Adopted Rules Title 43

TITLE 43. TRANSPORTATION

PART 10. TEXAS DEPARTMENT OF MOTOR VEHICLES

INTRODUCTION. The Texas Department of Motor Vehicles (department) adopts amendments to 43 Texas Administrative Code (TAC) Subchapter A, General Provisions, §218.2; Subchapter B, Motor Carrier Registration, §§218.10, 218.11, 218.13, 218.14, 218.16, and 218.18; Subchapter C, Records and Inspections, §218.31 and §218.32; Subchapter D, Motor Transportation Brokers, §218.41; Subchapter E, Consumer Protection, §§218.53, 218.54, 218.56, 218.57, 218.61, 218.62, 218.64, and 218.65; Subchapter F, Administrative Penalties and Sanctions, §218.72; and Subchapter G, Financial Responsibility for Foreign Commercial Motor Vehicles, §218.80 and §218.82. The department adopts amendments to the following sections without changes to the proposed text as published in the August 23, 2024, issue of the Texas Register (49 TexReg 6410): §§218.2, 218.10, 218.11, 218.14, 218.18, 218.31, 218.32, 218.41, 218.53, 218.54, 218.56, 218.57, 218.61, 218.64, 218.65, 218.72, and 218.82. These sections will not be republished. The department adopts §§218.13, 218.16, 218.62, 218.80, and Figure: 43 TAC §218.16(a) with changes at adoption to the proposed text as published in the August 23, 2024, issue of the Texas Register (49 TexReg 6410 and 49 TexReg 6486, respectively). These sections will be republished. The department also adopts the repeal of §218.58, which will not be republished.

These adopted revisions are necessary to require the applicants for operating authority under Chapter 218 and Transportation Code, Chapter 643 to provide the department with more information and documents, so the department can detect and prevent chameleon carriers; to make the rules consistent with the department’s current processes; to make the rules consistent with current law (both Texas law and applicable federal law); to delete language for which the department does not have rulemaking authority; to clarify language; to delete unnecessary language; and to otherwise clean up the rule text.

REASONED JUSTIFICATION.

Subchapter A. General Provisions.

An adopted amendment to §218.2 adds a new subsection (a) and creates a new subsection (b) for the defined terms. Adopted new §218.2(a) adds language stating that the definitions contained in Transportation Code, Chapter 643 apply to Chapter 218 and that the definitions contained in Chapter 643 govern in the event of a conflict with Chapter 218, except for the definition of the word "director" in §218.2. To the extent that the terms used in Chapter 218 are already defined in Transportation Code, Chapter 643, there is no need to duplicate the definitions in Chapter 218. As a result, adopted amendments to §218.2 delete the following definitions because the terms are already defined in Transportation Code, Chapter 643: "department," "household goods," and "insurer." In addition, the department adopts the deletion of the definition for "commercial school bus" from §218.2 because the correct term is "school bus," which is defined in Transportation Code, §643.1015.

An adopted amendment to the word "director" in new §218.2(b) clarifies that the department’s executive director designated the director of the department’s Motor Carrier Division as the director under Transportation Code, §643.001(2). Transportation Code, §643.001(2) defines "director" as the executive director of the department or an employee of the department who is a division or special office director or holds a higher rank and is designated by the director. The department’s executive director has designated the director of the department’s Motor Carrier Division to perform the functions of the director under Chapter 218 and Transportation Code, Chapter 643. Therefore, a separate definition for "director" is necessary.

An adopted amendment to the definition for "advertisement" in new §218.2(b)(1) replaces the word "on-line" with the word "online" to be consistent with current terminology. An adopted amendment to the definition for "binding proposal" in new §218.2(b)(3) deletes the word "formal" because the word is not clear and is not necessary for the definition. Adopted amendments to the definition for "commercial motor vehicle" in new §218.2(b)(8) incorporate the definition of the term in Transportation Code, §548.001 and delete the prior definition, including the language regarding a commercial enterprise. This amendment is necessary to align with statute: neither Transportation Code, §548.001 nor Transportation Code, §643.051(a) defines a commercial motor vehicle to require the vehicle to be used in furtherance of a commercial enterprise. Only Transportation Code, §643.051(b) refers to compensation; however, that requirement only applies to household goods carriers that transport household goods, regardless of the size of the vehicle. Transportation Code, §643.051(a) states that the term "commercial motor vehicle" is defined in Transportation Code, §548.001.

Adopted amendments to the definition for "commercial motor vehicle" in new §218.2(b)(8) also delete the letter for subparagraph (B) due to the adopted deletion of subparagraph (A), add language to create a full sentence regarding the exclusions from the definition for "commercial motor vehicle," and replace prior clause numbers (i) through (vi) with subparagraph letters (A) through (F) to provide the correct rule structure under 1 TAC §91.33. In addition, an adopted amendment to the definition for "commercial motor vehicle" in new §218.2(b)(8)(A) changes the word "and" to "or" regarding a farm vehicle to be consistent with Transportation Code, §548.001. Although an adopted amendment to the definition for "commercial motor vehicle" in new §218.2(b)(8) refers to the definition found in Transportation Code, §548.001, it is helpful to clarify the language regarding a farm vehicle in §548.001 because the language in §548.001 has caused confusion in the past. An adopted amendment to the definition for "commercial motor vehicle" in new §218.2(b)(8)(B) rewords the exception to apply to a single cotton vehicle to be consistent with Transportation Code, §643.002(2). An adopted amendment to the definition for "commercial motor vehicle" in new §218.2(b)(8)(F) deletes language that requires a tow truck to be permitted under Occupations Code, Chapter 2308, Subchapter C to be consistent with the language in Transportation Code, §643.002(7) regarding exemptions from Transportation Code, Chapter 643.

An adopted amendment to the definition for the word "conversion" in new §218.2(b)(10) deletes the word "and" in the title to the Business Organizations Code because the word "and" does not appear in the name of this code. An adopted amendment to new §218.2(b) deletes the definition for the word "division" because the definition is not necessary due to the adoption of amendments that remove the word "division" in Chapter 218, except for references that indicate a particular division. These amendments provide clarity because Chapter 218 contains references to the department’s Motor Carrier Division and the department’s Enforcement Division.

Adopted amendments to the definition for "farmer" and "farm vehicle" in new §218.2(b)(13) and (14) make the definitions consistent with the definitions in 49 C.F.R. §390.5T because Transportation Code, §548.001 says the term "farm vehicle" has the meaning assigned by the federal motor carrier safety regulations assigned by Transportation Code, §644.001. The term "farm vehicle" appears in the definition of "commercial motor vehicle" in §218.2, and Transportation Code, §643.051(a) says that the term "commercial motor vehicle" is defined in Transportation Code, §548.001.

An adopted amendment to the definition for "foreign commercial motor vehicle" in new §218.2(b)(16) replaces the definition with a reference to the definition found in Transportation Code, §648.001, which contains the complete definition. An adopted amendment to the definition for "household goods carrier" in new §218.2(b)(19) deletes the clause regarding a commercial enterprise to align with statute because that clause does not appear in Transportation Code, §643.051(b).

Although Transportation Code, §643.001 defines the term "motor carrier," §643.001 does not define the term "carrier." Prior §218.2(28) included the same definition for the terms "motor carrier" and "carrier." For this reason, an adopted amendment modifies the definition for "motor carrier or carrier" in new §218.2(b)(23) to refer to the definition in Transportation Code, §643.001(6), rather than deleting the defined terms. An adopted amendment to the definition for "motor transportation broker" in new §218.2(b)(24) refers to the definition in Transportation Code, §646.001 because it is not necessary to duplicate statutory language in a rule.

An adopted amendment to new §218.2(b)(28) changes the term "principal place of business" to "principal business address" to use the same term that is used in Transportation Code, §643.052(1). An adopted amendment to new §218.2(b) deletes the definition for the term "reasonable dispatch" because the term only appeared in §218.58, which the department repealed. An adopted amendment to new §218.2(b) deletes the definition for "SOAH" because the acronym does not appear in Chapter 218. Adopted amendments to new §218.2(b) renumber the definitions due to adopted amendments that delete definitions.

Subchapter B. Motor Carrier Registration.

An adopted amendment to §218.10 deletes the first sentence because it is not necessary to repeat language from Transportation Code, §643.051 and §643.002. An adopted amendment to §218.10 also modifies the language regarding a household goods carrier because the term "household goods carrier" is a defined term in §218.2. In addition, an adopted amendment to §218.10 clarifies the language to state that a motor carrier, leasing business, or household goods carrier registers with the department. Lastly, an adopted amendment to §218.10 deletes the reference to workers’ compensation because Subchapter B of Chapter 218 does not set out the minimum workers’ compensation insurance requirements.

Adopted amendments to §218.11 replace the term "the public roads or highways" with "a public highway," which is a defined term in §218.2.

Many of the adopted amendments to §218.13 and §218.14 were presented to the Motor Carrier Regulation Advisory Committee (MCRAC) for review and feedback at the MCRAC meeting in December 2023. The focus of the MCRAC meeting was to discuss the draft amendments to §218.13 and §218.14 to detect and prevent chameleon motor carriers (chameleon carriers). A chameleon carrier is a motor carrier that attempts to continue operating under a certificate of registration without addressing a previous penalty, violation of a legal requirement, or order regarding violation of a legal requirement under a different certificate of registration. There are two types of chameleon carriers: 1) a motor carrier that applies to the department for a new certificate of registration to continue to operate as a motor carrier under a different person’s name or a different legal entity; and 2) a motor carrier that already has more than one certificate of registration under different names or legal entities. Under this second type of chameleon carrier, the motor carrier continues to operate under a different certificate of registration when it incurs a penalty, is found to be in violation of a legal requirement, or receives an order regarding a violation of a legal requirement under one of its current certificates of registration.

At the December 2023 MCRAC meeting, the MCRAC members made informal suggestions and approved two motions requesting changes to the draft amendments to §218.13. The department made changes consistent with MCRAC’s informal suggestions and one of its motions. Although MCRAC recommended the deletion of the draft amendments to §218.13(a)(3)(E), the department modified the language in §218.13(a)(3)(E) and (i) to strike a balance between addressing the concerns of MCRAC and enabling the department to request necessary information to help detect and prevent chameleon carriers.

