By:  Bivins                                            S.B. No. 457
       73R4026 DRH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of motor carriers.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 1(e), Chapter 314, Acts of the 41st
    1-5  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
    1-6  Civil Statutes), is amended to read as follows:
    1-7              (e)  The term "certificate" means a certificate to
    1-8  operate as a common carrier <certificate of public convenience and
    1-9  necessity issued> under this Act.
   1-10        SECTION 2.  Section 1(g), Chapter 314, Acts of the 41st
   1-11  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   1-12  Civil Statutes), is amended to read as follows:
   1-13              (g)  The term "motor carrier" means any person, firm,
   1-14  corporation, company, copartnership, association or joint stock
   1-15  association, and their lessees, receivers, or trustees appointed by
   1-16  any court whatsoever owning, controlling, managing, operating, or
   1-17  causing to be operated any motor-propelled vehicle used in
   1-18  transporting property for compensation or hire over any public
   1-19  highway in this state, where in the course of such transportation a
   1-20  highway between two or more incorporated cities, towns or villages
   1-21  is traversed.
   1-22              Provided, that the term "motor carrier" as used in this
   1-23  Act shall not include, and this Act shall not apply to motor
   1-24  vehicles engaged in the transportation of property for compensation
    2-1  or hire between points:
    2-2                    (1)  Wholly within any one incorporated city,
    2-3  town or village;
    2-4                    (2)  Wholly within an incorporated city, town or
    2-5  village and all areas, incorporated or unincorporated, wholly
    2-6  surrounded by such city, town or village;
    2-7                    (3)  So situated that the transportation is
    2-8  performed wholly within an incorporated and immediately adjacent
    2-9  unincorporated area without operating within or through the
   2-10  corporate limits of more than a single incorporated city, town or
   2-11  village, except to the extent provided in (2) above; or
   2-12                    (4)  Wholly within the limits of a base
   2-13  incorporated municipality and any number of incorporated cities,
   2-14  towns and villages which are immediately contiguous to said base
   2-15  municipality.
   2-16              Provided further, that motor carriers authorized to
   2-17  serve any incorporated city, town or village within the areas
   2-18  described in (2), (3), and (4) above<, except carriers of
   2-19  commodities in bulk in tank trucks and all specialized motor
   2-20  carriers,> may perform service for compensation or hire between all
   2-21  points within the areas described in (2), (3), and (4) above, on
   2-22  the one hand, and, on the other, authorized points beyond such
   2-23  areas without a certificate or permit authorizing service at all
   2-24  points within such areas when such transportation is incident to,
   2-25  or a part of, otherwise regulated transportation performed under a
   2-26  through bill of lading.
   2-27              Provided further, that after notice and public hearing
    3-1  the Railroad Commission of Texas shall <is hereby authorized,
    3-2  except as to operations of carriers of commodities in bulk in tank
    3-3  vehicles and all specialized motor carriers, from time to time and
    3-4  where necessary, to> define and prescribe<, and where necessary
    3-5  shall prescribe,> commercial zones adjacent to and commercially a
    3-6  part of any specified incorporated municipality with a population
    3-7  of 25,000 or more according to the most recent federal census and
    3-8  within which operations as a motor carrier may be performed without
    3-9  a certificate or permit authorizing same and within which strictly
   3-10  local service wholly within such commercial zone may be performed
   3-11  at rates and charges other than those prescribed by the Commission.
   3-12  A commercial zone shall consist of one or more whole counties.  The
   3-13  Commission shall, not later than January 1, 1994, publish detailed
   3-14  maps of each commercial zone.  <The Commission in so determining
   3-15  and prescribing the limits of any commercial zone shall take into
   3-16  consideration its powers and duties otherwise to administer and
   3-17  enforce the Motor Carrier Act considered in the light of the
   3-18  economic facts and conditions involved in each commercial zone or
   3-19  proposed commercial zone, particularly the effect that unregulated
   3-20  transportation for compensation or hire within such zone or
   3-21  proposed zone has had or may have upon fully regulated motor
   3-22  carriers operating in regulated intrastate commerce to, from and
   3-23  within such commercial zone.>  The Railroad Commission is empowered
   3-24  to prescribe such rules and regulations for operation of such
   3-25  transportation in accordance with this Act <as the Commission deems
   3-26  in the public interest>.
