EMERGENCY RULES An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing and remaining in effect no more than 120 days. The emergency action is renewable once for no more than 60 additional days. Symbology in amended emergency sections. 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 4. AGRICULTURE Part I. Texas Department of Agriculture Chapter 6. Boll Weevil Control 4 TAC sec.6.4 The Department of Agriculture (the department) adopts on an emergency basis, an amendment to sec.6.4, concerning the authorized cotton destruction date for the Lower Rio Grande Valley pest management zone. The department is acting on behalf of cotton farmers in Brooks, Cameron, Hidalgo, Jim Hogg, Starr, Willacy, Zapata counties, and the southern portion of Kenedy county encompassing an area below an East/West line through Katherine and Armstrong, Texas. The current cotton destruction deadline is September 1. The cotton destruction date will be extended through September 10. The department believes that changing the cotton destruction date is both necessary and appropriate. Adverse weather conditions have created a situation compelling an immediate extension of the cotton destruction date for certain counties in the Lower Rio Grande Valley Zone. The unusually wet weather prior to the cotton destruction period has prevented many cotton producers from cotton destruction by the September 1 deadline. A failure to act to extend the cotton destruction deadline could create a significant loss to Texas cotton producers and the state's economy. The department believes that extending the cotton destruction deadline in the counties in the Lower Grande Valley Zone designated above as requested will not result in significant pest population increasing in the zone. The emergency amendment to sec.6.4(a)(1)(b) will extend the date for cotton destruction through September 10 of this year in Brooks, Cameron, Hidalgo, Jim Hogg, Starr, Willacy, Zapata counties, and the southern portion of Kenedy county encompassing an area below an East/West line through Katherine and Armstrong, Texas. The amendment is adopted on an emergency basis under Texas Agriculture Code, sec.74.006, which provides the Texas Department of Agriculture with the authority to adopt rules as necessary for the effective enforcement and administration of Chapter 74, Subchapter A; and sec.74.004, which provides the department with the authority to establish regulated areas, dates and appropriate methods of destruction of stalks, other parts, and products of host plants for boll weevil and provides the department with the authority to consider a request for a cotton destruction extension due to adverse weather conditions; and the Government Code, sec.2001.34, which provides for the adoption of administrative rules on an emergency basis, without notice and comment. sec.6.4. Authorized Planting Dates, Cotton Destruction Dates, and Prescribed Methods of Destruction. (a) Except as provided in subsection (c) of this section, all cotton in the pest management zones must be planted and/or mechanically destroyed by the following authorized dates. Destruction must be accomplished by shredding and plowing out the plants to prevent further growth and to prohibit any cotton plants from remaining after the following cotton destruction dates. (1) Lower Rio Grande Valley pest management zone. (A) (No change.) (B) Cotton destruction date: on or before September 10
    [September 1]. (2) -(3) (No change.) (b)-(d) (No change.) Issued in Austin, Texas, on August 31, 1995. TRD-9511091 Dolores Alvarado Hibbs Chief Administrative Law Judge Texas Department of Agriculture Effective date: August 31, 1995 Expiration date: September 15, 1995 For further information, please call: (512) 463-7583 TITLE 37. PUBLIC SAFETY AND CORRECTIONS Part III. Texas Youth Commission Chapter 85. Admission and Placement Placement Planning 37 TAC sec.85.47 Texas Youth Commission (TYC) adopts on an emergency basis new sec.85.47, concerning sex offender registration. New s85.47 provides for sex offender registration of appropriate youth committed to TYC as required by law. This section is adopted on an emergency basis to comply with the new sex offender registration law (Texas Civil Statutes, Article 6252-13c.1). This new section is adopted on an emergency basis under the Human Resources Code, sec.61.034, which provides the Texas Youth Commission authority to make rules appropriate to the proper accomplishment of its functions. sec.85.47. Sex Offender Registration. (a) Policy. The Texas Youth (TYC) complies with the requirements of the sex offender registration program (Texas Civil Statutes, Article 6252-13c.1). (b) Rules. (1) Any program releasing who is subject to the sex offender registration program will confirm the requirements of the program which are applicable to the youth based on the youth's adjudication date, and complete any documentation for which the agency is responsible under those requirements. (2) TYC intake facilities are responsible for obtaining fingerprints from youth required to register under the sex offender registration program who are adjudicated on or after September 1, 1995. Issued in Austin, Texas, on August 31, 1995. TRD-9511057 Steve Robinson Executive Director Texas Youth Commission Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 483-5244 TITLE 43. TRANSPORTATION Part I. Texas Department of Transportation Chapter 17. Vehicle Titles and Registration The Texas Department of Transportation adopts on an emergency basis the repeal of existing sec.17.23, concerning temporary or additional weight permits, and simultaneously adopts on an emergency basis new sec.17.23, concerning temporary registration permits. New sec.17.23 establishes the department's policies and procedures for the application and issuance of annual permits for the movement of foreign commercial vehicles that are not authorized to travel on Texas public highways for lack of registration reciprocity and provides for 72-hour or 144-hour permits for the movement of commercial motor vehicles, trailers, semitrailers, and motor buses owned by residents of the United States, Mexico, or Canada. Senate Bill 981, 74th Legislature, 1995, effective September 1, 1995, authorizes the department to issue annual registration permits to be recognized as legal vehicle registration for the movement of foreign commercial vehicles on Texas highways. Senate Bill 1420, 74th Legislature, 1995, effective September 1, 1995, authorizes the department to issue 72 and 144-hour temporary permits for commercial vehicles owned by residents of Mexico. It is necessary to repeal existing sec.17.23 and adopt new sec.17.23 on an emergency basis to implement the cited legislative mandates in a manner that will serve the economic needs and welfare of the border regions and the state as a whole so that the economy is not seriously adversely affected, and to facilitate the cross-border service allowed under the North American Free Trade Agreement. Motor Vehicle Registration 43 TAC sec.17.23 The emergency repeal is adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Transportation Code, sec.502.352 and sec.502.353, as amended, which authorize the department to issue annual permits for the movement of foreign commercial vehicles on Texas highways and 72 and 144- hour temporary permits for the movement of commercial vehicles owned by residents of the United States, Mexico, or Canada. sec.17.23. Temporary or Additional Weight Permits. Issued in Austin, Texas, on August 31, 1995. TRD-9511082 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 The new section is adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Transportation Code, sec.502.352 and sec.502.353, as amended, which authorize the department to issue annual permits for the movement of foreign commercial vehicles on Texas highways and 72 and 144-hour temporary permits for the movement of commercial vehicles owned by residents of the United States, Mexico, or Canada. sec.17.23. Temporary Registration Permits. (a) Purpose and scope. Transportation Code, Chapter 502, Subchapter G, charges the department with the responsibility of issuing temporary registration permits which shall be recognized as legal registration for the movement of motor vehicles not authorized to travel on Texas public highways for lack of registration or for lack of reciprocity with the state or country in which the vehicles are registered. In order for the department to efficiently and effectively perform these duties, this section prescribes the policies and procedures for the application and the issuance of temporary registration permits. (b) Permit categories. The department will issue the following categories of temporary registration permits. (1) Annual permits. (A) Issuance. Texas Civil Statutes, Article 6675a-6c, authorize the department to issue annual permits to provide for the movement of foreign commercial vehicles that are not authorized to travel on Texas highways for lack of registration or for lack of reciprocity with the state or country in which the vehicles are registered. The department will issue annual permits: (i) for a 12-month period designated by the department which begins on the first day of a calendar month and expires on the last day of the last calendar month in that annual registration period; and (ii) to each vehicle or combination of vehicles for the registration fee prescribed by weight classification in Transportation Code, s502.162 and sec.502.167. (B) Exceptions. The department will not issue annual permits for the importation of citrus fruit into Texas from a foreign country except for foreign export or processing for foreign export. (C) Exemptions. The following exemptions apply to vehicles displaying annual permits. (i) Currently registered foreign semitrailers having gross weights in excess of 6,000 pounds used or to be used in combination with truck tractors or commercial motor vehicles with manufacturer's rated carrying capacities in excess of one ton are exempted from the requirement to pay the token fee and display the associated distinguishing license plate provided for in Transportation Code, sec.502.167. An annual permit is required for the power unit only. (ii) Vehicles registered with annual permits are not subject to the optional county registration fee under Transportation Code, sec.502.172 or the optional registration fee for child safety under Transportation Code, s502.173. (D) Travel area. A motor carrier that has been issued an annual permit may not operate outside the confines of the commercial zones determined by the Interstate Commerce Commission under 49 Code of Federal Regulations Part 1048, until December 18, 1995. (2) 72-hour permits and 144-hour permits. (A) In accordance with Texas Civil Statutes, Article 6675a-6d, the department will issue a permit valid for 72 hours or 144 hours for the movement of commercial motor vehicles, trailers, semitrailers, and motor buses owned by residents of the United States, Mexico, or Canada. (B) A 72-hour permit or a 144-hour permit is valid for the period of time stated on the permit beginning with the effective day and time as shown on the permit registration receipt. (C) Vehicles displaying 72-hour permits or 144-hour permits are subject to vehicle safety inspection in accordance with Transportation Code, sec.548.051, except for: (i) vehicles currently registered in another state of the United States, Mexico, or Canada; and (ii) mobile drilling and servicing equipment used in the production of gas, crude petroleum, or oil, including but not limited to mobile cranes and hoisting equipment, mobile lift equipment, forklifts, and tugs. (D) A 72-hour permit or a 144-hour permit will not be issued to a commercial motor vehicle, trailer, semitrailer, or motor bus apprehended for violation of Texas registration laws. Apprehended vehicles are immediately subject to Texas registration as prescribed by law. (E) A foreign motor carrier that has been issued a 72- hour or 144-hour permit may not operate outside the confines of the commercial zones determined by the Interstate Commerce Commission under 49 C.F. R. Part 1048, until December 18, 1995. (c) Application process. (1) Procedure. An owner who wishes to apply for a temporary registration permit for a vehicle which is otherwise required to be registered in accordance with sec.17.22 of this title (relating to Motor Vehicle Registration), must do so on a form prescribed by the director. (2) Form requirements. The application form will at a minimum require: (A) the signature of the owner; (B) the name and complete address of the applicant; and (C) the vehicle description. (3) Fees and documentation. The application must be accompanied by the following: (A) statutorily prescribed fees; (B) prescribed evidence of financial responsibility as required by Transportation Code, sec.502.153, provided that all policies written for the operation of foreign commercial vehicles must be issued by an insurance company or surety company authorized to write motor vehicle liability insurance in Texas; and, (C) any other documents or fees required by law. (4) Place of application. (A) All applications for annual permits must be submitted directly to the department for processing and issuance. (B) 72-hour and 144-hour permits may be obtained by making application either with: (i) the department; or (ii) the county tax assessor-collectors' offices. (d) Display of registration insignia. The department will issue a specially designed cardboard tag or windshield validation sticker, upon receipt of a complete application for a permit. (1) Cardboard tags shall be displayed in a manner that is clearly visible and legible when viewed from outside of the vehicle. The tag shall be attached to or displayed in the vehicle to allow ready inspection. (2) Windshield validation stickers shall be displayed on the inside of the front windshield in the lower left corner. (3) For each registration insignia issued, a receipt will be issued as evidence of registration to be carried in the vehicle during the time the permit is valid. If the receipt is lost or destroyed, the owner must obtain a duplicate from the department or from the county office who issued the original receipt. The fee for the duplicate receipt is the same as the fee required by Transportation Code, sec.502.179. (e) Transfer of temporary registration permits. (1) Temporary registration permits are non-transferable between vehicles and/or owners. (2) If the owner of a vehicle displaying a temporary registration permit disposes of the vehicle during the time the permit is valid, the permit must be returned to the department immediately. (f) Replacement permits. Vehicle owners displaying annual permits may obtain replacement permits if an annual permit is lost, stolen, or mutilated. (1) The fee for a replacement annual permit is the same as for a replacement number plate, symbol, tab, or other device as provided by Transportation Code, sec.502.184. (2) The owner shall apply directly to the department in writing for the issuance of a replacement annual permit. Such request should include a copy of the registration receipt and replacement fee. (g) Registration agreements with other jurisdictions. Persons currently traveling into Texas according to the provisions of letters of understanding between the department and officials of Mexico, as authorized by Transportation Code, sec.502.054, will continue to have existing vehicle registration privileges and will not be required to secure temporary registration permits through December 17, 1995, but must operate within the provisions of letters of understanding. Vehicles traveling outside the areas authorized by the letters of understanding but within the confines of the commercial zones determined by the Interstate Commerce Commission under 49 Code of Federal Regulation, Part 1048 will be required to secure temporary registration permits. On or after December 18, 1995, such persons will be required to secure and display applicable temporary registration permits for the movement of their vehicles on Texas highways that will be recognized as legal vehicle registration when the vehicles are operated in compliance with existing statutes and departmental rules. (h) Enforcement. The department will share information relating to the temporary registration of commercial vehicles with other governmental entities for related enforcement purposes. Issued in Austin, Texas, on August 31, 1995. TRD-9511081 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Chapter 18. Motor Carriers Subchapter A. General Provisions 43 TAC sec.18.1, sec.18.2 The Texas Department of Transportation adopts on an emergency basis new sec.18.1, concerning purpose, and new sec.18.2, concerning definitions for new Chapter 18, Motor Carriers. Senate Bill 3, 74th Legislature, 1995, added Texas Civil Statutes, Article 6675c, Article 6675c-1, and Article 911m, and amended Article 6687-9a concerning motor carriers, motor transportation brokers, and vehicle storage facilities, effective September 1, 1995. New sec.18.1, purpose, provides the purpose of new Chapter 18, Motor Carriers, which is to establish policies and procedures concerning registration of motor carriers, insurance requirements, administrative penalties, suspension and revocation of registration, economic regulation of household good carriers, inspection of documents and fees, bonds and fees for motor transportation brokers, and licensing of vehicle storage facilities. New sec.18.2, definitions, defines words and terms used in Chapter 18. Senate Bill 3, sec.32(b) and (f), 74th Legislature, 1995, provide that a rule adopted by the Railroad Commission under a law repealed by that legislation, and under Texas Civil Statutes, Article 6687-9a, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. New sec.18.1 and sec.18.2 and Subchapters B-G, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the recent passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, which created Texas Civil Statutes, Article 6675c, transferring the regulatory authority of the motor carrier industry from the Railroad Commission to the Texas Department of Transportation; Article 6675c-1, which mandates that the department participate in the single state registration system and Texas Civil Statutes, Article 911m, requiring a motor transportation broker to provide a bond to the Texas Department of Transportation. Senate Bill 3 also amended Texas Civil Statutes, Article 6687-9a, which transferred the licensing authority for vehicle storage facilities from the Railroad Commission to the Texas Department of Transportation. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of motor carriers, motor transportation brokers, and vehicle storage facilities, ensuring that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the public safety of the traveling motorist, safeguarding the shippers of goods transported by household goods carriers, protecting the interests of those who utilize the services of the motor carrier and vehicle storage facility industries, and ensuring that those in these industries and those associated with these industries are not seriously adversely affected economically by a disruption in these industries caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c, which authorize the department to adopt rules to administer the regulation of motor carriers, Texas Civil Statutes, Article 6675c-1, which authorize the department to administer the single state registration system, Texas Civil Statutes, Article 911m, which authorize the department to require a motor transportation broker to provide a bond, and Texas Civil Statutes, Article 6687- 9a, which authorize the department to adopt rules to administer the regulation of vehicle storage facilities. sec.18.1. Purpose. Texas Civil Statutes, Articles 6675c, 6675c-1, 911m, and 6687-9a, require the department to regulate motor carriers, motor transportation brokers, and vehicle storage facilities, in order to protect the welfare of the public and ensure fair treatment of consumers by household goods carriers. The sections under this chapter prescribe the policies and procedures for the regulation of motor carriers, transportation brokers, and vehicle storage facilities by providing for insurance limits, the issuance of motor carrier credentials, the licensing of vehicle storage facilities, the filing of performance bonds for transportation brokers, audit and recordkeeping functions, and enforcement. sec.18.2. Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Advertisement-Any communication to the public in connection with an offer or sale of any intrastate, interstate, or foreign transportation service, except for a listing of a carrier name, address, and telephone number in a directory or similar classification. Approved association -A group of household goods carriers, or its agents, or both, which has an approved collective ratemaking agreement on file with the department pursuant to sec.18.52 of this title (relating to Rates). Arbitration-A forum in which each party and counsel for that party present their position before an impartial third party, who renders a specific award. The award is not binding on either party and serves only as a basis for the parties' further settlement negotiations. Audit-A review of records and source documents of a registrant to determine its compliance with the requirements of subchapter E of this chapter (relating to Enforcement). Certificate of insurance-A certificate prescribed by and filed with the department, in which an insurance carrier or surety company warrants that a motor carrier for whom the certificate is filed has the minimum coverage as required by sec.18.16 of this title (relating to Insurance Requirements). Certificate of registration-A certificate issued by the department to a motor carrier, containing a unique number, Certified scale -Any scale designed for weighing motor vehicles, including trailers or semitrailers not attached to a tractor, and certified by an authorized scale inspection and licensing authority; a certified scale may also be a platform or warehouse type scale properly inspected and certified. Collect-on-delivery (COD) -Payment for an item at the time of its delivery. Commercial motor vehicle- (A) Includes: (i) any motor vehicle or combination of vehicles with a gross weight, registered weight, or gross weight rating in excess of 26,000 pounds, which is designed or used for the transportation of cargo or passengers; (ii) all tow trucks, as that term is defined in this section, regardless of the gross weight rating of the tow truck; (iii) any vehicle, including buses, designed to transport more than 15 passengers, including the driver; and (iv) any vehicle used in the transportation of hazardous materials in a quantity requiring placarding under the regulations issued under the federal Hazardous Materials Transportation Act (Title 49, United States Code, App. sec.sec.1801-1813). (B) Does not include: (i) a farm vehicle, as defined in this section, with a gross weight, registered weight, or gross weight rating of less than 48,000 pounds; (ii) cotton vehicles registered in accordance with Transportation Code, sec.502.277; and (iii) a vehicle registered with the Railroad Commission pursuant to 16 TAC s9.17 (relating to Lp-gas transport). Commission-The Texas Transportation Commission. Department-Texas Department of Transportation. Director-The director of the Motor Carrier Division, Texas Department of Transportation. Division-The Motor Carrier Division. Farmer-A person who operates a farm or is directly involved in the cultivation of land, crops, or livestock which are owned by that person or are under the direct control of that person. Farm vehicle-A motor vehicle that is controlled or operated by a farmer as a private motor carrier of property and is being used within 150 air-miles of the farmer's farm to transport agricultural products, farm machinery, farm supplies, or both, to or from a farm. This definition does not include a vehicle that is being used in the operation of a for-hire motor carrier or to carry hazardous materials of a type or quantity that requires the vehicle to be placarded in accordance with federal regulations. Gross weight rating-The maximum loaded weight of any combination of truck, tractor, and trailer equipment, as specified by the manufacturer of the equipment. If the manufacturer's rating is unknown, the gross weight rating is the greater of: (A) the actual weight of the equipment and its lading; or (B) the maximum lawful weight of the equipment and its lading. Household goods - (A) personal effects and property used or to be used in a dwelling when a part of the equipment or supply of such dwelling and similar property as the Interstate Commerce Commission (ICC) may provide by regulation, not including property moving from a factory or store, except property the householder has purchased with the intent to use in his or her dwelling and which is transported at the request of, and the transportation charges paid to the carrier by, the householder; (B) furniture, fixtures, equipment, and the property of stores, offices, museums, institutions, hospitals, or other establishments when a part of the stock, equipment, or supply of such stores, offices, museums, institutions, hospitals, or other establishments and similar property as the ICC may provide by regulation, not including the stock-in-trade of any establishment, whether consignor or consignee, other than used furniture and used fixtures, except when transported as incidental to moving the establishment, or a portion of it, from one location to another; and (C) articles, including objects of art, displays, and exhibits, which because of their unusual nature or value require the specialized handling and equipment usually employed in moving household goods and similar articles as the ICC may provide by regulation, not including any article, whether crated or uncrated, which does not, because of its unusual nature or value, require the specialized handling and equipment usually employed in moving household goods. Household goods carrier-A motor carrier required to register with the department under subchapter B of this chapter (relating to Motor Carrier Registration) who transports household goods. Independent-An individual who is not an employee of a household goods carrier or a shipper and who is not related by blood or marriage to the household goods carrier or the shipper. Interstate Commerce Commission (ICC)-A federal agency which regulates interstate commerce. Insurer-A person, including a surety, authorized in this state to write lines of insurance coverage required by subchapter B of this chapter (relating to Motor Carrier Registration). Manager-The manager of the department's Motor Carrier Division, Compliance and Enforcement Section. Mediation-A forum in which an impartial person, the mediator, facilitates communication between two parties to promote reconciliation, settlement, or understanding among the participants. Motor Carrier-An individual, association, corporation, or other legal entity that controls, operates, or directs the operation of one or more vehicles which transport persons or cargo over a road or highway in this state. Motor transportation broker-A person who sells, offers for sale, or negotiates for the transportation of cargo by a motor carrier operated by another person; or a person who aids and abets a person in performing an activity described in this definition. Multiple user-An individual or business who has a contract with a household goods carrier and who uses the carrier's services more than two times within one year. 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. Public highway -Any publicly owned and maintained street, road, or highway in this state. Reasonable dispatch -The performance of transportation, excluding transportation provided under tariff provision requiring guaranteed service dates, on the date or during the period of time agreed upon by the carrier and the shipper and shown on the Order For Service/Bill of Lading. Registration receipt -A receipt issued to the registrant by its registration state after the requirements of 49, Code of Federal Regulation (CFR), Part 1023 have been met. Registration state -A state where the registrant maintains a valid single state registration as defined in 49 CFR Part 1023. Revocation-The withdrawal of registration and privileges by the department or a registration state. Shipper-A person who is the consignor or consignee of a household goods shipment and is identified as such in the bill of lading contract and owns the goods being transported. Single state registration system-The program established by 49 United States Code, sec.11506. SOAH-The State Office of Administrative Hearings. 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 department or registration state. Tow truck-A 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 another vehicle. Issued in Austin, Texas, on August 31, 1995. TRD-9511065 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter B. Motor Carrier Registration 43 TAC sec.sec.18.10-18.18 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.10-18.18, concerning motor carrier registration. Senate Bill 3, 74th Legislature, 1995, added Articles 6675c and 6675c-1 which transferred the regulatory authority of the motor carrier industry from the Railroad Commission to the department and provide the department with the authority to register motor carriers, regulate the transportation of household goods, and administer the single state registration system. New sec.18.10 provides the purpose, which is to establish policies and procedures by which a motor carrier may obtain a certificate of registration, sets out minimum insurance requirements and minimum workers' compensation or accident insurance requirements, and prescribes procedures for registering as a motor carrier under the single state registration system. New sec.18.11, motor carrier registration, provides that a motor carrier may not operate a commercial motor vehicle or tow truck upon the public streets and highways of this state without first obtaining a certificate of registration issued by the department. New sec.18.12, applicability, provides for the transitional registration of motor carriers previously registered by the Texas Railroad Commission or the National Association of Regulatory Commissioners. New sec.18.13, application for motor carrier registration, describes how a motor carrier shall apply for registration with the department, including form of application, incomplete applications, disposition of applications, and supplements to original applications. New sec.18.14, expiration and renewal of commercial motor vehicle registration, describes expiration and renewal dates, as well as registration renewal procedures. New sec.18.15, payments of fees, describes the form of payments acceptable to the department by an applicant or registrant. New sec.18.16, insurance requirements, describes minimum requirements, cargo insurance, workers' compensation or accidental insurance coverage, qualification of a carrier as a self-insurer, proof of insurance and termination of insurance coverage. New sec.18.17, single state registration system, prescribes procedures for registering as a motor carrier under the single state registration system. New sec.18.18, temporary registration of international motor carriers, explains who may register, where an international carrier may apply for an international temporary registration stamp, and describes the insurance and fee required for the stamp. This section: explains that a stamp will be valid for one trip of no more than seven days and that the stamp shall be carried in the vehicle at all times; describes how an insurance agent may obtain international registration stamps; explains that the department will assign an identification number to the policy and to all stamps issued under the policy, and that stamps may be obtained in lots or by consignment; describes the licensure, insurance, and surety bonds necessary to qualify for consignment; and explains recordkeeping requirements. This section explains that temporary registration of international motor carriers shall cease after December 17, 1995. After that date an international motor carrier who operates a commercial motor vehicle or tow truck shall obtain a certificate of registration issued by the department. Senate Bill 3, sec.32(b), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under a law repealed by that legislation, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. New sec.sec.18.10-18.18 and Subchapters A and C-F, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995. Senate Bill 3 created Texas Civil Statutes, Article 6675c, transferring the regulatory authority of the motor carrier industry from the Texas Railroad Commission to the Texas Department of Transportation, and Article 6675c-1, which mandates that the department participate in the single state registration system. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of motor carriers, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the public safety of the traveling motorist, protecting the interests of those who utilize the services of the motor carrier industry, and ensuring that those in this industry and those associated with this industry are not seriously adversely affected economically by a disruption in the industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c, which authorize the department to adopt rules to administer the regulation of motor carriers, and Texas Civil Statutes, Article 6675c-1, which authorize the department to administer the single state registration system. sec.18.10. Purpose. Texas Civil Statutes, Article 6675c, provide that a motor carrier may not operate a commercial motor vehicle or a tow truck on a road or highway of this state unless the carrier registers with the department. This subchapter prescribes the procedures by which a motor carrier may obtain a certificate of registration, sets out minimum insurance requirements and minimum workers' compensation or accident insurance requirements, and prescribes procedures for registering as a motor carrier under the single state registration system. sec.18.11. Motor Carrier Registration. A motor carrier may not operate a commercial motor vehicle or tow truck upon the public streets and highways of this state without first obtaining a certificate of registration issued by the department as prescribed in this subchapter. sec.18.12. Applicability. (a) A motor carrier shall be allowed to continue to operate as a motor carrier after September 1, 1995, until the expiration date of the carrier's current cab cards issued by the Texas Railroad Commission (RRC) or the National Association of Regulatory Commissioners (NARUC), without filing an application with the department, registering equipment, or paying filing fees pursuant to this subchapter if the carrier is operating on August 31, 1995, as: (1) a motor carrier operating under a certificate of public convenience and necessity, or a permit under Texas Civil Statutes, Article 911b; (2) a motor bus carrier operating under a certificate of public convenience and necessity, or a permit under Texas Civil Statutes, Article 911a; (3) a tow truck operator operating a tow truck registered under Texas Civil Statues, Article 6687-9b; (4) a commercial carrier operating a motor vehicle registered under Texas Civil Statutes, Article 911b; or (5) an interstate motor carrier exempted from regulation by the Interstate Commerce Commission and registered with the RRC. (b) Each motor carrier operating under this section shall comply with all other requirements of this subchapter from September 1, 1995, through the expiration date of such carrier's current cab cards. At the expiration date of the cab cards of a motor carrier formerly operating under a certificate of public convenience and necessity, permit, commercial motor vehicle registration, ICC exempt registration, or tow truck registration, such motor carrier shall: (1) renew the registration of its commercial motor vehicles in compliance with sec.18.14(b) of this title (relating to Expiration and Renewal of Commercial Motor Vehicle Registration); and (2) complete an application under sec.18.13 of this title (relating to Application for Motor Carrier Registration). sec.18.13. Application for Motor Carrier Registration. (a) Form of application. The application for motor carrier registration shall be in the form prescribed by the director and shall contain, at a minimum, the following information. (1) Business or trade name. The applicant shall designate the business or trade name of the motor carrier. (2) Owner name. If the motor carrier is a sole proprietorship, the owner shall indicate the name and social security number of the owner. A partnership shall indicate the partners' names, and a corporation shall indicate principal officers and titles. (3) Principal place of business. A motor carrier shall designate on the application the motor carrier's principal business address. If the mailing address is different than the principal business address, the mailing address shall also be designated on the application. (4) Legal Agent. A Texas domiciled motor carrier will be the agent for service of process unless otherwise designated by the motor carrier. (A) The Texas domiciled motor carrier shall provide the name and address of a legal agent for service of process, if different than the motor carrier. (B) A motor carrier domiciled outside of Texas shall provide the name and Texas address of the legal agent for service of process. (C) A legal agent of process shall be a Texas resident, a domestic corporation, or a foreign corporation authorized to transact business in Texas with a Texas address for service of process. (5) Description of vehicles. All applications shall include a motor carrier equipment report identifying each commercial motor vehicle requiring registration that the carrier proposes to operate. Each commercial motor vehicle shall be identified by its motor vehicle identification number, make, model year, license plate number and state of issuance, type of cargo, and the unit number assigned to the commercial motor vehicle by the motor carrier. Any subsequent registration of vehicles shall be made in accordance with subsection (d) of this section. (6) Description of cargo. An applicant shall also: (A) state as to whether or not the carrier proposes to transport passengers, household goods, or hazardous materials; (B) state whether or not the applicant is a tow truck operator; and (C) specify the amount of insurance coverage. (7) Safety Affidavit. Each motor carrier shall complete, as part of the application, an affidavit stating that the motor carrier has knowledge of, and will conduct operations in accordance with, all federal and state safety regulations. (8) Workers compensation or accidental insurance. An applicant shall indicate on the application the type of coverage provided for employees. (9) Accompaniments to application. The following fees and information shall be included with all applications: (A) an application fee of $100, plus a fee to equal $10 for each vehicle requiring registration that the motor carrier proposes to operate; (B) proof of insurance or financial responsibility and insurance filing fee as required by sec.18.16 of this title (relating to Insurance Requirements); and (C) any other information as required by law. (10) Payment of fees. Fees paid under paragraph (9)(A) of this subsection are non-refundable and will not be prorated. Credit will be given to fees paid under sec.18.17 of this title (relating to Single State Registration System), if the carrier provides a copy of the single state registration receipt; (11) Place of application. All applications for motor carrier registration shall be filed with the department's Motor Carrier Division. (b) Incomplete applications. Any application for registration that is incomplete, but that is accompanied by all fees and proof of insurance or financial responsibility, may be conditionally accepted by the director. Conditional acceptance shall in no way constitute approval of the application. The director will notify the applicant of the additional information necessary to complete the application. If the applicant does not supply all necessary information within 45 days from notification by the director, the application will be considered withdrawn and all fees will be retained. (c) Disposition of application. (1) Approval. An applicant meeting the requirements of this section and whose registration is approved shall be issued the following information. (A) Certificate of registration. A certificate of registration will contain the name and address of the motor carrier and a single registration number, regardless of the number of vehicles the carrier operates which require registration. (B) Registration listing. An original registration listing will be issued by the department and shall be continuously maintained at the registrant's principal place of business. Such listing will contain information regarding each vehicle registered by the motor carrier. (i) A copy of the registration listing, to be provided by the motor carrier, shall be carried in each motor vehicle registered, with the appropriate information concerning that vehicle to be highlighted. The registration listing shall serve as proof of insurance as long as such insurance is in effect and such vehicle is registered with the department. (ii) The highlighted registration listing shall, upon demand, be presented by the driver to a department certified inspector in accordance with sec.18.31 of this title (relating to Investigation and Examination of Records) inspector or any other authorized government personnel for inspection. (iii) Before the expiration of its registration listing, the commercial carrier shall notify the department in writing when it discontinues use of a registered commercial motor vehicle. (iv) Any erasure, alteration, or unauthorized use of a registration listing shall render it void. (v) If an original registration listing is lost, stolen, destroyed, mutilated, becomes illegible, or otherwise requires replacement, a new registration listing will be issued by the department upon written request by the motor carrier. (2) Denial. The department may deny a registration if the applicant has a registration revoked under sec.18.72 of this title (relating to Suspension and Revocation). (d) Supplement to original application. A motor carrier required to register under this section shall submit a supplemental application under the conditions described in this subsection. (1) Additional vehicles. (A) A motor carrier may not operate an additional vehicle requiring registration unless the carrier pays a $10 registration fee for each additional vehicle the motor carrier proposes to operate, except as provided in subparagraphs (B) and (C) of this paragraph, and must have evidence of continuing insurance or financial responsibility in the amounts set forth in sec.18.16 of this title (relating to Insurance Requirements). (B) A motor carrier is not required to pay the $10 registration fee for a substitute vehicle that is a replacement for a vehicle for which the fee was previously paid, provided that the motor carrier notifies the department of the vehicle being taken out of service and identifies the replacement vehicle on a form prescribed by the department, before the replacement vehicle is put into operation. (C) Credit will be given to fees paid for vehicles registered in accordance with sec.18.17 of this title (relating to Single State Registration System), if the carrier provides the department with a copy of the single state registration receipt. (2) Change of cargo. A registered motor carrier may not begin transporting household goods or hazardous materials unless the carrier presents a supplemental application which shows the department evidence of insurance or financial responsibility in the amounts specified by sec.18.16 of this title (relating to Insurance Requirements). (3) Change of name. A motor carrier that changes its name (other than by transferring ownership) shall file a supplemental application for registration in compliance with this section no later than the effective date of the change. The motor carrier shall include evidence of insurance or financial responsibility in the new name, and in the amounts specified by sec.18.16 of this title (relating to Insurance Requirements). (4) Change of address or legal agent for service of process. A motor carrier shall notify the director, in writing, of any change of address or legal agent for service of process no later than the effective date of the change. The address most recently filed shall be presumed conclusively to be the current address. (5) Change of ownership. (A) A change of ownership of a sole proprietorship or partnership, and the merger, sale, or transfer of a corporation will require the new owner to file a new application for registration in accordance with the provisions of this section. (B) A motor carrier that is a corporation shall notify the director, in writing, of any change in the principal officers and titles no later than the effective date of the change. sec.18.14. Expiration and Renewal of Commercial Motor Vehicle Registration. (a) Expiration and renewal dates. Each motor carrier will be assigned an annual date for the expiration and renewal of its motor carrier registration according to the last digit of the carrier's certificate of registration number, as outlined in the following chart:
      Figure 1: 43 TAC sec.18.14(a) (b) Registration renewal. (1) The department will mail renewal notices to all registered motor carriers approximately 45 days prior to registration expiration. Failure to receive the notice does not relieve the registrant of the responsibility to renew. A motor carrier shall return the renewal to the department at least 15 days prior to the renewal date specified in subsection (a) of this section. All supplements to an application for motor carrier registration renewal shall: (A) supply any new information required under sec.18.13(d) of this title (relating to Application for Motor Carrier Registration) which has not previously been supplied to the department; and (B) include a $10 fee for each vehicle requiring registration that the carrier operates. (2) The motor carrier shall maintain continuous insurance or financial responsibility in an amount at least equal to the amount prescribed under sec.18.16 of this title (relating to Insurance Requirements). sec.18.15. Payment of Fees. (a) Except as provided in subsection (b) of this section, all fees provided for in this subchapter shall be paid to the department: (1) with a valid credit card approved by the department and issued by a financial institution chartered by a state or the federal government, or a nationally recognized credit organization approved by the department (persons paying by credit card will pay a service charge of $1.00 per transaction); (2) by electronic funds transfer; (3) with a personal check, business check, cashier's check, or money order, payable to the Texas Department of Transportation; or (4) by cash in person at the department's Motor Carrier Division (cash payments are not the preferred form of payment). (b) The department will not accept a personal or business check as payment for a fee required under sec.18. 17 of this title (relating to Single State Registration System). sec.18.16. Insurance Requirements. (a) Minimum requirements. A motor carrier registered under this subchapter shall carry at least the minimum amount of liability insurance and file proof of insurance with the department for each vehicle registered under this subchapter. Minimum insurance levels shall be maintained in at least the amounts indicated in the following table.
        Figure 1: 43 TAC sec.18.16(a) (b) Cargo insurance. A for-hire motor carrier of household goods shall carry cargo insurance in the same amount required by 49 United States Code, sec.10102. The minimum limits of financial responsibility for household goods carriers for hire are as follows: (1) loss or damage to total cargo shipped-$5,000; (2) loss of or damage to total cargo carried on any one motor vehicle - $5,000; and (3) aggregate loss or damage to cargo at one time-$10,000. (c) Worker's compensation or accidental insurance coverage. A motor carrier registered under this title shall provide its employees with worker's compensation or accidental insurance coverage. The minimum amounts of coverage required are: (1) $300,000 for medical expenses and coverage for at least 104 weeks; (2) $100,000 for accidental death and dismemberment, 70% of employee's pre- injury income for no less than 104 weeks when compensating for loss of income; and (3) $500 for the maximum weekly benefit. (d) Qualification of carrier as self-insurer. (1) General qualifications. A motor carrier may meet the insurance requirements of subsections (a) and (b) of this section by filing an application, in the form prescribed by the department, to qualify as a self- insurer. The application shall include a true and accurate statement of the motor carrier's financial condition and other evidence that establishes its ability to satisfy obligations for bodily injury and property damage liability, without affecting the stability or permanency of its business. In lieu of other proof, the department may accept Interstate Commerce Commission evidence of the motor carrier's qualifications as a self-insurer. (2) Adopted final orders. The department will adopt all RRC final orders concerning self-insurance active on August 31, 1995, and will continue such final orders as authorized by the RRC until further amended or changed by order of the department. (3) Applicant guidelines. In addition to filing an application as prescribed by the department, an applicant for self-insurer status shall submit materials that will allow the department to determine the following information. (A) Applicant's net worth. An applicant's net worth shall be 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 can and will maintain such a net worth. (B) Self-insurance program. An applicant shall demonstrate that it has established, and will maintain, a sound 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 section. In determining whether an applicant is maintaining a sound insurance program, the department will consider: (i) reserves; (ii) sinking funds; (iii) third-party financial guarantees; (iv) parent company or affiliate sureties; (v) excess insurance coverage; and (vi) other appropriate aspects of the applicant's program. (C) Safety program. An applicant shall submit evidence of substantial compliance with the Federal Motor Carrier Safety Regulations as adopted by the Texas Department of Public Safety, and with Texas Civil Statutes, Article 6675d. (4) Other securities or agreements. The department may consider applications for approval of securities or agreements and may approve any such application if satisfied that the security or agreement offered will afford adequate protection of the public. (5) Periodic reports. An applicant shall file annual statements, semi-annual and quarterly reports, and any other reports required by the department reflecting the applicant's financial condition and status of its self-insurance program during the period of the motor carrier's self-insurer status. (6) Duration of self-insurer status. The department may approve an applicant as a self-insurer for any specific time period, or for an indefinite period until revoked under the provisions of paragraph (7) of this subsection. (7) Revocation of self-insurer status. Upon evidence that a self-insured motor carrier's financial condition has changed, safety program or record is inadequate, or is otherwise not in compliance with this subchapter, the department may at any time, with 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 requirements of this section and any active self-insurance orders issued or adopted by the department. If an applicant fails to so demonstrate, its self- insurer status may be revoked. (8) Governmental entities. Federal, state, and local governments, including all political subdivisions, are considered to be self-insured for the purposes of this section. (9) Appeal. An applicant may appeal a denial of self-insurance status or revocation of such status by filing a petition for an administrative hearing in accordance with sec.sec.1.21 et seq of this title (relating to Contested Case Procedure). (e) Proof of insurance. (1) Proof of insurance. A motor carrier shall maintain proof of insurance in their vehicles at all times. This proof shall be in the form prescribed by the department and the Texas Department of Insurance (DOI) in coordination with the Texas Department of Public Safety. (2) Filing proof of insurance. A motor carrier's insurance or surety company shall file and maintain proof of insurance on the appropriate form: (A) at initial registration of a vehicle; (B) when the insurance carrier changes; (C) when the ownership of the certificate changes; (D) when the motor carrier changes its name under s18.13(d) (3) of this title (relating to Application for Motor Carrier Registration); and (E) when the motor carrier, under subsection (a) of this section, changes the classification of the cargo being transported. (3) Filing fee. Each certificate of insurance filed with the department for the coverage required under this section shall be accompanied by a nonrefundable filing fee of $100. (4) Other bonds, policies or certificates. No surety bond, insurance policy, or certificate of insurance will be accepted by the department unless issued by an insurance or surety company licensed and authorized to do business in the State of Texas, in the form prescribed or approved by the DOI, and signed or countersigned by an authorized agent of the insurance or surety company. The department will accept a certificate of insurance issued by a surplus lines insurer that meets the requirements of Insurance Code, Article 1.14-2, and rules adopted by the DOI 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 made by affidavit in the form required under 28 Texas Administrative Code sec.15.13 (relating to Surplus Lines Insurance Affidavit). (f) Termination of insurance coverage. Except when replaced by another acceptable form of insurance coverage approved by the department, no insurance coverage or surety bond shall be canceled or withdrawn until after 30 days notice has been given to the department by the insurance or surety company, in the form prescribed by the department and the DOI. (1) Insolvency of insurance carrier. If the insurer or surety of a motor carrier becomes insolvent or becomes involved in a receivership or other insolvency proceeding, the motor carrier may apply for approval of a surety bond or insurance policy issued by another surety or insurer, upon filing an affidavit with the department. Such affidavit shall be executed by an owner, partner, or officer of the motor carrier, and show that: (A) no accidents or claims have occurred or arisen during the insolvency of the insurance carrier or surety; or (B) that all damages and claims have been satisfied. (2) Notifications. The department shall notify the Texas Department of Public Safety of each notice received by the department under this subsection. sec.18.17. Single State Registration System. (a) Applicability. The State of Texas, through the department, participates in the single state registration system established by sec.4005 of Title IV of the Intermodal Surface Transportation Efficiency Act of 1991 (49 United States Code, sec.11506) and Texas Civil Statutes, Article 6675c-1. A for-hire carrier exempt from economic regulation by the ICC under the ICC Act shall register pursuant to Texas Civil Statutes, Article 6675c, and the provisions of this sec.18.13 of this title (relating to Application for Motor Carrier Registration) . (1) Any interstate carrier that has its principal place of business in Texas, or selects Texas as its registration state under 49 Code of Federal Regulation sec.1023.3, shall file with the department an application to register for all states of travel as required by 49 U.S.C. sec.11506 before beginning operations in Texas. (2) An interstate 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. (3) If an 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 interstate 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. (b) Initial application for single state registration. An application shall be made with the department's Motor Carrier Division on a form approved by the director. All information provided to the department must agree with information in the most recent ICC certificate or permit issued to the applicant. (1) Form of application. A motor carrier shall file a complete application with the department in order to register under the single state registration system. The application must include: (A) the applicant's legal status as a sole proprietor, partnership, or other valid legal entity; (B) the names of all owners, partners, officers, or persons with operating control; (C) any d/b/a (doing business as) name the applicant uses; (D) the applicant's principal place of business as described in paragraph (3) of this subsection; (E) the original signature of an authorized representative or its agent; and (F) the type of authority issued by the ICC. (2) Accompaniments to application. All applications shall be accompanied by: (A) a copy of the applicant's full interstate authority, unless the department waives such requirement as described in paragraph (4) of this subsection; (B) a copy of ICC form BOC-3, prescribed by 49 C.F.R. Part 1044, designating an applicant's legal agent(s) for service of process for each state of travel, or a completed ICC form BOC-3; (C) department Forms RS-1 and RS-1A with applicable information completed for all vehicles, whether owned or leased, that the applicant or registrant operates under ICC authority; (D) a statement as to whether the applicant will be transporting hazardous commodities in interstate or foreign commerce; (E) applicable fees, payable as described in subsection (i) of this section; and (F) proof of insurance showing the applicant's business address, filed in accordance with subsection (k) of this section; if such proof is not filed with the application the form will remain incomplete until proof of insurance is filed with the department, if such proof is not filed within 45 days after notice by the department, the application will be considered withdrawn and all fees paid shall be refunded. (3) Requirements regarding principal place of business. An interstate carrier's principal place of business for registration will be the business address the interstate 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. (A) 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. (B) An applicant may change its registration state, as provided by subsection (e)(3) of this section, if the applicant changes its principal place of business or its registration state ceases or commences participation in the program. (4) Waiver of filing complete ICC authority. If the ICC authority is longer than 20 pages, the department will waive the filing of the complete authority and the applicant shall: (A) provide the department a copy of the portion of the ICC order that shows the service date and order section; and (B) file a prepared synopsis of the ICC authority. (5) 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 department until all items have been corrected. If the required information is not filed within 45 days after notice by the department, the application will be considered withdrawn and all fees paid shall be refunded. (c) Registration issuance. The department will mail a registration receipt to an applicant meeting the requirements of this section, and whose registration is approved. Such registration receipt shall qualify the registrant to operate under its ICC certificate or permit in all jurisdictions indicated. (d) Registration receipts. A registration receipt 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. A registrant must retain its original registration receipt at its principal place of business for a period of three years. (1) Copies. A copy of the registration receipt, to be provided by the registrant, shall be carried in each motor vehicle for which the registrant has paid the applicable fees and, upon demand, the driver of a motor vehicle must present a copy of a registration receipt for inspection by any department certified inspector in accordance with sec.18.31 of this title (relating to Investigation and Examination of Records) or any other authorized government personnel for inspection. (2) Alterations of registration receipts. Altering the registration receipt shall subject the interstate 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 department after any court action is completed by the state in which it was confiscated. (3) Transfer of registration receipts between vehicles. Registration receipts may be transferred from vehicles taken out of service to the registrant's replacement vehicles. (4) Lost or stolen registration receipts. A registrant may apply, without charge, for a replacement registration receipt(s) if the registrant fails to receive a receipt mailed by the department or a registration receipt is otherwise lost, stolen, or destroyed. Such request shall be made in writing and must be accompanied by an affidavit detailing the facts regarding the loss of the registration receipt. (e) Amendments and corrections after original registration. (1) ICC amendments and revisions. A registrant shall file a supplemental application with the department if the registrant is issued new ICC operating authority, order, or re-entitlement, or if any amendments/revisions are made by the ICC to the registrant's authority and operations. A copy of such documents must be provided to the department as soon as they are issued. (2) Change of registrant name or business address. If the registrant changes its name (other than by transferring ownership) or its business address, the registrant shall submit to the department a copy of the re-entitlement issued by the ICC. A registrant shall also furnish proof of insurance to the department in the new name and/or