TITLE 43.TRANSPORTATION

Part 1. TEXAS DEPARTMENT OF TRANSPORTATION

Chapter 18. MOTOR CARRIERS

The Texas Department of Transportation (department) adopts amendments to §18.2, definitions, §§18.13, 18.14, 18.16, 18.17 and repeal of §18.18, concerning motor carrier registration, and amendments to §§18.51, 18.58, and 18.63 - 18.65, concerning consumer protection, and §§18.82, 18.87 - 18.93, and 18.96, concerning vehicle storage facilities. The repeal of §18.18, and amendments to §§18.17, 18.51, 18.58, 18.63, 18.64, 18.82, 18.87 - 18.91, 18.93 and 18.96 are adopted without changes to the proposed text as published in the December 2, 2005 issue of the Texas Register (30 TexReg 8019) and will not be republished. The amendments to §§18.2, 18.13, 18.14, 18.16, 18.65 and 18.92 are adopted with changes to the proposed text as published in the December 2, 2005 issue of the Texas Register (30 TexReg 8019). Section 18.32 is withdrawn.

EXPLANATION OF ADOPTED AMENDMENTS AND REPEAL

The adopted amendments and repeal are necessary to implement the provisions of House Bills 480, 1018, 1584, 2630, and 2702 of the 79th Legislature, Regular Session, 2005; update statutory references; clarify existing information; and address the implementation of online registration applications.

House Bill 480 amended Occupations Code, §2303.155, to increase the notification charge a vehicle storage facility operator can charge, from $32 to $50, and to increase the daily storage fee of a vehicle by $5. House Bill 480 added Occupations Code, §2303.158 to clarify the condition under which a person claiming to be the vehicle owner of a towed vehicle can access their vehicle's interior storage in order to prove ownership.

House Bill 1018 addressed commercial school bus regulations, providing an additional insurance level for certain commercial school buses and requiring a minimum liability insurance of at least $500,000 combined single limit.

House Bill 2630 addressed issues with vehicle storage facilities. It requires the name, address, and telephone number of the justice court be included in the contents of the notices provided to the owners of towed vehicles. House Bill 2630 also amends Occupations Code, §2303.152(a) and (e), to allow vehicle storage facility operators to issue notice by publication for vehicles not registered in Texas for nonconsent storage when a vehicle owner's identity or vehicle's state of registration cannot be determined. It requires vehicle storage facility operators to notify law enforcement when a vehicle has been abandoned at a vehicle storage facility. House Bill 2630 also adds language to prohibit vehicle storage facilities from charging additional fees related to storage other than fees set forth in statute.

House Bill 480, House Bill 1584 and House Bill 2630 all added language to require a vehicle storage facility operator to accept either electronic checks, debit cards, or credit cards as an alternative form of payment for vehicle storage charges.

House Bill 2702, Article 6, changed the alternative household goods carriers' registration requirements previously based on vehicle weight. The rules as proposed eliminated all references to Type A and Type B household goods carriers. The rule as adopted has been modified regarding Type B household goods carriers to allow the department time to further study the issue of minimum vehicle liability insurance requirements for household goods carriers who previously qualified as Type B carriers. The adopted rules re-establish Type B carriers to allow for the continuation of the current registration format with regard to vehicle liability insurance requirements. Other changes to household goods carriers remain as proposed. The department will propose additional rules at the conclusion of the study to address liability insurance requirements.

New §18.2(6)(A)(vi) expands the definition of commercial motor vehicle to include any vehicle transporting household goods for compensation, as required by House Bill 2702. The adopted amendment to §18.2(6)(B)(ii) updates the legal reference for cotton vehicle registration and the adopted amendment to §18.2(7) adds a new definition for "commercial school bus" to comply with House Bill 1018. The definition of Type B household goods carriers, §18.2(51), is reinstated in the adopted rules to allow for the continuation of a separate registration process for carriers that meet the definition.

Section 18.13(a)(3), relating to application for motor carrier registration, deletes the reference to the application to address the implementation of a new internal web-based registration process. The online registration process will streamline the application procedures and allow for a more efficient system.

Section 18.13 is also changed from the proposed version to accommodate the separate registration process for Type B household good carriers. The rule as adopted reinstates the current language of the rule regarding the registration process and vehicle liability insurance.

Adopted §18.14 reinstates the current language regarding the continuation of Type B carriers. With this change, Type B carriers do not have a set expiration date.

Section 18.14(b)(1), relating to expiration and renewal of commercial motor vehicle registration, allows the department to provide renewal notices by electronic mail to address the implementation of new online registration applications.

The language in §18.16(a), regarding the vehicle liability insurance requirements, has been changed from the proposed language, reinstating the current language of the rule.

Section 18.16(a), relating to insurance requirements, including numbered item 1, and subsections 18.16(b), (c), (f), and (h), comply with the requirements of House Bill 2702 regarding commercial household goods carriers. All references to letters of credit and the process for acceptance have been removed in the adopted language. The adopted rule also deletes references to surety bonds as they do not apply to motor carriers that are required to register including all household goods carriers. All household goods carriers are required to meet the same cargo and workers compensation insurance requirements. In addition, §18.16(c)(1) is adopted with changes to clarify the existing language.

Numbered item 5 is added to the figure §18.16(a) to comply with the requirements of House Bill 1018 regarding commercial school buses. The adopted rule sets the minimum insurance level at $500,000 as required by the statute. The remaining items are renumbered accordingly. The word "of" is changed to "or" in renumbered item 11 of the figure to correct a grammatical error.

Section 18.17, Single State Registration System, addresses implementation of a new online Single State Registration System (SSRS) and clarifies methods used to send SSRS renewal applications to customers. The deletion of language in §18.17(j)(6) eliminates duplicate insurance filing. The new system connects directly with the Federal Motor Carrier Safety Administration (FMCSA), therefore, it is no longer necessary to have the motor carrier file the insurance information with both entities.

