EMERGENCY RULESAn agency may adopt a new or amended section or repeal an 
existing section on an emergency basis if it determines that such action is 
necessary for the public health, safety, or welfare of this state. The section 
may become effective immediately upon filing with the Texas Register, or on a 
stated date less than 20 days after filing and remaining in effect no more than 
120 days. The emergency action is renewable once for no more than 60 additional 
days.
Symbology in amended emergency sections. New language added to an existing 
section is indicated by the use of bold text. [Brackets] indicate deletion of 
existing material within a section.

TITLE 43. TRANSPORTATION
PART I. Texas Department of Transportation
CHAPTER 9.Contract Management
SUBCHAPTER B.Highway Improvement Contracts
43 TAC sec.9.19
The Texas Department of Transportation adopts on an emergency basis amendments 
to sec.9.19, concerning emergency contract procedures for highway improvement 
projects. 
Transportation Code, Chapter 223, Subchapter C authorizes the department to 
award a highway improvement contract on an emergency basis, in accordance with 
rules adopted by the commission, when a determination of a highway emergency is 
made. A highway emergency is defined in that subchapter as including a situation 
or condition of a designated state highway that poses an imminent threat to life 
or property of travelers. 
The commission, on July 28, 1994, proposed the adoption of new sec.sec.9.10-
9.19, concerning Highway Improvement Contracts and, on October 27, 1994, adopted 
those sections with changes to the proposed text. Electronic filing of the final 
rules with the Texas Register inadvertently omitted a portion of sec.9.19 and, 
as a result, did not accurately reflect the provisions of that section as 
adopted by the commission. 
The amendments to sec.9.19 provide that after an emergency is certified, the 
district engineer will review the department's file of available bidders and, if 
there is a sufficient number of firms, notify at least three of the proposed 
emergency contractors of the emergency. The district engineer will also inform 
each prospective bidder of the nature of the emergency and will furnish 
specifications for remedying the emergency, including any information needed to 
prepare a work plan and calculate the cost. 
The amendments to sec.9.19 also specify the bidding requirements for an 
emergency contract, including specifying the price for performing the work and a 
response to each bid item, and the procedures for letting the contract, 
including a requirement that the contract be awarded to the best bidder. The 
amendments define the best bidder as the firm best able to respond to the 
emergency in a timely manner and able to fulfill the state's priority needs. 
The amendments to sec.9.19 finally specify required terms and conditions of an 
emergency contract, including requirements that the contracts be made in the 
name of the State of Texas and contain a certification of emergency, and provide 
exceptions to contract, bond, and insurance requirements. 
It is necessary to adopt these amendments to sec.9.19 on an emergency basis in 
order to prevent an imminent threat to life or property of travelers when a 
highway emergency exists and to comply with the requirements of Transportation 
Code, Chapter 223. 
The amendments are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation and Transportation Code, Chapter 223, Subchapter C, which 
authorizes the Texas Department of Transportation to award a highway improvement 
contract on an emergency basis in accordance with rules adopted by the Texas 
Transportation Commission. 

sec.9.19.Emergency Contract Procedures.
(a)-(c) (No change.) 
(d) Notification of prospective bidders. 
<nl>(1)<ol>After an emergency is certified, the district engineer will review 
the department's file of eligible bidders and, if there is a sufficient number 
of firms, notify at least three of the proposed emergency contractors. 
<nl>(2)<ol> <nl> Consistent with and contingent upon the nature of the 
emergency, the district engineer may contact prospective bidders by telephone, 
letter, telefacsimile, or other appropriate form of communication. <ol>
<nl>(3)<ol> <nl> The district engineer will inform each prospective bidder of 
the nature of the emergency and furnish specifications for the remedy, including 
time constraints, bonding and insurance requirements, and any additional 
information needed for the prospective bidder to prepare a work plan and 
calculate the cost. <ol>
<nl>(4)<ol> <nl> If no eligible contractor is able to provide the required type 
of service, the district engineer may take any measure necessary to identify and 
locate an available contractor who is able to provide the required service. If 
selected, the prospective contractor thus identified must complete the bidder's 
questionnaire prior to final approval of the award. <ol>
<nl>(e)<ol> <nl>Bidding requirements. <ol>
<nl>(1)<ol> <nl>A prospective bidder's response must be in writing and must 
include: <ol>
<nl>(A)<ol> <nl> a price for performing the work; and <ol>
<nl>(B)<ol> <nl> a response to each item in the district engineer's 
specifications if the price is based on other than unit price. <ol>
<nl>(2)<ol> <nl> If the district engineer so authorizes, the prospective bidder 
may submit an oral bid which must be confirmed in writing within 24 hours. <ol> 
<nl>(f)<ol> <nl>Letting
procedures.<ol>
<nl>(1)<ol> <nl>The district engineer will review the bids and, if awarded, 
shall award the contract to the best bidder and document the basis for the 
award. As used in this subsection, the best bidder is that firm best able to 
respond to the emergency in a timely manner and fulfill the state's priority 
needs as determined by the district engineer. <ol>
<nl>(2)<ol> <nl> Each bidder will be notified as soon as possible after the 
award is made, with written confirmation to follow. <ol>
<nl>(g)<ol> <nl>Contract.<ol>
<nl>(1)<ol> <nl>The department shall prescribe the form of the emergency 
contract and may include therein such matters and specifications as it deems 
advantageous to the state, including but not limited to provisions which address 
the specifications for completion of work, cost to perform the work, the basis 
for payment, time period needed to complete the work, control of work, insurance 
and bonding requirements, and any general or special conditions mutually agreed 
upon by the department and the contractor. <ol>
<nl>(2)<ol> <nl> Each such contract shall be made in the name of the State of 
Texas, signed by the executive director or his designee not below the level of 
district engineer on behalf of the department, and signed by the contracting 
party.<ol>
<nl>(3)<ol> <nl> The contractor must furnish satisfactory proof of insurance and 
bonds before any work is performed. <ol>
<nl>(4)<ol> <nl> The contract must be fully executed before any work is begun. 
<ol>
<nl>(5)<ol> <nl> The certification required in subsection (a) of this section 
must be attached to the contract. <ol>
<nl>(h)<ol> <nl>Exceptions. If the district engineer determines that the 
magnitude and extremity of the emergency require instantaneous action by the 
contractor in order to alleviate an immediate detrimental impact on public 
health and safety, and the executive director has so noted in the certification 
of the emergency, the following exceptions are permitted. <ol>
<nl>(1)<ol> <nl>The district engineer may authorize the contractor to begin 
work: <ol>
<nl>(A)<ol> <nl> without a signed contract, provided the contract is signed 
within 24 hours after work begins; and <ol>
<nl>(B)<ol> <nl> without bonds and proof of insurance, provided they are 
furnished not more than three days after work begins. <ol>
<nl>(2)<ol> <nl> The executive director or deputy executive director may 
authorize the waiving of bonds or insurance requirements if it is determined 
that such requirements cannot be met prior to completion of the work or would 
prevent the timely performance of work to the detriment of public health, 
safety, or welfare.<ol>
<nl>(i)<ol> <nl>Reports to the commission. Not later than 24 hours after the 
contract is awarded, the district engineer shall notify the executive director 
of the award of the emergency contract. Not later than the fifth working day 
following the date on which the contract is awarded, the executive director 
shall furnish each member of the commission written notification of the details 
of the emergency conditions and the award. <ol>
Issued in Austin, Texas, on September 5, 1997. 
TRD-9711775
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630