business address. (3) Change of 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. (A) 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 a business address change (copy of letter from the interstate carrier to the ICC) along with a new proof of insurance filing in its registration state. (B) If a registrant changes its principal place of business to another participating state, the registrant shall: (i) notify its current and the new registration state within 30 days after making its selection; (ii) notify its insurer immediately; and (iii) refile in the new registration state all the documents required of a new registrant. (4) Transfer of ownership. When ICC authority is transferred to a new owner, the current registrant must notify the department in writing to cancel its registration, and the new owner shall register with the department in accordance with this section. (5) Other conditions requiring supplemental application. A supplemental application will be required if there is: (A) addition of equipment (a registrant may not operate more motor vehicles in any participating state than the number for which fees have been paid); (B) addition of states of travel; or (C) change of designated process agent for any state (if a registrant fails to maintain current the name of its process agent, the interstate carrier's registration shall be subject to suspension under sec.18.72 of this title (relating to Suspension and Revocation) . (f) Correction of application form. To correct an application form, the interstate carrier shall notify the department in writing to amend its application form, or the interstate carrier shall correct the application returned by the department. (g) Cancellation of registration. Upon the written request of the registrant, the department may cancel the interstate carrier's registration and notify the registrant of such action and the date of cancellation by mail. (h) Expiration and renewal of registration. (1) Expiration. Registrations issued under this section are valid for the period beginning January 1, and ending December 31, or any portion thereof. Such registrations will not be pro-rated. (2) Renewal. In order to renew an interstate carrier's registration, a registrant shall follow the procedure outlined in subsection (b) of this section before December 1st of the existing registration period. The department shall mail renewal notices to all registrants between August 1 and November 30 of the existing registration period. Failure to receive the notice does not relieve the registrant of the responsibility to renew. (A) To renew its registration, a registrant will not be required to refile a full copy of its ICC authority. (B) An applicant shall attach to its renewal application copies of additional authority grants, reentitlements, transfer orders, letters of change of name or address mailed to the ICC by the interstate carrier or grants of self-insurance orders issued by the ICC not previously filed with the department. (3) Renewal fee. All renewal applications shall be accompanied by the appropriate fees as outlined in department form RS-2, and payable in accordance with subsection (i) of this section. (i) Payment of Fees. (1) Applicable fees due may be determined by consulting department form RS-2. (2) Fees shall be paid in accordance with sec.18.15 of this title (relating to Payment of Fees). (3) 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 department's Form RS-1A, the applicant or registrant shall submit such evidence to the department with the application. After considering any such evidence, the department will notify the applicant or registrant if the proper fee has not been paid. Each participating state, in computing the appropriate portion of the revenue due the department for its registrants, may utilize the department's Form RS-2 to determine the registrant's per-vehicle fee. (j) Temporary and emergency authorities. An interstate carrier that receives emergency temporary authority (ETA) or temporary authority (TA) from the ICC for 120 days or less must comply with all the department's registration requirements as outlined in this section, except filing a copy of the authority granted by the ICC. The interstate carrier shall comply with all registration procedures within 120 days after receiving an ETA or TA or its registration may be revoked or suspended. (k) Insurance requirements. The applicant shall cause to be filed and maintained with the department proof of insurance in accordance with the levels and forms specified by 49 United States Code, Part 1043. In all applications, the interstate carrier shall indicate whether proof of insurance will be filed or has been filed with the department and whether the interstate carrier's public liability protection remains effective. A true copy of the applicant or registrant's public liability policy with the endorsements attached shall be maintained at the interstate carrier's principal place of business. (1) Registrant name. 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. The registrant's full name, including all owner names and any fictitious name or doing business as, and business address on the proof of insurance, must be identical to such information in its application and its most recent ICC order. (2) Form of proof. A "certificate of insurance" issued by an insurance agent will not be accepted as proof of insurance. (3) Self insurers. If an applicant has been approved for self-insurance by the ICC, the applicant shall indicate the status of such self-insurance on the application Form RS-1 and shall file with the department a copy of the ICC order approving a public liability self-insurance or other public liability security or agreement under the provisions of 49 C.F.R. Part 1043. The registrant shall immediately notify the department 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. (4) Changes in status. A registrant shall immediately notify the department of all changes in the status of the registrant's public liability protection. (5) Incorrect or falsified proof of insurance. If an insurance company notifies the department that information relating to an applicant or registrant's proof of insurance is incorrect or has been falsified, the department may verify the insurance information of the insured. (A) If the department finds that incorrect or falsified filings have been made, the department will notify the registrant(s) immediately and request new proof of insurance. (B) If new and valid proof of insurance is not received, the department will initiate a proceeding for suspension for non-compliance of filing proof of insurance. (6) Cancellation of insurance. Upon receiving notice of cancellation of a registrant's proof of insurance, the department 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 United State Code, sec.1043.9(d). 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 department. A cancellation notice received prior to a new filing shall terminate the liability within 30 days of notice to the department. (A) If insurance lapses because a proof of insurance has not been filed with the correct name and business address, the interstate carrier's registration will be suspended until proper proof of insurance is filed with the department. (B) When sufficient proof of insurance or other items of compliance are filed and in effect after a suspension of the registration, the department shall immediately reinstate the interstate 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. sec.18.18. Temporary Registration of International Motor Carriers. (a) Registration. In lieu of registering under sec.18.13 of this title (relating to Application for Motor Carrier Registration), an international motor carrier may apply for temporary registration in accordance with the provisions of this section. (b) Application and issuance of registration stamp. (1) Place of application. An international motor carrier may apply to an insurance agent for international temporary registration. (2) Issuance. The insurance agent shall issue temporary registration upon the international motor carrier: (A) providing proof of insurance at or above the levels required by sec.18.16(a) and (b) of this title (relating to Insurance Requirements); and (B) paying a fee of $10 for each commercial motor vehicle or tow truck to be operated in this state. (3) Registration stamp. Upon compliance with paragraph (1) of this subsection, the insurance agent will issue the carrier an international registration stamp which will be valid for one trip of no more than seven days in duration. (4) Use of stamp. The international registration stamp shall be affixed to the temporary insurance policy, and shall be carried in the vehicle at all times. (c) Insurance agents. (1) Purchase of stamps. An insurance agent may obtain international registration stamps from the department upon filing, in a form prescribed by the director, evidence of a master liability policy. The department will assign an identification number to the policy and to all stamps issued under the policy. Stamps may be obtained, in lots of five stamps per lot, either: (A) by purchase, at a cost of $10 per stamp; or (B) by consignment, with monies collected upon the sale of the stamps to be remitted to the department as provided in paragraph (4)(B) of this subsection. (2) Consignment. (A) Qualifications. Only insurance agents who are duly licensed by the Texas Department of Insurance and who maintain evidence of master insurance policies on file with the department may obtain and sell international registration stamps on consignment from the department. (B) Surety bond. An insurance agent selling international registration stamps on consignment shall file a surety bond, in a form approved by the department, issued by a corporate surety authorized to do business in this state. The bond shall ensure the return of all unused stamps, and shall ensure full timely remittance of monies collected on the sale of stamps. The amount of the bond shall be at least two times the total value of stamps held on consignment at any given time. Written notice of renewal of a bond shall be given to the department before international registration stamps may be taken on consignment from the department. (3) Recordkeeping. (A) For each international registration stamp sold by an insurance agent, the agent shall record, on a form approved by the director: (i) the name of the motor carrier to whom the stamp is issued; (ii) the vehicle identification number, and the year, make, and license number of the vehicle for which the stamp is issued; (iii) the date of sale; (iv) the port of entry; (v) the trip policy number; and (vi) the effective period of the temporary insurance policy. (B) Within 30 days of the sale of a stamp to a carrier, the agent shall submit to the department evidence of the sale, including the information required by subparagraph (A) of this paragraph. (4) Fees. (A) Charge. An insurance agent may not charge an international motor carrier more than $10 for each international registration stamp. (B) Sale on consignment. An insurance agent selling international registration stamps on consignment shall remit to the department the fee collected from the sale of a stamp no later than 30 days from the date the stamp is sold. If an insurance agent fails to remit monies to the department by the due date, the department shall discontinue issuing stamps to the agent on consignment, and may seek to enforce payment of the surety bond. No stamp shall be held on consignment for a period exceeding one year from the date of consignment by the department. (5) Design change. In the event of a design change on international stamps, the department shall redeem all unused stamps sold by the department, and shall exchange for new stamps all unused stamps consigned by the department. If a design change occurs, agents holding unused stamps shall send the stamps to the department for refund or exchange within 60 days after the effective date of the design change. Stamps not returned within the 60-day period are void. (d) Cessation of temporary registration. (1) Temporary registration of international motor carriers by the department shall cease as of December 17, 1995, and all international temporary registration stamps shall be void as of that date. (2) The sale of international registration stamps by the department shall be discontinued as of December 15, 1995. (3) The issuance on consignment of international registration stamps by the department shall cease as of December 15, 1995. (4) An insurance agent shall provide the department payment for all international registration stamps issued on consignment accompanied with an accurate accounting of all unused stamps by January 2, 1995. All unused stamps shall be returned to the department on that date. (5) The department will issue to the insurance agent refunds for unused international registration stamps purchased on consignment upon the return of the stamps that were purchased after September 1, 1995. (e) Registration as a motor carrier. After December 17, 1995, an international motor carrier who operates a commercial motor vehicle or tow truck on a road or highway of this state shall obtain a certificate of registration issued by the department under the provisions of sec.18.13 of this title (relating to Application for Motor Carrier Registration). (f) Enforcement of surety bond. The department will seek to enforce payment of the surety bond for failure to return all unused stamps and for failure to pay for all stamps issued on consignment. Issued in Austin, Texas, on August 31, 1995. TRD-9511066 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter C. Records and Inspections 43 TAC sec.sec.18.30-18.33 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.30-18.33, concerning records and inspections. Senate Bill 3, 74th Legislature, 1995, added Articles 6675c and 6675c-1 which transferred the regulatory authority of the motor carrier industry from the Railroad Commission to the department and provide the department with the authority to register motor carriers, regulate the transportation of household goods, and administer the single state registration system. New sec.18.30, purpose, explains the purpose of subchapter C, which is to describe: information and records registered motor carriers are required to maintain; where such records shall be maintained; length of time records shall be maintained; and department procedures for examining records and inspecting a motor carrier's premises. New sec.18.31, investigation and examination of records, describes the designation of department employees as certified inspectors for the purpose of conducting investigations and examinations of records, and explains a motor carrier's responsibilities for providing the following to department inspectors: adequate work space with reasonable working conditions; ability to verify and copy records and documents; access to the motor carrier's premises at mutually arranged times; and access to records and documents required to be maintained by the motor carrier, at a location specified by the department. This section also states that department certified inspectors will present credentials and a written statement from the department to the motor carrier indicating the inspector's authority to investigate the specified motor carrier. New sec.18.32, records, describes the types of complete and accurate records which must be maintained by all motor carriers, including operational logs; insurance certificates; documents to verify the carrier's operations; complete and accurate records of services performed; operation documents, including certificates of title, weight tickets, oversize/overweight permits, dispatch records, tow tickets, insurance certificates and policies, or any other document which would verify the operations of a specific vehicle. This section requires that a motor carrier make available a copy of the carrier's registration listing or cab card, requires a motor carrier to maintain proof of insurance in each registered vehicle, requires household goods carriers to maintain records, delineates additional documentation required to be maintained by such carriers, and describes accounting procedures to be used by household goods carriers. Additional documentation required of household goods carriers includes: double entry books; copies of all bills of lading and freight bills; copies of all estimates, orders for services, inventories, weight tickets, and third party invoices; copies of all time cards, trip sheets, and drivers logs; copies of all claims records; copies of all subsidiary journals; all canceled checks, bank statements and duplicate deposit slips; copies of all invoices, vouchers, and statements supporting disbursements; and daily dispatch records. This section also requires interstate carriers registered under new sec.18.17 of Subchapter B of this chapter to maintain records and documents supporting fee payments, as well as original registration receipts issued by the department, for a period of three years and delineates the location where records are to be kept for Texas firms and out-of-state firms. This section requires that all books and records must be maintained for not less than three years at the motor carrier's principal business address. New sec.18.33, enforcement, states that a motor carrier who fails or refuses to permit an inspection, does not maintain and make available the requisite records, or otherwise fails to comply with these requirements commits a violation subject to enforcement. Senate Bill 3, sec.32(b), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under a law repealed by that legislation, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. These new sec.sec.18.30-18.33 and Subchapters A, B, and D-F, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the recent passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, which created Texas Civil Statutes, Article 6675c, transferring the regulatory authority of the motor carrier industry from the Railroad Commission to the Texas Department of Transportation, and Article 6675c-1, which mandates that the department participate in the single state registration system. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of motor carriers, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the public safety of the traveling motorist, safeguarding the shippers of goods transported by household goods carriers, protecting the interests of those who utilize the services of the motor carrier industry, and ensuring that those in this industry and those associated with the industry are not seriously adversely affected economically by a disruption in the industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c, which authorize the department to adopt rules to administer the regulation of motor carriers, and Texas Civil Statutes, Article 6675c-1, which authorize the department to administer the single state registration system. sec.18.30. Purpose. The purpose of this subchapter is to advise motor carriers registered under subchapter B of this chapter (relating to Motor Carrier Registration) of the information and records they are required to maintain, where the records must be maintained, how long the records must be maintained, and department procedures for examining records and inspecting a motor carrier's premises. sec.18.31. Investigation and Examination of Records. (a) Certification of inspectors. In accordance with Texas Civil Statutes, Article 6675c, the executive director or his or her designee will designate department employees as certified inspectors for the purpose of entering the premises of a motor carrier to copy or verify documents required by this section to be maintained by the motor carrier. The executive director or his or her designee shall provide credentials to certified inspectors identifying them as department certified inspectors. (b) Inspections. (1) Every motor carrier shall admit a certified inspector access to the carrier's premises to conduct investigations of alleged violations of Texas Civil Statutes, Article 6675c, s3 and sec.4. The motor carrier shall provide adequate work space with reasonable working conditions, and allow the certified inspector to copy and verify records and documents required to be maintained by the carrier under sec.18.32 of this title (relating to Records). (2) The certified inspector may conduct inspections during normal business hours unless mutual arrangements have been made otherwise. (3) The certified inspector will present his or her credentials and a written statement from the department to the motor carrier indicating the inspector's authority to inspect the motor carrier. (c) Investigations. For routine inspections or investigations of violations of this chapter, other than a violation of Texas Civil Statutes, Article 6675c, sec.3 or sec.4, a motor carrier shall: (1) admit access to the carrier's premises; or (2) provide access to requested records and documents at a location specified by the department. sec.18.32. Records. (a) General records to be maintained. (1) All carriers. Every motor carrier shall prepare and maintain: (A) operational logs and insurance certificates and documents to verify the carrier's operations; and (B) complete and accurate records of services performed. (2) Household goods carriers. Household goods carriers and their local agents shall retain all information and documents described in this paragraph, as well as those documents described in subsection (b)(4) of this section. (b) Specific records and documents to be inspected. (1) Operation documents. To verify compliance with subchapters B and E of this chapter (relating to Motor Carrier Registration and Consumer Protection), every motor carrier shall make available to the department on request all certificate of title documents, weight tickets, permits for oversize or overweight vehicles and loads, dispatch records, tow tickets, insurance certificates and policies, or any other document which would verify the operations of the vehicle to determine the actual weight, insurance coverage, size, and/or capacity of the vehicle. (2) Registration listing. Each motor carrier shall make available to a certified inspector or any law enforcement officer a copy of the current registration listing issued by the department or a current cab card issued by the Railroad Commission or the National Association of Regulatory Commissioners. (3) Insurance forms. Every motor carrier shall maintain in the cab of each registered vehicle proof of insurance, in a form approved by the department. (4) Records and documents of household goods carriers. To verify compliance with subchapter D of this chapter (relating to Motor Transportation Brokers), every household goods carrier and each of its local agents shall make available to the department on request complete and accurate records maintained in accordance with acceptable accounting guidelines of all services performed for others whether or not such services are governed by a tariff. At a minimum, household goods carriers and their local agents shall maintain and make available the records described in subparagraph (A) and (B) of this paragraph. (A) Every household goods carrier and each of its local agents shall maintain a set of double entry books on a calendar or fiscal year basis. All transactions must be entered in the books of original entry and posted to the general ledger monthly. A trial balance of the general ledger accounts shall be prepared at the close of each month. After the end of each calendar or fiscal year, the income and expense accounts shall be closed to earned surplus or capital, and the resulting balances shall be brought forward in the general ledger for the succeeding year. Final entries shall be made in the general ledger within 60 days after the end of the period to which they relate. (B) All accounting entries shall be supported with such detailed information as is necessary to provide early analysis and verification of the transactions recorded in the books. All supporting documentation shall be filed in an orderly and systematic manner. The following documents are required: (i) copies of all bills of lading and freight bills; (ii) copies of all work orders, estimate sheets, orders for service, inventories, weight tickets, warehouse receipts, and third party invoices; (iii) copies of all time cards, trip sheets, and drivers' logs; (iv) copies of all claims records; (v) copies of all subsidiary journals; (vi) all canceled checks; (vii) all bank statements and duplicate deposit slips; (viii) copies of all invoices, vouchers, and statements supporting disbursements; and (ix) daily dispatch records. (C) Documents listed in subparagraphs (A) and (B) of this paragraph shall be maintained by the household goods carriers and their local agents in their files with complete information as to shipper, consignee, origin, destination, description of commodities transported, services performed, equipment used and date of shipment or services performed. These records shall also contain all information supporting all billing charges and the receipt and disposition of all claims. All records pertaining to an individual household goods shipment shall be filed together in a separate file referencing the name of the shipper and bill of lading number. (5) Records and documents of interstate carriers. An interstate carrier registered under sec.18.17 of this title (relating to Single State Registration) shall maintain for a period of at least three years records and documents supporting fee payments and the original registration receipts issued by the department. (c) Location of files. (1) Texas firms. Every motor carrier domiciled within the state shall maintain at a principal office in Texas all information required by the department. Maintenance of records at an alternate location must be approved by the manager. The request shall be submitted on a form approved by the manager. (2) Out-of-state firms. Every motor carrier whose principal business address is located outside the state of Texas shall maintain records required under this section at a designated place in Texas; provided, however, that a motor carrier may maintain such records at an out-of-state facility if the carrier reimburses the department for its necessary travel expenses and per diem for any inspections conducted in accordance with sec.18.31 of this title (relating to Investigation and Examination of Records). (d) Preservation and destruction of records. All books and records generated by a motor carrier must be maintained for not less than three years at the motor carrier's principal business address. sec.18.33. Enforcement. A motor carrier who fails or refuses to permit an inspection, does not maintain and make available the requisite records, or otherwise fails to comply with the requirements of this subchapter commits a violation subject to enforcement under subchapter F of this chapter (relating to Enforcement). Issued in Austin, Texas, on August 31, 1995. TRD-9511067 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter D. Motor Transportation 43 TAC sec.sec.18.40-18.42 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.40-18.42, concerning motor transportation brokers. Senate Bill 3 was passed by the 74th Legislature, 1995, adding Texas Civil Statutes, Article 911m which requires a motor transportation broker to provide a bond to the department. New sec.18.40, applicability, describes exemptions to this subchapter, including those motor transportation brokers registered as a motor carrier under Texas Civil Statutes, Article 6675c, and brokers holding a permit issued under 49 United States Code, Subtitle IV. New sec.18.41, bond, states that a motor transportation broker shall file a bond with the department before acting as a motor transportation broker, and describes the conditions of a bond, expiration or cancellation of a bond, and amount of recovery. New sec.18.42, fees, prescribes that, upon submission of a bond to the department, a motor transportation broker shall include a bond review fee of $5.00. This section also describes how fees incurred under this subchapter are to be remitted to the department. Senate Bill 3, sec.32(b), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under a law repealed by that legislation, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. New sec.sec.18.40-18.42 and Subchapters A-C and E, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995. Senate Bill 3 created Texas Civil Statutes, Article 911m, which transfers the regulatory authority of motor transportation broker bonding from the Railroad Commission to the Texas Department of Transportation. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning motor transportation brokers, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the public safety of the traveling motorist, protecting the interests of those who utilize the services of motor transportation brokers, and ensuring that those in this industry and those associated with this industry are not seriously adversely affected economically by a disruption in the industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 911m, which authorize the department to require a motor transportation broker to provide a bond. sec.18.40. Applicability. This subchapter does not apply to a motor transportation broker that is registered as a motor carrier under Texas Civil Statutes, Article 6675c, or that holds a permit issued under 49 United States Code, Subtitle IV. sec.18.41. Bond. (a) Filing. A motor transportation broker shall file a bond with the department before it may act as a motor transportation broker. (b) Conditions of bond. (1) The bond shall be: (A) in the amount of at least $10,000; (B) be executed by a bonding company authorized to do business in the State of Texas; and (C) be payable to the State of Texas or a person to whom the motor transportation broker provides services. (2) The bond shall be conditioned upon: (A) the faithful performance of the contracts or agreements of transportation by the motor carrier or motor carriers for whom the motor transportation broker is acting, and which were negotiated by the broker; and (B) the honest and faithful performance by the motor transportation broker in that capacity. (3) The bond shall provide that all defenses available to the motor carrier shall be available to the principal and surety, but no condition or provision of the bond shall otherwise affect the right of the shipper to collect all damages to which it may be entitled at law. (c) Expiration or cancellation of bond. 