Section 18.18, Temporary Registration of International Motor Carriers, is repealed to comply with 49 CFR, Parts 365 and 385, effective March 19, 2002. The federal regulations now require that motor carriers from Mexico obtain operating authority through the FMCSA. With the federal change, temporary registration stamps are no longer necessary.

Section 18.58(c)(1)(B), relating to moving services contract - options for carrier limitation of liability, changes the language to be consistent with the provisions of the household goods carriers contract terms and conditions used in interstate movements.

Section 18.82(8), Definitions (Main entrance), reflects a recent administrative decision to clarify that a vehicle storage facility's main entrance is located at the point where a public road meets private property leading to the vehicle storage facility. The adopted change will help address problems consumers have in locating the facility.

New §18.82(15), Vehicle transfer, is defined as "any movement of a vehicle out of a VSF, prior to its release as prescribed in §18.92(a)". Currently, this term is interpreted in a way that limits the release of a vehicle to a person other than another VSF.

Section 18.87(b)(2), relating to notifications regarding towed vehicles, clarifies that the notification procedures apply to vehicles not registered in Texas. The amendment to §18.87(b)(2)(B) allows vehicle storage facilities to utilize publication to notify the owner of the vehicle if the vehicle does not display a license plate or vehicle inspection certificate and the storage facility cannot determine ownership and lien holder information. This change is necessary to comply with House Bill 2630.

Section 18.89, Notice of Complaint Procedure, requires the notice of complaint procedures be included on the front page of the bill for service. This is to ensure that the information is accessible to the consumer.

Section 18.90, Rights of Owner or Authorized Representative, is amended to comply with House Bill 480 regarding access to a vehicle's interior to prove ownership.

Section 18.91(b), pertaining to facility requirements, adds a new requirement that VSF operators provide a consumer with safe unobstructed access to a vehicle in order to establish ownership, and clarifies signage requirements.

Section 18.92, Technical Requirements, implements House Bill 2630 regarding the requirement that the vehicle storage facility provide information on the justice court that has jurisdiction and the law enforcement agency that authorized the tow.

Section 18.92 requires the acceptance of new methods of payment for nonconsent storage as required by House Bill 480, House Bill 2630, and House Bill 1584. The vehicle storage facility is required to accept either electronic checks, debit cards or credit cards as an alternative form of payment for fees associated with the towing and storage of the vehicle.

Section 18.92 prohibits a vehicle storage facility from refusing to release a vehicle impounded for evidentiary or examination purpose because a law enforcement agency has not paid the cost of towing and storage. In addition, the section is amended to comply with 37 TAC, §4.16, that prohibits the release of a commercial motor vehicle until delinquent penalties have been paid by the motor carrier.

Amendments to §18.93, Storage Fees and Charges, implement House Bills 480 and 2630 regarding fee increases and charge restrictions.

Amendments to §18.96(c), pertaining to disposal of certain vehicles, implements House Bill 2630 regarding notification to law enforcement of a vehicle abandoned at a vehicle storage facility.

COMMENTS

The department received comments regarding the proposed rule during the comment period from the Texas Towing & Storage Association, and Angenend & Augustine on behalf of Southwest Movers Association. A summary of the comments and the department's responses follow.

Comment

One commenter suggested a deletion of the last sentence of §18.92(a)(7) which stated "The licensee cannot charge the law enforcement agency for costs that accrued after the agency authorized the release of the vehicle." The change was requested due to arrangements some VSF operators have with law enforcement to store vehicles and their belief that the proposed language could have an impact on these arrangements.

Response

The department agrees with the suggested change and deletes the last sentence of §18.92(a)(7) which was added in the proposed rules. Code of Criminal Procedure, Article 18.23 does not require a law enforcement agency to pay the cost of storing a motor vehicle after the date the law enforcement agency authorizes the VSF to release the vehicle to the owner. The sentence was proposed for clarification purposes, however, removing the proposed sentence does not hinder a VSF from complying with the law nor does it limit the VSF from collecting the applicable charges.

Comment

One commenter suggests a new statement indicating that law enforcement "owes" the VSF when law enforcement has a hold on a vehicle, suggesting that law enforcement does not need a statement that protects them from a VSF.

Response

The department does not agree with this suggestion. This is not addressed in the statute and the department does not regulate law enforcement agencies.

Comment

One commenter suggests a change to §18.16(c)(1) and §18.65(a) regarding the use of the word "municipality." The commenter suggested inserting the word "incorporated" before the word "municipality" or suggested that the prior rule language be revised. The prior language "incorporated city, town, or village" includes the three classes of Texas municipalities.

Response

The department agrees in part with this suggestion. To aid the general public and the motor carrier industry the department withdraws the change submitted on the proposed rules, leaving the current language intact.

Comment

One commenter suggests clarifying the language used in §18.16(c)(1) by rewording it to read "If a motor carrier is required to register under this subchapter, and if its primary business is...."

Response

The department agrees that the proposed language is not clear and adopts the following language: "A motor carrier that is required to register under this subchapter and whose primary business is transportation for compensation or hire between two or more incorporated cities, towns, or villages shall provide...."

Comment

One commenter suggests updating the language in §18.16(h) to reflect revisions in the Insurance Code regarding a required finding of insolvency.

Response

The department does not agree with this suggestion. The rule mirrors Transportation Code, §643.105 and there has been no change to this statute. The revised language is to provide the motor carrier with direction and not to provide a definition of insolvency.

Subchapter A. GENERAL PROVISIONS

43 TAC §18.2

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §643.003, which allows the department to adopt rules to administer Chapter 643 regarding motor carrier registration; and Occupations Code, §2303.051, which provides the commission with the authority to establish rules regarding vehicle storage facilities.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 643, and Occupations Code, Chapter 230.

§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) Approved association--A group of household goods carriers, its agents, or both, that has an approved collective ratemaking agreement on file with the department under §18.64 of this chapter.

(2) Binding proposal--A formal written offer stating the exact price for the transportation of specified household goods and any related services.

