Part 387 - Financial Responsibility for Motor Carriers TXDOT _www by chenboying

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									                  Part 387 - Financial Responsibility for Motor Carriers
Financial responsibility means having insurance policies or surety bonds sufficient to satisfy the min-
imum public liability requirements. Public liability means liability for bodily injury, property damage, and
environmental restoration. Environmental restoration means restitution for the loss, damage, or
destruction of natural resources arising out of an accidental discharge of toxic or other environmentally
harmful materials or liquids.

Requirement for Financial Responsibility

Motor carriers operating CMVs in interstate, foreign, or intrastate commerce, must have at least the min-
imum amount of insurance required by law.

 • For Interstate Property Carriers, see 387.7 & 387.9
 • For Interstate Passenger Carriers, see 387.31 & 387.33
 • For Intrastate Carriers, see TXDOT Form #1899, Page 3 of 5
                         TXDOT (www.dot.state.tx.us) 1-800-299-1700
Who should register?

 • Transportation Code, Chapter 643, provides that a motor carrier may not operate CMV or a tow truck,
   or transport household goods on a for-hire basis, on a road or highway of this state without first reg-
   istering their operations with the Texas Department of Transportation (TXDOT), Motor Carrier
   Division.
   Under 43 TAC 18.2(49), the following are not considered tow trucks:
      (A) a motor vehicle owned and used exclusively by a governmental entity, including a public
          school district;
      (B) a motor vehicle towing:
               (i) a race car;
               (ii) a motor vehicle for exhibition; or
               (iii) an antique motor vehicle;
      (C) a recreational vehicle towing another vehicle;
      (D) a motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device if
          the vehicle is not operated in the furtherance of a commercial enterprise; or
      (E) a motor vehicle that is controlled or operated by a farmer or rancher and that is used for tow-
          ing a farm vehicle.
 • All for-hire transporters of household goods are required to register their operations with Texas
   Department of Transportation (TXDOT), Motor Carrier Division, regardless of the size of equip-
   ment such carriers operate. Household goods carriers have different requirements than other types
   of motor carriers.

As of November 2004, the TXDoT Single State Registration System was linked to the FMCSA’s Safety
and Fitness Electronic Records (SAFER) database, which will reduce duplicate filings for motor carriers
conducting both interstate and intrastate operations.


A Texas Motor Carrier ’s Guide to Highway Safety                                                            387-1
What is a motor carrier?

• Interstate definition for insurance purposes (387.5) Motor carrier means a for-hire motor carrier or a
    private motor carrier. The term includes, but is not limited to, a motor carrier's agent, officer, or rep-
    resentative; an employee responsible for hiring, supervising, training, assigning, or dispatching a
    driver; or an employee concerned with the installation, inspection, and maintenance of motor vehicle
    equipment and/or accessories. NOTE: See federal regulations cited above for insurance and regis-
    tration requirements.

• Texas definition for registration and insurance purposes (TRC 643.001(6)) "Motor carrier" means an
    individual, association, corporation, or other legal entity that controls, operates, or directs the opera-
    tion of one or more vehicles that transport persons or cargo over a road or highway in this state.


In Texas, a CMV includes:

• any motor vehicle or combination of vehicles with a gross weight, registered weight, or gross weight
    rating in excess of 26,000 pounds, which is designed or used for the transportation of cargo in fur-
    therance of any commercial enterprise
•   all tow trucks (a tow truck is a motor vehicle including a wrecker equipped with a mechanical device,
    or used in combination with a mechanical device used to tow, winch, or otherwise move another vehi-
    cle), regardless of the gross weight rating of the tow truck
•   any vehicle, including buses, designed to transport more than 15 passengers, including the driver
•   any vehicle used in the transportation of hazardous materials in a quantity requiring placards under
    the regulations issued under the Federal Hazardous Materials Transportation Act (Title 49, United
    States Code, App. §§1801-1813); and
•   a CMV, as defined by 49 C.F.R. §390.5, that is owned or controlled by a person or entity that is domi-
    ciled in or a citizen of a country other than the United States.

For motor carrier registration purposes, a CMV DOES NOT include:

• a farm vehicle, as defined by 43 TAC, Section 18.2, with a gross weight, registered weight, and gross
    weight rating of less than 48,000 pounds
• cotton vehicles registered in accordance with Transportation Code, §502.277
• a vehicle registered with the Texas Railroad Commission pursuant to Texas Natural Resources Code,
    §113.131 and §116.072
• a vehicle transporting liquor under a private carrier permit issued in accordance with the Texas
    Alcoholic Beverage Code, Chapter 42
• a motor vehicle used to transport passengers operated by an entity whose primary function is not the
  transportation of passengers, such as a vehicle operated by a hotel, day-care center, public or pri-
  vate school, nursing home, or similar organization
• a motor vehicle operating exclusively in interstate or international commerce and registered under the
  Single State Registration System
• a vehicle operated by a government entity.