The department also met with staff from the Federal Motor Carrier Safety Administration (FMCSA) to learn how FMCSA detects chameleon carriers and prevents them from obtaining operating authority for interstate transportation. In addition, the department reviewed the applicable federal laws and forms to inform the department regarding the amendments to §218.13. Further, the department reviewed materials from International Registration Plan, Inc. regarding another state’s procedures to identify a possible chameleon carrier.

Many of the adopted amendments to §218.13 are designed to require new applicants for intrastate operating authority to provide the department with the information it needs to detect and prevent chameleon carriers. The department’s primary goal is to prevent chameleon carriers. However, the additional information and documents that are addressed in the adopted amendments to §218.13 will also help the department detect any current chameleon carriers. The Texas Legislature passed laws to authorize the department to deny intrastate operating authority to chameleon carriers and to revoke a chameleon carrier’s intrastate operating authority, such as Transportation Code, §643.054(a-2) and §643.252(a)(7).

An adopted amendment to the introductory sentence in §218.13(a) clarifies and modernizes the rule by stating that an application for motor carrier registration must be filed electronically in the department’s designated registration system and that the applicant must provide both information and documents. An adopted amendment to §218.13(a)(1) clarifies that the applicant must provide a valid United States Department of Transportation (USDOT) number that was issued to the applicant, to prevent applicants from attempting to use others’ USDOT numbers.

Adopted amendments to §218.13(a)(2) require the applicants to provide additional information and documents, which will help the department to detect, prevent, and revoke chameleon carriers. The department currently requires applicants to provide most of the information in adopted new §218.13(a)(2)(A) and (B) regarding the applicant, including contact and identifying information. Adopted new §218.13(a)(A) also makes the rule text consistent with the department’s current process, which requires that the applicant’s name and email address match the information the applicant provided to FMCSA to obtain the USDOT number that the applicant provided to the department in the application. This requirement helps the department to identify the applicant and to prevent fraud. Adopted new §218.13(a)(2)(C) adds a new requirement for a legible and accurate electronic image of the certificate of filing, certificate of incorporation, or certificate of registration on file with the Secretary of State, as well as the existing requirement for an applicant to provide each assumed named certificate on file with the Secretary of State or county clerk, if applicable. This new requirement also helps the department to identify the applicant and prevent fraud.

Adopted new §218.13(a)(3)(A) through (F) require applicants to provide information and documents on the applicant’s owners, managers, representatives, and affiliates, as applicable. An adopted amendment to §218.13(a)(3)(A) puts authorized representatives of an applicant on notice that they may be required to provide written proof of authority to act on behalf of the applicant. Many of these requirements are new requirements that will provide the department with additional information and documents that are necessary to detect and prevent chameleon carriers.

At the MCRAC meeting in December 2023, members of MCRAC expressed concerns regarding a prior draft of adopted new §218.13(a)(3)(E) because the language could have required applicants to provide information on many employees who do not direct the operations of the motor carrier, and to update the information frequently due to frequent staff turnover in lower-ranking positions. Although the MCRAC members voted to strike new §218.13(a)(3)(E), the department further defined the positions to which this application requirement applies to obtain relevant information to help the department detect and prevent chameleon carriers by focusing on the applicant’s representatives who have or exercise authority to direct some or all of the applicant’s operational policy regarding compliance with applicable laws regarding a motor carrier. Examples of applicable laws regarding a motor carrier are the motor carrier safety regulations that are administered by the Texas Department of Public Safety under Transportation Code, Chapter 644 and 37 TAC Chapter 4 (Commercial Vehicle Regulations and Enforcement Procedures). In addition, the department modified the draft amendments to §218.13(i) that the department provided to the MCRAC members for the December 2023 MCRAC meeting to eliminate the draft amendment that would have required a motor carrier with a certificate of registration to update all information and documents that the motor carrier provided to the department in the motor carrier’s current application within 30 days of a change in the information or documents the motor carrier provided to the department. The adopted amendments to §218.13(i) only require a motor carrier with a certificate of registration to update its principal business address, mailing address, and email address in the department’s online system within 30 days of a change to the information.

The department adopts §218.13(a)(3)(F)(ii) with a change at adoption to decapitalize the word "card" because the word should not be capitalized in the term "Texas identification card."

Adopted amendments to §218.13(a)(4) clarify the language and replace the term "principal place of business" with the term "principal business address" to be consistent with the terminology used in Transportation Code, §643.052(1). Adopted amendments to §218.13(a)(6) delete the word "commercial" from the term "commercial motor vehicle" because Transportation Code, §643.051(b) requires a household goods carrier to obtain operating authority under Transportation Code, Chapter 643, even if their motor vehicles do not fall within the definition of a "commercial motor vehicle" as defined by Transportation Code, §548.001. An adopted amendment to §218.13(a)(6) also removes the word "motor" from the term "vehicle identification number" to make the term consistent with current terminology.

An adopted amendment to §218.13(a)(7) deletes the language that required the applicant to state if the applicant is domiciled in a foreign country because this requirement is not relevant to the type of motor carrier operation, and an adopted amendment adds this requirement to new §218.13(a)(12)(E). Adopted amendments to §218.13(a)(11)(A)(ii) and §218.13(a)(14) replace the references to §218.2(8)(A)(ii) with references to Transportation Code, §548.001(1)(B) to specify the portion of the definition for "commercial motor vehicle" that deals with a vehicle designed or used to transport more than 15 passengers. These adopted amendments are necessary because an adopted amendment to §218.2 removes the specific language from the definition of "commercial motor vehicle" and instead refers broadly to Transportation Code, §548.001.

Adopted amendments to §218.13(a) and §218.13(a)(12) clarify that the requirements apply to an original application. An adopted amendment to §218.13(a)(12)(C) adds the word "the" to improve the wording of the sentence.

An adopted amendment to §218.13(a)(12) deletes the language in prior subparagraph (D) because an adopted amendment moved the language to new §218.13(a)(2)(A), and re-lettered subsequent subparagraphs accordingly. Adopted amendments to new §218.13(a)(12)(D) incorporate the language from the department’s New Applicant Questionnaire into rule text, with certain amendments, such as providing a three-year timeframe for certain responses. The New Applicant Questionnaire was designed to obtain relevant information to help the department detect, prevent, and revoke chameleon carriers.

Adopted amendments to new §218.13(a)(12)(F) include the current application certification in rule text. An adopted amendment to new §218.13(a)(12)(G) clarifies that an application must be accompanied by any other information and documents the department requires to evaluate the application under current law, to allow the department the latitude to request additional required information and documentation in order to prevent chameleon carriers and ensure the applicant is eligible for a certificate of registration under Chapter 218 and Transportation Code, Chapter 643.

Adopted amendments to §218.13(a) also delete prior language because the prior language was modified and incorporated into adopted amendments to §218.13(a) in addition to new requirements. In addition, adopted amendments to §218.13(a) renumber or re-letter subdivisions due to deletions and additions.

An adopted amendment to §218.13(a)(14)(B) replaces the word "vehicles" with the word "vehicle" to correct a grammatical error and to clarify that the requirement applies to each commercial motor vehicle.

Adopted amendments throughout §218.13(c), (g) and (i) change certain instances of the words "will" or "must" to "shall" for clarity and consistency. Government Code, §311.016 defines the word "shall" to impose a duty, which is the intended meaning in §218.13(c), (g) and (i). The department adopts §218.13(c) with changes at adoption to change the word "will" to "must" in two places. Government Code, §311.016 defines the word "must" to create or recognize a condition precedent, which is the intended meaning in §218.13(c). An adopted amendment to §218.13(c)(2) changes the term "registrant’s" to "motor carrier’s" because the term "motor carrier" is defined in §218.2. An adopted amendment to §218.13(c)(2) also changes the term "principal place of business" to "principal business address" to be consistent with terminology in Transportation Code, §643.052(1). An adopted amendment to §218.13(c)(2)(C) deletes the word "commercial" from the term "commercial motor vehicle" because Transportation Code, §643.051(b) applies to household goods carriers, even if their motor vehicles do not fall within the definition of a "commercial motor vehicle" as defined by Transportation Code, §548.001.

An adopted amendment to §218.13(c)(2)(F) replaces the word "information" with "cab card" for consistency. In addition, an adopted amendment to §218.13(c)(2) deletes prior subparagraph (G), which said the display of an image that includes the insurance cab card or the display of insurance information via a wireless communication device does not constitute effective consent for a law enforcement officer or any other person to access any other content of the wireless communication device, because the department does not have the statutory authority for this language. However, the person who chooses to display an image that includes the insurance cab card or the display of insurance information via a wireless communication device can verbally specify the extent of their consent to having the law enforcement officer or any other person access the device prior to displaying the image.

An adopted amendment to §218.13(d)(2) replaces the word "shall" with the word "must." Government Code, 311.016 defines the word "must" to create or recognize a condition precedent, which is the intended meaning in §218.13(d)(2).

An adopted amendment to the introductory sentence in §218.13(e) modernizes the rule text by adding language that says a motor carrier shall electronically file a supplement to an original application in the department’s designated registration system. An adopted amendment to §218.13(e)(7)(A) replaces the word "re-register" with the word "reregister" because the word does not have a hyphen in Transportation Code, §643.0585. An adopted amendment to §217.13(e)(7)(B) replaces the word "facts" with the word "issue" for clarity.

An adopted amendment to §218.13(g) deletes the word "commercial" from the term "commercial motor vehicle" because Transportation Code, §643.051(b) applies to household goods carriers, even if their motor vehicles do not fall within the definition of a "commercial motor vehicle" under Transportation Code, §548.001. Adopted amendments to §218.13(i) require a motor carrier with a certificate of registration to update their principal business address, mailing address, and email address in the department’s online system within 30 days of a change to the information. These amendments to §218.13(i) replace a requirement for the motor carrier to review this information in the department’s online system every six months and to update such information if it is no longer correct. The requirement for the motor carrier to update information within 30 days is intended to provide the department with updated information sooner and to eliminate an unnecessary requirement for a motor carrier to review this information every six months even if there is no change to the information.

An adopted amendment to the title to §218.14 deletes the word "commercial" from the term "commercial motor vehicle" because Transportation Code, §643.051(b) applies to household goods carriers, even if their motor vehicles do not fall within the definition of a "commercial motor vehicle" under Transportation Code, §548.001. Adopted amendments throughout §218.14 change the word "will" to "shall." Government Code, §311.016 defines the word "shall" to impose a duty, which is the intended meaning in §218.14. Adopted amendments throughout §218.14 add a hyphen to the words "90-day" and "seven-day" as a grammatical correction because the words are compound modifiers of the word "certificates."