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 department, either personally or by certified mail. Unless the principal files a new bond in compliance with the requirements of this section on or before the expiration of the 30-day period, the person may not act as a motor transportation broker. (d) Amount of Recovery. In no event shall the total of all recoveries under a bond exceed the penal amount. sec.18.42. Fees. (a) Bond review fee. Upon submission of a bond to the department, the motor transportation broker shall include a bond review fee of $5.00, payable as described in subsection (b) of this section. (b) Payment of Fees. (1) Non-refundable. All fees paid to the department as provided for in this section are non-refundable. (2) Payment methods. A fee may be paid: (A) with a valid credit card issued by a financial institution chartered by a state or the federal government, or a nationally recognized credit organization approved by the department (persons paying by credit card will pay a service charge of $1.00); (B) by cashier's check or money order; (C) by electronic funds transfer; (D) by check; or (E) by cash in person at the Motor Carrier Division (cash payments are not the preferred form of payment). Issued in Austin, Texas, on August 31, 1995. TRD-9511068 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter E. Consumer Protection 43 TAC sec.sec.18.50-18.61 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.50-18.61, concerning the protection of consumers who use the services of household goods carriers. Senate Bill 3, 74th Legislature, 1995, added Articles 6675c and 6675c-1 which transferred the regulatory authority of the motor carrier industry from the Railroad Commission to the department and provide the department with the authority to register motor carriers, regulate the transportation of household goods, and administer the single state registration system. New sec.18.50, purpose, explains the purpose of the regulations of the consumer protection rules. New sec.18.51, local agents, allows household goods carriers to appoint a local agent and requires household goods carriers to be liable for the actions of its local agents and submit a quarterly list of its local agents to the department. This section requires local agents to operate under the household goods carriers' trade name, display the carriers' name in all advertisements, and keep shipping records on all shipments for three years. Agreements between household goods carriers and their agents must to be in writing and maintained for three years after an agreement is terminated. New sec.18.52, rates, requires household goods carriers to set all maximum rates and charges in its tariff before transporting shipment of household goods between two incorporated cities and prohibits household goods carriers or their agents from charging above the maximum rates and charges in its tariff. Household goods carriers, their agents, or both may enter into collective ratemaking agreements for the filing of maximum rates and charges and to designate an approved association as its collective ratemaking association for the purposes of filing a tariff. This section describes the required contents and signatures of the collective ratemaking agreement, procedures for handling incomplete agreements and non-compliance, and updating and amendment procedures. New sec.18.53, tariff registration, describes the submission requirements for filing a tariff, the contents of the tariff and other required documents, amendment procedures, and the conditions a tariff must meet to be approved. This section prohibits household goods carriers from operating after November 1, 1995, without filing an acceptable tariff with the department, and requires tariffs to be available to the public at the Motor Carrier Division offices. New sec.18.54, mandatory transportation standards, requires household goods carriers to: provide non-binding estimates; disclose final charges subject to minimum weight, volume, or time charges; prepare an order for service and describe the minimum information it must contain; issue a bill of lading and describe the minimum information it must contain; keep a bill of lading with a shipment; issue a freight bill and describe the minimum information it must contain; prepare an inventory of each shipment and describes the minimum information it must contain; obtain separate weight tickets on each weighing and describes the minimum information it must contain; transport a shipment with reasonable dispatch and notify shippers of shipment delays; and notify a shipper of a shipment's weight. This section allows for amending an order for service; household goods carriers to issue a document which combines the contents of the order for service, bill of lading, and freight bill; exceptions to the weight notification requirements; and household goods carriers to use a shipment release form. This section describes the minimum information binding and non- binding estimates must contain, procedures for determining weights on shipments where charges are based on a minimum weight, and prohibits household goods carriers from collecting on delivery more than 110% of the estimated charges on COD shipments. New sec.18.55, selling of insurance to shippers, allows household goods carriers to sell insurance to shippers to cover amounts in excess of the carriers liability and describes the procedures for issuing a policy, its contents, and penalties. New sec.18.56, liability of carriers, requires a shipper to declare a reasonable value for his or her shipment and exempts household goods carriers from being liable for damages in excess of the declared amount. New sec.18.57, collection of freight charges, describes the procedures for collecting freight charges on lost or destroyed shipments, shipments transported on more than one vehicle, and using charge cards to pay for freight charges. New sec.18.58, information for shippers, describes the information household goods carriers must use on all published advertisements within the state, and publications and information household goods carriers must provide to a shipper before transporting a shipment. This section prohibits false advertising on the part of the household goods carriers, and provides for a customer service line which a shipper may use to inquire about household goods carriers' complaint history. New sec.18.59, claims, describes the procedures for filing and responding to claims for loss, damage, overcharge, duplicate payment, overcollection or service problems, and requires household goods carriers to maintain a claim register which contains certain information. New sec.18.60, complaint resolution process, requires household goods carriers to establish a complaint resolution program at its expense and to participate in it; notify shippers of the availability of its complaint resolution program and the department's complaint resolution program; and maintain and report information regarding complaints to the department along with all unresolved complaints. This section further requires the complaint resolution program to meet certain standards and contain a mediation component. This section allows the department to investigate any component of the household goods carriers complaint resolution program, subject the carriers to administrative penalties, and describes the department's procedures for handling complaints from shippers. New sec.18.61, reporting requirements, requires household goods carriers to file an annual report and describes the contents of the report. Senate Bill 3, sec.32(b), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under a law repealed by that legislation, sec.31, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. New sec.sec.18.50-18.61 and Subchapters A- D, and F, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the recent passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, which created Texas Civil Statutes, Article 6675c, transferring the regulatory authority of the motor carrier industry from the Railroad Commission to the Texas Department of Transportation. Further, adoption on an emergency basis is necessary to continue protection of consumers who use the services of household goods carriers, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby safeguarding the shippers of goods transported by household goods carriers, and ensuring that those in the household goods industry and those associated with this industry are not seriously adversely affected economically by a disruption in the industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c, which authorize the department to adopt rules to administer the regulation of motor carriers, and Texas Civil Statutes, Article 6675c-1, which authorize the department to administer the single state registration system. sec.18.50. Purpose. This subchapter sets forth the department's commitment to protect shippers of household goods against deceptive or unfair practices and unreasonably hazardous activities on the part of a household goods carrier. The sections under this subchapter set out regulations pertaining to household goods carriers, including procedures for appointing local agents, ratemaking, tariff filing, mandatory transportation standards, selling insurance to shippers, carrier liability, collection of freight charges, complaint resolution and annual reporting. sec.18.51. Local Agents. (a) Appointment of local agent. A household goods carrier may appoint a local agent to represent the household goods carrier's business interests in any city, town, or area in Texas. (b) Liability. A household goods carrier shall be responsible for the acts, delinquencies, omissions, and conduct of each of its local agents. (c) Agent list. A household goods carrier shall file with the department a current, accurate list of its local agents and their addresses, on or before January 1, April 1, July 1, and October 1, of each year. (d) Use of trade name. Every local agent shall: (1) operate under the trade name of the represented household goods carriers, as shown on the certificate of registration issued by the department; and (2) prominently display the name of the represented household goods carrier in all communications with the public. (e) Availability of tariff records. A household goods carrier shall require each of its local agents to keep copies of the applicable tariff in the local agent's office, open to public inspection. (f) Shipping records maintained. A local agent shall keep a record of every shipment that it negotiates or handles for at least three years after the date of shipment. (g) Agency agreements. An agreement between a household goods carrier and its local agent shall be in writing and signed by the principal and the local agent, and copies of any agreement must be kept in the files of the household goods carrier for a period of not less than three years following the date of termination of each agreement. sec.18.52. Rates. (a) Ratemaking. A household goods carrier shall set maximum rates and charges for services in its applicable tariff and disclose the maximum rates and charges to prospective shippers before transporting a shipment between two incorporated cities. (b) Prohibited charges and allowances. A household goods carrier shall not charge a higher compensation for transportation services between two incorporated cities than the maximum charges published in its tariff on file with the department. (c) Collective ratemaking agreements. (1) Eligibility. In accordance with Texas Civil Statutes, Article 6675c, sec.9(d), a household goods carrier and/or its local agent may enter into collective ratemaking agreements between one or more other household goods carriers or local agents concerning the establishment and filing of maximum rates and charges, classifications, rules, or procedures. (2) Designation of collective ratemaking associations. An approved association may be designated by a member household goods carrier as its collective ratemaking association for the purpose of the required filing of a tariff for maximum rates and charges required by sec.18.53 of this title (relating to Tariff Registration). (3) Submission. In accordance with Texas Civil Statutes, Article 6675c, sec.9(d), a collective ratemaking agreement shall be submitted to the department for approval, and shall include the following information: (A) full and correct name and business address (street and number, city and zip code, county, and state), and phone number of the association; whether the association is an 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; (B) full and correct name and business address (city and state) of each household goods carrier on whose behalf the agreement is filed and whether it is an association, a corporation, individual, or partnership; (C) the name, title, and mailing address of counsel, officer, or other person to whom correspondence in regard to the agreement should be addressed; (D) a true copy of the agreement; and (E) a copy of the constitution, bylaws, or other documents or writings, specifying the organization's powers, duties, and procedures. (4) Signature. The collective ratemaking agreement shall be signed by all parties subject to the agreement or the association's executive officer. (5) Incomplete agreement. If the department receives an agreement which does not comply with subsection (c) of this section, the department will send a letter to the individual submitting the agreement advising them of the information that is missing and that the agreement will not be processed until the information is received. (6) Approval. In accordance with Texas Civil Statutes, Article 6675c, sec.9(d), the director or his or her designee will approve a collective ratemaking agreement if the agreement provides that: (A) all meetings are open to the public; and (B) notice of meetings shall be sent to shippers who are multiple users of household good carriers. (7) Noncompliance. The director or his or her designee may withhold approval of the agreement if he or she finds and concludes, after notice and hearing, that the agreement fails to comply with subsection (c)(6) of this section. (A) If the director determines that an agreement does not comply with subsection (c)(6), the association representative shall be notified by certified mail. This notice shall specify the reason that an agreement is not being approved. It will also notify the household goods carrier or association representative of the hearing date. (B) If the association representative resubmits an acceptable agreement which meets the requirements of subsection (c)(6) of this section within ten business days prior to the hearing date, the hearing will be canceled and the agreement will be approved. (C) If the hearing is held, the presiding officer shall explain the reason(s) that the agreement was rejected. The association representative will be allowed to respond to the objections and present evidence or exhibits which relate to his or her response. The hearing examiner, based on the evidence provided, shall decide whether an agreement shall be approved or resubmitted. The association representative shall be advised of the examiner's decision at the hearing. (8) New parties to an agreement. An updated agreement shall be filed with the department as new parties are added. (9) Amendments to approved agreements. Amendments to approved agreements (other than as to new parties) may become effective only after approval of the department. sec.18.53. Tariff Registration. (a) Submission. In accordance with Texas Civil Statutes, Article 6675c, sec.8(d), a household goods carrier shall file a tariff with the department which establishes maximum rates and charges for transportation services where, in the course of such transportation, a highway between two or more incorporated cities, towns or villages is traversed. A household goods carrier who is not a member of an approved association under sec.18.52 of this title (pertaining to Rates) shall file a tariff individually. In lieu of filing individually, a household goods carrier or its local agent, who is a member of an approved association pursuant to sec.18.52 of this title (pertaining to Rates), may designate a collective association as its ratemaking association. The association may file a tariff, as required by this subsection, for member carriers. (1) Contents. The tariff: (A) shall set out all rates, charges, rules, regulations, or other provisions, in clear and concise terms, used to determine total transportation charges; (B) shall include a requirement that the final charges relating to a shipment, as described in sec.18.54(b) of this title (relating to Mandatory Transportation Standards) be computed based on the actual weight or volume of the shipment or actual time required to transport the shipment; (C) may provide for the acceptance of charge cards for the payment of freight charges whenever shipments are transported under agreements and tariffs requiring payment by cash, certified check, or money order, and identify the charge card plans participated in by the household goods carrier; (D) may provide for the offering, selling, or procuring of insurance as provided in sec.18.55 of this title (relating to Selling of Insurance to Shippers); the tariff may also provide for the base transportation charge to include assumption by the household goods carrier for the full value of the shipment in the event a policy or other appropriate evidence of the insurance purchased by the shipper is not issued to the shipper at the time of purchase; (E) shall describe the procedure for determining charges which are below the maximum rate, as described in the applicable tariff, for each service performed; and (F) shall reference a specific mileage guide or source in the general rules section of the tariff, if information on rates and charges based on mileage is included in the tariff (The referenced mileage guide shall be filed with the department as an addendum to the tariff. If the household goods carrier utilizes a computer data base as a mileage guide, the household goods carrier shall allow free access to the system to department personnel when conducting an inquiry regarding a specific movement performed by the household goods carrier). (2) Interstate tariff. In accordance with Texas Civil Statutes, Article 6675c, sec.8(d), a household goods carrier may satisfy the requirements of this subsection by filing a copy of its tariff governing interstate household goods transportation services. (3) Transmittal letter. A transmittal letter shall accompany a tariff being filed. The transmittal letter shall provide: (A) the name of the household goods carrier; (B) the Texas mailing address and street address of the household goods carrier's principal office; (C) the household goods carrier's registration number; (D) the name and title of the household goods carrier's representative authorizing the tariff filing; and (E) whether the tariff is being filed on behalf of a member carrier. (4) Format. Tariffs shall be filed: (A) on 8 1/2" x 11" paper; (B) with a cover sheet showing: (i) the name of the issuing household goods carrier or collective ratemaking association; (ii) the Texas mailing and street address; (iii) the issuance date of the tariff; (iv) the effective date of the tariff; (v) the tariff number; and (C) shall be separated into the following sections: (i) general rules; (ii) accessorial services; and (iii) rates. (5) Item numbers. Individual items shall be titled and designated by item number. (6) Amendments. Any amendment to a tariff shall be filed with the department within ten days prior to the effective date of the amendment. The household goods carrier or collective ratemaking association filing on behalf of its member may either file an amended tariff in total or an amendment referencing the specific sections and items which are being amended. The amendment format shall be the same as required by paragraph (4) of this subsection. A transmittal letter providing the same information as required by paragraph (3) of this subsection shall accompany the amendment filing. (7) Rejection. The department will reject a tariff or amendment filing if it is determined the tariff: (A) fails to meet the requirements of this section; or (B) fails to fully disclose, in clear and concise terms, all rates, charges, and rules. (b) Operations. The department will accept a tariff which is in substantial compliance with this section if the tariff is submitted prior to November 1, 1995. (c) Access. In accordance with Texas Civil Statutes, Article 6675c, sec.8(d), tariffs filed pursuant to this section will be made available for public inspection at the Motor Carrier Division, 35th and Jackson, Camp Hubbard, Building 1 and by calling 1 (800) 299-1700. sec.18.54. Mandatory Transportation Standards. (a) Estimates of charges. (1) Binding estimates. A household goods carrier may provide in its tariff for the preparation and furnishing to shippers, binding estimates of the costs which the shippers will be required to pay. Household goods carriers must comply with the following conditions. (A) A binding estimate must be furnished, in writing, to the shipper or other person responsible for payment of the freight charges and a copy of each estimate must be retained by the household goods carrier as an addendum to the bill of lading. (B) A binding estimate and all charges to be assessed for services shall be clearly identified in the estimate. This shall be accomplished by putting the statement "Binding Estimate. Guaranteed prices for listed services." at the top of each form in red letters at least 1/2 inch high. (C) A binding estimate must clearly describe the shipment and all services to be provided. (2) Non-binding estimates. If requested by a shipper, a household goods carrier shall provide estimates of the total costs of the proposed services or estimated total weight of a shipment of household goods. A household goods carrier must comply with the following conditions. (A) A non-binding estimate shall be reasonably accurate. (B) An estimate of approximate costs shall not be binding on the household goods carriers providing such estimates. The final charges on shipments moved on non-binding estimates shall be no more than those appearing in the household goods carrier's tariff applicable to the transportation. (C) A non-binding estimate shall clearly identify the approximate charges which will be assessed for the services in the estimate. (D) The words "estimated cost of service" shall be imprinted across the top of each estimate in red letters not less than 1/2 inch high, and the statement "Not a guaranteed price. Actual cost is determined after all accessorial and transportation services have been completed" shall be included on the estimate in red letters not less than 1/4 inch high. (E) An estimate shall include the maximum charges that a shipper will be required to pay for each service rendered. (F) A non-binding estimate must be furnished without charge and in writing to the shipper or other person responsible for payment of the freight charges prior to loading the shipment and only after visual inspection of the goods to be moved is made by the estimator. (G) A copy of each non-binding estimate shall be retained by the household goods carrier as an addendum to the bill of lading, and the original estimate sheet, prepared in accordance with this subsection, shall be delivered to the shipper. (H) A statement shall be made on the order for service when a non-binding estimate was not requested or furnished to the shipper or authorized representative. (I) A non-binding estimate must clearly describe the shipment and all services to be provided. (J) The estimated charges shall be entered on the order for service and bill of lading. (3) COD delivery. At time of delivery of a COD shipment on which a non-binding estimate of the approximate costs has been furnished by a household goods carrier under the provisions of subsection (a)(2) of this section, the shipper may request delivery of the shipment upon payment, in a form acceptable to the household goods carrier, of the amount not exceeding 110% of the estimated charges, except when such shipment is delivered to a warehouse for storage at the request of the shipper. The household goods carrier shall, upon request of the shipper, relinquish possession of the shipment upon payment of not more than 110% of the estimated charges and shall defer demand for the payment of the balance of any remaining charges for a period of 30 days following the date of delivery. (b) Final charges subject to minimum weight, volume, or time provisions. A household goods carrier providing services for shippers on rates based on the transportation of a minimum weight or volume or on a minimum time period or hourly charge shall indicate on the order for service the minimum weight or volume-based rates, minimum time period or hourly charge, and the minimum charges applicable to the shipment. Failure to comply with this requirement shall result in the final charges being computed based on the actual weight or volume of the shipment or the actual number of hours used to transport the shipment. (c) Order for Service. (1) Every household goods carrier shall, prior to the receipt of a shipment of household goods to be moved for a shipper, prepare an order for service which covers each shipment transported or service performed. The order for service shall be numbered consecutively in each household goods carrier's own series at the time of printing. In lieu of preparing orders for service numbered at the time of printing, household goods carriers may elect to establish a complete system of accountability through or by assignment of a control number to an order for service or at the time of dispatch of equipment, and prior to the receipt of freight from the consignor. This control number shall: (A) be inserted on the order for service by the driver prior to the receipt of freight from the shipper; (B) be assigned in numerical sequence, centrally controlled by the household goods carrier or its dispatching terminal; (C) not be duplicated in a calendar year; (D) definitively relate to the month in which dispatch of the equipment was made and to the terminal dispatching the equipment; and (E) be entered immediately into the household goods carrier's permanent dispatch records which relate to the equipment dispatched. (2) At a minimum, the order for service shall contain: (A) the number of the order; (B) the name, address and department registration number of the household goods carrier who is responsible for performing the service; (C) the shipper's name, address and, if available, telephone number; (D) the points of origin and destination; (E) the name, address and telephone number of the delivering household goods carrier's office or local agent located at or nearest to the destination of the shipment; and (F) a telephone number at which the shipper/consignee may contact the household goods carrier or its designated agent; (G) the agreed pickup date and delivery date and time, or the agreed period or periods of time within which pickup, delivery, or the entire move, will be accomplished. (if the shipment is to be transported on a guaranteed service basis, the guaranteed dates or periods of time for pickup, transportation and delivery and any penalty or per diem requirements of the agreement shall be entered under this item); (H) the complete description of any accessorial and minimum weight or volume charges applicable to the shipment.; (I) any identification or registration number assigned the shipper by the household goods carrier; (J) amount of estimated non-binding charges; (K) the method of payment of total charges; (L) the maximum amount required to be paid at time of delivery to obtain possession of the shipment, or the amount of charges required to be paid based on a binding estimate and the terms of payment under that estimate; (M) whether the shipper requests notification of the charges prior to delivery and the telephone number or address at which such communications will be received; (N) the order for service signed by the shipper ordering the service and by the household goods carrier or its local agent (A copy of the order for service shall be dated and furnished to the shipper at the time it is executed) ; and (O) information about the availability of mediation services to resolve complaints. (3) Prior to loading, an order for service may be amended with the agreement of both parties. (d) Bill of lading. (1) Issuance of a bill of lading. Every household goods carrier shall issue a bill of lading. The bill of lading shall contain the minimum information required by paragraph (2) of this section and the terms and conditions of the contract. The household goods carrier shall furnish a complete copy of the bill of lading to the shipper prior to the commencement of the loading of a shipment. A bill of lading shall comply with, be governed by, and have the consequences stated in the Business and Commercial Code, Chapters 1-11, and any other applicable and effective provisions of the statutes. All property transported by a household goods carrier between points in Texas shall be subject to all terms and conditions of the uniform bill of lading, as set forth in this subsection, except in cases where such terms and conditions are in conflict with the laws of the State of Texas. (A) Section 1 of contract terms and conditions. (i) The household goods carrier or party in possession of any of the property herein described shall be liable at common law for any loss thereof or damage thereto, except as hereinafter provided. (ii) No household goods carrier or party in possession of all or any of the property herein described shall be liable for any loss thereof or damage thereto or delay caused by an act of God, the public enemy, the authority of law, or an act or default of the shipper or owner, or for natural shrinkage. The household goods carrier's liability shall be that of warehouseman only, for loss, damage, or delay caused by fire occurring after the expiration of the free time (if any) allowed by tariffs lawfully on file after notice of the arrival of the property at destination or at the port of export, (if intended for export) has been duly sent or given, and after placement of the property for delivery at destination, or tender of delivery of the property to the party entitled to receive it, has been made. Except in case of negligence of the household goods carrier or party in possession (and the burden to prove freedom from such negligence shall be on the household goods carrier or party in possession), the household goods carrier or party in possession shall not be liable for loss, damage, or delay occurring while the property is stopped and held in transit upon the request of the shipper, owner, or party entitled to make such request, or resulting from a defect or vice in the property, or for country damage to cotton, or from riots or strikes. Except in the case of household goods carrier's negligence, no household goods carrier, or party in possession of all or any of the property herein described, shall be liable for delay caused by highway obstruction, faulty or impassable highway, or lack of capacity of any highway, bridge, or ferry, and the burden to prove freedom from such negligence shall be on the household goods carrier or party in possession. (iii) In case of quarantine the property may be discharged at the risk and expense of the owner into quarantine depot or elsewhere, as required by quarantine regulations or authorities, or for the household goods carrier's dispatch at the nearest available point in the household goods carrier's judgment, and in any such case the household goods carrier's responsibility shall cease when property