(3) 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 §18.16 and §18.86 of this chapter.

(4) Certificate of registration--A certificate issued by the department to a motor carrier and containing a unique number.

(5) 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-type or warehouse-type scale properly inspected and certified.

(6) 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, that is designed or used for the transportation of cargo in furtherance of any commercial enterprise;

(ii) all tow trucks, regardless of the gross weight rating of the tow truck;

(iii) any vehicle, including buses, designed or used to transport more than 15 passengers, including the driver;

(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 (49 USC, App. §§1801-1813);

(v) a commercial motor vehicle, as defined by 49 CFR §390.5, owned or controlled by a person or entity that is domiciled in or a citizen of a country other than the United States; and

(vi) any vehicle transporting household goods for compensation, regardless of the gross weight rating, registered weight or gross weight.

(B) Does not include:

(i) a farm vehicle with a gross weight, registered weight, and gross weight rating of less than 48,000 pounds;

(ii) cotton vehicles registered under Transportation Code, §504.505;

(iii) a vehicle registered with the Railroad Commission under Texas Natural Resources Code, §113.131 and §116.072;

(iv) a vehicle transporting liquor under a private carrier permit issued in accordance with Alcoholic Beverage Code, Chapter 42;

(v) a motor vehicle used to transport passengers and operated by an entity whose primary function is not the transportation of passengers, such as a vehicle operated by a hotel, day-care center, public or private school, nursing home, or similar organization;

(vi) a motor vehicle registered under the Single State Registration System established under 49 USC §14504 when operating exclusively in interstate or international commerce; and

(vii) a vehicle operated by a governmental entity.

(7) Commercial school bus--A motor vehicle owned by a motor carrier that is:

(A) registered under Transportation Code, Chapter 643, Subchapter B;

(B) operated exclusively within the boundaries of a municipality and used to transport preprimary, primary, or secondary school students on a route between the students' residences and a public, private, or parochial school or daycare facility;

(C) operated by a person who holds a driver's license or commercial driver's license of the appropriate class for the operation of a school bus;

(D) complies with Transportation Code Chapter 548; and

(E) complies with Transportation Code, §521.022.

(8) Commission--The Texas Transportation Commission.

(9) Consent tow--Any tow of a motor vehicle initiated by the owner or operator of the vehicle or by a person who has possession, custody, or control of the vehicle. The term does not include a tow of a motor vehicle initiated by a peace officer investigating a traffic accident or a traffic incident that involves the vehicle.

(10) Conspicuous--Written in a size, color, and contrast so as to be readily noticed and understood.

(11) Conversion--A change in an entity's organization that is implemented with a Certificate of Conversion issued by the Texas Secretary of State under Texas Business Corporation Act, Article 5.18.

(12) Department--Texas Department of Transportation.

(13) Director--The director of the Motor Carrier Division, Texas Department of Transportation.

(14) Division--The Motor Carrier Division.

(15) DOI--Texas Department of Insurance.

(16) Estimate--An informal oral calculation of the approximate price of transporting household goods.

(17) Farmer--A person who operates a farm or is directly involved in cultivating land or in raising crops or livestock that are owned by or are under the direct control of that person.

(18) Farm vehicle--Any vehicle or combination of vehicles controlled or operated by a farmer or rancher being used to transport agriculture products, farm machinery, and farm supplies to or from a farm or ranch.

(19) 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.

(20) Household goods--Personal property intended ultimately to be used in a dwelling when the transportation of that property is arranged and paid for by the householder or the householder's representative. The term does not include personal property to be used in a dwelling when the property is transported from a manufacturing, retail, or similar company to a dwelling if the transportation is arranged by a manufacturing, retail, or similar company.

(21) Household goods agent--A motor carrier who transports household goods on behalf of another motor carrier.

(22) Household goods carrier--A motor carrier who transports household goods for compensation or hire in furtherance of a commercial enterprise.

(23) Insurer--A person, including a surety, authorized in this state to write lines of insurance coverage required by Subchapter B and Subchapter G of this chapter.

(24) Inventory--A list of the items in a household goods shipment and the condition of the items.

(25) Leasing business--A person that leases vehicles requiring registration under Subchapter B of this chapter to a motor carrier that must be registered.

(26) Manager--The manager of the department's Motor Carrier Division, Motor Carrier Operations Section.

(27) Mediation--A non-adversarial form of alternative dispute resolution in which an impartial person, the mediator, facilitates communication between two parties to promote reconciliation, settlement, or understanding.

(28) Motor Carrier or carrier--A person that controls, operates, or directs the operation of one or more vehicles that transport persons or cargo over a public highway in this state.

(29) 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 another person in selling, offering for sale, or negotiating for the transportation of cargo by a motor carrier operated by another person.

(30) Moving services contract--A contract between a household goods carrier and shipper, such as a bill of lading, receipt, order for service, or work order, that sets out the terms of the services to be provided.

(31) Multiple user--An individual or business who has a contract with a household goods carrier and who used the carrier's services more than 50 times within the preceding 12 months.

(32) Nonconsent tow--Any tow of a motor vehicle that is not a consent tow.

(33) Not-to-exceed proposal--A formal written offer stating the maximum price a shipper can be required to pay for the transportation of specified household goods and any related services. The offer may also state the non-binding approximate price. Any offer based on hourly rates must state the maximum number of hours required for the transportation and related services unless there is an acknowledgment from the shipper that the number of hours is not necessary.

(34) Principal place of business--A single location that serves as a motor carrier's headquarters and where it maintains its operational records or can make them available.

(35) Public highway--Any publicly owned and maintained street, road, or highway in this state.

(36) Reasonable dispatch--The performance of transportation, other than transportation provided under guaranteed service dates, during the period of time agreed on by the carrier and the shipper and shown on the shipment documentation. This definition does not affect the availability to the carrier of the defense of force majeure.

(37) Registration receipt--A receipt issued to the registrant by its registration state after the requirements of 49 CFR, Part 367 have been met.