   3-27        SECTION 3.  Section 1, Chapter 314, Acts of the 41st
    4-1  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
    4-2  Civil Statutes), is amended by adding Subsection (k) to read as
    4-3  follows:
    4-4              (k)  The term "common carrier" means a person or motor
    4-5  carrier that transports property for compensation or hire by motor
    4-6  vehicle for the general public.
    4-7        SECTION 4.  Chapter 314, Acts of the 41st Legislature,
    4-8  Regular Session, 1929 (Article 911b, Vernon's Texas Civil
    4-9  Statutes), is amended by adding Section 1e to read as follows:
   4-10        Sec. 1e.  Notwithstanding any other provision of law, a
   4-11  reference in law to a:
   4-12              (1)  "certificate of public convenience and necessity"
   4-13  issued under this Act means a "certificate" issued under this Act;
   4-14  and
   4-15              (2)  "specialized motor carrier" regulated under this
   4-16  Act means, beginning September 1, 1994, a "motor carrier" as
   4-17  defined by this Act.
   4-18        SECTION 5.  Section 1 1/4, Chapter 314, Acts of the 41st
   4-19  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   4-20  Civil Statutes), is amended to read as follows:
   4-21        Sec. 1 1/4.  The phrase "transporting property for
   4-22  compensation or hire" does <term "Specialized Motor Carrier" and
   4-23  "Specialized Equipment" shall> not include the services of wrecker
   4-24  type vehicles used incidental to or as an adjunct to the carrying
   4-25  on of the primary business of buying, selling, exchanging,
   4-26  repairing, storing, servicing or wrecking motor vehicles.
   4-27        SECTION 6.  Section 3, Chapter 314, Acts of the 41st
    5-1  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
    5-2  Civil Statutes), is amended to read as follows:
    5-3        Sec. 3.  A motor carrier may not operate as a common carrier
    5-4  without a certificate issued by the Commission under this Act.  The
    5-5  Commission may not issue a certificate to operate as a common
    5-6  carrier unless an applicant has complied with this Act.  <No motor
    5-7  carrier shall, after this Act goes into effect, operate as a common
    5-8  carrier without first having obtained from the Commission, under
    5-9  the provisions of this Act, a certificate of public convenience and
   5-10  necessity pursuant to a finding to the effect that the public
   5-11  convenience and necessity require such operation.>  No motor
   5-12  carrier shall, after this Act goes into effect, operate as a
   5-13  contract carrier without first having obtained from the Commission
   5-14  a permit so to do, which permit shall not be issued until the
   5-15  applicant shall have in all things complied with the requirements
   5-16  of this Act.
   5-17        SECTION 7.  Effective September 1, 1994, Section 4(a)(1),
   5-18  Chapter 314, Acts of the 41st Legislature, Regular Session, 1929
   5-19  (Article 911b, Vernon's Texas Civil Statutes), is amended to read
   5-20  as follows:
   5-21              (1)  The Commission is hereby vested with power and
   5-22  authority and it is hereby made its duty to supervise and regulate
   5-23  the transportation of property for compensation or hire by motor
   5-24  vehicle on any public highway in this State, to fix, prescribe or
   5-25  approve the maximum or minimum or maximum and minimum rates, fares
   5-26  and charges of each motor carrier in accordance with the specific
   5-27  provisions herein contained, to prescribe all rules and regulations
    6-1  necessary for the government of motor carriers, to prescribe rules
    6-2  and regulations for the safety of operations of each of such motor
    6-3  carriers, to require the filing of such monthly, annual or other
    6-4  reports and other data of motor carriers as the Commission may deem
    6-5  necessary, <to prescribe the schedules and services of motor
    6-6  carriers operating as common carriers,> and to supervise and
    6-7  regulate motor carriers in all matters affecting the relationship
    6-8  between such carriers and the shipping public in a manner
    6-9  consistent with this Act <whether herein specifically mentioned or
   6-10  not>.  To ensure nondiscriminatory rates, charges, and
   6-11  classifications for all shippers and users of regulated
   6-12  transportation services for which the Commission prescribes rates,
   6-13  charges, and classifications, the Commission shall establish
   6-14  collective ratemaking procedures for all commodities and services
   6-15  for which it prescribes rates, charges, and classifications.  Those
   6-16  procedures must assure that respective revenues and costs of
   6-17  carriers engaged in the transportation of the particular commodity
   6-18  or service for which rates are prescribed are ascertained.  Failure
   6-19  on the part of any carrier to comply with this subsection or the
   6-20  rules and regulations adopted under it may result in suspension or
   6-21  cancellation of the carrier's operating authority by the
   6-22  Commission.