is so discharged, or property may be returned by household goods carrier at the owner's expense to the shipping point, earning freight both ways. Quarantine expenses of whatever nature or kind upon or in respect to property shall be borne by the owner of the property or the household goods carrier may file a lien. The household goods carrier shall not be liable for loss or damage occasioned by fumigation or disinfection or other acts required or done by quarantine regulations or authorities even though the same may have been done by the household goods carrier's officers, local agents, or employees, nor for detention, loss, or damage of any kind occasioned by the quarantine or its enforcement. A household goods carrier shall not be liable, except in the case of negligence, for any mistake or inaccuracy in any information furnished by the household goods carrier, its local agents, or officers, as to quarantine laws or regulations. The shipper shall hold the household goods carrier harmless from any expense it may incur, or damages it may be required to pay, by reason of the introduction of the property covered by this contract into any place against the quarantine laws or regulations in effect at such place. (B) Section 2 of contract terms and conditions. (i) A household goods carrier is not bound to transport property by any particular scheduled train, vehicle, or vessel, or in time for any particular market other than with reasonable dispatch. A household goods carrier shall have the right, in case of physical necessity, to forward the property by any household goods carrier or route between the point of shipment and the point of destination. In all cases not prohibited by law, where a lower value than actual value has been represented in writing by the shipper or has been agreed upon in writing as the released value of the property as determined by the classification or tariffs upon which the rate is based, such lower value plus freight charges, if paid, shall be the maximum amount recovered, whether or not such loss or damage occurs from negligence. (ii) As a condition precedent to recovery, a claim must be filed in writing with the receiving or delivering household goods carrier, or the household goods carrier issuing the bill of lading, or the household goods carrier on whose line the loss, damage, injury, or delay occurred, or the household goods carrier in possession of the property when the loss, damage, injury, or delay occurred, within nine months after delivery of the property (or, in the case of export traffic, within nine months after delivery at port of export) or, in case of failure to make delivery, then within nine months after a reasonable time for delivery has elapsed; and suits shall be instituted against any household goods carrier only within two years and one day from the day when notice in writing is given by the household goods carrier to the claimant that the household goods carrier has disallowed the claim or any of its part or parts specified in the notice. Where a claim is not filed or a suit is not instituted in accordance with the foregoing provisions, a household goods carrier hereunder shall not be held liable, and the claim will not be paid. (iii) Any household goods carrier or party liable on account of loss of or damage to any of the property shall have the full benefit of any insurance that may have been effected, upon, or on account of, said property, so far as this shall not avoid the policies or contracts of insurance; provided, that the household goods carrier reimburses the claimant for the premium paid. (C) Section 3 of contract terms and conditions. Except where such service is required as the result of household goods carrier's negligence, all property shall be subject to necessary cooperage and baling at the owner's cost. A household goods carrier over whose route cotton or cotton liners is to be transported shall have the privilege, at its own cost and risk, of compressing the same for greater convenience in handling or forwarding, and shall not be held responsible for deviation or unavoidable delays in procuring such compression. Grain in bulk consigned to a point where there is a railroad, public or licensed elevator, may (unless otherwise expressly noted herein, and then if it is not promptly unloaded) be delivered, and placed with other grain of the same kind and grade without respect to ownership (and prompt notice thereof shall be given to the consignor), and if so delivered shall be subject to a lien for elevator charges. (D) Section 4 of contract terms and conditions. (i) Property not removed by the party entitled to receive it within the free time (if any) allowed by tariff lawfully on file (such free time to be computed as therein provided), after notice of the arrival of the property at destination or at the port of export (if intended for export) has been duly sent or given, and after placement of the property for delivery at destination has been made, or property not received, at time tender of delivery of the property to the party entitled to receive it has been made, may be kept in vessel, vehicle, car, depot, warehouse, or place of business of the household goods carrier, subject to the tariff charge for storage and to household goods carrier's responsibility as warehouseman, only, or at the option of the household goods carrier, may be removed to and stored in a public or licensed warehouse at the point of delivery or other available point, or if no such warehouse is available at point of delivery or at other available storage facility, at the cost of the owner and there held without liability on the part of the household goods carrier, and subject to a lien for all freight and other lawful charges, including a reasonable charge for storage. In the event consignee cannot be found at address given for delivery, notice of the placing of such goods in warehouse shall be mailed to the address given for delivery and mailed to any other address given on the bill of lading for notification, showing the warehouse in which the property has been placed. (ii) Where nonperishable property which has been transported to destination hereunder is refused by consignee or the party entitled to receive it upon tender of delivery, or said consignee or party entitled to receive it fails to receive or claim it within 15 days after notice of arrival shall have been duly sent or given, the household goods carrier may sell the same at public auction to the highest bidder, at such place as may be designated by the household goods carrier; provided, that the household goods carrier shall have first mailed, sent, or given to the consignor notice that the property has been refused or remains unclaimed, as the case may be, and that it will be subject to sale under the terms of the bill of lading if disposition be not arranged for, and shall have published notice containing a description of the property, the name of the party to whom consigned, or, if shipped order notify, the name of party to be notified, and the time and place of sale, once a week for two successive weeks, in a newspaper of general circulation at the place of sale or nearest place where such newspaper is published. Thirty days must elapse after notice that the property was refused or remains unclaimed was mailed, sent, or given before notice of sale may be published. (iii) Where perishable property which has been transported is refused by the consignee or party entitled to receive it, or the consignee or party entitled to receive it shall fail to receive it promptly, the household goods carrier may, in its discretion, to prevent deterioration or further deteriorations, sell the same to the best advantage at private or public sale; provided, that if time serves for notification to the consignor or owner of the refusal of the property or the failure to receive it and request for disposition of the property, notification shall be given, in such manner as the exercise of due diligence requires before the property is sold. (iv) Where the procedure provided for in this section is not possible, it is agreed that nothing contained in the section shall be construed to abridge the right of the household goods carrier at its option to sell the property under such circumstances and in such manner as may be authorized by law. (v) The proceeds of any sale made under this regulation shall be applied by the household goods carrier to the payment of freight, demurrage, storage, and any other lawful charges and the expense of notice, advertisement, sale, and other necessary expense and of caring for and maintaining the property, if proper care requires special expense. If there is a balance it shall be paid to the owner of the property. (vi) Property destined to or taken from a station, wharf, landing, or other place at which there is no regularly appointed freight agent, shall be entirely at the risk of the owner after unloaded from cars, vehicles, or vessels, or until loaded into cars, vehicles, or vessels, and, except in case of household goods carrier's negligence when received from or delivered to such stations, wharfs, landings, or other places, shall be at owner's risk until the cars are attached to, and after they are detached from locomotives or trains or until loaded into and after unloaded from vessels, or if property is transported in motor vehicle trailers or semi-trailers, until the trailers or semi-trailers are attached to, and after they are detached from power units. When a household goods carrier is directed to unload or deliver property transported by motor vehicle at a particular location where consignee or consignee's agent is not regularly located, the risk after unloading, or delivery, shall be that of the owner. (E) Section 5 of contract terms and conditions. A household goods carrier shall not carry or be liable in any way for documents, specie, or for articles of extraordinary value not specifically rated in the published classification or tariffs unless a special agreement to do so and a stipulated value of the articles are endorsed. (F) Section 6 of contract terms and conditions. Every party, whether the principal or local agent, shipping explosives or dangerous goods, without previous full written disclosure to the household goods carrier of their nature, shall be liable for and indemnify the household goods carrier against all loss or damage caused by the goods, and the goods may be warehoused at the owner's risk and expense or destroyed without compensation. (G) Section 7 of contract terms and conditions. (i) The owner or consignee shall pay the freight and arrearage, if any, and all other lawful charges accruing on said property; but, except in those instances where it may lawfully be authorized to do so, no household goods carrier shall deliver or relinquish possession at destination of the property covered by this bill of lading until all tariff rates and charges have been paid. The consignor shall be liable for the freight and all other lawful charges, except that if the consignor stipulates, by signature, in the space provided for that purpose on the face of this bill of lading that the household goods carrier shall not make delivery without requiring payment of the charges and the household goods carrier, contrary to such stipulation shall make delivery without requiring such payment, the consignor (except as hereinafter provided) shall not be liable for the charges. Where the household goods carrier has been instructed by the shipper or consignor to deliver the property to a consignee other than the shipper or consignor, the consignee shall not be legally liable for transportation charges in respect of the transportation of the property (beyond those billed against him at the time of delivery for which he is otherwise liable) which may be found to be due after the property has been delivered to him, if the consignee is an agent only and has no beneficial title in said property, and prior to delivery of said property has notified the delivering household goods carrier in writing of the fact of such agency and absence of beneficial title, and, in the case of a shipment reconsigned or diverted to a point other than that specified in the original bill of lading, has also notified the delivering household goods carrier in writing of the name and address of the beneficial owner of said property; and, in such cases the shipper or consignor, or, in the case of a shipment so reconsigned or diverted, the beneficial owner shall be liable for such additional charges. (ii) If the consignee has given to the household goods carrier erroneous information as to whom the beneficial owner is, such consignee shall be liable for the additional charges. Nothing herein shall limit the right of the household goods carrier to require at time of shipment the payment or guarantee of the charges. If upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid on the articles actually shipped. (H) Section 8 of contract terms and conditions. If this bill of lading is issued on the order of the shipper or his agent, in exchange or in substitution for another bill of lading, the shipper's signature to the prior bill of lading as to the statement of value or otherwise, or election of common law or bill of lading, in or in connection with such prior bill of lading, shall be considered a part of this bill of lading as fully as if the same were written or made in or in connection with this bill of lading. (I) Section 9 of contract terms and conditions. Any alteration, addition, or erasure in this bill of lading which shall be made without the special notation herein of the agent of the household goods carrier issuing this bill of lading, shall be without effect, and this bill of lading shall be enforceable according to its original tenor. (2) Minimum information required on a bill of lading. Whenever a bill of lading is issued in compliance with paragraph (1) of this subsection, the household goods carrier shall include: (A) the number of the bill of lading; (B) the name and address of the household goods carrier issuing the bill of lading; (C) the date the shipment was received by the household goods carrier; (D) the points of origin and destination; (E) the number and an exact description of the commodity, goods, articles, packages, or property tendered and received for transportation, showing separately those items of differing classification and those which are subject to varying rates or charges; (F) the weight, volume, or measurement of the property tendered and received for transportation according to the lawfully applicable rates and charges shown separately by classification; (G) the names and addresses of any other household goods carriers, when known, which will participate, through interline, in the transportation of the shipment; (H) the name, address and telephone number of the office of the household goods carrier that should be contacted in relation to the transportation of the shipment; (I) the name and address of the shipper or consignee; (J) the name, address and, if furnished, the telephone number of a person to whom notification provided for in subsection (j)(2) of this section shall be given when the transportation is to be performed on a COD basis; (K) the agreed date or period of time for pickup of the shipment and the agreed date or period of time for the delivery of the shipment (The agreed dates or periods of time for pickup and delivery entered on the bill of lading shall conform to the agreed dates or periods of time for pickup and delivery entered on the order for service or a proper amendment to the order for service, except when the transportation is to be performed subject to tariff provisions providing for guaranteed service dates); (L) the dates for pickup and delivery and any penalty or per diem entitlement due the shipper under the agreement, when the transportation is to be performed subject to tariff provisions providing for guaranteed pickup, transportation and delivery service; (M) the actual date of pickup; (N) the company or household goods carrier identification number of the vehicle on which the shipment is loaded; (O) the terms and conditions for payment of the total charges including notice of any minimum charges; (P) the maximum amount required to be paid at the time of delivery to obtain delivery of the shipment when the transportation is to be performed on a COD basis; (Q) the required released rates valuation statement; (R) evidence of any insurance coverage sold to or procured for the shipper, including the amount of the premium for such insurance; and (S) a statement that mediation is available, at the household goods carrier's expense, to resolve complaints. (3) Copy of bill of lading to accompany shipment. A copy of the bill of lading shall accompany a shipment at all times while in the possession of a household goods carrier. When the shipment is loaded on a vehicle for transportation, the bill of lading shall be in possession of the driver responsible for the shipment. (e) Freight bills. Freight bills containing applicable rates and charges for services are to be issued by the household goods carriers and are to be presented to shippers for collection of such charges. The freight bill shall contain all information shown on the order for service, 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 order for service instead of on the freight bill, if a copy of the order for service is attached to the freight bill. (f) Combining documents. A household goods carrier may elect to use a combination order for service, bill of lading, and freight bill. In such an event, the combination document shall contain all information required in subsections (c), (d), and (e) of this section. (g) Shipment inventory. A 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 household goods carrier, and the household goods 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 household goods carrier's files. The inventory must reflect at a minimum: (1) a description of each article in the shipment, including: (A) the exact size, as shown in the applicable tariff, of all containers packed or crated by the carrier; (B) the exact description of items requiring charges in addition to line haul rates; (2) the symbol "CP" for all containers packed or crated by the carrier; and (3) the symbol "PBO" for all containers packed or crated by the owner or shipper. (h) Determination of weights. A carrier transporting household goods on a non-binding estimate utilizing shipment weight as a factor in determining transportation charges shall determine the weight of each shipment transported prior to the assessment of any charges. Except as provided in this section, the weight shall be obtained on a certified scale. (1) Weighing procedures. (A) The weight of each shipment shall be obtained by determining the difference between the tare weight of the vehicle on which the shipment is to be loaded prior to the loading and the gross weight of the same vehicle after the shipment is loaded; or the gross weight of the vehicle with the shipment loaded and the tare weight of the same vehicle after the shipment is unloaded. (B) At the time of both weighings, all pads, dollies, handtrucks, ramps, and other equipment required in the transportation of a shipment shall be on the vehicle. Neither the driver nor any other person shall be on the vehicle at the time of either weighing. (C) The fuel tanks on the vehicle shall be full at the time of each weighing or, in the alternative, no fuel may be added between the two weighings when the tare weighing is the first weighing performed. (D) The trailer of a tractor-trailer vehicle combination may be detached from the tractor and weighed separately at each weighing providing the length of the scale platform is adequate to accommodate and support the entire trailer at one time. (E) Shipments weighing 1,000 pounds or less may be weighed on a certified platform or warehouse scale prior to loading for transportation or subsequent to unloading. (F) The net weight of shipments transported in containers shall be the difference between the tare weight of the container, including all pads, blocking and bracing used or to be used in the transportation of the shipment, and the gross weight of the container with the shipment loaded. (G) The shipper or any other person responsible for the payment of the freight charges shall have the right to observe all weighings of the shipment. The household goods carrier must advise the shipper or any other person entitled to observe the weighings of the time and specific location where each weighing will be performed and must give that person a reasonable opportunity to be present to observe the weighings. Waiver by a shipper of the right to observe any weighing or reweighing is permitted and does not affect any rights of the shipper under these rules. (2) Weight tickets. (A) The carrier shall obtain a separate weight ticket for each weighing required under this subsection and shall carry it on the vehicle except when both weighings are performed on the same scale, one weight ticket may be used to record both weighings. Every weight ticket shall be signed by the person performing the weighing. Weight tickets shall be attached to the order for service or bill of lading covering the shipment. Weight tickets shall contain: (i) the complete name and location of the scale; (ii) the date of each weighing; (iii) identification of the weight entries as being tare, gross, or net weights; (iv) the company or carrier identification of the vehicle; (v) the last name of the shipper as it appears on the bill of lading; (vi) the household goods carrier's shipment registration or bill of lading; and (vii) the original weight ticket or tickets relating to the determination of the weight of a shipment. (B) This ticket must be retained by the carrier as part of the file on the shipment. A freight bill presented to collect any shipment charges dependent on the weight transported must be accompanied by true copies of all weight tickets obtained in the determination of the shipment weight. (3) Reweighing of shipments. Before unloading a shipment weighed at origin and after the shipper is informed of the billing weight and total charges, the shipper may request a reweigh. The charges shall be based on the reweigh weight. (4) Storage shipments. 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. (i) Reasonable dispatch. (1) Reasonable dispatch required. A household goods carrier shall ensure that shipments of household goods are transported with reasonable dispatch, unless accepted for transportation on the basis of guaranteed pickup and delivery dates. (2) Notification of delay in providing service with reasonable dispatch. Whenever a household goods carrier is unable to perform either or both the pickup and delivery of a shipment on the dates or during the periods of time specified in the order for service, the household goods carrier shall notify the shipper by telephone, electronic document transfer, or in person, at the household goods carrier's expense, of the delay. Such notification shall be given as soon as it becomes apparent to the household goods carrier that it will be unable to provide the service in compliance with the terms of the order for service. (3) Carrier notification of delay. (A) At the time of notification of delay, the household goods carrier shall advise the shipper of the dates or periods of time that pickup and/or delivery can be made, which considers the needs of the shipper. (B) If the notification of delay occurs prior to the pickup of the shipment, the amendment shall be in writing as required in subsection (c)(2)(G) of this section. (C) If the notification of delay occurs subsequent to the pickup of the shipment, the household goods carrier representative notifying the shipper of the delay shall prepare a written record of the date, time, and manner of notification, and the amended date or period of time for delivery by the household goods carrier. The record shall be retained by the household goods carrier as part of its file on the shipment and a true copy of the record shall be furnished, by first class mail or in person, to the shipper. (4) Tendering for delivery. (A) Except upon the request or concurrence of the shipper, a shipment being transported shall not be tendered for delivery prior to the agreed delivery date and time or period of time specified on the bill of lading; provided that whenever a household goods carrier is able to tender a shipment for final delivery more than 24 hours prior to the specified date or the first day of the specified period of time, and the shipper has not requested or concurred in such early delivery, the household goods carrier may, at its option, place the shipment in storage for its own account and at its own expense in a warehouse located in proximity to the destination of the shipment. (B) Whenever a household goods carrier shall exercise such option, it shall immediately notify the shipper of the name and address of the warehouse in which the shipment has been placed, and shall make and keep a record of such notification as a part of its record of shipment. (C) The household goods carrier's responsibility for the shipment under the terms and conditions of the bill of lading and its responsibility for the charges for redelivery, handling and storage thereof shall continue until final delivery; provided that the household goods carrier's responsibility under the bill of lading shall not extend beyond the agreed delivery date or the first day of the period within which delivery was to have been accomplished as specified in the bill of lading. (j) Notification of charges. (1) Weight information. Whenever a shipper specifically requests notification of the actual weight or volume and charges on a shipment, and supplies the household goods carrier with an address or telephone number at which the communication will be received, the household goods carrier shall comply with such request immediately upon determining the actual weight and charges by telephone, electronic document transfer, or in person. (2) Notification requirements. Whenever a shipper requests notification of the weight or volume and charges on a shipment, the notification must be received by the shipper, at least one full 24-hour day, excluding Saturdays, Sundays and legal holidays, prior to any tender of the shipment for delivery. (3) Exceptions. The 24-hour notification requirement shall not apply on a shipment: (A) to be backweighed; or (B) to be picked up and delivered within a time period encompassing two consecutive week days, with the agreement of the shipper; or (C) on which the charges have been estimated and the maximum amount required to be paid at time of delivery is 110% of the estimated charges. (k) Signed receipt for shipment-release prohibition. A shipping document to be signed by the shipper/consignee at time of delivery shall not contain any language which purports to release or discharge the household goods carrier or its local agents from liability. It may contain a statement that the property has been received in apparent good condition except as noted on the shipping documents. sec.18.55. Selling of Insurance to Shippers. A household goods carrier or their employee, local agent, or representative, may sell, or offer to sell or procure for any shipper, any kind of insurance, under any type of policy, covering loss or damage in excess of the specified household goods carrier liability to a shipment or shipments of household goods to be transported. (1) Policy issuance. The shipper shall be issued a policy or other appropriate evidence of the insurance purchased, and a copy of this must be furnished to the shipper at the time the insurance is sold or procured. (2) Policy language. Carrier issued policies shall be written clearly and concisely and shall clearly specify the nature and extent of coverage. (3) Penalty. Failure to issue a policy or other appropriate evidence of insurance purchased shall subject the household goods carrier to full liability for any claims to recover for loss or damage attributed to the household goods carrier. sec.18.56. Liability of Carriers. A household goods carrier shall not be required to accept a household goods shipment unless the shipper or owner of the goods or his or her local agent declares the reasonable value of the shipment in writing. The household goods carrier shall not be liable for damages in an amount in excess of the declared value for the loss, destruction or damage of the household goods. In addition, a household goods carrier shall also be subject to 49 Code of Federal Regulation Part 1056.12 (Liability of Carriers) to the extent that these regulations do not conflict with the provisions of this title. sec.18.57. Collection of Freight Charges. (a) Lost or destroyed shipments. The collection of freight charges on household good shipments involving the loss or destruction of the shipment, in transit, shall follow the guidelines described in 49 Code of Federal Regulation Part 1056.15 to the extent that these regulations do not conflict with the provisions of this title. (b) Shipments transported on more than one vehicle. The collection of freight charges on shipment transported on more than one vehicle by a household goods carrier shall follow the guidelines described in 49 Code of Federal Regulation Part 1056.16 to the extent that these regulations do not conflict with the provisions of this title. (c) Use of charge card plans. Payment by charge card shall be considered the same as payment by cash, certified check, or money order to the extent that these regulations do not conflict with the provisions of this title. sec.18.58. Information for Shippers. (a) Advertising. A household goods carrier shall include the following information on all advertisements published within the state. (1) The name or trade name of the household goods carrier as shown on the Certificate of Registration, as described in sec.18.11 of this title (relating to Motor Carrier Registration). (2) The household goods carrier's place of business and street address in this state. (3) The household goods carrier's certificate or registration number assigned by the department which shall be in the following form in every advertisement: "TxDOT No. _______," but shall not include any subnumbers which may have been assigned. (b) Publications. The household goods carrier shall provide the following information to a shipper prior to transporting any household goods: (1) a pamphlet entitled, Your Rights and Responsibilities When You Move in Texas; (2) a copy of the annual performance report most recently filed with the department; (3) a concise, easy-to-read, accurate description of the customer complaint and inquiry handling procedures established and maintained by the household goods carrier, as described in sec.18.59 of this title (relating to Claims), and sec.18.60(b) of this title (relating to Complaint Resolution Processes); in addition, the description shall include a telephone number which the shipper may use to communicate with the household goods carrier, accompanied by a clear and concise statement concerning who shall pay for such calls and the phone number of the department's customer service line; (4) a concise, easy-to-read, accurate summary of the department's complaint resolution processes available to shippers which may be used to resolve disputes over fees, damages, or services, including the processes described in sec.18.60(c) of this title (relating to Complaint Resolution Processes); and (5) the toll-free customer service line (1-800-299-1700) shippers may access to receive information about a household goods carrier's complaint history. (c) False advertising. 