Untitled Texas Attorney General Opinion

Hon. W. J. Townrend County Attorney Ange lina County Lufkin, Texas Opinion No. O-6402 Rc: IS It a violation of law regu- lating motor carriers for a person to transport own pro- perty in own motor vehicle over public highway without first having obtained a certl- flCAte or permit from the Dear Sir: Rallrosd Comml5slon? We have received your recent request for an opinion and We quote SALme AS fOhWS: “I write you for an opinion from your department covering this situation: “A party of this section of the state is the owner of several trucks and has purchased the output of a small sawmill. He takes ~11 the lumber manufactured by this concern. He procures A bill of ladtng in his own name and loads the lumber on hL trucks and transport5 the same on the state highways. fie has priority rAting5 from the W.P.B. to sell this lumber. He transports this lumber over the state highways with bill of lading in his own name, thereafter he sells the same to sun- dry buyers. He maintains no lumber yard. “IS this a violation of the state law, involving the use made of the stat5 hlghway in the transportation of commodities 7 ” We assume from your question that you have reference to a violatlou of the laws regulating motor carriers. Subsections (g) and (h) of Section 1 of Article 911b, V.A.C.S., gives the following definitions: “(g) The term ‘motor carrier’ means any per- son, firm, corporation, company, co-partnership, ASSO- ,’ . . - - Hou. W. J. Townsend, page 2, Opinion No. O-6402 ciation or joint stock AssOciation, and their lessees, receiver5 or trustees Appointed by any Court what- soever owning, controlling, managing, operating or causing to be operated any motor-propelled vehicle used in transporting property for compensation or hire over any public highway in this Stak, where in the course of such transportation A highway between two or more incorporated cities, towns or villages is traversed; provided, that the term ‘motor carrier’ as used in this Act shall not include, and this Act shall not apply to motor vehicles operated exclu- sively within the incorporated limits of cities or towns .” “(h) The term ‘contract carrier’ means any motor carrier as hereinabove defined transporting property for compensation or hire over any highway in this State other than as A common carrier. As amended Acts 1931, 42nd Leg., p. 480, ch. 277 i 1.” Subsection (1) of Section la of said Article 91 lb, sets out certain exemptions, among others, from the foregoing definitions, AS tOttOWS: “Sec. la (1) Provided, however, that the term ‘Motor Carrier’ and the term ‘Contract Carrier’ AS defined in the preceding section shall not be held to include: “(a) Any person having A regular, separate, fixed, and established place of business, other~than a transportation bucilness, where goods, wares, and merchandise are kept in stock and are primarily and regularly bought from the public or sold to the public or msnufactvred or processed by such person in the ordinary course of the mercantile, manufac- turing, or processing business, and who, merely incidental to the operation of such business, kans- ports over the highways of this Sk% such goods of which such person is the bona fide owner by means of a motor vehicle of which such person is A bona fide owner.” Section lb of said Article 911b, provides, in regard to persons coming within the exemptions set out Ln said subsection (1) of Section la of said Article, as follows: “Sec. lb. Any person who transports goods, Hon. W. J. Townsend, page 3, Opinion No. O-6402 wares, or merchandise under the circumstances set fort in the foregoing Section la so AS to be excluded by the terms of said Section from the definition of ‘motor carrier’ or ‘contract carrier’ shall be deemed to be A private motor vehicle owner; and such use of the highways by such private motor vehicle owners, AS herein defined, shall be construed AS use of the highways for the . general public and not the use of such highways for the carrying on the business of transporting property for compensation or hire. Added Acts 1941, 47th Leg., p. 463, ch. 290, i 1.” Set;-2 of said Art. 911b, provides as follows: “No motor carrier, AS defined in the pre- ceding section, shall operate any motor-propelled vehicle for the purpose of transportation or car- riage of property for compensation or hire over any public highway in the State except in accor- dance with the provisions of this Act; provided, however, that nothing in this Act or any provision thereof shall be construed or held to in any manner affect, Limit or deprive cities and towns from ex- ercising any of the powers granted them by Chap- ter 147, Pages 307 to 318, 1ncIusive of the General LAWS of the State of Texas, passed by the 33rd~ Legislature, or any amendments thereto. As amended Acts 1931, 42nd Leg., p. 480, ch. 2?7, I 2.” Sec. 3 of said Article 91lb, provides AS follows: “No motor carrier shall, after this Act goes into effect, operate as a common carrier without first having obtained from the Commission, under the provisions of this Act, a certificate of public convenience and necessity pursuant to a finding to the effect that the public convenience and necessity require such operation. No motor car- rier shalt. after this Act goes into effect, operate as a contract carrier without first having ob- tained from the Commission a permit so to do, which permit shall not be issued until the appli- cant shall have in all things complied with the requirements of this Act. As amended Acts 1931, 42nd Leg., p. 480, ch. 277 13.” Hon. W. J. Townsend, page 4. Opinion No. O-6402 In the case of New WAY Lumber Co. et al, vs. Smith et al, 96 S. W. (2) 282, involving the Appiicabiiity of Section 1 of said Article 911b to a company carrying their lsmber in trucks to various points in Texas, for which carrying they made A charge for the expense of delivery, which was Above the regular price therefor, the Supreme Court of Texas held AS follows: “Under the fACtS stAted here the cArrying of lumber owned by th5 company in its owu trucks does not exempt 13from the provisions of this law. This is not A case where the trucks are operated exclusively within the incorporated limits of a town or city; nor is it a cAse where the price of goods delivered is the same AS those undelivered. On the contrary, it is clearly a case where the price of the lumber includes a direct charge for the delivery thereof. The carrying charge is based directly on the distance traveled And the weight of the truck. Since the Company receives compensation for the delivery of the lumber, it clearly appears thAt the trucks used come under the definition of a ‘contrrct carrier’, And Are subject to the provision5 of Article 91 lb.” After the rendition of the opinion in the above mentioned case. and because of It, the 47th Legislature of Texas amended said Article 911b by adding said Sections la And lb, supra, to same. Said amendment containing the specific exemptions AS above set out. We believe the solution of your question depends upon two questions of fact, namely: first whether the price of the lumber delivered is the same AS that mvered, And if not, then second: whether the owner of the trucks and lumber in question has a regular, separate, fixed, And established place of business, etc., so AS to bring him within the exemption provided in subsection (A) of (l), Section la, of said Article 9 1 lb. If the first question is determined in the affirmative, then under the holding of the Supreme Court the operator in question would not come within the definition of a “motor carrier” or “con- tract carrier”. This is of course assuming that no charge at all is made for such hauling. If, however, the first question is determined in the negative, And the operator does come within the definition of the terms “motor carrier” or “contract carrier”, According to said Supreme Court Opinion, then it must be determined whether or not such operator comes within the said statutory exemptfon (subsection (a) of subsection (1) of Section la of Art. 911b, V.A.C.S) Hon. W. J. Townsend, page 5, Opinion No. O-6402 As said by the Supreme Court of this State in opinions contained in Vol. 82 S. W. (2) 941, and Vol. 96 S. W. (2) 282, it is A question of fact, to be determined from all the facts and circum- stances, as to whether or not the owners operating the trucks are motor carriers as defined by law, and subject to the provisions of the Article. Not having all the facts of your situation before us, it is impossible to answer your question categorically. Trusting the foregoing will enable you to solve this situation, we are Yours very truly ATTORNEYGENERALOF TEXAS By /s/ Robert L. Lattimore, Jr. Robert L. Lattimore, Jr. Assistant. RLL: rt:ps APPROVED FEB 28, 1945 /s/ G rover Sellers ATTORNEYGENERALOFTEXAS