Part 1.
TEXAS DEPARTMENT OF TRANSPORTATION
Chapter 18.
MOTOR CARRIERS
The Texas Department of Transportation (department) proposes amendments
to §§18.2, 18.13, 18.14, 18.16, and 18.32 concerning motor carrier
definitions, registration, records, and inspections.
EXPLANATION OF PROPOSED AMENDMENTS
The proposed amendments are necessary to implement the provisions of House
Bill 2702 of the 79th Legislature, Regular Session, 2005. House Bill 2702,
Article 6, amended Transportation Code, §643.051, Registration Requirements,
to require all household good movers to register as motor carriers regardless
of the weight of the vehicles they operate. The bill also deleted the alternative
registration requirements for household goods carriers under Transportation
Code, §643.153, Motor Carriers Transporting Household Goods. All household
goods carriers must now register under the general motor carrier registration
regardless of the size of vehicles they operate. The statutory changes eliminated
the need for "Type A" and "Type B" household goods carrier classifications.
These amendments were initially proposed November 17, 2005, along with
other rules regarding motor carrier registration issues. These amendments
were removed from the rules as adopted during the April 27, 2006, Texas Transportation
Commission (commission) meeting to allow the department time to further study
the issue of minimum vehicle liability insurance requirements for household
goods carriers who operate vehicles weighing 26,000 pounds or less. However,
due to a clerical error the language filed with the
Texas Register
on April 28, 2006, for §18.16(a) Figure 1 was not
amended to reflect the language adopted by the commission. The language in
Figure 1, regarding the minimum liability insurance level for household goods
carriers under 26,000 pounds was not approved by the commission and is not
being enforced by the department. The language now being proposed for Figure
1 is the same language that is currently published in 43 TAC §18.16(a).
To study the minimum liability insurance issues, the department has contacted
other states, gathered insurance information, reviewed traffic accident studies,
contacted the Texas Department of Public Safety and the Department of Insurance
regarding vehicle loss records, contacted the Federal Motor Carrier Safety
Administration concerning crash data, collected data from the National Institute
for Occupational Safety and Health and Insurance Institute for Highway Safety,
and conducted a public hearing. The information gathered from these resources
was used to draft these proposed amendments.
Throughout the proposed rules, all references to "Type A" and "Type B"
household goods carriers are deleted.
The definition for "Type B" household goods carrier has been deleted from §18.2
as it is no longer necessary under Transportation Code, Chapter 643.
Amended language in §18.13(i) deletes the reference to the alternative
registration process for Type B carriers. These alternatives are no longer
authorized by the statute due to the changes in Transportation Code, §643.051
and §643.153.
Section 18.16(a), relating to automobile liability insurance requirements,
is amended to establish a minimum liability insurance requirement for vehicles
weighing 26,000 pounds or less that are operated by household goods carriers
as required by the statutory changes. Transportation Code, §643.101 requires
that a motor carrier required to register under Subchapter B shall maintain
liability insurance in an amount set by the department for each vehicle the
carrier operates requiring registration. Pursuant to Transportation Code, §643.101(b),
the department is to consider the class and size of the vehicle and the persons
or cargo transported in setting the insurance requirement. The rules set the
minimum level of liability insurance for household goods carriers with gross
weight of 26,000 pounds or less at $300,000 combined single limit (CSL). This
figure was selected based on the research conducted by the Motor Carrier Division,
which is summarized below.
In 1995 the department required motor carriers to maintain a minimum liability
insurance of $500,000 CSL for commercial vehicles over 26,000 pounds operated
in Texas. Household goods carriers operating vehicles 26,000 pounds or less
were not required to register as motor carriers under the same provisions
and therefore, the department was not required to establish a minimum insurance
requirement. These types of household goods carriers were required to maintain
the minimum liability insurance levels required of all vehicles under Transportation
Code, §601.072. Transportation Code, §601.007 exempts vehicles that
are required to register under Transportation Code, §643.051 from the
liability requirements of Transportation Code, Chapter 601.
Pursuant to Transportation Code, Chapter 601, the state mandated minimum
insurance coverage for vehicles that are not required to register under the
motor carrier provisions is $20,000 for bodily injury or death to one person,
$40,000 for bodily injury or death to two or more persons, and $15,000 for
property damage. This minimum level of insurance is inadequate for a regulated
commercial activity.
A look at 16 states revealed that only Florida has lower requirements than
the current liability insurance limit for household goods carriers weighing
26,000 pounds or less. Several states have set their minimum limits by using
the existing federal requirements. The federal regulations found at 49 CFR §387.303
set the minimum vehicle liability insurance amounts for motor carriers operating
in interstate commerce by weight of the vehicle. The federal regulations require
vehicles weighing under 10,000 pounds to have a minimum of $300,000 CSL. Vehicles
weighing over 10,000 pounds have a minimum federal limit of $750,000 CSL.
