85R6668 JRR-F
By: Phillips H.B. No. 3254
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of a motor carrier and the enforcement of
motor carrier regulations; authorizing the imposition of a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011(g-7), Tax Code, is amended to
read as follows:
(g-7) A taxable entity that is a qualified courier and
logistics company shall exclude from its total revenue, to the
extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3),
subcontracting payments made by the taxable entity to nonemployee
agents for the performance of delivery services on behalf of the
taxable entity. For purposes of this subsection, "qualified
courier and logistics company" means a taxable entity that:
(1) receives at least 80 percent of the taxable
entity's annual total revenue from its entire business from a
combination of at least two of the following courier and logistics
services:
(A) expedited same-day delivery of an envelope,
package, parcel, roll of architectural drawings, box, or pallet;
(B) temporary storage and delivery of the
property of another entity, including an envelope, package, parcel,
roll of architectural drawings, box, or pallet; and
(C) brokerage of same-day or expedited courier
and logistics services to be completed by a person or entity under a
contract that includes a contractual obligation by the taxable
entity to make payments to the person or entity for those services;
(2) during the period on which margin is based, is
registered as a motor carrier under Chapter 643, Transportation
Code, and if the taxable entity operates on an interstate basis, is
registered as a motor carrier or broker under the motor vehicle
registration system established under 49 U.S.C. Section 14504a or a
similar federal registration program that replaces that system
[unified carrier registration system, as defined by Section
643.001, Transportation Code,] during that period;
(3) maintains an automobile liability insurance
policy covering individuals operating vehicles owned, hired, or
otherwise used in the taxable entity's business, with a combined
single limit for each occurrence of at least $1 million;
(4) maintains at least $25,000 of cargo insurance;
(5) maintains a permanent nonresidential office from
which the courier and logistics services are provided or arranged;
(6) has at least five full-time employees during the
period on which margin is based;
(7) is not doing business as a livery service, floral
delivery service, motor coach service, taxicab service, building
supply delivery service, water supply service, fuel or energy
supply service, restaurant supply service, commercial moving and
storage company, or overnight delivery service; and
(8) is not delivering items that the taxable entity or
an affiliated entity sold.
SECTION 2. Sections 643.054(a-2) and (a-3), Transportation
Code, are amended to read as follows:
(a-2) The department may deny a registration if the
applicant [applicant's business] is owned, operated, managed, or
otherwise controlled by or affiliated with a person, including [the
applicant,] a [relative,] family member, corporate officer,
entity, or shareholder, that [whom] the Department of Public Safety
has determined has:
(1) an unsatisfactory safety rating under 49 C.F.R.
Part 385; or
(2) multiple violations of Chapter 644, a rule adopted
under that chapter, or Subtitle C.
(a-3) The department may deny a registration if the
applicant is owned, [a motor carrier whose business is] operated,
managed, or otherwise controlled by or affiliated with a person,
including a [an owner, relative,] family member, corporate officer,
entity, or shareholder, that [whom the Department of Public Safety
has determined has]:
(1) owned, operated, managed, or otherwise controlled
a motor carrier that the Federal Motor Carrier Safety
Administration has placed out of service for unacceptable safety
compliance [an unsatisfactory safety rating under 49 C.F.R. Part
385]; or
(2) has unpaid administrative penalties assessed
under this chapter or Subtitle E [multiple violations of Chapter
644, a rule adopted under that chapter, or Subtitle C].
SECTION 3. Section 643.056, Transportation Code, is amended
by adding Subsection (c) to read as follows:
(c) The department may deny a supplement to a motor
carrier's application for registration if the motor carrier is
owned, operated, managed, or otherwise controlled by or affiliated
with a person, including a family member, corporate officer,
entity, or shareholder, that has unpaid administrative penalties
assessed under this chapter or Subtitle E.
SECTION 4. Section 643.058, Transportation Code, is amended
by adding Subsections (d) and (e) to read as follows:
(d) A motor carrier may not renew a registration that has
been expired for more than 180 days. The motor carrier may obtain a
new registration by complying with the requirements and procedures
for obtaining an original registration under this chapter.
