certificate or permit; and (B) no name other than the correct name of the certificate or permit holder, as set out in the holder's certificate or permit, shall appear on or be used in advertising, solicitation, shipping documents, correspondence, or other representation of carrier identity to shippers, receivers, or other members of the public, or on any document used in billing or collecting activities. (2) Exceptions. the name of a person or entity other than the holder of a certificate or permit may appear on terminals or other facilities, or on power equipment or other equipment and may appear on or be used in written advertising or solicitation, shipping documents, correspondence, or other representation of carrier identity to shippers, receivers, or other members of the public, or on documents used in billing or collecting activities, provided that the other person whose name is used is: (A) the manufacturer or builder of facilities or equipment on which the other name appears; (B) the dealer from which the equipment on which the other name appears was purchased; or (C) the authorized agent of a specialized motor carrier of household goods. (3) Exclusivity of employees and agents. (A) Limitation of one holder. No person or entity shall be the employee or agent of more than one certificate or permit holder for purposes of this section at any one time, except as provided for in subparagraph (B) of this paragraph. (B) Common carrier agents and employees. A person or entity may be the employee or agent of more than one regular route, general commodity, or common carrier. (d) Registration and inspection of terminals and other facilities. (1) Letters of registration. The holder of a certificate or permit shall have on file with the commission at all times a letter of registration showing the current address and telephone number of each terminal or other facility from which equipment is dispatched into service under the holder's certificate or permit, as well as each facility, other than a shipper's facility at which bills of lading, waybills, freight bills, journals or ledgers, or other records relating to operations under the holder's certificate or permit, are regularly prepared or kept. (2) Agency agreements. If any facility referenced in paragraph (1) of this subsection is owned by a person or entity other than the person or entity shown on the certificate or permit to be the holder thereof, a current copy of the contract whereby the holder acquired possession and use of the facility shall be kept on file and available for inspection at the principle office of the carrier. The contract shall be in writing and shall contain all material terms of the agreement. The holder shall, within 10 days of the effective date of termination of any such contract, forward to the director of transportation written notice of termination. (e) Enforcement. The commission may, upon a determination that a certificate or permit holder has violated any provision of this section: (1) suspend, revoke, cancel, or amend the involved certificate or permit; or (2) order the holder to terminate and not renew business relationships of the type involved in the unauthorized lease arrangement. sec.5.134. Joint Transportation Between Carrier: (a) No household goods carrier shall solicit, bill, or act as broker with respect to any household goods shipment to, from, or between points which it is not authorized by its certificate to serve. All charges for such a shipment shall be collected by a household goods carrier who is domiciled in Texas and who booked or transported it and said household goods carrier shall account to all other participating household goods carriers for their shares of the charges. (b) No household goods carrier will pay compensation to an uncertificated third party for a shipment unless said uncertificated third party was a local representative duly constituted pursuant to the terms of this regulation and listed with the Railroad Commission prior to the date of the shipment. Provided, however, a Texas carrier may pay up to 10% commission of the line haul to an established out of state moving company (one regularly engaged in moving and storage and operating appropriate equipment and facilities in such business; upon request of a commission representative, it shall be the responsibility of the Texas carrier to furnish proof satisfactory to the commission that the nonresident company qualifies as an established mover) based outside the State of Texas for shipments sold by the nonresident carrier and referred to a Texas carrier for handling; such nonresident moving company may serve as solicitation agent only. Texas intrastate shipments must be transported a certificated Texas carrier on its own bill of lading on equipment licensed in Texas and with appropriate Railroad Commission cab card, and charges therefore must be billed to and collected from the shipper by the Texas certificated carrier. At the request of the director, a household goods carrier shall report the following information: (1) list of commissions or payments made; (2) freight bill number; (3) total amount of freight bill; (4) total amount of commission paid on each shipment; (5) name of solicitation agent paid. sec.5.135. Credit. (a) Except as provided in this subsection, freight charges on a "collect" consignment shall be collected before delivery of the shipment to the consignee or other party authorized to receive the same, and freight charges on a "prepaid" consignment shall be collected before the shipment is forwarded. (b) Upon taking precautions deemed by the household goods carrier as sufficient to assure payment of freight and tariff charges, credit may be extended for such charges to the consignor, consignee, or other party entitled to receive the freight and pay the charges thereof, provided that credit for such freight or tariff charges shall not be extended beyond midnight of the 20th day of the month following the calendar month in which delivery of the shipment is made. Freight bills for transportation charges may be presented at any time after delivery of the shipment is effected but in no case later than seven days after the beginning of the following month for services rendered during any calendar month. (c) When the carrier has relinquished possession of freight and collected tariff charges represented in the freight bill presented by it as the total amount for such charges and an undercharge bill for additional charges is thereafter presented, the carrier may extend credit in the amount of such additional charge for a period of 30 days to be computed from the first 12 midnight following presentation of the subsequently presented freight bill. (d) Those who are to pay freight bills may elect to have their freight bills presented by means of the United States mail and when mail service is so used the time of mailing by the carrier shall be deemed to be time of presentation of the bills. In case of dispute as to the time of mailing, the postmark shall be accepted as showing such time. (e) The mailing by the party paying freight charges of valid checks, drafts, or money orders which are satisfactory to the carrier in payment of freight charges within the credit period allowed may be deemed to be the collection of the tariff charges within the credit period for the purpose of these regulations. In case of dispute as to the time of mailing, the postmark shall be accepted as such time. (f) The foregoing applies to all carriers, shippers, and consignees except the United States, any department, bureau, or agency thereof, or any state or territory or political subdivision thereof, or the District of Columbia. sec.5.136. Tariff Rates and Charges. (a) Lawful rates and charges to be assessed. No household goods carrier shall charge, demand, collect, or receive, a different compensation for transportation services or for any accessorial service rendered, other than the rates and charges specified in the applicable tariff as prescribed by the commission. No allowance is permitted unless prescribed in the applicable tariff. (b) Benchmark rates. (1) "Benchmark rates" are the rates and accessorial charges set by the commission from which a household goods carrier may vary, as specified in this section. (2) The current approved rates and accessorial charges in effect in Southwest Warehouse & Transfer Association, Inc. Motor Freight Commodity Tariff Number 3 series at the time of the adoption of this rule will become the benchmark rates authorized in this rule until changed by order of the commission. (3) A household goods carrier may vary from the prescribed benchmark rate by an amount not to exceed 15% above or below such benchmark rate without approval from the commission. sec.5.137. Mileage Rates.
                                    Wherever the exact rate-making distance does not appear in a scale of rates in a tariff, the applicable rate shall be that prescribed for the next greater distance in the scale. sec.5.138. Ratemaking. (a) Policy. To ensure just, reasonable, and nondiscriminatory rates for all regulated transportation services. (b) Procedures. The commission will follow and enforce collective ratemaking procedures for the transportation of household goods. Such procedures shall ensure that the revenues and expenses of household goods carriers are ascertained for the transportation service provided or proposed to be provided. Nothing in this chapter shall be construed to prohibit independent action by any person in a rate application. (c) Enforcement. Failure on the part of any household goods carrier to comply with the commission's ratemaking procedures may result in suspension or cancellation of the household goods carrier's operating authority. (d) Standards. Benchmark rates set by the commission shall be reasonable to the shipping public and reasonably compensatory to the involved household goods carrier(s). Benchmark rates shall be set at a level that will cover the operating expenses of the involved household goods carriers and may provide a reasonable margin in excess of those expenses. sec.5.139. Collective Rate Applications. (a) Applications. Applications to establish or change benchmark rates may be submitted and prosecuted, or opposed by an authorized carriers association on behalf of a household goods carrier(s) pursuant to an agreement that has been approved by the commission under the provisions of this section. Applications, protests, interventions in opposition, or suspension petitions filed by an association must disclose, by reference to documents on file with the commission or otherwise, on whose behalf the application, protest, intervention, or suspension petition is filed. (b) Function of group representation. The policy of the Texas Legislature, as declared in Texas Civil Statutes Article 911b, sec.4(a), as amended, is to ensure just, reasonable, and nondiscriminatory rates, charges, and classifications for all carriers, shippers, and users of regulated transportation services for which the commission prescribes rates, charges, and classifications. The commission is directed, in sec.4(a), to establish collective rate-making procedures that will operate to ensure just, reasonable, and nondiscriminatory rates, charges, and classifications. (c) Standards for approval or disapproval. The commission shall grant an application for approval of an agreement concerning group representation only if: (1) the agreement complies with the collective rate-making provisions of Texas Civil Statutes Article 911b, sec.4(a) and this subchapter. (2) the bylaws of the association expressly acknowledge the right of: (A) any member or nonmember carrier, shipper, receiver, or other member of the affected public to formulate, prepare, submit, prosecute, or oppose an application to establish or change rates. charges, or classifications, and in particular of (B) any member carrier to formulate, prepare, submit, prosecute, or oppose an application to establish or change rates, charges, or classifications without notice to or the consent or assistance of the association or its other members. (3) the bylaws of the association expressly provide that: (A) the association shall not, on its own behalf, formulate, prepare, submit, prosecute, or oppose any application to establish or change rates, charges, or classifications: (B) no action shall be taken on behalf of the association to inhibit the exercise of the rights described in paragraph (2)(B) of this subsection; and (C) applications or protests/interventions in opposition filed by an association pursuant to an agreement approved by the commission must disclose, by reference to documents on file with the commission or otherwise, the carrier(s) on whose behalf the application or protest/intervention was filed; and (4) the commission determines that approval of the agreement is essential to its administration of system of collective rate-making for all carriers, shippers, and users of regulated transportation services. (d) Contents of application for approval of such agreements. The application and supporting exhibits shall show, in the order indicated, with the following paragraph designations, the following information. (1) Full and correct name and business address (street and number, city and zip code, county and state) of the application; whether application is an association, corporation, or partnership; if a corporation, the government, state, or territory under the laws of which the applicant was organized and received its present charter, and, if an association or a partnership, the names of the officers or partners and date of formation. (2) Full and correct name and business address (city and state) of each carrier on whose behalf the application is filed and whether it is an association, a corporation, individual, or partnership. (3) If the agreement of which approval is sought pertains to a conference, bureau, committee, or other organization, a complete description of such organization, including any subunits, and of its or their functions and methods of operation, together with a description of the territorial scope of such operations; and, if such organization has a working or other arrangement or relationship with any other organization, a complete description of such arrangement or relationship. If the agreement is of any other character, a precise statement of its nature and scope and the mode of procedure thereunder. (4) The facts and circumstances relied upon to establish that the agreement will be in furtherance of the Texas transportation law and policy as declared in the constitution and statutes of this state and in the regulations and rules of this commission, as amended. (5) The name, title, and post office address of counsel, officer, or other person to whom correspondence in regard to the application should be addressed. (e) Required exhibits. There shall be filed with and made a part of each original application, and each copy, the following exhibits: (1) As Exhibit 1, a true copy of the agreement. (2) As Exhibit 2, if the agreement pertains to a conference, bureau, committee, or other organization, a copy of the constitution, bylaws, or other documents or writings, specifying the organization's powers, duties, and procedures, unless incorporated in the agreement filed as Exhibit 1. (3) As Exhibit 3, if the agreement relates to a conference, bureau, committee, or other organization, an organization chart. (4) As Exhibit 4, if the agreement relates to a conference, bureau, committee, or other organization, a brief description of the manner by which the applicant is funded. (f) Procedure. The following procedure shall govern the execution, filing, and disposition of the application: (1) The original application shall be made under oath and shall be signed by an officer if an association, or a partner if a partnership; and if a corporation, by an executive officer having knowledge of the matters therein contained; and shall show, among other things, that the affiant is duly authorized to verify and file the application. (2) The original application and supporting papers and five copies thereof for the use of the commission shall be file with the director of the Transportation Division of the commission. Each copy shall bear the dates and signatures that appear in the original and shall be complete in itself, but the signatures in the copies may be stamped or typed, and the officer's seal may be omitted. (3) A public notice will be issued by the commission and filed with the Texas Register Division, stating the fact that such an application has been filed hereunder. (4) Any protest against the granting of an application shall be filed in accordance with provisions of the General and Special Rules of Practice and Procedures. (g) New parties to an agreement. Where a carrier becomes a party to an agreement which has been approved by the commission, such approval will extend and be applicable to such carrier upon the filing with the commission by the authorized agent of the parties to the agreement of a verified statement that the carrier has become a party to the agreement, which statement shall show the information required by subsection (d)(2) of this section, provided that no charge is made in the agreement except the addition of such carrier. (h) Notice of action by a member carrier. When action is taken by a carrier pursuant to an approved agreement under this regulation, notification thereof will be given by the agent to the same extent and in the same manner that the agent gives notice of actions proposed under procedures for collective consideration of the parties to the agreement; no other joint or collective procedures under the agreement are thereby invoked. (i) Amendments to approved agreements. Amendments to approved agreements (other than as to new parties) may become effective only after prior approval of the commission. sec.5.140. Temporary Rates.
                                      When temporary rates are authorized by the commission, pending notice and hearing, all carriers engaged in competition in the area or over the routes, and in the service or transporting for which any temporary rates are prescribed shall have the right, on 24 hours' written or telegraphic notice to the director, to adopt and charge the same temporary rates for the area, routes, services, and transportation for which they are prescribed. sec.5.141. Annual Reports.
                                        Annual report required. On or before the 15th day of May of each year, every household goods carrier shall file with the commission a report of intrastate revenues, expenses, and other statistics required by the commission, for the calendar year ending on the preceding December 31st. Each annual report shall be made on the form prescribed by the commission. The commission or the director may require any carrier or carriers to file any accounting report that may be needed to determine the reasonableness of household goods carrier rates and charges. sec.5.142. Records. (a) Records required. Household goods carriers operating under certificates issued by the Railroad Commission of Texas will keep accurate records of such operations which will be subject to inspection by Commission representative. Work orders, bills of lading, warehouse receipts, dispatch sheets, etc., will be maintained by the carriers in their files with complete information as to shipper, consignee, origin, destination, commodities hauled, work performed, equipment used and date of shipment or work performed. Every household goods carrier and each of its agents operating under a certificate or permit shall make and maintain complete and accurate records in accordance with acceptable accounting guidelines of all services performed for others whether or not such serves are governed by a tariff. (b) Maintenance, preservation, and destruction of records. (1) Texas Firms: Every household goods carrier domiciled within the State of Texas shall keep at a principal Texas office all books, records, accounts, and other documents required by these regulations or by tariffs published, prescribed, or approved by the commission, unless for good cause shown, the director permits such records to be maintained at another place, on the undertaking of the household goods carrier to tender such records upon request or demand of the commission at a designated place approved by the director. (2) Out-of-State Firms: Every household goods carrier which operates in intrastate commerce within the State of Texas whose principal office is located outside of the State of Texas, or outside of the continental United States, shall, upon request or demand of the commission or of any of its duly authorized agents or representatives, tender, at the place in Texas designated by the household goods carrier in its last previous annual report, or if no place in Texas is designated in such annual report, at the place designated by the commission, all of the books, accounts, and records required by these regulations or by tariffs published, prescribed, or approved by the commission. (3) All documents required pursuant to this subchapter must be retained by each household goods carrier for at least two years. sec.5.143. Examination of Facilities and Records. (a) Each household goods carrier, its proprietors, officers, directors, employees, receivers, trustees, or other representatives having control, directly or indirectly, over any household carrier, and all persons affiliated with such household goods carrier, shall permit any authorized agent or representative of the commission, upon presentation of identification, to inspect or examine all motor vehicles, records, reports, or other documents required to be kept or made pursuant to this title. The household goods carrier shall also provide adequate work space with reasonable work conditions at its office, or at a location near its office, for the inspection, copying, and examination of its records. (b) Each household goods carrier shall maintain at each of its billing stations, and make available for inspection to the public at all reasonable times, the household goods tariff containing the lawful rates and charges applicable to such household goods carrier. sec.5.144. Registered Agent and Address for Service of Process. Each household goods carrier shall have and continuously maintain with the commission for the purpose of administrative or civil service of process: (1) a registered office in Texas that may be, but need not be, the same as its principal place of business; and (2) a registered agent that is either an individual resident of Texas whose business office is identical with such registered office, a domestic corporation, or a foreign corporation authorized to transact business in Texas that has a business office identical with such registered office. sec.5.145. Forms. All forms required by these regulations or by the rules shall be prescribed by the director, subject to the approval of the commission. On the promulgation of any form by the director, it shall be presumed that it has been approved by the commission as to substance and form. sec.5.146. Procedure. To the extent that matters of procedure are not covered by a specific rule, subchapter U of this chapter (relating to General and Special Rules of Practice and Procedure) shall apply. sec.5.147. Administrative Sanctions. (a) When the terms "violation" or "violate," in either singular or plural form, are used in this section, they shall mean: (1) any violation of the Motor Carrier Act, Texas Civil Statutes, Article 911b, respecting safety, certificates, rates or insurance, or any rule or order adopted or issued related to safety or insurance provisions of the Motor Carrier Act or any violation of any of the requirements of this subchapter. (2) any violation of the Motor Carrier Safety Act, Texas Civil Statutes, Article 6701d, respecting safety or insurance, or any rule or order adopted or issued related to safety or insurance provisions of the Motor Carrier Safety Act; or (3) any violation of any of the requirements of this subchapter. (b) If a household goods carrier commits a violation, the commission may: (1) deny, revoke, or suspend the carrier's certificate of registration; (2) assess an administrative penalty in an amount not to exceed that permitted by Texas Civil Statutes, Article 911b sec.4(a)(12); or (3) for violations of insurance or safety requirements, assess an administrative penalty in an amount not to exceed that permitted by Texas Civil Statutes, Article 6701d sec.139(j). (c) If, after investigation of a possible violation by an authorized representative of the commission, the representative determines that a violation has occurred, the representative shall issue a report to the director, stating the facts on which the conclusion that a violation occurred is based. Upon reviewing the report, the director shall recommend what sanctions, if any, should be imposed upon the household goods carrier. Any recommendation by the director that sanctions be imposed shall be based on the following factors that the commission may consider when ordering sanctions: (1) the seriousness of the violation; (2) the history of previous violations; (3) the amount or action necessary to deter future violations; (4) efforts made to correct the violation; and (5) any other matters that justice may require. (d) The director shall give written notice of any alleged violation to the household goods carrier. The notice shall include: (1) a brief summary of the charges; (2) a statement of the proposed sanction, and any accompanying conditions; and (3) a statement of the right of the household goods carrier to a hearing on the alleged violation and any potential sanction. (e) Not later than the 20th day after the date on which a written notice of violation is received, a household goods carrier charged may accept the recommendation of the director made under this section, including the sanction and all accompanying conditions, or make a written request for a hearing on the charges made. The director may extend the time for reply to the recommendation for a period of up to 30 days, provided that, in the opinion of the director, a good-faith effort to negotiate a settlement of the alleged violation has begun. (f) If a household goods carrier charged with a violation accepts the recommendation of the director, the commission may issue an order approving the recommendation of the director (or other sanction as may be agreed upon by the parties), ordering that the recommended sanction and accompanying conditions be imposed upon the carrier. The commission may refuse to issue an order approving the recommendation of the director and enter an order approving a lesser sanction, or it may convene a hearing, or it may direct that further negotiations be made with the household goods carrier. (g) If a household goods carrier charged with a violation fails to respond in a timely manner to the written notice of alleged violation, or if the carrier requests a hearing, the director shall set a hearing and the charges shall be heard in accordance with the commission's regulations and Texas Government Code Chapter 2001 et seq. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1995. TRD-9501321 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter G. C.O.D. Shipments 16 TAC sec.sec.5.111-5.117 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Raiload Commission of Texas proposes the repeal of ssec.5.111-5.117, concerning C.O.D. shipments permitted C.O.D. bonds or affidavits in lieu thereof, package to be marked, collection of C.O.D. charges, undelivered C.O.D. shipments, remittance, and C.O.D. records. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.111. C.O.D. Shipments Permitted. sec.5.112. C.O.D. Bonds or Affidavits in Lieu Thereof. sec.5.113. Package to be Marked. sec.5.114. Collection of C.O.D. Charges. sec.5.115. Undelivered C.O.D. Shipments. sec.5.116. Remittance. sec.5.117. C.O.D. Records. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501300 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter H. Tariffs and Schedules 16 TAC sec.sec.5.131-5.148 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Raiload Commission of Texas proposes the repeal of ssec.5.131-5.148, concerning maintenance of copies, variations in charges prohibited, allowances prohibited, allowances prohibited, temporary rates, commencement of operations, weights to be used in assessing freight charges, weighing unnecessary, alternation of freight charges, mileage rates, reference to other documents, freight bills, contract for indemnity, credit, shipper certification of weight or other measure used in assessing freight charges, prescribed rates, rates, ratemaking standards, and collective applications. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.131. Maintenance of Copies. sec.5.132. Variations in Charges Prohibited. sec.5.133. Allowances Prohibited. sec.5.134. Temporary Rates. sec.5.135. Commencement of Operations. sec.5.136. Weights to be Used in Assessing Freight Charges. sec.5.137. Weighing Unnecessary. sec.5.138. Alternation of Freight Charges. sec.5.139. Mileage Rates. sec.5.140. Reference to Other Documents. sec.5.141. Freight Bills. sec.5.142. Contract for Indemnity. sec.5.143. Credit. sec.5.144. Shipper Certification of Weight or Other Measure Used in Assessing Freight Charges. sec.5.145. Prescribed Rates. sec.5.146. Rates. sec.5.147. Ratemaking Standards. sec.5.148. Collective Applications. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501301 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter I. Equipment, Identification and Reports 16 TAC sec.sec.5.151-5.153 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.151-5.153, concerning equipment reports, cab cards, and other identifying marks. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of the rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.151. Equipment Reports. sec.5.152. Cab Cards. sec.5.153. Other Identifying Marks. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501302 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter J. Leasing and Interchange of Equipment 16 TAC sec.sec.5.161-5.163, 5.167 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.161-5.163 and 5.167, concerning leasing of power equipment, leasing and interchange of trailers, lease of motor vehicle with operator, and lease-related activities of motor carriers. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the proposal will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. The following article is affected by these repeals: Texas Civil Statutes, Article 911b. sec.5.161. Leasing of Power Equipment. sec.5.162. Leasing and Interchange of Trailers. sec.5.163. Lease of Motor Vehicle with Operator. sec.5.167. Lease-Related Activities of Motor Carriers. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501303 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter K. Safety Requirements 16 TAC sec.sec.5.171-5.173 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.171-5.173, concerning safety regulations of the Department of Transportation adopted, explosives and other dangerous articles, and driver's daily log. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.171. Safety Regulations of the Department of Transportation Adopted. sec.5.172. Explosives and Other Dangerous Articles. sec.5.173. Driver's Daily Log. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501304 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter L. Insurance Requirements 16 TAC sec.sec.5.181-5.187 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.181-5.187, concerning evidence of insurance required, qualification as self-insurer, minimum limits, insurance carrier, termination, cargo insurance exceptions, and failure of insurance carrier. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 911b. sec.5.181. Evidence of Insurance Required. sec.5.182. Qualification as Self-Insurer. sec.5.183. Minimum Limits. sec.5.184. Insurance Carrier. sec.5.185. Termination. sec.5.186. Cargo Insurance Exceptions. sec.5.187. Failure of Insurance Carrier. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501305 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter M. Motor Bus Companies 16 TAC sec.sec.5.201-5.246, 5.248, 5.249 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.201-5.246, 5.248, and 5.249, concerning condition of buses; heating system; interior lighting system; tires; cleaning, disinfecting, and deinfestation; reserve equipment; posted information; sign prohibiting conversation with the driver; trailers; qualifications of drivers; conduct of drivers; conduct of passengers; right of transportation; transportation of property; receiving and discharging passengers; railroad crossings; insurance; systems of accounts and records; stations and terminals; station facilities; prohibited conduct; rest stops; posting of schedules; routing of passengers; baggage; compliance with schedules; unauthorized schedules, call and demand, irregular route service; interruption of service; deviation from authorized routes; establishment, change or discontinuation of bus schedules; connecting line agreement; interline bond; charger operation; transportation of Mexican national migratory workers; driver's trip report required; rates, fares, and charges for motor bus companies; required information of trip tickets; required information on continuous passage tickets; credit extended for transportation; lease or rental of motor buses; method of keeping records; motor bus package express-uniform bus bill; through bus agreements; government subsidized or mileage-reimbursed motor bus operations; registration and operation of intrastate certificates issued by the Interstate Commerce Commission pursuant to 49 United States Code, sec.10922; contract motor bus companies; motor bus certificates, rates, and regulations; and operations wholly within certain cities and their suburbs. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305), and Title II of the Trucking Industry regulatory Reform Act of 1994 (Public Law 103-311), and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies. The following are the articles that are affected by these repeals: Texas Civil Statutes, Article 911a and 911b. sec.5.201. Condition of Buses. sec.5.202. Heating System. sec.5.203. Interior Lighting System. sec.5.204. Tires. sec.5.205. Cleaning, Disinfecting, and Deinfestation. sec.5.206. Reserve Equipment. sec.5.207. Posted Information. sec.5.208. Sign Prohibiting Conversation with the Driver. sec.5.209. Trailers. sec.5.210. Qualifications of Drivers. sec.5.211. Conduct of Drivers. sec.5.212. Conduct of Passengers. sec.5.213. Right of Transportation. sec.5.214. Transportation of Property. sec.5.215. Receiving and Discharging Passengers. sec.5.216. Railroad Crossings. sec.5.217. Insurance. sec.5.218. Systems of Accounts and Records. sec.5.219. Stations and Terminals. sec.5.220. Station Facilities. sec.5.221. Prohibited Conduct. sec.5.222. Rest Stops. sec.5.223. Posting of Schedules. sec.5.224. Routing of Passengers. sec.5.225. Baggage. sec.5.226. Compliance with Schedules. sec.5.227. Unauthorized Schedules; Call and Demand; Irregular Route Service. sec.5.228. Interruption of Service. sec.5.229. Deviation from Authorized Routes. sec.5.230. Establishment, Change or Discontinuation of Bus Schedules. sec.5.231. Connecting Line Agreement. sec.5.232. Interline Bond. sec.5.233. Charter Operation. sec.5.234. Transportation of Mexican National Migratory Workers. sec.5.235. Driver's Trip Report Required. sec.5.236. Rates, Fares, and Charges for Motor Bus Companies. sec.5.237. Required Information on Trip Tickets. sec.5.238. Required Information on Continuous Passage Tickets. sec.5.239. Credit Extended for Transportation. sec.5.240. Lease or Rental of Motor Buses. sec.5.241. Method of Keeping Records. sec.5.242. Motor Bus Package Express-Uniform Bus Bill. sec.5.243. Through Bus Agreements. sec.5.244. Government Subsidized or Mileage-Reimbursed Motor Bus Operations. sec.5.245. Registration and Operation of Intrastate Certificates Issued by the Interstate Commerce Commission Pursuant to 49 U.S.C. sec.5.246. Contract Motor Bus Companies. sec.5.248. Motor Bus Certificates, Rates, and Regulations. sec.5.249. Operations Wholly Within Certain Cities and Their Suburbs. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501306 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter D. Motor Bus Companies 16 TAC sec.sec.5.201-5.246 The Railroad Commission of Texas proposes new sec.sec.5.201-5.246, concerning definitions; safety regulations of the Department of Transportation; explosives and other dangerous articles; driver's daily log; minimum limits of financial responsibility; insurance carriers; qualification as self-insurer; compliance with laws and regulations; prohibition of unauthorized services; use of highways; operating authority; registration and operation of intrastate certificates issued by the Interstate Commerce Commission pursuant to 49 U.S.C. sec.10922; operations wholly within certain cities and their suburbs; division of certificate or permit authority; consolidation of certificate or permit authority; compliance pending approval; voluntary suspension; cancellation, suspension, and reinstatement of intrastate certificates or permits; reinstatement fee; motor bus equipment; equipment registration and cab cards; conduct of drivers and passengers; tickets; credit extended for transportation; trip report required; claims for loss or damage; stations and terminals; routing; establishment, change, or discontinuance of bus schedules; connecting line agreement; rates, fares, and charges of motor bus companies operating a wholly intrastate route, charter, or call and demand service; rate-making; collective rate applications; annual report required; annual review of motor bus base rates and charges; deviations from motor bus base rates; publication of deviations; suspension of deviations; specific rates and charges; records required; examination of facilities and records; registered agent and address for service of process; forms; procedure; and administrative sanctions. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and of the Trucking Industry Regulatory Reform Act of 1994 (Public Law 103-311), and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five year period the proposed sections will be in effect, there will be no fiscal implications for state or local government as a result of enforcing the sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of administering the proposed sections will be to simplify and clarify the rules concerning motor bus companies and to achieve greater compliance by a reorganization of the rules into concise subchapters. There will be no effect on small businesses as a result of enforcing the proposed sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register . The new sections are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911a, which authorizes the commission to prescribe rules and regulations for the operations of motor bus companies. The following is the article that is affected by the proposed sections: Texas Civil Statutes, Article 911a. sec.5.201. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Certificate-A certificate of public convenience and necessity issued by the commission. Charter or special party-A group of persons who, pursuant to a common purpose and under a single contract, have acquired exclusive use of a passenger-carrying motor vehicle to travel together as a group to a specified destination or on a particular itinerary, either agreed to in advance or subject to modification; provided, however, that said term shall not include: (A) students 19 years of age or younger, who in the course of secondary or elementary school activities, under the direction of public, private, or parochial school authorities, acquire the exclusive use of a passenger-carrying vehicle registered to a bus company with insurance on file with the commission, and travel together as a group; or (B) military troops whose transportation is contracted for by the state or federal government. Commission-The Railroad Commission of Texas. Director-The director of the Transportation/Gas Utilities Division of the Railroad Commission of Texas. Any act or function assigned to the director by the commission may be delegated by the director. Motor bus company -A person owning, controlling, operating, or managing a motor bus over the public highways within the State of Texas whether operating over fixed routes or fixed schedules, or otherwise. However, the following are not motor bus companies for purposes of this title: (A) persons operating a motor bus wholly within the limits of any incorporated town or city, and the suburbs thereof; (B) persons operating motor buses for van-pooling or any other nonprofit ride- sharing arrangement by which a group of people share the expense of operating or owning and operating a vehicle in which they commute to and from work with one member of the group serving as driver in exchange for transportation to and from work and reasonable personal use of the vehicle; or (C) persons owning, controlling, operating, or managing motor propelled vehicles designed for carrying no more than five passengers not including the driver. (D) corporations or persons to the extent that they own, control, operate, or manage vehicles in compliance with the Texas Motor Vehicle Safety Responsibility Act, Texas Civil Statutes, Article 6701h, and only when those vehicles are used to provide transportation subsidized in whole or part by and provided under contract to clients of the Texas Department of Aging, Texas Commission on Alcohol and Drug Abuse, Texas Commission for the Blind, Texas Cancer Council, Texas Department of Housing and Community Affairs, Texas Commission for the Deaf, Texas Department of Health, Texas Department of Human Services, Texas Department of Mental Health and Mental Retardation, Texas Rehabilitation Commission, community action agencies created as provided by federal law, and the Texas Youth Commission, and each agency shall stipulate in the contract with a transportation provider the amount of liability insurance coverage necessary for vehicles covered under this subsection. Motor Bus-Motor propelled vehicle capable of transporting passengers with a rated seated capacity of six or more passengers not including the driver. Person-An individual, firm, partnership, corporation, company, association, or joint stock association, or other legally appointed receivers or trustees. Railroad crew motor bus company-Any person in the business of transporting railroad crews, pursuant to Texas Civil Statutes, Article 911a, sec.2a. sec.5.202. Safety Regulations of the Department of Transportation. (a) The commission incorporates by reference the Federal Motor Carrier Safety Regulations, 49 Code of Federal Regulations, Parts 390-393 and 395-397, including amendments and interpretations thereto. (b) For purposes of this section only, and with respect to the adoption in subsection (a) of this section, certain terms when used in the federal regulations as adopted in subsection (a) of this section will be defined as follows: (1) the definition of a motor carrier will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(o); (2) the definition of hazardous material shipper will be the same as that given in Texas Civil Statutes, Article 6701d, sec.2(p); (3) interstate or foreign commerce will include all movements by motor vehicle, both interstate and intrastate, over the streets and highways of this state; (4) department means the Railroad Commission of Texas; (5) regional highway administrator means the director of the Texas Department of Public Safety; (6) farm vehicle means any vehicle or combination of vehicles controlled and/or operated by a farmer or rancher being used to transport agriculture products, farm machinery, and farm supplies to or from a farm or ranch; and (7) private carrier means any person not included in the terms "common carrier by motor vehicle" or "contract carrier by motor vehicle" who or which transports by motor vehicle property of which suchperson is the owner, lessee, or bailee, when such transportation is for the purpose of sale, lease, rent, or bailment, or in furtherance of any commercial enterprise. (c) Exceptions to the adoption in subsection (a) of this section were made by Texas Civil Statutes, Article 6701d, sec.139, and are adopted as follows: (1) The regulations shall be applicable to vehicles with an actual gross weight, a registered gross weight, or a gross weight rating in excess of 26,000 pounds, except that the regulations will be applicable to farm vehicles with an actual gross weight, a registered gross weight, or vehicles with a gross rating of 48,000 pounds or more. Vehicles transporting 15 or more passengers and all vehicles transporting hazardous materials requiring a placard are subject to the regulations. (2) Drivers in intrastate commerce will be permitted to drive 12 hours following eight consecutive hours off duty. (3) Such regulations shall not apply to vehicles operated intrastate used in oil or water well servicing or drilling which are constructed as a machine consisting of a mast, an engine for power, a draw works, and a chassis permanently constructed or assembled for such purpose or purposes. (4) Such regulations shall not apply to a mobile crane which is an unladen, self-propelled vehicle constructed as a machine used to raise, shift, or lower weights when operated intrastate. (5) The maintenance of any type of government form, separate company form, driver's record of duty status, or a driver's daily log is not required if the vehicle is operated within a 150 air mile radius of the normal work reporting location: (A) if the owner has another method by which he keeps, as a business record, date and time of delivery of product or service, and location of delivery of product or service so that a general record of the driver's hours of service may be compiled; or (B) if another law requires or specifies the maintenance of delivery tickets, sales invoices, or other documents which show the date of delivery and quantity of merchandise delivered, so that a general record of the driver's hours of service may be compiled; and (C) provided that the business records generally conform with the following: (i) the time the driver reports for duty each day; (ii) the total number of hours the driver is on duty each day; (iii) the time the driver is released from duty each day; and (iv) the total time for the preceding seven days in accordance with 49 Code of Federal Regulations, sec.395.8 of the Federal Motor Carrier Safety Regulations for drivers used for the first time or intermittently. (6) Drivers who are not transporting hazardous materials and were regularly employed in Texas as an intrastate motor carrier prior to the effective date of this adoption are not required to meet the medical standards contained in the federal regulations. (A) For the purpose of enforcement of this regulation, those drivers who reached their 18th birthday after September 1, 1989, shall be required to meet all medical standards. (B) The exceptions contained in this paragraph shall not be deemed as exempt from drug testing requirements contained in 49 Code of Federal Regulations, Part 391. (d) Exceptions adopted by the commission not specified in Texas Civil Statutes, Article 6701d, sec.139, are as follows. (1) 49 Code of Federal Regulations, sec.393.86 requiring rear end protection shall not be applicable provided the vehicle was manufactured prior to September 1, 1991. (2) Under this section, the Texas Department of Public Safety may provide a waiver for a person who is otherwise disqualified under 49 Code of Federal Regulations, sec.391.41(b)(10), provided the person meets the vision standards adopted by the Texas Department of Public Safety in 37 Texas Administrative Code sec.15.51 (relating to Vision Tests). (A) Applications for a waiver shall not be accepted by the Texas Department of Public Safety after January 1, 1990. (B) Waivers granted under this paragraph are automatically renewed, provided the applicant continues to meet vision standards adopted by the Texas Department of Public Safety in 37 Texas Administrative Code sec.15.51 (relating to Vision Tests). (3) Drivers of vehicles under this section operating in intrastate transportation shall not be permitted to drive after having worked and/or driven for 70 hours in any consecutive seven-day period. (4) 49 Code of Federal Regulations, sec.391.(b)(1) is not adopted for intrastate drivers. The minimum age for an intrastate driver shall be 18 years of age. (5) 49 Code of Federal Regulations, sec.391.11(b)(2) is not adopted for intrastate drivers. An intrastate driver must have successfully passed the examination for a Texas driver's license and be a minimum age of 18 years old. (6) 49 Code of Federal Regulations, sec.391.51 pertaining to driver qualification files is effective on and after January 1, 1990. (7) The portions of 49 Code of Federal Regulations, Part 391 pertaining to drug testing requirements, are effective on and after December 21, 1990 for intrastate drivers. (8) Texas Civil Statutes, Article 6701d, sec.132(b) and (c), as it relates to brakes on trailers weighing 15,000 pounds gross weight or less, takes precedence over the brake requirements in the federal regulations for trailers of this gross weight specification. (9) Texas Civil Statutes, Article 6701b-1, concerning identifying markings on commercial motor vehicles, shall take precedence over 49 Code of Federal Regulations, sec.390.21 for vehicles operated in intrastate commerce. (10) Peace officers of any Texas city having a population of 300,000 or more are considered to be certified by the Texas Department of Public Safety and eligible to enforce the Federal Motor Carrier Safety Regulations, provided each officer enforcing the Federal Motor Carrier Safety Regulations must have completed a course of training of which the curriculum and instructors have been approved by the director of the Texas Department of Public Safety. Peace officers requesting certification as required in this paragraph shall submit to the Texas Department of Public Safety a schedule of the courses which have been completed, including identification of the instructor(s). Peace officers certified by the director of the Texas Department of Public Safety shall have the authority to enforce the regulations herein adopted applicable to intrastate drivers and vehicles and all regulations in 49 Code of Federal Regulations, Parts 390-393 and 395-397, applicable to interstate drivers and vehicles. (11) Regulations and exceptions adopted herein are applicable to intrastate drivers and vehicles. All regulations contained in 49 Code of Federal Regulations, Parts 390-393 and 395-397 and all amendments thereto pertaining to interstate drivers and vehicles are adopted. (12) Nothing in this section shall be construed to prohibit an employer from requiring and enforcing more stringent requirements relating to safety of operations and employee safety and health. sec.5.203. Explosives and Other Dangerous Articles. In addition to all other regulations governing motor carrier operations in interstate commerce, motor carriers of explosives or other dangerous articles shall be governed cumulatively by the following: (1) regulations of the Department of Transportation, as amended, supplemented, or revised, governing the transportation of explosives or other dangerous articles (49 Code of Federal Regulations Parts 171-178, 397); (2) regulations of the commission issued through its Liquefied Petroleum Gas Division (see Liquefied Petroleum Gas Docket Number 1); (3) the Uniform Act Regulating Traffic on Highways (Texas Civil Statutes, Article 6701d). sec.5.204. Driver's Daily Log. (a) Every certificated or permitted motor bus company shall require that a driver's daily log shall be made by each of its drivers, and every driver who operates a motor bus subject to the jurisdiction of the commission shall make a daily log. Driver's logs shall be made on and in accordance with the instructions of BMC-59, driver's daily log, as revised from time to time, as prescribed by the Texas Department of Transportation, and they shall reflect the true facts as to the activities of each driver for the full 24 hours of each day. (b) All driver's logs shall be maintained by each certificated or permitted motor bus company. (c) Motor bus companies operating in call and demand or irregular route service, in lieu of complying with the provisions of subsection (a) of this section, shall maintain driver's daily logs by the proper completion of daily trip route manifests as provided in sec.5.226 of this title (relating to Trip Report Required). sec.5.205. Minimum Limits of Financial Responsibility. (a) Filing required. Every motor bus company shall file and maintain evidence of currently effective bodily injury and property damage liability insurance, and workers' compensation insurance in the amounts required by subsection (c) of this section, and such motor bus company shall not operate any motor bus upon the highways of this state unless the motor bus company has filed and the commission has accepted evidence of currently effective insurance, as prescribed by subsection (d) of this section. Operation of a motor bus by a motor bus company over the public highways of this state without the appropriate insurance coverage in effect and on file with the commission shall be a violation of this subchapter. (b) Submission of evidence of financial responsibility. The evidence of financial responsibility, as prescribed by subsection (d) of this section, shall be submitted prior to issuance of any operating authority to a motor bus company. (c) Minimum limits. The minimum limits of financial responsibility for a motor bus company are as follows: (1) Combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to property of others (excluding cargo), for any vehicle with a seating capacity of 26 passengers or more -$5 million; (2) Combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to property of others (excluding cargo), for any vehicle with a seating capacity of 25 passengers or less -$500,000. (3) Workers' compensation insurance coverage in the amount required by the Workers' Compensation Act. (d) Proof required. The evidence of insurance required by this section shall be in the form set forth by the commission, and shall be duly completed and executed by an authorized representative of an insurance company holding a certificate of authority to transact such kinds of insurance business in the State of Texas, or by a surplus lines insurer approved by the Texas Department of Insurance. The cancellation of a policy of insurance may be effected only by the insurance company or the insured giving 30 days' notice in writing to the commission. The 30 day notice period will be calculated from the date notice is actually received by the commission. sec.5.206. Insurance Carriers. (a) No surety bond, insurance policy, or certificate of insurance will be accepted by the commission unless issued by an insurance company or surety company licensed and authorized to do business in the State of Texas, in the form prescribed or approved by the Texas Department of Insurance and signed or countersigned by an authorized agent of the insurance company or surety company. The commission will accept a certificate of insurance issued by a surplus lines insurer that meets the requirements of the Insurance Code, Article 1.14-2 and rules adopted by the Texas Department of Insurance under that article, if accompanied by proof of inability to obtain insurance from an insurance company authorized to do business in the State of Texas. Proof of the motor bus carrier's inability to obtain insurance shall be made in accordance with 28 Texas Administrative Code, sec.15.13 (relating to Surplus Lines Insurance Requests for Information, Examination, and Complaints). Each certificate of insurance filed with the commission for the coverage required under sec.5.205 of this title (relating to Minimum Limits of Financial Responsibility) shall be accompanied by a filing fee of $100. (b) In all instances in which the insurer or surety of a motor bus carrier becomes insolvent or becomes involved in a receivership or other insolvency proceeding, the motor bus carrier may apply for approval of a surety bond or insurance policy issued by another surety or insurer, upon filing with the commission an affidavit, executed by an owner, partner, or officer of the motor bus carrier, showing that no accidents or claims have occurred or arisen during the insolvency of the insurance carrier or surety, or that all damages and claims so arising have been satisfied. sec.5.207. Qualification as Self-Insurer. (a) General qualifications. The commission will give consideration to and may approve the application of a motor bus company to qualify as a self-insurer if such carrier furnishes a true and accurate statement of its financial condition and other evidence that establishes the ability of such motor bus carrier to satisfy its obligations for bodily injury and property damage liability, without affecting the stability or permanency of the business of such motor bus company. In lieu of other proof, the commission may accept evidence of the qualifications of a motor bus company as a self-insurer under the regulations of the Interstate Commerce Commission. (b) Applicant guidelines. In addition to filing an application as prescribed by the commission, an applicant for self-insurer status covering bodily injury and property damage claims involving motor vehicles shall submit materials that will allow the commission to determine whether: (1) The net worth of the applicant is adequate in relationship to the size of its operations and the extent of its request for self-insurance authority. The applicant shall demonstrate that it will maintain a net worth sufficient to ensure that it will be able to meet its statutory obligations to the public to pay all claims relating to motor vehicles in the event of loss. (2) The applicant has a sound self-insurance program. The applicant shall demonstrate that it has established, and will maintain, an insurance program that will protect the public against all claims involving motor vehicles to the same extent as the minimum security limits applicable under this title. A self- insurance program may include, but not be limited to, one or more of the following: reserves, sinking funds, third party financial guarantees, parent company or affiliate sureties, excess insurance coverage, or other equivalent arrangements. (3) The applicant has an adequate ongoing safety program. Applicant shall submit evidence of an adequate ongoing safety program that is in substantial compliance with the safety regulations adopted by the commission. (c) Other securities or agreements. The commission may consider applications for approval of other securities or agreements and may approve any such application if satisfied that the security or agreement offered will afford adequate security for protection of the public. (d) Periodic reports. Annual statements, semi-annual reports, and any other reports required by the commission reflecting the applicant's financial condition and status of its self-insurance program may be filed with the commission during the period of the motor bus carrier's self-insurer status. (e) Duration of self-insurer status. The commission may approve the applicant as a self-insurer for any specific time period, or for an indefinite period until revoked under the provisions of subsection (f) of this section. (f) Revocation of self-insurer status. The commission may at any time, upon ten days' notice to the self-insurer, require the self-insurer to appear and demonstrate that it continues to have adequate financial resources to pay all claims involving motor vehicles for bodily injury and property damage liability, and that it remains in compliance with the other requirements of this section, and any previous orders issued by the commission. If the applicant fails to so demonstrate, its self-insurer status may be revoked. sec.5.208. Compliance with Laws and Regulations. All motor bus companies shall conduct their operations in accordance with all applicable laws of the State of Texas and all applicable regulations of the commission. All certificates and permits issued by the commission are subject to applicable provisions of law and of these regulations as fully as if said regulations were set forth verbatim in each certificate or permit. sec.5.209. Prohibition of Unauthorized Services. No motor bus company shall perform any service or services within the jurisdiction of the commission except those which are authorized by a certificate or permit issued by the commission, or specifically authorized by these regulations for the class of which it is a member. sec.5.210. Use of Highways. (a) Each motor bus company shall use only those highways which are authorized by its respective certificates or permits. However, motor bus companies which operate in both interstate and intrastate commerce are not required to secure additional authority from the commission to use in interstate commerce any highway which is included in the intrastate operating authority granted by a certificate or permit issued by the commission. (b) All motor bus companies duly authorized to perform operations in interstate or foreign commerce in Texas pursuant to the provisions of the Interstate Commerce Act are hereby authorized to use the highways of this state to perform interstate operations within the commercial zone of any municipality, as provided by the order of the Interstate Commerce Commission in ex parte MC- 37, 49 United States Code sec.10526. sec.5.211. Operating Authority. (a) Certificate required. Motor bus companies may provide intrastate regular route passenger service in Texas only to the extent authorized in a certificate issued by the commission after demonstrating a need of public convenience and necessity or by the Interstate Commerce Commission pursuant to 49 United States Code sec.10922. (b) Duplicative authority prohibited. No motor bus company shall be granted operating authority duplicative of that held by such motor bus company under any existing certificate or permit. If a motor bus company receives additional duplicative authority by sale or transfer, the commission may provide for merger of the duplicative portion of such authority. (c) Sale, assignment, lease, or transfer of operating authority. (1) A certificate or permit may be sold, assigned, leased, or transferred, with the approval of the commission and upon payment of a tax equal to 10% of the amount paid as consideration for the certificate. (2) A person acquiring control over a motor bus company, whether through ownership of stock, merger, consolidation, or otherwise, shall, within 15 days after the day on which control is acquired, file notice of the change in controlling interest with the director. (3) Authority is dormant, and an application to transfer may be denied, if the commission finds that the authority, or any portion thereof, has been inactive for a period of at least three consecutive years, with no resumption of activity for a period of at least one year prior to the filing of the application. If a complaint alleging dormancy is filed against a certificate holder and the authority is shown to be dormant, then the complaint may be sustained and the dormant authority may be cancelled. Nothing in this section shall prohibit the commission from bringing on its own motion a complaint alleging dormancy. (4) A current intrastate operating report covering the operation in that portion of the year immediately preceding the sale, transfer, or lease of a certificate or permit must be furnished by the seller or lessor before final approval of the sale and transfer or lease will be given by the commission. (d) Charter operation. Authority to transport charter or special parties may be obtained by demonstrating a public convenience and necessity for such service. (e) Call and demand; irregular route service. A motor bus company may operate on a call and demand or irregular route basis, or both, provided such service is specifically authorized by its certificate and the service rendered qualifies under one or more of the following conditions: (1) the vehicle used in such service has a seating capacity of not more than 15 persons, including the driver; (2) the origin or destination point is an airport at which regularly schedule airlines depart and arrive; (3) the service rendered is dedicated to transporting handicapped or physically disabled persons, or both, in vehicles designed for the accommodation of wheel chairs; (4) the service rendered is transporting railroad train crews to or from train locations, or both, on rail sidings; or (5) the service rendered is transporting a ship's crew, shipping company personnel, maintenance or repair workmen, and servicing personnel when such transportation is necessary for the health, safety, and welfare of these persons or the operation, maintenance, and repair of oceangoing ships or vessels. (f) Provisions not applicable. A motor bus company that qualifies under any of the provisions of subsection (e) of this section shall not be subject to any regulations within this subchapter to the extent such other regulations would prohibit the special services authorized in this section. (g) Railroad crew motor bus companies. (1) Applications for railroad crew motor bus permits. Applications for contract motor bus permits shall be filed on forms prescribed by the commission. (2) Hearings and proof required. At hearing, in addition to producing the contracts listed in the application, the applicant must demonstrate that it has financial and operating fitness. Any person may protest an application for a railroad crew motor bus permit, subject to a motion to strike, upon a showing that the person has not justiciable or administratively cognizable interest in the application. The possession or operation of a railroad crew motor bus permit shall not alone constitute a justiciable or administratively cognizable interest in the application. (h) Government subsidized or mileage-reimbursed motor bus operations. (1) Exemption of government contract or subsidized motor bus operations. The commission may, upon receipt of a properly filed application on a form prescribed by the Commission, issue to a motor bus company a certificate authorizing the transportion of persons, together with such passengers' baggage, where such transportation service is provided pursuant to: (A) a contract between the motor bus company and a governmental body under which compensation for the transportation service is paid exclusively by the governmental body; (B) a grant or other subsidy agreement between the motor bus company and a governmental body under which the governmental body provides a direct operating subsidy to the motor bus company equal to at least one-half of total compensation for the transportation service; or (C) a contract pursuant to Texas Education Code, sec.21.181. (2) Restrictions. Operations under a government subsidized motor bus certificate are restricted. (A) to operations over irregular routes on a call-and-demand basis; (B) against transportation of the general public as presently being transported by regular route passenger carriers in direct competition with such carriers. (3) Copy of government subsidized motor bus certificate required in each vehicle. A copy of the government subsidized motor bus certificate must be carried in each vehicle operated under the certificate. Regulated transportation service of the general public is not authorized when provided in a vehicle which does not carry a copy of the certificate. (4) Term of government subsidized motor bus certificate. A government subsidized motor bus certificate shall, unless revoked by the commission, remain effective throughout the duration of the underlying contract or subsidy agreement. (5) Revocation of government subsidized motor bus certificate. The commission may, after notice and hearing, revoke a government subsidized motor bus certificate if the commission determines that the holder violated the terms of its certificate, the provisions of this subchapter, or the Texas Motor Bus Act, Texas Civil Statutes, Article 911a, in effect at the time the violation occurred. (6) Scope of authority. A motor bus company may, under a government subsidized motor bus certificate and notwithstanding any other provision of this subtitle, provide transportation service without: (A) a certificate of public convenience and necessity; (B) commission-authorized routes or schedules; and (C) a tariff of commission-prescribed rates. (7) Certain motor transportation regulations not applicable. A government subsidized or mileage-reimbursed motor bus company providing transportation service pursuant to this subsection shall not be subject to any regulations within this title to the extent such other regulations would prohibit the special services authorized in this section, except for regulations pertaining to insurance and safety. (8) Requests for issuance of a government subsidized motor bus certificate. A motor bus company may request issuance of a government subsidized motor bus certificate by filing with the commission: (A) proof of insurance as required by sec.5.205 of this title (relating to Minimum Limits of Financial Responsibility); (B) an equipment report as required by sec.5.221 of this title (relating to Equipment Registration and Cab Cards); (C) an executed copy of the involved grant or subsidy agreement or contract, showing the grant or agreement number; (D) where applicable, an affidavit establishing that the governmental body which is a party to the agreement is expected to provide direct operating subsidies to the motor bus company equal to at least one-half of total compensation for the transportation service; and (E) a $25 filing fee. (i) Transportation of Mexican national migratory workers. (1) A motor bus company may transport Mexican national migratory agricultural workers and their baggage under a certificate authorizing such transportation only when each worker has entered into a contract of employment with a farmer or farm organization, arranged by the United States Department of Labor, through its farm placement service, and when the employer of such worker has arranged with the motor bus company for the transportation of such worker and has agreed to pay all applicable transportation fares and charges directly to the motor bus company. (2) Certificates authorizing the transportation of Mexican national migratory agricultural workers shall not be construed to include the authority to transport any such person who is traveling while on furlough or leave of absence during any period of employment under a contract of employment or who tenders payment of the fare in cash. (3) Every motor bus company which operates under a certificate authorizing the transportation of Mexican national migratory agricultural workers shall make and keep records to reflect the following information for each worker or group of workers: (A) the number of such workers transported; (B) the date on which such transportation originated; (C) the points of origin and destination; (D) the amount collected by the motor bus company from the employer for the transportation; (E) the name and address of the employer; and (F) the name and address of the person who tendered payment for the transportation. (j) Rates to be approved. No motor bus company shall begin operations or perform any new service under its operating authority until rates, fares, or charges for the services to be performed shall have been approved by the commission. sec.5.212. Registration and Operation of Intrastate Certificates Issued by the Interstate Commerce Commission Pursuant to 49 United States Code sec.10922. (a) Registration. Each motor bus company to which the Interstate Commerce Commission issues Texas intrastate, regular route motor bus authority pursuant to 49 United States Code s10922 shall, within 15 days of receiving such certificate, register such authority with the commission. (b) Operation. Motor bus operations under Texas intrastate authority issued by the Interstate Commerce Commission pursuant to 49 United States Code sec.10922 shall, upon issuance, be subject to the rules, regulation, and practices of the commission as if such certificate had been issued by the commission. sec.5.213. Operations Wholly Within Certain Cities and Their Suburbs. (a) For the purpose of interpreting the phrase "wholly within the limits of any incorporated town or city, and the suburbs thereof, whether separately incorporated or otherwise": (1) the following are suburbs of Dallas: (A) all of each incorporated city or town that has any part of its territory within Dallas County; (B) all unincorporated areas lying within Dallas County; (C) all of each incorporated city or town that has any part of its territory within Tarrant County; and (D) all incorporated areas lying within Tarrant County; (E) Plano; and (F) The Colony. (2) the following are suburbs of Fort Worth: (A) all of each incorporated city or town that has any part of its territory within Tarrant County; (B) all unincorporated areas lying within Tarrant County; and (C) all of each incorporated city or town that has any part of its territory within Dallas County; and (D) all unincorporated areas lying within Dallas County; (3) the following are suburbs of Houston: (A) all of each incorporated city or town that has any part of its territory within Harris County: (B) all unincorporated areas lying within Harris County; and (C) Friendswood, Kemah, League City, Pearland, Sugarland, and the Woodlands; (4) the following are suburbs of San Antonio: (A) all of each incorporated city or town that has any part of its territory within Bexar County; (B) all unincorporated areas lying within Bexar County. (5) the following are suburbs of Amarillo: (A) the Pantex plant, at its present location; and (B) all unincorporated areas in Carson and Potter Counties that lie between Amarillo and the Pantex plant. (b) Any party to a proceeding involving an application for a motor bus certificate who asserts that an area not defined by this section is a suburb shall have the burden of proving that assertion. sec.5.214. Division of Certificate or Permit Authority.
                                          No division of operating authority conferred by either certificate or permit shall be permitted unless a written application is filed, notice issued, and public hearing held on the merits of such division. The form for such application to divide shall be promulgated by the commission. sec.5.215. Consolidation of Certificate or Permit Authority.
                                            No consolidating of operating authority conferred by either certificate or permit shall be permitted unless a written application is filed, notice issued, and public hearing held on the merits of such consolidation. The form for such application to consolidate shall be promulgated by the commission. sec.5.216. Compliance Pending Approval. In any transfer proceeding, whether sale, assignment, lease, transfer, or inheritance, the transferor shall maintain full compliance with the commission's requirements, which shall include without limitation, the filing of insurance certificates, payment of vehicle fees, and the filing of annual operating reports, until such transfer has been finally approved. sec.5.217. Voluntary Suspension.
                                              No motor bus company shall be authorized to suspend service under its certificate except by order of the commission after notice and hearing. sec.5.218. Cancellation, Suspension, and Reinstatement of Intrastate Certificates or Permits. (a) Conditions under which authority may be involuntarily suspended or cancelled. The intrastate certificate or permit of a motor bus company shall be subject to cancellation under any of the following conditions: (1) failure to provide evidence of continuous insurance or surety bond coverage as required by sec.5.205 of this title (relating to Minimum Limits of Financial Responsibility); (2) failure to maintain the required continuous insurance or surety bond coverage during the time the motor bus company holds an intrastate certificate or permit; (3) failure to file an annual operating report as required by sec.5.235 of this title (relating to Annual Report Required); (4) failure to register equipment as required by sec.5.221 of this title (relating to Equipment Registration and Cab Cards); (5) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension under the provisions of sec.5.217 of this title (relating to Voluntary Suspension). (b) Notice of insurance violation. Upon receipt by the commission of notification pursuant to this section that a motor bus company's surety bond, policy, or certificate of insurance will terminate after 30 days, the commission shall send a letter by first class mail advising the motor carrier or motor bus company that upon termination of such insurance it must cease all operations under its certificate or permit. (c) Notice of other violation. If any of the conditions enumerated in subsection (a)(2) and (4) of this section arises, the commission shall notify the motor bus company that its certificate or permit is subject to cancellation. Notification that a certificate or permit is subject to cancellations hall be by publication in the Transportation/Gas Utilities Division notice. (d) Extension of time for compliance. A certificate or permit shall not be subject to cancellation for noncompliance with insurance requirements if, prior to the termination of its current insurance, the motor bus company files proof of insurance in accordance with sec.5.205 of this title (relating to Minimum Limits of Financial Responsibility). The time for filing such proof of insurance may be extended for 30 days, during which time the certificate or permit will remain in good standing if, prior to the termination of its current insurance, the motor bus company files a certificate of insurance or a copy of an insurance policy, indicating new insurance at least equal in coverage to the current minimum levels established by the commission. For good cause, the period for filing operating reports, registering equipment, or for otherwise complying with applicable laws and regulations may be extended, in writing by the director, a maximum of 60 days, during which time the certificate or permit shall remain in good standing if a request for extension is filed with the commission prior to the motor bus company's certificate or permit having been made subject to cancellation. (e) Return to good standing prior to cancellation. (1) A certificate or permit which is subject to cancellation under this section for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsection (a)(1) of this section may be returned to good standing by the director if, before the issuance of a commission order cancelling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(1) of this section has been corrected, together with a fee in the amount of $1.00 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that there has been no lapse in insurance or surety bond coverage, only a failure to provide the commission with evidence of this coverage, shall include: (A) an affidavit duly executed by the insurance agent; or (B) a certificate of insurance from the insurance agent; or (C) any other evidence deemed acceptable by the commission. (2) A certificate or permit which is subject to cancellation under this section for failure to maintain the required continuous insurance or surety bond coverage as detailed in subsection (a)(2) of this section may be returned to good standing by the director if, before the issuance of a commission order cancelling, suspending, or amending the certificate or permit, the holder files proof that the condition which made the certificate or permit subject to cancellation under this subsection has been corrected, together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. Proof that the condition has been corrected shall include an affidavit duly executed by the holder of the certificate or permit showing that: (A) no accidents or losses have occurred; and (B) no claims have arisen; or (C) all damages, losses, and claims so arising have been satisfied. (3) A certificate or permit which is subject to cancellation under this section for failure to: (A) file an annual operating report; (B) failure to register equipment; and/or (C) failure to renew voluntary suspension or reactivate a suspended certificate or permit upon termination of voluntary suspension as detailed in subsection (a)(2)-(4), of this section, respectively, may be returned to good standing by the director if, prior to the issuance of a commission order cancelling, suspending, or amending the certificate or permit, the holder of the certificate or permit files proof that the condition which made the certificate or permit subject to cancellation under subsection (a)(2)-(4) of this section has been corrected, together with a fee in the amount of $10 for each day prior to filing under this subsection during which time the certificate or permit was subject to cancellation. (f) Cancellation. The commission may cancel, suspend, or amend any certificate or permit which is subject to cancellation under this section. No certificate or permit shall be cancelled, suspended, or amended without notice by certified letter mailed to the carrier's current address on file with the Railroad Commission pursuant to sec.5.243 of this title (relating to Registered Agent and Address for Service of Process) setting a time and place for hearing at which any interested party may appear to show cause why the certificate or permit should not be cancelled. (g) Surrender of certificates and permits, cards and plates, and cessation of operations. Upon issuance of a commission final order cancelling or suspending a certificate or permit, the motor bus company shall immediately return the certificate or permit, together with all cab cards in the motor bus company's possession, to the commission or to any duly authorized representative of the commission. The motor bus company shall concurrently cease all operations under the certificate or permit. (h) Reinstatement after cancellation. (1) Reinstatement of certificates or permits cancelled before enactment of this section. Certificates and permits cancelled prior to enactment o this section shall be final for all purposes. Such certificates or permits cannot thereafter be reinstated. (2) Reinstatement of certificates or permits cancelled after enactment of this rule. (A) Commission may provide for reinstatement in cancellation order. The Commission may, in the order cancelling a certificate or permit, provide that the certificate or permit may be reinstated if the holder files a reinstatement application within a specified period of time following issuance of the cancellation order. (B) Reinstatement authority of director. The Commission, in the order cancelling a certificate or permit, may provide that the certificate be reinstated by the director. Under this subsection, the director shall reinstate a cancelled certificate where the holder of the cancelled certificate files with the Transportation Division: (i) an application requesting reinstatement within the period provided in subparagraph (C) of this paragraph; (ii) evidence of insurance or surety bond coverage as required by sec.5.205 of this title (relating to Minimum Limits of Financial Responsibility); (iii) evidence that all fees have been paid; (iv) an equipment report as required by sec.5.221 of this title (relating to Equipment Registration and Cab Cards); and (v) an annual operating report as required by sec.5.235 of this title (relating to Annual Report Required). (C) Deadline for filing reinstatement applications. The deadline for filing of reinstatement applications specified in the cancellation order shall not be later than two years after the issuance of the cancellation order. (D) Reinstatement fee. (i) No application for reinstatement of a certificate or permit cancelled for failure to provide evidence of continuous insurance or surety bond coverage as detailed in subsections (a)(1) and (f) of this section shall be granted unless the application shall pay to the commission a reinstatement fee in the amount of $1.00 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. (ii) No application for reinstatement of a certificate or permit cancelled for failure to maintain the required continuous insurance or surety bond coverage, failure to file an annual operating report, failure to register equipment, and/or failure to renew voluntary suspension or reactivate suspended certificate or permit upon termination of voluntary suspension as detailed in subsection (a)(2)-(5) of this section, respectively, and subsection (f), shall be granted unless the applicant shall pay to the commission a reinstatement fee in the amount of $10 for each day prior to the filing of the reinstatement application during which time the certificate or permit was subject to cancellation. sec.5.219. Reinstatement Fee.
