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AN ACT
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relating to the regulation of a motor carrier and the enforcement of |
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motor carrier regulations; authorizing the imposition of a fee; |
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creating a criminal offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1011(g-7), Tax Code, is amended to |
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read as follows: |
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(g-7) A taxable entity that is a qualified courier and |
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logistics company shall exclude from its total revenue, to the |
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extent included under Subsection (c)(1)(A), (c)(2)(A), or (c)(3), |
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subcontracting payments made by the taxable entity to nonemployee |
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agents for the performance of delivery services on behalf of the |
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taxable entity. For purposes of this subsection, "qualified |
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courier and logistics company" means a taxable entity that: |
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(1) receives at least 80 percent of the taxable |
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entity's annual total revenue from its entire business from a |
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combination of at least two of the following courier and logistics |
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services: |
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(A) expedited same-day delivery of an envelope, |
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package, parcel, roll of architectural drawings, box, or pallet; |
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(B) temporary storage and delivery of the |
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property of another entity, including an envelope, package, parcel, |
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roll of architectural drawings, box, or pallet; and |
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(C) brokerage of same-day or expedited courier |
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and logistics services to be completed by a person or entity under a |
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contract that includes a contractual obligation by the taxable |
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entity to make payments to the person or entity for those services; |
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(2) during the period on which margin is based, is |
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registered as a motor carrier under Chapter 643, Transportation |
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Code, and if the taxable entity operates on an interstate basis, is |
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registered as a motor carrier or broker under the motor vehicle |
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registration system established under 49 U.S.C. Section 14504a or a |
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similar federal registration program that replaces that system |
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[unified carrier registration system, as defined by Section
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643.001, Transportation Code,] during that period; |
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(3) maintains an automobile liability insurance |
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policy covering individuals operating vehicles owned, hired, or |
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otherwise used in the taxable entity's business, with a combined |
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single limit for each occurrence of at least $1 million; |
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(4) maintains at least $25,000 of cargo insurance; |
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(5) maintains a permanent nonresidential office from |
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which the courier and logistics services are provided or arranged; |
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(6) has at least five full-time employees during the |
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period on which margin is based; |
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(7) is not doing business as a livery service, floral |
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delivery service, motor coach service, taxicab service, building |
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supply delivery service, water supply service, fuel or energy |
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supply service, restaurant supply service, commercial moving and |
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storage company, or overnight delivery service; and |
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(8) is not delivering items that the taxable entity or |
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an affiliated entity sold. |
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SECTION 2. Sections 643.054(a-2) and (a-3), Transportation |
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Code, are amended to read as follows: |
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(a-2) The department may deny a registration if the |
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applicant [applicant's business] is owned, operated, managed, or |
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otherwise controlled by or affiliated with a person, including [the
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applicant,] a [relative,] family member, corporate officer, |
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entity, or shareholder, that [whom] the Department of Public Safety |
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has determined has: |
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(1) an unsatisfactory safety rating under 49 C.F.R. |
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Part 385; or |
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(2) multiple violations of Chapter 644, a rule adopted |
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under that chapter, or Subtitle C. |
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(a-3) The department may deny a registration if the |
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applicant is owned, [a motor carrier whose business is] operated, |
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managed, or otherwise controlled by or affiliated with a person, |
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including a [an owner, relative,] family member, corporate officer, |
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entity, or shareholder, that [whom the Department of Public Safety
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has determined has]: |
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(1) owned, operated, managed, or otherwise controlled |
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a motor carrier that the Federal Motor Carrier Safety |
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Administration has placed out of service for unacceptable safety |
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compliance [an unsatisfactory safety rating under 49 C.F.R. Part
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385]; or |
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(2) has unpaid administrative penalties assessed |
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under this chapter or Subtitle E [multiple violations of Chapter
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644, a rule adopted under that chapter, or Subtitle C]. |
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SECTION 3. Section 643.056, Transportation Code, is amended |
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by adding Subsection (c) to read as follows: |