CHAPTER 18.Motor Carriers
The Texas Department of Transportation adopts on an emergency basis amendments 
to sec.18.1, sec.18.2, sec.18.10, sec.18.13, sec.18.14, sec.18.16, sec.18.31, 
sec.18.32, sec.sec.18.51-18.54, sec.18.56, and sec.sec.18.70-18.72, concerning 
motor carrier registration and also new sec.18.19, relating to Short-term Lease 
and Substitute Vehicles. 
Senate Bill 370, 75th Legislature, 1997, amended Texas Civil Statutes, Article 
6675c, to: require the department to provide written notice to motor carrier 
registrants at least 30 days prior to registration expiration; allow the 
department to place a motor carrier registrant on probation in lieu of 
suspension or revocation of registration; prohibit the department from 
restricting competitive bidding or advertising by a motor carrier except to 
prohibit false, misleading, or deceptive practices; require the department to 
adopt simplified procedures for the registration of motor carriers transporting 
household goods as agents for carriers required to register under this article; 
amend consumer protection requirements for shippers of household goods; require 
motor carriers transporting household goods to list a place of business with a 
street address in this state and the carrier's registration number issued under 
this article in any printed advertising published in this state; require certain 
motor carriers transporting household goods to file proof of cargo insurance in 
amounts to be determined by the department that do not exceed the amount 
required for a motor carrier transporting household goods under federal law; 
require the department to allow alternative proof of financial responsibility 
through surety bonds, letters of credit, or other means satisfactory to the 
department for contractual obligations to customers that do not exceed $5,000 
aggregate loss or damage to total cargo shipped at one time; require the 
department to determine reasonable provisions governing limitation of liability 
for loss or damage not to exceed 60 cents per pound per article; and require 
motor carriers who are not required to register under Texas Civil Statutes, 
Article 6675c (3) to register their operations before transporting household 
goods for compensation, and requires the department to charge a fee for such 
registration. 
Further, Senate Bill 370, 75th Legislature, adds new Texas Civil Statutes, 
Article 6675c-2, relating to Foreign Commercial Motor Transportation, which: 
defines the words and terms as used in this article; states that the boundaries 
of a border commercial zone may be modified or established only as provided by 
federal law; and requires the department to adopt rules that conform with 
federal statutes requiring motor carriers operating foreign commercial motor 
vehicles in this state to maintain proof of financial responsibility. 
House Bill 1418, sec.1, 75th Legislature, amended Texas Civil Statutes, Article 
6675c to: modify consumer protection requirements for shippers of household 
goods; require motor carriers who are not required to register under Section 3 
of this article to register their operations before transporting household goods 
for compensation; provide that the department shall determine the forms and 
procedures for such registration, and shall charge a fee that does not exceed 
the total of fees imposed by Section 3 or this article; and prescribe that a 
person commits an offense if the person solicits the transportation of household 
goods for compensation without being registered as required by this article. 
Senate Bill 1486, 75th Legislature, further amended Texas Civil Statutes, 
Article 6675c to exempt from motor carrier registration motor vehicles used to 
transport passengers which are 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, governmental entity, or 
similar organization. This legislation also exempts short-term lease vehicles 
from normal motor carrier registration requirements and authorizes the 
department to provide for the operation of short term lease vehicles under 
flexible registration procedures. 
Section 18.1, describes the purpose of Chapter 18 and has been amended to 
encompass requirements recently enacted under the aforementioned legislative 
bills. Section 18.2, Definitions, has been amended to define new words and terms 
relevant to this chapter. 
Section 18.10, describes the purpose of Subchapter B and has been amended to 
include references to requirements newly adopted under the aforementioned 
legislative bills. Section 18.13, Application for Motor Carrier Registration, 
has been amended to include registration requirements for leasing businesses, 
household goods agents, and household goods carriers who are not required to 
register under Texas Civil Statutes, Article 6675c, (3). Section 18.14, 
Expiration and Renewal of Commercial Motor Carrier Registration, has been 
amended to provide renewal and expiration procedures for household goods 
carriers who are not required to register under Texas Civil Statutes, Article 
6675c (3). 
Section 18.16, Insurance Requirements, has been amended to prescribe insurance 
and proof of financial responsibility requirements for household goods carriers 
who are not required to register under Texas Civil Statutes, Article 6675c(3) 
and commercial motor vehicles operated by foreign motor carriers. 
New sec.18.19, Short-term Lease and Substitute Vehicles, provides the 
requirements under which a short-term leasing business shall register with the 
department, including application, registration, proof of contingency liability 
insurance, substitute vehicles, and identification. 
Section 18.31, Investigation and Examination of Records, has been amended to 
reference provisions of the recently enacted legislation and to describe how 
household goods carriers shall provide information concerning their agents.
Section 18.32, Records, has been amended to include records requirements for 
household goods carriers not required to register under Texas Civil Statues, 
Article 6675c (3). 
Section 18.51, Household Goods Agents, has been amended to prescribe how such 
carriers shall notify the department of its agreements with agents and how 
agents shall notify shippers of the name or trade name of the household goods 
carrier. Section 18.52, Rates, has been amended to reference provisions of the 
previously cited legislation. 
Section 18.53, Tariff Registrations, has been amended to reference provisions of 
the new legislation. Section 18.54, Transportation Standards, has been amended 
to provide procedures for household goods carriers not required to register 
under Texas Civil Statutes, Article 6675c (3) to provide estimates of costs to 
shippers, and describes information to be provided on estimates, bills of 
lading, contracts or receipts. 
Section 18.56, Liability of Carriers, has been modified to prescribe liability 
for loss or damage to cargo for household goods carriers not required to 
register under Texas Civil Statutes, Article 6675c, Section 3. Section 18.58, 
Information for Shippers, has been amended to provide that household goods 
carriers shall not be restricted from using additional names or trade names. 
Section 18.70, Purpose, describes the purpose of Subchapter F, which is to 
provide for an efficient and effective system of enforcement of Texas Civil 
Statutes, Articles 6675c and 6675c-1, which has been amended to provide for 
probation in lieu of revocation or suspension of motor carrier and leasing 
business registrations. Section 18.71, Administrative Penalties, has been 
amended to reference the provisions of the new legislation. 
Section 18.72, Suspension and Revocation, has been amended to provide for 
probation of a registration issued under Texas Civil Statutes, Article 6675c(3) 
in lieu of revocation or suspension, and provides that the failure of a leasing 
business or motor carrier to provide proof of financial responsibility is 
grounds for action under this section. 
Adoption on an emergency basis is necessary in order to implement the provisions 
of Senate Bill 370, Senate Bill 1486, and House Bill 1418, 75th Legislature, 
1997, by their September 1, 1997 effective date, and to ensure the proper 
administration of the laws concerning the regulation of motor carriers and 
leasing businesses, thereby protecting the safety of the traveling public, 
safeguarding the shippers of goods transported by household goods carriers, and 
ensuring that the for-hire household goods carrier industry and those associated 
with this industry are not seriously adversely affected by a disruption caused 
by the new regulatory requirements by alleviating the potential for imminent 
economic peril to for-hire household goods carriers by providing a mechanism for 
registration which will allow the continued operation of such carriers.