(38) Registration state--A state where the registrant maintains a valid single state registration as defined in 49 CFR, Part 367.

(39) Replacement vehicle--A vehicle that takes the place of another vehicle that has been removed from service.

(40) Revocation--The withdrawal of registration and privileges by the department or a registration state.

(41) Shipper--The owner of household goods or the owner's representative.

(42) Short-term lease--A lease of 30 days or less.

(43) Single state registration system--The program established by 49 USC §14504.

(44) SOAH--The State Office of Administrative Hearings.

(45) State of travel--A state in which a motor carrier operates motor vehicles subject to the single state registration system.

(46) Substitute vehicle--A vehicle that is leased from a leasing business and that is used as a temporary replacement for a vehicle that has been taken out of service for maintenance, repair, or any other reason causing the temporary unavailability of the permanent vehicle.

(47) Suspension--Temporary removal of privileges granted to a registrant by the department or a registration state.

(48) Towing company--A motor carrier that transports vehicles using a tow truck.

(49) Tow--The utilization of a mechanical device used to winch or otherwise move another vehicle.

(50) Tow truck--A motor vehicle equipped with or used in combination with a mechanical device used to tow, winch, or otherwise move another vehicle. The following motor vehicles are not considered tow trucks:

(A) a motor vehicle owned and used exclusively by a governmental entity, including a public school district;

(B) a motor vehicle towing:

(i) a race car;

(ii) a motor vehicle for exhibition; or

(iii) an antique motor vehicle;

(C) a recreational vehicle towing another vehicle;

(D) a motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device if the vehicle is not operated in the furtherance of a commercial enterprise; or

(E) a motor vehicle that is controlled or operated by a farmer or rancher and that is used for towing a farm vehicle.

(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.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602397

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-8683


Subchapter B. MOTOR CARRIER REGISTRATION

43 TAC §§18.13, 18.14, 18.16, 18.17

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §643.003, which allows the department to adopt rules to administer Chapter 643 regarding motor carrier registration; and Occupations Code, §2303.051, which provides the commission with the authority to establish rules regarding vehicle storage facilities.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 643, and Occupations Code, Chapter 230.

§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 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.

(1) Business or trade name. The applicant must designate the business or trade name of the motor carrier.

(2) Owner name. If the motor carrier is a sole proprietorship, the owner must indicate the name and social security number of the owner. A partnership must indicate the partners' names, and a corporation must indicate principal officers and titles.

(3) Principal place of business. A motor carrier must disclose the motor carrier's principal business address. If the mailing address is different from the principal business address, the mailing address must also be disclosed.

(4) Legal Agent.

(A) A Texas-domiciled motor carrier must provide the name and address of a legal agent for service of process if the agent is different from the motor carrier.

(B) A motor carrier domiciled outside Texas must provide the name and Texas address of the legal agent for service of process.

(C) A legal agent for service 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. An application must include a motor carrier equipment report identifying each commercial motor vehicle that requires registration and that the carrier proposes to operate. Each commercial motor vehicle must be identified by its motor vehicle identification number, make, model year, and type of cargo and by the unit number assigned to the commercial motor vehicle by the motor carrier. Any subsequent registration of vehicles must be made under subsection (e) of this section.

(6) Type of motor carrier operations. An applicant must state if the applicant:

(A) proposes to transport passengers, household goods, or hazardous materials;

(B) is a tow truck company that performs nonconsent tows; or

(C) is domiciled in a foreign country.

(7) Insurance coverage. An applicant must indicate insurance coverage as required by §18.16 of this subchapter.

(8) Safety affidavit. Each motor carrier must complete, as part of the application, an affidavit stating that the motor carrier knows and will conduct operations in accordance with all federal and state safety regulations.

(9) Drug-testing certification. Each motor carrier must certify, as part of the application, that the motor carrier is in compliance with the drug-testing requirements of 49 C.F.R. Part 382.

(A) Drug-testing consortium participants. If the motor carrier belongs to a consortium, as defined by 49 C.F.R. Part 382, the applicant must provide the names of the persons operating the consortium.

(B) Report of positive result. A motor carrier required to register under this section shall report to the Department of Public Safety, in the manner required by the Department of Public Safety, a valid positive result on a controlled substances test performed as part of the carrier's drug testing program on an employee of the carrier who holds a commercial driver's license under Transportation Code, Chapter 522. The term "employee" as used in this subparagraph includes all employees as defined in Title 49, Code of Federal Regulations, Part 40.3.

(10) Duration of registration. An applicant must indicate the duration of the desired registration. Registration may be for seven calendar days or for 90 days, one year, or two years. The duration of registration chosen by the applicant will be applied to all vehicles. Household goods carriers may not obtain seven day or 90 day certificates of registration.

(11) Additional requirements. The following fees and information must be submitted with all applications.

(A) An application must be accompanied by an application fee of:

(i) $100 for annual and biennial registrations;

(ii) $25 for 90 day registrations; or

(iii) $5 for seven day registrations.

(B) An application must be accompanied by a vehicle registration fee of:

(i) $10 for each vehicle, other than a tow truck, requiring registration or $25 for each tow truck that the motor carrier proposes to operate under a seven day, 90 day, or annual registration; or

(ii) $20 for each vehicle, other than a tow truck, requiring registration or $50 for each tow truck that the motor carrier proposes to operate under a biennial registration.

(C) An application must be accompanied by proof of insurance or financial responsibility and insurance filing fee as required by §18.16 of this subchapter.

(D) An application must be accompanied by any other information required by law.

(12) Application of fees. Applicants who have paid vehicle fees under §18.17 of this subchapter may request that the department apply those fees to the carrier's motor carrier registration. The request must be accompanied by a copy of the Single State Registration receipt. On review of the Single State Registration receipt, the department will apply fees paid under the Single State Registration System as follows.

(A) The per vehicle fees paid by the applicant will be applied on a per vehicle basis toward the vehicle fees that the applicant owes for the vehicles registered under motor carrier registration.