How Do I Register?

• Complete Form 1899, Texas Motor Carrier Application, and return it to TXDOT, Motor Carrier
    Division. Applications may be submitted by mail or facsimile.
• Fax applications to 512/465-3521 (must include credit card or escrow account payment information).
    Please do not mail the original documents if you are filing your application by fax.

387-2                                                             A Texas Motor Carrier ’s Guide to Highway Safety
 • Mail applications to TXDOT-Attn. MCD-BC, PO Box 12984, Austin TX 78711-2984.
 • Motor Carrier registration is available for 7 calendar days, 90 days, 1 year, or 2 years. Motor carriers
   registered under the Single State Registration System may not obtain two year certificates of regis-
   tration, and household goods carriers may not obtain seven day or 90 day certificates of registration.
 • All applications must be accompanied by the appropriate fees and insurance filing. Incomplete appli-
   cations will not be processed and may be returned to the applicant.
 • A motor carrier certificate of registration is nontransferable between carriers.
 • The motor carrier's insurance policy shall be kept in full force and effect as long as the carrier con-
   tinues operations. The carrier's insurance policy shall provide that the insurance company will give
   the department 30 days prior written notice of any policy cancellation or expiration. The department
   will cancel the motor carrier's certificate of registration if the insurance has been canceled or has
   expired. Additionally, your insurer must submit proof of your insurance on a Form E (cancellations
   must be submitted on a Form K).

TXDOT’s website: http://www.dot.state.tx.us/mcd/onestop/motorcarrier1.htm


Proof of Insurance

The motor carrier must have proof of the minimum level of insurance at the company's principal place
of business shown by any of the following:

 • Endorsements for Motor Carriers policies of insurance for public liability under Sections 29 and 30 of
     the Motor Carrier Act of 1980 (Form MCS-90) issued by an insurer.
 •   Endorsements for Motor Carriers of Passengers policies of insurance for public liability under Section
     18 of the Bus Regulatory Reform Act of 1982 (Form MCS-90B) issued by an insurer.
 •   A Motor Carrier Surety Bond for public liability under Section 30 of the Motor Carrier Act of 1980
     (Form MCS-82) issued by a surety.
 •   A Motor Carrier of Passengers Surety Bond for public liability under Section 18 of the Bus Regulatory
     Reform Act of 1982 (Form MCS-82B) issued by an surety.
 •   A written decision, order, or authorization of the Interstate Commerce Commission authorizing the
     motor carrier to self-insure under 49 CFR 1043.5.

The driver of a commercial motor vehicle must have proof of insurance (usually a Cab Card) in the com-
mercial motor vehicle whenever operating the vehicle, and must show it to any law enforcement per-
sonnel who asks to see it.




A Texas Motor Carrier ’s Guide to Highway Safety                                                      387-3
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387-4                         A Texas Motor Carrier ’s Guide to Highway Safety
FMCSA MCS-90

A Texas Motor Carrier ’s Guide to Highway Safety   387-5
387-6   A Texas Motor Carrier ’s Guide to Highway Safety
FMCSA MCS-90B

A Texas Motor Carrier ’s Guide to Highway Safety   387-7
387-8   A Texas Motor Carrier ’s Guide to Highway Safety
Texas Department of Transportation Certificate of Registration




A Texas Motor Carrier ’s Guide to Highway Safety                 387-9
Texas Department of Transportation Cab Card

387-10                                        A Texas Motor Carrier ’s Guide to Highway Safety
TxDOT Form 1899

A Texas Motor Carrier ’s Guide to Highway Safety   387-11
387-12   A Texas Motor Carrier’s Guide to Highway Safety
A Texas Motor Carrier ’s Guide to Highway Safety   387-13
387-14   A Texas Motor Carrier ’s Guide to Highway Safety
A Texas Motor Carrier ’s Guide to Highway Safety   387-15
387-16   A Texas Motor Carrier ’s Guide to Highway Safety
TxDOT A Guide for Operating Commercial Trucks in Texas

A Texas Motor Carrier ’s Guide to Highway Safety         387-17
387-18   A Texas Motor Carrier ’s Guide to Highway Safety

								
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