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 subsection if it omits any qualification imposed by the regulations of this department. (d) Shipper access to complaint information. (1) The department will maintain information about complaints against household goods carriers, including, but not limited to, information reported by household goods carriers pursuant to sec.18.60 of this title (relating to Complaint Resolution Processes) and complaints reported in the annual report as described in sec.18.61 of this title (relating to Reporting Requirements). (2) The department will maintain a toll-free number (1-800-299-1700) which any individual may use to obtain information about a household goods carrier's complaint history. (3) Shippers who wish to receive any additional information must submit a written request, to the director, describing the information they are requesting. sec.18.59. Claims. (a) Loss or damage claims. (1) Filing of claims. A household goods carrier may act on claims filed by phone or other means, but must act on all claims filed pursuant to this subsection. (A) A claim for loss, damage, injury, or delay to a shipment must be filed in writing or by electronic document transfer 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. (B) The claim must contain facts sufficient to identify the shipment, and make demand for payment of a specified or determinable amount of money. (C) Bad order reports, appraisal reports of damage, notation of exceptions on freight bills or other documents, inspection reports issued by household goods carrier inspectors, tracers, or inspection requests, cannot be substituted for a written claim but may be used to supplement or support a written claim. (2) Documents required in support of claims. A claim must be accompanied by: (A) the original freight bill and bill of lading or other contract of carriage, or copies of such documents; (B) documentation to establish the value of the property; (C) a signed statement that the property covered by the claim has not been received when an asserted claim for loss cannot otherwise be confirmed by the household goods carrier, if the household goods carrier requires it; and (D) a written assignment or other documentation of claimant's interest when the interest of the claimant in the property involved does not appear from the documents submitted. (3) Acknowledgement and disposition of claims. (A) A 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 their local agent, unless the carrier pays or declines to pay the claim, in writing, within that 15 days. At the time of claim acknowledgement, the household goods carrier shall notify the claimant in writing with the following statement: "Claim handling procedures are established by the Texas Department of Transportation. Household goods carriers operating in intrastate commerce must comply with the Motor Carrier Regulations in sec.18.59 in the handling of loss and/or damage claims. Questions or complaints concerning the household goods carrier's handling should be directed to the Motor Carrier Division at 1-800- 299-1700." The claimant shall also be notified of his or her right to request mediation if a claim is not settled to his or her satisfaction or 60 days have passed and the claim has not been resolved. The household goods carrier or its local agent shall record the date of receipt on the claim. (B) The household goods carrier shall, after a thorough investigation of the facts, 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 local agent. (C) If the claim cannot be processed within 60 days of receipt, the household goods carrier shall advise the claimant, in writing or electronic communication, of the status and reason for the delay and of the shipper's right to request mediation. The household goods carrier shall continue to advise the claimant every 30 days until a decision or settlement is made or mediation is initiated. (4) 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. (5) 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. (6) Reporting of concealed damage. The consignee has the responsibility to notify the delivering household goods 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. (7) Inspection by household goods carrier or consignee. The household goods carrier shall inspect a damaged shipment as soon as practicable after a claim has been filed or being notified and requested to inspect by the consignee, but no later than 15 normal working days after that claim filing or request. The household goods carrier shall make a written report of the results of the inspection and provide the original to the consignee. (8) 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. (9) 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. (b) Overcharge, duplicate payment, or overcollection claims. A claim for overcharge, duplicate payment, or overcollection on a shipment of household goods shall be processed and disposed of pursuant to subsection (a) of this section, except where documentation concerning the claim is required pursuant to this subsection. The following minimum documentation shall be submitted with the claim to the carrier; (1) name of the claimant, file number, if any, and the amount of the refund sought to be recovered; and (2) the original or a true copy of the freight bill. (3) additional information shall include, but is not limited to: (A) the rate or weight claimed to have been applicable; (B) freight bill payment documents; (C) binding or non-binding estimates; and (D) other documentation which substantiates the claim. (c) Service claims. Service claims on a shipment of household goods shall be processed and disposed of in the same manner described in subsection (a) of this section, and except where documentation of the claim is required, the following minimum information shall be submitted with the claim: (1) a copy of the order for service or bill of lading, including the pick-up and delivery dates; (2) an itemized list of all expenses related to the claim; and (3) copies of bills for lodging, meals, etc., if applicable. (d) Claim register. Every household goods carrier shall maintain a claim register or claim files which will include a record of every claim received, including claims for alleged loss or damage to cargo, overcharge, duplicate payment, overcollection, services, personal injury, accident, fire, or other situations. Each claim shall be numbered in each household goods carrier's own series. Each claim shall be supported by all claim papers or a memorandum identifying the person with possession of the claim papers. The household goods carrier shall notify the department of all unresolved claims pertaining to fees, damages, or services. For convenience, claims may be recorded according to type under the headings mentioned in this subparagraph. The following information on each claim shall be recorded in the register or claim files: (1) the claim number, date received, and amount; (2) the number and date of the order for service, if any; (3) name of the claimant; (4) commodity involved, if any; (5) date claim was paid; (6) total amount paid or date claim was disallowed and reasons therefor; (7) amount of salvage recovered, if any; and (8) amounts reimbursed by insurance companies, connecting lines, or others, and the amount absorbed by the household goods carrier. sec.18.60. Complaint Resolution Processes. (a) Establishment of a complaint resolution process. A household goods carrier and its local agent shall establish and maintain a program for responding to complaints and inquiries and resolving disputes over fees, damages, and services from shippers. Failure to maintain such a program may result in administrative penalties under sec.18.71 of this title (relating to Administrative Penalties). (b) Requirements for household goods carrier's complaint resolution program. (1) Program requirements. A complaint resolution program shall: (A) provide a claim filing process as described in s18.59 of this title (relating to Claims). (B) provide a fair and expeditious method for settling complaints; (C) prevent a household goods carrier from having any special advantage in any case in which the shipper resides or does business at a place distant from the household goods carrier's principal or other place of business; (D) provide a means whereby shippers may communicate with the principal office of the household goods carrier by telephone; (E) ensure that any forms or other information necessary for initiating an action under the program are provided promptly when requested by a shipper; (F) include mediation as part of the program; (G) ensure that any person conducting mediation under this program has received at least 40 hours of education pertaining to conducting mediations and has at least one year of experience conducting mediations; (H) ensure that mediators are independent of the parties to the dispute and are capable of resolving disputes fairly and quickly; (I) ensure that mediations are conducted within three calendar weeks of a request being filed with a household goods carrier; (J) ensure that mediators are authorized and able to obtain from the shipper or household goods carrier any material and relevant information, if required; (K) ensure that all costs associated with mediation under this program shall be borne by the household goods carriers, their local agents, or a collective association of household goods carriers, if appropriate; (L) not require a shipper to agree to utilize the program prior to the time that a complaint arises; and (M) ensure that any complaint mediation that is not resolved to the mutual agreement of both parties shall be reported by the carrier to the department and that shippers are advised that they may contact the department's customer service line for additional assistance in resolving complaints. (2) Participation. All household goods carriers and their local agents must participate in the mediation process. (3) Notification to shippers. Household goods carriers shall advise shippers that they must file a claim pursuant to sec.18.59 of this title (pertaining to Claims) prior to requesting mediation from the carrier and must complete or attempt to complete the household goods carrier's complaint resolution process before utilizing the department's arbitration process. Household goods carriers shall provide shippers with the phone number of the department's customer service line. (4) Records retention. The household goods carrier shall retain and make part of the file relating to a shipment, a written record of all complaints and inquiries received from a shipper by any means of communication. (5) Reporting. On or before the 15th day of May of each year, a household goods carrier shall provide a summary of all complaints received for the reporting year, including: (A) the type of complaint; (B) the date of the complaint; and (C) the disposition of the complaint. (6) Investigation. The department may investigate at any time the compliance with any requirement of this subsection, and a household goods carrier shall be subject to administrative penalties pursuant to sec.18.71 of this title (relating to Administrative Penalties) if it fails to provide mediation to a shipper or if it refuses to participate in the mediation process. (c) Department complaint resolution process. The department will establish a toll-free number (customer service line) which shippers may use to register complaints. The number is 1-800-299-1700. (1) General complaints or questions. (A) Once a shipper contacts the customer service line concerning a question or problem with a household goods carrier, the department's customer service representative will ask the shipper for details regarding his or her question or for a summary of his or her problem. (B) The customer service representative will assist the shipper with answering his or her question or resolving his or her problem with a household goods carrier. (C) Shippers shall be informed of the components of the household goods carrier's process and how to initiate a claim, mediation, or arbitration, depending on the circumstances. (2) Complaints regarding fees, damages, or services. (A) Once a shipper contacts the customer service line concerning a complaint about fees, damages, or services, the customer service representative will ask the shipper for a summary of the problem and what action the shipper has taken. (B) If the shipper has not used or attempted to use the household goods carrier's complaint resolution process, as described in subsection (b) of this section, the customer service representative will advise the shipper that he or she must attempt to resolve the complaint with the household goods carrier by following the household goods carrier's complaint resolution process before the department will attempt to resolve the shipper's complaint. (C) If a shipper attempts to utilize the household goods carrier's complaint resolution process and is unsuccessful in resolving his or her complaint with the household goods carrier, due to unavailability of mediation, lack of participation on the part of the household goods carrier, or failure to reach an acceptable agreement, the shipper may meet with an arbitrator selected by the department to resolve the complaint if the shipper contacts the department within 180 days after the last mediation meeting with the household goods carrier or last attempt to resolve the complaint with the household goods carrier. (D) If a shipper chooses to meet with an arbitrator, the department will coordinate the arbitration session and provide an arbitrator at the department's expense. All arbitration under this section is non-binding. (E) The department will establish the time, date, and location of the arbitration session. The department will take into account the schedules of the shipper and the household goods carrier when coordinating the arbitration session. The arbitration session shall take place in a neutral location near the shipper's current residence. (F) Household goods carriers shall participate in arbitration. (G) If the shipper fails to appear at the arbitration session after due notice, the household goods carrier shall be considered in compliance with the requirements of this subsection, excluding any action a shipper may take regarding the claim through legal action. (H) The shipper and the household goods carrier shall provide all documentation requested by the arbitrator in a timely fashion. (I) If the arbitration is successful and each party complies with the arbitration agreement, no further action will be taken. (J) If the household goods carrier or shipper fail to comply with the arbitration agreement, either party may pursue legal action in a court of law. (K) The department may impose administrative sanctions, under sec.18. 71 of this title (relating to Administrative Penalties), on a household goods carrier who refuses to participate in the arbitration process or otherwise fails to comply with the requirements of this section. sec.18.61. Reporting Requirements. (a) Submission date. On or before the 15th day of May of each year, every household goods carrier shall file a copy of Form CE-100, Annual Performance Report with the department. (b) Contents. This report shall include: (1) the total number of shipments transported: (A) between two incorporated cities; (B) within a city; and (C) on an interstate basis which originate in Texas; and (2) the following information for shipments included in paragraph (1)(A) and (B) of this subsection: (A) the number of shipments shipped on a binding, non-binding or other type of estimate; (B) the percentage of shipments delivered where the final charges exceeded the charges on the binding estimate or exceeded a non-binding estimate by ten percent; (C) the number of shipments where a claim was filed for loss or damage, overcharge, duplicate payment, or overcollection and the number of unresolved claims; (D) the average number of days required to resolve a claim; (E) the number of unresolved claim reported to the department and referred to the household goods carrier's mediation program; and (F) the number of claims resolved after a lawsuit was filed. Issued in Austin, Texas, on August 31, 1995. TRD-9511069 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter F. Enforcement 43 TAC sec.sec.18.70-18.72 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.70-18.72, concerning enforcement. Senate Bill 3, 74th Legislature, 1995, added Articles 6675c and 6675c-1 which transferred the regulatory authority of the motor carrier industry from the Railroad Commission to the department and provide the department with the authority to register motor carriers, regulate the transportation of household goods, and administer the single state registration system. New sec.18.70, purpose, explains the purpose of Subchapter F, which is to provide for an efficient and effective system of enforcement of Chapter 18, Motor Carriers, by setting out procedures for administrative penalties, and the suspension and revocation of motor carrier registration. New sec.18.71, administrative penalties, describes the department's authority to impose administrative penalties, defines the term "director," delineates penalty amounts which may be assessed of violators, and includes the factors that the department will consider when determining the penalty to be imposed. This section explains how proceedings will be initiated against a motor carrier and describes how a motor carrier shall be notified of the alleged violation. It describes the contents of the notice, including notice of the right of the motor carrier to an administrative hearing, how a motor carrier may respond to a notice of violation, how a hearing may be requested, and that failure to resolve the issue through the informal hearing process will result in department initiation of a contested case procedure. This section states the contents of the administrative law judge's proposal for decision, that the department shall notify the motor carrier of the director's order, and that such motor carrier may request judicial review of the order, describes the conditions under which a default judgment will be entered, describes rights and responsibilities of the motor carrier after issuance of a final order, and provides that the department and the alleged violator may enter into a compromise settlement agreement. New sec.18.72, suspension and revocation, describes the conditions under which the department may suspend or revoke a certificate of registration issued under this title, including: failure to maintain required insurance; failure to maintain proof of insurance in the cab of each registered vehicle; knowingly providing false information to the department; or at the request of the Department of Public Safety. This section provides that the department may suspend or revoke a registration certificate without an administrative hearing if: the department provides notice to the motor carrier regarding the proposed suspension or revocation, and the right of the carrier to request a hearing; and the motor carrier fails to provide the department with a written request for an administrative hearing within ten days. Senate Bill 3, sec.32(b), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under a law repealed by that legislation, that is not inconsistent with Senate Bill 3 remains in effect until superseded by a rule adopted by the department. New sec.sec.18.70-18.72 and Subchapters A-E, Chapter 18, Motor Carriers, which are being simultaneously adopted, supersede all Railroad Commission rules adopted under these laws. Adoption on an emergency basis is necessary due to the recent passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, which created Texas Civil Statutes, Article 6675c, transferring the regulatory authority of the motor carrier industry from the Railroad Commission to the Texas Department of Transportation, and Article 6675c-1, which mandates that the department participate in the single state registration system. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of motor carriers, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the public safety of the traveling motorist, and safeguarding the shippers of goods transported by household goods carriers, protecting the interests of those who utilize the services of the motor carrier industry, and ensuring that those in this industry and those associated with this industry are not seriously adversely affected economically by a disruption in this industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Civil Statutes, Article 6675c, which authorize the department to adopt rules to administer the regulation of motor carriers, and Texas Civil Statutes, Article 6675c-1, which authorize the department to administer the single state registration system. sec.18.70. Purpose. The purpose of this subchapter is to provide for an efficient and effective system of enforcement of Texas Civil Statutes, Articles 6675c and 6675c-1, by setting out procedures for administrative penalties and the suspension and revocation of motor carrier registration. This subchapter also provides for the suspension of motor carrier registration issued under Texas Civil Statutes, Articles 6675c and 6675c-1, and the suspension of a vehicle storage facility license issued under Texas Civil Statutes, Article 6687-9a, for nonpayment of child support. sec.18.71. Administrative Penalties. (a) Definition. For purposes of this section, the term "director" shall mean the executive director of the department or the executive director's designee not below the rank of division or special office director. (b) Authority. The department may impose an administrative penalty against a motor carrier required to register under this section if the motor carrier violates a provision of Texas Civil Statutes, Article 6675c, sec.sec.3, 4, 5, 8, or 12, or a provision of subchapters B, C, or E of this chapter (relating to Motor Carrier Registration, Records and Inspections, and Consumer Protection). (c) Amount of penalty. (1) The penalty for each violation may be in an amount not to exceed $5,000. (2) If it is found that the motor carrier knowingly committed a violation, the penalty for that violation may be in an amount not to exceed $15,000. A person acts knowingly if that person has acted with knowledge that such acts constitute or are in violation of Texas Civil Statutes, Article 6675c, sec.sec.3, 4, 5, 8, or 12, or a provision of subchapters B, C or E of this chapter (relating to Motor Carrier Registration, Records and Inspections, and Consumer Protection). (3) If it is found that the motor carrier knowingly committed multiple violations, the aggregate penalty for the multiple violations may be in an amount not to exceed $30,000. Multiple violations are all violations arising during a single episode pursuant to one scheme or course of conduct. (4) Each day a violation continues or occurs is a separate violation for purposes of imposing a penalty. (d) Initiation of proceedings. (1) Investigation. If an authorized investigator of the department determines that a violation has occurred, the investigator will issue a summary to the manager. The manager shall issue a report to the director stating the facts on which the investigator based his or her determination, and a recommendation on the imposition and amount of the penalty. (2) Amount of penalty. Any recommendation that a penalty should be imposed must be based on the following factors: (A) the seriousness of the violation; including the nature, circumstances, extent and gravity of any prohibited acts, and the hazard or potential hazard created to the health, safety or economic welfare of the public; (B) the economic harm to property or the environment caused by the violation; (C) the history of previous violations; (D) the amount necessary to deter future violations; (E) efforts made to correct the violation; and (F) any other matters that justice may require. (3) Notice of report. Within 14 days of the date the report was issued to the director, the department will mail, by certified mail, written notice of the report to the motor carrier. The notice will include: (A) a brief summary of the alleged violation(s); (B) a statement of the amount of the recommended penalty; (C) a statement of the right of the motor carrier to an informal hearing in accordance with paragraph (4) of this subsection; and (D) a statement of the right of the motor carrier to request an administrative hearing concerning the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (4) Motor carrier response. Not later than the 20th day after the date on which a written notice of violation is received by the motor carrier, the motor carrier may: (A) accept in writing the determination and recommended penalty; (B) submit a written request for an administrative hearing concerning the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty; or (C) submit a written request for an informal hearing under subsection (e) of this section. (e) Informal hearing. (1) Request. If requested in writing by the motor carrier within 20 days of the date of the notice issued under subsection (d)(3) of this section, the department will hold an informal hearing to discuss a sanction recommended under this section. Such hearing will be scheduled and conducted by the manager. (2) Procedure. An informal hearing shall not be subject to rules of evidence and civil procedure except to the extent necessary for the orderly conduct of the hearing. The department will summarize the nature of the violation and the penalty, and discuss the factual basis for such. The motor carrier will be afforded an opportunity to respond to the allegations verbally and/or in writing. (3) Resolution. In the event matters are resolved in the motor carrier's favor, the manager will send that carrier written notification that the proposed sanction is withdrawn. (4) Modified sanction. If matters are resolved resulting in a modified sanction, the manager may prepare a settlement agreement as provided by subsection (j) of this section. (5) Failure to resolve. If matters are not resolved in the informal hearing, the department will initiate a formal enforcement action as provided by subsection (f) of this section. (f) Administrative hearing. (1) If the motor carrier requests a hearing or fails to respond in a timely manner to the notice, the department will initiate a contested case in accordance with sec.sec.1. 