(B) Vehicle fees will be applied only to the first year of registration if an applicant applies for a biennial motor carrier registration. The motor carrier must pay all vehicle fees for the second year.

(b) Incomplete applications. The director will return an application to the applicant if it is not accompanied by all fees and by proof of insurance or financial responsibility.

(c) Conditional acceptance of application. The director may conditionally accept an application if it is accompanied by all fees and by proof of insurance or financial responsibility, but is not accompanied by all required information. Conditional acceptance in no way constitutes approval of the application. The director will notify the applicant of any 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.

(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) Certificate of registration. The department will issue a certificate of registration. The certificate of registration will contain the name and address of the motor carrier and a single registration number, regardless of the number of vehicles requiring registration that the carrier operates.

(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. This subparagraph does not apply to Type B household goods carriers.

(i) A copy of the page of the insurance cab card on which the vehicle is shown shall be maintained in each vehicle listed. The appropriate information concerning that vehicle shall be highlighted. The insurance cab card will serve as proof of insurance as long as the motor carrier has continuous insurance or financial responsibility on file with the department.

(ii) On demand by a department-certified inspector or any other authorized government personnel, the driver shall present the highlighted page of the insurance cab card that is maintained in the vehicle.

(iii) The carrier shall notify the department in writing if it discontinues use of a registered commercial motor vehicle before the expiration of its insurance cab card.

(iv) Any erasure, alteration, or unauthorized use of an insurance cab card renders it void.

(v) If an original insurance cab card is lost, stolen, destroyed, or mutilated, if it becomes illegible, or if it otherwise requires replacement, a new insurance cab card will be issued by the department at the request of the motor carrier.

(vi) Registration listings previously issued by the department will remain valid until expiration or renewal or until revoked or suspended by the department.

(2) Denial. The department may deny a registration if the applicant had a registration revoked under §18.72 of this chapter.

(e) Additional and Replacement Vehicles. A motor carrier required to obtain a certificate of registration under this section shall not operate additional vehicles unless the carrier identifies the vehicles on a form prescribed by the director and pays applicable fees as described in this subsection.

(1) Additional vehicles. To add a vehicle, a motor carrier must pay a fee of $10 for each additional vehicle, other than a tow truck, or $25 for each tow truck that the motor carrier proposes to operate under a seven day, 90 day, or annual registration. To add a vehicle during the first year of a biennial registration, a motor carrier must pay a fee of $20 for each vehicle, other than a tow truck, or $50 for each tow truck. To add a vehicle during the second year of a biennial registration, a motor carrier must pay a fee of $10 for each vehicle, other than a tow truck, or $25 for each tow truck.

(2) Replacement vehicles. No fee is required for a vehicle that is replacing a vehicle for which the fee was previously paid. Before the replacement vehicle is put into operation, the motor carrier shall notify the department, identify the vehicle being taken out of service, and identify the replacement vehicle on a form prescribed by the department. A motor carrier registered under seven day registration may not replace vehicles.

(3) Fees paid under the Single State Registration System. Vehicle fees paid under §18.17 of this subchapter will be applied toward a motor carrier's vehicle fees under subsection (a)(12) of this section.

(f) Supplement to original application. A motor carrier required to register under this section shall submit a supplemental application under the following circumstances.

(1) Change of cargo. A registered motor carrier may not begin transporting household goods or hazardous materials, or performing nonconsent tows, unless the carrier submits a supplemental application to the department and shows the department evidence of insurance or financial responsibility in the amounts specified by §18.16 of this subchapter.

(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 of Texas must complete the name change under the law of its state of incorporation before filing a supplemental application.

(3) Change of address or legal agent for service of process. A motor carrier shall file a supplemental application for any change of address or any change of its legal agent for service of process no later than the effective date of the change. The address most recently filed will be presumed conclusively to be the current address.

(4) Change in principal officers and titles. A motor carrier that is a corporation shall file a supplemental application for any change in the principal officers and titles no later than the effective date of the change.

(5) Conversion of corporate structure. A motor carrier that has successfully completed a corporate conversion involving a change in the name of the corporation shall file a supplemental application for registration and evidence of insurance or financial responsibility reflecting the new company name. The conversion must be approved by the Texas Secretary of State before the supplemental application is filed.

(6) Change in drug-testing consortium status. A motor carrier that changes consortium status shall file a supplemental application that includes the names of the persons operating the consortium.

(7) Retaining a revoked or suspended certificate of registration number. A motor carrier may retain a prior certificate of registration number by:

(A) filing a supplemental application to re-register instead of filing an original application; and

(B) providing adequate evidence that the carrier has satisfactorily resolved the facts that gave rise to the suspension or revocation.

(g) Change of ownership. A motor carrier must file an original application for registration when there is a corporate merger or a change in the ownership of a sole proprietorship or of a partnership.

(h) Alternative vehicle registration for household goods agents. To avoid multiple registrations of a commercial motor vehicle, a household goods agent's vehicles may be registered under the motor carrier's certificate of registration under this subsection.

(1) The carrier must notify the department on a form approved by the director of its intent to register its agent's vehicles under this subsection.

(2) When a carrier registers vehicles under this subsection, the carrier's certificate will include all vehicles registered under its agent's certificates of registration. The carrier must register under its certificate of registration all vehicles operated on its behalf that do not appear on its agent's certificate of registration.

(3) The department may send the carrier a copy of any notification sent to the agent concerning circumstances that could lead to denial, suspension, or revocation of the agent's certificate.

(i) 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.

§18.14.Expiration and Renewal of Commercial Motor Vehicle Registration.

(a) Expiration and renewal dates.

(1) A motor carrier with annual or biennial registration, 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:

Figure: 43 TAC §18.14(a)(1) (No change.)

(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.