                                                Every application for reinstatement of a certificate or permit which has been cancelled or suspended shall be accompanied by a reinstatement fee of $25, and such fee shall be in the form of a cashier's check or money order and shall be made payable to the state treasurer. A separate reinstatement fee shall be required for each certificate or permit and the reinstatement fee shall be retained whether the reinstatement request is approved or not. sec.5.220. Motor Bus Equipment. (a) Vehicles. All motor bus companies shall provide and use motor buses which are safe, dependable, and adequate for public passenger transportation, and adapted to the service and routes in which they are operated. Each motor bus shall comply with the equipment provisions of Article XIV of the Uniform Act Regulating Traffic on Highways, Texas Civil Statutes, Article 6701d. Motor bus companies shall provide sufficient reserve equipment to assure reasonable compliance with time schedules. No motor bus shall be operated with any trailer or other vehicle attached. (b) Maintenance. Every motor bus shall be maintained in good physical and operating condition. Each motor bus shall be subject to inspection, repair, and replacement at the direction of the commission or its duly-authorized representative (Texas Civil Statutes article 6701d). (c) Heating system. Motor buses equipped with a heating system shall be maintained to provide comfortable temperatures in the interior of the bus. (d) Interior lighting system. Each motor bus shall have an interior lighting system capable of illuminating all of the interior except the portion occupied by the driver. The driver's seat shall be so shaded or otherwise protected from the light as to permit unimpaired vision to the driver. (e) Cleaning, disinfecting, and deinfestation. Each motor bus shall be totally cleaned, disinfected, and deinfested at least once in each 24 hour period. A record of such service shall be kept in the motor bus company's files, subject to inspection by authorized commission representatives. (f) Posted information. Each motor bus shall maintain a posting in the front of the motor bus, in a position clearly visible to all passengers, a sign bearing the name of the company operating the bus, the name of the driver, the certificate number under which it is operated, and a prohibition against conversation with the driver while the bus is in motion. sec.5.221. Equipment Registration and Cab Cards. (a) Each motor bus company shall identify all motor buses used in the conduct of its operations by filing an equipment report with the commission. This report shall be in the form prescribed by the director, and a separate report, along with the required fees, shall be filed for each certificate or permit under which operations are conducted. An equipment report filed on behalf of a sole proprietorship, partnership, or corporation shall be invalid unless signed by an owner, partner, officer, attorney, or designated agent. (b) Each motor bus company shall maintain at its principal office a current list of all motor buses registered with the commission. Such list shall be maintained in accordance with sec.5.242 of this title (relating to Maintenance, Preservation, and Destruction of Records). (c) No motor bus may be used in the performance of tariff services unless: (1) such bus bears a current cab card; or (2) such bus is identified on the motor bus company's current list of vehicles offered for use in the performance of tariff services. (d) Each motor vehicle operated in line haul service by a motor bus company shall bear a current cab card. When any motor bus is retired form service, all cards issued for that vehicle shall be returned to the commission immediately. (e) A cab card may be transferred from a motor bus that is retired from service to a motor vehicle which is substituted therefore upon the filing of a report in a form prescribed by the director, accompanied by the cab card of the retired vehicle. The fee shall be $1.00 for each motor vehicle so substituted. (f) A cab card that has been lost or destroyed may be replaced upon the filing of an application in the form prescribed by the director. The fee shall be $1.00 for each cab card so replaced. (g) The following provisions apply to the issuance of multiple cab cards: (1) No motor bus may be issued more than one cab card at any one time. (2) Where separate motor bus company certificates or permits are owned and operated by the same legal entity, or where separate motor bus company certificates or permits are owned by separate legal entities under common ownership and control, or where separate motor bus company certificates or permits are acquired by lease, duly approved by the commission, and such leased certificates or permits are operated under common control, each motor bus used in the conduct of operations may be issued more than one cab card. Written approval of the director shall be required. A motor bus company shall annually declare in writing to the director the status of ownership and control with regard to the involved certificates or permits, fully disclosing any changes in such ownership and control. The annual declaration required by this subsection shall be filed no later than 20 days prior to the anniversary date of approval. (h) Each motor bus company shall renew cab cards on or before the last day of November of each year. The annual fee for renewal of each cab card is the sum of $10 statutory fee plus a fee of $1.00 per seat of rated passenger seat capacity for each motor vehicle, plus a $1.00 charge for the cab card. If a motor vehicle is placed in service by such a motor bus company after the annual renewal date, the annual fee shall be prorated as follows:
                                                  Figure: 16 TAC s5.221(h) (i) All fees required by this section shall be satisfied by a cashier's check, certified check, or money order, payable to the state treasurer. To insure timely renewal and return of new cab cards, all reports and forms should be received by the Austin office of the commission no later than 15 calendar days prior to expiration. (j) A cab card may be transferred from a motor bus that is temporarily out of service to a motor bus which has been leased from a bona fide leasing company. The motor bus company shall attach the cab card of the out-of-service motor bus to the lease agreement, and carry such documents in the leased motor bus. The replacement motor bus must be fully covered by liability insurance as required by sec.5.205 of this chapter (relating to Minimum Limits of Financial Responsibility). The transferred cab card shall be valid for the replacement motor bus no more than 15 days after the date of the lease agreement. (k) Equipment reports. Each motor bus company shall identify and maintain a current list of all motor vehicles used in the conduct of its operations by filing an equipment report with the commission. This report shall be in the form prescribed by the commission. sec.5.222. Other Identifying Marks. Every motor bus used in the transportation of passengers for hire shall bear on both sides thereof the name of the carrier, the number of the vehicle, and the number of the certificate authorizing the service. The identifying signs shall be printed in letters not less than two inches in height, in sharp color contrast to the background, and shall be plainly legible for a distance of at least 50 feet. sec.sec.5.223. Conduct of Drivers and Passengers. (a) Conduct of Passengers. No officer, agent, or employee of a motor bus company shall knowingly: (1) permit any person who is under the influence of alcohol or any narcotic, hypnotic, or other drug which ordinarily produces abnormal or disturbing behavior, to enter into or ride upon a motor bus; (2) permit any person to possess, drink, or use any intoxicating beverage or narcotic, hypnotic, or other drug which ordinarily produces abnormal or disturbing behavior, on a motor bus; (3) permit any person to curse or use indecent or offensive language on a motor bus; (4) permit any passenger to conduct himself in a boisterous or disorderly manner, create unnecessary noise, annoy other passengers, or behave in such a manner as is reasonably calculated to cause a breach of the peace; or (5) permit any passenger to engage in conversation with the motor bus driver while the motor bus is in motion. It shall be the duty of the driver to warn any person who engages in the foregoing violations, and if such person persists, the driver shall have the right to eject the person in the nearest city, town, or village; and in case of a violation of the penal law, the driver shall report said person to a peace officer. (b) Right of transportation. No driver shall refuse to carry, from any regular stopping place or point along the highway, any person who tenders the prescribed fare to his proposed destination, unless the motor bus is filled to its rated capacity, or unless such person is disqualified for transportation under subsection (a) of this section. (c) Receiving and discharging passengers. No driver shall receive or discharge a passenger unless the bus is within a terminal or is stopped adjacent to the curb, the sidewalk, or the edge of the highway. (d) Railroad crossings. Before crossing at grade any track or tracks of a railroad, the driver of a motor bus shall stop the motor bus within 50 feet, but not less than 15 feet, from the nearest rail and, while stopped, shall listen and look in both directions along the track for any approaching train, and for signals indicating the approach of a train. sec.5.224. Tickets. (a) All one-way or round trip tickets issued by motor bus companies shall show at least the following information: (1) the number of the ticket as numbered consecutively in the motor bus company's own series at the time of printing; (2) the certificated name of the issuing carrier; (3) the points between which the ticket authorizes transportation; and (4) the date of issuance. (b) Continuous passenger ticket or pass will be prepared in duplicate and a copy of such ticket or pass will be maintained in the motor bus company's principal office subject to inspection by authorized representatives of the commission. In lieu of a duplicate copy, the carrier may maintain a stub or card which shall show all the information required by this section. (c) Refunds of unused portions of continuous passenger tickets or passes shall be made in accordance with tariff provisions authorizing such refunds. A complete record of all such refunds shall be kept and shall show the following: (1) ticket or pass number; (2) full explanation of the used and unused portion of the ticket or pass; (3) amount of refund; and (4) name of the person or firm to whom the refund is made. (d) All continuous passage tickets good for a specific period of time, or number of passes shall show the following: (1) the number of the ticket or pass as numbered consecutively in the motor bus company's own series at the time of printing; (2) the certificated name of the issuing carrier; (3) the points between which the ticket or pass authorizes transportation; (4) the period of time (beginning and ending dates) for which the pass or ticket authorizes transportation, and the days of the week on which the ticket or pass authorizes transportation; (5) the date of issuance; (6) the signature of the purchaser; (7) a validating stamp or the signature of the motor bus company employee issuing the ticket or pass; and (8) the total amount paid for the ticket or pass. sec.5.225. Credit Extended for Transportation. (a) Motor bus companies transporting passengers for hire may extend credit upon taking precautions deemed by the carrier as sufficient to assure payment provided that credit for such transportation shall not be extended beyond midnight of the 20th day of the month following the calendar month in which the transportation is performed. A complete record of such credit extended shall be maintained at the motor bus company's principal office. (b) Motor bus companies may extend credit to customers domiciled outside the continental limits of the United States for a period not to exceed 60 days from the date the transportation service was provided. sec.5.226. Trip Report Required. Each motor bus company transporting passengers for hire shall issue a trip report for each bus load or less than bus load. The trip report shall be maintained at the motor bus company's general office. The trip report shall accompany each bus and shall show at least the following information: (1) the certificated name and address of the issuing motor bus company; (2) the date of movement; (3) the number of the vehicle; (4) the driver's name; (5) the points of origin, destination, and intermediate stops where passengers are received or discharged; (6) the number of passengers embarking and debarking at each point along the route, including the origin and destination; (7) amount of monies collected; and (8) for charter trips, the following information shall be shown in addition to the information listed in paragraphs (1)-(7) of this section: (A) the name and address of the person or firm paying charges and the name and address of the person or firm ordering the charter, if different; (B) the mileage between the origin and the destination via the specified route; (C) mileage from the applicable equipment point to the origin and mileage from the destination to the applicable equipment point; (D) the times of arrival at and departure from the applicable equipment point, the origin, the destination, and any extra stops, not including rest stops, along the charter route; (E) the rate per mile for live and deadhead mileage (shown separately); (F) where hourly or waiting time charges apply, the beginning and ending time, in addition to any other information necessary for a complete explanation of such charges; and (G) where charges for nontransportation services apply, and the applicable tariff provides for such services, a description of the services rendered and the accompanying charge for each service. sec.5.227. Claims for Loss or Damage. (a) Filing of claims. (1) A claim for loss or damage, to a passenger's baggage must be filed in writing with the motor bus company. The use of a claims form set out in an applicable tariff is recommended but not required. (2) The claim must contain facts sufficient to identify the baggage, and make demand for payment of a specified or determinable amount of money. (3) Appraisal reports of damage, inspection reports issued by motor bus company's inspectors, or tracers or inspection requests, cannot be substituted for a written claim but may be used to supplement or support a written claim. (b) Documents required in support of claims. A claim must be accompanied by the following: (1) the original or a copy of the baggage claim ticket. (2) documentation to establish the value of the property. (3) when an asserted claim for loss cannot otherwise be confirmed by the motor bus company, if the motor bus company requires, a signed statement that the property covered by the claim has not been received. (4) when the interest of the claimant in the property involved does not appear from the documents submitted, the carrier may require a written assignment or other documentation of claimant's interest. (c) Acknowledgement and disposition of claims. (1) Each motor bus company which receives a written claim for loss of or damage to baggage transported shall acknowledge receipt of the claim in writing to the claimant within 15 calendar days after receipt by the motor bus company or the motor bus company's agent, unless the motor bus company pays or declines to pay the claim within that 15 days. (2) The motor bus company shall pay, decline to pay, or make a firm compromise settlement offer in writing to the claimant within 60 days after receipt of the claim by the motor bus company or its agent. If, for reasons beyond the control of the motor bus company, the claim cannot be processed and disposed of within 60 days after receipt, the motor bus company shall at that time and at the expiration of each succeeding 30-day period while the claim remains pending, advise the claimant in writing of the status of the claim and the reasons for the delay in final disposition. (d) Inconsistent claims. When two or more motor bus companies have been presented with a similar claim on the same baggage, the motor bus companies may require further substantiation from each claimant to the extent necessary to resolve any overlap or conflict. (e) Inspection by motor bus company. The motor bus company shall inspect damage baggage as soon as practicable after being notified and requested to inspect by the passenger, but no later than fifteen normal working days after that request. The motor bus company shall make a written report of the results of the inspection and provide the original to the passenger. (f) Any and all items or provisions of tariffs which are the basis for the operation of motor bus companies are superseded to the extent that they conflict with the provisions of this section. sec.5.228. Stations and Terminals. (a) Requirements. Each motor bus company shall maintain stations or terminals to meet the needs of the public, in locations that do not impede or interfere with the normal flow of traffic. (b) Station facilities. Each station shall be kept in a clean and sanitary condition. Each station shall be adequately lighted and heated during hours of use. At least 50% of each station's toilet facilities shall be usable without charge. (c) Prohibited conduct. No person shall be permitted to loiter, drink intoxicating beverages, or behave in a disorderly manner in a station's waiting room or rest room. (d) Rest stops. Immediately before leaving any station or terminal the driver shall announce all scheduled rest stops. Upon arriving at a rest stop, the driver shall announce the location of the toilet or rest room facilities. (e) Posting schedules. Each motor bus company shall post its current schedule of arrivals and departures in a conspicuous place, readily available for public inspection, at each station, terminal, or place where passengers are regularly received or discharged. sec.5.229. Routing. (a) Routing of passengers. A prospective passenger shall be ticketed over the shortest available route or routes, for the earliest scheduled arrival, unless the prospective passenger requests otherwise. Every passenger shall be entitled to the free transportation of baggage over the route for which the passenger purchases a ticket or holds a pass. (b) Interruption of service. Each motor bus company shall promptly report in writing to the commission an interruption in service which is likely to continue for more than 24 hours, stating in detail the cause of the interruption and its expected duration. (c) Deviation from authorized routes. No motor bus company shall deviate from its designated or authorized routes except where the condition of the highway or street necessitates a detour. sec.5.230. Establishment, Change, or Discontinuance of Bus Schedules. (a) Initial schedules of motor bus service on wholly intrastate routes. Except as provided in subsection (d) of this section, the schedules of service filed with the application for the certificate under which the service is authorized shall be the motor bus company's authorized schedules upon issuance of the certificate unless the commission's order granting the certificate provides otherwise. The schedules of service filed with an application to sell and transfer a certificate shall be the transferee's authorized schedules upon reissuance of the certificate to the transferee, unless the commission's order authorizing the sell and transfer provides otherwise. If no schedules of service were filed with the application pursuant to which the motor bus company acquired the certificate, the company must file an application to establish authorized schedules. (b) Authorization to establish, change, or discontinue schedules. Motor bus companies are prohibited from establishing,changing, or discontinuing schedules of service on a route over which the carrier provides only intrastate service until the proposed establishment, change, or discontinuance has been approved by order of the commission. Extra buses may be operated on any approved schedule in order to meet a temporary demand for service. (c) Compliance with schedules. Each motor bus company shall comply with all schedules throughout its routes, whether or not its equipment is loaded. Departure of a connecting bus may, however, be delayed for a reasonable period of time in order to receive through passengers from an incoming motor bus. If a departure is delayed for one hour or more, notice of the delay shall be given to each station along the route affected. (d) Notice of proposed change or discontinuance. (1) Each motor bus company shall, with respect to each discontinuance for which commission approval is required, file with the commission: (A) a copy of the proposed change or discontinuance; (B) written certification that a copy of the proposed change or discontinuance was served, at the same time and in the same manner as notice was served on the commission, on the appropriate officer or officers or owners of connecting motor bus companies and of competing motor bus companies, and on all mayors and county judges of jurisdictions affected by the proposed change or discontinuance; and (C) a verified statement of facts identifying which of the three classifications described in subsection (b) of this section for which commission approval is required includes the proposed discontinuance. (2) Each motor bus company shall, except as provided in paragraph (3) of this subsection, file the following materials with the commission at least 30 days prior to the effective date of any proposal to change or discontinue one or more schedules of service where commission approval is not required: (A) a copy of the proposed change or discontinuance; (B) a letter, addressed to the commission, certifying that the motor bus company has posted notice of the proposed schedule change or discontinuance in each affected terminal and commission agency and in each bus serving such route, thereby giving notice to the affected public. The letter must be signed by an authorized officer, employee, or agent of the motor bus company, and such signature shall be the motor bus company's certification that all facts stated therein are true and correct. (3) A motor bus company may, upon receipt of special permission from the commission, change or discontinue a schedule of service on less than 30 days' notice. The notice shall reflect the special permission number assigned by the commission and that the commission has authorized the change or discontinuance on less than 30 days' notice. (e) Application procedure. A motor bus company seeking authorization from the commission for the change or discontinuance of one of more schedules of service must file an application in accordance with the provisions of this subsection. Applications shall be in the form prescribed by the commission. (f) "Park and ride" and college service. (1) The provisions of subsection (b) of this section shall not apply to schedules which relate exclusively to: (A) "park and ride" commuter service in which regulated motor bus service is provided commuter passengers to and from a designated vehicle parking area; and (B) regulated commuter transportation of students, faculty, employees, or other persons to or from college or university campuses. (2) Each motor bus company operating under this subsection shall, at least five days prior to instituting any change or discontinuance of a schedule or motor bus service: (A) file with the commission a copy of the proposed change or discontinuance; and (B) post copies of the proposed change or discontinuance conspicuously in each of the carrier's vehicles operated on such schedule and at each of the carrier's terminals involved in such schedule. (3) Any interested person may protest a proposed schedule change or discontinuance with respect to which notice was filed in accordance with paragraph (2) of this subsection. The commission may, if it determines that the change or discontinuance does not promote the public convenience and necessity, order the carrier to reinstitute the previous schedule. (4) The following provisions apply to refunds: (A) Any person who has purchased advance coupons or tickets or otherwise made advanced payment for service on a schedule which is changed or discontinued may demand a refund or the portion of such payment relating to unused service, provided such demand is submitted in writing within 15 days after the change or discontinuance takes effect. Each motor bus company shall, within 20 days after receipt of a written demand refund the portion of any advance payment relating to unused service. Failure to remit the full refund within 20 days will entitle the person by whom advance payment was made to a refund in an amount equal to twice the amount of the initial demand. (B) The portion of any advance payment relating to unused service shall be defined to be the original purchase price of any unused coupons or tickets, or a portion thereof, prorated by the relative number of coupons and/or tickets used and unused; or the amount of advance payment for other than coupons or tickets, or a portion thereof, prorated by the number of trips used and unused, if this can be determined from records of the carrier or user, or by the relative number of days preceding and following the change or discontinuance (beginning with the first day of which the change or discontinuance is effective) if trips cannot be ascertained from records of the carrier or user. sec.5.231. Connecting Line Agreement. (a) No motor bus company shall make or offer to make any contract for transportation which necessitates the service of any other carrier unless it has entered into an agreement which binds the connecting carrier to honor it in full. No motor bus company shall enter into a connecting line agreement with any carrier which is not in full compliance with all the requirements of this subchapter. (b) Every motor bus company shall file with the commission either an affidavit that it does not perform any interchange or interline service, with a copy to all connecting carriers by registered mail or a bond in the penal sum of $10, 000, payable to the secretary of the commission, with a corporation duly authorized under the laws of Texas to make such bonds as surety, conditioned as follows: (1) that the principal therein will well and truly pay and discharge to every other motor bus company with which it interlines passengers, all sums due and owing to any one or all of such companies for interline balances and other sums growing out of, connected with, or incident to, the interchange of passengers, or otherwise. (2) that recovery upon any such bond by any such connecting motor bus company by a direct suit shall not defeat other and further recoveries, but successive recoveries may be had; (3) the payment of one or more claims thereunder will not reduce the penal amount of the bond by the sum or sums so paid; (4) that connecting carriers may maintain direct suits thereon against the surety; and (5) that the insolvency of the principal shall not affect the obligation of the surety. (c) Motor bus companies holding authority from the commission to perform regular route service may enter into agreements with connecting regular route motor bus companies to interchange vehicles at common service points to permit through bus operations. sec.5.232. Rates, Fares, and Charges of Motor Bus Companies Operating a Wholly Intrastate Route, Charter, or Call and Demand Service. (a) Applicability. The provisions of this subsection are applicable only on motor bus companies operating wholly intrastate routes, charters or call and demand service. (b) Rates to be approved. No motor bus company shall begin operations or perform any new service under its operating authority until rates, fares, or charges for the services to be performed shall have been approved by the commission. With the exception of special rate procedures provided in this chapter, all applications to establish or change rates shall be filed in accordance with the provisions of Chapter 5, Subchapter U of this title (relating to General and Special Rules of Practice and Procedure). (c) Assessment of unauthorized rates, fares, and charges prohibited. Motor bus companies are prohibited from charging, collecting, demanding, or receiving any rate, fare, charge, or other compensation other than the lawful rates, fares, and charges prescribed by order of the commission. (d) Rates, Increases and Decreases. (1) Rate increases. (A) Rate increases applicable to regular route motor bus passenger service shall be effective only when prescribed by order of the commission. (B) Applications for regular route motor bus passenger service rate increases shall be filed with the commission on forms prescribed by the director. (2) Rate decreases. (A) Rate decreases applicable to regular route motor bus passenger service on one or more routes over which the proponent carrier provides only intrastate service, may become effective when filed with the commission or on any date thereafter. (B) Notice of a proposed rate reduction must be served on the commission. Notice shall be deemed to have been served on the commission upon receipt by the commission. (C) The proponent carrier shall serve a copy of a tariff or tariff supplement reflecting the proposed rate decrease, together with a cover letter describing the nature and extent of decrease and certifying service of the tariff or tariff supplement on all connecting and competing carriers in accordance with the provisions of this subparagraph. (D) The commission may, upon filing of a complaint, order that a rate decrease applicable on one or more routes be suspended, pending hearing and final disposition of the complaint if the complaint contains a verified statement of facts showing that the rate decrease involves predatory pricing. sec.5.233. Rate-making. (a) Policy. To ensure just, reasonable and nondiscriminatory rates for all regulated transportation services. (b) Procedures. The commission will follow and enforce collective rate-making procedures for all transportation services for which it prescribes rates. Such procedures shall ensure that the revenues and expenses of motor bus companies are ascertained for the transportation service provided or proposed to be provided. Nothing in this chapter shall be construed to prohibit independent action by any person in a rate application. (c) Enforcement. Failure on the part of any motor bus company to comply with the commission's rate-making procedures may result in suspension or cancellation of the motor bus company's operating authority. (d) Standards. Rates set by the commission shall be reasonable to the traveling public and reasonably compensatory to the involved motor bus company. Rates shall be set at a level that will cover the operating expenses of the involved motor bus company and may provide a reasonable margin in excess of those expenses. sec.5.234. Collective Rate Applications. (a) Applications. Applications to establish or change rates, deviation requests, and petitions to suspend deviations from commission-prescribed base rates and charges, may be submitted and prosecuted, or opposed by an authorized carriers association on behalf of a motor bus company pursuant to an agreement which has been approved by the commission under the provisions of this section. Applications, protests or interventions in opposition filed by an association must disclose, by reference to documents on file with the commission or otherwise, on whose behalf the application, protest, intervention, deviation request or suspension petition is filed. (b) Function of group representation. The policy of the Texas Legislature, as declared in Texas Civil Statutes article 911a, sec.4(a), as amended, is to insure just, reasonable, and nondiscriminatory rates, charges, and classifications for all carriers, shippers, and users of regulated transportation services for which the commission prescribes rates, charges, and classifications. The commission is directed, in sec.4(a), to establish collective rate-making procedures which will operate to insure just, reasonable, and nondiscriminatory rates, charges, and classifications. The role of carrier associations acting pursuant to agreements approved by the commission under this section and in accordance with requirements of this title relating to Collective Rate Making Procedures is essential to administration of the system or rates, charges, and classifications mandated by the legislature. (c) Standards for approval or disapproval. The commission shall grant an application for approval of an agreement concerning group representation only if: (1) the agreement complies with the collective rate-making provisions of Texas Civil Statutes Article 911a, sec.4(a) , and with this section; (2) the bylaws of the association expressly acknowledge the right of: (A) any member or nonmember carrier, shipper, receiver, or other member of the affected public to formulate, prepare, submit, prosecute, or oppose an application to establish or change rates, charges, or classifications; and (B) any member carrier to formulate, prepare, submit, prosecute, or oppose an application to establish or change rates, charges, or classifications without notice to or the consent or assistance of the association or its other members. (3) the bylaws of the association expressly provide that: (A) the association shall not, on its own behalf, formulate, prepare, submit, prosecute, or oppose any application to establish or change rates, charges, or classifications: (B) no action shall be taken on behalf of the association to inhibit the exercise of the rights described in paragraph (2)(B) of this section; and (C) applications or protests/interventions in opposition filed by an association pursuant to an agreement approved by the commission must disclose, by reference to documents on file with the commission or otherwise, the motor bus company on whose behalf the application or protest/intervention was filed; and (4) the commission determines that approval of the agreement is essential to its administration of system of collective rate-making for motor bus companies and passengers of regulated transportation services. (d) Contents of application for approval of such agreements. The application and supporting exhibits shall show, in the order indicated, with the following paragraph designations, the following information. (1) Full and correct name and business address (street and number, city and zip code, county and state) of the application; whether application is an association, corporation, or partnership; if a corporation, the government, state, or territory under the laws of which the applicant was organized and received its present charter, and, if an association or a partnership, the names of the officers or partners and date of formation. (2) Full and correct name and business address (city and state) of each carrier on whose behalf the application is filed and whether it is an association, a corporation, individual, or partnership. (3) If the agreement of which approval is sought pertains to a conference, bureau, committee, or other organization, a complete description of such organization, including any subunits, and of its or their functions and methods of operation, together with a description of the territorial scope of such operations; and, if such organization has a working or other arrangement or relationship with any other organization, a complete description of such arrangement or relationship. If the agreement is of any other character, a precise statement of its nature and scope and the mode of procedure thereunder. (4) The facts and circumstances relied upon to establish that the agreement will be in furtherance of the Texas transportation law and policy as declared in the constitution and statutes of this state and in the regulations and rules of this commission, as amended. (5) The name, title, and post office address of counsel, officer, or other person to whom correspondence in regard to the application should be addressed. (e) Required exhibits. There shall be filed with and made a part of each original application, and each copy, the following exhibits: (1) As Exhibit 1, a true copy of the agreement. (2) As Exhibit 2, if the agreement pertains to a conference, bureau, committee, or other organization, a copy of the constitution, bylaws, or other documents or writings, specifying the organization's powers, duties, and procedures, unless incorporated in the agreement filed as Exhibit 1. (3) As Exhibit 3, if the agreement relates to a conference, bureau, committee, or other organization, an organization chart. (4) As Exhibit 4, if the agreement relates to a conference, bureau, committee, or other organization, a brief description of the manner by which the applicant is funded. (f) Procedure. The following procedure shall govern the execution, filing, and disposition of the application: (1) The original application shall be made under oath and shall be signed by an officer if an association, or a partner if a partnership; and if a corporation, by an executive officer having knowledge of the matters therein contained; and shall show, among other things, that the affiant is duly authorized to verify and file the application. (2) The original application and supporting papers and five copes thereof for the use of the commission shall be filed with the director of the Transportation/Gas Utilities Division of the commission. Each copy shall bar the dates and signatures that appear in the original and shall be complete in itself, but the signatures in the copies may be stamped or typed, and the officer's seal may be omitted. (3) A public notice will be issued by the commission and filed with the Texas Register Division, stating the fact that such an application has been filed hereunder. (4) Any protest against the granting of an application shall be filed in accordance with provisions of the General and Special Rules of Practice and Procedures. (g) New parties to an agreement. Where a carrier becomes a party to an agreement which has been approved by the commission, such approval will extend and be applicable to such carrier upon the filing with the commission by the authorized agent of the parties to the agreement of a verified statement that the carrier has become a party to the agreement, which statement shall show the information required by subsection (d)(2) of this section, provided that no change is made in the agreement except the addition of such carrier. (h) Notice of action by a member carrier. When action is taken by a carrier pursuant to an approved agreement under this regulation, notification thereof will be given by the agent to the same extent and in the same manner that the agent gives notice of actions proposed under procedures for collective consideration of the parties to the agreement; no other joint or collective procedures under the agreement are thereby invoked. (i) Amendments to approved agreements. Amendments to approved agreements (other than as to new parties) may become effective only after prior approval of the commission. sec.5.235. Annual Report Required. On or before the 15th day of May of each year, every motor bus company shall file with the commission a report of intrastate revenues, expenses, and other statistics required by the commission, for the calendar year ending on the preceding December 31. Each annual report shall be made on the form prescribed by the commission. The commission or director may require any carrier or carriers to file any accounting report that may be needed to determine the reasonableness of motor bus company's rates and charges. sec.5.236. Annual Review of Motor Bus Base Rates and Charges. (a) The commission shall review the base rates, fares, and charges for the transportation of passengers by motor bus companies on an annual basis. Adjustment to such base rates, fares, and charges shall be made by the commission, if necessary, so as to make such base rates, fares, and charges just and reasonable and to ensure that such base rates, fares and charges cover the carriers actual operating costs incurred in transporting passengers plus a reasonable margin. (b) On its own motion or on application of any person with an administratively cognizable or justiciable interest, the commission may review the base rates, fares, and charges for the transportation of passengers by motor bus at such other times as may be necessary to ensure that such base rates, fares, and charges are just and reasonable and cover the involved bus company's actual operating costs plus a reasonable margin. (c) The commission shall institute a motor bus rate investigation in accordance with this title each calendar year. The initial motor bus base rate investigation shall be initiated prior to September 30, 1990. (d) The commission may require motor bus companies to produce relevant revenue, expense, and other data necessary for the commission to determine whether the existing base rates, fares, and charges are just and reasonable, and whether the base rates, fares, and charges cover the bus company's actual operating costs incurred in transporting the involved shipments plus a reasonable margin. (e) If, in the interest of economy and efficiency, the commission shall deem it appropriate, the commission may conduct an informal investigation of existing base rates, fares and charges. After such informal investigation of existing base rates, fares, and charges, the commission may issue a notice of its intent to issue an order finding some or all of the existing base rates, fares, and charges to be just and reasonable, and finding