(e) The department may deny a motor carrier's application to
renew a registration if the motor carrier is owned, operated,
managed, or otherwise controlled by or affiliated with a person,
including a family member, corporate officer, entity, or
shareholder, that:
(1) the Department of Public Safety has determined
has:
(A) an unsatisfactory safety rating under 49
C.F.R. Part 385; or
(B) multiple violations of Chapter 644, a rule
adopted under that chapter, or Subtitle C;
(2) owned, operated, managed, or otherwise controlled
a motor carrier that the Federal Motor Carrier Safety
Administration has placed out of service for unacceptable safety
compliance; or
(3) has unpaid administrative penalties assessed
under this chapter or Subtitle E.
SECTION 5. Subchapter B, Chapter 643, Transportation Code,
is amended by adding Section 643.0585 to read as follows:
Sec. 643.0585. REREGISTRATION. (a) If a motor carrier's
registration has been revoked, the motor carrier may apply to the
department for reregistration not later than the 180th day after
the date the registration was revoked.
(b) An application for reregistration must be submitted on a
form prescribed by the department and accompanied by:
(1) a $10 fee for each vehicle requiring registration;
(2) evidence of insurance or financial responsibility
as required by Section 643.103(a); and
(3) any insurance filing fee required under Section
643.103(c).
(c) The department may deny a motor carrier's application
for reregistration if the motor carrier is owned, operated,
managed, or otherwise controlled by or affiliated with a person,
including a family member, corporate officer, entity, or
shareholder, that:
(1) the Department of Public Safety has determined
has:
(A) an unsatisfactory safety rating under 49
C.F.R. Part 385; or
(B) multiple violations of Chapter 644, a rule
adopted under that chapter, or Subtitle C;
(2) owned, operated, managed, or otherwise controlled
a motor carrier that the Federal Motor Carrier Safety
Administration has placed out of service for unacceptable safety
compliance; or
(3) has unpaid administrative penalties assessed
under this chapter or Subtitle E.
SECTION 6. Section 643.153(d), Transportation Code, is
amended to read as follows:
(d) A motor carrier that is required to register under
Subchapter B and that transports household goods shall file a
tariff with the department that establishes maximum charges for all
transportation services [between two or more municipalities]. A
motor carrier may comply with this requirement by filing, in a
manner determined by the department, a copy of the carrier's tariff
governing interstate transportation services [on a highway between
two or more municipalities]. The department shall make tariffs
filed under this subsection available for public inspection [at the
department].
SECTION 7. Section 643.252(a), Transportation Code, is
amended to read as follows:
(a) The department may suspend, revoke, or deny a
registration issued under this chapter or place on probation a
motor carrier whose registration is suspended if a motor carrier:
(1) fails to maintain insurance or evidence of
financial responsibility as required by Section 643.101(a), (b), or
(c)[, or (d)];
(2) fails to keep evidence of insurance in the cab of
each vehicle as required by Section 643.103(b);
(3) fails to register a vehicle requiring
registration;
(4) violates any other provision of this chapter or
Chapter 621, 622, or 623;
(5) knowingly provides false information on any form
filed with the department under this chapter or Chapter 621, 622, or
623; [or]
(6) violates a rule or order adopted under this
chapter or Chapter 621, 622, or 623; or
(7) is owned, operated, managed, or otherwise
controlled by or affiliated with a person, including a family
member, corporate officer, entity, or shareholder:
(A) whose registration has previously been
revoked or denied; or
(B) that has unpaid administrative penalties
assessed under this chapter or Subtitle E.
SECTION 8. Sections 643.2525(c), (e), (k), and (l),
Transportation Code, are amended to read as follows:
(c) If not later than the 26th day after the date the notice
is mailed the department receives a written request for a hearing,
the department shall set a hearing and provide the carrier [give]
notice of the hearing and the opportunity to present evidence at the
hearing [to the carrier]. The hearing shall be conducted by an
administrative law judge of the State Office of Administrative
Hearings.
(e) If a hearing set under Subsection (c) is held and
evidence is presented at the hearing, the [The] administrative law
judge shall make findings of fact and conclusions of law and
promptly issue to the director a proposal for a decision as to the
occurrence of the violation and the administrative penalties or
sanctions.
(k) If the motor carrier is required to pay a penalty or cost
under Subsection (f), failure to pay the penalty or cost before the
61st day after the date the requirement becomes final is a violation
of this chapter and may result in an additional penalty, revocation
or suspension of a motor carrier registration, or denial [of
renewal] of a motor carrier registration renewal or reregistration.
