VERNON'S TEXAS CIVIL STATUTES

TITLE 3A. AERONAUTICS


	Art. 46c-6. DEPARTMENT POWERS AND DUTIES.  Subds. 1, 2. 
Repealed by Acts 1995, 74th Leg., ch. 165, Sec. 24(a), eff. Sept. 1, 
1995.
	Subd. 3. Air Carriers.  (a) The department is granted and 
vested with the right, power and authority to promulgate and 
administer economic rules and regulations over air carriers.  The 
department shall promulgate and administer rules providing for the 
safety of air carriers subject to the requirements of this Act.  The 
department shall be vested with broad discretion in promulgating 
such rules and regulations.  Without limiting the right, power and 
authority of the department, to the extent necessary to enable it to 
perform its functions, it shall determine the financial, 
managerial, and equipment fitness and operational capability of 
each air carrier, require filing of such reports and other data of 
air carriers as the department may deem necessary, inspect air 
carrier facilities and equipment, and adopt a program, rules and 
regulations necessary to effectuate its duties hereunder to the 
extent that its rules and regulations do not conflict with federal 
rules and legislation concerning functions within the jurisdiction 
of federal agencies.
	(b)  No air carrier shall operate as such, after this Act 
goes into effect, without having first obtained from the department 
a certificate of public convenience and necessity or a certificate 
of operating authority;  provided, however, that all operating 
rights and privileges granted to any air carrier by the department 
prior to the passage of this Act shall continue in effect, 
authorizing the same service under the same terms and conditions as 
previously granted by the department.  Upon notice and hearing, 
certificates shall be subject to revocation or suspension for 
violation of the department's regulations, the provisions of this 
Act or the regulations or laws of the United States or any 
authorized agency or board thereof.  Proceedings for the refusal, 
suspension, or revocation of a certificate are governed by the 
Administrative Procedure and Texas Register Act, as amended 
(Article 6252-13a, Vernon's Texas Civil Statutes).  Any such 
certificates so revoked or suspended may be reinstated upon order 
of the department on its own motion or upon application of the air 
carrier, when the department finds reinstatement to be in the 
public interest.  Prior to issuing or amending a certificate of 
public convenience and necessity or a certificate of operating 
authority, the department shall consider the encouragement and 
development of an intrastate air transportation system properly 
adapted to the present and future needs of the State of Texas, and 
in addition shall consider the financial responsibility of the air 
carrier, its proposed points of service or routes and rates or 
charges, the effect, if any, upon existing air carriers and CAB 
certificated carriers, and any other factors similarly related to 
the interest and safety of the public.  Nothing in this Act affects 
any litigation pending on the effective date of this Act.
	(b-1)  The department by rule may establish reasonable 
classifications of air carriers.  In the interest of limiting the 
scope of regulation, the department by rule may exempt any class of 
air carriers from any or all of the requirements of this Act or from 
any or all rules promulgated pursuant to this Act if the exemption 
is just and reasonable and is in the public interest.
	(c)  No application for a certificate shall be received and 
filed by the department unless the same shall be in writing under 
oath in original and six copies filed with the Executive Director of 
the department and contain the following information:
	(1)  The name and address of the applicant and the names and 
addresses of its officers, if any, and full information concerning 
the financial condition and physical properties of the applicant.
	(2)  The complete route or routes over which the applicant 
desires to operate or intended points of service, together with the 
description of each aircraft which the applicant intends to use.
	(3)  A proposed schedule of service and schedule of rates to 
be charged between the several points or localities to be served.
	(4)  It shall be accompanied by plats or maps showing the 
route or routes over which the applicant desires to operate, on 
which plats or maps shall be delineated the line or lines of any 
existing air carrier or airlines, whether or not subject to this 
Act, serving such territory, and shall point out the need for 
additional air service.
	(5)  Such other information, exhibits and other data in 
regard to the application as may be required by duly promulgated 
rules and regulations of the department.
	(6)  Every application filed with the department for a 
certificate shall be accompanied by a filing fee in an amount 
determined by the department, but not less than $200, which fee 
shall be in addition to any other fees and taxes and shall be 
retained by the department, whether the application is approved or 
not, to defray operating expenses.
	Copies of such application shall be transmitted 
contemporaneously by certified mail, return receipt requested, to 
the Civil Aeronautics Board, the Federal Aviation Administration 
and to any air carrier or CAB certificated carrier, which serves, or 
is authorized to serve, over the routes or to the service points 
proposed to be served by the applicant.  Upon receipt of such 
application in proper form, the department shall set a date for 
public hearing which may be conducted by the commission, or at its 
discretion, by the Executive Director, or any staff member of the 
department.
	Any other provision of this Act notwithstanding, carriers 
certificated by the Civil Aeronautics Board pursuant to the Federal 
Aviation Act of 1958, as now or hereafter amended, together with any 
other interested party shall be afforded the right to appear and 
present evidence and arguments at such hearing on all issues 
involved in any such hearing.  The final determination of such 
application shall be made by the department by written order 
setting forth its findings and served upon the parties in such 
manner as the department shall specify, and such application may be 
granted or denied, in whole, or in part.  The order of the 
department granting any application and the certificate issued 
thereunder shall be voidable upon appeal unless the department 
shall set forth in its order full and complete findings of fact 
pointing out in detail the basis on which it made each of its 
findings on the factors related to the interest and safety of the 
public as provided in Subsection (b) of this Subdivision.
	(d)  Any certificate held, owned or obtained by any air 
carrier operating under the provisions of this Act may be sold, 
assigned, leased, transferred or inherited;  provided, however, 
that any proposed sale, lease, assignment or transfer shall be 
first presented in writing to the department for its approval or 
disapproval and after public notice and public hearing the 
department may disapprove such proposed sale, assignment, lease or 
transfer if it is found and determined by the department that such 
proposed sale, assignment, lease or transfer is not in good faith or 
that the proposed purchaser, assignee, lessee or transferee is not 
in good faith or that the proposed purchaser, assignee, lessee or 
transferee is not able or capable of continuing the operation of the 
equipment proposed to be sold, assigned, leased or transferred in 
such manner as to render the services required by the certificate 
held, or that the proposed sale, assignment, lease or transfer is 
not in the best public interest.  The department in approving or 
disapproving any sale, assignment, lease or transfer of any 
certificate may take into consideration all the requirements and 
qualifications of a regular applicant required in this Act and 
apply the same as necessary qualifications of any proposed 
purchaser, assignee, lessee or transferee.  Every application filed 
with the department for an order approving the lease, sale or 
transfer of any certificate of convenience and necessity shall be 
accompanied by a filing fee in an amount equal to one-half of the 
application fee required for a certificate, which fee shall be in 
addition to any other fees and taxes and shall be retained by the 
department whether the lease, sale or transfer of the certificate 
is approved or not.
	(e)  In an appeal of a department action other than 
revocation or suspension of a certificate, the department action 
shall be sustained unless there is no substantial evidence to 
support it.  An appeal of the revocation or suspension of a 
certificate shall be tried in the same manner as appeals from 
justice court to the county court.  Appeals from any final judgment 
of the District Court may be taken by any party to the cause in the 
manner provided for in civil actions generally, but no appeal bond 
shall be required of the department.
	(f)  Repealed by Acts 1995, 74th Leg., ch. 165, Sec. 24(a), 
eff. Sept. 1, 1995.
	(g)  No carrier may limit its liability for loss of or damage 
to freight or baggage unless the carrier files a limiting tariff 
with the department before the claimed loss or damage.  The 
department shall establish specific liability limits under its 
rule-making authority.
	Subds. 4 to 10. Repealed by Acts 1995, 74th Leg., ch. 165, 
Sec. 24(a), eff. Sept. 1, 1995.