An adopted amendment to §218.14(b)(1) changes the first sentence to say that the department shall provide the renewal notice to each registered motor carrier at least 30 days before the expiration of the motor carrier’s registration to be consistent with Transportation Code, §643.058(b). An adopted amendment to §218.14(b)(1) also replaces the word "division’s" with the term "Motor Carrier Division’s" for clarity because other sections in Chapter 218 refer to the department’s Enforcement Division, and an adopted amendment to §218.2 deletes the definition for the word "division." In addition, an adopted amendment to §218.14(b)(1) changes the word "mailed" to "sent" because the department may send the notice electronically. Further, an adopted amendment to §218.14(b)(1) removes the requirement for the motor carrier to submit its renewal application to the department at least 15 days prior to the renewal date because motor carriers currently submit their renewals online in the department’s designated registration system in which the renewal is automated if there are no issues with the renewal application. Lastly, an adopted amendment to §218.14(b)(1) adds language that says a motor carrier shall electronically file a renewal application in the department’s designated registration system to modernize the rule.

Adopted amendments to §218.14(b)(1)(A) require the applicant to provide the department with any new information and documents required under §218.13(e) if the information or documents have not previously been provided to the department. The department needs updated information and documents to ensure the motor carrier still qualifies to be a motor carrier, as well as to prevent and detect chameleon carriers.

Adopted amendments to §218.14(b)(5) make the language consistent with Transportation Code, §643.058(d), which prohibits a motor carrier from renewing a registration that has been expired for more than 180 days. Also, adopted amendments to §218.14(b)(5) modernize the rule by adding language that says a motor carrier shall electronically file a supplemental application in the department’s designated registration system. In addition, adopted amendments to §218.14(b)(5) make the language easier to read by breaking the language into multiple subparagraphs and improving the language. An adopted amendment to new §218.14(b)(5)(C) clarifies the language by adding a reference to evidence of financial responsibility as authorized by Transportation Code, §643.102. Adopted amendments to new §218.14(b)(5)(C) replace a reference to the "division" with a reference to the "department" for clarity and consistency.

An adopted amendment to §218.14(c)(2) replaces the word "re-register" with the word "reregister" because the word does not have a hyphen in Transportation Code, §643.0585. Adopted amendments to §218.14(c)(2) replace the term "public streets and highways" with "a public highway," which is a defined term in §218.2. Adopted amendments throughout §218.14(c) and §218.16 change the word "will" to "shall." Government Code, §311.016 defines the word "shall" to impose a duty, which is the intended meaning in §218.14(c) and §218.16.

Adopted amendments to §218.16(a) delete the word "commercial" in the term "commercial automobile liability insurance" because Transportation Code, §643.101 does not use the word "commercial" to describe the amount of liability insurance that is required under Transportation Code, Chapter 643. An adopted amendment to §218.16(a) also clarifies the coverage required under an automobile liability insurance policy, which must cover bodily injury to or death of an individual, as well as loss or damage to property.

In addition, adopted amendments to §218.16(a) clarify the financial responsibility requirements of a motor carrier that operates a foreign commercial motor vehicle in intrastate transportation in Texas if the motor carrier is required to register with the department under Transportation Code, Chapter 643. Although Transportation Code, §643.101(b) authorizes the department to set the amount of required liability insurance at an amount that does not exceed the amount required for a motor carrier under a federal regulation adopted under 49 U.S.C. §13906(a)(1), Transportation Code, §648.102 requires the department to adopt rules that conform with 49 C.F.R. Part 387 requiring motor carriers that operate foreign commercial motor vehicles in Texas to maintain financial responsibility. Also, Transportation Code, §648.102(b) states that Transportation Code, Chapter 648 prevails over any other requirement of state law relating to financial responsibility for operation of foreign commercial motor vehicles in Texas. The department must comply with both Transportation Code, §643.101 and §648.102 regarding the required amount of financial responsibility for a motor carrier that is required to register with the department under Transportation Code, Chapter 643 that operates a foreign commercial motor vehicle in intrastate transportation in Texas. The financial responsibility requirements under 49 C.F.R. §387.9 regarding minimum levels of financial responsibility for motor carriers of property, and 49 C.F.R. §387.33T regarding minimum levels of financial responsibility for motor carriers of passengers, are higher than the minimum levels of financial responsibility for certain motor carriers under §218.16 that do not operate a foreign commercial motor vehicle.

Pursuant to the department’s rulemaking authority under both Transportation Code, §643.101(b) and §648.102, adopted amendments to §218.16(a) adopt by reference the required level of financial responsibility under 49 C.F.R. Part 387, including any amendments that became effective through July 1, 2024, for a motor carrier operating a foreign commercial motor vehicle in intrastate transportation in Texas. An adopted amendment to §218.16(a) deletes reference to the amendments to 49 C.F.R. Part 387 with an effective date of October 23, 2015, because FMCSA has since amended 49 C.F.R. Part 387.

The department adopts §218.16(a) with changes at adoption to clarify that a motor carrier that is required to register with the department under Transportation Code, Chapter 643 and operates a foreign commercial motor vehicle in intrastate transportation in Texas must comply with the minimum level of financial responsibility in 49 C.F.R. Part 387 for such vehicle. If such a motor carrier also operates a motor vehicle that is not a foreign commercial motor vehicle as defined in Transportation Code, §648.001, the motor carrier must comply with the minimum level of financial responsibility in Figure 43 TAC §218.16(a) for the non-foreign commercial motor vehicle while operating in intrastate transportation in Texas.

Adopted amendments to the second and third categories in Figure 43 TAC §218.16(a) modify the language to be consistent with Transportation Code, §548.001(1)(B) regarding vehicles, including buses, designed or used to transport more than 15 passengers, including the driver. The department adopts Figure 43 TAC §218.16(a) with a change at adoption to delete the word "commercial" from the term "commercial school buses" in the fourth category because Transportation Code, §643.1015 uses the term "school bus." Adopted amendments to the seventh and eighth categories in Figure 43 TAC §218.16(a) modify the language to be consistent with language in 49 C.F.R. §387.9(3) and (2), respectively, because federal law provides the minimum levels of financial responsibility for intrastate transportation for these categories under 49 U.S.C. §31139(d). Adopted amendments to the ninth category in Figure 43 TAC §218.16(a) modify the language to be consistent with language in 49 C.F.R. §387.9(4) because Transportation Code, §643.101(b) requires the department to set the amount of required liability insurance at an amount that does not exceed the amount required for a motor carrier under a federal regulation adopted under 49 U.S.C. §13906(a)(1), which cites to §31139 regarding the minimum financial responsibility requirements for transporting property. The statutory authority listed for 49 C.F.R. §387.9 regarding minimum levels of financial responsibility for motor carriers of property includes 49 U.S.C. §13906 and §31139.

Adopted amendments to §218.16(b) remove the words "for hire" because the definition for the term "household goods carrier" in §218.2 already includes the words "for compensation." An adopted amendment to §218.16(b) also changes the word "shipper" to a plural possessive "shippers’" because the language deals with damage to multiple shippers’ cargo. Adopted amendments to §218.16(c) make the language consistent with the language in Transportation Code, §643.106 regarding insurance for employees. Adopted amendments to §218.16(c) also add letters for new subparagraphs (C) and (D) to break the paragraph into additional subdivisions to help make the language consistent with the language in Transportation Code, §643.106.

Adopted amendments throughout §218.16(d) add the term "motor carrier" after the term "self-insured" for clarity. Adopted amendments to §218.16(d)(1) clarify that an applicant for self-insured status under Transportation Code, §643.102 is authorized to request self-insured status for cargo liability, as well as for bodily injury and property damage liability. An adopted amendment to §218.16(d)(2) changes the word "allow" to "enable" for clarity because the department is allowed to determine whether the applicant should be granted self-insured status; however, the department needs information and documents to enable the department to make the determination. An adopted amendment to §218.16(d)(2) also replaces the word "materials" with the term "information and documents" for clarity. An adopted amendment to §218.16(d)(2)(B) replaces the term "security limits" with the term "insurance levels" for clarity. An adopted amendment to §218.16(d)(2)(C) makes the language consistent with the Texas Department of Public Safety’s "satisfactory safety rating" under Transportation Code, Chapter 644 and 37 TAC §4.15. Also, an adopted amendment to §218.16(d)(2)(C) authorizes an applicant to provide evidence of a "satisfactory" safety rating from FMCSA because a safety rating from FMCSA is relevant evidence of the motor carrier’s safety program. Another adopted amendment to §218.16(d)(2)(C) states that an application by a motor carrier with less than a "satisfactory" safety rating or no safety rating will be summarily denied for self-insured status. Transportation Code, §643.102 requires the department to provide a responsible system of self-insurance for a motor carrier, and safety is an integral component of such a system.

Adopted amendments to §218.16(d)(4) replace the word "applicant" with the words "approved self-insured motor carrier" or "motor carrier" for clarity. Adopted amendments to §218.16(d)(4) also update the language to reflect current procedures regarding the filing of annual statements and any reports with the department.

An adopted amendment to §218.16(d)(5) replaces the word "applicant" with the term "motor carrier" for clarity. An adopted amendment to §218.16(d)(5) also clarifies the department’s current practice of including limitations, restrictions, and requirements in the department’s letter approving self-insured status under Transportation Code, §643.102. The department adopts §218.16(d)(5) with a change at adoption to improve the language regarding any department letter approving self-insured status.

Adopted amendments to §218.16(d)(6) update the language to reflect current procedures, to clarify the language, and to remove unnecessary language.

An adopted amendment to §218.16(e)(2)(A) adds the word "a" to correct a grammatical error. An adopted amendment to §218.16(e)(3) changes the word "shall" to "must" because it a condition precedent for an applicant to pay the required filing fee of $100 to obtain a certificate of registration. Government Code, §311.016 states that the word "must" creates or recognizes a condition precedent, which is the intended meaning in §218.16(e)(3). An adopted amendment to §218.16(e)(3) also combines the two prior sentences into one sentence to clarify that the applicant is only required to pay the $100 filing fee when the applicant submits an original application and when the applicant submits a supplemental application when retaining a revoked certificate of registration number. Transportation Code, §643.103(a) and (c) only authorize the department to charge the $100 filing fee in certain circumstances, which are more limited than the circumstances under which a motor carrier’s insurer is required to file proof of insurance with the department under §218.16(e)(2).