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(c) The department may deny a supplement to a motor |
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carrier's application for registration if the motor carrier is |
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owned, operated, managed, or otherwise controlled by or affiliated |
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with a person, including a family member, corporate officer, |
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entity, or shareholder, that has unpaid administrative penalties |
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assessed under this chapter or Subtitle E. |
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SECTION 4. Section 643.058, Transportation Code, is amended |
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by adding Subsections (d) and (e) to read as follows: |
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(d) A motor carrier may not renew a registration that has |
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been expired for more than 180 days. The motor carrier may obtain a |
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new registration by complying with the requirements and procedures |
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for obtaining an original registration under this chapter. |
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(e) The department may deny a motor carrier's application to |
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renew a registration if the motor carrier is owned, operated, |
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managed, or otherwise controlled by or affiliated with a person, |
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including a family member, corporate officer, entity, or |
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shareholder, that: |
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(1) the Department of Public Safety has determined |
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has: |
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(A) an unsatisfactory safety rating under 49 |
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C.F.R. Part 385; or |
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(B) multiple violations of Chapter 644, a rule |
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adopted under that chapter, or Subtitle C; |
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(2) owned, operated, managed, or otherwise controlled |
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a motor carrier that the Federal Motor Carrier Safety |
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Administration has placed out of service for unacceptable safety |
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compliance; or |
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(3) has unpaid administrative penalties assessed |
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under this chapter or Subtitle E. |
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SECTION 5. Subchapter B, Chapter 643, Transportation Code, |
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is amended by adding Section 643.0585 to read as follows: |
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Sec. 643.0585. REREGISTRATION. (a) If a motor carrier's |
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registration has been revoked, the motor carrier may apply to the |
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department for reregistration not later than the 180th day after |
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the date the registration was revoked. |
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(b) An application for reregistration must be submitted on a |
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form prescribed by the department and accompanied by: |
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(1) a $10 fee for each vehicle requiring registration; |
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(2) evidence of insurance or financial responsibility |
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as required by Section 643.103(a); and |
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(3) any insurance filing fee required under Section |
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643.103(c). |
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(c) The department may deny a motor carrier's application |
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for reregistration if the motor carrier is owned, operated, |
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managed, or otherwise controlled by or affiliated with a person, |
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including a family member, corporate officer, entity, or |
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shareholder, that: |
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(1) the Department of Public Safety has determined |
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has: |
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(A) an unsatisfactory safety rating under 49 |
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C.F.R. Part 385; or |
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(B) multiple violations of Chapter 644, a rule |
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adopted under that chapter, or Subtitle C; |
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(2) owned, operated, managed, or otherwise controlled |
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a motor carrier that the Federal Motor Carrier Safety |
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Administration has placed out of service for unacceptable safety |
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compliance; or |
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(3) has unpaid administrative penalties assessed |
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under this chapter or Subtitle E. |
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SECTION 6. Section 643.153(d), Transportation Code, is |
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amended to read as follows: |
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(d) A motor carrier that is required to register under |
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Subchapter B and that transports household goods shall file a |
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tariff with the department that establishes maximum charges for all |
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transportation services [between two or more municipalities]. A |
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motor carrier may comply with this requirement by filing, in a |
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manner determined by the department, a copy of the carrier's tariff |
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governing interstate transportation services [on a highway between
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two or more municipalities]. The department shall make tariffs |
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filed under this subsection available for public inspection [at the
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department]. |
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SECTION 7. Section 643.252(a), Transportation Code, is |
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amended to read as follows: |
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(a) The department may suspend, revoke, or deny a |
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registration issued under this chapter or place on probation a |
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motor carrier whose registration is suspended if a motor carrier: |
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(1) fails to maintain insurance or evidence of |
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financial responsibility as required by Section 643.101(a), (b), or |
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(c)[, or (d)]; |
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(2) fails to keep evidence of insurance in the cab of |
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each vehicle as required by Section 643.103(b); |