(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, 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:

(A) supply any new information required under §18.13(f) of this subchapter if the information has not previously been supplied to the department;

(B) include a $10 fee for each vehicle, other than a tow truck, requiring registration or $25 for each tow truck that the carrier operates under an annual certificate of registration and a $20 fee for each vehicle, other than a tow truck, requiring registration or $50 for each tow truck that the carrier operates under a biennial certificate of registration; and

(C) include a copy of the Single State Registration receipt when requesting that vehicle fees paid under §18.17 of this subchapter be applied toward the fees specified by this subsection.

(2) Seven day and 90 day registrations may not be renewed.

(3) A motor carrier shall maintain continuous insurance or evidence of financial responsibility in an amount at least equal to the amount prescribed under §18.16 of this subchapter.

(4) The insurance cab card issued to a motor carrier is valid for the same period as the motor carrier's certificate of registration.

(5) To renew registration after it has expired, a motor carrier must identify its vehicles on a form prescribed by the director, pay all vehicle fees, and if current proof of insurance is not on file with the division, meet all insurance requirements.

§18.16.Insurance Requirements.

(a) Automobile liability insurance requirements.

(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.

(b) Cargo insurance.

(1) Household goods carriers shall file and maintain with the department proof of financial responsibility.

(A) The minimum limits of financial responsibility for a household goods carrier for hire is $5,000 for loss or damage to a single shipper's cargo carried on any one motor vehicle.

(B) The minimum limits of financial responsibility for a household goods carrier for hire is $10,000 for aggregate loss or damage to multiple shipper cargo carried on any one motor vehicle. In cases in which multiple shippers sustain damage and the aggregate amount of cargo damage is greater than the cargo insurance in force, the insurance company shall prorate the benefits among the shippers in relationship to the damage incurred by each shipper.

(2) Tow truck company performing nonconsent tows. A tow truck company that performs nonconsent tows shall file and maintain with the department proof of financial responsibility for on-hook cargo. The minimum level of financial responsibility for each registered vehicle performing nonconsent tows will be in the amount of at least $50,000.

(c) Workers' compensation or accidental insurance coverage.

(1) A motor carrier that is required to register under this subchapter and whose primary business is transportation for compensation or hire between two or more incorporated cities, towns, or villages shall provide workers' compensation for all its employees or accidental insurance coverage in the amounts prescribed in paragraph (2) of this subsection.

(2) Accidental insurance coverage required by paragraph (1) of this subsection shall be at least in the following amounts:

(A) $300,000 for medical expenses and coverage for at least 104 weeks;

(B) $100,000 for accidental death and dismemberment, including 70% of employee's pre-injury income for not less than 104 weeks when compensating for loss of income; and

(C) $500 for the maximum weekly benefit.

(d) Qualification of motor carrier as self-insured.

(1) General qualifications. A motor carrier may meet the insurance requirements of subsections (a) and (b) of this section by filing an application, in a form prescribed by the department, to qualify as a self-insured. The application must 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. The department may accept United States Department of Transportation evidence of the motor carrier's qualifications as a self-insured.

(2) Adopted final orders. The department adopts all final orders of the Railroad Commission of Texas to the extent that they concern self-insurance and were in effect on August 31, 1995. Those final orders are continued in effect until changed by order of the department.

(3) Applicant guidelines. In addition to filing an application as prescribed by the department, an applicant for self-insured status must submit materials that will allow the department to determine the following information.

(A) Applicant's net worth. An applicant's net worth must be adequate in relation to the size of its operations and the extent of its request for self-insurance authority. The applicant must demonstrate that it can and will maintain an adequate net worth.

(B) Self-insurance program. An applicant must 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 must submit evidence of substantial compliance with the Federal Motor Carrier Safety Regulations as adopted by the Texas Department of Public Safety and with Transportation Code, Chapter 644.

(4) Other securities or agreements. The department may accept an application for approval of a security or agreement if satisfied that the security or agreement offered will adequately protect 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 the status of its self-insurance program while the motor carrier is self-insured.

(6) Duration of self-insured status. The department may approve an applicant as a self-insured for any specific time or for an indefinite time.

(7) Revocation of self-insured status. On receiving evidence that a self-insured motor carrier's financial condition has changed, that its safety program or record is inadequate, or that it is otherwise not in compliance with this subchapter, the department may at any time require the self-insured to provide additional information. On 10 days notice from the department, the self-insured shall 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. The self-insured shall also demonstrate that it remains in compliance with the requirements of this section and of any active self-insurance orders issued or adopted by the department. If an applicant fails to comply with this paragraph, its self-insured status may be revoked.

(8) Appeal. An applicant may appeal a denial or revocation of self-insurance status by filing a petition for an administrative hearing in accordance with §§1.21 et seq. of this title (relating to Procedures in Contested Cases).

(e) Filing proof of insurance with the department.

(1) Forms.

(A) A motor carrier, 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.

(B) A household goods carrier shall file and maintain proof of cargo insurance for its cargo at all times. This proof shall be on a form acceptable to the director.

(C) A tow truck company that performs nonconsent tows shall file and maintain with the department proof of on-hook cargo insurance for all nonconsent tows. This proof shall be on a form acceptable to the director.

(2) Filing proof of insurance and financial responsibility. A motor carrier's insurance or surety company, bank, or other financial institution shall file and maintain proof of insurance or financial responsibility on a form acceptable to the director:

(A) at the time of the original application for motor carrier certificate of registration;

(B) on or before the cancellation date of the insurance coverage as described in subsection (f) of this section;

(C) when the motor carrier changes insurers;

(D) when the motor carrier asks to retain the certificate number of a revoked certificate of registration;

(E) when the motor carrier changes its name under §18.13(f)(2) of this subchapter;

(F) when the motor carrier, under subsection (a) of this section, changes the classification of the cargo being transported; and

(G) when replacing another active insurance filing.

(3) Filing fee. Each certificate of insurance or proof of financial responsibility filed with the department for the coverage required under this section shall be accompanied by a nonrefundable filing fee of $100. This fee applies both when the carrier submits an original application and when the carrier submits a supplemental application when retaining a revoked certificate of registration number.

(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 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.