An adopted amendment to §218.16(f) makes the language consistent with Transportation Code, §643.104(a) by modifying the language and replacing the word "shall" with "may not." Government Code, §311.016 defines the word "may not" as imposing a prohibition, and the language in §218.16(f) is intended to be a prohibition. Transportation Code, §643.104(a) prohibits an insurer from terminating insurance coverage to a motor carrier that is registered under Subchapter B of Transportation Code, Chapter 643 unless the insurer provides the department with notice at least 30 days before the date the termination of insurance takes effect. Adopted amendments to §218.16(f) also add a hyphen to the words "90-day" and "seven-day" as a grammatical correction because the words are compound modifiers of the word "certificates." Adopted amendments to §218.16(h) make the language consistent with Transportation Code, §643.105 and specify the people who are authorized to sign the affidavit for the motor carrier if an insurer for a motor carrier becomes insolvent, is placed in receivership, or has its certificate of authority suspended or revoked, and the motor carrier no longer has insurance coverage as required by Transportation Code, Chapter 643, Subchapter C.

An adopted amendment to §218.18(d) clarifies that a motor carrier is not required to carry proof of registration in a vehicle leased from a registered leasing business under a short-term lease. Transportation Code, §643.063(a)(2) defines a "short-term lease" as a lease of 30 days or less.

Subchapter C. Records and Inspections.

An adopted amendment to §218.31(b)(3) changes the word "will" to "shall" for consistency and clarity. Government Code, §311.016 defines the word "shall" to impose a duty, and that is the intended meaning in §218.31. Adopted amendments to §218.31(c)(1) and §218.32(c) change the term "principal place of business" to "principal business address" for consistency and to use the same term that is defined in §218.2 and used in Transportation Code, §643.052(1). An adopted amendment to §218.32(c) also decapitalizes the word "department" because the word is not capitalized in Transportation Code, Chapter 643. In addition, an adopted amendment to §218.32(c)(3) deletes a reference to 49 C.F.R. §390.29 because the inspection of documents for motor carriers that are required to register under Transportation Code, Chapter 643 is governed by Transportation Code, §643.254.

Subchapter D. Motor Transportation Brokers.

An adopted amendment to §218.41(b)(3) replaces the word "shipper" with a reference to the person to whom the motor transportation broker provides services to clarify that this language is not limited to a shipper of a household goods motor carrier. An adopted amendment to §218.41(b)(3) also changes the word "it" to "the person" to conform with the adopted amendment to replace the reference to the word "shipper." An adopted amendment to §218.41 deletes prior subsection (d), regarding the amount of recovery, because the department lacks statutory authority for the language.

Subchapter E. Consumer Protection.

Adopted amendments to §218.53 replace the mandatory standard for uniform cargo liability with a voluntary standard for uniform cargo liability for a household goods carrier as authorized by Transportation Code, §643.152. The adopted amendments to §218.53 are consistent with 49 C.F.R. §375.201, which is a federal regulation adopted under Subtitle IV, Title 49, United States Code. The language in Transportation Code, §643.152 is based on language in 49 U.S.C. §14501(c)(1) and (3)(A) and (B), which is a federal preemption statute. Even though 49 U.S.C. §14501(c)(2)(B) says that the restrictions in subsection (c)(1) do not apply to the intrastate transportation of household goods, Transportation Code, §643.152 does not provide an exemption for the intrastate transportation of household goods. The department therefore does not have statutory authority to set a mandatory standard for uniform cargo liability for the intrastate transportation of household goods in Texas.

The absence of a mandatory standard for uniform cargo liability under Transportation Code, §643.152 means that language in a moving services contract regarding cargo liability, including limitation of liability for loss or damage to cargo, is not an enforcement issue for the department. Household goods carriers and shippers are authorized to agree to any cargo liability and limitation of liability for each intrastate shipment of household goods to the extent authorized by other applicable law that the department is not authorized to implement or enforce, such as Transportation Code, Chapter 5, contract law, other consumer protection laws, and certain common law, which a court could interpret in the event of a lawsuit.

An adopted amendment to §218.53 also adopts by reference 49 C.F.R. §375.201, including any amendments that became effective through July 1, 2024.

Adopted amendments to §218.54(a) replace the word "carrier" with the possessive word "carrier’s" to fix a grammatical error, include a reference to the moving service contract between the parties (including a pre-existing transportation contract as described by §218.57(d)) to replace a reference to §218.53 regarding the amount of the household goods carrier’s liability, and clarify that the parties might agree that the household goods carrier would have no liability for loss or damage regarding the shipper’s property. An adopted amendment to §218.54(d) replaces the catch line for the subsection because the word "penalty" is a confusing term. The department is authorized to assess administrative penalties, which is something different than the liability referenced in §218.54(d).

An adopted amendment to §218.56(a)(5) deletes language regarding the mandatory uniform cargo liability that the department deleted in the adopted amendments to §218.53. An adopted amendment to §218.56(a)(5) also rewords the sentence due to the deletion and clarifies that the proposal might state that the household goods carrier would have no liability for loss or damage regarding the shipper’s property. An adopted amendment to §218.56(e)(3) deletes language regarding a portion of a uniform bill of lading under §218.58 because the department adopted the repeal of §218.58. An adopted amendment to §218.56(e)(3) also adds a reference to the moving services contract regarding the authority for the household goods carrier to place the shipment in storage and assess fees relating to storage.

Adopted new §218.57(a)(6) replaces a reference to the mandatory uniform cargo liability under §218.53 for the reasons stated regarding the adopted amendments to §218.53, and replaces the language with text that is similar to the language in 49 C.F.R. §375.201 regarding the disclosure of the limits of the household goods carrier’s liability for loss or damage to a shipper’s household goods; however, the adopted amendment also clarifies that the moving services contract must expressly state if the household goods carrier’s liability is $0.00 for loss or damage to a shipper’s household goods.

Adopted new §218.57(a)(7) replaces a reference to the mandatory uniform cargo liability under §218.53 for the reasons stated regarding the adopted amendments to §218.53, and replaces the language with text that requires the household goods carrier to clearly and concisely disclose any costs associated with the household goods carrier’s increased liability for loss or damage to a shipper’s household goods.

Adopted new §218.57(a)(9) replaces a mandatory clause with an explanation of the clause that a household goods carrier must include in its contract with a shipper to put the shipper on notice regarding the documents that constitute the contract. The mandatory clause in prior §218.57(a)(9) appeared to be written for a hard copy of the moving services contract because it referred to "the front and back of this document." However, the parties may use an electronic version of the moving services contract. Also, the mandatory clause in prior §218.57(a)(9) referred to an addendum, but the average shipper may not know what an addendum is. The adopted new §218.57(a)(9) gives the household goods carrier the flexibility to draft a clause that works for its moving services contract.

Adopted new §218.57(a)(13) adds a clause to require the household goods carrier to include certain language in the moving services contract regarding the claims process for a shipper who wants to file a claim against the household goods carrier. This language is designed to protect a consumer using the services of a household goods carrier, as authorized by Transportation Code, §643.153(a) and (b). Although the department is prohibited from establishing a uniform bill of lading under Transportation Code, §643.152, the prohibitions under §643.152 are intended to prohibit the economic regulation of motor carriers regarding the prices, routes, or services as stated in Transportation Code, §643.151 and the title to Transportation Code, Chapter 643, Subtitle D (Economic Regulation). New §218.57(a)(13) is not an economic regulation regarding the household goods carrier’s prices, routes, or services. New §218.57(a)(13) deals with the claims process under §218.61, which is part of the department’s formal process for resolving a dispute over a fee or damage under Transportation Code, §643.153(b)(1). Due to the adoption of new §218.57(a)(13), the department also adopts amendments to §218.57(a) to delete the word "and" in §218.57(a)(11) and to add the word "and" at the end of §218.57(a)(12).

The department adopts the repeal of §218.58 because Transportation Code, §643.152 says that the department is only authorized to establish a voluntary standard for "uniform bills of lading or receipts for cargo being transported" and that any voluntary standard that the department establishes must be consistent with Subtitle IV, Title 49, United States Code, or a regulation adopted under that law. The language in Transportation Code, §643.152 is based on language in 49 U.S.C. §14501(c)(1) and (3)(A) and (B), which is a federal preemption statute. Transportation Code, §643.152 and 49 U.S.C. 14501(c)(3)(A) both use the term "uniform cargo liability." Although 49 U.S.C. 14501(c)(3)(A) uses the term "uniform bills of lading or receipts for property being transported," Transportation Code, §643.152 uses the similar term "uniform bills of lading or receipts for cargo being transported." The federal laws on household goods carriers are therefore relevant sources to determine what the Texas Legislature intended the term "bill of lading" to mean in Transportation Code, §643.152. Federal law, such as 49 C.F.R. §375.103, and Appendix A to 49 C.F.R. Part 375 (Your Rights and Responsibilities When You Move), Definitions and Common Terms, and the language in the department’s rules, such as the definition for "moving services contract" in §218.2 and the repealed language in §218.58, state that a bill of lading is a moving services contract. A "moving services contract" in repealed §218.58 is a "bill of lading" under state and federal law. The department adopts the repeal of §218.58 because it contained a mandatory standard for a portion of a "uniform bill of lading" regarding limitation of liability, that is impermissible under Transportation Code, §643.152. To the extent the household goods carrier sought to alter or expand on the limitation of liability language that is set forth in §218.57, §218.58 required the household goods carrier to include one of two sets of legal terms and conditions verbatim in their moving services contract with the shipper, which means the language in prior §218.58 was a mandatory standard for a portion of a "uniform bill of lading" regarding limitation of liability. As stated above, prior §218.57(a)(6) and (7) included uniform cargo liability language that said a household goods carrier’s liability for loss or damage to any shipment is $0.60 per pound per article, unless the carrier and shipper agree, in writing, to a greater level of liability. The department adopted the deletion of the language in prior §218.57(a)(6) and (7) because they were mandatory standards, which the department lacks legal authority to create through rule under Transportation Code, §643.152.