21 et seq of this title (relating to Contested Case Procedure). The department will provide written notice of such action to the motor carrier. (2) A contested case under this subsection will be governed by sec.sec.1.21 et seq of this title (relating to Contested Case Procedure), subject to the following exceptions. (A) Attorney's fees. If the administrative law judge finds that a violation has occurred, he or she shall, in addition to the proposed penalty, include in the proposal for decision a finding setting out costs, fees, expenses, and reasonable and necessary attorney's fees incurred by the state in bringing the proceeding. If, under subparagraph (B) of this paragraph, the director finds that a violation has occurred, the director shall adopt the finding and make it a part of the final order. (B) Action of director. An administrative law judge's proposal for decision shall be submitted to the director, who may find that a violation has occurred and impose a penalty or may find that no violation has occurred. The director may increase or decrease the amount of the penalty recommended by the administrative law judge within the limits prescribed by subsection (c) of this section. (C) Default judgment. (i) If a respondent fails to appear in person or by legal representative on the day and at the time set for hearing in a contested case the administrative law judge, upon motion by the department, shall enter a default judgment in the matter adverse to the respondent who has failed to attend the hearing. (ii) For purposes of this subparagraph, default judgment shall mean the issuance of a proposal for decision against the respondent in which the factual allegations in the notice of hearing are deemed admitted as true, without any requirement for additional proof to be submitted by the department. (iii) Any default judgment granted under this subparagraph will be entered on the basis of the factual allegations contained in the notice of hearing, and upon the proof of proper notice to the defaulting party opponent. For purposes of this subparagraph, proper notice means notice sufficient to meet the provisions of the Government Code, sec.sec.2001.051, 2001.052, 2001.054, and 1.32 of this title (relating to Service); such notice also shall include the following language in capital letters in 12-point boldface type: FAILURE TO APPEAR AT THE HEARING WILL RESULT IN THE ALLEGATIONS AGAINST YOU SET OUT IN THIS NOTICE BEING ADMITTED AS TRUE. (iv) After the granting of a motion for default judgment, a motion by the respondent to reopen the record shall be granted if the respondent establishes that the failure to attend the hearing was neither intentional nor the result of a conscious indifference, and that the failure to attend was due to a mistake or accident. A motion to reopen the record shall be filed prior to the time that the order of the department becomes final pursuant to the provisions of the Government Code, Chapter 2001. The department will notify the motor carrier of the director's order, as provided by Government Code, Chapter 2001. Such notice will include a statement of the right of the carrier to judicial review of the order. (g) Action of motor carrier. (1) Within 30 days after the date the director's order becomes final as provided by sec.2001.144, Government Code, the motor carrier shall: (A) pay the department the amount of the penalty; (B) pay the department the amount of the penalty and file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty; or (C) without paying the amount of the penalty, file a petition for judicial review contesting the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty. (2) Within the 30-day period, a motor carrier who acts under paragraph (1)(C) of this subsection may: (A) stay enforcement of the penalty by: (i) paying the amount of the penalty into the registry of the court for placement in an escrow account; or (ii) providing to the court a supersedeas bond that is approved by the court for the amount of the penalty and that is effective until all judicial review of the director's order is final; or (B) request the court to stay enforcement of the penalty by: (i) filing with the court a sworn affidavit of a representative of the carrier stating that the carrier is financially unable to pay the amount of the penalty and is financially unable to give the supersedeas bond; and (ii) serving a copy of the affidavit on the director by certified mail. (3) If the department receives a copy of an affidavit under paragraph (2)(B)(i) of this subsection, it may file with the court, within five days after the date the copy is received, a contest to the affidavit. The court shall hold a hearing on the facts alleged in the affidavit as soon as practicable and shall stay the enforcement of the penalty on finding that the alleged facts are true. The motor carrier who files an affidavit has the burden of proving that the carrier is financially unable to pay the amount of the penalty and to give a supersedeas bond. (h) Collection. If the motor carrier does not pay the amount of the penalty and the enforcement of the penalty is not stayed, the director may refer the matter to the attorney general for collection of the amount of the penalty. (i) Judicial review. Judicial review of the order of the director is instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code, and is under the substantial evidence rule, and shall proceed in accordance with Texas Civil Statutes, Article 6675c, sec.6. (j) Settlement agreements. (1) At any time prior to the date on which a final order is issued by the director under subsection (f)(2)(B) of this section, the department and the alleged violator may agree to enter into a compromise settlement agreement. The agreement shall not constitute an admission by the motor carrier of any violation. The compromise settlement agreement shall be signed by the alleged violator and the director, and will reflect that the alleged violator consents to the assessment of a specific administrative penalty or other action by the department against the violator. (2) Simultaneously with the filing of a compromise settlement agreement, the alleged violator shall remit a cashier's check or money order to the Texas Department of Transportation, payable to the "State Treasurer of Texas." These funds shall be held in an escrow account pending the issuance of a final order. (3) Upon the issuance by the director of a final order, the administrative penalty proceeding shall cease. sec.18.72. Suspension and Revocation. (a) Grounds for action. The department may suspend or revoke a certificate of registration of a motor carrier issued under subchapter B of this chapter (relating to Motor Carrier Registration), if a motor carrier: (1) fails to maintain insurance as required by sec.18.16 of this title (relating to Insurance Requirements); (2) fails to keep proof of insurance in the cab of each vehicle as required by sec.18.16 of this title (relating to Insurance Requirements); (3) fails to register a vehicle requiring registration under subchapter B of this chapter (relating to Motor Carrier Registration); or (4) knowingly provides false information on any form filed with the department under this chapter. (b) Department of Public Safety. (1) The Department of Public Safety may request that the department suspend or revoke a certificate of registration issued under subchapter B of this chapter (relating to Motor Carrier Registration), if a motor carrier: (A) has an unsatisfactory safety rating under 49 Code of Federal Regulation, Part 385; or (B) has multiple violations of a provision of Texas Civil Statutes, Article 6675d, a rule adopted under that article, or the Uniform Act Regulating Traffic on Highways (Texas Civil Statutes, Article 6701d). (2) A request for suspension or revocation under subparagraph (1) of this subsection shall be submitted in writing by the executive director of the Department of Public Safety, and shall include appropriate documentation evidencing the violation. (c) Action without hearing. The division may suspend or revoke a certificate of registration issued under subchapter B of this chapter (relating to Motor Carrier Registration), without a prior administrative hearing under Chapter 2001, Government Code, if: (1) the department provides notice to the motor carrier of: (A) the proposed suspension or revocation; and (B) the right of the carrier to request a hearing under Chapter 2001, Government Code; and (2) the motor carrier fails to file with the department a written request for an administrative hearing within ten days after the date the carrier received the notice described in subparagraph (1) of this subsection. (d) Contested case. If the motor carrier files a written request for an administrative hearing, the department will initiate a contested case proceeding in accordance with sec.sec.1.21 et seq of this title (relating to Contested Case Procedure). (e) Failure to maintain insurance. (1) Notice. Upon receipt of notice of termination of insurance coverage under sec.18.16(f) of this title (relating to Insurance Requirements), the department will provide written notice of proposed suspension and revocation as required by subsection (c) of this section. (2) Sanction. (A) If the motor carrier does not file proof of insurance as required by sec.18.16 of this title (relating to Insurance Requirements) prior to the termination of its existing insurance, the division will suspend the motor carrier's certificate of registration for 90 days. The division will revoke the motor carrier's certificate of registration on the ninety-first day unless the motor carrier provides proof of insurance in compliance with sec.18.16 of this title (relating to Insurance Requirements) before the effective date of revocation. If proof of insurance is timely provided, the department will reinstate the certificate of registration of the motor carrier. (B) If the suspended carrier does not provide proof of insurance under subparagraph (A) of this paragraph, the carrier must file a new application in accordance with subchapter B of this chapter (relating to Motor Carrier Registration). (f) Suspension due to failure to pay court ordered child support. (1) On receipt of a final order suspending license, issued under Family Code, sec.232.008, the department will suspend: (A) a motor carrier's certificate of registration issued under subchapter B of this chapter (relating to Motor Carrier Registration); (B) the registration of an interstate motor carrier, issued under sec.18.17 of this title (relating to Single State Registration System); or (C) a vehicle storage facility license issued under subchapter G of this chapter (relating to Vehicle Storage Facilities). (2) The department will charge an administrative fee of $10 to a motor carrier, interstate motor carrier, or vehicle storage facility licensee who is the subject of an order suspending license. Issued in Austin, Texas, on August 31, 1995. TRD-9511070 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Subchapter G. Vehicle Storage Facilities 43 TAC sec.sec.18.80-18.94 The Texas Department of Transportation adopts on an emergency basis new sec.sec.18.80-18.94, concerning vehicle storage facilities. Senate Bill 3, 74th Legislature, 1995, amended Texas Civil Statutes, Article 6687-9a, to transfer the licensing authority of vehicle storage facilities from the Railroad Commission of Texas to the department and provide that the department adopt rules to establish requirements for licensing and ensuring that storage facilities maintain adequate standards. New sec.18.80, purpose and scope, provides the purpose, which is to establish policies and procedures by which a vehicle storage facility operator may obtain a vehicle storage facility license, describes the conditions under which a licensee must operate a facility and the procedures by which the department will enforce this subchapter. New sec.18.81, applicability, provides exemptions to the Vehicle Storage Facility Act and the provisions of this subchapter. New sec.18.82, definitions, defines the words and terms applicable to this subchapter. New sec.18.83, application for original vehicle storage facility license, describes the form of application, information required upon an application, and fees associated with application for vehicle storage facility licenses. New sec.18.84, issuance and renewal of license duplicate vehicle storage facility license, describes how the department issues vehicle storage facility licenses, terms of such licenses, expiration of vehicle storage facility licenses, how a licensee may obtain a duplicate license, and the license renewal. New sec.18.85, payment of fees, describes how fees may be paid to the department for licenses issued under this subchapter. New sec.18.86, insurance requirements, describes insurance coverage requirements for vehicle storage facility licensees, and cancellation or expiration of insurance coverage. New sec.18.87, notifications regarding towed vehicles, describes how a licensee must notify owners of towed vehicles, including form of notifications and notification fees. New sec.18.88, documentation and records, describes the content of written records required to be maintained by a licensee, form of documentation, availability of documentation, and care and custody of records. New sec.18.89, notice of complaint procedure, prescribes that each licensee shall notify consumers and service recipients of complaint procedures, and describes how such information shall be transmitted. New sec.18.90, rights of owner or authorized representative, describes such rights including, inspection of applicable records, access to personal belonging in the vehicle, and access to the vehicle for insurance and/or repair estimates. New sec.18.91, facility requirements, prescribes requirements for vehicle storage facilities, including enclosure and security of stored vehicles, as well as surfacing, illumination and sign requirements. New sec.18.92, technical requirements, describes: requirements for release of vehicles; publicly listed telephone number; inspection of stored vehicles; removal of parts, dismantling or demolishing of stored vehicles; use of stored vehicles by facility owner, operator or employees; reasonable storage efforts; preservation of stored vehicles; preservation fee; repair or alteration of stored vehicles; and vehicle transfers. New sec.18.93, storage fees/charges, provides the maximum fees which may be charged by a vehicle storage facility licensee, including, notification fee, daily storage fee, preservation fee, and additional fees. New sec.18.94, sanctions, prescribes types of sanctions and procedures for issuing sanctions against a licensee, including administrative sanctions, injunctive relief and civil penalty, revocation or suspension due to criminal conviction, failure to maintain insurance and suspension due to failure to pay court ordered child support. Senate Bill 3, sec.32(f), 74th Legislature, 1995, provides that a rule adopted by the Railroad Commission under Texas Civil Statutes, Article 6687-9a, remains in effect until superseded by a rule adopted by the department. New sec.sec.18.80-18.94 supersede all Railroad Commission rules adopted under that statute. Adoption on an emergency basis is necessary due to the passage of Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995. Senate Bill 3 amended Texas Civil Statutes, Article 6687-9a which transferred the regulatory authority of the vehicle storage facility industry from the Texas Railroad Commission to the Texas Department of Transportation. Further adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of vehicle storage facilities, and ensure that these regulations are operative by the effective date of Senate Bill 3, September 1, 1995, thereby protecting the interests of those who utilize the services of the vehicle storage facility industry, and ensuring that those in this industry and those associated with this industry are not seriously adversely affected economically by a disruption in the industry caused by this change in regulatory authority from the Railroad Commission to the department. The new sections are adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Texas Civil Statutes, Article 6687-9a, which authorize the department to adopt rules to administer the regulation of vehicle storage facilities. sec.18.80. Purpose and Scope. Texas Civil Statutes, Article 6687-9a (Vehicle Storage Facility Act), provide that a person may not operate a vehicle storage facility unless the person holds a current license to operate a vehicle storage facility issued by the Texas Department of Transportation. This subchapter describes the procedures by which a person may obtain a license to operate a vehicle storage facility, conditions under which a licensee must operate the facility, and the procedures by which the department will enforce this subchapter. sec.18.81. Applicability. Provisions of the Vehicle Storage Facility Act and this subchapter do not apply to a vehicle parked or stored at a VSF with the consent of the vehicle's owner, or to VSFs operated by persons licensed pursuant to the Texas Motor Vehicle Commission Code, Texas Civil Statutes, Article 4413(36). sec.18.82. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. Act-The Vehicle Storage Facility Act, Texas Civil Statutes, Article 6687-9a, concerning vehicle storage facilities. Day-Twenty-four continuous hours. Fence-An enclosure of wood, chain link, iron, concrete, or masonry, placed around an area used to store vehicles and designed to prevent intrusion and escape. Preservation-An action taken by or at the direction of the owner or operator of a vehicle storage facility that is necessary to preserve, protect, or service a vehicle stored or parked at the facility. Principal-An individual who: (A) holds personally, or as a beneficiary of a trust, or by other constructive means: (i) 10% of a corporation's outstanding stock; or (ii) more than $25,000 of the fair market value of a business; (B) has the controlling interest in a business; (C) has a participating interest of more than 10% in the profits, proceeds, or capital gains of a business, regardless of whether the interest is direct or indirect, is through share, stock, or any other manner, or includes voting rights; (D) is a member of the board of directors or other governing body of a business; or (E) serves as an elected officer of a business. Vehicle-A motor vehicle subject to registration under the Certificate of Title Act, Texas Civil Statutes, Article 6687-1, or any other device designed to be self-propelled or transported on a public highway and which is towed or transported to a vehicle storage facility without the owner's consent. Vehicle owner-A person: (A) in whose name the vehicle is registered under the Certificate of Title Act, Transportation Code, Chapter 501; (B) in whose name the vehicle is registered under Transportation Code, Chapter 502 or a member of the person's immediate family; (C) who holds the vehicle through a valid lease agreement; or (D) who is an unrecorded lienholder with a right to possession. Vehicle storage facility (VSF)-A garage, parking lot, or any facility owned or operated by a person other than a governmental entity for storing or parking 10 or more vehicles. Ten or more vehicles shall mean the capacity to park or store 10 or more vehicles per year. sec.18.83. Application for Original Vehicle Storage Facility License. (a) Application form. An application for an original VSF license shall be made under oath and must contain: (1) a list of felony convictions and misdemeanor convictions, if any, for which the maximum punishment is confinement in jail and/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 each owner of the VSF and the percentage of ownership interest each holds in the facility; (5) the name of the operator/manager of the VSF if it is not operated/managed by one of the owners; (6) the facility's physical address, mailing address, and telephone number; (7) the VSF's storage capacity; (8) if applicable, the height of the fence enclosing the VSF and the date it was installed; (9) statements indicating whether or not the facility has an all weather surface, signs posted in the proper locations, and lighting, as required by sec.18.91 of this title (relating to Facility Requirements); and (10) the applicant's social security number, if the applicant is an individual. (b) Signature. A corporation's application must be signed and sworn to by its president and secretary. (c) Application fee. Each application for an original VSF license must be accompanied by the $100 application fee. Such fee is non-refundable, and is payable in accordance with sec.18.85 of this title (relating to Payment of Fees). sec.18.84. Issuance and Renewal of License; Duplicate Vehicle Storage Facility License. (a) Issuance. The department will issue a VSF license to an applicant meeting the requirements of sec.18.83 of this title (relating to Application for Original Vehicle Storage Facility License). (b) Transferability/assignability. VSF licenses are non-transferrable and non- assignable. (c) Expiration. VSF licenses are valid for 12 months and expire annually on the issuance anniversary date. (d) Duplicate vehicle storage facility licenses. Application for a duplicate VSF license shall be made with the department. A $25 fee will be charged for issuing a duplicate license. This fee is non-refundable, and may be paid in accordance with s18.85 of this title (relating to Payment of Fees). The expiration date of a duplicate VSF license shall be the same as the original license. (e) Renewal of vehicle storage facility license. Licensees must apply annually, prior to license expiration, to renew the VSF operators license. (1) Renewal notices. The department will mail a license renewal notice indicating the month and year the license expires to each licensee approximately 45 days prior to license expiration. Failure to receive the notice does not relieve the licensee of the responsibility to renew the VSF license. (2) Renewal application and fee. An application for VSF license renewal must be returned by the licensee to the department, either in person, by mail, or by telefacsimile, and shall be accompanied by the annual renewal fee of $75. The renewal fee is non-refundable and is payable as described in sec.18.85 of this title (relating to Payment of Fees). (3) Expired vehicle storage facility license. A license will not be renewed if a renewal application is not submitted prior to expiration of the previous year's license. An individual, partnership, or corporation whose VSF is still in business and whose license is not renewed prior to expiration must apply for a new license in accordance with sec.18.84 of this title (relating to Issuance, Renewal and Duplicate Vehicle Storage Facility Licenses). sec.18.85. Payment of Fees. (a) Non-refundable. All fees paid to the department as provided for in this subchapter are non-refundable. (b) Payment methods. Fees required by this subchapter may be paid: (1) with a valid credit card by a financial institution chartered by a state or the federal government or by a nationally recognized credit organization approved by the department (persons paying by credit card must pay a service charge of $1.00 in addition to the application fee); (2) by electronic funds transfer; (3) by personal check, business check, cashier's check or money order, made payable to the Texas Department of Transportation; or (4) by cash, in person at the department's Motor Carrier Division (cash payments are not the preferred form of payment). sec.18.86. Insurance Requirements. (a) Requirements. Each license applicant shall file with the department a certificate of insurance evidencing the required garage keeper's legal liability insurance for the VSF. No insurance policy or certificate of insurance will be accepted by the department unless issued by an insurance company licensed and authorized to do business in this state in the form prescribed or approved by the Texas Department of Insurance and signed or countersigned by an authorized agent of the insurance company. (b) Coverage. Insurance coverage shall be in an amount of not less than $9,000 for injury to or destruction of property of others if the VSF 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. The VSF's insurance policy shall be kept in full force and effect so long as the facility is operating. (c) Cancellation or expiration. The VSF's insurance policy shall provide that the insurance company will give the department 30 days prior written notice of any policy cancellation or expiration. The department will cancel the license if the insurance has been canceled or it has expired. sec.18.87. Notifications Regarding Towed Vehicles. (a) Notification to owners of registered vehicles. Registered owners of towed vehicles shall be notified in the following manner. (1) Vehicles registered in Texas. After accepting for storage a vehicle registered in Texas, the VSF 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. (2) Vehicles registered outside of Texas. After accepting for storage a vehicle registered outside of Texas, or outside of the United States, the VSF 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. It shall be a defense to an action initiated by the department for violation of this section that the facility has attempted, in writing, but been unable to obtain information from the governmental entity where the vehicle is registered. (3) Vehicle registrant unknown. 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. (b) Unclaimed or undeliverable notices. Regardless of place of vehicle registration, if the certified/registered letter is returned unclaimed, refused, or moved, left no forwarding address, publication in a newspaper is not required. (c) Date of notification. Notification will be considered to have occurred when the United States Postal Service places its postmark upon the written notice. (d) Form of notifications. All notifications shall state: (1) the full name of the VSF 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 the VSF 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 VSF number preceded by the words "Texas Department of Transportation Vehicle Storage Facility License Number"; and (6) a notice of the towed vehicle owner's right under Transportation Code, Chapter 685.001, to challenge the legality of the tow involved. (e) Non-consent towed vehicle towed from private property. A VSF 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 notification of 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. (f) Notification fee. The VSF operator may not charge an owner more than $25 for notifications described by this section. 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 VSF operator. sec.18.88. Documentation and Records. (a) Content of written records. Each licensee shall keep written records on each vehicle kept or stored at the VSF. 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 name of the company that towed the vehicle, and the license plate numbers of plates issued to the tow truck under Transportation Code, sec.502.180 and sec.502.281; (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 VSF, 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 VSF 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) Form of documentation. 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) Availability of documentation. All required documentation shall be made available by the licensee, the licensee's agent, or the licensee's employee for inspection and copying upon request by department personnel, or a certified law enforcement officer within the officer's jurisdiction, during the same hours the VSF must ensure that vehicles are available for release to the vehicle owner. (d) Care and custody of records. 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. sec.18.89. Notice of Complaint Procedure. Each VSF shall notify consumers and service recipients of the name, mailing address, and telephone number of the department for purposes of directing complaints to the department. The licensee may use a sticker or rubber stamp to convey the required information. The notification shall be included on: (1) any written wrecker slip or ticket; (2) a sign prominently displayed at the place of payment; and (3) any bill for service. sec.18.90. Rights of Owner or Authorized Representative.
          When a person demonstrates ownership or right to possession of a motor vehicle stored at a VSF, the person and his/her authorized representative shall: (1) be entitled 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 enclosure for the person to inspect satisfies this requirement); (2) be given access to, and be allowed to remove, any personal belongings in the vehicle, unless otherwise indicated by a certified law enforcement officer (the VSF 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) have access, during normal business hours, to the vehicle for the purposes of insurance and/or repair estimates. sec.18.91. Facility Requirements. (a) Enclosure and security of stored vehicles. (1) Fencing. If not enclosed by a five foot high fence on or before September 1, 1985, all vehicle storage facilities shall be completely enclosed by a fence at least six feet high with a gate which is locked at all times when the licensee or an agent or employee is not at the storage lot. (2) Security of vehicles. (A) No vehicle may be stored or kept at any licensed VSF unless it is kept inside the fenced or enclosed area at all times. For purposes of this subsection, the term "enclosed" shall mean inside a building. (B) 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) Surface. All motor vehicle storage facilities 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. (c) Illumination. All motor vehicle storage facilities shall maintain illumination levels adequate for nighttime release of vehicles. The term "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 least a 250 watt element for each 1/4 acre of storage area. (d) Signs. (1) Facility information. All motor vehicle storage facilities shall have a clearly visible and readable sign at its main entrance. Such sign shall contain the following information: (A) the name of the storage lot; (B) street address; (C) the telephone number for the owner to contact in order to obtain release of the vehicle; (D) the facility's hours, within one hour of which vehicles will be released to vehicle owners; and (E) the storage lot's state license number preceded by the phrase "VSF License Number." (2) Per diem charges. All motor vehicle storage facilities 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. (e) Unregistered tow trucks. No VSF shall permit any tow truck which is not registered under Texas Civil Statutes, Article 6675c, to enter onto the grounds of the facility. (f) Other statutes and administrative rules; city ordinances. Each VSF must meet the requirements of all other applicable statutes and administrative rules and all applicable city ordinances in addition to meeting the requirements of these rules. Some of the other laws which may affect the operation of a VSF include: (1) Transportation Code, Chapters 391 and 392; (2) Texas Civil Statutes, Article 6675c; (3) Property Code, sec.70.003 and sec.70.004; and (4) any city ordinances relating to zoning. sec.18.92. Technical Requirements. (a) Release of vehicles. (1) Facilities which accept vehicles 24 hours per day. All motor vehicle storage facilities shall have vehicles available for release 24 hours a day within one hour's notice if it accepts vehicles 24 hours a day. (2) Facilities which do not accept vehicles 24 hours per day. If a VSF does not accept vehicles 24 hours a day, such facility must have vehicles available for release within one hour between the hours of 8:00 a.m. and Noon Monday- Saturday and from 8:00 a.m. to 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 Noon, and refusal to release after that time, even with notice after 11:00 p.m., is not a violation of this section. (b) Publicly listed telephone number. All motor vehicle storage facilities 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 department 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. (c) Inspection of stored vehicles. When the licensee, the licensee's agent, or the licensee's employee accepts a vehicle towed without the vehicle owner's consent, such person 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 slip are incorrect, the VSF shall note on its records the correct number and notify every previously advised person within 48 hours of noting the correct information. (d) Removal of parts; dismantling or demolishing of stored vehicles. Except as stated to the contrary in this section, no parts shall be removed from any vehicle, and no vehicle shall be dismantled or demolished within the storage area of a licensed VSF. 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. (e) Use of stored vehicles by facility owner, operator, or employees. No stored vehicle may be used by the vehicle storage lot owner, operator, or its employee(s) for personal or business use. (f) Reasonable storage efforts. A VSF operator shall make reasonable efforts necessary for the storage of a vehicle, such as locking doors, rolling up windows, and closing doors, hatchbacks, or convertible tops. Such actions are included in the storage fee as set forth in sec.18.85 of this title (relating to Payment of Fees). (g) Preservation of stored vehicles. (1) Minimum requirements. A VSF operator will be entitled to charge a fee for preservation if, in addition to the requirements set out in this subsection, the VSF operator, at a minimum: (A) conducts a written inventory of any unsecured personal property contained in the vehicle; (B) removes and stores all such property for which safekeeping is necessary, and specifies such removal and storage on the written inventory; and (C) obtains motor vehicle registration information for the vehicle from the department. (2) Broken or inoperative doors or windows. 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. (3) Preservation fee. If the VSF 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. (h) Repair or alteration of stored vehicles. 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. (i) Vehicle transfers. When a motor vehicle has been delivered to a VSF, 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 VSF capacity problems, neither the registered vehicle owner nor recorded lienholder(s) may be assessed an additional charge. The VSF must send notice in accordance with sec.18.87 of this title (relating to Notifications Regarding Towed Vehicles), except that the notice must be sent no less than 72 hours prior to moving the vehicle. If a vehicle is moved from a VSF, the licensee shall: (1) charge only those fees otherwise permitted by s18.85 of this title (relating to Payment of Fees) 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: (A) a notarized power-of-attorney; (B) a department-approved affidavit of right of possession; (C) a court order; (D) a certificate of title; (E) a tax collector's receipt and a vehicle registration renewal card accompanied by a conforming identification; (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 department's Vehicle Title and Registration Division, 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 VSF 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.18.93. Storage Fees/Charges.