SUBCHAPTER A.General Provisions
43 TAC sec.18.1, sec.18.2
The amendments are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation, and more specifically Texas Civil Statutes, Articles 6675c 
and 66575c-2, which authorize the department to adopt rules to administer the 
regulation of motor carriers. 

sec.18.1.Purpose.
Texas Civil Statutes, Articles 6675c, 6675c-1, <nl> 6675c-2,<ol> 911m, and 6687-
9a, require the department to regulate motor carriers, <nl>leasing businesses as 
defined in sec.18.2 of this title (relating to Definitions),<ol> motor 
transportation brokers, and vehicle storage facilities, in order to protect the 
welfare of the public and ensure fair treatment of consumers by household goods 
carriers. The sections under this chapter prescribe the policies and procedures 
for the regulation of motor carriers, <nl>leasing businesses,<ol> transportation 
brokers, and vehicle storage facilities by providing for insurance limits, the 
issuance of motor carrier credentials, the licensing of vehicle storage 
facilities, the filing of performance bonds for transportation brokers, audit 
and record keeping functions, and enforcement. 

sec.18.2.Definitions.
The following words and terms, when used in this chapter shall have the 
following meanings, unless the context clearly indicates otherwise. 
Commercial motor vehicle - 
(A) Includes: 
(i)-(ii)<ol> (No change) 
(iii)<ol> any vehicle, including buses, designed to transport more than 15 
passengers, including the driver <nl>;<ol> [, operating for compensation or 
hire, beyond any incorporated town or city and its suburbs; and] 
(iv)<ol> any vehicle used in the transportation of hazardous materials in a 
quantity requiring placarding under the regulations issued under the federal 
Hazardous Materials Transportation Act (Title 49, United States Code, App. 
sec.sec.1801-1813); <nl> and<ol> 
<nl>(v)<ol> <nl>a commercial motor vehicle, as defined by 49 Code of Federal 
Regulations sec.390.5, that is owned or controlled by a person or entity that is 
domiciled in or a citizen of a country other than the United States. <ol>
(B) Does not include: 
(i)<ol> a farm vehicle, as defined in this section, with a gross weight, 
registered weight, <nl> and<ol> [or] gross weight rating of less than 48,000 
pounds; 
(ii)<ol> (No change.) 
(iii)<ol> a vehicle registered with the Railroad Commission pursuant to Texas 
Natural Resources Code, sec.113.131 and sec.116.072; [and] 
(iv)<ol> a vehicle transporting liquor under a private carrier permit issued in 
accordance with Alcoholic Beverage Code, Chapter 42<nl>; and<ol> 
<nl>(v)<ol><ol> <nl>a motor vehicle used to transport passengers 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, governmental entity, or similar organization. <ol>
<nl>Household goods agent<ol><nl> - A motor carrier who transports household 
goods on behalf of another motor carrier. <ol>
Household goods carrier - A motor carrier required to register with the 
department under subchapter B of this chapter (relating to Motor Carrier 
Registration) who transports household goods <nl> for compensation or hire in 
furtherance of a commercial enterprise, except when transporting in furtherance 
of their primary business which is a non-transportation business<ol>. 
<nl>Leasing business<ol><nl> - A person that leases vehicles requiring 
registration under this subchapter to a motor carrier required to be registered. 
<ol>
<nl>Short-term lease <ol><nl> - A lease of 30 days or less.<ol>
<nl>Substitute vehicle <ol><nl> - A vehicle used as a temporary replacement for 
a short-term lease vehicle that has been taken out of service due to 
maintenance, repair, or other unavailability of the vehicle. <ol>
<nl>Type A household goods carrier<ol> <nl> - A household goods carrier who 
utilizes at least one vehicle or a combination of vehicles with a gross weight, 
registered weight, or gross weight rating in excess of 26,000 pounds. <ol>
<nl>Type B household goods carrier <ol> <nl>- A household goods carrier who 
utilizes exclusively vehicle(s) or combination(s) of vehicles with a gross 
weight, registered weight, or gross weight rating equal to or less than 26,000 
pounds. <ol> 
Issued in Austin, Texas, on September 5, 1997.
TRD-9711754
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER B.Motor Carrier Registration
43 TAC sec.sec.18.10, 18.13, 18.14, 18.16 18.19
The amendments and new section are adopted on an emergency basis under 
Transportation Code, sec.201.101, which provides the Texas Transportation 
Commission with the authority to establish rules for the conduct of the work of 
the Texas Department of Transportation, and more specifically Texas Civil 
Statutes, Articles 6675c and 66575c-2, which authorize the department to adopt 
rules to administer the regulation of motor carriers. 

sec.18.10.Purpose.
Texas Civil Statutes, Article 6675c, provides that a motor carrier may not 
operate a commercial motor vehicle or a tow truck on a road or highway of this 
state unless the carrier registers with the department. This subchapter 
prescribes the procedures by which a motor carrier <nl> or leasing business<ol> 
may <nl>register<ol> [obtain a certificate of registration], sets out minimum 
insurance requirements and minimum workers' compensation or accident insurance 
requirements, and prescribes procedures for registering as a motor carrier under 
the single state registration system. 