Moreover, the department was not authorized to amend §218.58 to say that it is a voluntary standard because Transportation Code, §643.152 says that the department is only authorized to establish a voluntary standard for "uniform bills of lading or receipts for cargo being transported" and that any voluntary standard that the department establishes must be consistent with Subtitle IV, Title 49, United States Code, or a regulation adopted under that law. The language in repealed §218.58 was not entirely consistent with Subtitle IV, Title 49, United States Code, or a regulation adopted under that law, such as 49 C.F.R Part 375 (Transportation of Household Goods in Interstate Commerce; Consumer Protection Regulations).

An adopted amendment to §218.61(b)(1) provides a clear deadline of 23 days for a household goods carrier to issue the acknowledgment letter to the claimant, and an adopted amendment to §218.61(b)(1)(B) makes a conforming amendment due to the adopted amendment to §218.61(b)(1). The prior 20-day deadline for a household goods carrier to send an acknowledgment of the claim to the claimant excluded Sundays and nationally-recognized holidays, which made it harder for a household goods carrier to calculate the deadline.

Adopted amendments to §218.61(b)(1)(A) and (2) provide a clear deadline of 35 days for a shipper to submit a request to the department for mediation. The prior 30-day deadline excluded Sundays and nationally recognized holidays, which made it harder for a shipper to calculate the deadline.

Section 218.62 describes the department’s mediation process, which is part of the department’s formal process for resolving a dispute over a fee or damage under Transportation Code, §643.153(b)(1) to protect a shipper of a household goods carrier from deceptive or unfair practices and unreasonably hazardous activities. Adopted amendments to §218.62(a) clarify that a claimant may only make a written request to the department for mediation regarding a dispute over a fee or damage to a shipper’s household goods because Transportation Code, §643.153(b)(1) only authorizes the department to establish a formal process for resolving a dispute over a fee or damage. There are other potential claims that a claimant may have against a household goods carrier, such as a personal injury claim, that are outside the scope of the department’s mediation program. The claimant may have the right to seek damages against the household goods carrier or the individuals who are responsible for the damages in a court of law.

An adopted amendment to §218.62(c) provides a clear deadline of 35 days for a shipper to submit a request for mediation to the department. The prior 30-day deadline excluded Sundays and nationally recognized holidays, which made it harder for a shipper to calculate the deadline. An adopted amendment to §218.62(d) makes a conforming amendment to increase the number of days after which the department shall deny a request for mediation due to the adopted amendment to §218.62(c). The adopted amendment to §218.62(d) substitutes "125 days" for "120 days (excluding Sundays and nationally recognized holidays)." The current 90-day deadline in §218.61(a)(1) does not include the clause "(excluding Sundays and nationally recognized holidays)," so 90 days plus the new 35-day deadline under the adopted amendment to §218.62(c) equals 125 days. An adopted amendment to §218.62(f) makes a conforming amendment to increase the 30-day deadline to a 35-day deadline for a shipper to submit a request for mediation to the department, due to the adopted amendment to §218.62(c).

An adopted amendment to §218.62(c)(3) corrects a grammatical error by changing the word "has" to "have." Adopted amendments to §218.62(d) change the word "will" to "shall" for consistency and clarity. Government Code, §311.016 defines the word "shall" to impose a duty, which is the intended meaning in §218.62(d). An adopted amendment to §218.62(f) modernizes the rule by authorizing the calculation of the 35-day deadline for requesting mediation to be based on the date the claim denial or settlement offer letter is emailed to the claimant.

Adopted amendments to §218.62(i) add a new paragraph (1) and modify the requirement for a household goods carrier to participate in the mediation process due to the adopted amendments to §218.53 to change the mandatory uniform cargo liability standard to a voluntary standard. The adopted amendments to §218.62(i) strike a balance between protecting a shipper and not forcing the household goods carrier to mediate a shipper’s claim for loss or damage regarding the shipper’s property that conflicts with the terms of the moving services contract regarding the household goods carrier’s liability. Because there is no longer a mandatory standard for uniform cargo liability under the adopted amendments to §218.53, the household goods carrier and the shipper might agree in their moving services contract that the household goods carrier will have $0.00 liability for loss or damage to the shipper’s property, which may reduce the contract costs for the shipper. If the parties agree that there will be $0.00 liability or if a pre-existing transportation contract states the household goods carrier will have $0.00 liability, there is nothing to mediate regarding liability for loss or damages to the shipper’s property. However, there could still be a need for a mediation regarding a possible claim on the fee under the moving services contract, or a claim if the shipper purchases insurance from the household goods carrier and the household goods carrier does not obtain the insurance policy or other appropriate evidence of purchased insurance for the shipper under §218.54. The department adopts §218.62(i)(1) with changes at adoption to remove the word "would" and to change the word "exceed" to "exceeds" to improve the language in the rule text.

Adopted amendments to §218.62(i) also add a new paragraph (2) to separate the language in new paragraph (1) from the prior language in §218.62(i) regarding the department’s authority to impose administrative penalties on a household goods carrier who refuses to participate in mediation as required by §218.62. In addition, an adopted amendment to new §218.62(i)(2) substitutes the word "penalties" for the word "sanctions" because §218.71 deals with penalties, rather than sanctions.

Adopted amendments to §218.64(a) and (b) delete the references to "two incorporated cities" to be consistent with the language in Transportation Code, §643.153(d) regarding the tariff that a household goods carrier shall file with the department regarding the maximum charges for all transportation services. An adopted amendment to §218.64(c)(3)(B) replaces the word "applicant" with the word "association" because the language refers to the collective ratemaking association. An adopted amendment to §218.64(c)(6)(B) makes the language consistent with the language in Transportation Code, §643.154(e) regarding the approval of a collective ratemaking agreement. An adopted amendment to §218.64(c)(9) changes the word "of" to "by" to correct a grammatical error.

Adopted new §218.64(d) exempts a household goods carrier that is required to register under Transportation Code, Chapter 643 from Chapter 15, Business and Commerce Code, for an activity relating to the establishment of a joint line rate, route, classification, or mileage guide, as authorized by Transportation Code, §643.154(c).

Adopted amendments to §218.64 and §218.65 change the word "will" to "shall" for consistency and clarity. Government Code, §311.016 defines the word "shall" to impose a duty, which is the intended meaning in §218.64 and §218.65.

An adopted amendment to §218.65(a)(1)(E) deletes a portion of the language because paragraph (1) is supposed to list the contents of the tariff; however, the department moved the deleted language to the appropriate location in §218.65(a)(4)(D) and (b) under adopted amendments referenced below. An adopted amendment to §218.65(a)(3)(B) replaced the term "principal office" with the term "principal business address," which is the term used in Transportation Code, §643.052(1) and a defined term in §218.2. An adopted amendment to §218.65(a)(3)(C) added the words "certificate of" for clarity because the transmittal letter must include the household goods carrier’s certificate of registration number. Adopted new §218.65(a)(4)(D) includes a modified version of the first sentence in the language that the department removed from §218.65(a)(1)(E) regarding the requirement to file the mileage guide as an addendum to the tariff because §218.65(a)(4) is the correct location for this language. Another adopted amendment to §218.65 deletes prior subsection (b) as outdated and unnecessary because the oldest tariff that is on file with the department is dated 2018. All tariffs must now comply with §218.65. Adopted new §218.65(b) contains the second sentence from the language the department deleted from §218.65(a)(1)(E) regarding the requirement to allow department personnel free access to a computer database used as a mileage guide in the household goods carrier’s tariff.

Subchapter F. Administrative Penalties and Sanctions.

Adopted amendments to §218.72(b) add the word "Texas" to clarify that the references are to the Texas Department of Public Safety. Adopted amendments to §218.72(c) replace the word "motor" with "household goods" for clarity and consistency because the term "household goods carrier" is a defined term in §218.2. Adopted amendments to §218.72(c) also replace the words "mover’s" and "mover" with the terms "goods carrier’s" and "goods carrier" for clarity and consistency because "household goods carrier" is a defined term in §218.2.

Subchapter G. Financial Responsibility for Foreign Commercial Motor Vehicles.

Transportation Code, §648.102 requires the department to adopt rules that conform with 49 C.F.R. Part 387 requiring motor carriers that operate foreign commercial motor vehicles in Texas to maintain financial responsibility. Also, Transportation Code, §648.102(b) states that Transportation Code, Chapter 648 prevails over any other requirement of state law relating to financial responsibility for operation of foreign commercial motor vehicles in Texas. The department complied with Transportation Code, §648.102 by adopting Subchapter G of Chapter 218. The department adopts amendments to Subchapter G to clarify and update the rules.

An adopted amendment to §218.80 clarifies that for the purposes of Subchapter G of Chapter 218, the term "motor carrier" is defined by Transportation Code, §648.001, which defines the term "motor carrier" to include a foreign motor carrier and a foreign motor private carrier, as defined in 49 U.S.C. §13102(6) and (7). Also, adopted amendments to §218.80 clarify that Subchapter G does not apply to a motor carrier that is required to register with the department under Transportation Code, Chapter 643 because the financial responsibility requirements for such a motor carrier are addressed in §218.16. In addition, an adopted amendment to §218.80 clarifies that Subchapter G does not apply to a motor carrier that is required to register with FMCSA for interstate transportation and is not operating in intrastate transportation within this state. FMCSA has the authority to regulate motor carriers regarding interstate transportation.

The department adopts §218.80 with clarifying changes at adoption to reorganize the text into separate subsections (a) and (b), and to state that the language in subsection (b) is an exception to the language in subsection (a).

An adopted amendment to §218.82(a) deletes the prior second sentence regarding a motor carrier that is required to register with the department under Transportation Code, Chapter 643 due to the adopted amendments to §218.80, including the amendment that moves most of this second sentence to §218.80 with some changes. An adopted amendment to §218.82(a) also changes the term "public road or highway" to "public highway," which is a defined term in §218.2.

Adopted amendments to §218.82(b) adopt by reference the required level of financial responsibility under 49 C.F.R. Part 387, including any amendments that became effective through July 1, 2024. Also, an adopted amendment to §218.82(b) deletes reference to the amendments to 49 C.F.R. Part 387 with an effective date of October 23, 2015, because FMCSA has since amended 49 C.F.R. Part 387.

SUMMARY OF COMMENTS.

The department received one written comment on the proposal from the representative for both the Southwest Movers Association and the Texas Trucking Association (commenters).

Comment: The commenters support the department’s revised amendments to §218.13(a)(3)(E) and (i), which the department made in response to an adopted motion and comments from the members of MCRAC at the MCRAC meeting in December 2023.