The department’s proposed rule that requires household goods carriers
operating vehicles weighing 26,000 pounds or less, intrastate only, to carry
a $300,000 CSL liability insurance policy complies with the state statute
which mandates that the minimum liability levels not exceed the federal requirements.
Large amounts of crash data are available, but the department was unable
to find any accident rate studies specific to household goods carriers; therefore,
very limited financial loss information is available. National statistics
between 1975-2004 support that vehicles weighing 26,000 pounds or less incur
as high an incident rate as do the larger trucks. The Insurance Institute
for Highway Safety shows that while the death rate for occupants in passenger
cars has declined 12% in the last 30 years the death rate for occupants in
light trucks has increased 57%. This indicates that light trucks are involved
in serious accidents that result in significant loss to the injured party.
The existing minimum liability insurance requirements of Transportation Code, §601.072,
are not sufficient to cover the costs of the at-fault party involved in a
serious accident.
As stated, the language setting the minimum liability insurance at $300,000
was incorrectly included in the adoption filed April 28, 2006. This amendment
proposes the same language and provides the justification for how the minimum
liability insurance level was selected.
Proposed amendments to §18.32(c) delete information regarding where
and how Type B household goods carriers must carry registration certificates.
FISCAL NOTE
James Bass, Chief Financial Officer, has determined that for each year
of the first five years the amendments as proposed are in effect, there will
be minimal fiscal implications for state or local governments as a result
of enforcing or administering the amendments. There may be a moderate economic
cost for persons required to comply with the sections as proposed. The fiscal
impact is due to the establishment of a new minimum liability insurance requirement
as required by recently enacted legislation.
The possible economic cost to persons who are required to comply with the
rule as proposed will be as follows. It is anticipated that, during the next
five fiscal years, annual liability insurance premiums will be approximately
39% higher than the current rates. This figure is based on estimates the department
received from insurance agents questioned during the drafting of the proposed
amendments. Due to the many factors that affect insurance premiums it is difficult
to give a firm premium figure. Some of the factors used to set the insurance
premium include: location, type of vehicle, loss history, financial strength,
longevity of the business, and safety procedures. Each of these factors can
have a substantial impact to either decrease or increase the actual premium,
therefore, the department's estimate of 39% will not necessarily translate
to the cost of the additional insurance for the entities required to comply
with these provisions. In addition, it is unknown if these entities currently
carry only the minimum liability insurance required. The department received
information during the public hearing that many household goods carriers maintained
liability insurance in amounts above that required by rule.
Carol Davis, Director, Motor Carrier Division, has certified that there
will be no impact on local economies or overall employment as a result of
enforcing or administering the amendments.
PUBLIC BENEFIT
Ms. Davis has also determined that for each of the first five years the
sections are in effect, the public benefit anticipated as a result of enforcing
or administering the amendments will be the implementation of the legislation
referenced in this preamble and increased protection to the traveling public.
The costs involved for the traveling public who are involved in vehicle accidents
include medical expenses, property damage, and loss of life. Additional insurance
coverage is needed to offset the potential economic loss to the general public
involved in an accident with household goods carriers.
There will be a moderate economic effect on small businesses. The department
has reviewed the requirements of Government Code, §2006.002 and has determined
that it is not feasible, considering the purpose of the statute under which
these rules are proposed, to reduce the effect on small and micro-businesses.
Transportation Code, §643.051 was amended to require all household goods
carriers comply with the same motor carrier registration requirements. To
provide an alternative reporting system, establish a separate compliance process,
or exempt small and micro businesses from the requirements would be in effect
returning to the process in place prior to the statutory change.
The insurance estimates obtained by the department show a $367 increase
in the annual liability premium per vehicle as a result of raising the minimum
requirement from $55,000 CSL to $300,000 CSL. Based on this figure the department
has determined that a household goods carrier operating three vehicles weighing
26,000 pounds or less will have an approximately $1,100 annual increase in
liability insurance premiums. A household goods carrier operating seven vehicles
weighing 26,000 pounds or less will have an approximately $2,600 annual increase
and a carrier with thirty vehicles will have an approximately $11,010 annual
increase in premiums.
Pursuant to Government Code, §2006.002(c)(2), the department has compared
the cost of compliance for the smallest businesses with the cost for the largest
businesses affected by the proposed rule by using the cost for each $100 in
sales. Each motor carrier, including all household goods carriers, is required
to file an annual report that includes the total number of shipments transported
by the carrier. Based on these figures, the department identified 23 small
carriers that reported under 10 shipments and 47 large carriers that reported
more than 1,450 shipments. The department contacted these 70 carriers to determine
the number of vehicles they operate that will be affected by the proposed
rule and their annual gross revenue. From the responses, the department determined
the smallest and largest businesses affected by the proposed rule.