(f) Cancellation of insurance coverage. Except when replaced by another acceptable form of insurance coverage or proof of financial responsibility approved by the department, no insurance coverage shall be canceled or withdrawn until 30 days after notice has been given to the department by the insurance company in a form approved by the department. Nonetheless, proof of insurance coverage for a seven day or 90 day certificate of registration may be canceled by the insurance company without 30 days notice if the certificate of registration is expired, suspended, or revoked, and the insurance company provides a cancellation date on the proof of insurance coverage. The department will revoke a certificate of registration under §18.72 of this chapter for failure to maintain proof of current insurance.

(g) Replacement insurance filing. The department will consider a new insurance filing as the current record of financial responsibility required by this section if:

(1) the new insurance filing is received by the department; and

(2) a cancellation notice has not been received for previous insurance filings.

(h) Insolvency of insurance carrier. If the insurer of a motor carrier becomes insolvent or becomes involved in a receivership or other insolvency proceeding, the motor carrier must file an affidavit with the department. The affidavit must be executed by an owner, partner, or officer of the motor carrier and show that:

(1) no accidents have occurred and no claims have arisen during the insolvency of the insurance carrier; or

(2) all claims have been satisfied.

(i) Notifications. The department shall notify the Texas Department of Public Safety and other law enforcement agencies of each motor carrier whose certificate of registration has been revoked for failing to maintain liability insurance coverage.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602398

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-8683


43 TAC §18.18

STATUTORY AUTHORITY

The repeal is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §643.003, which allows the department to adopt rules to administer Chapter 643 regarding motor carrier registration; and Occupations Code, §2303.051, which provides the commission with the authority to establish rules regarding vehicle storage facilities.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 643, and Occupations Code, Chapter 230.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602399

Bob Jackson

Deputy General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-8683


Subchapter E. CONSUMER PROTECTION

43 TAC §§18.51, 18.58, 18.63 - 18.65

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §643.003, which allows the department to adopt rules to administer Chapter 643 regarding motor carrier registration; and Occupations Code, §2303.051, which provides the commission with the authority to establish rules regarding vehicle storage facilities.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 643, and Occupations Code, Chapter 230.

§18.65.Tariff Registration.

(a) Submission. In accordance with Transportation Code, §643.153, a household goods carrier and/or its household goods agent shall file a tariff with the department. The tariff shall establish maximum rates and charges for transportation services when 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 §18.64 of this title (relating to Rates) shall file a tariff individually. In lieu of filing individually, a household goods carrier or its household goods agent, that is a member of an approved association in accordance with §18.64 of this title (relating 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) may provide for the offering, selling, or procuring of insurance as provided in §18.54 of this title (relating to Selling Insurance to Shippers);

(C) may 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 from the household goods carrier is not issued to the shipper at the time of purchase;

(D) shall describe the procedure for determining charges that are below the maximum rate for each service performed; and

(E) shall reference a specific mileage guide or source, 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 database as a mileage guide, the household goods carrier shall allow department personnel free access to the system when conducting an inquiry regarding a specific movement performed by the household goods carrier).

(2) Interstate tariff. In accordance with Transportation Code, §643.153, 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; and

(v) the tariff number; and

(C) 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 not less than 10 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.

(8) Electronic filings. A household goods carrier may file an electronic copy of its tariff provided that the document is consistent with the provision of this subsection and is formatted in Microsoft Word or other format approved by the director.

(b) Operations. The department will accept a tariff which is in substantial compliance with this section if the tariff was submitted prior to November 1, 1995.

(c) Access. In accordance with Transportation Code, §643.153, tariffs filed in accordance with this section will be made available for public inspection at the Motor Carrier Division, 4203 Bull Creek Road, Building 22, Austin, Texas, 78731, and by calling 1-800-299-1700.

(d) Conflicts. All provisions of household goods carriers' tariffs are superseded to the extent they may conflict with the provisions of this chapter.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602401

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-8683


Subchapter G. VEHICLE STORAGE FACILITIES

43 TAC §§18.82, 18.87 - 18.93, 18.96

STATUTORY AUTHORITY

The amendments are adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, §643.003, which allows the department to adopt rules to administer Chapter 643 regarding motor carrier registration; and Occupations Code, §2303.051, which provides the commission with the authority to establish rules regarding vehicle storage facilities.

CROSS REFERENCE TO STATUTE

Transportation Code, Chapter 643, and Occupations Code, Chapter 230.

§18.92.Technical Requirements.

(a) Release of vehicles. The licensee shall comply with the following requirements when releasing vehicles.

(1) The licensee shall comply with all provisions of Texas Transportation Code, Chapter 685, relating to the rights of the owner of a stored vehicle, including providing the name, address, and telephone number of:

(A) the justice court that has jurisdiction in the precinct in which the vehicle storage facility is located; and

(B) the name, address and telephone number of the person or law enforcement agency that authorized the tow.

(2) The licensee shall provide the owner or the owner's representative with a tow ticket or wrecker slip as prescribed in §18.88 of this subchapter.

(3) Except as provided in subsection (a)(8) of this section, the licensee shall allow the vehicle owner or his/her authorized representative to obtain possession of the vehicle at any time between the hours listed on the facility information sign posted as described in §18.91(d)(1) of this subchapter, upon payment of all fees due, presentation of valid identification (Texas drivers license or other state or federally issued photo identification), and upon presentation of:

(A) a notarized power-of-attorney;

(B) a court order;

(C) a certificate of title;

(D) a tax collector's receipt and a vehicle registration renewal card accompanied by a conforming identification;

(E) notarized proof of loss claim of theft from an insurance company to show a right to possession;

(F) positive name and address information corresponding to that contained in the files of the department's Vehicle Titles and Registration Division; or

(G) a department approved Affidavit of Right of Possession and Control, as defined in §18.82 of this subchapter, which is to be furnished by the licensee upon request (an Affidavit of Right of Possession and Control is not to be used as a repossession instrument).

(4) All 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.