   6-23        SECTION 8.  Effective January 1, 1995, Section 4(a)(1),
   6-24  Chapter 314, Acts of the 41st Legislature, Regular Session, 1929
   6-25  (Article 911b, Vernon's Texas Civil Statutes), is amended to read
   6-26  as follows:
   6-27              (1)  The Commission is hereby vested with power and
    7-1  authority and it is hereby made its duty to supervise and regulate
    7-2  the transportation of property for compensation or hire by motor
    7-3  vehicle on any public highway in this State, to fix, prescribe or
    7-4  approve the maximum <or minimum or maximum and minimum> rates,
    7-5  fares and charges of each motor carrier in accordance with the
    7-6  specific provisions herein contained, to prescribe all rules and
    7-7  regulations necessary for the government of motor carriers, to
    7-8  prescribe rules and regulations for the safety of operations of
    7-9  each of such motor carriers, to require the filing of such monthly,
   7-10  annual or other reports and other data of motor carriers as the
   7-11  Commission may deem necessary, <to prescribe the schedules and
   7-12  services of motor carriers operating as common carriers,> and to
   7-13  supervise and regulate motor carriers in all matters affecting the
   7-14  relationship between such carriers and the shipping public in a
   7-15  manner consistent with this Act <whether herein specifically
   7-16  mentioned or not>.  The Commission shall set the maximum rates at a
   7-17  level comparable to the rates charged by interstate motor carriers
   7-18  providing the same type of service.  A common carrier may present
   7-19  evidence of interstate services and rates when the commission is
   7-20  determining a maximum rate under this section.  The  <To ensure
   7-21  nondiscriminatory rates, charges, and classifications for all
   7-22  shippers and users of regulated transportation services for which
   7-23  the Commission prescribes rates, charges, and classifications, the>
   7-24  Commission shall establish collective ratemaking procedures for all
   7-25  commodities and services for which it prescribes rates, charges,
   7-26  and classifications.  <Those procedures must assure that respective
   7-27  revenues and costs of carriers engaged in the transportation of the
    8-1  particular commodity or service for which rates are prescribed are
    8-2  ascertained.>  Failure on the part of any carrier to comply with
    8-3  this subsection or the rules and regulations adopted under it may
    8-4  result in suspension or cancellation of the carrier's operating
    8-5  authority by the Commission.
    8-6        SECTION 9.  Section 4(a)(11), Chapter 314, Acts of the 41st
    8-7  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
    8-8  Civil Statutes), is amended to read as follows:
    8-9              (11)  The Commission shall hold an annual state of the
   8-10  transportation industry conference <commencing in 1988> at which
   8-11  the Commission shall consider and determine the current state of
   8-12  regulation of the transportation industry, including but not
   8-13  limited to whether existing rules, regulations, and rates are
   8-14  promoting a safe, stable, responsive, and adequate transportation
   8-15  system available to the public as a whole and are promoting and
   8-16  encouraging the continuing economic development of business and
   8-17  commerce in this state and are otherwise reasonably accomplishing
   8-18  the objectives of this Act.  At the conference, the Commission
   8-19  shall report on the availability of transportation services in
   8-20  small communities for shipment of general commodities weighing
   8-21  greater than 500 pounds and less than 10,000 pounds.  If the
   8-22  Commission determines that the number of carriers available to
   8-23  small communities for this type of transportation service is
   8-24  inadequate, the Commission by rule may impose obligations on common
   8-25  carriers to provide service to such a community on a regular route
   8-26  and schedule.  The Commission's findings shall be duly reported in
   8-27  the form of a written annual report delivered to the governor and
    9-1  the legislature and made available to the public.