sec.18.13.Application for Motor Carrier Registration. 
(a) Form of application. <nl>Except as provided in subsection (f) of this 
section, all applications<ol> [The application] for motor carrier registration 
shall be in the form prescribed by the director and shall contain, at a minimum, 
the following information. 
(1)-(11) (No change.)
(b)-(d) 
<nl>(e)<ol> <nl>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 in accordance with this subsection. <ol>
<nl>(1)<ol> <nl>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. 
<ol>
<nl>(2)<ol> <nl> When registering a vehicle under this subsection, a carrier's 
certificate includes all vehicles registered under its agents' 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.<ol>
<nl>(3)<ol> <nl> The department may send to a carrier registered under this 
subsection a copy of any notification sent to the agent concerning a change in 
the agent's motor carrier certificate of registration which could lead to 
denial, suspension, or revocation of the agent's certificate. <ol>
<nl>(f)<ol> <nl>Type B household goods carriers. An application for motor 
carrier registration submitted by a Type B household goods carrier, as defined 
in sec.18.2 of this title (relating to Definitions), shall be in the form 
prescribed by the director. <ol>
<nl>(1)<ol> <nl>The carrier's application shall contain all the information 
described in subsection (a) of this section, except for the information 
prescribed by subsection (a)(5), (7), and (8) of this section. <ol>
<nl>(2)<ol> <nl> An original certificate of registration will be issued by the 
department and must be continuously maintained at the registrant's principal 
place of business. <ol>
<nl>(3)<ol> <nl> A carrier must carry a copy of its certificate of registration 
in each vehicle used for the transportation of household goods. The certificate 
of registration serves as proof of cargo insurance provided proof of the 
insurance is filed with the department and the carrier is registered with the 
department. <ol>
<nl>(4)<ol> <nl> The carrier must notify the department in writing when it 
discontinues operations as a transporter of household goods. <ol>
<nl>(5)<ol> <nl> The certificate of registration maintained in the vehicle 
shall, upon demand, be presented by the driver to a department certified 
inspector or any other authorized government personnel for inspection in 
accordance with sec.18.31 of this title (relating to Investigation and 
Examination of Records). <ol>
<nl>(6)<ol> <nl> The certificate of registration is continuously in effect until 
canceled by the department through suspension or revocation. If the carrier 
wishes to cancel its certificate of registration, it must submit a written 
request for cancellation to the department. <ol>
<nl>(7)<ol> <nl> Any erasure, alteration, or unauthorized use of a certificate 
of registration shall render it void. <ol>
<nl>(8)<ol> <nl> The carrier may make a written request for a replacement 
certificate of registration.<ol>

sec.18.14.Expiration and Renewal of Commercial Motor Vehicle Registration.
(a) Expiration and renewal dates. 
<nl>(1)<ol> <nl>Motor carriers, other than Type B household goods carriers<ol>, 
[Each motor carrier] will be assigned an annual date for the expiration and 
renewal of its motor carrier registration according to the last digit of the 
carrier's certificate of registration number, as outlined in the following 
chart:
Figure 1: 43 TAC 18.14(a)(1) 
<nl>(2)<ol> <nl> Certificates of registration for Type B household goods 
carriers are effective until canceled, suspended, or revoked. <ol>
(b) Registration renewal. 
(1) The department will mail renewal notices to <nl> the last known address, 
according to the records of the department, of<ol> all registered motor 
carriers<nl>, other than Type B household goods carriers,<ol> approximately 45 
days prior to registration expiration. Failure to receive the notice does not 
relieve the registrant of the responsibility to renew. A motor carrier shall 
return the renewal to the department at least 15 days prior to the renewal date 
specified in subsection (a) of this section. All supplements to an application 
for motor carrier registration renewal shall: 
(A)-(B) (No change.) 
(2) (No change.)

sec.18.16.Insurance Requirements.
(a) <nl>Automobile liability insurance<ol> [Minimum] requirements. A motor 
carrier<nl>, other than a Type B household goods carrier,<ol> registered under 
this subchapter shall carry at least the minimum amount of <nl>automobile <ol> 
liability insurance and file proof of insurance with the department for each 
vehicle registered under this subchapter. Such insurance must be sufficient to 
pay, not more than the amount of the insurance, for each final judgment against 
the carrier (combined single limit) for bodily injury to or death of an 
individual per occurrence, and loss or damage to property (excluding cargo) per 
occurrence, or both. Minimum insurance levels shall be maintained in at least 
the amounts indicated in the following table. 
Figure 1: 43 TAC 18.16(a) 
(b) Cargo insurance. 
<nl>(1)<ol> A <nl>Type A household goods carrier<ol> [for-hire motor carrier of 
household goods] shall carry cargo insurance in the same amount required by 49 
U.S.C. sec.10102. The minimum limits of financial responsibility for household 
goods carriers for hire are as follows: 
<nl>(A)<ol> [(1)] loss or damage to total cargo shipped - $5,000; 
<nl>(B)<ol> [(2)] loss of or damage to total cargo carried on any one motor 
vehicle - $5,000; and 
<nl>(C)<ol> [(3)] aggregate loss or damage to cargo at one time - $10,000. 
<nl>(2)<ol> <nl> A Type B household goods carrier shall file and maintain with 
the department proof of financial responsibility for cargo in at least the 
amount of $5,000 for: <ol>
<nl>(A)<ol> <nl> loss or damage to total cargo shipped; <ol>
<nl>(B)<ol> <nl> loss of or damage to total cargo carried on any one motor 
vehicle; and <ol>
<nl>(C)<ol> <nl> aggregate loss or damage to cargo at one time. <ol>
(c) Workers' compensation or accidental insurance coverage.
(1) Motor carriers required to register under this subchapter <nl>whose primary 
business is transportation for compensation or hire, and who operate between two 
or more incorporated cities, towns, or villages,<ol> [with present operations 
that would have required certificates of public convenience and necessity for 
operations conducted prior to September 1, 1995,] shall provide for all its 
employees workers' compensation, or accidental insurance coverage in the amounts 
prescribed in paragraph (2) of this subsection. <nl>Provisions of this 
subsection do not apply to Type B household goods carriers.<ol> 
(2) (No change.) 
(d) (No change.) 
(e) Proof of insurance. 
(1) Proof of insurance. 
<nl>(A)<ol> A motor carrier<nl>, other than a Type B household goods 
carrier,<ol> shall maintain <nl>its vehicle registration listing as<ol> proof of 
insurance in <nl>its<ol> [their] vehicles at all times. This proof shall be in 
the form prescribed by the department and the Texas Department of Insurance 
(DOI) in coordination with the Texas Department of Public Safety.
<nl>(B)<ol> <nl> A Type 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 H 
or its successor as prescribed by the department and the Texas Department of 
Insurance (DOI).<ol>
<nl>(C)<ol> <nl> A Type B household goods carrier shall file and maintain proof 
of financial responsibility for its cargo at all times. Proof of financial 
responsibility may be made by filing proof of cargo insurance on a Form H or its 
successor as prescribed by the department and the Texas Department of Insurance 
(DOI). Alternatively, the proof of financial responsibility may be a surety 
bond, filed on a Form J or its successor as prescribed by the department and the 
DOI, or a letter of credit as described in paragraph (5) of this subsection. 
<ol>
(2) Filing proof of insurance <nl> and financial responsibility<ol>. A motor 
carrier's insurance or surety company<nl>, bank or other financial 
institution,<ol> shall file and maintain proof of insurance <nl>or financial 
responsibility<ol> on the appropriate form: 
<nl>(A)<ol> <nl> at initial application for motor carrier certificate of 
registration; <ol>
<nl>(B)<ol> [(A)] at initial registration of a vehicle; 
<nl>(C)<ol> [(B)] when the insurance carrier changes; 
<nl>(D)<ol> [(C)] when the ownership of the certificate changes; 
<nl>(E)<ol> [(D)] when the motor carrier changes its name under sec.18.13(d)(3) 
of this title (relating to Application for Motor Carrier Registration); and 
<nl>(F)<ol> [(E)] when the motor carrier, under subsection (a) of this section, 
changes the classification of the cargo being transported. 
(3) Filing fee. Each certificate of insurance <nl>or proof of financial 
responsibility<ol> filed with the department for the coverage required under 
this section shall be accompanied by a nonrefundable filing fee of $100. 
(4) (No change.) 
<nl>(5)<ol> <nl> Letters of credit as proof of financial responsibility for Type 
B household goods carriers' cargo. <ol>
<nl>(A)<ol> <nl> An irrevocable letter of credit will be accepted by the 
department if issued by a bank or financial institution whose deposits are 
guaranteed by the Federal Deposit Insurance Corporation. A letter of credit 
filed by a carrier must be signed or countersigned by an officer of the bank or 
financial institution and must comply with the following provisions at a 
minimum. <ol>
<nl>(i)<ol> <nl>The beneficiaries of the letter of credit must be designated 
clearly as cargo loss or damage claimants of the carrier. No other parties may 
have rights of recovery against the letter of credit. Payments under the letter 
of credit must be made directly to the cargo loss or damage claimant. <ol>
<nl>(ii)<ol> <nl> The letter of credit may not be revoked until all cognizable 
claims, arising during the time the carrier has authority from the department to 
use the letter of credit to satisfy cargo insurance requirements of this 
section, have been settled. <ol>
<nl>(iii)<ol> <nl> The letter of credit must state that the bank or financial 
institution will notify the department of cancellation of or change in the 
letter of credit. <ol>
<nl>(B)<ol> <nl> The carrier shall provide the department with copies of 
amendments or successor letters of credit no later than 30 days prior to the 
change. Any changes in the terms of the letter of credit must be given prior 
approval by the department. Draw downs may be made only to satisfy claims for 
cargo loss or damage, and any draw down from the letter of credit not 
replenished within seven days must be reported immediately to the department. 
<ol>
<nl>(C)<ol> <nl> The department retains the authority to terminate the letter of 
credit filing at any time if it appears to the department that the carrier's 
letter of credit fails to provide satisfactory protection for shippers or the 
carrier fails to timely file any of the information required by the department. 
<ol>
<nl>(D)<ol> <nl> Upon evidence that the letter of credit is no longer adequately 
funded, the financial condition of a carrier with a letter of credit filing has 
changed, or the carrier is otherwise not in compliance with this subchapter, the 
department may at any time, with 10 days notice to the carrier, require the 
carrier to appear and demonstrate that it continues to have adequate letter of 
credit funding to pay all claims involving cargo loss or damage liability, and 
that it remains in compliance with the requirements of this section. The 
department may revoke the letter of credit if a carrier fails to demonstrate 
adequate letter of credit funding to pay all claims involving cargo loss or 
damage or fails to comply with any requirement of this section. <ol>
<nl>(E)<ol> <nl> A carrier may appeal a denial or revocation of letter of credit 
filing by filing a petition for an administrative hearing in accordance with 
sec.sec.1.21 et seq. of this title (relating to Contested Case Procedure). <ol>
(f) Termination of insurance coverage. Except when replaced by another 
acceptable form of insurance coverage <nl> or proof of financial 
responsibility<ol> approved by the department, no insurance coverage, [or] 
surety bond<nl>, or letter of credit<ol> shall be canceled or withdrawn until 
after 30 days notice has been given to the department by the insurance or surety 
company <nl> or bank or financial institution<ol>, in the form prescribed by the 
department and the DOI<nl>, or approved by the department<ol>.
(1) Insolvency of insurance carrier. If the insurer or surety of a motor carrier 
becomes insolvent or becomes involved in a receivership or other insolvency 
proceeding, the motor carrier may apply for approval of a surety bond<nl>,<ol> 
[or] insurance policy <nl> or letter of credit<ol> issued by another surety, 
[or] insurer<nl> , bank, or other financial institution<ol> upon filing an 
affidavit with the department. Such affidavit shall be executed by an owner, 
partner, or officer of the motor carrier, and show that: 
(A) no accidents or claims have occurred or arisen during the insolvency of the 
insurance carrier<nl>;<ol> [or] surety<nl>, bank, or other financial 
institution<ol>; or 
(B) (No change.) 
(2) (No change.) 