(l) A motor carrier that is required to pay a penalty, cost,
fee, or expense under this section or Section 643.251 is not
eligible for a registration, reregistration, [reinstatement] or
registration renewal [of a registration] under this chapter until
all required amounts have been paid to the department.
SECTION 9. The heading to Section 643.2526, Transportation
Code, is amended to read as follows:
Sec. 643.2526. APPEAL OF DENIAL OF REGISTRATION, RENEWAL,
OR REREGISTRATION [REINSTATEMENT].
SECTION 10. Section 643.2526(a), Transportation Code, is
amended to read as follows:
(a) Notwithstanding any other law, a denial of an
application for registration, renewal of registration, or
reregistration [reinstatement of registration] under this chapter
is not required to be preceded by notice and an opportunity for
hearing.
SECTION 11. The heading to Chapter 645, Transportation
Code, is amended to read as follows:
CHAPTER 645. UNIFIED CARRIER [SINGLE STATE] REGISTRATION
SECTION 12. Section 645.001, Transportation Code, is
amended to read as follows:
Sec. 645.001. FEDERAL UNIFIED [MOTOR] CARRIER
REGISTRATION; DEFINITION. (a) In this chapter, "unified carrier
registration plan and agreement" means the federal unified carrier
registration plan and agreement provided by 49 U.S.C. Section
14504a.
(b) The Texas Department of Motor Vehicles may, to the
fullest extent practicable, participate in [a federal motor carrier
registration program under] the unified carrier registration plan
and agreement [system as defined by Section 643.001 or a single
state registration system established under federal law].
SECTION 13. Section 645.002(b), Transportation Code, is
amended to read as follows:
(b) The department may adopt rules regarding the method of
payment of a fee required under the unified carrier registration
plan and agreement [this chapter]. The rules may:
(1) authorize the use of an escrow account described
by Subsection (c), an electronic funds transfer, or a valid credit
card issued by a financial institution chartered by a state or the
United States or by a nationally recognized credit organization
approved by the department; and
(2) require the payment of a discount or service
charge for a credit card payment in addition to the fee.
SECTION 14. Section 645.003, Transportation Code, is
amended to read as follows:
Sec. 645.003. ENFORCEMENT RULES. (a) The department may
[shall] adopt rules [that are consistent with federal law]
providing for administrative penalties [and sanctions] for a
failure to register or submit information and documents under [as
required by] the unified carrier registration plan and agreement
[system or single state registration system] or for a violation of
the unified carrier registration plan and agreement [this chapter
or a rule adopted under this chapter in the same manner as
Subchapter F, Chapter 643].
(b) The notice, hearing, and other procedural requirements
of Section 643.2525 apply to the imposition of an administrative
penalty under this section as if the action were being taken under
that section.
(c) The amount of an administrative penalty imposed under
this section is calculated in the same manner as the amount of an
administrative penalty imposed under Section 643.251.
SECTION 15. Sections 645.004(a) and (c), Transportation
Code, are amended to read as follows:
(a) A person commits an offense if the person fails to:
(1) [violates a rule adopted under this chapter; or
[(2) fails to] register as required by the unified
carrier registration plan and agreement; or
(2) submit information and documents as required by
the unified carrier registration plan and agreement [a vehicle
required to be registered under this chapter].
(c) Each day a violation [of a rule] occurs is a separate
offense under this section.
SECTION 16. Sections 643.001(7-a), 643.064(a), and
645.002(a), Transportation Code, are repealed.
SECTION 17. (a) The changes in law made by this Act apply
only to an offense or violation committed on or after the effective
date of this Act. An offense or violation committed before the
effective date of this Act is governed by the law in effect on the
date the offense or violation was committed, and the former law is
continued in effect for that purpose. For purposes of this section,
an offense or violation was committed before the effective date of
this Act if any element of the offense or violation occurred before
that date.
(b) The change in law made by this Act relating to an
application filed under Chapter 643, Transportation Code, applies
only to an application filed under that chapter on or after the
effective date of this Act. An application filed before that date
is governed by the law in effect on the date the application was
filed, and the former law is continued in effect for that purpose.
SECTION 18. This Act takes effect September 1, 2017.