    9-2        SECTION 10.  Section 4(a)(13), Chapter 314, Acts of the 41st
    9-3  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
    9-4  Civil Statutes), is amended to read as follows:
    9-5              (13)  All commercial motor vehicles as defined in
    9-6  Subdivision (3), Section 1, Chapter 42, Acts of the 41st
    9-7  Legislature, 2nd Called Session, 1929 (Article 6701d-11, Vernon's
    9-8  Texas Civil Statutes), or as otherwise defined by the Railroad
    9-9  Commission of Texas, transporting property over the highways of
   9-10  this state other than pursuant to intrastate certificates or
   9-11  permits <of public convenience and necessity> granted by the
   9-12  Railroad Commission of Texas under the provisions of this Act or
   9-13  for-hire carriers operating in interstate commerce shall be
   9-14  required to be registered annually with the Commission by the owner
   9-15  and/or operator thereof.  Such registration shall be accompanied by
   9-16  a registration fee of $10 per vehicle.  The Commission shall issue
   9-17  for each such vehicle registered under this subdivision a numbered
   9-18  certificate bearing the name and address of the vehicle owner which
   9-19  shall be carried in the vehicle at all times.  Such registration
   9-20  fee shall be payable to the State Treasury and credited to the
   9-21  "Motor Carrier Act enforcement fund" for use by the Commission in
   9-22  administering this Act.  No such motor vehicle shall be operated
   9-23  over the highways of this state unless the same shall have been
   9-24  registered in accordance with the provisions of this subdivision.
   9-25  In the event the owner or operator of any such vehicle may be found
   9-26  to be transporting property for hire over the highways of this
   9-27  state in violation of the provisions of this Act or the rules and
   10-1  regulations of the Commission, the Commission may, after notice and
   10-2  hearing in accordance with the provisions of the Administrative
   10-3  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
   10-4  Civil Statutes) impose an administrative penalty on such owner or
   10-5  operator, or both, and on the involved shipper or receiver, or
   10-6  both, not to exceed $10,000 and such owner, operator, shipper, or
   10-7  receiver shall also be subject to the penalties and other relief
   10-8  provided under Section 16 of this Act.  In the event of such
   10-9  unlawful operation or other violation of the rules of the
  10-10  Commission, the Commission may also revoke or suspend the
  10-11  registration certificate for such vehicle issued under this
  10-12  subsection.
  10-13        SECTION 11.  Section 4(a)(14), Chapter 314, Acts of the 41st
  10-14  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  10-15  Civil Statutes), is amended to read as follows:
  10-16              (14)  Notwithstanding any other provision of law or
  10-17  regulation, the Department of Public Safety shall as soon as
  10-18  practicable after the effective date of this Act establish
  10-19  procedures under which all violations of the traffic laws of this
  10-20  state for which citations are issued by the department to vehicles
  10-21  registered with the Railroad Commission of Texas under certificates
  10-22  or permits <of public convenience and necessity> or under vehicle
  10-23  registration certificates issued under Subdivision (13) of this
  10-24  subsection shall be recorded not only in the name of the driver of
  10-25  the vehicle involved but also in the name of the person, company,
  10-26  or other entity owning the vehicle and, if different from the
  10-27  owner, the person, company, or other entity causing the vehicle to
   11-1  be operated over Texas highways.  The Department of Public Safety
   11-2  shall report all such citations to the Railroad Commission of Texas
   11-3  no less frequently than on a monthly basis.  The Commission shall,
   11-4  not later than January 1, 1994, establish and enforce standards for
   11-5  the suspension or revocation of certificates, permits, and vehicle
   11-6  registration certificates as a result of unsafe operations based on
   11-7  reported citations.
   11-8        SECTION 12.  Section 4, Chapter 314, Acts of the 41st
   11-9  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  11-10  Civil Statutes), is amended by adding Subsection (b) to read as
  11-11  follows:
  11-12        (b)(1)  In this subsection:
  11-13                    (A)  "Baseline rate" means the rates, fares, or
  11-14  charges in effect on September 1, 1993, or subsequently adopted by
  11-15  the Commission by rule.
  11-16                    (B)  "Rate zone" means a range of rates that are
  11-17  not more than 20 percent more than the baseline rate or less than
  11-18  50 percent less than the baseline rate.
  11-19              (2)  Until January 1, 1995, a carrier, including a
  11-20  common carrier, may charge the applicable baseline rate.  A
  11-21  carrier, including a common carrier, may charge another rate within
  11-22  the rate zone if the carrier files with the Commission, in a manner
  11-23  determined by the Commission, notice that it intends to charge a
  11-24  rate in the rate zone other than the baseline rate.  The carrier
  11-25  may, subject to the notice requirement, change its rates within the
  11-26  rate zone as often as it desires.
  11-27              (3)  If the Commission determines that the rate change
   12-1  a carrier seeks under Subdivision (2) of this subsection is within
   12-2  the rate zone, the proposed rate shall go into effect according to
   12-3  its terms and the Commission may not suspend, revise, or revoke the
   12-4  proposed rate.  If the Commission determines that the proposed rate
   12-5  is outside the rate zone, or a carrier proposes a rate outside the
   12-6  rate zone, the Commission shall handle the request in the manner
   12-7  provided elsewhere in this Act and under the rules of the
   12-8  Commission.
   12-9              (4)  On January 1, 1995, each maximum rate is set at
  12-10  120 percent of the applicable baseline rate in effect on December
  12-11  31, 1994, and the other provisions of this subsection expire.
  12-12        SECTION 13.  Section 4(c), Chapter 314, Acts of the 41st
  12-13  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  12-14  Civil Statutes), is amended to read as follows:
  12-15        (c)  The Commission is further authorized and empowered, and
  12-16  it shall be its duty, to supervise and regulate motor carriers in
  12-17  all matters affecting the relationship between such motor carriers
  12-18  and the shipping public that may be necessary in the interest of
  12-19  the public and in a manner consistent with this Act.
  12-20        SECTION 14.  Section 4(e), Chapter 314, Acts of the 41st
  12-21  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  12-22  Civil Statutes), is amended to read as follows:
  12-23        (e)  Before granting an application for a certificate, the
  12-24  Commission shall require that the applicant and any party opposing
  12-25  the application make the showings required by this subsection and
  12-26  elsewhere in law.  The applicant is required to make a prima facie
  12-27  case that it can provide the service proposed in conformity with
   13-1  this Act.  If the applicant makes a prima facie case, the
   13-2  Commission shall grant the application unless an opposing party
   13-3  shows that the applicant is not able to provide the service
   13-4  proposed in conformity with this Act.  In making a determination on
   13-5  granting the application, the Commission may not consider evidence
   13-6  presented by an opposing party that:
   13-7              (1)  does not show that the applicant is unable to
   13-8  provide the service proposed in conformity with this Act;
   13-9              (2)  shows that an opposing party or another carrier
  13-10  already adequately provides or could adequately provide the
  13-11  proposed service; or
  13-12              (3)  shows that a complaint has been or will be filed
  13-13  against the applicant for a violation of this Act, unless the
  13-14  complaint is in regard to a safety violation.  <In enforcing motor
  13-15  carrier entry requirements, the Commission shall require that the
  13-16  applicant and the protestant make the showings otherwise required
  13-17  by law and the showings required by this subsection.  In
  13-18  determining the issues of public convenience and necessity, the
  13-19  Commission shall give no consideration to any protestant who does
  13-20  not show it possesses authority to handle, in whole or in part, the
  13-21  traffic for which authority is sought, it is willing and able to
  13-22  provide service that meets the reasonable needs of the shippers
  13-23  involved, and it has either performed service within the
  13-24  geographical scope of the application during the preceding 24-month
  13-25  period or has, actively and in good faith, solicited service within
  13-26  the geographical scope of the application during such period.
  13-27  Also, in determining the issues of public convenience and
   14-1  necessity, the Commission shall give no consideration to services
   14-2  and facilities of motor carriers not parties to the proceeding.
   14-3  With respect to showing public convenience and necessity, the
   14-4  applicant is required to prove a prima facie case that the public
   14-5  convenience would be promoted and a prima facie case that a public
   14-6  necessity exists, and in these circumstances, the burden of proof
   14-7  to show that the public convenience would not be promoted or that a
   14-8  public necessity does not exist for the proposed service or that
   14-9  the existing carriers are rendering a reasonably adequate service
  14-10  shifts from the applicant to the opposing carrier or carriers.>
  14-11        SECTION 15.  Section 4, Chapter 314, Acts of the 41st
  14-12  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  14-13  Civil Statutes), is amended by adding Subsection (f) to read as
  14-14  follows:
  14-15        (f)  In reviewing an application for a certificate to
  14-16  transport general commodities weighing more than 500 pounds but
  14-17  less than 10,000 pounds, the Commission shall determine whether a
  14-18  municipality an applicant proposes to serve is currently being
  14-19  served by less than five common carriers holding certificates under
  14-20  this Act.  If the Commission determines that a municipality is
  14-21  being served by less than five common carriers holding certificates
  14-22  under this Act, the Commission shall find that the public
  14-23  convenience and necessity require granting the application to the
  14-24  extent necessary to serve that municipality, unless a party
  14-25  opposing the application shows that the applicant is not able to
  14-26  provide the service proposed in conformity with this Act.  Evidence
  14-27  that other carriers are rendering reasonably adequate service to
   15-1  the municipality may not be used to show that the applicant is not
   15-2  able to provide the service proposed in conformity with this Act.