sec.18.19.Short-term Lease.
(a) Registration. A short-term lease vehicle registered under this section is 
exempt from the registration requirements of this subchapter as described in 
sec.18.13 of this title (relating to Application for Motor Carrier Registration) 
while leased to a registered motor carrier. 
(1) Application. A leasing business registering vehicles under this section 
shall file an application on a form prescribed by the director as a leasing 
business with the department. 
(2) Annual Report. 
(A) The operation of a short-term lease vehicle shall be reported to the 
department on a form prescribed by the director not later than March 31 of each 
calendar year for the previous calendar year's operations. The report shall 
identify the number of short-term lease vehicles which would otherwise be 
subject to the registration requirements of this subchapter.
(B) The initial March 1998 report shall identify the number of short-term lease 
vehicles operated from September 1, 1997 through December 31, 1997. 
(3) Fees. An annual registration fee of $10 per vehicle operated shall be paid 
at the time the report is filed under paragraph (1) of this subsection. 
(4) Cancellation, Expiration, and Revocation. 
(A) A request for cancellation of a leasing business registration must be made 
in writing to the department by the leasing business. 
(B) A leasing business registration shall expire on April 30 of each year unless 
the leasing business reports, by March 31, the actual number of vehicles 
requiring registration operated in the previous calendar year. 
(C) A leasing business registration may be suspended or revoked by the 
department in accordance with sec.18.72 of this title (relating to Suspension 
and Revocation). 
(b) Proof of contingency liability insurance. A leasing business registering a 
vehicle under this section shall file and maintain proof of liability insurance 
as required by sec.18.16 of this title (relating to Insurance Requirements) with 
the department on a form prescribed by the director.
(1) Filings. A leasing business shall file proof of insurance upon initial 
registration, and when it changes insurance carriers, in accordance with 
sec.18.16 of this title. 
(2) Filing fee. Each insurance filing under this section shall be accompanied by 
a nonrefundable $100 filing fee. 
(3) Termination of insurance coverage. Any termination of insurance filed under 
this section must comply with the requirements set out in sec.18.16 of this 
title. 
(c) Substitute vehicles. A registered motor carrier may operate a substitute 
short-term lease vehicle without notifying the department in advance of such 
operation in accordance with subsection (d) of this section.
(d) Identification. A registered motor carrier is not required to carry proof of 
registration, as required by sec.18.13(c)(1)(B) of this title, in a short-term 
lease vehicle or a substitute short-term lease vehicle if a copy of the lease 
agreement, or the lease for the originally leased vehicle, in the case of a 
substitute vehicle, is carried in the cab of the vehicle, and the lease is with 
a registered leasing business. 
Issued in Austin, Texas, on September 5, 1997. 
TRD-9711755
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER C.Records and Inspections
43 TAC sec.18.31, sec.18.32
The amendments are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation, and more specifically Texas Civil Statutes, Articles 6675c 
and 66575c-2, which authorize the department to adopt rules to administer the 
regulation of motor carriers. 

sec.18.31.Investigation and Examination of Records. 
(a) (No change.) 
(b) Inspections. 
(1) Every motor carrier shall admit a certified inspector access to the 
carrier's premises to conduct investigations of alleged violations of Texas 
Civil Statutes, Article 6675c, sec.sec.3<nl>, 3A,<ol> and 4. The motor carrier 
shall provide adequate work space with reasonable working conditions, and allow 
the certified inspector to copy and verify records and documents required to be 
maintained by the carrier under sec.18.32 of this title (relating to Records). 
(2)-(3) (No change.) 
(c) Investigations. For routine inspections or investigations of violations of 
this chapter, other than a violation of Texas Civil Statutes, Article 6675c, 
sec.sec.3<nl>, 3A,<ol> or 4, a motor carrier shall: 
(1)-(2) (No change.) 

sec.18.32.Records.
(a) (No change.) 
(b) Specific records and documents to be inspected. 
(1) (No change.) 
<nl>(2)<ol> <nl> Insurance forms. A motor carrier shall maintain in the cab of 
each registered vehicle proof of insurance, in a form approved by the 
department.<ol>
<nl>(A)<ol> <nl> Registration listing. Each motor carrier, other than a Type B 
household goods carrier, shall make available to a certified inspector or any 
law enforcement officer a copy of the current registration listing issued by the 
department. <ol>
<nl>(B)<ol> <nl> Type B household good carrier. Each Type B household goods 
carrier shall make available to a certified inspector or any law enforcement 
officer a copy of the current certificate of registration issued by the 
department. <ol>
[(2) Registration listing. Each motor carrier shall make available to a 
certified inspector or any law enforcement officer a copy of the current 
registration listing issued by the department or a current cab card issued by 
the Railroad Commission or the National Association of Regulatory 
Commissioners.]
[(3) Insurance forms. Every motor carrier shall maintain in the cab of each 
registered vehicle proof of insurance, in a form approved by the department.] 
<nl>(3)<ol> [(4)] Records and documents of household goods carriers. To verify 
compliance with subchapter E of this chapter (relating to Consumer Protection), 
every household goods carrier or their household goods agent thereof shall make 
available to the department on request complete and accurate records maintained 
in accordance with reasonable accounting procedures of all services performed in 
intrastate commerce with complete information for each shipment as to shipper, 
consignee, origin, destination, description of commodities transported, services 
performed, equipment used and date of shipment for services performed. Such 
records shall also contain all information supporting all billing charges and 
the receipt and disposition of all claims. The following documents are required: 
(A) bills of lading or receipts and freight bills; 
(B) time cards, trip sheets or driver's logs; 
(C) claim records; 
(D) ledgers and journals; 
(E) canceled checks; 
(F) bank statements and deposit slips; 
(G) invoices, vouchers or statements supporting disbursements, and 
(H) dispatch records. 
<nl>(4)<ol> [(5)] Records and documents of interstate carriers. An interstate 
carrier registered under sec.18.17 of this title (relating to Single State 
Registration) shall maintain for a period of at least three years records and 
documents supporting fee payments and the original registration receipts issued 
by the department. 
(c)-(d) (No change.) 
Issued in Austin, Texas, on September 5, 1997. 
TRD-9711756
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER E.Consumer Protection
43 TAC sec.sec.18.51-18.54, 18.56
The amendments are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation, and more specifically Texas Civil Statutes, Articles 6675c 
and 66575c-2, which authorize the department to adopt rules to administer the 
regulation of motor carriers. 

sec.18.51.Household Goods Agents.
(a)-(b) (No change.) 
(c) Agent <nl>filing<ol> [list]. A household goods carrier shall file with the 
department<nl>, on a form approved by the director,<ol> a current, accurate list 
of its household goods agents and their addresses [, on or before January 1, 
April 1, July 1, and October 1, of each year]. 
<nl>(1)<ol> <nl>A carrier using alternative vehicle registration under 
sec.18.13(e) of this title (relating to Application for Motor Carrier 
Registration) shall notify the department 30 days prior to the appointment or 
termination of any agency agreement. <ol>
<nl>(2)<ol> <nl> A carrier not using the alternative vehicle registration shall 
notify the department on or before January 1, April 1, July 1, and October 1, of 
each year of the appointment or termination of any agency agreement. <ol>
(d)-(g) (No change.)

sec.18.52.Rates.
<nl>(a)<ol> <nl>Applicability. This section applies to Type A household goods 
carriers. <ol>
<nl>(b)<ol>[(a)] Ratemaking. A household goods carrier and/or its household 
goods agent shall set maximum rates and charges for services in its applicable 
tariff and disclose the maximum rates and charges to prospective shippers before 
transporting a shipment between two incorporated cities. 
<nl>(c)<ol> [(b)] Prohibited charges and allowances. A household goods carrier 
and/or its household goods agent shall not charge a higher compensation for 
transportation services between two incorporated cities than the maximum charges 
published in its tariff on file with the department. 
<nl>(d)<ol> [(c)] Collective ratemaking agreements.
(1) Eligibility. In accordance with Texas Civil Statutes, Article 6675c, 
sec.9(d), a household goods carrier and/or its household goods agent may enter 
into collective ratemaking agreements between one or more other household goods 
carriers or household goods agents concerning the establishment and filing of 
maximum rates and charges, classifications, rules, or procedures.
(2) Designation of collective ratemaking associations. An approved association 
may be designated by a member household goods carrier as its collective 
ratemaking association for the purpose of the required filing of a tariff for 
maximum rates and charges required by sec.18.53 of this title (relating to 
Tariff Registration). 
(3) Submission. In accordance with Texas Civil Statutes, Article 6675c, 
sec.9(d), a collective ratemaking agreement shall be submitted to the department 
for approval, and shall include the following information:
(A) full and correct name and business address (street and number, city and zip 
code, county, and state), and phone number of the association; whether the 
association is an corporation or partnership; if a corporation, the government, 
state, or territory under the laws of which the applicant was organized and 
received its present charter, and, if an association or a partnership, the names 
of the officers or partners and date of formation;
(B) full and correct name and business address (city and state) of each 
household goods carrier on whose behalf the agreement is filed and whether it is 
an association, a corporation, individual, or partnership;
(C) the name, title, and mailing address of counsel, officer, or other person to 
whom correspondence in regard to the agreement should be addressed; 
(D) a true copy of the agreement; and 
(E) a copy of the constitution, bylaws, or other documents or writings, 
specifying the organization's powers, duties, and procedures.
(4) Signature. The collective ratemaking agreement shall be signed by all 
parties subject to the agreement or the association's executive officer. 
(5)Incomplete agreement. If the department receives an agreement which does not 
comply with subsection <nl>(d)<ol> [(c)] of this section, the department will 
send a letter to the individual submitting the agreement advising them of the 
information that is missing and that the agreement will not be processed until 
the information is received.
(6) Approval. In accordance with Texas Civil Statutes, Article 6675c, sec.9(d), 
the director or his or her designee will approve a collective ratemaking 
agreement if the agreement provides that: 
(A) all meetings are open to the public; and 
(B) notice of meetings shall be sent to shippers who are multiple users of 
household good carriers. 
(7) Noncompliance. The director or his or her designee may withhold approval of 
the agreement if he or she finds and concludes, after notice and hearing, that 
the agreement fails to comply with subsection <nl>(d)(6)<ol> [(c)(6)] of this 
section. 
(A) If the director determines that an agreement does not comply with subsection 
<nl>(d)(6)<ol> [(c)(6)] , the association representative shall be notified by 
certified mail. This notice shall specify the reason that an agreement is not 
being approved. It will also notify the household goods carrier or association 
representative of the hearing date.
(B) If the association representative resubmits an acceptable agreement which 
meets the requirements of subsection <nl>(d)(6)<ol> [(c)(6)] of this section 
within 10 business days prior to the hearing date, the hearing will be canceled 
and the agreement will be approved. 
(C) If the hearing is held, the presiding officer shall explain the reason(s) 
that the agreement was rejected. The association representative will be allowed 
to respond to the objections and present evidence or exhibits which relate to 
his or her response. The hearing examiner, based on the evidence provided, shall 
decide whether an agreement shall be approved or resubmitted. The association 
representative shall be advised of the examiner's decision at the hearing. The 
State Office of Administrative Hearings would conduct such a hearing. SOAH does 
not have the authority to render a final decision at the hearing, because under 
the department's contested hearing procedures, sec.1.50 and sec.1.58 of this 
title (relating to The Hearing Officer's Proposal for Decision and Final 
Orders), only the commission, after receiving the hearing officer's proposal, 
may sign this type of order. 
(8) New parties to an agreement. An updated agreement shall be filed with the 
department as new parties are added. 
(9) Amendments to approved agreements. Amendments to approved agreements (other 
than as to new parties) may become effective only after approval of the 
department. 