Response: The department agrees with this comment.

Comment: The commenters are opposed to the department’s proposed amendments regarding the voluntary standard for uniform cargo liability under Transportation Code, §643.152 out of concern that the amendments would eliminate essential consumer protections, are not in the public’s best interest, and could harm the reputation of the household goods moving industry. In addition, the commenters state that they intend to work closely with all stakeholders, their members, the department, and state lawmakers in the upcoming legislative session to address the concerns regarding the voluntary standard for uniform cargo liability.

Response. The department disagrees that Transportation Code, §643.152 allows the department to adopt or enforce a rule requiring a mandatory standard for uniform cargo liability because the statute permits only a voluntary standard. The department is therefore required by Transportation Code, §643.152 to adopt the revisions regarding the voluntary standard for uniform cargo liability. The department agrees that lawmakers in the upcoming legislative session will have an opportunity to decide whether the department’s authority to establish a voluntary standard for uniform cargo liability under Transportation Code, §643.152 should be amended regarding the intrastate transportation of household goods.

SUBCHAPTER A. GENERAL PROVISIONS

43 TAC §218.2

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 643 and §648.102; and Government Code, Chapter 2001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202405996

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER B. MOTOR CARRIER REGISTRATION

43 TAC §§218.10, 218.11, 218.13, 218.14, 218.16, 218.18

STATUTORY AUTHORITY. The department adopts the amendments under Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §643.051, which states that a motor carrier may not operate a commercial motor vehicle, as defined by Transportation Code, §548.001, on a road or highway in Texas, and may not operate a vehicle, regardless of size, to transport household goods for compensation on a road or highway in Texas unless the motor carrier registers with the department under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §643.052, which requires a motor carrier to submit to the department an application on a form prescribed by the department to register under Subchapter B of Transportation Code, Chapter 643, as well as the required components of the application, which include information the department by rule determines is necessary for the safe operation of a motor carrier under Transportation Code, Chapter 643; Transportation Code, §643.053, which provides additional requirements for an application filed with the department under Transportation Code, §643.052; Transportation Code, §643.054, which authorizes the department to deny an application for registration under certain circumstances, in addition to authorizing the department to adopt simplified procedures for the registration of motor carriers transporting household goods as agents for carriers required to register under Transportation Code, Chapter 643; Transportation Code, §643.056, which requires a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643, to supplement the motor carrier’s application for registration under certain circumstances; Transportation Code, §643.058, which specifies the requirements for a motor carrier to apply for renewal of registration issued under Subchapter B of Transportation Code, Chapter 643, as well as the authority for the department to deny an application for renewal of registration; Transportation Code, §643.0585, which specifies the requirements for a motor carrier to apply for reregistration after its registration has been revoked, as well as the authority for the department to deny an application for reregistration; Transportation Code, §643.061, which authorizes the department to adopt rules to vary the registration period under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §643.062, which states that a foreign-based international motor carrier that is required to register under Transportation Code, Chapter 643 or that is registered under Transportation Code, Chapter 645 may not transport persons or cargo in intrastate commerce in Texas; Transportation Code, §643.063, which authorizes the department to adopt rules that provide for the operation of vehicles under a short-term lease under flexible procedures, which are designed to avoid requiring a vehicle to be registered more than once in a calendar year and which allow a leasing business to register a vehicle on behalf of a lessee; Transportation Code, §643.101(b), which authorizes the department to adopt rules to set the amount of liability insurance that a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643 must maintain, at an amount that does not exceed the amount required for a motor carrier under a federal regulation adopted under 49 U.S.C. §13906(a)(1); Transportation Code, §643.102, which authorizes the department to adopt rules to provide for a responsible system of self-insurance for a motor carrier; Transportation Code, §643.103, which authorizes the department to charge a fee of $100 when a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643 files evidence of insurance in the amounts required by Transportation Code, §643.101 or §643.1015, or evidence of financial responsibility as described by Transportation Code, §643.102, in a form prescribed by the department; Transportation Code, §643.252, which authorizes the department to deny a registration issued under Transportation Code, Chapter 643 under certain circumstances; Transportation Code, §648.102, which authorizes the department to adopt rules that conform with 49 C.F.R. Part 387 requiring motor carriers operating foreign commercial motor vehicles in Texas to maintain financial responsibility; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; Government Code, §2001.054, which specifies the requirements regarding the grant, denial, renewal, revocation, suspension, annulment, or withdrawal of a license; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 643; and Government Code, Chapter 2001.

§218.13.Application for Motor Carrier Registration.

(a) Form of original application. An original application for motor carrier registration must be filed electronically in the department’s designated motor carrier registration system, must be in the form prescribed by the director and must contain, at a minimum, the following information and documents.

(1) USDOT number. A valid USDOT number issued to the applicant.

(2) Applicant information and documents. All applications must include the following information and documents:

(A) The applicant’s name, business type (e.g., sole proprietor, corporation, or limited liability company), telephone number, email address, and Secretary of State file number, as applicable. The applicant’s name and email address must match the information the applicant provided to FMCSA to obtain the USDOT number that the applicant provided in its application to the department.

(B) An application submitted by an entity, such as a corporation, general partnership, limited liability company, limited liability corporation, limited partnership, or partnership, must include the entity's Texas Comptroller's Taxpayer Number or the entity's Federal Employer Identification Number.

(i) The certificate of filing, certificate of incorporation, or certificate of registration on file with the Texas Secretary of State; and

(ii) each assumed name certificate on file with the Secretary of State or county clerk.

(3) Information and documents regarding applicant’s owners, representatives, and affiliates. All applications must include the following information and documents on the applicant’s owners, representatives, and affiliates, as applicable:

(A) The contact name, email address, and telephone number of the person submitting the application. An authorized representative of the applicant who files an application with the department on behalf of an applicant may be required to provide written proof of authority to act on behalf of the applicant.

(B) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, business address, and ownership percentage for each owner, partner, member, or principal if the applicant is not a publicly traded company.

(C) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, and business address for the following if the applicant is owned in full or in part by a legal entity:

(i) each officer, director, or trustee authorized to act on behalf of the applicant; and

(ii) each manager or representative who has or exercises authority to direct some or all of the applicant’s operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions, on behalf of the applicant.

(D) The name, employer identification number, ownership percentage, and non-profit or publicly traded status for each legal entity that owns the applicant in full or in part.

(E) The name, social security number or Individual Taxpayer Identification Number (to the extent the natural person is authorized by law to obtain one of these numbers), date of birth, and business address for each person who serves or will serve as the applicant’s manager, operator, or representative who has or exercises authority to direct some or all of the applicant’s operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions.

(F) A legible and accurate electronic image of at least one of the following unexpired identity documents for each natural person identified in the application:

(i) a driver license issued by a state or territory of the United States. If the driver license was issued by the Texas Department of Public Safety, the image must also include the audit number listed on the Texas driver license;

(ii) Texas identification card issued by the Texas Department of Public Safety under Transportation Code, Chapter 521, Subchapter E, or an identification certificate issued by a state or territory of the United States;

(iii) license to carry a handgun issued by the Texas Department of Public Safety under Government Code, Chapter 411, Subchapter H;

(iv) United States passport; or

(v) United States military identification.

(4) Principal business address and mailing address. The applicant must provide the applicant’s principal business address, which must be a physical address. If the mailing address is different from the principal business address, the applicant must also provide the applicant’s mailing address.

(5) Legal agent.

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

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

(C) A legal agent for service of process shall be a Texas resident, a domestic corporation, or a foreign corporation authorized to transact business in Texas with a Texas physical address, rather than a post office box, for service of process.

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

(7) Type of motor carrier operations. An applicant must state if the applicant proposes to transport passengers, household goods, or hazardous materials.

(8) Insurance coverage. An applicant must indicate insurance coverage as required by §218.16 of this title (relating to Insurance Requirements).

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

(10) Drug-testing certification. Each motor carrier must certify, as part of the application, that the motor carrier is in compliance with the drug-testing requirements of 49 C.F.R. Part 382. If the motor carrier belongs to a consortium, as defined by 49 C.F.R. Part 382, the applicant must provide the names of the persons operating the consortium.

(11) Duration of registration.

(A) An applicant must indicate the duration of the desired registration. Except as provided otherwise in this section, registration may be for seven calendar days, 90 calendar days, one year, or two years. The duration of registration chosen by the applicant will be applied to all vehicles.

(i) Household goods carriers may not obtain seven-day or 90-day certificates of registration.

(ii) Motor carriers that transport passengers in a commercial motor vehicle as defined by Transportation Code, §548.001(1)(B) may not obtain seven-day or 90-day certificates of registration, unless approved by the director.

(B) Interstate motor carriers that operate in intrastate commerce and meet the requirements under §218.14(c) of this title (relating to Expiration and Renewal of Commercial Motor Vehicles Registration) are not required to renew a certificate of registration issued under this section.

(12) Additional requirements. The following fees, documents, and information must be submitted with the application.

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

(i) $100 for annual and biennial registrations;

(ii) $25 for 90-day registrations; or

(iii) $5 for seven-day registrations.

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

(i) $10 for each vehicle that the motor carrier proposes to operate under a seven-day, 90-day, or annual registration; or

(ii) $20 for each vehicle that the motor carrier proposes to operate under a biennial registration.

(C) An application must be accompanied by proof of insurance or financial responsibility and the insurance filing fee as required by §218.16.

(D) An application must include the completed New Applicant Questionnaire (Applicant Questionnaire), which consists of questions and requirements, such as the following:

(i) Have you ever had another motor carrier certificate of registration number issued by the department in the three years prior to the date of this application? If your answer is yes, provide the certificate of registration number for the motor carrier(s). In the Applicant Questionnaire, the word "you" means the applicant or any business that is operated, managed, or otherwise controlled by or affiliated with the applicant or a family member, corporate officer, manager, operator, or owner (if the business is not a publicly traded company) of the applicant. In the Applicant Questionnaire, the word "manager" means a person who has or exercises authority to direct some or all of the applicant’s operational policy regarding compliance with applicable laws regarding a motor carrier, excluding sales functions.

(ii) Have you had a Compliance Review or a New Entrant Audit by the Texas Department of Public Safety that resulted in an Unsatisfactory Safety Rating in the three years prior to the date of your application? If your answer is yes, provide the USDOT number(s) and the certificate of registration number(s) issued by the department.