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(3) fails to register a vehicle requiring |
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registration; |
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(4) violates any other provision of this chapter or |
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Chapter 621, 622, or 623; |
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(5) knowingly provides false information on any form |
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filed with the department under this chapter or Chapter 621, 622, or |
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623; [or] |
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(6) violates a rule or order adopted under this |
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chapter or Chapter 621, 622, or 623; or |
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(7) is owned, operated, managed, or otherwise |
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controlled by or affiliated with a person, including a family |
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member, corporate officer, entity, or shareholder: |
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(A) whose registration has previously been |
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revoked or denied; or |
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(B) that has unpaid administrative penalties |
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assessed under this chapter or Subtitle E. |
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SECTION 8. Sections 643.2525(c), (e), (k), and (l), |
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Transportation Code, are amended to read as follows: |
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(c) If not later than the 26th day after the date the notice |
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is mailed the department receives a written request for a hearing, |
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the department shall set a hearing and provide the carrier [give] |
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notice of the hearing and the opportunity to present evidence at the |
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hearing [to the carrier]. The hearing shall be conducted by an |
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administrative law judge of the State Office of Administrative |
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Hearings. |
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(e) If a hearing set under Subsection (c) is held and |
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evidence is presented at the hearing, the [The] administrative law |
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judge shall make findings of fact and conclusions of law and |
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promptly issue to the director a proposal for a decision as to the |
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occurrence of the violation and the administrative penalties or |
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sanctions. |
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(k) If the motor carrier is required to pay a penalty or cost |
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under Subsection (f), failure to pay the penalty or cost before the |
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61st day after the date the requirement becomes final is a violation |
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of this chapter and may result in an additional penalty, revocation |
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or suspension of a motor carrier registration, or denial [of
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renewal] of a motor carrier registration renewal or reregistration. |
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(l) A motor carrier that is required to pay a penalty, cost, |
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fee, or expense under this section or Section 643.251 is not |
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eligible for a registration, reregistration, [reinstatement] or |
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registration renewal [of a registration] under this chapter until |
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all required amounts have been paid to the department. |
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SECTION 9. The heading to Section 643.2526, Transportation |
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Code, is amended to read as follows: |
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Sec. 643.2526. APPEAL OF DENIAL OF REGISTRATION, RENEWAL, |
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OR REREGISTRATION [REINSTATEMENT]. |
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SECTION 10. Section 643.2526(a), Transportation Code, is |
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amended to read as follows: |
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(a) Notwithstanding any other law, a denial of an |
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application for registration, renewal of registration, or |
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reregistration [reinstatement of registration] under this chapter |
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is not required to be preceded by notice and an opportunity for |
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hearing. |
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SECTION 11. Section 644.151, Transportation Code, is |
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amended by amending Subsections (a) and (b) and adding Subsection |
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(b-1) to read as follows: |
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(a) A person commits an offense if the person: |
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(1) violates a rule adopted under this chapter; [or] |
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(2) does not permit an inspection authorized under |
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Section 644.104; or |
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(3) knowingly operates a commercial motor vehicle in |
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violation of an out-of-service order issued under 49 C.F.R. Section |
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385.13(d)(1) or owns, leases, or assigns a person to drive a |
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commercial motor vehicle that is knowingly operated in violation of |
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an out-of-service order issued under 49 C.F.R. Section |
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385.13(d)(1). |
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(b) An offense under Subsection (a)(1) or (2) [this section] |
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is a Class C misdemeanor. |
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(b-1) An offense under Subsection (a)(3) is a Class A |
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misdemeanor, except that the offense is: |
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(1) a state jail felony if it is shown on the trial of |
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the offense that at the time of the offense the commercial motor |
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vehicle was involved in a motor vehicle accident that resulted in |
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bodily injury; or |
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(2) a felony of the second degree if it is shown on the |
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trial of the offense that at the time of the offense the commercial |
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motor vehicle was involved in a motor vehicle |
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accident that |
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resulted in the death of a person. |
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SECTION 12. The heading to Chapter 645, Transportation |