sec.18.53.Tariff Registration.
<nl>(a)<ol> <nl>Applicability. This section applies to Type A household goods 
carriers. <ol>
<nl>(b)<ol>[(a)] Submission. In accordance with Texas Civil Statutes, Article 
6675c, sec.8(d), a household goods carrier and/or its household goods agent 
shall file a tariff with the department which establishes maximum rates and 
charges for transportation services where, in the course of such transportation, 
a highway between two or more incorporated cities, towns or villages is 
traversed. A household goods carrier who is not a member of an approved 
association under sec.18.52 of this title (pertaining to Rates) shall file a 
tariff individually. In lieu of filing individually, a household goods carrier 
or its household goods agent, who is a member of an approved association 
pursuant to sec.18.52 of this title (pertaining to Rates), may designate a 
collective association as its ratemaking association. The association may file a 
tariff, as required by this subsection, for member carriers. 
(1) Contents. The tariff: 
(A) shall set out all rates, charges, rules, regulations, or other provisions, 
in clear and concise terms, used to determine total transportation charges; 
(B) shall include a requirement that the final charges relating to a shipment, 
as described in sec.18.54(b) of this title (relating to Transportation 
Standards) be computed based on the actual weight or volume of the shipment or 
actual time required to transport the shipment;
(C) may provide for the acceptance of charge cards for the payment of freight 
charges whenever shipments are transported under agreements and tariffs 
requiring payment by cash, certified check, or money order, and identify the 
charge card plans participated in by the household goods carrier;
(D) may provide for the offering, selling, or procuring of insurance as provided 
in sec.18.55 of this title (relating to Selling of Insurance to Shippers); the 
tariff may also provide for the base transportation charge to include assumption 
by the household goods carrier for the full value of the shipment in the event a 
policy or other appropriate evidence of the insurance purchased by the shipper 
is not issued to the shipper at the time of purchase; 
(E) shall describe the procedure for determining charges which are below the 
maximum rate, as described in the applicable tariff, for each service performed; 
and 
(F) shall reference a specific mileage guide or source in the general rules 
section of the tariff, if information on rates and charges based on mileage is 
included in the tariff (The referenced mileage guide shall be filed with the 
department as an addendum to the tariff. If the household goods carrier utilizes 
a computer data base as a mileage guide, the household goods carrier shall allow 
free access to the system to department personnel when conducting an inquiry 
regarding a specific movement performed by the household goods carrier). 
(2) Interstate tariff. In accordance with Texas Civil Statutes, Article 6675c, 
sec.8(d), a household goods carrier may satisfy the requirements of this 
subsection by filing a copy of its tariff governing interstate household goods 
transportation services. 
(3) Transmittal letter. A transmittal letter shall accompany a tariff being 
filed. The transmittal letter shall provide: 
(A) the name of the household goods carrier; 
(B) the Texas mailing address and street address of the household goods 
carrier's principal office; 
(C) the household goods carrier's registration number; 
(D) the name and title of the household goods carrier's representative 
authorizing the tariff filing; and 
(E) whether the tariff is being filed on behalf of a member carrier. 
(4) Format. Tariffs shall be filed: 
(A) on 8 1/2" x 11" paper; 
(B) with a cover sheet showing: 
(i) the name of the issuing household goods carrier or collective ratemaking 
association; 
(ii) the Texas mailing and street address; 
(iii) the issuance date of the tariff; 
(iv) the effective date of the tariff; 
(v) the tariff number; and 
(C) shall be separated into the following sections: 
(i) general rules; 
(ii) accessorial services; and 
(iii) rates. 
(5) Item numbers. Individual items shall be titled and designated by item 
number. 
(6) Amendments. Any amendment to a tariff shall be filed with the department 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. 
<nl>(c)<ol>[(b)] Operations. The department will accept a tariff which is in 
substantial compliance with this section if the tariff is submitted prior to 
November 1, 1995. 
<nl>(d)<ol> [(c)] Access. In accordance with Texas Civil Statutes, Article 
6675c, sec.8(d), tariffs filed pursuant to this section will be made available 
for public inspection at the Motor Carrier Division, 4000 Jackson, Camp Hubbard, 
Building 1 and by calling 1-800-299-1700.

sec.18.54.Transportation Standards.
(a) Estimates of charges. 
(1) Binding estimates. A household goods carrier may provide in its tariff for 
the preparation and furnishing to shippers, binding estimates of the costs which 
the shippers will be required to pay. <nl> Alternatively, a household good 
carrier's transportation not governed by the tariff as required by sec.18.53 of 
this title (relating to Tariff Registration), may prepare and furnish to a 
shipper binding estimates of costs the shipper will be required to pay.<ol> 
Household goods carriers must comply with the following conditions if it 
prepares and furnishes a binding estimate to a shipper. 
(A)-(C) (No change.) 
(2)-(3) (No change.) 
(b) (No change.) 
(c) Bill of lading or receipt. 
(1) (No change.) 
(2) Minimum information required on a bill of lading or receipt. Whenever a bill 
of lading or receipt is issued in compliance with paragraph (1) of this 
subsection, the household goods carrier shall include:
(A)-(P) (No change.) 
(Q) the required released rates valuation statement; [and]
(R) evidence of any insurance coverage sold to or procured for the shipper, 
including the amount of the premium for such insurance <nl>; and<ol> 
<nl>(S)<ol> <nl> notice of the Type B household goods carrier's limitation of 
liability for loss or damage. <ol>
(3)-(4) (No change.) 
(d)-(j) (No change.) 