(iii) Are you currently under an Order to Cease from the Texas Department of Public Safety? If your answer is yes, provide the motor carrier’s USDOT number(s) and the Carrier Profile Number(s). The Texas Department of Public Safety assigns a Carrier Profile Number (CP#) when they perform a compliance review on a motor carrier’s operations to determine whether the motor carrier meets the safety fitness standards.

(iv) Are you related to another motor carrier, or have you been related to another motor carrier within the three years prior to the date of your application? The relationship may be through a person (including a family member), corporate officer, or partner who also operates or has operated as a motor carrier in Texas. If your answer is yes, state how you are related and provide the motor carrier’s name and the motor carrier’s USDOT number, or the certificate of registration number issued by the department for each related motor carrier.

(v) Do you currently owe any administrative penalties to the department, regardless of when the final order was issued to assess the administrative penalties? If your answer is yes, provide the following information under which the administrative penalties were assessed:

(I) department's notice number(s); and

(II) the motor carrier's USDOT number and certificate of registration number issued by the department;

(vi) Name and title of person completing the Applicant Questionnaire; and

(vii) Is the person completing the Applicant Questionnaire an authorized representative of the applicant? If your answer is yes, please add the person's name, job title, phone number, and address.

(E) An applicant must state if the applicant is domiciled in a foreign country.

(F) An application must include a certification that the information and documents provided in the application are true and correct and that the applicant complied with the application requirements under Chapter 218 of this title (relating to Motor Carriers) and Transportation Code, Chapter 643.

(G) An application must be accompanied by any other information and documents required by the department to evaluate the application under current law, including board rules.

(13) Additional requirements for household goods carriers. The following information, documents, and certification must be submitted with all applications by household goods carriers:

(A) A copy of the tariff that sets out the maximum charges for transportation of household goods, or a copy of the tariff governing interstate transportation services. If an applicant is governed by a tariff that its association has already filed with the department under §218.65 of this title (relating to Tariff Registration), the applicant complies with the requirement in this subparagraph by checking the applicable box on the application to identify the association's tariff.

(B) If the motor vehicle is not titled in the name of the household goods carrier, the following lease information and documentation, notwithstanding §218.18(a) of this title (relating to Short-term Lease and Substitute Vehicles):

(i) a copy of a valid lease agreement for each motor vehicle that the household goods carrier will operate; and

(ii) the name of the lessor and their USDOT number for each motor vehicle leased to the household goods carrier under a short-term lease.

(C) A certification that the household goods carrier has procedures that comply with Code of Criminal Procedure, Article 62.063(b)(3), which prohibits certain people who are required to register as a sex offender from providing moving services in the residence of another person without supervision.

(14) Additional requirements for passenger carriers. The following information and documents must be submitted with all applications for motor carriers that transport passengers in a commercial motor vehicle as defined by Transportation Code, §548.001(1)(B):

(A) If the commercial motor vehicle is titled in the name of the motor carrier, a copy of the International Registration Plan registration receipt or a copy of the front and back of the title for each commercial motor vehicle; or

(B) If the commercial motor vehicle is not titled in the name of the motor carrier, the following lease information and documentation, notwithstanding §218.18(a) of this title:

(i) A copy of a valid lease agreement for each commercial motor vehicle; and

(ii) The name of the lessor and their USDOT number for each commercial motor vehicle leased to the motor carrier under a short-term lease.

(b) Conditional acceptance of application. If an application has been conditionally accepted by the director pursuant to Transportation Code, §643.055, the applicant may not operate the following until the department has issued a certificate under Transportation Code, §643.054:

(1) a commercial motor vehicle or any other motor vehicle to transport household goods for compensation, or

(2) a commercial motor vehicle to transport persons or cargo.

(c) Approved application. An applicant meeting the requirements of this section and whose registration is approved shall be issued the following documents:

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

(2) Insurance cab card. The department shall issue an insurance cab card listing all vehicles to be operated under the carrier's certificate of registration. The insurance cab card shall be continuously maintained at the motor carrier’s principal business address. The insurance cab card must be valid for the same period as the motor carrier's certificate of registration and shall contain information regarding each vehicle registered by the motor carrier.

(A) A current copy of the page of the insurance cab card on which the vehicle is shown shall be maintained in each vehicle listed, unless the motor carrier chooses to maintain a legible and accurate image of the insurance cab card on a wireless communication device in the vehicle or chooses to display such information on a wireless communication device by accessing the department's online system from the vehicle. The appropriate information concerning that vehicle shall be highlighted if the motor carrier chooses to maintain a hard copy of the insurance cab card or chooses to display an image of the insurance cab card on a wireless communication device in the vehicle. The insurance cab card or the display of such information on a wireless communications device shall serve as proof of insurance as long as the motor carrier has continuous insurance or financial responsibility on file with the department.

(B) On demand by a department investigator or any other authorized government personnel, the driver shall present the highlighted page of the insurance cab card that is maintained in the vehicle or that is displayed on a wireless communication device in the vehicle. If the motor carrier chooses to display the information on a wireless communication device by accessing the department's online system, the driver shall locate the vehicle in the department's online system upon request by the department-certified inspector or other authorized government personnel.

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

(D) Any erasure or alteration of an insurance cab card that the department printed out for the motor carrier renders it void.

(E) If an insurance cab card is lost, stolen, destroyed, or mutilated; if it becomes illegible; or if it otherwise needs to be replaced, the department shall print out a new insurance cab card at the request of the motor carrier. Motor carriers are authorized to print out a copy of a new insurance cab card using the department's online system.

(F) The department is not responsible for a motor carrier's inability to access the insurance cab card using the department's online system.

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

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

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

(e) Supplement to original application. A motor carrier required to register under this section shall electronically file in the department’s designated motor carrier registration system a supplemental application under the following circumstances.

(1) Change of cargo. A registered motor carrier may not begin transporting household goods or hazardous materials unless the carrier submits a supplemental application to the department and shows the department evidence of insurance or financial responsibility in the amounts specified by §218.16.

(2) Change of name. A motor carrier that changes its name shall file a supplemental application for registration no later than the effective date of the change. The motor carrier shall include evidence of insurance or financial responsibility in the new name and in the amounts specified by §218.16. A motor carrier that is a corporation must have its name change approved by the Texas Secretary of State before filing a supplemental application. A motor carrier incorporated outside the state of Texas must complete the name change under the law of its state of incorporation before filing a supplemental application.

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

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

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

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

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

(A) filing a supplemental application to reregister instead of filing an original application; and

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

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

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

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

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

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

(h) Substitute vehicles leased from leasing businesses. A registered motor carrier is not required to comply with the provisions of subsection (e) of this section for a substitute vehicle leased from a business registered under §218.18 of this title (relating to Short-term Lease and Substitute Vehicles). A motor carrier is not required to carry proof of registration as described in subsection (d) of this section if a copy of the lease agreement for the originally leased vehicle is carried in the cab of the temporary replacement vehicle.

(i) Once the motor carrier obtains a certificate of registration, the motor carrier shall update its principal business address, mailing address, and email address in the department's online system within 30 days of a change to the information.

§218.16.Insurance Requirements.

(a) Automobile liability insurance requirements. A motor carrier must file proof of automobile liability insurance with the department on a form acceptable to the director for each vehicle required to be registered under this subchapter. The motor carrier shall carry and maintain automobile liability insurance that is combined single limit liability for bodily injury to or death of an individual per occurrence, and loss or damage to property (excluding cargo) per occurrence. Extraneous information will not be considered acceptable, and the department may reject proof of automobile liability insurance if it is provided in a format that includes information beyond what is required. Minimum insurance levels are indicated in the following table. However, a motor carrier that is required to register with the department under Transportation Code, Chapter 643 and operates a foreign commercial motor vehicle must comply with the minimum level of financial responsibility in 49 C.F.R. Part 387 for such vehicle. The department adopts by reference 49 C.F.R. Part 387 regarding the required level of financial responsibility, including any amendments that became effective through July 1, 2024.

Figure: 43 TAC §218.16(a) (.pdf)

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

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

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

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

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

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

(B) $100,000 for accidental death and dismemberment;

(D) $500 for the maximum weekly benefit.

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

(1) General qualifications. A motor carrier may meet the insurance requirements of subsections (a) and (b) of this section by filing an application, in a form prescribed by the department, to qualify as a self-insured motor carrier. The application must include a true and accurate statement of the motor carrier's financial condition and other evidence that establishes its ability to satisfy obligations for bodily injury and property damage liability, or cargo liability, if applicable, without affecting the stability or permanency of its business. The department may accept USDOT evidence of the motor carrier's qualifications as a self-insured motor carrier.

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

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

(B) Self-insurance program. An applicant must demonstrate that it has established and shall maintain a sound insurance program that will protect the public against all claims involving motor vehicles to the same extent as the minimum insurance levels applicable under this section. In determining whether an applicant is maintaining a sound insurance program, the department shall consider:

(i) reserves;

(ii) sinking funds;

(iii) third-party financial guarantees;

(iv) parent company or affiliate sureties;

(v) excess insurance coverage; and

(vi) other appropriate aspects of the applicant's program.

(C) Safety program. An applicant must submit evidence of a current "satisfactory" safety rating from the Texas Department of Public Safety under Transportation Code, Chapter 644 and administrative rules adopted under Transportation Code, Chapter 644 or a "satisfactory" safety rating from FMCSA under federal law. An application by a motor carrier with less than a current "satisfactory" safety rating or no safety rating will be summarily denied.

(3) Other securities or agreements. The department may accept an application for approval of a security or agreement if satisfied that the security or agreement offered will adequately protect the public.

(4) Periodic reports. An approved self-insured motor carrier shall file with the department annual statements and any reports required by the department reflecting the motor carrier’s financial condition and the status of its self-insurance program while the motor carrier is self-insured.

(5) Duration and coverage of self-insured status. The department may approve an applicant as a self-insured motor carrier for any specific time or for an indefinite time. An approved self-insured status only applies to the type of cargo that the motor carrier reported to the department in the application for self-insured status, and is subject to any limitations, restrictions, or requirements that the department includes in any letter approving self-insured status.

