(a) The following words and terms, when used in this section, shall have the following meanings, unless the context shall clearly indicate otherwise:
  (1) Authorized organization--An entity that has entered into a Memorandum of Understanding with the department to administer the knowledge test, skills test, or both for a commercial driver license on the department's behalf. This is equivalent to a third party tester in accordance with 49 CFR 383.5.
  (2) Examiner--An individual certified by the department to conduct a knowledge test, skills test, or both. This is equivalent to a third party examiner in accordance with 49 CFR 383.5.
  (3) Knowledge test--Includes any written test required for a commercial driver license, including the addition or removal of an endorsement or restriction, excluding the Hazmat test.
(b) An organization is eligible to enter into a Memorandum of Understanding with the department and to administer a knowledge test, skills test, or both for a commercial driver license if it:
  (1) Complies with 49 CFR 383.75; and
  (2) Has been in business or operation in the State of Texas for at least 365 days prior to the execution of the Memorandum of Understanding; and
  (3) Maintains at least one permanently occupied structure with a permanent Texas street mailing address.
(c) An individual employed by an authorized organization is eligible to become an examiner and conduct commercial driver license knowledge test, skills tests, or both if he or she makes application with the department and:
  (1) Complies with 49 CFR 384.228; and
  (2) For skills testing, holds the equivalent class of Texas commercial driver license with endorsements to administer like skills tests; and
  (3) Is domiciled in the State of Texas.
(d) The department may suspend for up to one year or revoke permanently, an organization's or examiner's authorization to conduct commercial knowledge testing or skills testing for failure to comply with any part of:
  (1) The Memorandum of Understanding; or
  (2) 49 CFR 383.75; or
  (3) 49 CFR 384.228.
(e) Unless an authorized organization is a governmental agency, the authorized agency must secure and maintain a continuous security bond in the principal sum of $25,000 per examiner, underwritten by a company authorized to do business in the State of Texas, which represents a sufficient amount to pay for re-testing drivers in the event that the organization or one or more of its examiners are involved in fraudulent activities related to the knowledge testing or skills testing conducted by its employees or members. However, the aggregate liability of the surety for all breaches of the condition of the bond in no event shall exceed the principal sum of $25,000 per examiner. The surety on any bond may cancel the bond on giving 30 days' notice in writing to the State of Texas and shall be relieved of liability for any breach of any conditions of the bond that occurs after the effective date of cancellation.

Source Note: The provisions of this §16.31 adopted to be effective March 15, 2017, 42 TexReg 1151; amended to be effective September 18, 2022, 47 TexReg 5498