The three smallest businesses that will be affected by the proposed rule
operate one vehicle that weighs less than 26,000 pounds. The cost to the smallest
business per $100 of sales/gross revenue will be $8.09 based on a gross annual
revenue of $4,537. The cost to the second smallest, with $13,800 in annual
sales, will be $2.66 per $100 in sales. The third smallest business will have
a cost of $.49 per $100 in sales based on their annual revenue of $75,000.
The largest businesses offer a wide variety of services related to the
moving industry including household goods movers using vehicles that weigh
less than 26,000 pounds. The three largest businesses identified include one
that operates 31 trucks under 26,000 pounds and has an annual revenue of $4,190,894.
The cost per $100 in sales for this company will be $.27. Another large company
operates 30 vehicles affected by the proposed rule. The cost to this company
will be $.09 based on annual sales of $12,000,000. The largest company reviewed
has an annual gross revenue of $688,300,000. This company operates 21 qualifying
vehicles and will see a cost of $.001 per $100 in sales.
PUBLIC HEARING
Pursuant to the Administrative Procedure Act, Government Code, Chapter
2001, the Texas Department of Transportation will conduct a public hearing
to receive comments concerning the proposed rules. The public hearing will
be held at 9:30 a.m. on August 22, 2006, in the first floor hearing room of
the Dewitt C. Greer State Highway Building, 125 East 11th Street, Austin,
Texas and will be conducted in accordance with the procedures specified in
43 TAC §1.5. Those desiring to make comments or presentations may register
starting at 9:00 a.m. Any interested persons may appear and offer comments,
either orally or in writing; however, questioning of those making presentations
will be reserved exclusively to the presiding officer as may be necessary
to ensure a complete record. While any person with pertinent comments will
be granted an opportunity to present them during the course of the hearing,
the presiding officer reserves the right to restrict testimony in terms of
time and repetitive content. Organizations, associations, or groups are encouraged
to present their commonly held views and identical or similar comments through
a representative member when possible. Comments on the proposed text should
include appropriate citations to sections, subsections, paragraphs, etc. for
proper reference. Any suggestions or requests for alternative language or
other revisions to the proposed text should be submitted in written form.
Presentations must remain pertinent to the issues being discussed. A person
may not assign a portion of his or her time to another speaker. Persons with
disabilities who plan to attend this meeting and who may need auxiliary aids
or services such as interpreters for persons who are deaf or hearing impaired,
readers, large print or Braille, are requested to contact Randall Dillard,
Director, Public Information Office, 125 East 11th Street, Austin, Texas 78701-2483,
(512) 463-8588 at least two working days prior to the hearing so that appropriate
services can be provided.
SUBMITTAL OF COMMENTS
Written comments on the amendments may be submitted to Carol Davis, Director,
Motor Carrier Division, Texas Department of Transportation, 125 East 11th
Street, Austin, Texas 78701-2483. The deadline for receipt of comments is
5:00 p.m. on September 11, 2006.
Subchapter A. GENERAL PROVISIONS
43 TAC §18.2
STATUTORY AUTHORITY
The amendments are proposed under Transportation Code, §201.101, which
provides the commission with the authority to establish rules for the conduct
of the work of the department, and more specifically, Transportation Code, §643.003,
which authorizes the department to adopt rules to administer Chapter 643 regarding
motor carrier registration.
CROSS REFERENCE TO STATUTE
Transportation Code, Chapter 643.
§18.2.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise.
(1) - (5)
(No change.)
(6)
Commercial motor vehicle--
(A)
(No change.)
(B)
Does not include:
(i) - (ii)
(No change.)
(iii)
a vehicle registered with the Railroad Commission under
[
(iv) - (vii)
(No change.)
(7)
Commercial school bus--A motor vehicle owned by a motor
carrier that is:
(A) - (C)
(No change.)
(D)
complies with Transportation Code
,
Chapter 548;
and
(E)
(No change.)
(8) - (36)
(No change.)
(37)
Registration receipt--A receipt issued to the registrant
by its registration state after the requirements of 49 CFR[
(38)
Registration state--A state where the registrant maintains
a valid single state registration as defined in 49 CFR[
(39) - (50)
(No change.)
[
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on July 28, 2006.
TRD-200603967
Bob Jackson
Interim General Counsel
Texas Department of Transportation
Earliest possible date of adoption: September 10, 2006
For further information, please call: (512) 463-8683
43 TAC §§18.13, 18.14, 18.16
STATUTORY AUTHORITY
The amendments are proposed under Transportation Code, §201.101, which
provides the commission with the authority to establish rules for the conduct
of the work of the department, and more specifically, Transportation Code, §643.003,
which authorizes the department to adopt rules to administer Chapter 643 regarding
motor carrier registration.