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Code, is amended to read as follows: |
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CHAPTER 645. UNIFIED CARRIER [SINGLE STATE] REGISTRATION |
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SECTION 13. Section 645.001, Transportation Code, is |
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amended to read as follows: |
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Sec. 645.001. FEDERAL UNIFIED [MOTOR] CARRIER |
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REGISTRATION; DEFINITION. (a) In this chapter, "unified carrier |
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registration plan and agreement" means the federal unified carrier |
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registration plan and agreement provided by 49 U.S.C. Section |
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14504a. |
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(b) The Texas Department of Motor Vehicles may, to the |
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fullest extent practicable, participate in [a federal motor carrier
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registration program under] the unified carrier registration plan |
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and agreement [system as defined by Section 643.001 or a single
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state registration system established under federal law]. |
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SECTION 14. Section 645.002(b), Transportation Code, is |
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amended to read as follows: |
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(b) The department may adopt rules regarding the method of |
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payment of a fee required under the unified carrier registration |
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plan and agreement [this chapter]. The rules may: |
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(1) authorize the use of an escrow account described |
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by Subsection (c), an electronic funds transfer, or a valid credit |
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card issued by a financial institution chartered by a state or the |
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United States or by a nationally recognized credit organization |
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approved by the department; and |
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(2) require the payment of a discount or service |
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charge for a credit card payment in addition to the fee. |
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SECTION 15. Section 645.003, Transportation Code, is |
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amended to read as follows: |
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Sec. 645.003. ENFORCEMENT RULES. (a) The department may |
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[shall] adopt rules [that are consistent with federal law] |
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providing for administrative penalties [and sanctions] for a |
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failure to register or submit information and documents under [as
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required by] the unified carrier registration plan and agreement |
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[system or single state registration system] or for a violation of |
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the unified carrier registration plan and agreement [this chapter
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or a rule adopted under this chapter in the same manner as
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Subchapter F, Chapter 643]. |
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(b) The notice, hearing, and other procedural requirements |
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of Section 643.2525 apply to the imposition of an administrative |
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penalty under this section as if the action were being taken under |
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that section. |
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(c) The amount of an administrative penalty imposed under |
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this section is calculated in the same manner as the amount of an |
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administrative penalty imposed under Section 643.251. |
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SECTION 16. Sections 645.004(a) and (c), Transportation |
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Code, are amended to read as follows: |
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(a) A person commits an offense if the person fails to: |
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(1) [violates a rule adopted under this chapter; or
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[(2) fails to] register as required by the unified |
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carrier registration plan and agreement; or |
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(2) submit information and documents as required by |
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the unified carrier registration plan and agreement [a vehicle
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required to be registered under this chapter]. |
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(c) Each day a violation [of a rule] occurs is a separate |
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offense under this section. |
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SECTION 17. Sections 643.001(7-a), 643.064(a), and |
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645.002(a), Transportation Code, are repealed. |
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SECTION 18. (a) The changes in law made by this Act apply |
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only to an offense or violation committed on or after the effective |
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date of this Act. An offense or violation committed before the |
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effective date of this Act is governed by the law in effect on the |
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date the offense or violation was committed, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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an offense or violation was committed before the effective date of |
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this Act if any element of the offense or violation occurred before |
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that date. |
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(b) The change in law made by this Act relating to an |
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application filed under Chapter 643, Transportation Code, applies |
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only to an application filed under that chapter on or after the |
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effective date of this Act. An application filed before that date |
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is governed by the law in effect on the date the application was |
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filed, and the former law is continued in effect for that purpose. |
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SECTION 19. This Act takes effect January 1, 2018. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3254 was passed by the House on May 9, |
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2017, by the following vote: Yeas 138, Nays 7, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
|
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No. 3254 on May 26, 2017, by the following vote: Yeas 124, Nays 20, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3254 was passed by the Senate, with |
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amendments, on May 24, 2017, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |