1.Subject to paragraph 2 of this Article, Member States shall determine the conditions to be met by undertakings and transport managers in order to satisfy the requirement of good repute laid down in Article 3(1)(b).
In determining whether an undertaking has satisfied that requirement, Member States shall consider the conduct of that undertaking, its transport managers, executive directors and any other relevant person as may be determined by the Member State. Any reference in this Article to convictions, penalties or infringements shall include convictions, penalties incurred by or infringements of the undertaking itself, its transport managers, executive directors and any other relevant person as may be determined by the Member State.
The conditions referred to in the first subparagraph shall include at least the following:
that there be no compelling grounds for doubting the good repute of the transport manager or the transport undertaking, such as convictions or penalties for any serious infringement of national rules in force in the fields of:
commercial law;
insolvency law;
pay and employment conditions in the profession;
road traffic;
professional liability;
trafficking in human beings or drugs; and
tax law; and
that the transport manager or the transport undertaking have not in one or more Member States been convicted of a serious criminal offence or incurred a penalty for a serious infringement of Community rules relating in particular to:
the driving time and rest periods of drivers, working time and the installation and use of recording equipment;
the maximum weights and dimensions of commercial vehicles used in international traffic;
the initial qualification and continuous training of drivers;
the roadworthiness of commercial vehicles, including the compulsory technical inspection of motor vehicles;
access to the market in international road haulage or, as appropriate, access to the market in road passenger transport;
safety in the carriage of dangerous goods by road;
the installation and use of speed-limiting devices in certain categories of vehicle;
driving licences;
admission to the occupation;
animal transport;
the posting of workers in road transport;
the law applicable to contractual obligations;
cabotage.
2.For the purposes of point (b) of the third subparagraph of paragraph 1, where the transport manager or the transport undertaking has been convicted of a serious criminal offence or has incurred a penalty for one of the most serious infringements of Union rules as set out in Annex IV, in one or more Member States, the competent authority of the Member State of establishment shall carry out and complete in an appropriate and timely manner an administrative procedure, which shall include, if appropriate, an on-site inspection at the premises of the undertaking concerned.
During the administrative procedure, the transport manager or other legal representatives of the transport undertaking, as the case may be, shall be given the right to present their arguments and explanations.
During the administrative procedure, the competent authority shall assess whether, due to specific circumstances, the loss of good repute would constitute a disproportionate response in the individual case. In that assessment, the competent authority shall take into account the number of serious infringements of national and Union rules as referred to in the third subparagraph of paragraph 1, as well as the number of most serious infringements of Union rules as set out in Annex IV for which the transport manager or the transport undertaking has been convicted or has had penalties imposed. Any such finding shall be duly reasoned and justified.
Where the competent authority finds that the loss of good repute would be disproportionate, it shall decide that the undertaking concerned continues to be of good repute. The reasons for this decision shall be recorded in the national register. The number of such decisions shall be indicated in the report referred to in Article 26(1).
Where the competent authority does not find that the loss of good repute would be disproportionate, the conviction or penalty shall lead to the loss of good repute.
2a.The Commission shall adopt implementing acts laying down a list of categories, types and degrees of seriousness of serious infringements of Union rules referred to in point (b) of the third subparagraph of paragraph 1 which, in addition to those set out in Annex IV, may lead to the loss of good repute. Member States shall take into account information on those infringements, including information received from other Member States, when setting the priorities for checks pursuant to Article 12(1).
To that end, the Commission shall:
lay down the categories and types of infringement which are most frequently encountered;
define the degree of seriousness of infringements according to their potential to create a risk of fatalities or serious injuries and to distort competition in the road transport market, including by undermining the working conditions of transport workers;
provide the frequency of occurrence beyond which repeated infringements shall be regarded as more serious, taking into account the number of vehicles used for the transport activities managed by the transport manager.
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 25(3).
3.The requirement laid down in Article 3(1)(b) shall not be satisfied until a rehabilitation measure or any other measure having an equivalent effect has been taken pursuant to the relevant provisions of national law.