Amended by Acts 1969, 61st Leg., p. 1394, ch. 424, Sec. 1, eff. 
Sept. 1, 1969.  Subd. 3 amended by Acts 1973, 63rd Leg., p. 745, ch. 
324, Sec. 1, eff. Aug. 27, 1973;  Subd. 3(b-1) added by Acts 1977, 
65th Leg., p. 380, ch. 189, Sec. 1, eff. May 20, 1977;  Subd. 3(g) 
added by Acts 1977, 65th Leg., p. 54, ch. 30, Sec. 1, eff. March 29, 
1977;  Subd. 6(b) amended by Acts 1977, 65th Leg., p. 308, ch. 142, 
Sec. 1, eff. May 13, 1977;  Subd. 10 amended by Acts 1979, 66th Leg., 
p. 31, ch. 22, Sec. 1, eff. Aug. 27, 1979;  Subds. 1 and 2 amended by 
Acts 1981, 67th Leg., p. 2861, ch. 767, Sec. 3, eff. Sept., 1981;  
Subd. 3(a), (b), (c), (d) amended by Acts 1981, 67th Leg., p. 2863, 
ch. 767, Sec. 4, eff. Sept. 1, 1981;  Subd. 6(b) amended by Acts 
1981, 67th Leg., p. 2865, ch. 767, Sec. 5, eff. Sept. 1, 1981;  
Subds. 7, 8, 10 amended by Acts 1981, 67th Leg., p. 2861, ch. 767, 
Sec. 3, eff. Sept. 1, 1981;  Subd. 8 amended by Acts 1985, 69th Leg., 
ch. 239, Sec. 1, eff. Sept. 1, 1985;  amended by Acts 1987, 70th 
Leg., ch. 33, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st 
Leg., 1st C.S., ch. 39, Sec. 2, eff. Oct. 18, 1989;  Subd. 3(c) 
amended by Acts 1991, 72nd Leg., 1st C.S., ch. 7, Sec. 1.12, eff. 
Sept. 1, 1991;  Subd. 7 amended by Acts 1991, 72nd Leg., 1st C.S., 
ch. 7, Sec. 1.13, eff. Sept. 1, 1991;  Subd. 8(c) amended by Acts 
1991, 72nd Leg., 1st C.S., ch. 7, Sec. 1.14, eff. Sept. 1, 1991;  
Subd. 10 amended by Acts 1991, 72nd Leg., 1st C.S., ch. 7, Sec. 
1.13, eff. Sept. 1, 1991;  Subds. 1, 2 repealed by Acts 1995, 74th 
Leg., ch. 165, Sec. 24(a), eff. Sept. 1, 1995;  Subd. 3(b), (e) 
amended by Acts 1995, 74th Leg., ch. 165, Sec. 20, eff. Sept. 1, 
1995;  Subd. 3(f) and Subds. 4 to 10 repealed by Acts 1995, 74th 
Leg., ch. 165, Sec. 24(a), eff. Sept. 1, 1995;  Subd. 10(d) amended 
by Acts 1995, 74th Leg., ch. 636, Sec. 1, eff. Aug. 28, 1995.