that they continue to cover the bus company's actual operating costs incurred in transporting passengers plus a reasonable margin. (f) Such notice shall be published in the Transportation Weekly Notice, and shall be posted in all stations of all bus companies subject to base rates by such bus companies. The notice shall state that the existing base rates, fares, and charges will continue in effect, unless a protest is received within the stated time period. (g) If no protest is received with regard to a base rate, fare, or charge, the commission may issue an order finding that the base rate, fare, or charge continues to be just and reasonable, and that it continues to cover the bus company's actual operating costs incurred in transporting passengers plus a reasonable margin, and continuing the base rate, fare, or charge in effect without change. (h) If a protest is received to the proposed finding in regard to a base rate, fare, or charge, the commission shall docket that protest, and investigate the base rate, fare, or charge. All protestants and all motor bus companies subject to the tariff containing the challenged base rate, fare, or charge shall be parties of record in the investigation. The commission shall be responsible for all original transcript charges. This investigation shall be held in accordance with the contested case provisions of Subchapter U of this title (relating to General and Special Rules of Practice and Procedure) and shall be determined in accordance with the contested case provisions of the Administrative Procedure Act, Texas Government Code, Chapter 2001. sec.5.237. Deviations from Motor Bus Base Rates. (a) Motor bus companies shall be permitted to deviate from prescribed base rates, fares, or charges for the transportation of passengers in accordance with the provisions of this section. No deviation from any base rate, fare, or charge shall be permitted except in accordance with the provisions of this section. (b) Motor bus company(s) proposing to deviate in accordance with the provisions of this section must file a deviation request with the commission under the provisions set forth in this section. No deviation shall become effective unless it has been approved for publication pursuant to the provisions of this section. (c) Motor bus company(s) shall be permitted to deviate by an amount not to exceed 15% above, or 50% below, the applicable base rate, fare, or charge for the transportation of passengers. (d) The percentage of deviation shall not be affected by subsequent adjustment of the base rate, fare, or charge. (e) Motor bus company(s) proposing to deviate from an established base rate, fare, or charge must file a deviation request with the director on a form promulgated by the director, setting forth the name, address and telephone number of the application bus motor company(s); the tariff and item number thereof affected by the proposed percentage of deviation currently applicable to the base rate, fare, or charge, if any; the origins and destinations for which the proposed deviation will apply, if any; and the circumstances or conditions under which the deviation is proposed to be effective, if any. The deviation request shall be accompanied by a filing fee of $25. (f) No deviation request may be filed by a motor bus company(s) if that motor bus company(s) has filed a deviation request, not yet published in the weekly notice pursuant to subsection (j) of this section, which is applicable to the same traffic. (g) Upon filing of a deviation request by a motor bus company(s), the director shall determine whether the motor bus company(s) is permitted to file a deviation request; whether the proposed deviation is permissible under this section; and whether the proposed deviation meets the requirements of this section. If the proposed deviation meets the requirements of this subsection, the proposed deviation shall be approved for publication by the director. The director shall mail written notice of the approval to the address specified in the request pursuant to subsection (e) of this section, within two working days of filing. (h) If the proposed deviation does not meet the requirements of subsection (g) of this section, the director shall attempt to notify the applicant motor bus company(s) of the rejection by telephone within two working days of the filing of the deviation. The director shall mail written notice of the rejection to the address specified in the request pursuant to subsection (e) of this section, within two working days. The written rejection of the proposed deviation shall include the reason for the rejection. (i) If the proposed deviation is approved for publication, it shall be effective five days after filing. (j) All deviations approved for publication shall be published in a weekly notice of deviation. sec.5.238. Publication of Deviations. All tariffs which include base rates, fares, and charges adopted pursuant to sec.5.236 of this title (relating to Annual Review of Motor Bus Base Rates and Charges) shall be supplemented no less frequently than monthly to reflect all deviations filed with the commission, as well as those deviations which have been suspended by order of the commission. If no deviations have been filed since the last supplement, an additional supplement is not required to be issued. sec.5.239. Suspension of Deviations. (a) Any interested person shall have the right to petition the commission for suspension of a deviation published and effective in accordance with this section. Any petition for suspension must be filed within 15 days from the date of the weekly notice in which the subject deviation appears. (b) The commission shall suspend any deviation which results in predatory pricing. (c) With regard to deviations by a motor bus company, a deviation which results in predatory pricing is a deviation which results in a rate, fare, or charge: (1) which is below the motor bus company's actual variable operating costs; (2) which is more than 25% above the motor bus company's actual total operating costs; or (3) which is unduly discriminatory. (d) The director may order the motor bus company(s) proposing the deviation to produce such records, documents or other evidence as may be necessary to resolve the issues in suspension proceedings. (e) The deviation rate or charge under review in a suspension proceeding shall remain in effect until suspended by the commission. If the commission determines that the deviation results in predatory pricing, the commission may: (1) suspend the motor bus company(s)' deviation from the base rate; (2) direct the motor bus company(s) to charge and collect the base rate; (3) direct the motor bus company(s) to repay any overcharges and collect any undercharges; and (4) order other or additional relief as it finds appropriate, including but not limited to administrative fines and penalties. (f) Any affected motor bus company(s), passenger or other person with an administratively cognizable or justiciable interest, including the commission on its own motion, may file a petition to suspend a deviation which has been field pursuant to this section. A petition for suspension must be filed with the commission within 15 days from the date of the weekly notice in which the subject deviation appears. A petition for suspension shall be accompanied by a filing fee of $25. (g) A suspension petition shall be filed with the director and shall set forth; (1) the name of the complaining person(s); (2) an identification of the subject deviation(s); and (3) a statement of the grounds asserted for the sought suspension. (h) The petitioner must serve the suspension petition on the respondent motor bus company(s). Upon receipt of the suspension petition the director shall issue a notice of hearing compelling the petitioner(s) and the respondent(s) to appear at a designated time and place. (i) A suspension petition shall be posted pursuant to the Open Meetings Act, Texas Civil Statutes, Article 6252-17, for commission consideration of an interim order at the next regularly scheduled commission conference following the hearing on the suspension proceeding, or as early thereafter as is reasonably possible. (j) If the respondent(s) fail to comply with an order to produce records, documents or other evidence issued pursuant to this section, such failure shall constitute prima facie proof that the deviation results in predatory pricing, and the commission may suspend the deviation. (k) The commission shall suspend the deviation on an interim basis if it is shown by clear and convincing evidence that the deviation results in predatory pricing as defined in this section. The commission may also impose any other sanction allowed by this section. (l) The final disposition of any suspension proceeding shall be in accordance with all applicable contested case provisions of the Administrative Procedure Act, Texas Government Code, Chapter 2001. (m) A deviation may be withdrawn by the motor bus company(s) only after a petition for suspension has been filed. After withdrawal, the deviation will no longer be effective. The commission may order any relief provided for in this section if the commission determines that the withdrawn deviation resulted in predatory pricing. sec.5.240. Specific Rates and Charges. (a) In addition to the base rates, fares, and charges established pursuant to sec.5.236 of this title (relating to Annual Review of Motor Bus Base Rates and Charges), the commission may establish specific rates, fares, and charges applicable to the transportation of passengers by motor bus companies. (b) No motor bus company(s) shall be permitted to deviate from specific rates established pursuant to subsection (a) of this section. sec.5.241. Records Required. (a) Records of operations. Motor bus carriers operating under certificates issued by the Railroad Commission of Texas will keep accurate records of such operations which will be subject to inspection by Commission representative. Tickets, trip reports, charter orders, etc., will be maintained by the motor bus carriers in their files with complete information related to the transportation service performed. Every motor bus company and each of its agents operating under a certificate or permit shall make and maintain complete and accurate records in accordance with acceptable accounting guidelines of all services performed for others whether or not such services are governed by a tariff. (b) Maintenance, preservation, and destruction of records. (1) Texas Firms: Every motor bus company domiciled within the State of Texas shall keep at a principal Texas office all books, records, accounts, and other documents required by these regulations or by tariffs published, prescribed, or approved by the commission, unless for good cause shown, the director permits such records to be maintained at another place, on the undertaking of the motor bus company to tender such records upon request or demand of the commission at a designated place approved by the director. (2) Out-of-State Firms: Every motor bus company which operates in intrastate commerce within the State of Texas whose principal office is located outside of the State of Texas, or outside of the continental United States, shall, upon request or demand of the commission or of any of its duly authorized agents or representatives, tender, at the place in Texas designated by the motor bus company in its last previous annual report, or if no place in Texas is designated in such annual report, at the place designated by the commission, all of the books, accounts, and records required by these regulations or by tariffs published, prescribed or approved by the commission. (3) All documents required pursuant to this subchapter must be retained by each motor bus company for at lease two years. sec.5.242. Examination of Facilities and Records. (a) Each motor bus company, its proprietors, officers, directors, employees, receivers, trustees, or other representatives having control, directly or indirectly, over any motor bus company, and all persons affiliated with such motor bus company, shall permit any authorized agent or representative of the commission, upon presentation of identification, to inspect or examine all motor vehicles, records, reports, or other documents required to be kept or made pursuant to this title. The motor bus company shall also provide adequate work space with reasonable work conditions at its office, or at a location near its office, for the inspection, copying, and examination of its records. (b) Each motor bus company shall maintain at each of its billing stations, and make available for inspection to the public at all reasonable times, the motor bus company's tariff containing the lawful rates and charges applicable to such motor bus company. sec.5.243. Registered Agent and Address for Service of Process. Each motor bus company shall have and continuously maintain with the commission for the purpose of administrative or civil service or process: (1) a registered office in Texas that may be, but need not be, the same as its principal place of business; and (2) a registered agent that is either an individual resident of Texas whose business office is identical with such registered office, a domestic corporation, or a foreign corporation authorized to transact business in Texas that has a business office identical with such registered office. sec.5.244. Forms. All forms required by these regulations or by the rules shall be prescribed by the director, subject to the approval of the commission. On the promulgation of any form by the director, it shall be presumed that it has been approved by the commission as to substance and form. sec.5.245. Procedure. To the extent that matters of procedure are not covered by a specific rule Subchapter U of this chapter (relating to General and Special Rules of Practice and Procedure) shall apply. sec.5.246. Administrative Sanctions. (a) Purpose and scope. (1) The purpose of this section is to establish hearing and related procedures which the agency will follow when administrative penalties are sought against any motor bus company or other person whomsoever under authority of: (A) Texas Civil Statutes, Article 911a, and (B) Texas Civil Statutes, Article 6701d, sec.139. (2) This section establishes procedures to interpret, clarify, and supplement requirements and procedures described in each of the Texas Civil Statutes listed inn paragraph (1) of this subsection. The agency will follow the requirements and procedures in these statutes, the procedures in this section, and the provisions of the Administrative Procedure Act, Texas Government Code, Chapter 2001. If there is any conflict between the statutes and this section, the statutory requirements and procedures shall be followed. (3) Any references in this section to statute or statutes means a statute or the statutes described in paragraph (1) of this subsection of the Administrative Procedure Act, Texas Government Code, Chapter 2001. (b) Assessing administrative penalties. (1) Except as provided in subsection (b)(1)(A) and (B) of this section, any person or motor bus company that violates any provision of Texas Civil Statutes, Article 911a, respecting safety, certificates or rates or any commission rule, regulation, or order respecting safety, certificates, or rates may be assessed a penalty of up to $10,000. (A) Any motor bus company that violates the Uniform Act Regulating Traffic on Highways, Texas Civil Statutes, Article 6701d sec.139, or any regulation adopted under such section shall be subject to a penalty not to exceed the maximum amount that may be assessed for violation of current federal regulations and their subsequent amendments under the Hazardous Materials Regulations (49 Code of Federal Regulations, Parts 101-199) and the Federal Motor Carrier Safety Regulations (49 Code of Federal Regulations, Parts 386 and 388-399). (B) In addition to any monetary penalty, the commission may deny, revoke, or suspend a household goods carriers' certificate. (2) For purposes of assessing administrative penalties, a violator is defined as a corporation, association, partnership, firm, individual, person, company, co-partnership, joint stock association, motor bus company, owner or operator of a commercial motor vehicle, or other entity or person whomsoever and their lessees, receivers, or trustees appointed by any court who commits an act, omission, or violation of the statutes respecting safety, certificates, or rates, or any commission rule, regulation, or order respecting safety, certificates, or rates. (A) A person acts knowingly if such person has knowledge of the facts that give rise to such violation, or a reasonable person acting in the same circumstances and exercising due care would have had such knowledge. The commission may consider past violations of this Act. (B) Multiple violations are all violations respecting, safety, certificates, or rates arising during a single episode pursuant to one scheme or course of conduct. (3) Each act, omission, or violation of the statutes respecting safety, certificates, or rates or any commission rule, regulation or order respecting safety, certificates or rates that occurred prior to September 1, 1993, may subject the violator to an administrative penalty of up to $10,000 per violation. (4) The commission shall have discretion in determining the appropriate amount of the administrative penalty assessed for each violation. In determining the amount of the penalty, the commission may consider: (A) the violator's history of previous violations; (B) the seriousness of the violation or violations; (C) any hazard to the health or safety of the public caused by the violation or violations; (D) the economic benefit gained by the violation or violations; (E) the amount necessary to deter future violations; (F) the demonstrated good faith of the violator; and (G) other circumstances as the public welfare may require or as the commission may determine. (c) Initiation of administrative penalty proceedings before the agency. (1) An administrative penalty proceeding may be initiated by any entity, carrier, shipper, association, the agency, other state or federal agencies, or by any person whomsoever or their legal representative. The complaint initiating an administrative penalty proceeding shall be filed with docket services of the Transportation Division and shall consist of a signed, written pleading containing the names of the complainant and the alleged violator or violators, a concise statement of the facts relied upon by the complainant, a prayer stating the type of relief, action, or order desired by the complainant, and any other matter required by statute. (2) Before an administrative penalty complaint filed by anyone other than the agency can proceed to hearing, a copy of said complaint shall be delivered to the director of the Transportation Division. Said director or its designate shall have 60 days to intervene in support of said complaint, intervene in opposition to said complaint, dismiss said complaint or issue a letter advising the complainant that the Transportation Division has taken no position in the proceeding. In the event said Director or its designate takes no action after 60 days from the date of delivery of the complaint on said director, the party who filed the administrative penalty complaint may proceed to hearing on the complaint. Nothing contained herein shall preclude the agency from intervening as otherwise allowed under commission rules. (3) Administrative penalty complaints initiated by the agency or other state agencies shall be initially prepared by the director of the Transportation Division or its designate. The administrative penalty complaint prepared pursuant to this subparagraph shall be filed by the director of the Transportation Division or its designate. (4) An administrative penalty complaint may be amended any time prior to the hearing as authorized by commission rules. An administrative penalty complaint may be jointly filed or consolidated with a show cause complaint seeking cancellation of a certificate, permit, or registration. An administrative penalty proceeding shall be cumulative of all other remedies available under Texas Civil Statutes, or Article 911a. Nothing herein shall be construed so as to preclude the agency or any other party, person or entity from seeking any remedy in law or equity not specifically mentioned in this section. (5) An administrative penalty complaint may be dismissed by the party who filed same without prejudice to refiling upon the same facts by compliance with Texas Administrative Code, sec.1.27 (relating to Motions). (d) Notice of administrative penalty proceeding. The agency shall notify the alleged violator by remitting a copy of the administrative penalty complaint by certified mail, return receipt requested, to the last known business or resident address of the alleged violator. In the event the alleged violator cannot be notified by certified mail, the agency may give notice as provided in the Texas Rules of Civil Procedure. (e) Answer. (1) The alleged violator shall submit to the agency a written answer not later than 30 days after the date on which notice of the administrative penalty complaint is mailed, served, or published. Such answer may contain one or more of the following: (A) a general denial of one or more of the facts alleged in the administrative penalty complaint; (B) a response to facts alleged in the administrative penalty complaint which are not denied; (C) a response which affirmatively alleges claims, defenses, or mitigating factors and the reasoning in support thereof; or (D) any other facts desired to be alleged or shown. (2) Supplemental pleadings shall be in writing and may be filed by the alleged violator, with the director of the Transportation Division and distributed to all interested parties, under a certificate of service at any time until five days before the hearing date. Supplemental pleadings filed five days or less prior to the hearing date may be allowed by the hearings examiner upon a showing of good cause and undue surprise does not disadvantage other parties of record. (3) If the alleged violator fails to timely file an answer as required by this subsection, or fails to appear at the hearing, the commission may enter an order which assesses an administrative penalty as provided by law for the violations alleged in the administrative penalty complaint, or the agency may proceed with a hearing to receive evidence on the alleged violations and the commission may assess administrative penalties as provided by law. (f) Settlement orders. (1) An alleged violator may enter into a compromise settlement agreement and final order which does not constitute an admission by the alleged violator of any alleged violations contained in the railroad commission's complaint. The compromise settlement agreement and final order shall be signed by the alleged violator and all parties to the proceeding, and shall reflect that the alleged violator consents to the assessment of a specific administrative penalty. Such settlement of the matters raised in the administrative penalty complaint and the proposed agreed order and recommended penalty is subject to the approval of the commission. (2) If the alleged violator and all the parties to the proceeding and the director of the Transportation Division or its designate enter into a compromise settlement agreement and final order, the settlement shall include a recommended penalty to the commission. Simultaneously therewith to the filing of a compromise settlement agreement and final order, the alleged violator shall remit to the railroad commission a cashier's check or money order payable to the "State Treasurer of Texas." These funds shall be held in an escrow account until appropriately allocated upon final order. The agreed order shall be submitted to the commission. If the commission approves the agreed order and the recommended administrative penalty and said order becomes final, the administrative penalty proceeding shall cease. If the commission decides not to approve the agreed order and does not accept the recommended administrative penalty, the staff shall set the administrative penalty complaint for hearing. (g) Final commission order with no administrative penalty assessed. In the event the commission enters an order which becomes final wherein the commission does not assess an administrative penalty, the commission shall return any portion of the administrative penalty which might have been received by the commission with a certificate of its return. (h) Post order requirements. (1) Issuance of order. On the issuance of an order finding that a violation or violations have occurred, the commission shall inform the violator or his legal representative as soon as practicable of the rendition of the order of the amount of the penalty, if any. The commission shall inform the violator by remitting a copy of the order by certified mail, return receipt requested, at the last known business or resident address of the violator, or by publication on time in the Transportation Division bi-monthly notice of hearing. (2) Payment of administrative penalty. Within the 30 day period immediately following the day on which the decision or order is final as provided in the Administrative Procedure Act, Texas Government Code, Chapter 2001, the violator who has not previously paid all the administrative penalty ordered to be paid shall pay the penalty in full by remitting a cashier's check or money order to the Railroad Commission payable to the "State Treasurer of Texas". (3) Judicial review and failure to perfect appeal. (A) If the violator against whom a penalty is assessed seeks judicial review as authorized by the statute, the violator shall forward to the Railroad Commission a cashier's check or money order payable to the "State Treasurer of Texas" for placement in an escrow account. As an alternative to paying the penalty into an escrow account, the violator may post with the agency a supersedeas bond approved by the commission and payable to the "State Treasurer of Texas" for the amount of the penalty, which will remain in effect until all judicial review of the order or decision is final. The violator shall either remit the escrow payment or post an approved supersedeas bond with the agency within the 30 day period immediately following the day on which the commission's order is rendered. If the violator is unable financially to comply with the requirements of this subparagraph, the violator seeking judicial review shall file with the Railroad Commission of Texas an affidavit stating his financial inability and shall attach thereto a balance sheet describing, with particularity, the violator's assets and liabilities. If the commission concludes that the balance sheet and affidavit sufficiently show the violator's financial inability to comply with this subparagraph, the commission may waive payment of the administrative penalty into an escrow account or the filing of a supersedeas bond, and so notify the presiding hearings examiner and the parties of record in writing. (B) Failure to pay the penalty in full or failure to forward the amount of the penalty for placement in an escrow account, failure to post a supersedeas bond within the 30 day period immediately following the day on which the agency's order is final or failure to obtain a waiver of such requirements, shall result in a waiver of all legal rights to judicial review. In the event the violator fails to take any of the actions in this paragraph or paragraph (2) of this subsection, the commission may forward the matter to the attorney general for enforcement. (4) Unfavorable appellate determination. In the event the final appellate determination is against the alleged violator (the person assessed a penalty): (A) The violator shall forward to the railroad commission a cashier's check or money order payable to the "State Treasurer of Texas" for any amount owing on the administrative penalties assessed and not held in escrow; or (B) The surety or principal of the supersedeas bond shall forward to the railroad commission a check or money order payable to the "State Treasurer of Texas" for any amount owing on the administrative penalties assessed. (5) Favorable appellate determination. In the event that the final appellate determination is in favor of the person assessed, he or she shall be absolved of all liability for payment of the amount of the penalty. The commission shall return the amount of the penalty assessed and paid with a certificate of its return or shall release the supersedeas bond by commission order, as shall be required under the circumstances. (6) Form of supersedeas bond or escrow agreement. Any supersedeas bond or escrow agreement filed with the agency for the purpose of appeal of the final decision of the commission shall be drawn according to a form approved by the Railroad Commission of Texas and on file in docket services of the Transportation Division. Upon request, the commission shall certify the receipt of the funds or the supersedeas bond by the agency for purposes of appeal. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1995. TRD-9501322 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter N. Household Goods Carriers 16 TAC sec.sec.5.251-5.255, 5.257, 5.258 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.251-5.255, 5.257, and 5.258, concerning authority, local representatives, joint transportation between carriers, estimate sheet, inventory on each shipment, deceptive advertising prohibited, and accessorial services. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 911b. sec.5.251. Authority. sec.5.252. Local Representatives. sec.5.253. Joint Transportation Between Carriers. sec.5.254. Estimate Sheet. sec.5.255. Inventory on Each Shipment. sec.5.257. Deceptive Advertising Prohibited. sec.5.258. Accessorial Services. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501307 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter O. Motor Transportation Brokers 16 TAC sec.sec.5.271-5.280 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.271-5.280, concerning scope, licenses, applications for license, order on application for issuance of license, bond, suspension or revocation of license, insurance, records, charges for services rendered, and submission of records. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Civil Statutes, Article 911f, which authorize the commission to prescribe rules and regulations for motor transportation brokers of citrus fruits. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 911f. sec.5.271. Scope. sec.5.272. Licenses. sec.5.273. Applications for License. sec.5.274. Order on Application for Issuance of License. sec.5.275. Bond. sec.5.276. Suspension or Revocation of License. sec.5.277. Insurance. sec.5.278. Records. sec.5.279. Charges for Services Rendered. sec.5.280. Submission of Records. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501308 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter P. Commercial Zones 16 TAC sec.sec.5.291-5.294 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.291-5.294, concerning designation of commercial zones, factors considered by the commission, restrictions on exemptions, and existing commercial zones. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 911b. sec.5.291. Designation of Commercial Zones. sec.5.292. Factors Considered by the Commission. sec.5.293. Restrictions on Exemptions. sec.5.294. Existing Commercial Zones. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501309 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter Q. Miscellaneous Provisions 16 TAC sec.sec.5.301, 5.302, 5.304-5.307, 5.309-5.311, 5.313-5. 317 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.301, 5.302, 5.304-5.307, 5.309-5.311, and 5.313-5.317, concerning procedure; forms; rates, charges, and fares; changes in ownership, possession, or control of certificates or permits; compliance pending approval; voluntary suspensions; reinstatement fee; consolidation of certificate or permit authority; division of certificate or permit authority; effective date; additional regulations concerning utilization, transferability, and suspension of certificate of regular route common carrier motor carriers; approval of agreements between carriers concerning group representation; claims for loss or damage; and cancellation of dormant authority. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rule into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.301. Procedure. sec.5.302. Forms. sec.5.304. Rates, Charges, and Fares. sec.5.305. Changes in Ownership, Possession, or Control of Certificates or Permits. sec.5.306. Compliance Pending Approval. sec.5.307. Voluntary Suspensions. sec.5.309. Reinstatement Fee. sec.5.310. Consolidation of Certificate or Permit Authority. sec.5.311. Division of Certificate or Permit Authority. sec.5.313. Effective Date. sec.5.314. Additional Regulations Concerning Utilization, Transferability, and Suspension of Certificates of Regular Route Common Carrier Motor Carriers. sec.5.315. Approval of Agreements Between Carriers Concerning Group Representation. sec.5.316. Claims for Loss or Damage. sec.5.317. Cancellation of Dormant Authority; Transfer Applications. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501310 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter E. Motor Transportation Brokers 16 TAC sec.sec.5.301-5.314 The Railroad Commission of Texas proposes new sec.sec.5.301-5.314, concerning definitions, scope, compliance with laws and regulations, prohibition of unauthorized services, licenses, applications for license, order on application for issuance of license, bond, suspension or revocation of license, insurance, records, submission of records, forms, and procedure. This proposal is made in conjunction with other proposed changes to Chapter 5, which is being updated to reorganize the commission rules into concise subchapters for each category of the rules. The proposed new sections bring the regulations concerning motor transportation brokers into conformity with the remainder of this title. Jackye Greenlee, assistant director-central operations, has determined that for each year of the first five year period the proposed section will be in effect, there will be no fiscal implications for state or local government as a result of enforcing the sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of administering the section will be to clarify the general provisions of this title for the public and to achieve greater compliance by a reorganization of rules into concise subchapters. There will be no effect on small businesses as a result of enforcing the sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The new sections are proposed under Texas Civil Statutes, Article 911f, which authorizes the commission to prescribe rules and regulations for motor transportation brokers of citrus fruits and vegetables. The following is the article that is affected by the proposed sections: Texas Civil Statutes, Article 911f. sec.5.301. Definitions. The following words and terms when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Commission-The Railroad Commission of the State of Texas. Director-The director of the Transportation Division of the Railroad Commission of Texas. Any act or function herein assigned to the director by the Commission may be delegated by the director. License-A license issued to a motor transportation broker under the terms of Texas Civil Statutes article 911f, as amended. Motor Carrier-Any person, firm, or corporation, their lessees, trustees, receivers, or trustees appointed by any court whatsoever, transporting or offering or proposing to transport fresh citrus fruits and fresh vegetables for compensation over any portion of the public highways of the state. Motor transportation broker-Any person who, acting either individually or as an officer, commission agent, or employee of a corporation, or as a member of a copartnership, or as a commission agent or employee of another person, sells or offers for sale, or negotiates for or holds himself out as one who sells, furnishes, or provides transportation of fresh fruits and fresh vegetables over the public highways of this state, when such transportation is furnished, or offered or proposed to be furnished, by a motor carrier, as defined in the definition of "motor carrier" set forth in this section. Person-An individual, a firm, copartnership, corporation, company, an association, or a joint stock association (and their receivers or trustees appointed by any court whatsoever). Public highway -Every street, road, or highway in this state. sec.5.302. Scope. (a) This subchapter shall not apply to the officers, agents, or employees of any motor carrier operating for compensation over the public highways of this state who is under the jurisdiction of the commission, or to a person, firm, or corporation engaged in transporting express when such transportation is incidental to the transportation of passengers. (b) Any person, firm, or corporation who: (1) orally or by card, circular, pamphlet, newspaper, radio, sign, billboard, or any other way, advertises himself, or itself, as one who sells, furnishes, negotiates for, or provides transportation over the public highways of this state when the transportation is furnished or offered, or proposed to be furnished, by motor carrier; (2) manages or conducts as a manager, conductor, agent, proprietor, lessor, lessee, or otherwise, a place where transportation is, or is offered or proposed to be, sold, furnished, negotiated for, or provided by a motor carrier; or (3) aids and abets, or without being present advises and encourages, any person, firm, or corporation in acting as, or to act as, a motor transportation broker, shall be deemed to be acting as a motor transportation broker, whether he does one or more acts of the nature set forth in this subsection. (c) The provisions of this subchapter shall apply whether the transportation sold, or offered to be sold, is interstate or intrastate. sec.5.303. Compliance with Laws and Regulations. All motor transportation brokers shall conduct their operations in accordance with all applicable laws of the State of Texas and all applicable regulations of the commission. All licenses issued by the commission are subject to applicable provisions of law and of these regulations as fully as if said laws and said regulations were set forth verbatim in each certificate, permit, and license. sec.5.304. Prohibition of Unauthorized Services. No motor transportation broker shall perform any service or services within the jurisdiction of the commission except those which are authorized by a license issued by the commission, or specifically authorized by these regulations for the class of which it is a member. sec.5.305. Licenses. (a) No person shall engage in the business or act in the capacity of a motor transportation broker unless he is the holder of a valid, subsisting, and effective license, issued by the commission. No license will be issued to any copartnership, trust, or corporation. A full-time employee of a duly licensed motor transportation broker is not required to be a licensee unless he is in responsible charge of a place of business separate from that shown on his employer's license. (b) A license shall be in the form prescribed by the director. It shall expire on September 30 of any year after its issuance, unless it has been renewed during the preceding two months, or unless an application for renewal has been timely filed and is then pending. (c) Every license shall designate with certainty the street or highway address from which the licensee's business is to be conducted, and said address shall be deemed for all purposes to be the licensee's place of business. Process in any civil action may be served upon the licensee by leaving a copy thereof at said address. Every notice required by the rules shall be deemed served when mailed by the director or under his supervision to said address. The licensee shall not change the address of his place of business without first obtaining a new license. sec.5.306. Applications for License. (a) Every application for issuance or renewal of a license shall be in the form prescribed by the director, shall contain all information required by said form or by law, and shall be accompanied by a cashier's or certified check or money order, payable to the state treasurer, for the filing fee of $5. It shall designate with certainty the street or highway address from which the business is to be conducted, shall authorize the service of all process and notices in all civil actions by leaving a copy at said place of business, and shall authorize all notices required by the rules to be deemed served when mailed by the director or under his supervision to said address. It shall set forth the applicant's agreement not to change his place of business unless and until a new license is issued to him. (b) If an applicant is an officer or commission agent or employee of a corporation, or a member of a copartnership, he shall so state in his application. The corporation, copartnership, or person of which the applicant is an officer, member, or employee, as the case may be, shall join in the applicant's application, and shall set forth therein the relationship between the applicant and the person, copartnership, or corporation so joining. (c) An application for renewal of a license shall be deemed to be timely filed if it is received by the commission in proper form, accompanied by the filing fee, at least 60 days before expiration of the license. sec.5.307. Order on Application for Issuance of License. (a) The commission, after hearing, will issue an order either approving the application, approving the application for the partial exercise of the privilege sought, or denying the application. An application shall be denied if the commission