CROSS REFERENCE TO STATUTE
Transportation Code, Chapter 643.
§18.13.Application for Motor Carrier Registration.
(a)
Form of application. An application for motor carrier registration
must be filed with the department's Motor Carrier Division and [
(1) - (12)
(No change.)
(b) - (c)
(No change.)
(d)
Disposition of application.
(1)
Approval. An applicant meeting the requirements of this
section and whose registration is approved will be issued the following documents.
(A)
(No change.)
(B)
Insurance cab card. The department will issue an original
insurance cab card listing all vehicles to be operated under the carrier's
certificate of registration. The insurance cab card shall be continuously
maintained at the registrant's principal place of business. The insurance
cab card will be valid for the same period as the motor carrier's certificate
of registration and will contain information regarding each vehicle registered
by the motor carrier. [
(i) - (vi)
(No change.)
(2)
(No change.)
(e)
(No change.)
(f)
Supplement to original application. A motor carrier required
to register under this section shall submit a supplemental application under
the following circumstances.
(1)
(No change.)
(2)
Change of name. A motor carrier that changes its name shall
file a supplemental application for registration 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 §18.16
of this subchapter. A motor carrier that is a corporation must have its name
change approved by the Texas Secretary of State before filing a supplemental
application. A motor carrier incorporated outside the
state
[
(3) - (7)
(No change.)
(g) - (h)
(No change.)
[(i)
[
[
[
[
[
[
[
[
[
[
[
[
(i)
[
§18.14.Expiration and Renewal of Commercial Motor Vehicle Registration.
(a)
Expiration and renewal dates.
(1)
A motor carrier with annual or biennial registration [
Figure: 43 TAC §18.14(a)(1) (No change.)
[
(2)
[
(3)
[
(b)
Registration renewal.
(1)
Approximately 60 days before the expiration of registration,
the department will mail or send electronically a renewal notice to each registered
motor carrier with annual or biennial registration [
(A) - (C)
(No change.)
(2) - (5)
(No change.)
§18.16.Insurance Requirements.
(a)
Automobile liability insurance requirements.
[
[
[
(b) - (d)
(No change.)
(e)
Filing proof of insurance with the department.
(1)
Forms.
(A)
A motor carrier [
(B) - (C)
(No change.)
(2) - (3)
(No change.)
(4)
Acceptable filings. The department will not accept an insurance
policy or certificate of insurance unless it is issued by an insurance company
licensed and authorized to do business in the
state
[
(f) - (i)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on July 28, 2006.
TRD-200603968
Bob Jackson
Interim General Counsel
Texas Department of Transportation
Earliest possible date of adoption: September 10, 2006
For further information, please call: (512) 463-8683
43 TAC §18.32
STATUTORY AUTHORITY
The amendments are proposed under Transportation Code, §201.101, which
provides the commission with the authority to establish rules for the conduct
of the work of the department, and more specifically, Transportation Code, §643.003,
which authorizes the department to adopt rules to administer Chapter 643 regarding
motor carrier registration.
CROSS REFERENCE TO STATUTE
Transportation Code, Chapter 643.
§18.32.Motor Carrier Records.
(a) - (b)
(No change.)
(c)
Proof of motor carrier registration.
(1)
Except as provided in
paragraph
[
[
(2)
(No change.).
(d) - (e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on July 28, 2006.
TRD-200603969
Bob Jackson
Interim General Counsel
Texas Department of Transportation
Earliest possible date of adoption: September 10, 2006
For further information, please call: (512) 463-8683
The Texas Department of Transportation (department) proposes amendments
to §31.3, definitions, new §31.17, concerning the job access and
reverse commute program, and new §31.18 concerning the new freedom program.
EXPLANATION OF PROPOSED AMENDMENTS AND NEW SECTIONS
Title 49, USC §5316, as added by the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users, (Pub. L. No. 109-59)
(2005) (SAFETEA-LU), authorizes the U.S. Secretary of Transportation to make
available grants to support employment and employment-related public transportation
activities under a program called "Job Access and Reverse Commute" (JARC).
Title 49, USC §5317, as added by SAFETEA-LU, authorizes the U.S. Secretary
of Transportation to make available grants for public transportation projects
that provide new public transportation services and public transportation
alternatives beyond those currently required by the Americans with Disabilities
Act of 1990 (ADA) that assist individuals with disabilities with transportation
including transportation to and from jobs and employment support services.
The program is called New Freedom (NF).
For urbanized areas less than 200,000 population and for rural areas, the
governor of Texas (governor) has delegated project selection and grant administration
for these programs to the Texas Transportation Commission (commission). The
commission proposes the adoption of rules concerning project selection and
the administration of the JARC and NF programs to implement federal laws and
regulations and permit the commission to award grants.
Existing §31.3, Definitions, is amended to include new terms used
in §31.17 and §31.18. Definitions are taken from federal statute
or other guidance published by the Federal Transit Administration. The definitions
are renumbered to accommodate the alphabetical inclusion of the terms.
New §31.3(16), Employment-related transportation, describes assistance
to individuals in job search (interviews, trips to employment offices), job
preparation (college or vocational training classes) and support activities
such as taking children to daycare.
New §31.3(30), Job access project, defines public transportation related
to the development and maintenance of transportation services designed to
transport welfare recipients and eligible low-income individuals to and from
jobs and employment-related destinations.
New §31.3(36), Low-income individual, is a person whose family income
is at or below 150 percent of the poverty line (as that term is defined in §673(2)
of the Community Services Block Grant Act (42 USC §9902(2)) for a family
of the size involved, or as otherwise defined by 49 USC §5316, the Job
Access and Reverse Commute program.
New §31.3(37), Mobility management, means short-range planning and
management activities and projects for improving coordination among public
transportation and other transportation services providers. Typically these
activities are carried out by transit agencies or their subcontractors through
an agreement with a person, including a governmental entity. Mobility management
excludes operating public transportation services.
New §31.3(40), New public transportation service, with respect to
the NF program, defines new services that: (1) are targeted toward people
with disabilities; (2) meet the intent of the NF program by removing barriers
to transportation and assisting persons with disabilities with transportation,
including transportation to and from jobs and employment services; and (3)
were not included in a Transportation Improvement Program or Statewide Transportation
Improvement Program prior to August 10, 2005.
New §31.3(63), Reverse commute project, defines transportation of
residents of urbanized areas and other than urbanized areas to suburban employment
opportunities, or as otherwise defined by 49 USC §5316, the Job Access
and Reverse Commute program.
New §31.3(82), Welfare recipient, defines an individual who has received
assistance under a state or tribal program funded under part A of Title IV
of the Social Security Act at any time during the previous three-year period,
or as otherwise defined by 49 USC §5316, the Job Access and Reverse Commute
program.
In developing new §31.17 and new §31.18, the department draws
from the federal statute, the Federal Transit Administration's Interim Guidance
on Implementation, published in the
Federal Register
, 71 Fed. Reg. 13,456 (March 15, 2006), and the department's existing
rules for federal program administration contained in Title 43, Chapter 31,
Subchapter C.
Section 31.17(a), Purpose, identifies the JARC federal law, states it purpose,
and also states that the commission has been designated by the governor to
administer the program in areas less than 200,000 population.
Section 31.17(b), Goal and objectives, states the department's goals and
objectives for promoting public transportation services targeted to employment
transportation in accordance with the Federal Transit Administration's guidance
on implementing the program.
Section 31.17(c), Department role, states that the department will act
as the designated recipient for funds for areas less than 200,000 population,
while allowing subrecipients to retain control over daily operations.
Section 31.17(d), Project types, provides an illustrative list of projects
that JARC grants may fund. The JARC project types detail elements included
in these programs so that project sponsors will have an understanding of eligible
project types.
Section 31.17(e), Eligible subrecipients, mirrors the language in 49 USC §5316
which lists eligible subrecipients as state agencies, local governmental authorities,
private nonprofit organizations, and operators of public transportation services.
Private for-profit businesses may participate as a contractor to a subrecipient.
Applicants who are subrecipients of public transportation funds through another
department program must be in good standing with the department as defined
in §31.3.
Section 31.17(f), Eligible assistance categories, lists state administrative
expenses, capital expenses, project administration expenses, planning expenses,
marketing expenses and operating expenses as eligible for reimbursement and
gives the percentage of federal and non-federal match required for each category.
Section 31.17(g), Ineligible expenses, lists those costs that are not reimbursable,
which includes construction expenses, except for minor passenger amenities,
extended vehicle warranties, purchase and/or maintenance of vehicles for private
use, and other expenses prohibited by the Federal Transit Administration.
Section 31.17(h), Local share requirements, states that other U.S. Department
of Transportation funds cannot be used for the local (non-federal) match requirement.
Eligible match sources include local, state and federal programs, including
funds disbursed from the Texas Workforce Commission, local workforce development
boards, human services agencies and the Medicaid Medical Transportation Program.
Documented in-kind services related to a proposed JARC project are eligible
with prior department approval. The subsection clarifies that fares cannot
be used for local match but must, instead, reduce the net operating expense.
Section 31.17(i), Planning requirement, reflects the federal requirement
for prioritized JARC projects to be derived from a locally developed, coordinated
public transit-human services transportation plan. It is anticipated that
the regional service planning process will be used to meet the requirements
of the local coordinated planning process.
Section 31.17(j), Allocation of funds, allows the department to use up
to 10% of the federal apportionment to urbanized areas less than 200,000 population
and to nonurbanized areas for administrative, planning and technical assistance
activities associated with JARC. The commission will competitively award the
remaining funds. The department will issue a call for projects in the
Section 31.17(k), Grant award, states that the department will enter into
a grant agreement with individual subrecipients. The commission has expressed
its commitment to a plan to improve transportation in Texas. The plan has
five goals: 1) reduce congestion; 2) enhance safety; 3) expand economic opportunity;
4) improve air quality; and, 5) increase the value of transportation assets.
The subsection enumerates the criteria that the commission will use in awarding
grant funds in a manner that facilitates the goals of the plan. Failure to
expend funds in a timely manner may cause the department to terminate the
grant and re-award the balance of funds to another project.
Section 31.17(l), Vehicle leasing, permits subrecipients to lease vehicles
to other entities, with prior department approval, such as local public bodies
or agencies, private non-profit organizations and private for-profit businesses,
as long as the purpose of the JARC project is carried out by this entity.
The subrecipient is responsible for ensuring the lessee follows all applicable
laws and regulations.
Section 31.17(m), Incidental vehicle use, allows vehicles to be used for
other purposes, and to accommodate riders not engaged in employment activities,
when such activities/riders do not interfere with employment transportation
purposes.
Section 31.17(n), Disposition of vehicles at end of the grant, states that
vehicles purchased with JARC funds may be transferred to another subrecipient
in accordance with state and federal disposition requirements.
Section 31.18(a), Purpose, identifies the New Freedom federal law, states
its purpose, and also states that the commission has been designated by the
governor to administer the program in areas with less than 200,000 population.
Section 31.18(b), Goal and objectives, states the department's goal and
objectives for the NF program. These projects shall provide new public transportation
services and public transportation alternatives beyond those currently required
by the Americans with Disabilities Act of 1990 (ADA) that assist individuals
with disabilities with transportation including transportation to and from
jobs and employment support services.
Section 31.18(c), Department role, stipulates that the department will
act as the designated recipient for funds for areas with less than 200,000
population, while allowing subrecipients to retain control over daily operations.
Section 31.18(d), Project types, provides an illustrative list of projects
that NF grants may fund. The projects listed are examples of new public transportation
services and public transportation alternatives beyond those currently required
by the Americans with Disabilities Act of 1990 (ADA) that assist individuals
with disabilities with transportation, including transportation to and from
jobs and employment support services.
Section 31.18(e), Eligible subrecipients, mirrors the language in 49 USC §5317
which lists eligible subrecipients as state agencies, local governmental authorities,
private nonprofit organizations, and operators of public transportation services.
Private for-profit businesses may participate as a contractor to a subrecipient.
Applicants who are subrecipients of public transportation funds through another
department program must be in good standing with the department as defined
in §31.3.
Section 31.18(f), Eligible assistance categories, lists state administrative
expenses, capital expenses, project administration expenses, and operating
expenses as eligible for reimbursement and gives the percentage of federal
and non-federal match required for each category.
Section 31.18(g), Ineligible expenses, lists those costs that are not reimbursable,
including extended vehicle warranties, purchase and/or maintenance of private
use vehicles, and other FTA prohibited expenses.
Section 31.18(h), Local share requirements, states that other U.S. Department
of Transportation funds cannot be used for the local (non-federal) match requirement.
Eligible match sources include local, state, and federal programs, including
funds disbursed from the Texas Workforce Commission, local workforce development
boards, human services agencies and the Medicaid Medical Transportation Program.
Documented in-kind services related to the NF project are eligible with prior
department approval. The subsection clarifies that fares cannot be used for
local match but must, instead, reduce the net operating expense.
Section 31.18(i), Planning requirement, reflects the federal requirement
for prioritized NF projects to come from a locally developed, coordinated
public transit-human services transportation plan. It is anticipated that
the regional service planning process will be used to meet the requirements
of the local coordinated planning process.
Section 31.18(j), Allocation of funds, allows the department to use up
to 10% of the federal apportionment to urbanized areas with less than 200,000
population and to nonurbanized areas for administrative, planning, and technical
assistance activities associated with NF. The commission will competitively
award the remaining funds. The department will issue a call for projects in
the
Texas Register
. The subsection lists the
content of the
Texas Register
notice. Funds
from one category (urbanized area less than 200,000 population or nonurbanized
area) shall not be moved to the other. The origination location of the riders
shall be the basis for determining which apportionment is used to fund a particular
project.
Section 31.18(k), Grant award, states that the department will enter into
a grant agreement with individual subrecipients. The commission has expressed
its commitment to a plan to improve transportation in Texas. The plan has
five goals: 1) reduce congestion; 2) enhance safety; 3) expand economic opportunity;
4) improve air quality; and, 5) increase the value of transportation assets.
The subsection enumerates the criteria that the commission will use in awarding
grant funds in a manner that facilitates the goals of the plan. Failure to
expend funds in a timely manner may cause the department to terminate the
grant and re-award the balance of funds to another project.
Section 31.18(l), Vehicle leasing, permits subrecipients to lease vehicles
to other entities, with prior department approval, such as local public bodies
or agencies, private non-profit organizations, and private for-profit businesses,
as long as the purpose of the NF project is carried out by this entity. The
subrecipient is responsible for ensuring the lessee follows all applicable
laws and regulations.
Section 31.18(m), Incidental vehicle use, allows vehicles to be used for
other purposes, and to accommodate able-bodied persons, when such activities/riders
do not interfere with transportation opportunities specifically designed for
persons with disabilities.
Section 31.18(n), Disposition of vehicles at end of the grant, states that
vehicles purchased with NF funds may be transferred to another subrecipient
in accordance with state and federal disposition requirements.
The Public Transportation Advisory Committee (PTAC) met on June 28, 2006
to review the draft rules. PTAC met on July 13, 2006 and by motion recommended
to the commission that the proposed amended and new rules be published in
the
Texas Register
.
FISCAL NOTE
James Bass, Chief Financial Officer, has determined that for each of the
first five years the amendments and new sections as proposed are in effect,
there will be fiscal implications for state or local governments as a result
of enforcing or administering the amendments and new sections. SAFETEA-LU
provides authorized funding for its formula programs, including JARC and NF
programs, for federal fiscal years 2006 through 2009. These authorized levels
will provide new federal funds of approximately $7.9 million to $9.2 million
annually. With the exception of 10% of authorized funds used for department
administration of the program, the funds will be made available to subrecipients
in the form of competitive grants. Funds apportionment for FY 2006 will be
combined and distributed along with funds for FY 2007. There are no anticipated
economic costs for persons required to comply with the sections as proposed.
Eric Gleason, Director, Public Transportation Division, has certified that
there will be no significant impact on local economies or overall employment
as a result of enforcing or administering the amendments and new sections.
PUBLIC BENEFIT
Mr. Gleason has also determined that for each year of the first five years
the sections are in effect, the public benefit anticipated as a result of
enforcing or administering the amendments and new sections will be improved
transportation services for welfare recipients and low income individuals
for employment opportunities, including to suburban areas, and improved transportation
services and facilities for persons with disabilities. There will be no adverse
economic effect on small businesses.
PUBLIC HEARING
Pursuant to the Administrative Procedure Act, Government Code, Chapter
2001, the Texas Department of Transportation will conduct a public hearing
to receive comments concerning the proposed rules. The public hearing will
be held at 1:30 p.m. on August 30, 2006, in the first floor hearing room of
the Dewitt C. Greer State Highway Building, 125 East 11th Street, Austin,
Texas and will be conducted in accordance with the procedures specified in
43 TAC §1.5. Those desiring to make comments or presentations may register
starting at 1:00 p.m. Any interested persons may appear and offer comments,
either orally or in writing; however, questioning of those making presentations
will be reserved exclusively to the presiding officer as may be necessary
to ensure a complete record. While any person with pertinent comments will
be granted an opportunity to present them during the course of the hearing,
the presiding officer reserves the right to restrict testimony in terms of
time and repetitive content. Organizations, associations, or groups are encouraged
to present their commonly held views and identical or similar comments through
a representative member when possible. Comments on the proposed text should
include appropriate citations to sections, subsections, paragraphs, etc. for
proper reference. Any suggestions or requests for alternative language or
other revisions to the proposed text should be submitted in written form.
Presentations must remain pertinent to the issues being discussed. A person
may not assign a portion of his or her time to another speaker. Persons with
disabilities who plan to attend this meeting and who may need auxiliary aids
or services such as interpreters for persons who are deaf or hearing impaired,
readers, large print or Braille, are requested to contact Randall Dillard,
Director, Public Information Office, 125 East 11th Street, Austin, Texas 78701-2483,
(512) 463-8588 at least two working days prior to the hearing so that appropriate
services can be provided.
SUBMITTAL OF COMMENTS
Written comments on the amendments and new sections may be submitted to
Eric Gleason, Director, Public Transportation Division, Texas Department of
Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline
for receipt of comments is 5:00 p.m. on September 11, 2006.
Subchapter A. GENERAL
Texas
] Natural Resources Code, §113.131 and §116.072;
,
] Part
367 have been met.
,
] Part
367.
(51)
Type B household goods carrier--A
household goods carrier that does not use a motor vehicle or combination of
vehicles with a gross weight, registered weight, or gross weight rating in
excess of 26,000 pounds.]
Subchapter B. MOTOR CARRIER REGISTRATION
except
as provided in subsection (i) of this section,
] must be in the form
prescribed by the director and must contain, at a minimum, the following information.
This subparagraph does not apply to Type B household
goods carriers.
]
State
] of Texas must complete the name change under the law of its state
of incorporation before filing a supplemental application.
Type B household goods carriers.
An application for motor carrier registration submitted by a Type B household
goods carrier shall be in the form prescribed by the director.
]
(1)
The carrier's application must contain all
the information described in subsection (a) of this section, except for the
information specified in subsection (a)(5) and (7) of this section.]
(2)
The carrier's application must be accompanied
by a $100 application fee.]
(3)
The carrier's application must be accompanied
by proof of financial responsibility for cargo loss or damage and by the filing
fee specified in §18.16 of this subchapter.]
(4)
The carrier's application must include a statement
certifying that the carrier:]
(A)
is in compliance with Transportation Code,
Chapter 601; and]
(B)
if the carrier maintains an automobile liability
insurance policy to comply with Transportation Code, Chapter 601, then the
policy is an enforceable commercial or business automobile liability insurance
policy.]
(5)
The department will issue an original certificate
of registration, which must be continuously maintained at the registrant's
principal place of business.]
(6)
A carrier shall carry a copy of its certificate
of registration either in the cab of each vehicle or in each trailer used
for the transportation of household goods.]
(7)
The carrier shall notify the department in
writing when it discontinues operations as a transporter of household goods.]
(8)
On demand by a department-certified inspector
or any other authorized government personnel, the driver shall present the
certificate of registration maintained in the vehicle.]
(9)
The certificate of registration is continuously
in effect until suspended or revoked by the department. A motor carrier may
voluntarily cancel the certificate of registration by submitting a supplemental
application or written request.]
(10)
Any erasure, alteration, or unauthorized use
of a certificate of registration renders it void.]
(j)
] Substitute vehicles leased
from leasing businesses. A registered motor carrier is not required to comply
with the provisions of subsection (e) of this section for a substitute vehicle
leased from a business registered under §18.19 of this subchapter. A
motor carrier is not required to carry proof of registration as described
in subsection (d) of this section if a copy of the lease agreement for the
originally leased vehicle is carried in the cab of the temporary replacement
vehicle.
, other than a Type B household goods carrier,
] will be assigned a 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:
(2)
Certificates of registration
for Type B household goods carriers remain in effect until suspended or revoked.]
(3)
] 90 day certificates of registration
are valid for 90 calendar days from the effective date.
(4)
] Seven day certificates of registration
are valid for seven calendar days from the effective date.
, other than a Type
B household goods carrier
]. The notice will be mailed to the carrier's
last known address according to the division's records. Failure to receive
the notice does not relieve the registrant of the responsibility to renew.
A motor carrier must ensure that the department receives the renewal at least
15 days prior to the renewal date specified in subsection (a) of this section.
A supplement to an application for motor carrier registration renewal must:
(1)
]
A motor carrier[
, other than a Type B
household goods carrier,
] must file proof of commercial automobile liability
insurance with the department on a form acceptable to the director for each
vehicle required to be registered under this subchapter. The motor carrier
must carry and maintain automobile liability insurance that is combined single
limit liability for bodily injury to or death of an individual per occurrence,
loss or damage to property (excluding cargo) per occurrence, or both. Extraneous
information will not be considered acceptable, and the department may reject
proof of commercial automobile liability insurance if it is provided in a
format that includes information beyond what is required. Minimum insurance
levels are indicated in the following table.
Figure: 43 TAC §18.16(a)(1)
]
(2)
Type B household goods carriers
shall comply with the applicable requirements of Transportation Code, Chapter
601. If a Type B household goods carrier maintains an automobile liability
insurance policy to comply with Transportation Code, Chapter 601, the policy
must be an enforceable commercial or business automobile liability insurance
policy.]
, other than a Type B household goods
carrier,
] shall file and maintain proof of automobile liability insurance
for all vehicles required to be registered under this subchapter at all times.
This proof shall be filed on a form acceptable to the director.
State
] of Texas. It must be in a form prescribed or approved by the DOI and
signed or countersigned by an authorized agent of the insurance 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.
Subchapter C. RECORDS AND INSPECTIONS
paragraphs (1) and
] (2) of this subsection, every motor carrier shall
maintain a copy of its current registration listing in the cab of each registered
vehicle at all times. A motor carrier shall make available to a certified
inspector or any law enforcement officer a copy of the current registration
listing upon request.
(1)
A Type B household goods carrier
shall maintain a copy of its certificate of registration in either the cab
of each power unit or each trailer operated on its behalf at all times. A
Type B household goods carrier shall make available and accessible to a certified
inspector or any law enforcement officer a copy of the current certificate
of registration.]
Chapter 31.
PUBLIC TRANSPORTATION