sec.18.56.Liability of Carriers.
<nl>(a)<ol> A household goods carrier shall not be required to accept a 
household goods shipment unless the shipper or owner of the goods or his or her 
local <nl>household goods<ol> agent declares the reasonable value of the 
shipment in writing. The household goods carrier shall not be liable for damages 
in an amount in excess of the declared value for the loss, destruction or damage 
of the household goods. In addition, a household goods carrier shall also be 
subject to 49 Code of Federal Regulation Part 1056.12 (Liability of Carriers) to 
the extent that these regulations do not conflict with the provisions of this 
title.
<nl>(b) <ol><nl>A Type B household goods carrier's liability for loss or damage 
to cargo is sixty cents per pound unless the Type B household goods carrier and 
the shipper agree in writing to a lower value.<ol>
Issued in Austin, Texas, on September 5, 1997. 
TRD-9711757
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630

SUBCHAPTER F.Enforcement
43 TAC sec.sec.18.70-18.72
The amendments are adopted on an emergency basis under Transportation Code, 
sec.201.101, which provides the Texas Transportation Commission with the 
authority to establish rules for the conduct of the work of the Texas Department 
of Transportation, and more specifically Texas Civil Statutes, Articles 6675c 
and 66575c-2, which authorize the department to adopt rules to administer the 
regulation of motor carriers. 

sec.18.70.Purpose.
The purpose of this subchapter is to provide for an efficient and effective 
system of enforcement of Texas Civil Statutes, Articles 6675c and 6675c-1, by 
setting out procedures for administrative penalties and the suspension and 
revocation of motor carrier registration <nl>and leasing business 
registration<ol>. This subchapter also provides for the suspension of motor 
carrier registration issued under Texas Civil Statutes, Articles 6675c and 
6675c-1, and the suspension of a vehicle storage facility license issued under 
Texas Civil Statutes, Article 6687-9a, for nonpayment of child support.

sec.18.71.Administrative Penalties.
(a) (No change.) 
(b) Authority. The department may impose an administrative penalty against a 
motor carrier required to register under this section if the motor carrier 
violates a provision of Texas Civil Statutes, Article 6675c, sec.3, 
<nl>sec.3A,<ol> sec.4, sec.5, sec.8 or sec.12, or a provision of Subchapters B, 
C or E of this chapter (relating to Motor Carrier Registration, Records and 
Inspections, and Consumer Protection).
(c) Amount of penalty. 
(1) (No change.) 
(2) If it is found that the motor carrier knowingly committed a violation, the 
penalty for that violation may be in an amount not to exceed $15,000. A person 
acts knowingly if that person has acted with knowledge that such acts constitute 
or are in violation of Texas Civil Statutes, Article 6675c, sec.3, 
<nl>sec.3A,<ol> sec.4, sec.5, sec.8, or sec.12, or a provision of Subchapters B, 
C or E of this chapter (relating to Motor Carrier Registration, Records and 
Inspections, and Consumer Protection). 
(3)-(4) (No change.) 
(d)-(j) (No change.)

sec.18.72.Suspension and Revocation.
(a) Grounds for action. The department may suspend or revoke a certificate of 
registration of a motor carrier <nl> or leasing business<ol> issued under 
Subchapter B of this chapter (relating to Motor Carrier Registration), if a 
motor carrier <nl> or leasing business<ol>: 
(1) fails to maintain insurance <nl>or proof of financial responsibility<ol> as 
required by sec.18.16 of this title (relating to Insurance Requirements); 
(2)-(4) (No change.) 
(b) (No change.) 
(c) Action without hearing. The division may suspend or revoke a certificate of 
registration issued under Subchapter B of this chapter (relating to Motor 
Carrier Registration), without a prior administrative hearing under Chapter 
2001, Government Code, if: 
(1) the department provides notice to the motor carrier <nl>or leasing 
business<ol> of: 
(A) (No change.) 
(B) the right of the carrier <nl>or leasing business<ol> to request a hearing 
under Chapter 2001, Government Code; and 
(2) the motor carrier <nl>or leasing business<ol> fails to file with the 
department a written request for an administrative hearing within 10 days after 
the date the carrier <nl> or leasing business<ol> received the notice described 
in subparagraph (1) of this subsection. 
(d) Contested case. If the motor carrier <nl> or leasing business<ol> files a 
written request for an administrative hearing, the department will initiate a 
contested case proceeding in accordance with sec.sec.1.21 et seq. of this title 
(relating to Contested Case Procedure).
(e) Failure to maintain insurance. 
(1) (No change.) 
(2) Sanction. 
(A) If the motor carrier <nl>or leasing business<ol> does not file proof of 
insurance as required by sec.18.16 of this title (relating to Insurance 
Requirements) prior to the termination of its existing insurance, the division 
will suspend the motor carrier's <nl>or leasing business'<ol> certificate of 
registration for 90 days. The division will revoke the motor carrier's <nl> or 
leasing business'<ol> certificate of registration on the 91st day unless the 
motor carrier <nl>or leasing business<ol> provides proof of insurance in 
compliance with sec.18.16 of this title (relating to Insurance Requirements) 
before the effective date of revocation. If proof of insurance is timely 
provided, the department will reinstate the certificate of registration of the 
motor carrier <nl>or leasing business <ol>. 
(B) If the suspended carrier <nl>or leasing business<ol> does not provide proof 
of insurance under subparagraph (A) of this paragraph, the carrier <nl>or 
leasing business <ol> must file a new application in accordance with Subchapter 
B of this chapter (relating to Motor Carrier Registration). 
(f) Suspension due to failure to pay court ordered child support.
(1) On receipt of a final order suspending license, issued under Family Code, 
sec.232.008, the department will suspend: 
(A) a motor carrier's <nl>or leasing business' <ol> certificate of registration 
issued under Subchapter B of this chapter (relating to Motor Carrier 
Registration); 
(B)-(C) (No change.) 
(2) The department will charge an administrative fee of $10 to a motor carrier, 
<nl>leasing business,<ol> interstate motor carrier, or vehicle storage facility 
licensee who is the subject of an order suspending license. 
Issued in Austin, Texas, on September 5, 1997. 
TRD-9711758
Bob Jackson
Deputy General Counsel
Texas Department of Transportation
Effective date: September 5, 1997
Expiration date: January 5, 1998
For further information, please call: (512) 463-8630