finds that the applicant is not a fit and proper person to receive the license or that the motor carriers for whom the applicant proposes to sell transportation have not complied, are not complying, or do not propose to comply with state or federal laws, or all regulations of the commission applicable to the operations of the motor carrier. (b) It may be deemed that the applicant is not a fit or proper person to receive the license if he has: (1) been convicted of a felony or a misdemeanor involving moral turpitude; (2) suffered a money judgment to be entered against him upon which execution has been returned unsatisfied; (3) failed to account to or make settlement with any motor carrier properly and promptly; (4) made any false or misleading statements or engaged in any false advertising as to services rendered by himself or by any motor carrier which he represents; (5) made a willful misstatement of a material fact in an application for or testimony or an exhibit pertaining to the issuance of a license; (6) acted as a motor transportation broker under a license without having in force the insurance required by Texas Civil Statutes, Article 911f and these regulations; (7) arranged for transportation of property by a motor carrier which did not possess, or reasonably appear to possess, the required certificate or permit authorizing said transportation; (8) failed, while acting as a motor transportation broker under a license, to maintain any or all of the records required by sec.5.311 of this title (relating to Records); (9) ever had a license revoked; or (10) become, in the opinion of the commission based on any other good and sufficient cause, a person who is not fit, willing, or able properly to perform the services of a motor transportation broker. sec.5.308. Bond. (a) The applicant shall file with the commission, within 20 days after he receives notice of the entry of an order approving his application, a bond in the penal sum of at least $10,000, payable to the secretary of the commission, with applicant as principal and a surety company duly-licensed and authorized to do business in the State of Texas as surety, conditioned: (1) upon the faithful performance by the motor carrier or motor carriers for whom the applicant is licensed to act, of the contracts or agreements of transportation negotiated by the licensee; and (2) upon the honest and faithful performance by the applicant of any undertaking as a licensed motor transportation broker. The form of bond shall be prescribed by the director. If the applicant fails to file his bond within the time and in compliance with the requirements provided in this section, no license will be issued to him on that application. (b) The bond shall provide that all defenses available to the motor carrier shall be available to the principal and his surety, but no condition or provision of the bond shall otherwise affect the right of the shipper to collect all damages to which he may be entitled at law. (c) The bond shall not expire or be subject to cancellation until the 30th day after written notice of expiration or cancellation has been served on the principal and the commission, either personally or by registered mail. Unless on or before the expiration of said 30-day period, the principal files a new bond in compliance with the requirements of this section, his license shall likewise terminate upon the expiration of said period. (d) In no event shall the total of all recoveries under a bond exceed the penal amount thereof. sec.5.309. Suspension or Revocation of License. Any license may be suspended or revoked by the commission, after notice and hearing as required by Subchapter U of this title, if the commission determines that the licensee is not a fit and proper person to hold the license, as defined in sec.5.307 of this title (relating to Order on Application for Issuance of License), or that the licensee, in acting as a motor transportation broker, has engaged in false advertising or false representation in violation of the laws of this state, or any political subdivision thereof, or has sold, offered for sale, or negotiated for sale, transportation by any motor carrier that under the laws of this state is conducted in a manner contrary to the public interest, or without proper authority, or in violation of the provisions of Texas Civil Statutes Article 911f, or the regulations of the commission pertaining thereto. Every license suspended or revoked shall be surrendered to the commission or its duly- authorized representative. sec.5.310. Insurance. (a) Each licensee shall provide insurance coverage or surety bond for every shipment for which he arranges transportation against theft of a package (but not by employee), fire, collision, upset, breaking of bridge or culverts, flood and water damage (but not spoilage, break down, or delay in transit). Insurance coverage shall be by the form of policy commonly known as a "seven peril cargo insurance policy" with a coinsurance clause, with limits of $3,000 per shipment, issued by an insurance company duly licensed and authorized to do business in the State of Texas and signed or countersigned by a local recording agent duly licensed by the State Board of Insurance. A surety bond provided in lieu of an insurance policy must conform to the foregoing specifications and must be nonexhaustible. (b) If a shipper values a particular shipment at more than $3,000, the amount of insurance coverage or surety bond thereon may be increased upon his demand and at his expense. (c) Said insurance policy or surety bond shall bear an endorsement providing that it is not subject to cancellation until 10 days' notice of cancellation has been given in writing to the commission and to the named insured. (d) Said policy of insurance or surety bond shall be kept in the possession of the licensee at his place of business and a copy thereof shall be made available to any shipper or receiver upon demand. Every shipper and receiver, as interest may appear, shall be defined, by the terms of the policy or surety bond or by endorsement, as an insured, with the same rights, privileges, and powers as the named insured. When a loss occurs within the coverage of the policy or surety bond, the shipper or receiver shall be entitled to submit proof of loss directly to the insurance company or surety company, and upon establishing that the shipment was in fact arranged by the licensee, the shipper, or receiver, as interest may appear, shall be entitled to the benefits of said policy or bond in accordance with its terms. (e) No surety bond, insurance policy, or certificate of insurance will be accepted by the commission unless issued by an insurance company or surety company licensed and authorized to do business in the State of Texas in the form prescribed or approved by the State Board of Insurance and signed or countersigned by a local recording agent duly licensed by the State Board of Insurance. sec.5.311. Records. (a) Each motor transportation broker shall keep at his place of business, shall preserve for at least two years, and shall make available for inspection at any time by the commission or its duly-authorized representative, daily records reflecting the following information: (1) the date; (2) the names and certificate or permit numbers of motor carriers and drivers by whom the broker has authorized transportation on such dates; (3) the names of the persons for whom each motor carrier and driver provided transportation; (4) the types of fresh fruits or vegetables transported; (5) the points of origin and destination of each shipment; (6) the amount of the freight charges on each shipment; (7) the name of the insurance company and the number of the policy providing insurance for said shipments under s5.310 of this title (relating to Insurance). (b) Every motor transportation broker shall keep and make available for public inspection at each place of business from which he renders service, a schedule stating the maximum charge for brokerage service which he holds himself out to perform. sec.5.312. Submission of Records. (a) Every motor transportation broker licensed by the Railroad Commission of Texas to do business at an address located outside of the State of Texas shall, upon request or demand of the commission or of any of its duly authorized agents or representatives, tender, at a place designated by the commission, all of the books, accounts, and records required by these regulations. (b) Every motor transportation broker licensed by the Railroad Commission of Texas to do business at an address located within the State of Texas and maintaining a portion of its records outside of the State of Texas shall, upon request or demand of the commission or of any of its duly authorized agents or representatives, tender, at the address designated on the motor transportation broker license or at a place designated by the commission, all of the books, accounts, and records required by these regulations. sec.5.313. Forms. All forms required by these regulations or by the rules shall be prescribed by the director, subject to the approval of the commission. On the promulgation of any form by the director, it shall be presumed that it has been approved by the commission as to substance and form. sec.5.314. Procedure. To the extent that matters of procedure are not covered by a specific rule, subchapter U of this chapter (relating to General and Special Rules of Practice and Procedure) shall apply. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501323 Mary Ross McDonald Assistant Director, Legal Division-Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter R. Registration of Interstate Operations 16 TAC sec.sec.5.331, 5.332, 5.334-5.345, 5.347-5.349 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.331, 5.332, 5.334, 5.335-5.345, and 5.347-5.349, concerning definitions, operations within borders of states, registration of motor carrier operations exempt from economic regulation by the ICC, designation of process agent, identification of vehicles and driveaway operations, form and execution of application for identification stamps, use of cab cards in connection with vehicles not used in driveaway operations, use of cab cards in driveaway operations, inspection of the cab card, destruction of cab cards, alteration of cab card/replacement, identification, evidence of liability security, notice of security cancellation, certificated interstate operations by intrastate carriers, exempt operations by registered carriers, and cancellation of registration. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the proposal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the proposal will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.331. Definitions. sec.5.332. Operations Within Borders of States. sec.5.334. Registration of Motor Carrier Operations Exempt from Economic Regulation by the ICC. sec.5.335. Designation of Process Agent. sec.5.336. Identification of Vehicles and Driveaway Operations. sec.5.337. Form and Execution of Application for Identification Stamps. sec.5.338. Use of Cab Cards in Connection with Vehicles Not Used in Driveaway Operations. sec.5.339. Use of Cab Cards in Driveaway Operations. sec.5.340. Inspection of the Cab Card. sec.5.341. Destruction of Cab Cards. sec.5.342. Alteration of Cab Card; Replacement. sec.5.343. Identification. sec.5.344. Evidence of Liability Security. sec.5.345. Notice of Security Cancellation. sec.5.347. Certificated Interstate Operations by Intrastate Carriers. sec.5.348. Exempt Operations by Registered Carriers. sec.5.349. Cancellation of Registration. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501311 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter S. Specialized Motor Carriers of Mobile Homes 16 TAC sec.5.361 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of s5.361, concerning definitions. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeal. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of the repeal will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeal is proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorizes the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by this repeal: Texas Civil Statutes, Article 911b. sec.5.361. Definitions. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501312 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter T. Registration of Operations Exempt from ICC Regulations 16 TAC sec.sec.5.371-5.381 (Editor's note: The text of the following sections proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.371-5.381, concerning participation in the single state registration system; definitions; the registration process; amendments and changes after the initial registration; change of registrant's principal place of business; designation of process agent; proof of insurance; registration receipts; change of name, address, and ownership of registrant; failure to comply; and auditing. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the proposal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the proposal will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.371. Participation in the Single State Registration System. sec.5.372. Definitions. sec.5.373. The Registration Process. sec.5.374. Amendments and Changes After the Initial Registration. sec.5.375. Change of Registrant's Principal Place of Business. sec.5.376. Designation of Process Agent. sec.5.377. Proof of Insurance. sec.5.378. Registration Receipts. sec.5.379. Change of Name, Address, and Ownership of Registrant. sec.5.380. Failure to Comply. sec.5.381. Auditing. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501313 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter F. Registration of Interstate Motor Carriers 16 TAC sec.sec.5.401-5.412 The Railroad Commission of Texas proposes new sec.sec.5.401-5.412, concerning participation in the single state registration system; definitions; the registration process; amendments and changes after the initial registration; change of registrant's principal place of business; designation of process agent; proof of insurance; registration receipts; change of name; address and ownership of registrant; failure to comply; auditing;, and registration of motor carrier operations exempt from economic regulation by the ICC. This proposal is made in response to other proposed changes to this chapter and to reorganize the commission's rules into concise subchapters for each category of the rules. The proposed new sections bring the regulations regarding interstate motor carriers into conformity with the remainder of this title. Jackye Greenlee, assistant director-central operations, has determined that for each year of the first five year period the proposed sections will be in effect, there will be no fiscal implications for state or local government as a result of enforcing the sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of administering the section will be to clarify the general provisions of this title for the public and to achieve greater compliance by a reorganization of rules into concise subchapters. There will be no effect on small businesses as a result of enforcing the sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The new sections are proposed under Texas Civil Statutes, Article 911a sec.4(a), which charges the commission with prescribing rules and regulations necessary for the government of motor bus companies, and Texas Civil Statutes Article 911b sec.4(a)(1), which charges the commission with prescribing rules and regulations necessary for the government of motor carriers. The following are the articles that are affected by the proposed sections: Texas Civil Statutes, Articles 911a and 911b. sec.5.401. Participation in the Single State Registration System. (a) The State of Texas, through the commission, participates in the single state registration system established by Section 4005 of Title IV of the Intermodal Surface Transportation Efficiency Act of 1991 (49 United States Code sec.11506) and Texas Civil Statutes, Article 911b, sec.18a. (b) Any motor carrier that has its principal place of business in Texas or selects Texas as its registration state under 49 Code of Federal Regulations sec.1023.3 shall file with the commission an application to register for all states of travel as required by 49 United States Code sec.11506 before beginning operations in Texas. A motor carrier authorized by the ICC to transport passengers or property that must register in a state other than Texas must fully comply with 49 United States Code sec.11506 before operating in Texas. sec.5.402. Definitions. The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise. Applicant-A motor carrier or carrier which files an application with a registration state for the purpose of complying with the standards promulgated under 49 United States Code sec.11506. Audit-A review of records and source documents of a registrant to determine its compliance with the requirements of this subchapter. Cancellation of registration-The annulment of a registration by the registrant. Commission-The Railroad Commission of Texas. Good standing-A registrant that meets the requirements of this subchapter, including but not limited to the filing of proof of insurance, designating an agent for service of process, filing of copies of interstate authority in the registration state, and filing changes to its name and/or address. ICC-The Interstate Commerce Commission. Jurisdiction-A State of the United States, the District of Columbia, a Province or Territory of Canada, or the Republic of Mexico. Motor carrier and carrier-A person authorized to transport passengers or property, as a common or contract carrier, in interstate or foreign commerce, under the provisions of 49 United States Code sec.sec.l0922, l0923 or l0928. Motor vehicle-A self-propelled or motor-driven vehicle operated by a motor carrier in interstate or foreign commerce under authority issued by the ICC. Person-An individual, corporation, partnership, association, trust, or other legal entity. Principal place of business-A single location that serves as the motor carrier's headquarters and where it maintains or can make available its operational records. Proof of Insurance -Evidence filed with the commission by or on behalf of the registrant and which complies with the requirements of 49 Code of Federal Regulations Part 1043. Registrant-A motor carrier or carrier which holds a valid single state registration, as defined in 49 Code of Federal Regulations Part 1023, issued by the commission or a registration state. Registration state -A state where the registrant maintains a valid single state registration as defined in 49 Code of Federal Regulations Part 1023. Reinstatement-A restoration of privileges granted to a registrant by the commission or its registration state. Registration period -A period of time from August l through November 30 of the year preceding a registration year. Registration receipt -A receipt issued to the registrant by its registration state after the requirements of 49 Code of Federal Regulations Part 1023 have been met. Registration year -A period of time from January 1 through December 31. Revocation-Withdrawal of registration and privileges by the commission or a registration state. Single state registration system-The program established by 49 United States Code, sec.11506. State-A state of the United States or the District of Columbia. State(s) of travel-The state or states in which a motor carrier or carrier operates motor vehicles subject to the single state registration system. Suspension-Temporary removal of privileges granted to the registrant by the commission or a registration state. Unlawful use-Shall include, but not be limited to, the failure by a motor carrier subject to the single state registration system to meet the requirements of this subchapter, including but not limited to paying sufficient fees for the number of motor vehicles operating under a registration receipt, allowing another motor carrier to use or purchase a registration receipt issued to the registrant, altering of the registration receipt, or failing to maintain a current listing of its agent for service of process. sec.5.403. The Registration Process. (a) Initial registration. To register under the single state registration system for a first time, a motor carrier shall file with the commission a complete application on the commission's Forms RRC-1 and RRC-1A prescribed for registering all ICC motor carriers. The application must include: (1) a copy of the applicant's full interstate authority, unless the commission waives such requirement; (2) a copy of ICC form BOC-3 concerning applicant's designation of agent(s) for service of process or a completed ICC form BOC-3; and (3) the original signature of an authorized representative or its agent. In addition, the applicant must file proof of insurance showing its business address. The proof of insurance must be filed with the application form or that form will remain incomplete until proof of insurance is filed with the commission. The applicant shall indicate its legal status as a sole proprietor, partnership, corporation, or other valid legal entity and the type of authority issued by the ICC. The application must contain the names of all owners, partners, officers, or persons with operation control; any d/b/a (doing business as) name it uses; and its business address. The applicant shall include in the application form whether it will be transporting hazardous commodities in interstate or foreign commerce. All information that the applicant submits to the commission must agree with information in the most recent ICC certificate or permit issued to the applicant. (b) Renewal of registration. To renew its registration, a registrant shall follow the procedure outlined in subsection (a) of this section during the registration period before December 1st of the existing registration period. To renew its registration, the registrant will not be required to refile a full copy of its ICC authority. (c) Payment of fees. An applicant or registrant must submit with its original, renewal, or supplemental application the commission's Forms RRC-1 and RRC-1A with applicable information completed for all vehicles, whether owned or leased, that the applicant or registrant operates under ICC authority. The applicant or registrant shall remit to the commission the appropriate total fees due as indicated in the commission's Form RRC-1A, by cashier's check or money order in U. S. dollars, payable to the Texas State Treasurer, on all of its vehicles for which an annual for cab cards has not been paid to the commission. If an applicant or registrant has evidence of fees, collected or charged as of November 15, 1991, which are different from the fees specified in the commission's Form RRC-1A, the applicant or registrant should submit such evidence to the commission with the application. After considering any such evidence, the commission will notify the applicant or registrant if the proper fee has not been paid. (d) Fees from other states. Each participating state, in computing the appropriate portion of the revenue due the commission for its registrants, may utilize the commission's Form RRC -2 to determine the registrant's per-vehicle fee. (e) Temporary and emergency authorities. A motor carrier that receives emergency temporary authority (ETA) or temporary authority (TA) from the ICC for 120 days or less must comply with all the commission's registration requirements, except filing a copy of the authority granted by the ICC. However, within 120 days after receiving an ETA or TA, the motor carrier shall comply with all registration procedures, or its registration may be revoked or suspended. (f) Waiver of filing complete ICC authority. If the commission waives, in writing, the filing of the complete ICC authority that is longer than 20 pages, the applicant shall: (1) provide the commission a copy of the portion of the ICC order that shows the service date and order section; and (2) file a prepared synopsis of the ICC authority. (g) Documents improperly filed. If an applicant files or causes to be filed any document that contains any misrepresentation, misstatement, or omission of required information, or which does not include the payment of fees, the document shall be deemed to be incomplete and will not be processed by the commission until all items have been corrected. sec.5.404. Amendments and Changes After the Initial Registration. (a) A registrant must first notify the ICC if the registrant has changed its name or transferred its operating rights. (b) A registrant in good standing: (1) may add equipment and/or states of travel by payment of fees and the filing of a supplemental application with the commission; and (2) shall register with the commission all amendments and revisions made by the ICC to the registrant's authority and operations. (c) If, during the registration year, the registrant: (1) is granted new ICC operating authority, changes its name and/or address, or receives any ICC order or reentitlement, it must file with the commission a copy of such document as soon as it is issued; (2) adds states of travel or additional motor vehicles, it shall indicate in the application form that it is filing for "Supplemental Registration." If, during an annual registration process, a registrant adds state(s) of travel for the first time, the registration form should indicate: "Additional states not registered," and the additional states should be listed on the form; or (3) has not filed additional information, it will attach to its annual registration application copies of additional authority grants, reentitlements, transfer orders, letters of change of name or address mailed to the ICC by the motor carrier or grants of self-insurance orders issued by the ICC not previously filed with the commission. (d) To correct any application form, the motor carrier shall notify the commission in writing to amend its application form, or the motor carrier shall correct the application returned by the commission. (e) Upon the written request of the registrant, the commission may cancel the motor carrier's registration and notify the registrant of such action by mail. The mail will show the effective date of cancellation. sec.5.405. Change of Registrant's Principal Place of Business. (a) A motor carrier's principal place of business for registration will be the business address the motor carrier indicated on the order issued by the ICC or, pursuant to a change of address, the business address reported by the registrant to the ICC. The business address of the registrant must be a physical address; a post office box is not acceptable. A mailing address may be given for mailing purposes only. An applicant domiciled in a rural area that does not have a street address may submit a rural route with a box number. The applicant may change its registration state if it changes its principal place of business or its registration state ceases or commences participation in the program. (b) If the applicant's principal place of business is located in a jurisdiction that is not a participating state, the applicant shall apply for registration in the State in which the applicant will operate the largest number of motor vehicles during the next registration year. If the motor carrier will operate the same largest number of vehicles in more than one state, the applicant or registrant shall choose which participating state will be its registration state. A registration state for a registrant may be changed only when the registrant changes its principal place of business or when its existing registration state ceases to participate in the single state registration system. (c) When a registrant changes its principal place of business to another participating state, the registrant shall: (1) notify its current and the new registration state within 30 days after making its selection; (2) notify its insurer immediately; and (3) refile in the new registration state all the documents required of a new registrant. (d) If the registrant changes its principal place of business to a non- participating state, it shall retain the current registration state designation for registration purposes and file notice of business address change along with a new proof of insurance filing in its registration state. sec.5.406. Designation of Process Agent. Using ICC form BOC-3, prescribed by 49 Code of Federal Regulations Part 1044, the applicant shall designate a process agent for each state of travel. The motor carrier shall supplement the designation of process agent as necessary to ensure that current information is on file with the commission. If a registrant fails to maintain current the name of its process agent, the motor carrier's registration shall be subject to suspension. sec.5.407. Proof of Insurance. (a) In all applications, the motor carrier shall indicate whether proof of insurance will be filed or has been filed with the commission and whether the motor carrier's public liability protection remains effective. The registrant shall immediately notify the commission of all changes in the status of the registrant's public liability protection. The commission will accept a facsimile of the applicant's or registrant's proof of insurance. (b) The applicant shall cause to be filed and maintained with the commission proof of insurance in accordance with the levels and forms specified by 49 Code of Federal Regulations Part 1043. The registrant's full name, including all owner names and any fictitious name or d/b/a, and business address on the proof of insurance, must be identical to such information in its application and its most recent ICC order. Proof of insurance shall be filed in the full and correct name of the individual, partnership, corporation, or person to whom the certificate or permit is issued. A "certificate of insurance" issued by an insurance agent will not be accepted as proof of insurance. (c) A true copy of the applicant or registrant's public liability policy with the endorsements attached shall be maintained at the motor carrier's principal place of business. (d) If the applicant has been approved for self-insurance by the ICC, the applicant shall indicate the status of such self -insurance on the application Form RRC-1 and shall file with the commission a copy of the ICC order approving a public liability self-insurance or other public liability security or agreement under the provisions of 49 Code of Federal Regulations Part l043. The registrant shall immediately notify the commission if the self-insurance plan is suspended, revoked, or modified by an ICC order. Failure to comply may result in the suspension of the registration. (e) The effective date of the cancellation notice for proof of insurance shall be computed as 30 days from the date notice is received by the commission. A cancellation notice received prior to a new filing shall terminate the liability within 30 days of notice to the commission. (f) If an insurance company notifies the commission that information relating to an applicant or registrant's proof of insurance is incorrect or has been falsified, the commission may verify the insurance information of the insured. If the commission finds that incorrect or falsified filings have been made, the commission will notify the registrant(s) immediately and request new proof of insurance. If new and valid proof of insurance is not received, the commission will initiate a proceeding for suspension for non-compliance of filing proof of insurance. sec.5.408. Registration Receipts. (a) The registrant must retain its original registration receipt at its principal place of business for a period of three years. The registrant shall make the necessary copies of the registration receipt for each vehicle for which it paid fees. The registrant may not operate more motor vehicles in any participating state than the number for which fees have been paid. (b) A copy of the registration receipt shall be carried in each motor vehicle of the registrant, and this shall qualify the registrant to operate under its ICC certificate or permit in all jurisdictions indicated on the registration receipt. Upon demand, the driver of a motor vehicle must present a copy of a registration receipt for inspection by any auditor of the Transportation/Gas Utilities Division of the commission and any law enforcement officer of Texas. (c) A registration receipt: (1) shall not be altered; (2) shall become effective the date specified on the receipt and shall expire on the 31st day of December of the registration year for which it was issued; and (3) may be transferred from vehicles taken out of service to the registrant's replacement vehicles. (d) Altering the registration receipt shall subject the motor carrier's registration to revocation. Any law enforcement officer is authorized to confiscate the altered copy on sight. The confiscated registration receipt will be returned to the commission after any court action is completed by the state in which it was confiscated. Any copy of an expired registration receipt shall be replaced with a new copy of a current registration receipt, and the registrant shall destroy the old copies which have expired. (e) The commission shall not replace lost or stolen receipts, except when the carrier fails to receive the registration receipt(s) mailed by the commission. A registrant may apply, without charge, for replacement receipts which it fails to receive. The request must be accompanied by an affidavit detailing the facts that support the non-receipt of the registration receipt. (f) The commission shall mail the original receipt to the registrant. If a registrant needs to add states of travel to its operating fleet, it may request the commission to transmit a copy of a registration receipt before the receipt is mailed. sec.5.409. Change of Name, Address, and Ownership of Registrant. (a) If the registrant changes its name, other than by transferring ownership, after the registration receipt has been issued, the registrant shall submit to the commission a copy of the reentitlement issued by the ICC. The registrant shall furnish proof of insurance to the commission in the new name. (b) If the registrant changes its business address, it must file a copy of the notice (letter from the motor carrier to the ICC) submitted to the ICC for a similar change of address. If the business address change involves a street, route, box number or city, the registrant shall notify the commission in writing of that change. When the business address of the registrant has been changed, new proof of insurance must be filed with the commission. (c) When ICC authority is transferred to a new owner, the current registrant must notify the commission to cancel its registration, and the new owner shall register with the commission. sec.5.410. Failure to Comply. (a) Failure of the registrant to comply with provisions in this subchapter may result in suspension or revocation of its registration. (b) Upon receiving notice of cancellation of a registrant's proof of insurance, the commission shall notify the registrant in writing that its registration to operate in all states of travel is suspended on the effective date of the cancellation of the insurance as specified in 49 Code of Federal Regulations sec.1043.9(d). If insurance lapses because a proof of insurance has not been filed with the correct name and business address, the motor carrier's registration will be suspended until proper proof of insurance is filed with the commission. (c) The commission shall revoke registration to operate in any state: (1) if the registrant fails to comply with the insurance filing requirements 135 days from the effective date of a cancellation of insurance; (2) if an ETA or TA has expired without permanent authority being granted by the ICC or the motor carrier has failed to file a copy of the permanent grant of authority before the expiration date; or (3) if the motor carrier allows the unlawful use of a registration receipt. (d) When sufficient proof of insurance or other items of compliance are filed and in effect after a suspension of the registration, the commission shall immediately reinstate the motor carrier's registration and notify the registrant that its registration, pursuant to these standards, is restored. The reinstatement notice shall be mailed to the registrant and show the effective date of such reinstatement. The reinstatement notice may be a letter, reinstatement order, or any other method of proper notice as determined by the commission. (e) If the registrant believes that the commission has revoked its registration without good cause, it may petition the commission for reinstatement. Such petition for reinstatement shall be acted upon in accordance with the procedures specified in Chapter 1 of this title (relating to Practice and Procedure). (f) After a registration has been revoked or cancelled, a motor carrier wishing to operate pursuant to this subchapter must re-apply for registration with the commission. If the commission has copies of the motor carrier's ICC authority and the motor carrier indicates in writing that it has not received additional ICC authority, the commission shall waive the filing of copies of a motor carrier's authority. The motor carrier shall submit new proof of insurance. If the motor carrier has paid its annual per vehicle fee for the current calendar year, the commission shall not require payment of new fees. (g) Nothing in these procedures shall prevent the commission from seeking the imposition of criminal or civil penalties against any person or entity violating any provision in this subchapter. sec.5.411. Auditing. (a) The motor carrier shall maintain records and documents supporting fee payments and the original registration receipt(s) issued by the commission for a period of three years. (b) The commission may audit any motor carrier at the carrier's principal place of business to ensure compliance with this subchapter. The commission may require the carrier to submit documentation for audit in Texas. sec.5.412. Registration of Motor Carrier Operations Exempt from Economic Regulation by the ICC. A for hire carrier exempt from economic regulation by the ICC under the IC Act shall not operate within the borders of the State of Texas unless there has been an application filed for the registration of its operation and all requirements have been met as prescribed by Subchapter B of this title (relating to commercial carriers). This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501324 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter G. Tow Trucks 16 TAC sec.sec.5.501-5.503, 5.505-5.516 The Railroad Commission of Texas proposes new sec.sec.5.501-5.503 and 5.505-5. 516, concerning authority; definitions; registration requirements; exemptions; insurance requirements; tow trucks as commercial motor vehicles; inspection and investigation by the commission; denial, revocation, or suspension for a criminal conviction; administrative sanctions; criminal penalty sanctions; general technical requirements; technical requirements for accident scene tow trucks; technical requirements for recovery of vehicles for a lien holder; leases; and assumed business names. This proposal is made as part of a comprehensive revision of this title in light of recent legislative changes to statutes concerning regulation of transportation and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the proposal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of the proposal will be to permit the proposed adoption of new rules in the present location of subchapter G and to reorganize the current structure of the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The new sections are proposed under the Texas Tow Truck Act, Texas Civil Statutes, Article 6687-9b, which authorize the commission to adopt rules, in the interest of public safety, that provide registration and insurance requirements for the operation of tow trucks. The following is the article that is affected by the proposed sections: Texas Civil Statutes, Article 6687-9b. sec.5.501. Authority. The rules in this subchapter are promulgated under the authority of the Texas Tow Truck Act (Texas Civil Statutes, Article 6687-9b), the Texas Motor Carrier Act (Texas Civil Statutes, Article 911b), and the Motor Carrier Safety Act (Texas Civil Statutes, Article 6701d). sec.5.502. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-Texas Civil Statutes, Article 6687-9b. Certificate of registration-The document issued by the commission authorizing the operation of a specific tow truck. Commercial motor vehicle or commercial carrier -Have the same meanings as ascribed to them in sec.5.501 of this title. Commission-The Railroad Commission of Texas. Consent tow-Any tow conducted with the permission of, or at the direction of, the towed vehicle's legal or registered owner, or such owner's authorized representative. Except as set forth in the definition of "nonconsent tow" below, a tow will be considered a consent tow where the owner is able to give consent. Director-The director of the Transportation/Gas Utilities Division of the commission, or a designee of the director. Mechanical device -A mechanical, electrical, or hydraulic winch, wheel lift, tow bar, or other towing device permanently attached to or used in combination with a commercial motor vehicle. Mini-wrecker or auto trailer-A vehicle without motive power used in combination with a commercial motor vehicle, and which is adapted or used to tow, winch or otherwise move another motor vehicle. Motor Carrier Act-Texas Civil Statutes, Article 911b. Motor Carrier Safety Act-Texas Civil Statutes, Article 6701d. Motor vehicle-A vehicle subject to registration under the Certificate of Title Act (Texas Civil Statutes, Article 6687-1), or any other self-propelled device permitted to travel on a public highway. Non-tow truck or tow device-A commercial motor vehicle used in combination with a mini-wrecker, auto trailer or other towing device, and which is not equipped with a mechanical, electrical, or hydraulic winch or wheel lift. Nonconsent tow -Any tow conducted without permission of, or not at the direction of, the towed vehicle's legal or register owner, or such owner's authorized representative. Regardless of this definition, certified law enforcement officials may control the scene of an accident in the manner they deem appropriate and order a nonconsent tow. Operate-To drive or cause to be driven a tow truck on a public highway. Operator-Any person operating a tow truck on a public highway of this state. Original application -The required application form to obtain certificates of registration for a specific tow truck. Owner-A person owning, leasing, or otherwise using, either directly or indirectly, a tow truck on a public highway of this state. Person-An individual or other legal entity. Registration year -The period between January 1st and December 31st of each year. Renewal application -The required application form to renew certificates of registration for a specific tow truck. Tow truck-A commercial motor vehicle equipped with, or used in combination with a mechanical device, mini-wrecker, or auto trailer, and which is adapted or used to tow, winch or otherwise move a motor vehicle. Vehicle-As defined in Texas Civil Statutes, Article 6675a-1. sec.5.503. Registration Requirements. (a) Every current certificate of registration issued by the Texas Department of Licensing and Regulation before September 1, 1993, shall be valid until midnight December 31, 1993, unless otherwise cancelled or suspended by the commission. This provision shall expire on January 1, 1994. (b) Every tow truck shall have its own certificate of registration. A certificate of registration is not assignable or transferable, except as follows in this section. (c) Every certificate of registration expires at midnight on December 31st of each year. (d) A certificate of registration authorizes the operation of a tow truck in the state of Texas, provided the operator of the tow truck complies with all other applicable state laws. This act and its rules do not in any way reduce, diminish, or otherwise affect the jurisdiction of the commission to enforce the Motor Carrier Act. (e) The original certificate of registration shall be kept in the tow truck at all times and presented immediately upon request to any certified law enforcement official or commission representative. (f) A person desiring to operate a tow truck shall file a completed application and the appropriate fee with the commission on a form prescribed by the director. The original application must be signed by the owner or the owner's authorized representative. (g) All applications shall include an affidavit, signed by the owner or the owner's authorized representative, stating that all tow trucks sought to be registered are in compliance with the safety requirements of this subchapter and all other applicable state laws. (h) If the applicant is a corporation, the individual who signs the original application form, by signing the application, certifies that the corporation is in good standing with the State Comptroller of Public Accounts, and that all taxes or other assessments owed the state are paid. (i) On or before October 15th of each year, the commission shall issue a renewal application to each owner that has, in the preceding registration year, received a certificate of registration for a tow truck. The renewal application shall be on a form prescribed by the director for that purpose. A person desiring to operate a tow truck during any period of the next registration year shall complete and submit a renewal application before December 1st of each year. A renewal application shall be accompanied by the required renewal fee for each tow truck sought to be registered, and shall be signed by the owner or owner's authorized representative. (j) No renewal certificates of registration shall be issued for any tow trucks for which a renewal application is submitted when the renewal application bears a postmark after January 1st of the previous registration year. An owner must submit a new application to obtain a certificate of registration after that date. (k) A certificate of registration may be transferred during a current registration year from a tow truck which has been retired from service to one that has been placed in substitution of the retired tow truck. Substitution may be made by the owner when the retired tow truck's certificate of registration is returned to the commission and its request for substitution is submitted on a completed form prescribed by the director for that purpose, accompanied by the required fee. (l) Before a new tow truck is put into service during a current registration year, the owner shall apply to the commission for a certificate of registration on the form prescribed by the director for that purpose and pay the required fees. (m) Every certificated owner shall be assigned a unique number. That number shall remain the owner's number until such time as the owner fails to renew its certificates of registration or until such time as its certificates of registration are cancelled by the commission. An owner shall refer to its unique number in all correspondence with the commission. sec.5.505. Insurance Requirements. (a) Every owner shall file and maintain evidence of currently effective bodily injury and property damage automobile liability insurance in the following minimum amounts: (1) for a tow truck, together with the towed vehicle, having a gross vehicular weight, registered weight, or actual weight of 26,000 pounds or under, $300, 000 combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to the property of others; or (2) for a tow truck, together with the towed vehicle, having a gross vehicle weight, registered weight, or actual weight exceeding 26,000 pounds, $500,000 combined single limit for bodily injuries to or death of all persons injured or killed in any accident, and loss or damage in any one accident to the property of others. (b) Except as follows, every owner shall maintain and have on file with the commission evidence of cargo or on-hook insurance coverage. The intent of this subsection is to require insurance covering damage to a towed vehicle during which time the owner is the bailee of the vehicle being towed. The term "damage" shall include but is not limited to damage to the towed vehicle that is a direct or indirect result of an improper hookup or improper towing. The minimum insurance coverage required under this subsection shall be: (1) $10,000 for the loss of or damage to the vehicle towed by any one tow truck which, together with the towed vehicle, has a gross vehicular weight, registered weight, or actual weight of 26,000 pounds or less; or (2) $25,000 for the loss of or damage to the vehicle towed by any one tow truck which, together with the towed vehicle, has a gross vehicular weight, registered weight, or actual weight exceeding 26,000 pounds. (c) In lieu of cargo or on-hook insurance, an owner may secure garagekeepers legal liability insurance with direct primary coverage in an amount not less than that prescribed in subsection (b) of this section. (d) An owner who is exclusively engaged in the towing of property owned by it may, in its original application and in every renewal application, certify that all tow trucks operated by it are used exclusively to transport its own property. An owner or operator so certifying will be exempt from the requirements of subsections (b)-(c) of this section. (e) No owner shall operate a tow truck over the public highways of this state without the insurance coverage required by this section filed with the commission. (f) Evidence of insurance required in this section shall be filed on a form prescribed by the director and shall be duly completed and executed by an authorized representative of an insurance company holding a certificate of authority to transact business in the State of Texas, or by a surplus lines insurer that meets the requirements of the Insurance Code, Article 1.14-2, and rules adopted by the Texas Department of Insurance under that article. (g) Notwithstanding the provisions of subsection (a) of this section, an owner may be authorized to self-insure for bodily injury and property damage liability in lieu of filing proof of insurance. The authorization for an owner to self-insure may be granted upon the same showing required of a motor carrier under the terms of sec.5.28 of this title (relating to Qualification as Self- Insurer). (h) If insurance coverage lapses, the owner shall immediately cease all operations of tow trucks owned by it. The director shall notify the owner of any such lapse, and that all certificates of registration held by it shall be subject to cancellation. (i) The owner who files, or causes to be filed, evidence of bodily injury or property damage insurance shall pay the appropriate fee. sec.5.506. Fees. The following non-refundable fees apply in connection with this Act: (1) For each tow truck sought to be registered with an original application postmarked before January 1, 1994, the fee shall be $50. (2) For each tow truck sought to be registered with an original application postmarked after January 1, 1994, the fee shall be $120. (3) For each tow truck sought to be registered with a renewal application postmarked before December 1st of each year, the fee shall be $60. (4) For each tow truck sought to be registered with a renewal application postmarked between December 1st and December 31st of each year, the fee shall be $85. (5) The fee for adding newly acquired tow trucks during a current year shall be $60, prorated according to paragraph (7) of this subsection; except, during the first registration year the original application is filed the fee shall be the same as set forth in parargraph (2) of this subsection and prorated as set out in paragraph (7) of this subsection. (6) The fee for substituting a certificate of registration from one tow truck to another or for replacing a lost or stolen certificate of registration shall be $10. (7) An owner making an original application for certificates of registration or for requesting the addition of newly acquired tow trucks during a current registration year shall pay a prorated fee based on the number of months left in the registration year. sec.5.507. Tow Trucks as Commercial Motor Vehicles. Notwithstanding any provision of this subchapter, a tow truck is a commercial motor vehicle and the owner of a tow truck is a commercial carrier as those terms are defined in sec.5.21 of this title (relating to Definitions). Any violation of this Act or rule adopted in this subchapter respecting safety or insurance shall be the same as having violated the Motor Carrier Act, the Motor Carrier Safety Act or a rule adopted by the commission relating to those acts. sec.5.508. Inspection and Investigation by the Commission. (a) The commission or its authorized representative shall exercise all the authority given it under the Motor Carrier Act, and may examine the books, records, accounts, letters, memoranda, documents, checks, vouchers, or telegrams of a tow truck owner, as necessary to enforce the requirements of this subchapter. (b) Any person who applies for or has received a certificate of registration shall have given its implied consent for an authorized inspector of the commission to audit, examine, or inspect any business record, document, book, account, equipment, or facility of that person, as necessary to enforce the requirements of this subchapter. The refusal of a person to consent to such audit, examination or inspection shall constitute a violation under this subchapter. sec.5.509. Denial, Revocation, or Suspension for a Criminal Conviction. (a) This rule is promulgated pursuant to Texas Civil Statutes, Article 6252- 13c, sec.4 and Article 6252-13d sec.4, which require licensing authorities to examine an applicant's criminal conviction as it affects the duties and responsibilities of the licensed occupation, and Article 6687-9b sec.7(b), which requires the commission to adopt rules establishing procedures for denial, suspension, revocation, or reinstatement of a certificate of registration. (b) An owner who has a felony or misdemeanor conviction that directly relates to the duties and responsibilities involved in the operation of a tow truck, or which directly affects such person's present fitness to perform as a tow truck owner including any conviction for a crime involving moral turpitude, may be denied certificates of registration or have a certificate of registration suspended or revoked by the commission. An owner includes any partner in a partnership and any corporation where one of its officers or directors has a felony or misdemeanor conviction of the types described above. (c) In determining whether an owner's criminal conviction directly relates to the performance of a tow truck owner, the commission shall consider the following factors: (1) the nature and seriousness of the crime; (2) the relationship of the crime to the purposes for requiring a certificate of registration; (3) the extent to which a certificate of registration might offer an opportunity for the owner to engage in further criminal activity of the same type as that in which the owner previously had been involved; and (4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of a tow truck owner. (d) Those crimes which the commission considers as directly related to the performance of a tow truck owner include, but are not limited to, the following statutes and codes, as they may be amended from time to time: (1) any criminal violation of statutes regulating the registration and operation of tow trucks, as set out in Texas Revised Civil Statutes, Article 911b, sec.16 and 6687b-9; (2) any crime involving homicide, as set out in Texas Penal Code, Chapter 19; (3) any crime involving sexual assault, as set out in Texas Penal Code sec.sec.22.011 and 22.021; (4) any crime involving assault, as set out in Texas Penal Code, Chapter 22; (5) any crime involving robbery, as set out in Texas Penal Code, Chapter 29; (6) any crime involving burglary, as set out in Texas Penal Code, Chapter 30; (7) any crime involving theft, as set out in Texas Penal Code, Chapter 31; (8) any crime involving fraud, as set out in Texas Penal Code, Chapter 32; (9) any crime involving the unlawful possession or use of weapons, as set out in Texas Penal Code, Chapter 46; (10) any crime involving intoxication, alcoholic beverages, or controlled substances in conjunction with the operation of a motor vehicle, as set out in Texas Penal Code sec.sec.19.05 and 38.04; and (11) any crime involving reckless conduct in conjunction with the operation of a motor vehicle, as set out in Texas Penal Code sec.sec.22.05, 38.04, and 38.15. (e) In determining whether a criminal conviction directly affects a person's present activity and fitness as a tow truck owner, the commission shall consider the following: (1) the extent and nature of the owner's past criminal activity; (2) the age of the person at the time of the commission of the crime; (3) the amount of time that has elapsed since the person's last criminal activity; (4) the conduct and work activity of the person prior to and following the criminal activity; (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and (6) other evidence of the person's present fitness, including letters of recommendation from: (A) prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; (B) the sheriff and chief of police in the community where the person resides; and (C) and any other person in contact with the convicted person. (f) It shall be the responsibility of the owner with a criminal conviction to secure and provide to the commission, to the extent possible, the recommendations of the prosecution, law enforcement, and correctional authorities regarding all such convictions. Upon request and prior to a contested case hearing, an owner shall secure and provide to the commission a certified copy of the owner's conviction order and any indictment or information issued prior to such order. (g) The owner with a criminal conviction shall also furnish proof in such form as may be required by the commission that owner has: (1) maintained a record of steady employment; (2) supported his or her dependents; (3) otherwise maintained a record of good conduct; and (4) paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which owner has been convicted. sec.5.510. Administrative Sanctions. (a) When the term "violation" or "violate," in either singular or plural form, is used in this section it shall mean: (1) any violation of the Act, or rule or order adopted or issued related to the Act; (2) any violation of the Motor Carrier Act, or rule or order adopted or issued related to that act; (3) any violation of the Motor Carrier Safety Act, or rule or order adopted or issued related to that act; (4) any felony or misdemeanor conviction of an owner that directly relates to the duties and responsibilities involved in operating a tow truck; or (5) any revocation of an owner's felony probation, parole, or mandatory supervision. (b) If an owner or operator commits a violation the commission may: (1) deny, revoke or suspend the owner's certificate of registration; (2) assess an administrative penalty in an amount not to exceed that permitted by Texas Civil Statutes, Article 911b sec.4(a)(12); or (3) place the owner on probation. (c) If a suspension is probated, the commission may require the owner to: (1) report regularly to the commission or its designee on the matter made the basis of probation; or (2) limit areas of operations to the areas prescribed by the commission. (d) If, after investigation of a possible violation by an authorized inspector of the commission, the investigator determines that a violation has occurred, the investigator shall issue a report to the director, stating the facts on which the conclusion that a violation occurred is based. Upon reviewing the report, the director shall recommend what sanctions, if any, should be imposed upon the violator. If it is recommended by the director that sanctions should be imposed, the recommendation to the commission shall be based on the following factors which the commission may consider when ordering sanctions: (1) the seriousness of the violation; (2) the history of previous violations; (3) the amount or action necessary to deter future violations; (4) the amount of monetary gain realized by the owner charged; (5) efforts made to correct the violation; (6) if the violation involves a felony conviction or probation, parole, or mandatory supervision revocation: (A) the nature and seriousness of the crime; (B) the relationship of the crime to the safe operation and insuring of a tow truck; (C) the extent to which a certificate of registration might offer an opportunity to engage in further criminal activity of the same type as that in which the owner was previously involved; (D) the relationship of the crime to the ability, capacity, or fitness to perform the responsibilities of operating a tow truck; (E) the extent and nature of the owner's past criminal activity; (F) the amount of time elapsed between the owner's last criminal activity; (G) the conduct and work activity of the owner prior to and following the criminal activity; (H) whether or not the owner was a minor at the time of the conviction of the crime; (I) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; (J) other evidence of the person's present fitness as deemed appropriate; and (7) any other matters that justice may require. (e) The director shall give written notice of the violation to the owner. The notice shall include: (1) a brief summary of the charges; (2) a statement of the proposed sanction, and any accompanying conditions; and (3) a statement of the right of the owner charged to a hearing on the occurrence of the violation and the sanction and any terms thereof. (f) Not later than the 20th day after the date on which the notice is received, the owner charged may accept the recommendation of the director made under this rule, including the sanction and all accompanying conditions, or make a written request for a hearing on the charges made. The director may extend the time for the owner charged to reply to the recommendation, provided that in the opinion of the director, a good-faith effort to negotiate a settlement of the violation has begun. (g) If the owner charged with the violation accepts the recommendation of the director, the commission may issue an order approving the recommendation of the director (or other sanction as may be agreed upon between the director and the owner charged) ordering the recommended sanction and accompanying conditions be imposed upon that owner. The commission may refuse to issue an order approving the recommendation of the director and enter an order approving a lesser sanction, and it may require a hearing, or direct that further negotiations be made with the owner charged. (h) If the owner charged fails to respond in a timely manner to the notice, or if the owner requests a hearing, the director shall set a hearing and the charges heard. sec.5.511. Criminal Penalty Sanctions. (a) A person commits an offense if it operates a tow truck that: (1) does not have a valid certificate of registration issued under the Act; (2) operates a tow truck that does not have: (A) a valid certificate of registration issued under this Act; and (B) a valid tow license plate attached to the rear of the tow truck that is clearly visible from the rear of the truck. (b) A person convicted of a violation of this section shall be punished by a fine of not less than $200 and not more than $500. sec.5.512. General Technical Requirements. (a) Each tow truck must display a tow truck license plate issued by the Texas Department of Transportation under Texas Civil Statutes, Article 6675a-1. The plate must be permanently attached to the rear of the vehicle and in clear visible view. (b) Each tow truck shall have the owner's: (1) legal business name or legal assumed name as specified on the completed application form prescribed by the director; (2) city, or county (if the owner's place of business is in an unincorporated area); and (3) telephone number. (c) The identification markings shall be durably inscribed or affixed on each side of the tow truck in letters of no less than two inches, in contrasting colors, and clearly visible at 50 feet for a person with a normal vision range. (d) If the owner claims an exemption to the cargo, hook-up or similar insurance requirements of this subchapter, there must be durably affixed on each side of the tow truck, in letters at least two inches high, the words "Not For Hire". (e) Every tow truck owner shall comply with the law regarding brakes contained in Texas Revised Civil Statutes, Article 6701d sec.132, or rules adopted by the Public Safety Commission relating to motor carrier safety. (f) No tow truck shall tow more than its actual weight unless it has a 35,000 pound winch capacity (single or dual line), a 5/8 inch cable or its equivalent, and air brakes. If a certified law enforcement officer at the scene of an accident determines that the scene must be cleared immediately, and a heavy-duty tow truck is not available, the officer may waive this requirement at the scene. (g) When a tow truck is towing two or more vehicles, it must be able to tie into and operate the service brakes on the rearmost towed vehicle. This provision does not apply if the rearmost towed vehicle has only vacuum brakes and the tow truck is not equipped with a pneumatic braking system. (h) A tow truck equipped with a mechanical device shall have, as a minimum: (1) a winch that has a winch line and boom with a lifting capacity of not less than 8,000 pounds single line capacity; or (2) a wheel lift with a lifting capacity of not less 2,500 pounds. (i) A tow truck used in combination with a mini-wrecker or auto trailer equipped with a mechanical device shall have a lifting capacity of not less than 5,000 pounds, and it shall have a towing capacity of not less than 7,000 pounds whether or not it is equipped with a mechanical device. (j) Each tow truck shall have the following standard equipment: (1) for a tow truck towing a motor vehicle that has wheels in contact with the ground a mechanical device or other equipment sufficient to prevent the swinging of the motor vehicle being transported; (2) standard J-hook-up chains and at least two 5/16 inch link steel safety chains for tow trucks with a registered weight of 10,000 pounds or less; (3) at least two 3/8 inch steel safety chains or their equivalent for tow trucks with a registered weight over 10,000 pounds; (4) rope, wire, or straps suitable for securing doors, hoods, trunks or other parts of the motor vehicle being towed for the safe tow of such motor vehicle; and (5) outside rear view mirrors on both sides of the tow truck. (k) A tow truck operator towing a vehicle that does not have functioning tail lights, or turn signals, while being towed shall supply the towed motor vehicle with functioning tail lights or turn signals. (l) A tow truck operator shall perform a safety wrap sufficient to secure the towed motor vehicle in the event of failure of the mechanical device used in towing the motor vehicle. (m) Safety chains shall be used on all tows performed by an operator. (n) Tow trucks with a slip-in bed must have the bed properly secured to the frame of the truck by a minimum of eight one-half inch diameter bolts of which at least four must be at the front of the slip-in bed. (o) A tow truck with a mechanical device shall not be used to lift or tow more than its safe lifting capacity as recommended by the manufacturer. (p) A tow truck operator must have a valid driver's license of the proper class. (q) A tow truck shall, at all times, meet the motor vehicle inspection standards required by law. (r) No tow truck operator shall tow a vehicle contrary to the recommended towed vehicle's manufacturer's safety policies and procedures regarding hook-up and towing. (s) A tow truck owner shall inform consumers or service recipients of the name, mailing address, and telephone number of the commission for purposes of directing unresolved complaints to the commission. The information pertaining to any unresolved complaints may be included on: (1) a written tow truck slip or ticket; (2) a sign prominently displayed at the place of payment; or (3) any other bill for service. (t) The term "unresolved complaint" as used in this section shall mean a good- faith effort between the tow truck owner and the consumer or service recipient, to reach an amiable solution to their to dispute, and are unable to do so. (u) At no time shall any owner tow a vehicle while there is a person in the towed vehicle. Violation of this provision shall subject the violator to the administrative penalty sanctions as set out in this subchapter. sec.5.513. Technical Requirements for Accident Scene Tow Trucks. (a) A tow truck responding to, or towing from, the scene of an accident shall be equipped with at least the following: (1) a 10 pound BC fire extinguisher or two five pound BC fire extinguishers. All fire extinguishers shall be properly filled, operable, and located so as to be readily accessible for use. Fire extinguishers shall meet, at least, the minimum requirements of the National Fire Protection Handbook, 14th edition (1976), and shall be labeled by a national testing laboratory; (2) a crowbar or wrecking bar; (3) a broom or other device for clearing highways of debris; (4) three portable red emergency reflectors, orange safety cones, or flares; (5) a container to carry glass and debris cleaned from a highway; (6) a spotlight or flashlight; and (7) flashing warning lights that comply with the Uniform Act Regulating Traffic on Highways (Texas Civil Statutes, Article 6701d sec.124(d)). (b) A tow truck operator shall ensure that, while a motor vehicle is being lifted in preparation for towing, no one but the operator and certified law enforcement officers shall be within a safe distance of the tow truck. (c) A tow truck operator responding to the scene of an accident shall remove from the highway debris resulting from an accident which may impede the orderly flow of traffic. This includes broken glass or other light weight debris that can easily be removed by one person, unless the operator is requested to perform other clean-up services in connection with an accident by an a certified law enforcement official or other authorized government official, and which clean-up does not involve the removal of the cargo carried by a vehicle associated with the wreckage. (d) Certified law enforcement officials may do whatever is necessary to control the scene of an accident when an emergency situation exists. sec.5.514. Technical Requirements for Recovery of Vehicles for a Lien Holder. (a) An operator shall not tow a motor vehicle for a lien holder using towing pins or towing blades more than one mile, unless the operator rehooks the towed motor vehicle and observes all the requirements set forth in this subchapter. (b) The requirements for safety wraps and safety chains do not apply during the first one mile where the towing pins or tow blade are used. Thereafter, they must be utilized as set forth in sec.5.512 of this title (relating to General Technical Requirements). sec.5.515. Leases. (a) A person who, through a lease, memorandum, or agreement, assumes supervision, direction, or control of a tow truck which is to be used exclusively or primarily for the conduct of its business, is a tow truck owner under the rules of this subchapter. (b) Any person operating a tow truck pursuant to a lease, memorandum, or agreement shall file an executed copy of the lease, memorandum, or agreement with the Department of Public Safety. (c) A person who acquires use of a tow truck through lease, memorandum or agreement shall maintain full direction and control over the operation of the tow truck and its operator at all times in which the lease, memorandum or agreement is in effect. sec.5.516. Assumed Business Names. (a) An owner shall not operate any tow truck under more than one assumed business name. (b) Every tow truck owner operating a tow truck under an assumed business name shall file such name with the county clerk's office of the county in which it resides or in which it bases a tow truck. If a corporation, a tow truck owner shall file its assumed business name with the secretary of state. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501325 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter X. Agricultural Permits 16 TAC sec.sec.5.534-5.538 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.534-5.538, concerning scope of exemption under House Bill 593; definitions of key terms relating to agricultural commodities exemption; procedures for obtaining agricultural permits; grace period for holders of seasonal agricultural permits; and enforcement of regulations governing operations under an agricultural permit. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorizes the commission to prescribe rules and regulations for the operations of motor carriers. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 911b. sec.5.534. Scope of Exemption Under House Bill 593. sec.5.535. Definitions of Key Terms Relating to Agricultural Commodities Exemption. sec.5.536. Procedures for Obtaining Agricultural Permits. sec.5.537. Grace Period for Holders of Seasonal Agricultural Permits. sec.5.538. Enforcement of Regulations Governing Operations Under an Agricultural Permit. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501314 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter Z. Base Rates, Deviations, and Suspensions 16 TAC sec.sec.5.581-5.590 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.581-5.590, concerning annual review of base rates and charges, deviations from base rates, contract carrier deviations, suspension of deviations, increase or decrease in base rate or charge, procedures for annual base rate adjustment hearings, base rate deviation procedures, procedures for deviation suspension proceedings, publication of deviations, and specific rates and charges. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.581. Annual Review of Base Rates and Charges. sec.5.582. Deviations from Base Rates. sec.5.583. Contract Carrier Deviations. sec.5.584. Suspension of Deviations. sec.5.585. Increase or Decrease in Base Rate or Charge. sec.5.586. Procedures for Annual Base Rate Adjustment Hearings. sec.5.587. Base Rate Deviation Procedures. sec.5.588. Procedures for Deviation Suspension Proceedings. sec.5.589. Publication of Deviations. sec.5.590. Specific Rates and Charges. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501315 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter H. Vehicle Storage Facilities 16 TAC sec.sec.5.601, 5.603-5.620 The Railroad Commission of Texas proposes new sec.sec.5.601, 5.603-5.620, concerning authority; definitions; licensing requirements; exemptions; responsibilities of the licensee-accepting vehicles for storage; responsibilities of the licensee-storage requirements; responsibilities of the licensee-documentation; responsibilities of the licensee-vehicle transfers; fees-original license; fees-renewal license; fees-duplicate license; sanctions- administrative sanctions; sanctions-administrative penalty/fine; sanctions- injunctive relief and civil penalty; sanctions-criminal penalty; sanctions- revocation or suspension because of a criminal conviction; technical requirements; technical requirements-storage fees/charges; and technical requirements-other statutes and administrative rules, city ordinances. This proposal is made as part of a comprehensive revision of this title in light of recent legislative changes to statutes concerning regulation of transportation and to reorganize the Commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the proposal is in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed new sections. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the new sections are in effect the public benefit anticipated as a result of the proposal will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the new sections as proposed. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The subchapter is proposed under the Vehicle Storage Act, Texas Civil Statutes, Article 6687-9a, which authorize the commission to adopt rules establishing requirements for the licensing of persons to operate vehicle storage facilities. The following article is affected by the proposed sections: Texas Civil Statutes, Article 6687-9a. sec.5.601. Authority. The sections in this chapter are promulgated under the Vehicle Storage Facility Act (Texas Civil Statutes, Article 6687-9a) and Texas Civil Statutes, Article 9100. sec.5.603. Licensing Requirements. (a) A person must hold a current license issued by the commission in order to operate a vehicle storage facility. (b) A license to operate a vehicle storage facility is not transferable or assignable. (c) A license to operate a vehicle storage facility issued by the commission is valid only for the physical location indicated on the license. (d) An application for a license to operate a vehicle storage facility must be made under oath and must contain: (1) a list of felony convictions and misdemeanor convictions for which the maximum punishment is confinement in jail or a fine exceeding $500 that were obtained against the applicant, a partner, a principal, or the general manager or an officer of the applicant during the three years immediately preceding the date of the application: (2) the name and address of each partner, if the applicant is a partnership; (3) the name and address of each corporate officer, if the applicant is a corporation; (4) the names of all owners of the vehicle storage facility and the percentage of ownership interest each holds in the facility; (5) the name of the operator/manager of the vehicle storage facility if it is not operated/managed by one of the owners; (6) the facility's physical address, mailing address, and telephone number; (7) the vehicle storage facility's storage capacity; (8) if applicable, the height of the fence enclosing the vehicle storage facility and the date it was installed; (9) a statement indicating whether or not the facility has an all weather surface as required by sec.5.618 of this title (relating to Technical Requirements); (10) a statement indicating whether or not the facility has the signs posted in the proper locations required by sec.5.618 of this title (relating to Technical Requirements); and (11) a statement indicating whether or not the facility has the lighting required by sec.5.618 of this title (relating to Technical Requirements). (e) A corporation's application must be signed and sworn to by its president and secretary. (f) Each license issued by the commission expires on the anniversary date of when it is issued. (g) A licensee may apply annually, on a form provided by the commission, to renew the license. (h) If a renewal application is not submitted before a license expires, the license may not be renewed. (i) An individual, partnership, or corporation whose license expires and is not renewed must apply for a new license if the vehicle storage facility is still in business. sec.5.604. Exemptions. The Act and the administrative rules do not apply to: (1) a vehicle parked or stored at a vehicle storage facility with the consent of the vehicle's owner; or (2) a vehicle storage facility operated by a person licensed pursuant to the Texas Motor Vehicle Commission Code, Texas Civil Statutes, Article 4413(36). sec.5.605. Insurance Requirements. (a) Each license applicant shall file with the commission a certificate of insurance evidencing the required garage keeper's legal liability insurance for the vehicle storage facility. (b) No insurance policy or certificate of insurance will be accepted by the commission unless issued by an insurance company licensed and authorized to do business in this state in the form prescribed or approved by the State Board of Insurance and signed or countersigned by an authorized agent of the insurance company. (c) Insurance coverage shall be in an amount of not less than $9,000 for injury to or destruction of property of others if the vehicle storage facility has space to store not more than 50 motor vehicles; $18,000 if the facility has space to store 51 to 99 motor vehicles; and $25,000 if the facility has space to store 100 or more motor vehicles. (d) The vehicle storage facility's insurance policy shall provide that the insurance company will give the commission 30 days prior written notice of any policy cancellation or expiration. (e) The vehicle storage facility's insurance policy shall be kept in full force and effect so long as the facility is operating. sec.5.606. Responsibilities of the Licensee-Accepting Vehicles for Storage. (a) When the licensee, his agent, or his employee accepts a vehicle towed without the vehicle owner's consent, he shall inspect the vehicle and note as an addition on the wrecker slip or wrecker ticket any differences from the information previously set out thereon, but shall not write over or deface any prior writing on the slip or ticket. If the license plate number or vehicle identification number on the wrecker ticket or wrecker skip was incorrect, the storage facility shall note on its records the correct number and notify every previously advised person within 48 hours of noting the correct information. (b) After accepting for storage a vehicle registered in Texas, the vehicle storage facility must notify the vehicle's last registered owner and all recorded lienholders by certified/registered mail within five days, but in no event sooner than within 24 hours of receipt of the vehicle. If the certified/registered letter is returned unclaimed, refused, or moved, left no forwarding address, publication in a newspaper is not required. If the identity of the last registered owner cannot be determined, if the registration contains no address for the owner, or if it is impossible to determine with reasonable certainty the identity and address of all lienholders, notice in one publication in one newspaper of general circulation in the area where the vehicle was towed from is sufficient. (c) After accepting for storage a foreign registered vehicle, the vehicle storage facility must notify the vehicle's last registered owner and all recorded lienholders by certified/registered mail within 14 days, but in no event sooner than within 24 hours of receipt of the vehicle. If the certified/registered letter is returned unclaimed, refused, or moved, left no forwarding address, publication in a newspaper is not required. If the identity of the last registered owner cannot be determined, if the registration contains no address for the owner, or if it is impossible to determine with reasonable certainty the identity and address of all lienholders, notice in one publication in one newspaper of general circulation in the area where the vehicle was towed from is sufficient. (d) It shall be a defense to an action initiated by the commission for violation of this section that the facility has attempted, in writing, but been unable to obtain information from the foreign registry department. (e) The vehicle storage facility operator may not charge an owner more than $25 for this notification. However, if a vehicle is removed by the owner within 24 hours after the date the operator receives the vehicle, then no notification is required under this section, and no notification fee may be charged to the owner by the vehicle storage facility operator. (f) Notification will be considered to have occurred when the United States Postal Service places its postmark upon the written notice. (g) All