            The fees outlined in this section have precedence over any conflicting municipal ordinance or charter provision. (1) Notification fee. A VSF operator may not charge an owner more than $25 for notification under sec.18.85 of this title (relating to Payment of Fees). (2) Daily storage fee. A VSF 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 VSF less than 12 hours. For the purposes of this paragraph, a day is considered to begin and end at midnight. (3) Preservation fee. A VSF operator is entitled to charge an owner $10 for preservation of a stored motor vehicle, if such preservation is performed in accordance with sec.18.92(g) of this title (relating to Technical Requirements). (4) Additional fees. A VSF operator may not charge any additional fees that are similar to notification, preservation, or administrative fees. sec.18.94. Sanctions. (a) Administrative sanctions. (1) If a licensee or a partner of a licensee, a principal in the licensee's business, or an employee of the licensee, with the knowledge of the licensee, violates the Act, this subchapter, or an order of the department, the department may sanction the licensee in accordance with this section. (2) If an authorized investigator of the department determines that a violation has occurred, the investigator shall issue a preliminary report to the manager, stating the facts on which the investigator based his or her conclusion. (3) The manager will determine whether sanctions should be imposed. Sanctions may include: (A) a written warning to the licensee specifying the violation; (B) denial, revocation, or suspension of a license; (C) placement of the person on probation if the person's license has been suspended (if a suspension is probated, the department may require the person to make regular reports to the department or its designee on matters that are the basis of the probation or limit practice to the areas licensed by the department under this Act); or (D) an administrative penalty not to exceed $1,000 for each violation. (4) If sanctions are imposed, the type of sanction will be based on the following factors: (A) the seriousness of the violation; (B) the history of previous violations; (C) the amount necessary to deter future violations; (D) efforts made to correct the violation; and (E) any other matters that justice may require. (5) The manager shall give written notice of the violation and the proposed sanction to the person charged. The notice shall include: (A) a brief summary of the charges; (B) a statement of the proposed sanction and any accompanying conditions; and (C) a statement of the right of the person charged to a hearing concerning the violation, the sanction, and the terms of the sanction, or the amount of the penalty. (6) Not later than the 15th day after the date on which the notice is received, the person charged may accept the manager's proposal, including all accompanying conditions, or make a written request for a hearing. (7) If the person charged with the violation accepts the manager's proposal, the director will issue an order approving the proposal and ordering that the proposed sanction and accompanying conditions be imposed upon that person. If another sanction is agreed upon between the manager and the person charged, the director may: (A) issue an order approving the proposal; (B) refuse to issue an order approving the proposal, and require an administrative hearing; or (C) direct that further negotiations be made with the person charged. (8) If the person charged fails to respond in a timely manner to the notice, or if the person requests a hearing, the department will initiate a contested case in accordance with sec.sec.1.21-1.63 of this title (relating to Contested Case Procedure). (b) Injunctive relief and civil penalty. (1) If it appears that a person is in violation of, or is threatening to violate, the Act, this subchapter, or an order of the department, the attorney general at the department's request may institute an action for injunctive relief to restrain the person from continuing the violation, or threatening the violation, and for civil penalties not to exceed $1,000 for each violation. (2) If the department or the attorney general prevails in an action under this section, the department or the attorney general is entitled to recover reasonable attorney's fees and court costs. (c) Revocation or suspension due to criminal conviction. (1) The department may revoke, suspend, or deny a license issued under the Act, or place a person on probation whose license has been suspended, if the department 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: (A) a felony; or (B) a misdemeanor that is punishable by confinement or by a fine exceeding $500 and directly relates to a duty or responsibility of a VSF operator. (2) The department may also, after hearing, suspend, revoke, or deny a license because of a person's felony probation revocation, parole revocation, or revocation of mandatory supervision. (3) In determining whether a criminal conviction directly relates to the operation of a VSF, the department shall consider: (A) the nature and seriousness of the crime; and (B) the extent to which a license might offer an opportunity to engage in further criminal activity of the same type as that in which the person was previously involved; and (C) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of operating a VSF. (4) In determining the present fitness of a person who has been convicted of a crime, the department shall also consider: (A) the extent and nature of the person's past criminal activity; (B) whether or not the person was a minor at the time of the commission of the crime; (C) the amount of time that has elapsed since the person's last criminal activity; (D) the conduct and work activity of the person prior to and following the criminal activity; (E) evidence of the person's rehabilitation or rehabilitative effort while incarcerated or following release; and (F) 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. (5) It shall be the responsibility of the applicant, to the extent possible, to secure and provide the department with the recommendations of the prosecution, law enforcement, and correctional authorities. (6) An applicant who has been convicted of a criminal activity shall furnish proof, in such form as may be required by the department, that he or she 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. (d) Failure to maintain insurance. (1) Notice. Upon receipt of notice of termination of insurance coverage under sec.18.86(c) of this title (relating to Insurance Requirements), the department will provide written notice of proposed suspension and revocation as required by subsection (a)(5) of this section. (2) Sanction. (A) If the licensee does not file proof of insurance as required by sec.18.86 of this title (relating to Insurance Requirements) prior to the termination of its existing insurance, the division will suspend the licensee's license for ninety days. The division will revoke the license on the ninety-first day unless the licensee provides proof of insurance in compliance with sec.18.86 of this title (relating to Insurance Requirements) before the effective date of revocation. If proof of insurance is timely provided, the department will reinstate the license. (B) If the suspended licensee does not provide proof of insurance under subparagraph (A) of this paragraph, the licensee must file an application as required by sec.18.83 of this title (relating to Application for Original Vehicle Storage Facility). (e) Suspension due to failure to pay court ordered child support. (1) On receipt of a final order suspending license, issued under Family Code, Section 232.008, the department will suspend the license of an operator of a vehicle storage facility. (2) The department will charge an administrative fee of $5. 00 to a licensee who is the subject of an order suspending license. Issued in Austin, Texas, on August 31, 1995. TRD-9511071 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Chapter 28. Oversize and Overweight Vehicles and Loads Subchapter A. General Provisions 43 TAC sec.28.2 The Texas Department of Transportation adopts on an emergency basis an amendment to sec.28.2, concerning definitions for Chapter 28, Oversize and Overweight Vehicles and Loads. Amended sec.28.2 defines words and terms used in Chapter 28 including central permit office, complete identification number, concrete pump truck, director, foreign commercial vehicle annual registration, motor carrier, motor carrier registration, single state registration, vehicle identification number, and several forms for the filing of surety bonds. Adoption on an emergency basis is necessary to comply with legislation enacted by the 74th Legislature, 1995. House Bill 785, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes 6701-1/2, by increasing the fee for manufactured housing permits from $15 to $20, and also requiring the department to collect additional information in the application and send essential information to appraisal districts. House Bill 1547, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6701d- 12, by allowing a concrete pump truck to exceed the legal axle and gross weight limits with the filing of a surety bond. House Bill 2584, 74th Legislature, 1995, effective September 1, 1995, added Texas Civil Statutes, Article 6701d- 19c, by allowing vehicles transporting recyclable materials to exceed the legal axle and gross weight limits with the filing of a surety bond. Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6701a, by eliminating the requirement for a Superheavy or Oversize Permit Bond for motor carriers registered with the department under the authority of Texas Civil Statutes, Article 6675c or 6675c-1. Senate Bill 981, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6675a-6c, by allowing for the issuance of an annual registration permit to foreign commercial vehicles if proof of financial responsibility is shown. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of over axle or over gross weight loads, thereby protecting the public safety of the traveling motorist, and ensuring that those in the motor carrier industry and those associated with this industry are not seriously adversely affected economically. The amendment is adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, sec.sec.502.353, 623.093, 623.096, 623.071, 623.011, and 622.011, as amended, and Texas Civil Statutes, Article 6701d-19c which authorize the department to develop policy and procedures for the issuance of permits for overweight vehicles. sec.28.2. Definitions. The following words and terms, when used in this chapter, will have the following meanings, unless the context clearly indicates otherwise. Central permit office (CPO)-The department office, within the Motor Carrier Division,
              located in the City of Austin that issues all permits. Complete identification number-A unique and distinguishing number assigned to equipment or a commodity for purposes of identification. Concrete pump truck-A self propelled vehicle designed to pump the concrete product from a ready mix truck to the point of construction. Director-The Executive Director of the Texas Department of Transportation. Foreign commercial vehicle annual registration-An annual registration permit issued by the department to foreign commercial vehicles under authority of Texas Civil Statutes, Article 6675a-6c. Form 1382-A form titled "Blanket Surety Bond For The Operation Of Vehicles Used Exclusively For The Transportation Of Ready-Mix Concrete or Concrete Pump Trucks
                ." Form 1382-A-A form titled "Certification Of Surety Bond For The Transportation of Ready-Mix Concrete or Concrete Pump Trucks
                  . " Form 1383-A form titled "Amendment To Blanket Surety Bond For Ready-Mix Concrete Vehicles or Concrete Pump Trucks
                    ." Form 1575-A form titled "Blanket Surety Bond For The Operation Of Vehicles Used Exclusively For The Transportation Of Solid Waste or Recyclable Materials
                      ." Form 1576-A form titled "Certification Of Surety Bond For The Transportation Of Solid Waste or Recyclable Materials
                        ." Form 1577-A form titled "Amendment To Blanket Surety Bond For Solid Waste Vehicles or Recyclable Materials
                          ." Motor carrier-An individual, association, corporation, or other legal entity that controls, operates, or directs the operation of one or more vehicles that transport persons or cargo over a road or highway in this state. Motor carrier registration (MCR)-The registration issued by the department under authority of Texas Civil Statutes, Article 6675c, to motor carriers moving intrastate. Recyclable materials -Materials, goods, or products that consist of recyclable material or materials derived from postconsumer waste, industrial waste, or hazardous waste which may be used in place of a raw or virgin material in manufacturing a new product. Single state registration (SSR)-Interstate registration authority issued to motor carriers under authority of 49 United States Code, sec.11506. Vehicle identification number-A unique and distinguishing number assigned to a vehicle by the manufacturer for the purpose of identification. Issued in Austin, Texas, on August 31, 1995. TRD-9511084 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 29, 1995 For further information, please call: (512) 463-8620 Subchapter B. General Permits 43 TAC sec.sec.28.10, 28.11, 28.14, 28.17 The Texas Department of Transportation adopts on an emergency basis amendments to sec.sec.28.10, 28.11, 28.14, and new sec.28.17, concerning the issuance of permits for the movement of oversize and overweight vehicles and loads. Section 28.10, concerning purpose, is amended by adding references to allow concrete pump trucks and vehicles transporting recyclable materials to exceed the legal axle and gross weight limits with the filing of a surety bond. Section 28.11, permit issuance requirements and procedures, is amended by adding foreign commercial vehicles registered under annual registration as an acceptable form of registration, and by adding references to surety bonds. Section 28.14, manufactured housing and industrialized housing and building permits, is amended by changing the permit fee from $15 to $20, amending acceptable forms of moving authority, and adding additional information required from an applicant. New sec.28.17, multi-state permitting agreements, allows the executive director of the department to enter into multi-state permitting agreements with other states. Adoption on an emergency basis is necessary to comply with legislation enacted by the 74th Legislature, 1995. House Bill 785, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes 6701-1/2, by increasing the fee for manufactured housing permits from $15 to $20, and also requiring the department to collect additional information in the application and send essential information to appraisal districts. House Bill 1547, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6701d- 12, by allowing a concrete pump truck to exceed the legal axle and gross weight limits with the filing of a surety bond. House Bill 2584, 74th Legislature, 1995, effective September 1, 1995, added Texas Civil Statutes, Article 6701d- 19c, by allowing vehicles transporting recyclable materials to exceed the legal axle and gross weight limits with the filing of a surety bond. Senate Bill 3, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6701a, by eliminating the requirement for a Superheavy or Oversize Permit Bond for motor carriers registered with the department under the authority of Texas Civil Statutes, Article 6675c or 6675c-1. Senate Bill 981, 74th Legislature, 1995, effective September 1, 1995, amended Texas Civil Statutes, Article 6675a-6c, by allowing for the issuance of an annual registration permit to foreign commercial vehicles. House Bill 1896, 73rd Legislature, 1993, added Texas Civil Statutes, Article 6675a-6f, by allowing the executive director to enter into multi-state permitting agreements with other states which would allow each state to issue permits for the other. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of over axle or over gross weight loads, thereby protecting the public safety of the traveling motorist, and ensuring that those in the motor carrier industry and those associated with this industry are not seriously adversely affected economically. The amendments and new section are adopted under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically, Transportation Code, sec.sec.502.353, 623.093, 623.096, 623.071, 623.011, and 622.011, as amended, and Texas Civil Statutes, Article 6701d-19c, which authorize the department to develop policy and procedures for the issuance of permits for overweight vehicles. sec.28.10. Purpose. (a) In accordance with Texas Civil Statutes, Articles 6701a, 6701 1/2, 6701a- 2, 6701d-11, sec.3, 6701d-12, 6701d-14, [and] 6701d-19a, and 6701d-19c, the department may: (1) (No change.) (2) certify surety bonds required for the operation of overweight ready-mix concrete vehicles and concrete pump trucks,
                            [and] vehicles transporting overweight loads of solid waste, and vehicles transporting recyclable materials
                              that exceed maximum legal weight limits as set forth by Texas Civil Statutes, Article 6701d-11, sec.5. (b) (No change.) sec.28.11. Permit Issuance Requirements and Procedures. (a)-(e) (No change.) (f) General provisions. (1)-(2) (No change.) (3) Registration. A vehicle registered with a permit plate will not be permitted under Texas Civil Statutes, Article 6701a. A permitted vehicle operating under Texas Civil Statutes, Article 6701a, must be registered with one of the following types of vehicle registration: (A) (No change.) (B) Texas 72/144-hour temporary registration; [or] (C) current out-of-state license plates that are apportioned for travel in Texas; or (D) foreign commercial vehicles registered under annual registration
                                . (4)-(7) (No change.) (g) Surety bonds. (1) General. The following conditions apply to surety bonds specified in Texas Civil Statutes, Article 6701a, Article 6701d-12, [and] Article 6701d-19a, and Article 6701d-19c
                                  . (A) -(B) (No change.) (C) The owner of a vehicle bonded under Texas Civil Statutes, Articles 6701a, 6701d-12, [or] 6701d-19a, or 6701d-19c,
                                    that damages the state highway system as a result of the permitted vehicle's movement will be notified by certified mail of the amount of damage and will be given 30 days to submit payment for such damage. Failure to make payment within 30 days will result in the department's placing the claim with the attorney general for collection. (D) (No change.) (2) Permit surety bonds. (A)-(F) (No change.) (G) The surety bond requirement does not apply to a vehicle or equipment operated by a motor carrier registered with the department under Texas Civil Statutes, Articles 6675c , or 6675c-1. (3) Ready-mix concrete and concrete pump trucks,
                                      or solid waste vehicle, and recyclable materials
                                        surety bonds. (A) A surety bond is required for a vehicle operated under provisions of Texas Civil Statutes, Article 6701d-12 ,
                                          [or] Article 6701d-19a, or 6701d- 19c
                                            . The surety bond must: (i)-(iii) (No change.) (B)-(C) (No change.) (D) The original
                                              Form 1382-A or Form 1576 must be carried in the cab of the bonded vehicle. (E)-(I) (No change.) sec.28.14. Manufactured Housing, and Industrialized Housing and Building Permits. (a) General information. (1) (No change.) (2) Pursuant to Texas Civil Statutes, Article 6701-1/2, a permit may be issued to persons registered as manufacturers , installers,
                                                or retailers with the Texas Department of Housing and Community Affairs,
                                                  [Commissioner of Licensing and Regulation,] or motor carriers registered with the department under Texas Civil Statutes, Article 6675c
                                                    [certified for the transportation of a manufactured home by either the Railroad Commission of Texas or the Interstate Commerce Commission]. (3) The department may issue a permit to the owner of a manufactured home provided that the ownership of the manufactured home and of the towing vehicle is shown to be the same person by the title to the home and to the towing vehicle, or that the owner has [duly filed] a lease [pursuant to Texas Civil Statutes, Article 6701c-1], showing the owner of the manufactured home to be the lessee of the towing vehicle [; and to installers registered with the Commissioner of Licensing and Regulation for the transportation of a manufactured home over routes between points when such transportation would be excluded from regulation under Texas Civil Statutes, Article 911b]. (4)-(5) (No change.) (b) Application for permit. (1) The applicant must complete the application, and shall include the manufactured home's HUD label number, Texas seal number, or the complete identification
                                                      [serial] number of the manufactured home, the name of the owner of the home, the location from which the home is being moved, the location to which the home is being delivered, and the overall width, height, and length of the home and the towing vehicle in combination
                                                        [unit being moved]. (2)-(4) (No change.) (c) (No change.) (d) Payment of permit fee. (1) The cost of the permit is $20
                                                          [$15]. (2)-(4) (No change.) (e)-(f) (No change.) (g) Escort requirements. (1) A manufactured home exceeding 12 feet in width must have a rotating amber beacon of not less than eight inches in diameter mounted somewhere on the roof at the rear of the manufactured home, or two five-inch flashing amber lights may be mounted approximately six feet from ground level at the rear corners of the manufactured home. The
                                                            [and the] towing vehicle must have one rotating amber beacon of not less than eight inches in diameter mounted on top of the cab. These beacons or flashing lights
                                                              must be operational and luminiferous
                                                                during any permitted move over the highways, roads, and streets of this state. (2) -(5) (No change.) sec.28.17. Multi-state Permitting Agreements. (a) Agreements with other jurisdictions. In accordance with Texas Transportation Code sec.621. 003, the director may enter into an agreement with the proper authority of another state that authorizes that authority to issue a permit on behalf of the department and authorizes the department to issue a permit on behalf of the proper authority of the other state. The agreement must be reviewed by the department's Office of General Counsel, before signing by the director. (b) Permit fees. (1) Permit fees collected by the department for another state under an agreement with another state shall be remitted to the state treasurer for deposit to the credit of an account in the general revenue fund to be known as the permit distributive account. (2) Fees for a permit issued by the department under authority of an agreement on behalf of another state will be assessed as outlined by the agreement. (3) Another state issuing a permit on behalf of this state shall collect fees for this state based on Texas laws and administrative rules. (c) Validity of permit issued by proper authority in another state. (1) A permit issued by the proper authority in another state under an agreement entered into by the director and that authority has the same validity in this state as a permit issued by the department. (2) The holder of a permit issued by the proper authority in another state is subject to all applicable laws of this state and all applicable rules of the department. Issued in Austin, Texas, on August 31, 1995. TRD-9511086 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620 Chapter C. Permits for Over Axle and Over Gross Weight Tolerances 43 TAC sec.28.30 The Texas Department of Transportation adopts on an emergency basis an amendment to sec.28.30, concerning permits for over axle and over gross weight tolerances. Section 28.30 is amended to adopt a new statutory fee schedule and an administrative fee of $5.00, and provide for the issuance of a windshield sticker and a credit to a vehicle if the vehicle becomes permanently disabled. House Bill 1547, 74th Legislature, 1995, effective September 1, 1995: increases the fee for over axle, over gross weight tolerance permits based on a sliding scale of the number of counties indicated on the application; authorizes the department to issue a windshield sticker; requires the department to send counties information pertaining to the permit within 14 days of issuance; and authorizes the department to issue a credit to vehicles which become permanently disabled. Adoption on an emergency basis is necessary to implement this legislation in a manner that will serve the economic needs and welfare of the state as a whole so that the economy is not seriously adversely affected, and to ensure that permits for motor carriers transporting over axle or over gross weight loads are issued in compliance with the legislation. Further, adoption on an emergency basis is necessary to continue the proper administration of the laws concerning the regulation of over axle or over gross weight loads, thereby protecting the public safety of the traveling motorist, and ensuring that those in the motor carrier industry and those associated with this industry are not seriously adversely affected economically. The amendment is adopted on an emergency basis under Transportation Code, sec.201.101, which provides the Texas Transportation Commission with the authority to establish rules for the conduct of the work of the Texas Department of Transportation, and more specifically Texas Transportation Code, sec.623.011, which authorizes the department to issue permits for over axle and over gross weight tolerances to commercial motor vehicles, truck tractor, trailers, semitrailers, or a combination of those vehicles. sec.28.30. Permit for Over Axle and Over Gross Weight Tolerances. (a)-(c) (No change.) (d) Security. (1) Before a permit may be issued under this section, an applicant, other than an applicant who intends to operate a vehicle that is loaded with timber or pulp wood, wood chips, cotton, or agricultural products in their natural state, must have on file with the department one of the following forms of security in the amount of $15,000, conditioned that payment will be made to the department for any damages to the state highway system and to any county for damages to a road or bridge of such county caused by the operation of any vehicle for which a permit is issued under this section and which has an axle weight or gross weight that exceeds the weights authorized in Texas Civil Statutes, Article 6701d-11, sec.5 and sec.5 1/2: (A) (No change.) (2)-(3) (No change.) (e) Application for permit. (1) (No change.) (2) The application shall be in a
                                                                  [the] form prescribed by the CPO and at a minimum will require
                                                                    [shall contain] the following: (A)-(B) (No change.) (C) vehicle information; [and] (D) an indication as to whether the
                                                                      [description of] commodities to be transported will be agricultural or non-agricultural; and (E) a list of counties in which the vehicle will operate. (3) The application shall be accompanied by the following documents or information: (A) (No change. ) [(B) a list of counties in which the vehicle will be operated;] (B)
                                                                        [(C)] a base
                                                                          [nonrefundable] fee of $75 and an administration fee of $5.00
                                                                            [in the form of a cashier's check or money order made payable to the State Highway Fund]; and (C)
                                                                              [(D)] an original bond or letter of credit as required in subsection (d) of this section, unless previously filed by the applicant. (4) An applicant shall remit the total fees, which are nonrefundable, in the form of a check, cashier's check, or money order made payable to the State Highway Fund. In addition to the fees listed in paragraph (3) of this subsection, the applicant must also include an additional fee based on the following schedule:
                                                                                Figure 1. 43 TAC sec.28.11(f)(4)(f) (f) Issuance of permit and windshield sticker
                                                                                  . (1) A permit and a windshield sticker
                                                                                    will be issued on the approval of the application and each
                                                                                      will be mailed to the applicant at the address contained in the application. (2) The permit shall be carried in the vehicle for which the permit is issued
                                                                                        at all times. (3) The windshield sticker shall be affixed to the inside of the windshield of the vehicle within six inches above the vehicle's inspection sticker in a manner that will not obstruct the vision of the driver. Any attempt to remove the sticker from the windshield will render the sticker void, and will require a new permit and sticker. The windshield sticker must be removed from the vehicle upon expiration of the permit. (4)
                                                                                          [(3)] Within 14 days of issuance
                                                                                            [receipt] of the permit, the department
                                                                                              [applicant] shall notify [by certified or registered mail, return receipt requested,] the county clerk of each county indicated on the application,
                                                                                                [if the vehicle will be operated on any county road in that county,] and such notification shall contain or be accompanied by the following minimum information: (A) the name and address of the person for whom a permit is issued
                                                                                                  [a copy of the application as required in subsection (e) of this section]; and (B) the vehicle identification number, license plate number and state of the vehicle, and the permit number.
                                                                                                    [a copy of the bond or letter of credit as required in subsection (d) of this section;] [(C) a copy of the registration receipt for the vehicle; and [(D) a copy of the permit issued under this subsection.] (g) Issuance of a credit. Upon written application on a form prescribed by the CPO, a prorated credit for the remaining time on the permit may be issued for a vehicle that is destroyed or otherwise becomes permanently inoperable, to an extent that it will no longer be utilized. The date for computing a credit will be based on the date of receipt of the credit request. The fee for a credit will be $25, and will be issued on condition that the applicant provides to the department: (1) the original permit; or (2) if the original permit no longer exists, written evidence of the destruction or permanent incapacity from the insurance carrier of the vehicle. [(g) Transfer of credit. Upon written application on a form prescribed by the CPO, a permit may be transferred to another eleigible vehicle for the remaining permit period without additional charges on condition that: [(1) the vehicle for which a permit has been issued will be out of service for more than 30 days for mechanical failure; or [(2) such vehicle is sold or its lease has terminated.] (h) Use of credit. A credit issued under subsection (g) of this section may be used only towards the payment of permit fees under this section. (i)
                                                                                                      [(h)] Exceptions. A vehicle carrying timber, wood chips, wood pulp, cotton, or other agricultural products in their natural state, may be allowed to exceed the maximum allowable axle weight by 12% without a permit; however, if such vehicle exceeds the maximum allowable gross weight by an amount of up to 5.0%, a permit issued in accordance with this section will be required. (j)
                                                                                                        [(i)] Semi-trailer registration. Texas Civil Statutes, Article 6675-6 1/2, provides that the owner of a semi-trailer registered with either a Texas token trailer license plate or a Texas apportioned trailer license plate operated in combination with a permitted vehicle, shall pay a $15 fee to the county where the semi-trailer is registered, and the receipt for the additional registration shall be attached to the annual permit. (k)
                                                                                                          [(j)] Lapse or termination of permit. A permit shall lapse or terminate and the windshield sticker must be removed from the vehicle
                                                                                                            : (1) when the lease of the vehicle expires
                                                                                                              [if a new permit application is not submitted to the CPO a minimum of 30 days prior to the original expiration date]; (2) on the sale of the vehicle for which the permit was issued; (3) on the sale, takeover, or dissolution of the firm, partnership, or corporation to which a permit was issued; or (4) if the applicant does not replenish the letter of credit or bond as required in subsection (d) of this section. (l)
                                                                                                                [(k)] Void permit. A permit is void when an applicant; (1) gives false or incorrect information; (2) does not comply with the restrictions or conditions stated in the permit; [or] (3) changes or alters the information in the applicant's copy of the permit; or (4) operates in a county not listed on the permit. (m)
                                                                                                                  [(l)] Movement with void permit. A permittee may not operate a permitted vehicle with a void permit; a new permit must be obtained. Issued in Austin, Texas, on August 31, 1995. TRD-9511087 Robert E. Shaddock General Counsel Texas Department of Transportation Effective date: September 1, 1995 Expiration date: December 30, 1995 For further information, please call: (512) 463-8620