   15-3  This subsection expires September 1, 1995.
   15-4        SECTION 16.  Section 5, Chapter 314, Acts of the 41st
   15-5  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   15-6  Civil Statutes), is amended to read as follows:
   15-7        Sec. 5.  (a)  No motor carrier shall hereafter operate as a
   15-8  common carrier for the transportation of property for compensation
   15-9  or hire over the public highways of this State without first having
  15-10  obtained from the Commission, under the provisions of this Act, a
  15-11  certificate <declaring that the public convenience and necessity
  15-12  requires such operation; provided, however, the Commission shall,
  15-13  without application or hearing when this Act goes into effect,
  15-14  issue all motor carriers then operating lawfully under permanent
  15-15  certificates of public convenience and necessity heretofore issued
  15-16  to them, certificates in lieu of the certificates issued under the
  15-17  terms of the former law covering the same routes that said common
  15-18  carrier shall have been operating over, and no more>.
  15-19        (b)  Any certificate held, owned or obtained by any motor
  15-20  carrier operating as a common carrier under the provisions of this
  15-21  Act may be sold, assigned, leased, transferred or inherited;
  15-22  provided, however, that any proposed sale, lease, assignment or
  15-23  transfer shall be first presented in writing to the Commission for
  15-24  its approval or disapproval, and the Commission may disapprove such
  15-25  proposed sale, assignment, lease or transfer if it be found and
  15-26  determined by the Commission that such proposed sale, assignment,
  15-27  lease or transfer is not in good faith or that the proposed
   16-1  purchaser, assignee, lessee or transferee is not able or capable of
   16-2  continuing the operation of the equipment proposed to be sold,
   16-3  assigned, leased or transferred <in such manner as to render the
   16-4  services demanded by the public necessity and convenience> on and
   16-5  along the designated route, or that said proposed sale, assignment,
   16-6  lease or transfer is not best for the public interest; the
   16-7  Commission, in approving or disapproving any sale, assignment,
   16-8  lease or transfer of any certificate, may take into consideration
   16-9  all of the requirements and qualifications of a regular applicant
  16-10  required in this Act and apply same as necessary qualifications of
  16-11  any proposed purchaser, assignee, lessee or transferee; provided,
  16-12  however, that in case a certificate is transferred that the
  16-13  transferee shall pay to the Commission a sum of money equal to ten
  16-14  per cent (10%) of the amount paid as a consideration for the
  16-15  transfer of the certificate, which sum of ten per cent (10%) shall
  16-16  be deposited in the State Treasury to the credit of the Highway
  16-17  Fund of the State; provided further, that any certificate obtained
  16-18  by any motor carrier or by any assignee or transferee shall be
  16-19  taken and held subject to the right of the State at any time to
  16-20  limit, restrict or forbid the use of the streets and highways of
  16-21  this State to any holder or owner of such certificate.  Every
  16-22  application filed with the Commission for an order approving the
  16-23  lease, sale or transfer of any certificate of convenience and
  16-24  necessity shall be accompanied by a filing fee in the sum of
  16-25  Twenty-five Dollars ($25.00), which fee shall be in addition to the
  16-26  other fees and taxes and shall be retained by the Commission
  16-27  whether the lease, sale or transfer of the certificate <of
   17-1  convenience and necessity> is approved or not.
   17-2        SECTION 17.  Sections 5b(a) and (b), Chapter 314, Acts of the
   17-3  41st Legislature, Regular Session, 1929 (Article 911b, Vernon's
   17-4  Texas Civil Statutes), are amended to read as follows:
   17-5        (a)  A person transporting eligible agricultural commodities
   17-6  for compensation or hire, for the benefit of the original producer
   17-7  or grower, an independent ginning service, a grain or rice elevator
   17-8  business, a feedlot or livestock marketing business, a livestock
   17-9  slaughtering business, or a producers' or growers' cooperative
  17-10  association, between any point of production, processing, or
  17-11  storage, or from any point of production, processing, or storage to
  17-12  any point of first manufacture, regardless of who directs,
  17-13  controls, or pays for the transportation is not required to obtain
  17-14  a certificate <of public convenience and necessity> from the
  17-15  Commission or to comply with tariffs or orders of the Commission
  17-16  governing rates and charges to be offered, demanded, or received
  17-17  for such service if the person holds an agricultural permit issued
  17-18  by the Commission.