notifications shall state: (1) the full name of the vehicle storage facility where the motor vehicle is located, its street address and telephone number, and the hours the vehicle can be released to the vehicle owner; (2) the daily storage rate, the type and amount of all other charges assessed, and the total amount of fees which must be paid before the vehicle will be released; (3) if the operator will be transferring a vehicle to a second lot if it is not claimed within a certain time period, the date the vehicle will be moved from thevehicle storage facility and the address to which it will be moved; (4) the date the vehicle was accepted for storage and from where, when, and by whom the vehicle was towed; (5) the vehicle storage facility number preceded by the words "Railroad Commission of Texas Vehicle Storage Facility License Number"; and (6) a notice of the towed vehicle owner's right under Texas Civil Statutes, Article 6701g, to challenge the legality of the tow involved. (h) A vehicle storage facility accepting a non-consent towed vehicle towed from private property must report that tow to the local law enforcement agency from the area where the vehicle was towed. This report must be made within two hours of receiving the vehicle, giving the vehicle's license plate number and issuing state, vehicle identification number, and location from which it was towed. Facility records must indicate specifically to whom the stated information was reported and in what manner, as well as the time and date of the report. sec.5.607. Responsibilities of the Licensee-Storage Requirements. (a) No vehicle may be stored or kept at any licensed storage facility unless it is kept inside the fenced or enclosed area at all times. For purposes of this subsection, enclosed shall mean inside a building. A vehicle accepted for storage in a facility must be secured to prevent theft of the vehicle or its contents, including but not limited to locking doors, closing windows and hatchbacks, and raising or covering convertible tops. (b) Except as stated to the contrary herein, no parts shall be removed from any vehicle, and no vehicle shall be dismantled or demolished within in the storage area of a licensed vehicle storage facility. Vehicles may be dismantled or demolished only if the storage lot has a certificate of title, certificate of authority to demolish, police auction sales receipt, or transfer document issued by the State of Texas for the vehicle being dismantled or demolished. (c) No stored vehicle may be used by the vehicle storage lot owner, operator, or its employee(s) for personal or business use. (d) A one-time fee of $10 may be charged for preservation of a stored vehicle, as defined in sec.5.602 of this title (relating to definitions). If doors or windows are broken or inoperative and require the use of materials such as plastic or canvas tarpaulins, such materials must be used to ensure the preservation of the stored vehicle. If the vehicle storage facility operator charges a fee for preservation, the written bill for services must specify the exact conduct included in that fee and the date(s) when such conduct occurred. (e) A vehicle accepted for storage may not be repaired, altered, or have parts removed or replaced without the vehicle owner's or his authorized representative's consent. sec.5.608. Responsibilities of the Licensee-Documentation. (a) Each licensee shall keep written records on each vehicle kept or stored at the vehicle storage facility. These records shall contain: (1) the year, make, model, color, correct license plate number, state issuing the license, and correct vehicle identification number of the vehicle; (2) the date, time and location from which the vehicle was towed, and who authorized the tow; (3) the name of the tow truck driver, the tow truck's regular and tow truck license plate numbers, and the name of the company that towed the vehicle; (4) the date the vehicle was released and the name of the individual to whom the vehicle was released; (5) the date of any vehicle transfer, and the address of the location to which it was transferred along with the name of the towing company and tow truck driver who made the transfer; (6) a copy of any certificate of title issued after the vehicle came into the possession of the vehicle storage facility, any certificate of authority to demolish, any police auction sales receipt, or any transfer document issued by the State of Texas for the vehicle if vehicle ownership has been transferred due to any action of the vehicle storage facility or the vehicle has been disposed of or demolished; and (7) all amounts received at the time the vehicle was released, including the specific nature of each charge. (b) Documentation may be kept in the form of wrecker tickets and wrecker slips if all required information is recorded on those tickets and slips. (c) All required documentation shall be made available by the licensee, his agent, or his employee for inspection and copying upon request by commission personnel, or a certified law enforcement officer within his jurisdiction, during the same hours the vehicle storage facility must ensure that vehicles are available for release to the vehicle owner. (d) Required records shall be kept under the care and custody of the licensee for at least two years from the date the vehicle was received. (e) When a person demonstrates ownership or right to possession of a motor vehicle stored at a vehicles storage facility: (1) the person or his/her authorized representative shall be entitle to inspect a copy of the wrecker slip or wrecker ticket for the motor vehicle and shall not be required to pay any fees or charges before doing so. Placing the slip or ticket behind a glass inclosure for the person to inspect satisfies this requirement; (2) the person, or his/her authorized representative, shall have access to, and be allowed to remove, any personal belongings in the vehicle, unless otherwise indicated by a certified law enforcement officer. The storage facility must require a receipt from the person to whom the personal belongings are released for any such property removed from the stored vehicle by the vehicle owner or authorized representative; and (3) the person or his/her authorized representative shall have access, during normal business hours, to the vehicle for the purposes of insurance and/or repair estimates. sec.5.609. Responsibilities of the Licensee-Vehicle Transfers. (a) When a motor vehicle has been delivered to a storage facility, the vehicle may not be moved from that facility within the first 31 days of storage without the vehicle owner's authorization. If it becomes necessary to move the vehicle during the first 31 days of storage because of storage facility capacity problems, neither the registered vehicle owner or recorded lienholder(s) may be assessed an additional charge. The vehicle storage facility must send notice in accordance with sec.5.606(b) of this title (relating to Responsibilities of the Licensee-Accepting Vehicles for Storage), except that the notice must be sent no less than 72 hours prior to moving the vehicle. (b) If a vehicle is moved from a storage facility, the licensee shall: (1) charge only those fees otherwise permitted by s5.619 of this title (relating to Technical Requirements -Storage Fees/Charges) after the vehicle is towed to another location without the vehicle owner's permission; (2) comply with all provisions of Texas Civil Statutes, Article 6701g-3, relating to the rights of the owner of a stored vehicle; (3) allow the vehicle owner or his/her authorized representative to obtain possession of the vehicle upon presentation of any one of the following: (A) a notarized power-of-attorney; (B) a commission-approved affidavit of right of possession; (C) a court order; (D) a title; (E) a tax collector's receipt and a license plate renewal card accompanied by a conforming ID; (F) notarized proof of loss claim of theft from an insurance company to show a right to possession, and payment of all fees, at any time between the hours posted on the sign at the location where the vehicle is stored; or (G) positive name and address information corresponding to that contained in the files of the Motor Vehicle Division of the Texas Department of Highways and Public Transportation, and payment of all fees, at any time between the hours posted on the sign at the location where the vehicle is stored; (4) retain records and inform the vehicle owner upon request of the location where the vehicle is at all times from the date on which the vehicle is transferred from the vehicle storage facility until such time as the vehicle is recovered by the vehicle owner or a new certificate of title, a certificate of authority to demolish, a police auction sales receipt, or a transfer document is issued by the State of Texas; and (5) maintain a record of the ultimate disposition of the vehicle, including the date and name of the person to whom the vehicle is released or a description of the document under which the vehicle was sold or demolished. sec.5.610. Fees-Original License. (a) The fee for an original license to operate a vehicle storage facility is $100. (b) This fee is nonrefundable. sec.5.611. Fees-Renewal License. (a) The annual renewal fee for a license to operate a vehicle storage facility is $75. (b) This fee is nonrefundable. sec.5.612. Fees-Duplicate License. (a) A $25 fee will be charged for issuing a duplicate license. (b) This fee is nonrefundable. sec.5.613. Sanctions-Administrative Sanctions. (a) If a licensee, a partner of a licensee, a principal in the licensee's business, or an employee of the licensee, with the licensee's knowledge, violates the Act, or a rule or order promulgated under the Act, the commission or its designee may issue a written warning to the licensee specifying the violation. In addition, the commission may, after notice and a hearing: (1) deny, revoke, or suspend a license; or (2) place a person on probation whose license has been suspended. (b) If a suspension is probated, the commission may require the person to: (1) report regularly to the commission or its designee on matters that are the basis of the probation; or (2) limit practice to the areas prescribed by the commission. (c) If, after investigation of a possible violation by an authorized inspector of the commission, the investigator determines that a violation has occurred, the investigator shall issue a preliminary report to the director, stating the facts on which the conclusion that a violation occurred is based. Upon reviewing the report, the director shall recommend to the commission what sanctions, if any, should be imposed upon the violator. If it is determined by the director that sanctions should be imposed, the recommendation to the commission shall be based on the following factors, which the commission may consider when ordering sanctions: (1) the seriousness of the violation; (2) the history of previous violations; (3) the amount necessary to deter future violations; (4) efforts made to correct the violation; and (5) any other matters that justice may require. (d) The director shall give written notice of the violation to the person charged. The notice shall include: (1) a brief summary of the charges; (2) a statement of the proposed sanction, and any accompanying conditions; and (3) a statement of the right of the person charged to a hearing on the occurrence of the violation and the sanction and any terms thereof. (e) Not later than the 20th day after the date on which the notice is received, the person charged may accept the recommendation of the director made under this rule, including the recommended sanction and all accompanying conditions, or make a written request for a hearing on that recommendation. The director may extend the time for the person charged to reply to the recommendation, provided that in the opinion of the director, a good-faith effort to negotiate a settlement of the violation has begun. (f) If the person charged with the violation accepts the recommendation of the director, the commission may issue an order approving the recommendation (or other sanction as may be agreed upon between the director and the person charged) and ordering that the recommended sanction and accompanying conditions be imposed upon that person. The commission may refuse to issue an order approving the recommendation of the director, and may enter an order approving a different sanction, or require a hearing, or direct that further negotiations be made with the person charged. (g) If the person charged fails to respond in a timely manner to the notice, or if the person requests a hearing, the director shall set a hearing, give written notice of the hearing to the person, and designate a hearings examiner to conduct the hearing. sec.5.614. Sanctions-Administrative Penalty/Fine. (a) If a person violates the Act, or a rule or order adopted or issued by the commission relating to the Act, the commission may, in addition to or in lieu of a sanction imposed under sec.5.613 of this title (relating to Sanctions- Administrative Sanctions), assess an administrative penalty in an amount not to exceed $1,000 for each violation. (b) A penalty collected under this section shall be deposited in the state treasury to the credit of the general revenue fund. (c) If, after investigation of a possible violation by an authorized inspector of the commission, the investigator determines that a violation has occurred, the investigator shall issue a preliminary report to the director, stating the facts on which the conclusion that a violation occurred is based. Upon reviewing the report, the director shall recommend to the commission what administrative penalty, if any, should be imposed upon the person charged; such administrative penalty shall not exceed $1,000 for each violation imposed upon the person charged. If it is determined by the director that an administrative penalty should be imposed, the recommendation to the commission shall be based on the following factors, which the commission may consider when ordering an administrative penalty: (1) the seriousness of the violation; (2) the history of previous violations; (3) the amount necessary to deter future violations; (4) efforts made to correct the violations; and (5) any other matters that justice may require. (d) The director shall give written notice of the violation to the person charged. The notice shall include: (1) a brief summary of the charges; (2) a statement of the amount of the penalty recommended; and (3) a statement of the right of the person charged to a hearing on the occurrence of the violation and the amount of the penalty. (e) Not later than the 20th day after the date on which the notice is received, the person charged may accept the recommendation of the director made under this rule, including the recommended penalty, or make a written request for a hearing on that recommendation. (f) If the person charged with the violation accepts the recommendation of the director, the commission may issue an order approving the recommendation (or other penalty as may be agreed upon between the director and the person charged) and ordering that the person pay the recommended penalty. The commission may refuse to issue an order approving the recommendation of the director, and may enter an order approving a different penalty, or require a hearing, or direct that further negotiations be made with the person charged. (g) If the person charged fails to respond in a timely manner to the notice, or if the person requests a hearing, the director shall set a hearing, give written notice of the hearing to the person, and designate a hearings examiner to conduct the hearing. sec.5.615. Sanctions-Injunctive Relief and Civil Penalty. (a) If it appears that a person is in violation of, or is threatening to violate, the Act or a rule or order promulgated under the Act, the commission, or the attorney general at the commission's request, may institute an action for injunctive relief to restrain the person from continuing the violation and for civil penalties not to exceed $1,000 for each violation and not exceeding $250,000 in the aggregate. (b) If the commission or the attorney general prevails in an action under this section, the commission or the attorney general is entitled to recover reasonable attorney's fees and court costs. sec.5.616. Sanctions-Criminal Penalty. (a) A person commits an offense if the person: (1) operates a vehicle storage facility that does not have a valid license issued under the Act; or (2) violates any rule adopted by the commission under the Act. (b) A person convicted of an offense under this section shall be punished by a fine of not less than $200 and not more than $500. (c) A person commits a separate offense for each day the person acts in violation of this section. (d) A peace officer or license and weight inspector for the Department of Public Safety may make an arrest for a violation of a rule adopted under the Act. sec.5.617. Sanctions-Revocation or Suspension Because of a Criminal Conviction. (a) The commission may revoke, suspend, or deny a license issued under the Act, or place a person on probation whose license has been suspended, if the commission determines that a licensee, a partner of the licensee, a principal in the licensee's business, or an employee of the licensee has been finally convicted, in the three years immediately preceding the date of the application, of: (1) a felony; or (2) a misdemeanor that: (A) is punishable by confinement or by a fine exceeding $500; and (B) directly related to a duty or responsibility of a vehicle storage facility operator. (b) The commission may also, after hearing, suspend, revoke, or deny a certificate of registration because of a person's felony probation revocation, parole revocation, or revocation of mandatory supervision. (c) In determining whether a criminal conviction directly relates to the operation of a vehicle storage facility, the commission shall consider: (1) the nature and seriousness of the crime; (2) the relationship of the crime to the operation and of a vehicle storage facility; (3) the extent to which a certificate of registration might offer an opportunity to engage in further criminal activity of the same type as that in which the person was previously involved; and (4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of operating a vehicle storage facility. (d) In determining the present fitness of a person who has been convicted of a crime, the commission shall also consider: (1) the extent and nature of the person's past criminal activity; (2) whether or not the person was a minor at the time of the commission of the crime; (3) the amount of time that has elapsed since the person's last criminal activity; (4) the conduct and work activity of the person prior to and following the criminal activity; (5) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and (6) other evidence of the person's present fitness, including letters of recommendation from prosecution, law enforcement, and correctional officers who prosecuted, arrested, or had custodial responsibility for the person; the sheriff and chief of police in the community where the person resides; and any other persons in contact with the convicted persons. (e) It shall be the responsibility of the applicant, to the extent possible, to secure and provide the commission the recommendations of the prosecution, law enforcement, and correctional authorities as required. (f) The applicant shall also furnish proof, in such form as may be required by the commission, that he or she has maintained a record of steady employment, has supported his or her dependents per court order, has otherwise maintained a record of good conduct, and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases in which he or she has been convicted. sec.5.618. Technical Requirements.
                                                    Each vehicle storage facility: (1) shall notify consumers and service recipients of the name, mailing address, and telephone number of the commission for purposes of directing complaints to the commission. The licensee may use a sticker or rubber stamp to convey the required information. The notification shall be included on: (A) any written wrecker slip or ticket; (B) a sign prominently displayed at the place of payment; or (C) any bill for service; (2) if not enclosed by a five foot high fence on or before September 1, 1985, shall be completely enclosed by a fence at least six feet high with a gate which is locked at all times the licensee or an agent or employee is not at the storage lot; (3) shall have an all-weather surface such as concrete, asphalt, black-top, stone, macadam, limestone, iron ore, gravel, shell, or caliche, that enables the safe and effective movement of stored vehicles upon all portions of the lot, both under their own power and under tow, at all times, regardless of prevailing weather conditions; (4) shall have a clearly visible and readable sign at its main entrance setting out the name of the storage lot, the street address, the telephone number, the hours, within one hour of which vehicles will be released to vehicle owners, and the storage lot's state license number preceded by the phrase "VSF License Number"; (5) must have vehicles available for release 24 hours a day within one hour's notice if it accepts vehicles 24 hours a day; (6) if it does not accept vehicles 24 hours a day, must have vehicles available for release within one hour between the hours of 8:00 a.m. and 12:00 a.m. Monday-Saturday and from 8:00 a.m.-5:00 p.m. on Sundays except for nationally recognized holidays. It is not the intent of this section to require release of vehicles after 12:00 a.m., and refusal to release after that time, even with notice after 11:00 p.m., is not a violation of this section; (7) shall post on its sign a telephone number for the vehicle owner to contact in order to obtain release of the vehicle; (8) shall have a sign setting out the per diem charge for storage and all other fees which may be charged by the storage lot, including administrative and preservation/pound fees. This sign shall be located so it is clearly visible to a vehicle owner prior to paying the fees; (9) shall have a publicly listed and operable telephone where the licensee can be contacted. If the telephone number is changed from the number set out in the vehicle storage license application, the licensee shall give the commission written notice of the change prior to the date the new number is used. The notice shall include the storage lot's name, its location, its license number, the old telephone number, and the new telephone number; (10) shall maintain illumination levels adequate for nighttime release of vehicles. Adequate shall mean sufficient to allow inspection of a vehicle for damage at the time of release. At a minimum, there must be one lighting fixture containing at lease a 250 watt element for each 1/4 acre of storage area; (11) shall not permit any tow truck which is not registered and displaying the required Texas tow truck license plate per the provisions of the Texas Tow Truck Act, Texas Civil Statutes, Article 6687-9b, and the administrative rules promulgated thereunder, to enter onto the grounds of the facility. sec.5.619. Technical Requirements -Storage Fees/Charges. (a) A vehicle storage facility operator may not charge an owner more than $25 for notification under sec.5.606 of this title (relating to Responsibilities of the Licensee-Accepting Vehicles for Storage). (b) A vehicle storage facility operator is entitled to charge an owner $10 for preservation of a stored motor vehicle, as defined in sec.5.602 of this title (relating to Definitions). (c) A vehicle storage facility operator may not charge less than $5.00 or more than $15 for each day or part of a day for storage of a vehicle. A daily storage fee may be charged for a day regardless of whether the vehicle is stored for 24 hours of the day, except that a daily storage fee may not be charged for more than one day if the vehicle remains at the vehicle storage facility less than 12 hours. For the purposes of this subsection, a day is considered to begin and end at midnight. (d) A vehicle storage facility operator may not charge any additional fees that are similar to notification, preservation, or administrative fees. (e) This section controls over any conflicting municipal ordinance or charter provision. (f) For purposes of this section, "vehicle storage facility" includes a garage, parking lot, or any type of facility owned by a governmental entity for storing or parking 10 or more vehicles. sec.5.620. Technical Requirements -Other Statutes and Administrative Rules; City Ordinances. Each vehicle storage facility must meet the requirements of all other applicable statutes and administrative rules promulgated thereunder and all applicable city ordinances in addition to meeting the requirements of these rules. The following statutes and ordinances are at least some of the other laws which may impact your operation of a vehicle storage facility. You should contact the named agency for more information. (1) Texas Tow Truck Act, Texas Civil Statutes, Article 6687-9b. This act regulates the operation of tow trucks in the State of Texas. This statute is administered by the Railroad Commission of Texas. (2) The Property Code, sec.70.003 and sec.70.004. These sections relate to a lien on a motor vehicle, motorboat, vessel, or outboard motor for towing services. (3) Any city ordinances relating to zoning. Contact city officials in the city in which your storage facility is located. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501326 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter BB. Miscellaneous Provisions for Commercial Motor Vehicles 16 TAC sec.5.701 (Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of s5.701, concerning violations by owners or operators of commercial motor vehicles. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeal. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of the proposal will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeal is proposed under Texas Civil Statutes, Article 6701d, which authorizes the commission to prescribe rules and regulations regarding commercial motor vehicles. The following is the article that is affected by this repeal: Texas Civil Statutes, Article 6701d. sec.5.701. Violations by Owners or Operators of Commercial Motor Vehicles. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501316 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter CC. Tow Trucks 16 TAC sec.sec.5.801-5.819 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.801-5.816, concerning authority; definitions; registration requirements; exemptions; insurance requirements; tow trucks as commercial motor vehicles; inspection and investigation by the commission; denial, revocation, or suspension for a criminal conviction; administrative sanctions; criminal penalty sanctions; general technical requirements; technical requirements for accident scene tow trucks; technical requirements for recovery of vehicles for a lien holder; leases; and assumed business names. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under Texas Civil Statutes, Article 6687-9b, which authorizes the commission to prescribe rules and regulations for registration of tow trucks. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 6687-9b. sec.5.801. Authority. sec.5.802. Definitions. sec.5.803. Registration Requirements. sec.5.804. Exemptions. sec.5.805. Insurance Requirements. sec.5.806. Fees. sec.5.807. Tow Trucks as Commercial Vehicles. sec.5.808. Inspection and Investigation by the Commission. sec.5.809. Denial, Revocation, or Suspension for a Criminal Conviction. sec.5.810. Administrative Sanctions. sec.5.811. Criminal Penalty Sanctions. sec.5.812. General Technical Requirements. sec.5.813. Technical Requirements for Accident Scene Tow Trucks. sec.5.814. Technical Requirements for Recovery of Vehicles for a Lien Holder. sec.5.815. Leases. sec.5.816. Assumed Business Names. sec.5.817. Technical Requirements -Accident Scene Tow Trucks. sec.5.18. Technical Requirements -Repossession/Recovery Tow Trucks. sec.5.19. Technical Requirements -Other Statutes and Administrative Rules. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501317 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter DD. Vehicle Storage Facilities 16 TAC sec.sec.5.901-5.920 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.901-5.920, concerning authority; definitions; licensing requirements; exemptions; responsibilities of the licensee-accepting vehicles for storage; responsibilities of the licensee-storage requirements; responsibilities of the licensee-documentation; responsibilities of the licensee-vehicle transfers; fees-original license; fees-renewal license; fees-duplicate license; sanctions- administrative sanctions; sanctions-administrative penalty/fine; sanctions- injunctive relief and civil penalty; sanctions-criminal penalty; sanctions- revocation or suspension because of a criminal conviction; technical requirements; technical requirements-storage fees/charges; and technical requirements-other statutes and administrative rules, city ordinances. This proposal is made to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeal is proposed under Texas Civil Statutes, Article 6687-9a, which authorizes the commission to prescribe rules and regulations for registration of vehicle storage facilities. The following is the article that is affected by these repeals: Texas Civil Statutes, Article 6687-9a. sec.5.901. Authority. sec.5.902. Definitions. sec.5.903. Licensing Requirements. sec.5.904. Exemptions. sec.5.905. Insurance Requirements. sec.5.906. Responsibilities of the Licensee-Accepting Vehicles for Storage. sec.5.907. Responsibilities of the Licensee-Storage Requirements. sec.5.908. Responsibilities of the Licensee-Documentation. sec.5.909. Responsibilities of the Licensee-Vehicle Transfers. sec.5.910. Fees-Original License. sec.5.911. Fees-Renewal License. sec.5.912. Fees-Duplicate License. sec.5.913. Sanctions-Administrative Sanctions. sec.5.914. Sanctions-Administrative Penalty/Fine. sec.5.915. Sanctions-Injunctive Relief and Civil Penalty. sec.5.916. Sanctions-Criminal Penalty. sec.5.917. Sanctions-Revocation or Suspension Because of a Criminal Conviction. sec.5.918. Technical Requirements. sec.5.919. Technical Requirement-Storage Fees/Charges. sec.5.920. Technical Requirements-Other Statutes and Administrative Rules; City Ordinances. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501318 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 Subchapter EE. Operating Certificates, Permits, and Licenses 16 TAC sec.sec.5.1001-5.1005, 5.1013-5.1015, 5.1018-5.1020 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The Railroad Commission of Texas proposes the repeal of ssec.5.1001-5.1005, 5.1013-5.1015, and 5.1018-5.1020, concerning compliance with laws and regulations; prohibition of unauthorized services; call and demand service; use of highways; pick-up and delivery service; contract carriers; duplication of operating authority; joinder of motor carrier certificates; cancellation, suspension and reinstatement of intrastate certificates or permits; address for receipt of service; and intercorporate transportation exemption. This proposal is made to eliminate rules that are unnecessary or that have been preempted by the enactment of Title VI of the Federal Aviation Administration Authorization Act of 1994 (Public Law 103-305) and to reorganize the commission's rules into concise subchapters for each category of the rules. Jackye Greenlee, assistant director-central operations, transportation/gas utilities division, has determined that for each year of the first five-year period the repeals are in effect there will be no fiscal implications for state or local governments or small businesses as the result of the proposed repeals. Gary W. Elkins, hearings examiner, has determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of the repeals will be to eliminate unnecessary and federally preempted regulations from the motor transportation regulations and to achieve greater compliance by a reorganization of rules into concise subchapters. There is no anticipated economic cost to persons who are required to comply with the proposed repeals. Comments may be submitted to Gary W. Elkins, Hearings Examiner, Legal Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711. Comments will be accepted for 30 days after publication in the Texas Register. The repeals are proposed under the Texas Motor Bus Act, Texas Civil Statutes, Article 911a and under the Texas Motor Carrier Act, Texas Civil Statutes, Article 911b, which authorize the commission to prescribe rules and regulations for the operations of motor bus companies and motor carriers. The following are the articles that are affected by these repeals: Texas Civil Statutes, Articles 911a and 911b. sec.5.1001. Compliance with Laws and Regulations. sec.5.1002. Prohibition of Unauthorized Services. sec.5.1003. Call and Demand Service. sec.5.1004. Use of Highways. sec.5.1005. Pick-Up and Delivery Service. sec.5.1013. Contract Carriers. sec.5.1014. Duplication of Operating Authority. sec.5.1015. Joinder of Motor Carrier Certificates. sec.5.1018. Cancellation, Suspension and Reinstatement of Intrastate Certificates or Permits. sec.5.1019. Address for Receipt of Service. sec.5.1020. Intercorporate Transportation Exemption. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501319 Mary Ross McDonald Assistant Director, Legal Division, Gas Utilities/LP Gas Railroad Commission of Texas Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 463-7094 TITLE 22. EXAMINING BOARDS Part IX. Texas State Board of Medical Examiners Chapter 170. Authority of Physician to Prescribe for the Treatment of Pain 22 TAC sec.sec.170.1-170.3 The Texas State Board of Medical Examiners proposes new ssec.170.1-170.3 concerning the authority of physicians to prescribe for the treatment of pain. The new section will provide guidelines and definitions for the proper treatment of pain and related record keeping. Tim Weitz, general counsel, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Weitz also has determined that for each year of the first five years the new section is in effect, the public benefit anticipated as a result of enforcing the new section will be to memorialize adequate guidelines for physicians for the treatment of pain, and thereby improve the quality of medical care provided to the public. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the new section as proposed. Comments on the proposal may be submitted to Pat Wood, P.O. Box 149134, Austin, Texas 78714-9134. A public hearing will be held at a later time. The new section is proposed under Texas Civil Statutes, Article 4495b, which provide the Texas State Board of Medical Examiners with the authority to make rules, regulations and bylaws not inconsistent with this act as may be necessary for the governing of its own proceedings, the performance of its duties, the regulation of the practice of medicine in this state, and the enforcement of this act. Article 4495b, sec.2.09, is affected by this proposal. sec.170.1. Purpose. The purpose of this chapter is to recognize that some dangerous drugs and controlled substances listed in Chapter 481 and 483 of the Texas Health and Safety Code are indispensable for the treatment of pain, and are useful for relieving and controlling many other related symptoms that patients may suffer. It is the position of the board that these drugs may be prescribed for the treatment of pain and other related symptoms after a reasonably based medical diagnosis has been made, in adequate doses, and for appropriate lengths of time, which in some cases may be as long as the pain or related symptoms persist. The board recognizes that pain, including intractable pain, and many other related symptoms are subjective complaints and that the appropriateness and the adequacy of drug and dose will vary from individual to individual. The practitioner is expected to exercise sound medical judgment in treating pain and related symptoms with dangerous drugs and controlled substances. sec.170.2. Definitions. The following words and terms, as used in the Medical Practice Act, Article 4495b, Section 3.08, shall have the following meanings in the context of providing medications for pain and related symptoms. Abuser of narcotic drugs, controlled substances and dangerous drugs-A person who takes a drug or drugs for other than legitimate medical purposes. Intractable pain -A pain state in which the cause of the pain cannot be removed or otherwise treated and which in the generally accepted course of medical practice no relief or cure of the cause of the pain is possible or none has been found after reasonable efforts. Non-therapeutic in nature or manner-A medical use or purpose that is not legitimate. Prescribing pharmaceuticals or practicing consistent with the public health and welfare-Prescribing pharmaceuticals and practicing medicine for a legitimate medical purpose in the usual course of professional practice. sec.170.3. Guidelines. The Texas State Board of Medical Examiners will use the following guidelines to determine whether a physician's conduct violates the Medical Practice Act, sec.3.08(4)(E), sec.3.08(4)(F), and 3. 08(18) in regard to the prescribing, administering, ordering, or dispensing of pain medications and other drugs necessary to address their side effects. (1) The treatment of pain, including intractable pain, with dangerous drugs and controlled substances is a legitimate medical purpose when done in the usual course of professional practice. (2) A physician or surgeon duly authorized to practice medicine in Texas and to prescribe controlled substances and dangerous drugs in this state shall not be subject to disciplinary action by the board for prescribing, ordering, administering, or dispensing dangerous drugs or controlled substances for the treatment and relief of pain, including intractable pain, in the usual course of professional practice for a legitimate medical purpose in compliance with applicable state and federal law. (3) Prescribing, ordering, administering, or dispensing dangerous drugs or controlled substances for pain will be considered to be for a legitimate medical purpose if based upon accepted scientific knowledge of the treatment of pain, including intractable pain, not in contravention of applicable state or federal law, and if prescribed, ordered, administered, or dispensed in compliance with the following guidelines where appropriate and as is necessary to meet the individual needs of the patient: (A) After a documented medical history, which may be provided orally or in writing by the patient, and physical examination by the physician providing the medication including an assessment and consideration of the pain, physical and psychological function, any history and potential for substance abuse, coexisting diseases and conditions, and the presence of a recognized medical indication for the use of a dangerous drug or controlled substance; (B) Pursuant to a written treatment plan tailored for the individual needs of the patient by which treatment progress and success can be evaluated with stated objectives such as pain relief and/or improved physical and psychosocial function. Such a written treatment plan shall consider pertinent medical history and physical examination as well as the need for further testing, consultations, referrals, or use of other treatment modalities; (C) The physician should discuss the risks and benefits of the use of controlled substances with the patient or guardian; (D) Subject to documented periodic review of the care by the physician at reasonable intervals in view of the individual circumstances of the patient in regard to progress toward reaching treatment objectives which takes into consideration the course of medications prescribed, ordered, administered, or dispensed as well as any new information about the etiology of the pain; (E) Complete and accurate records of the care provided as set forth in subparagraphs (A)-(D) of this paragraph should be kept. When controlled substances are prescribed, names, quantities prescribed, dosages, and number of authorized refills of the drugs should be recorded, keeping in mind that pain patients with a history of substance abuse or who live in an environment posing a risk for medication misuse or diversion require special consideration. Management of these patients may require closer monitoring by the physician managing the pain and consultation with appropriate health care professionals. (4) A decision by a physician not to strictly adhere to the provisions of paragraph (3) of this section will, for good cause shown, be grounds for the board to take no disciplinary action in regard to the physician. Each case of prescribing for pain will be evaluated on an individual basis. The physician's conduct will be evaluated to a great extent by the treatment outcome, taking into account whether the drug used is medically and/or pharmacologically recognized to be appropriate for the diagnosis, the patient's individual needs including any improvement in functioning, and recognizing that some types of pain cannot be completely relieved. (5) If the provisions as set out in paragraphs (1)-(4) of this section are met, and if all drug treatment is properly documented, the board will consider such practices as prescribing in a therapeutic manner, and prescribing and practicing medicine in a manner consistent with public health and welfare. (6) Quantity of pharmaceutical and chronicity of prescribing will be evaluated on the basis of the documented appropriate diagnosis and treatment of the recognized medical indication, documented persistence of the recognized medical indication, and properly documented follow-up evaluation with appropriate continuing care as set out in this chapter. (7) A physician may use any number of treatment modalities for the treatment of pain, including intractable pain, which are consistent with legitimate medical purposes. (8) These rules shall not be construed so as to apply to the treatment of acute pain with dangerous drugs or controlled substances for purposes of short- term care. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501330 Bruce A. Levy, M.D., J.D. Executive Director Texas State Board of Medical Examiners Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 834-7728 TITLE 25. HEALTH SERVICES Part II. Texas Department of Mental Health and Mental Retardation Chapter 401. System Administration Subchapter B. Interagency Agreements 25 TAC sec.401.58 The Texas Department of Mental Health and Mental Retardation (TDMHMR) proposes new sec.401.58, concerning uniform assessment tool for assessing decision-making capacity. The new section would adopt by reference rules of the Texas Department of Health (TDH) found in the Texas Administrative Code, Title 25, Part I, sec.3.22, proposed in the February 3, 1995, issue of the Texas Register (20 TexReg 618). The proposed rules enact the provisions of Senate Bill 236 of the 73rd Texas Legislature. Senate Bill 236 requires TDMHMR, the Texas Department of Human Services (TDHS), and the Texas Department of Health to adopt by rule a memorandum of understanding (MOU) that requires the use of a uniform assessment tool to assess whether an elderly person, a person with mental retardation, or a person with a developmental disability who is receiving services in a facility operated or regulated by the TDMHMR, TDHS, or TDH, needs a guardian of the person or estate, or both, or other decisionmaking assistance provided by law. The MOU specifies the assessment tool to be utilized, the facilities that must use the assessment tool, the circumstances under which the facilities must use the assessment tool. TDMHMR previously proposed the adoption by reference of the MOU and the uniform assessment tool in the July 30, 1994, issue of the Texas Register; the coordination of activity with other agencies required that the proposal be automatically withdrawn effective January 30, 1995. The re-proposal of this rule action does not vary substantively from the previous proposal except that the entire text of the MOU and the assessment tool are published as figures, rather than adopted by reference, as part of the TDH proposal in February 3, 1995, issue of the Texas Register (20 TexReg 658). Leilani Rose, director, Financial Services Department, has determined that for the first five-year period the rule is in effect the pilot project authorized by proposed sec.401.58 is sufficiently limited in size that it will not cause substantial cost to state or local government as a result of administering the rule. Jaylon Fincannon, deputy commissioner for Mental Retardation Services, has determined that for each year of the first five years the rule is in effect the public benefit is the adoption of rules consistent with the requirements of state law, as well as the availability of a mechanism to identify consumers who require assistance, either through guardianship or other means, in making certain types of decisions about their personal care and treatment, daily living and safety, and/or finances and property. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. A joint public hearing will be held by TDMHMR, TDHS, and TDH on February 28, 1995, at the Department of Human Services, John H. Winters Building, 701 West 51st Street, Classroom 1, Second Floor, West Tower, at 1:00 p.m. Individuals requiring an interpreter for the hearing impaired should contact the TDMHMR Office of Policy Development at (512) 206-4516 within 24 hours prior to the hearing. Written comments on the proposal will be jointly considered by the three agencies and for this purpose may be submitted to John Evans, Hospital Licensing Director, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756-3199 within 30 days of publication. The new section is proposed under the Health and Safety Code, sec.533.044, which provides the department with the authority to adopt by rule a joint MOU requiring the use of a uniform assessment tool to assess the decisionmaking capacity of certain individuals, and under the Health and Safety Code, Title 7, sec.532.015(a), which provides the Texas Board of Mental Health and Mental Retardation with broad rulemaking powers. It is also proposed under Texas Civil Statutes, Article 4413(502), sec.15, which provides the Health and Human Services Commission with authority to review all proposed rules of health and human service agencies for compliance with its coordinated strategic plan, existing statutory authority, rules of other health and human services agencies, and budgetary implication; and the authority to notify an agency within the designated review period for a proposed rule if the commission requires withdrawal or amendment of the proposed rule. This proposal affects Health and Safety Code Chapters 13, 241, and 577. sec.401.58. Uniform Assessment Tool for Assessing Decision-Making Capacity. (a) TDMHMR adopts by reference as Exhibit O rules of the Texas Department of Health contained in the Texas Administrative Code, Title 25, Part I, Section 3.22 (relating to memorandum of understanding (MOU) between the Texas Department of Health, the Texas Department of Mental Health and Mental Retardation, and the Texas Department of Human Services regarding a uniform assessment tool to assess decisionmaking capacity). (b) Agencies will utilize the assessment tool referenced in and attached to the exhibit on a pilot basis for one year. (c) Copies of the memorandum and assessment tool are filed in the Office of Policy Development, Texas Department of Mental Health and Mental Retardation, 4405 North Lamar Boulevard, Austin, Texas 78756, and may be reviewed during regular business hours. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on February 1, 1995. TRD-9501287 Ann K. Utley Chairman Texas Board of Mental Health and Mental Retardation Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 206-4516 TITLE 40. SOCIAL SERVICES AND ASSISTANCE Part I. Texas Department of Human Services Chapter 72. Memoranda of Understanding with Other State Agencies Memorandum of Understanding Concerning Capacity Assessment of Persons Who Are Elderly and Persons with Mental Retardation and/or Developmental Disabilities for a Surrogate Decision Maker or Guardian Referral 40 TAC sec.72.501 The Texas Department of Human Services (DHS) proposes new sec.72.501, concerning uniform assessment tool for assessing decision-making capacity, in its Memoranda of Understanding with Other State Agencies rule chapter. The purpose of the new section is to adopt by reference rules of the Texas Department of Health (TDH) found in the Texas Administrative Code, Title 25, Part I, sec.3.22, proposed in the February 3, 1995, issue of the Texas Register (20 TexReg 618). The proposed rules implement the provisions of Senate Bill 236 of the 73rd Texas Legislature. Senate Bill 236 requires DHS, TDH, and the Texas Department of Mental Health and Mental Retardation (TDMHMR) to adopt a memorandum of understanding (MOU) that requires the use of a uniform assessment tool to assess whether persons who are elderly, persons with mental retardation, or persons with a developmental disability, who receive services in a facility operated or regulated by DHS, TDH, or TDMHMR need a guardian of the person or estate, or both, or other decision-making assistance provided by law. The MOU specifies the assessment tool to be utilized, the facilities that must use the assessment tool, and the circumstances under which the facilities must use the assessment tool. Burton F. Raiford, commissioner, has determined that for the first five-year period the proposed section will be in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section. Mr. Raiford also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the adoption of rules consistent with the requirements of state law, as well as the availability of a mechanism to identify consumers who require assistance, either through guardianship or other means, in making certain types of decisions about their personal care and treatment, daily living and safety, and/or finances and property. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section. A joint public hearing will be held by DHS, TDH, and TDMHMR on Tuesday, February 28, 1995, at 1:00 p.m. in Classroom 1, Second Floor, West Tower, John H. Winters Building, 701 West 51st Street, Austin. Questions about the content of the proposal may be directed to Wendy Francik at (512) 450-3167 in DHS's Institutional Policy Section. Comments on the proposal may be submitted to Nancy Murphy, Agency Liaison, Media and Policy Services-083, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714- 9030, within 30 days of publication in the Texas Register. The new section is proposed under the Health and Safety Code, sec.533.044, which provides the department with the authority to adopt by rule a joint MOU requiring the use of a uniform assessment tool to assess the decision-making capacity of certain individuals; and under the Human Resources Code, Title 2, Chapter 22, which provides the department with the authority to administer public assistance programs. The new section implements the Health and Safety Code, s533.044, and the Human Resources Code, sec.sec.22.001-22.024. sec.72.501. Uniform Assessment Tool for Assessing Decision-Making Capacity. (a) The Texas Department of Human Services (DHS) adopts by reference rules of the Texas Department of Health (TDH) contained in the Texas Administrative Code (TAC), Title 25, Part I, s3.22 (relating to Memorandum of Understanding (MOU) Between the Texas Department of Health, the Texas Department of Mental Health and Mental Retardation, and the Texas Department of Human Services Regarding a Uniform Assessment Tool for Assessing Decision-Making Capacity). (b) Agencies will utilize the assessment tool referenced in 25 TAC sec.3.22(b) on a pilot basis for one year. (c) Copies of the memorandum and assessment tool are filed in the Institutional Policy Section, Texas Department of Human Services, 701 West 51st Street, Austin, Texas, and these may be reviewed during regular business hours. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 30, 1995. TRD-9501223 Nancy Murphy Section Manager, Media and Policy Services Texas Department of Human Services Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 450-3765 Part IV. Texas Commission for the Blind Chapter 162. Criss Cole Rehabilitation Center 40 TAC sec.sec.162.1-162.5 The Texas Commission for the Blind proposes new sec.sec.162.1-162.5, concerning the commission's administration of Criss Cole Rehabilitation Center. The new chapter is needed in the agency's recodification efforts to establish an organized rule base that allows for orderly expansion. Previous rules on this subject were contained in Chapter 163, which is also being recodified. The new chapter contains the commission's criteria for admittance into the center, standards of conduct expected by persons receiving services at the center, and the commission's procedures for investigating reports of abuse, neglect, and exploitation. Pat D. Westbrook, executive director, has determined that for the first five years the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Westbrook also has determined that for each year of the first five years the rules are in effect the public benefits anticipated as a result of enforcing the rules will be a clear understanding of the standards of conduct enforced by the commission in order to provide an environment conducive for training. There will be no effect on small businesses. There are no anticipated economic cost to persons who are required to comply with the rules as proposed. Questions about the content of this proposal may be directed to Jean Wakefield at (512) 459-2611 and written comments on the proposal may be submitted to Policy and Rules Coordinator, P.O. Box 12866, Austin, Texas 78711, within 30 days from the date of this publication. The new sections are proposed under the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs, and 29 U.S.C. 701 et seq, Title I of the Rehabilitation Act of 1973, as amended, which authorizes the commission to prescribe policies and procedures for the administration of the state's program in accordance with the Act. The new sections affect Human Resources Code, Title 5, Chapter 91, Subchapter D, sec.91.021 concerning Responsibility for Visually Handicapped Persons, sec.91.023 concerning Rehabilitation Services, sec.91.052 concerning the Vocational Rehabilitation Program for the Blind, and sec.91.053 concerning Cooperation With Federal Government. sec.162.1. Purpose. Criss Cole Rehabilitation Center (CCRC) is a comprehensive rehabilitation facility operated by the commission for the purpose of assisting consumers to achieve their rehabilitation plans. sec.162.2. Criteria for Admission. (a) To be considered for admission to CCRC, a person must be blind as defined in sec.163.4 of this title (relating to Definitions), and (1) receiving services from and referred by one of the commission's service programs; (2) able to care for daily self-needs independently, such as toileting, dressing, and eating; (3) able to move about without assistance and have stamina to cover approximately one and one-half miles per day; (4) willing and able to attend weekday classes; (5) able to monitor own behavior (not injurious to self or others, nondestructive of property); (6) able to evacuate building once oriented; (7) psychologically and medically prepared for CCRC training; (8) in stable health; (9) willing to cooperate regarding dietary and medical needs and restrictions; and (10) preliminarily adjusted to blindness. (b) When vacancies occur, priority for admission is given to legally and totally blind consumers receiving services from the Vocational Rehabilitation Program. sec.162.3. Standards of Conduct. (a) Consumers are expected to abide by established guidelines and standards of conduct while receiving services at CCRC. These guidelines and standards of conduct are contained in a client handbook issued to consumers prior to admittance. A copy of the handbook is available for public viewing from 8:00 a.m. until 5:00 p.m. on work days at CCRC, 4800 North Lamar, Austin, Texas, or by calling the commission's toll-free line, (800) 252-5204 and requesting a copy. (b) Violation of any one of the following rules while on the premises is grounds for immediate dismissal. Premises is defined as any and all parts of CCRC, its surrounding grounds, and auxiliary facilities. (1) The possession of weapons, illegal drugs, or alcohol on the premises is not allowed. (2) Intimate sexual conduct on the premises is not allowed. (3) Behavior on the premises that results in physical abuse of property or deliberate aggression towards self or others is not allowed. (c) Violation of any one of the following rules while on the premises is grounds for official written warning. Two written warnings are grounds for suspension or dismissal from CCRC. (1) Members of the opposite sex are allowed in residential rooms during posted hours. (2) Infringement upon other people's rights, space, and property (for example, loud talking, loud music, harassment, stealing) is not allowed. (3) Consumers may entertain outside visitors only in designated areas in accordance with posted hours. (4) Pets are not allowed. (5) Smoking is not allowed inside CCRC and auxiliary buildings. (6) Consumers who are residing in the Avenue A apartments during their rehabilitation plans are to be in their apartments during posted hours unless prior arrangements have been made with their counselors. (7) Minors and persons who have legal guardians must follow directions of staff while in training. sec.162.4. Scope of Services. CCRC provides, as appropriate to the needs of individual consumers, services such as functional evaluations; individualized and small group training in communication, home and personal management, orientation and mobility, low vision, health management, nutrition, physical conditioning, social awareness, technology awareness; and career guidance. Special summer training is available for persons preparing for higher education. This list is not to be interpreted as comprehensive; ancillary services are also available. sec.162.5. Investigations of Abuse, Neglect, and Exploitation. In compliance with Human Resources Code, Title 2, Subtitle D, Chapter 48, regarding protective services for the elderly, the commission will receive and investigate reports of abuse, neglect, and exploitation of disabled or elderly adults receiving training at CCRC. Investigations will be conducted and information will be gathered in accordance with specifications contained in Subchapter C, sec.48.036, in the following manner: (1) Any staff person of the commission having reasonable cause to believe that any elderly or disabled person located at CCRC is in the state of abuse, exploitation, or neglect shall immediately report such information both verbally and in writing to their supervisor. (2) The supervisor shall relay such information immediately to the center director and other appropriate supervisors. (3) The center director, or designee, shall initiate an investigation of the alleged abuse, neglect, or exploitation within 24 hours from the time of receipt of the information. (4) A copy of the final report and resulting investigation shall be sent to the Texas Department of Human Services. (5) Staff of the commission will cooperate fully should the Texas Department of Human Services deem that further investigation of a report is desirable. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 27, 1995. TRD-9501241 Pat D. Westbrook Executive Director Texas Commission for the Blind Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 459-2611 Chapter 163. Vocational Rehabilitation Program The Texas Commission for the Blind proposes the repeal of sec.sec.163.1-163. 32 and proposes new sec.sec.163.1-163.4, 163.10-163.18, 163.25-163.40, 163.50- 163. 52, 163.75, and 163.80, concerning the commission's Vocational Rehabilitation Program. The primary purpose of the repeal and new sections is to comply with the agency's state mandate to provide vocational rehabilitation services to those persons eligible under federal law and to comply with federal conditions to secure the full benefits of federal law. The secondary purpose is to rewrite the chapter to remove language no longer applicable to the program and to reorganize the chapter into an arrangement consistent with the agency's federal state plan, which will allow for orderly expansion as new federal and commission procedures are implemented. The new sections are the commission's procedures for administering the state's Vocational Rehabilitation Program for individuals who are blind or visually impaired and include what is required of persons seeking and receiving vocational rehabilitation services from the commission. Proposed new Subchapters A and B relating to general information and basic program requirements include most of the changes required by amendments to federal law, such as new and revised definitions of several terms, a new requirement in eligibility criteria that an individual require vocational rehabilitation services in order to achieve an employment outcome, a mandatory time frame in which the agency determines eligibility, a presumption that an individual can benefit from vocational rehabilitation services, and the presumption that social security beneficiaries meet the first two eligibility criteria. Rules now contained in Subchapters C, D and E, relating to vocational rehabilitation services, order of selection for payment of services, and consumer participation in the cost of services, are the result of previous rulemaking and have not substantively changed in the recodification. Subchapter G establishes minimum requirements for the commission's written agreements with service providers when the commission is purchasing supported employment services for consumers. Pat D. Westbrook, executive director, has determined that for the first five years the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections. Mr. Westbrook has also determined that for each year of the first five years the rule is in effect the public benefits anticipated as a result of enforcing the rule will be an organized rule base that conforms to federal requirements to assure full benefits to the state and persons receiving services under the program. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the rules. Questions about the content of this proposal may be directed to Jean Wakefield at (512) 459-2611 and written comments on the proposal may be submitted to Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 days from the date of this publication. 40 TAC sec.sec.163.1-163.32 (Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Commission for the Blind or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.) The repeals are proposed under the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs, and 29 U.S.C. 701 et seq, Title I of the Rehabilitation Act of 1973, as amended, which authorizes the commission to prescribe policies and procedures for the administration of the state's program in accordance with the Act. The repeals affect Human Resources Code, Title 5, Chapter 91, Subchapter D, sec.91.021 concerning Responsibility for Visually Handicapped Persons, sec.91. 023 concerning Rehabilitation Services, sec.91.052 concerning the Vocational Rehabilitation Program for the Blind, sec.91.053 concerning Cooperation With Federal Government, and sec.91.056 concerning Eligibility for Vocational Rehabilitation Services. sec.163.1. Conformity to Federal Requirements. sec.163.2. Presumptions. sec.163.3. Public Access to Internal Procedural Documents. sec.163.4. Definitions. sec.163.5. Eligibility for Vocational Rehabilitation Services. sec.163.6. Eligibility for Extended Evaluation Services. sec.163.7. Ineligibility. sec.163.8. Client Participation in Cost of Service. sec.163.9. Evaluation of Rehabilitation Potential. sec.163.10. Preliminary Diagnostic Study. sec.163.11. Thorough Diagnostic Study. sec.163.12. Counseling, Guidance, and Referral Services. sec.163.13. Physical and Mental Restoration Services. sec.163.14. Transportation. sec.163.15. Services to Family Members. sec.163.16. Orientation and Mobility Services. sec.163.17. Reader Services. sec.163.18. Recruitment and Training Services. sec.163.19. Occupational Licenses, Tools, Equipment, and Initial Stocks and Supplies. sec.163.20. Other Goods and Services. sec.163.21. Placement. sec.163.22. Maintenance. sec.163.23. Training. sec.163.24. Criss Cole Rehabilitation Center. sec.163.25. Sunrise Rehabilitation Program. sec.163.26. Rehabilitation Teaching Services. sec.163.27. Post-employment Services. sec.163.28. Extended Evaluation to Determine Rehabilitation Potential. sec.163.29. Individualized Written Rehabilitation Program (IWRP). sec.163.30. Order of Selection for Payment of Services. sec.163.31. Maximum Affordable Payment. sec.163.32. Self-employment Services. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 27, 1995. TRD-9501249 Pat D. Westbrook Executive Director Texas Commission for the Blind Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 459-2611 Subchapter A. General Information 40 TAC sec.sec.163.1-163.4 The new sections are proposed under the Human Resources Code, Title 5, Chapter 91, which authorizes the Texas Commission for the Blind to adopt rules prescribing the policies and procedures followed in the administration of its programs, and 29 U.S.C. 701 et seq, Title I of the Rehabilitation Act of 1973, as amended, which authorizes the commission to prescribe policies and procedures for the administration of the state's program in accordance with the Act. The new sections affect Human Resources Code, Title 5, Chapter 91, Subchapter D, sec.91.021 concerning Responsibility for Visually Handicapped Persons, sec.91.023 concerning Rehabilitation Services, sec.91.052 concerning the Vocational Rehabilitation Program for the Blind, sec.91.053 concerning Cooperation With Federal Government, and sec.91.056 concerning Eligibility for Vocational Rehabilitation Services. sec.163.1. Program and Chapter Purpose. The Vocational Rehabilitation Program is a joint state-federal funded program administered by the Texas Commission for the Blind (commission) to assess, plan, develop, and provide vocational rehabilitation services for eligible persons with visual impairments, consistent with their strengths, resources, priorities, concerns, abilities, and capabilities, so that these persons may prepare for and engage in gainful employment. sec.163.2. Conformity to Federal Requirements. As required in the Human Resources Code, sec.91.021(d), the rules in this chapter comply with provisions of the following. (1) The Rehabilitation Act of 1973 as amended (29 United States Code, sec.701 et seq). (2) Implementing federal regulations (34 Code of Federal Regulations, Chapter 4, Part 361). (3) The commission's state plan submitted to and approved by the federal government, which is effective in all political subdivisions of the state. sec.163.3. Public Access to Forms and Documents. (a) All forms and documents used in the administration of the Vocational Rehabilitation Program are available for viewing at any commission office, including the central office at 4800 North Lamar Boulevard, Austin, Texas, between 8:00 a.m. and 5:00 p.m. on work days. (b) Requests for copies are subject to commission rules regarding charges for public records. sec.163.4. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Applicant-A person, or a person's representative, as appropriate, who has filled out and signed the commission's application form or who has signed a written request for vocational rehabilitation services and is available for an assessment to determine eligibility and priority for services. Assistive technology device-Any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve the functional capabilities of a consumer. Assistive technology service-Any service that directly assists a consumer in the selection, acquisition, or use of an assistive technology device. Blind (person who is)-A person whose visual acuity with best correction is 20/200 or less in the better eye, or a person with a limitation in the field of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees, which means a visual field of no greater than 20 degrees in the better eye. Comparable services and benefits-Services and benefits that are provided or paid for, in whole or in part, by other federal, state, or local public agencies, by health insurance, or by employee benefits; available to the consumer; and commensurate in quality and nature to the services that the consumer would otherwise receive from the commission. Competitive employment -Work that is performed weekly in an integrated setting on a full-time or part-time basis, as determined in each individualized written rehabilitation program. Competitive work -As used in the definition of "supported employment," work that at the time of transition is performed weekly on a full-time or part-time basis, as determined in each individualized written rehabilitation program, and for which a person is compensated consistent with the wage standards provided for in the Fair Labor Standards Act. Consumer-A person who has been determined eligible by the commission for vocational rehabilitation services to prepare for, enter, engage in, or retain gainful employment. Day-Unless specifically denoted otherwise, refers to one calendar day. Disability-A physical or mental impairment that constitutes or results in a substantial impediment to employment. Employment outcome -A person's entering or retaining full-time or, if appropriate, part-time competitive employment in the integrated labor market, supported employment or any other type of employment that is consistent with the consumer's abilities, capabilities, and interests, as supported by an assessment for determining vocational rehabilitation needs. Family member-An individual who is either a relative or guardian of an applicant or consumer or who lives in the same household as an applicant or consumer and who is integrally involved in the vocational adjustment or rehabilitation of the applicant or consumer. Integrated work setting-An employment environment where consumers with disabilities interact with employees who are not disabled and/or the general public on a regular basis in the immediate work setting. Individualized Written Rehabilitation Program (IWRP)-A written record that documents all phases of the consumer's rehabilitation process as developed by the counselor and the consumer. Maintenance-Monetary support authorized in an IWRP for those living expenses, such as food, shelter, clothing, and other subsistence items, that are in excess of the normal subsistence expenses of a consumer or an applicant receiving extended evaluation services and that are necessitated by the person's participation in a program of vocational rehabilitation services. The term does not mean a guaranteed particular standard of living. Most severely disabled (person who is) -A person with or without secondary disabilities or functional limitations whose visual acuity meets the definition of blind. Nonseverely disabled (person who is)-A person whose visual acuity in one eye meets the definition of blind and whose visual acuity in the other eye with best correction is better than 20/70, or a person whose visual acuity in both eyes with best correction is better than 20/70. Ongoing support services-As used in the definition of "supported employment," services that are needed to support and maintain a person with a most severe disability in supported employment, identified based on a determination by the commission of the person's needs as specified in an IWRP; and furnished by the commission from the time of job placement until transition to extended services, unless discrete post-transition services are provided, and following transition by one or more extended services providers throughout the person's term of employment in a particular job placement or multiple placements if those placements are being provided under a program of transitional employment. Personal assistance services-A range of services provided by one or more persons that is designed to assist a consumer with on-the-job or related daily living activities that the person typically would perform if the consumer did not have a disability. Physical and mental restoration services-The following services: (A) corrective surgery or therapeutic treatment that is likely, within a reasonable period of time, to correct or modify substantially a stable or slowly progressive physical or mental impairment that constitutes a substantial impediment to employment; (B) diagnosis and treatment for mental or emotional disorders by qualified personnel in accordance with state licensure laws; (C) dentistry; (D) nursing services; (E) necessary hospitalization (either inpatient or outpatient care) in connection with surgery or treatment and clinic services; (F) convalescent or nursing home care; (G) drugs and supplies; (H) prosthetic, orthotic, or other assistive devices, including hearing aids, essential to obtaining or retaining employment; (I) eyeglasses and visual services, including visual training, and the examination and services necessary for the prescription and provision of eyeglasses, contact lenses, microscopic lenses, telescopic lenses, and other special visual aids prescribed by personnel that are qualified in accordance with state licensure laws; (J) podiatry; (K) physical therapy; (L) occupational therapy; (M) physical therapy; (N) occupational therapy; (O) psychological services; (P) therapeutic recreation services; (Q) medical or medically-related social work services; (R) treatment of either acute or chronic medical complications and emergencies that are associated with or arise out of the provision of physical and mental restoration services, or that are inherent in the condition under treatment; (S) special services for the treatment of consumers with end-stage renal disease, including transplantation, dialysis, artificial kidneys, and supplies; and (T) other medical or medically-related rehabilitation services, including art therapy, dance therapy, music therapy, and psychodrama. Physical or mental impairment-An injury, disease, or other disorder that materially reduces, or if not treated will probably result in materially reducing, mental or physical functioning. Post-employment services -One or more of the goods and services identified in sec.163.25 of this title (pertaining to Goods and Services) that are provided subsequent to the achievement of an employment outcome and that are necessary to maintain, regain, or advance in employment, consistent with the individual's abilities, capabilities, and interests. Rehabilitation engineering -The process of making environments and consumer and industrial goods accessible to consumers, including the process of designing and developing new assistive technology devices and products. Rehabilitation technology -The systematic application of technologies, engineering methodologies, or scientific principles to meet the needs of, and address the barriers confronted by, individuals with disabilities in areas that include education, rehabilitation, employment, transportation, independent living, and recreation. The term includes rehabilitation engineering, assistive technology devices, and assistive technology services. Representative-The parent, guardian, family member, or advocate of the applicant or consumer or other representative authorized by the applicant or consumer. Secondary disability -A physical impairment that is either associated with or unrelated to the visual condition, but is less significant than the visual condition. Self-employment services -Services that assist a consumer to earn income directly from their own business, trade, or profession rather than a specified salary or wages from an employer. Not included within the definition is self- employment within the Business Enterprises Program administered by the commission. Severely disabled (person who is)-A person whose visual acuity in one eye meets the definition of blind and whose visual acuity in the other eye meets the definition of visually impaired, or a person whose visual acuity in both eyes meets the definition of visually impaired. Supported employment -Competitive work in an integrated work setting with ongoing support services for persons with the most severe disabilities for whom competitive employment has not traditionally occurred, or for whom competitive employment has been interrupted or intermittent as a result of a severe disability; and who, because of the nature and severity of their disabilities, need intensive supported employment services and extended services after transition in order to perform this work. Transition services -A coordinated set of activities for a student, designed within an outcome-oriented process, that promotes movement from school to post- school activities, including post-secondary education, vocational training, integrated employment (including supported employment), continuing and adult education, adult services, independent living, or community participation. Transitional employment -As used in the definition of "supported employment," a series of temporary job placements in competitive work in integrated work settings with ongoing support services for persons with the most severe disabilities due to mental illness. Transportation-Travel and related expenses that are necessary to enable a person to participate in any vocational rehabilitation service. Visually impaired (person who is)-A person whose best corrected visual acuity is between 20/70 and 20/200 in both eyes, or a person who has a visual field of 30 degrees or less but greater than 20 degrees with best correction. Visual impairment -An injury, disease, or other disorder that materially reduces, or if not treated will probably result in materially reducing, visual functioning. Visually disabled (person who is)-A person who has a visual impairment that constitutes or results in a substantial impediment to employment and who can benefit in terms of an employment outcome from vocational rehabilitation services. This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's authority to adopt. Issued in Austin, Texas, on January 27, 1995. TRD-9501248 Pat D. Westbrook Executive Director Texas Commission for the Blind Earliest possible date of adoption: March 10, 1995 For further information, please call: (512) 459-2611 Subchapter B. Basic Program Requirements 40 TAC sec.sec.163.10-163.18 The new sections are proposed under the Human Resources Code, Title 5, Chapter 91, which authorizes the commission to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs, and 29 U.S.C. 701 et seq, Title I of the Rehabilitation Act of 1973, as amended, which authorizes the commission to prescribe policies and procedures for the administration of the state's program in accordance with the Act. The new sections affect Human Resources Code, Title 5, Chapter 91, Subchapter D, sec.91.021 concerning Responsibility for Visually Handicapped Persons, sec.91.023 concerning Rehabilitation Services, sec.91.052 concerning the Vocational Rehabilitation Program for the Blind, sec.91.053 concerning Cooperation With Federal Government, and sec.91.056 concerning Eligibility for Vocational Rehabilitation Services. sec.163.10. Application. (a) A person is considered an applicant for services on the day the commission receives either an application form signed by a person or person's representative, as appropriate, or a signed written request for vocational rehabilitation services, and the person is available for an assessment to determine eligibility and priority for services. (b) Persons residing in institutions, such as state schools, state hospitals, or prisons, may apply for services when their release is expected within 60 days. sec.163.11. Eligibility. (a) An applicant's eligibility for vocational rehabilitation services is based on the following requirements: (1) The applicant must have a visual impairment. (2) The applicant's visual impairment must constitute or result in a substantial impediment to employment for the applicant. (3) Subject to sec.163.12 of this title (relating to Presumption of Benefit), the applicant is capable of benefiting in terms of an employment outcome from the provision of vocational rehabilitation services. (4) The applicant must require vocational rehabilitation services to prepare for, enter into, engage in, or retain gainful employment. (b) The commission determines eligibility for services under this chapter without regard to: (1) sex, race, age, creed, color, or national origin; (2) any type of disability which acts as a sole basis for excluding a group of individuals from vocational rehabilitation; (3) upper or lower age limits if they result by themselves in a finding of ineligibility for any applicant who otherwise meets the basic eligibility requirements; and (4) any residence requirement, durational or other, which excludes from service any person who is present in Texas; however, persons without legal status in the United States are considered as not meeting the requirements of subsection (a)(3) and (4) of this section and are not eligible for vocational rehabilitation services. (c) Persons with visual disabilities who do not require vocational rehabilitation services to prepare for, enter, engage in, or retain gainful employment are not eligible. For example, a person who has a visual disability who is already employed or was previously employed in a setting commensurate with the person's abilities and capabilities, but who desires to change jobs or lost that employment for reasons unrelated to the person's disability, would not be eligible. sec.163.12. Presumption of Benefit. (a) An applicant is presumed capable of benefiting in terms of an employment outcome unless the commission determines, based on clear and convincing evidence, that the applicant is incapable of benefiting in terms of an employment outcome from vocational rehabilitation services as a result of the severity of the applicant's disability. With respect to situations in which the issue concerns the severity of the applicant's disability and potential for employment outcome, the commission conducts an extended evaluation pursuant to provisions in sec.163.15 of this title (relating to Extended Evaluation for Persons with Severe Disabilities). (b) "Clear and convincing evidence" means a high degree of certainty. Clear and convincing evidence might include, but is not limited to, a description of assessments, including situational assessments and supported employment assessments, by possible service providers within a reasonable distance from the person's community concluding that they would be unable to meet the person's needs due to the severity of the person's disability. (c) Upon receiving appropriate evidence that establishes the applicant's eligibility for benefits under title II or title XVI of the Social Security Act, the commission presumes that the applicant meets the first two basic eligibility requirements in sec.163.11(a) of this title (relating to Eligibility); however, the applicant must meet the remaining eligibility requirements. sec.163.13. Eligibility Determination Time Frame. (a) Eligibility or ineligibility is determined no longer than 60 days after the person, or the person's representative, as appropriate, has signed and submitted an application for vocational rehabilitation services in accordance with provisions of