(6) Revocation of self-insured status. On receiving evidence that a self-insured motor carrier's financial condition has changed, that its safety program or record is inadequate, or that it is otherwise not in compliance with this subchapter, the department may at any time require the self-insured motor carrier to provide additional information and documents. On 10 days' notice from the department, the self-insured motor carrier shall provide the department with information and documents, as applicable, that demonstrate that it remains in compliance with the requirements of this section and of any active self-insurance requirements included in the department's approval letter. If a motor carrier fails to comply with the applicable requirements under this section, its self-insured status may be revoked. The revocation of self-insured status will be governed by Chapter 224 of this title (relating to Adjudicative Practice and Procedure) and Transportation Code, Chapter 643.

(7) Appeal of denial of application for self-insured status. An applicant may appeal a denial of self-insured status by filing an appeal in accordance with §224.126 of this title (relating to Appeal of a Denial of Self-Insured Status).

(e) Filing proof of insurance with the department.

(1) Forms.

(A) A motor carrier shall file and maintain proof of automobile liability insurance for all vehicles required to be registered under this subchapter at all times. This proof shall be filed on a form acceptable to the director.

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

(2) Filing proof of insurance. A motor carrier's insurer shall file and maintain proof of insurance on a form acceptable to the director:

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

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

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

(E) when the motor carrier changes its name under §218.13(e)(2) of this title (relating to Application for Motor Carrier Registration);

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

(G) when replacing another active insurance filing.

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

(4) Acceptable filings. The motor carrier's insurer must file proof of insurance with the department in a form prescribed by the department and approved by an authorized agent of the insurer.

(f) Cancellation of insurance coverage. Except when replaced by another acceptable form of insurance coverage or proof of financial responsibility approved by the department, insurance coverage may not be canceled or withdrawn until 30 days after notice has been given to the department by the insurer in a form approved by the department. Nonetheless, proof of insurance coverage for a seven-day or 90-day certificate of registration may be canceled by the insurer without 30 days' notice if the certificate of registration is expired, suspended, or revoked, and the insurer provides a cancellation date on the proof of insurance coverage.

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

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

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

(h) Insolvency of insurance carrier. An affidavit required by Transportation Code, §643.105 must be executed by an owner, partner, or officer of the motor carrier.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202405997

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER C. RECORDS AND INSPECTIONS

43 TAC §218.31, §218.32

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 643; and Government Code, Chapter 2001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202405998

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER D. MOTOR TRANSPORTATION BROKERS

43 TAC §218.41

STATUTORY AUTHORITY. The department adopts the amendments under Transportation Code, §646.003, which prohibits a person from acting as a motor transportation broker unless the person provides a bond to the department; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 646; and Government Code, Chapter 2001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202405999

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER E. CONSUMER PROTECTION

43 TAC §§218.53, 218.54, 218.56, 218.57, 218.61, 218.62, 218.64, 218.65

STATUTORY AUTHORITY. The department adopts the amendments under Transportation Code, §643.152, which authorizes the department to establish voluntary standards for uniform cargo liability and uniform bills of lading or receipts for cargo, which standards must be consistent with Subtitle IV, Title 49, United States Code, or a regulation adopted under that law; Transportation Code, §643.153, which authorizes the department to adopt rules to protect a consumer using the service of a motor carrier who is transporting household goods for compensation; and authorizes the department to adopt rules that are necessary to ensure that a customer of a household goods carrier is protected from deceptive or unfair practices and unreasonably hazardous activities; Transportation Code, §643.153(d), which requires a household goods carrier that is required to register under Subchapter B of Transportation Code, Chapter 643 to file a tariff with the department that establishes the maximum charges for all transportation services; Transportation Code, §643.154(c), which authorizes the department to adopt a rule to exempt a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643, from Chapter 15, Business and Commerce Code, for an activity relating to the establishment of a joint line rate, route, classification, or mileage guide; Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §643.051, which states that a motor carrier may not operate a vehicle, regardless of size, to transport household goods for compensation on a road or highway in Texas unless the motor carrier registers with the department under Subchapter B of Transportation Code, Chapter 643; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 643; and Government Code, Chapter 2001.

§218.62.Mediation by the Department.

(a) The claimant may make a written request to the department for mediation regarding a dispute over a fee, or damage to the shipper’s household goods.

(b) The claimant must attempt to resolve the claim with the household goods carrier by making a reasonable effort to follow the household goods carrier's claim process before requesting mediation by the department.

(1) any portion of the claim is denied by the carrier;

(2) the carrier makes a firm settlement offer that is not acceptable to the claimant; or

(3) 90 days have elapsed since the carrier received the claim and the carrier has not responded to the claimant as prescribed in §218.61(b)(2) of this title (relating to Claims).

(d) Except as provided in subsection (e) of this section, the department shall deny a request for mediation made more than 125 days after the carrier received the claim. Additionally, the department shall deny a request for mediation if the carrier did not receive the claim within 90 days after the delivery of the shipment to the final destination or within 90 days after a reasonable time for delivery has elapsed in the case of failure to make delivery.

(e) The department may grant a mediation request if the claimant and the carrier agree to participate in the mediation process and:

(1) the claimant was not advised in writing at least one time of the right to mediation as required by §218.61(b)(1)(A) or (2); or

(2) the claimant does not receive the written denial or settlement offer letter required by §218.61(b)(2).

(f) For purposes of subsection (c)(1) and (2) of this section, the 35-day deadline for requesting mediation is calculated from the latter of:

(1) the date of the claim denial or settlement offer letter; or

(2) the date the claim denial or settlement offer letter is mailed, emailed, or faxed to the claimant.

(g) The department will not grant more than one mediation request to a claimant for one shipment of household goods.

(h) The department will coordinate the selection of a mediator. The mediation will be conducted by written submissions, telephone conferences, or mediation sessions held at the department's facilities in Austin. The department will establish the time, date, and form of the mediation session.

(i) Participation in this mediation process by a household goods carrier.

(1) A household goods carrier shall participate in this mediation process if the department grants a mediation request under this section regarding the following:

(A) a fee under the moving services contract; or

(B) the household goods carrier’s liability for loss or damage to the shipper’s household goods to the extent the following occurs:

(i) the shipper and household goods carrier agreed in the moving services contract that the household goods carrier’s cargo liability exceeds $0.00;

(ii) a pre-existing transportation contract described by §218.57(d) of this title (Relating to Moving Services Contract) states that the household goods carrier’s cargo liability exceeds $0.00; or

(iii) if the shipper purchases insurance from the household goods carrier and the household goods carrier does not obtain the insurance policy or other appropriate evidence of purchased insurance for the shipper under §218.54 of this title (Relating to Selling Insurance to Shippers).

(2) The department may impose administrative penalties, under §218.71 of this title (relating to Administrative Penalties), on a household goods carrier who refuses to participate in the mediation process or otherwise fails to comply with the requirements of this section.

(j) If the claimant fails to appear at the mediation after due notice or, if the mediator determines the claimant has not cooperated in the mediation process, the department's mediation process shall be considered concluded. The claimant may consider pursuing the claim through an appropriate court of law.

(k) The mediator shall preside and have discretion over the mediation procedures, including the ability to require the claimant and the household goods carrier to provide information and documents in a timely fashion.

(l) If the household goods carrier makes a written report of the results of the inspection documenting the lost or damaged household goods and uses the report during the department's mediation, then the carrier shall provide the original or a legible copy of the report to the claimant.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202406001

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

43 TAC §218.58

STATUTORY AUTHORITY. The department adopts the repeal under Transportation Code, §643.152, which authorizes the department to establish voluntary standards for uniform cargo liability and uniform bills of lading or receipts for cargo, which standards must be consistent with Subtitle IV, Title 49, United States Code, or a regulation adopted under that law; Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted repeal implements Transportation Code, Chapter 643.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202406000

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER F. ADMINISTRATIVE PENALTIES AND SANCTIONS

43 TAC §218.72

STATUTORY AUTHORITY. The department adopts the amendments under Transportation Code, §643.252, which authorizes the department to suspend or revoke a registration issued under Transportation Code, Chapter 643 or place on probation a motor carrier whose registration is suspended; Transportation Code, §643.257, which authorizes the department to order a motor carrier that violates Transportation Code, Chapter 643 or a rule or order adopted under Transportation Code, Chapter 643 to pay a refund to a consumer who paid the motor carrier to transport household goods; Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, Chapter 643; and Government Code, Chapter 2001.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202406002

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160

SUBCHAPTER G. FINANCIAL RESPONSIBILITY FOR FOREIGN COMMERCIAL MOTOR VEHICLES

43 TAC §218.80, §218.82

STATUTORY AUTHORITY. The department adopts the amendments under Transportation Code, §648.102, which authorizes the department to adopt rules that conform with 49 C.F.R. Part 387 requiring motor carriers operating foreign commercial motor vehicles in Texas to maintain financial responsibility; Transportation Code, §643.101(b), which authorizes the department to adopt rules to set the amount of liability insurance that a motor carrier that is required to register under Subchapter B of Transportation Code, Chapter 643 must maintain, at an amount that does not exceed the amount required for a motor carrier under a federal regulation adopted under 49 U.S.C. §13906(a)(1); Transportation Code, §643.003, which authorizes the department to adopt rules to administer Transportation Code, Chapter 643; Transportation Code, §1002.001, which authorizes the board to adopt rules that are necessary and appropriate to implement the powers and duties of the department under the Transportation Code and other laws of this state; Government Code, §2001.004, which requires state agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; and the statutory authority referenced throughout this preamble and in the rule text, which is incorporated herein by reference.

CROSS REFERENCE TO STATUTE. The adopted amendments implement Transportation Code, §648.102; and Government Code, §2001.004.

§218.80.Purpose and Scope.

(a) The purpose of this subchapter is to comply with Transportation Code, §648.102. For the purposes of this subchapter, the term "motor carrier" is defined by Transportation Code, §648.001, and does not include the following, except as provided by subsection (b) of this section:

(1) a motor carrier that is required to register with the department under Transportation Code, Chapter 643; or

(2) a motor carrier that is required to register with FMCSA for interstate transportation, and is not operating in intrastate transportation within this state.

(b) If a motor carrier is required to register with the department under Transportation Code, Chapter 643, the motor carrier must comply with the financial responsibility requirements in §218.16 of this title (relating to Insurance Requirements).

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on December 13, 2024.

TRD-202406003

Laura Moriaty

General Counsel

Texas Department of Motor Vehicles

Effective date: January 2, 2025

Proposal publication date: August 23, 2024

For further information, please call: (512) 465-4160