(5) If a vehicle storage facility 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 midnight 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 midnight, and refusal to release after that time, even with notice after 11:00 p.m., is not a violation of this section.

(6) In addition to other forms of payment accepted by the vehicle storage facility, one of the following must be accepted for any charge associated with delivery or storage of a vehicle:

(A) credit card;

(B) debit card; or

(C) electronic check.

(7) the licensee may not refuse to release the vehicle to the vehicle's owner due to nonpayment by the law enforcement agency that directed the towing and storage of the vehicle for evidentiary or examination purposes.

(8) Pursuant to 37 TAC §4.16, relating to commercial vehicle regulations and enforcement procedures, a commercial motor vehicle stored at the direction of the Texas Department of Public Safety shall not be released until the amount of delinquent administrative penalty assessed against the motor carrier has been paid.

(b) Notification of insurance information. Upon request by the vehicle owner or the vehicle owner's authorized representative, the licensee shall provide the name, address, and telephone number of the insurance company that is providing required garage keeper's legal liability insurance coverage to the facility, in addition to the facility's insurance policy or certificate number for purposes of filing a claim for loss or damage of property. The insurance information shall be the same as that on file with the department.

(c) Publicly listed telephone number. All 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.

(d) 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 vehicle storage facility shall note on its records the correct number and notify every previously advised person within 48 hours of noting the correct information.

(e) 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 vehicle storage facility. Vehicles may be dismantled or demolished only if the storage lot has a certificate of title, certificate of authority to demolish, police auction sales receipt, or transfer document issued by the State of Texas for the vehicle being dismantled or demolished.

(f) Use of stored vehicles. No stored vehicle may be utilized for personal or business use without the written consent of the vehicle's owner.

(g) Reasonable storage efforts. A vehicle storage facility operator shall make reasonable efforts necessary for the storage of a vehicle, such as locking doors, rolling up windows, and closing doors, hatchbacks, sun roofs, trunks, hoods, or convertible tops. Such actions are included in the storage fee as set forth in §18.93 of this subchapter.

(h) Impoundment of stored vehicles. If doors, windows, convertible tops, hatchbacks, sun roofs, trunks, or hoods are broken or inoperative, materials such as plastic or canvas tarpaulins must be used to ensure the preservation of the stored vehicle. A vehicle storage facility operator is entitled to charge a fee for impoundment if, in addition to the requirements set out in this subsection, the vehicle storage facility operator, at a minimum:

(1) conducts a written inventory of any unsecured personal property contained in the vehicle;

(2) removes and stores all such property for which safekeeping is necessary, and specifies such removal and storage on the written inventory; and

(3) obtains motor vehicle registration information for the vehicle from the department.

(i) 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.

(j) Vehicle transfers. When a motor vehicle has been delivered to a vehicle storage facility, the vehicle may not be moved from that facility within the first 31 days of storage without the vehicle owner's authorization. If it becomes necessary to move the vehicle during the first 31 days of storage because of vehicle storage facility capacity problems, neither the registered vehicle owner nor recorded lienholder(s) may be assessed an additional charge. The vehicle storage facility must send notice in accordance with §18.87 of this subchapter, except that the notice must be sent no less than 72 hours prior to moving the vehicle. If a vehicle is moved from a vehicle storage facility, the licensee shall:

(1) charge only those fees otherwise permitted by §18.93 of this subchapter after the vehicle is towed to another location without the vehicle owner's permission;

(2) retain records and inform the vehicle owner upon request of the location where the vehicle is at all times from the date on which the vehicle is transferred from the vehicle storage facility until such time as the vehicle is recovered by the vehicle owner, or a new certificate of title, a certificate of authority to demolish, a police auction sales receipt, or a transfer document is issued by the State of Texas; and

(3) 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.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602402

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: December 2, 2005

For further information, please call: (512) 463-8683


Chapter 21. RIGHT OF WAY

Subchapter B. UTILITY ADJUSTMENT, RELOCATION, OR REMOVAL

43 TAC §21.23

The Texas Department of Transportation (department) adopts new §21.23 concerning state participation for utility adjustments, relocations, or removals made on toll-related facilities. New §21.23 is adopted without changes to the proposed text as published in the February 10, 2006, issue of the Texas Register (31 TexReg 839) and will not be republished.

EXPLANATION OF ADOPTED NEW SECTION

House Bill 2702, 79th Legislature, Regular Session, 2005, amended Transportation Code, §203.092. The amendments to Transportation Code, §203.092, require the department and utilities to share equally the costs of utility adjustments, relocations, or removals made prior to September 1, 2007 on toll-related state highway improvements.

The new section is necessary to implement this legislation and to establish procedures concerning reimbursement of public utilities for facility adjustments, relocations, or removals undertaken on toll-related facilities.

In order to ensure that eligible costs are properly incurred and tracked, new §21.23 requires a utility that is relocating facilities on a toll-related facility to enter into an agreement with the department or, under certain circumstances, a department contractor, prior to commencing work. Eligibility to enter an agreement is determined by the department or its contractor based on the existence of a conflict between a utility's facility and the proposed toll facility. If a dispute arises as to a utility's eligibility, a utility may appeal to the Director of the Right of Way Division. The section also establishes eligible relocation costs in accordance with Transportation Code, §203.092(d). To be consistent with the September 1, 2007 expiration of the reimbursement authorization in Transportation Code, §203.092, §21.23, paragraph (2) of subsection (d), limits reimbursement eligibility to those costs actually incurred prior to September 1, 2007.

COMMENTS

No comments on the proposed new section were received.

STATUTORY AUTHORITY

The new section is adopted under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and more specifically, Transportation Code, Chapter 203, which authorizes the commission to construct a modern state highway system.

CROSS REFERENCE TO STATUTE

Transportation Code, §203.092.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 28, 2006.

TRD-200602403

Richard D. Monroe

General Counsel

Texas Department of Transportation

Effective date: May 18, 2006

Proposal publication date: February 10, 2006

For further information, please call: (512) 463-8683