  17-19              (1)  The Commission shall, by regulation or as a
  17-20  contested matter properly before the Commission in an enforcement
  17-21  proceeding, define the terms "agricultural commodities," "point of
  17-22  production," "point of processing," "point of storage," and "point
  17-23  of first manufacture."  These terms shall include, in addition to
  17-24  such other commodities or points as the Commission shall designate:
  17-25                    (A)  agricultural commodities:  cotton,
  17-26  livestock, grain, fresh fruits, and fresh vegetables;
  17-27                    (B)  point of production:  farms and ranches at
   18-1  which the agricultural commodities were grown;
   18-2                    (C)  point of processing:  cotton gins, grain or
   18-3  rice mills, dryers, and animal auction barns;
   18-4                    (D)  point of storage:  grain or rice elevators,
   18-5  compresses, and warehouses.
   18-6              (2)  The holder of an agricultural permit shall comply
   18-7  with all Commission regulations concerning safety, insurance, and
   18-8  otherwise, except to the extent such regulations are made expressly
   18-9  inapplicable herein.  The holder shall be subject to administrative
  18-10  and other sanctions for failure to comply with applicable laws and
  18-11  regulations to the same extent as other motor carriers.
  18-12              (3)  The Commission shall, in implementing the
  18-13  provisions of this subsection, take into consideration its powers
  18-14  and duties to administer and enforce the Motor Carrier Act and
  18-15  shall prescribe such regulations for operations under authority of
  18-16  agricultural permits as the Commission deems necessary in the
  18-17  interest of the shipping and receiving public, provided that
  18-18  rulemaking authority granted under this paragraph shall be used to
  18-19  accomplish the overall purpose of this subsection.
  18-20        (b)  The Commission may issue agricultural permits without
  18-21  notice or<,> hearing<, or proof of public convenience and
  18-22  necessity>.  Each permit is valid for one year from the date of
  18-23  issuance unless a shorter period is requested by the applicant.
  18-24        SECTION 18.  Section 6(c), Chapter 314, Acts of the 41st
  18-25  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  18-26  Civil Statutes), is amended to read as follows:
  18-27        (c)  No application for permit shall be granted by the
   19-1  Commission until after a hearing <nor shall any such permit be
   19-2  granted if the Commission shall be of the opinion that the proposed
   19-3  operation of any such contract carrier will impair the efficient
   19-4  public service of any authorized common carrier or common carriers
   19-5  then adequately serving the same territory>.
   19-6        SECTION 19.  Section 7, Chapter 314, Acts of the 41st
   19-7  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   19-8  Civil Statutes), is amended to read as follows:
   19-9        Sec. 7.  (a)  For the purposes <purpose> of defraying the
  19-10  expenses of administering this Act and of enforcing motor carrier
  19-11  safety regulations and hazardous materials regulations, every motor
  19-12  carrier operating as a contract carrier shall, at the time of the
  19-13  issuance of a permit to him and annually thereafter on or between
  19-14  September 1st and September 15th of each calendar year pay a
  19-15  special fee of $20 <Ten Dollars ($10.00)> for each motor vehicle
  19-16  operated or to be operated by such motor carrier.  If the permit
  19-17  herein referred to is issued after the month of September of any
  19-18  year the fee paid shall be prorated to the remaining portion of the
  19-19  year ending August 31st following, but in no case less than
  19-20  one-fourth (1/4) the annual fee.  The Commission shall deposit
  19-21  one-half of all special fees collected under this subsection to the
  19-22  credit of the motor carrier safety fund, which is established as a
  19-23  special account in the general revenue fund in the state treasury.
  19-24  Money in the fund may be appropriated only to the Department of
  19-25  Public Safety of the State of Texas to enforce motor carrier safety
  19-26  regulations and hazardous material regulations adopted under the
  19-27  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
   20-1  Texas Civil Statutes) and its subsequent amendments.  <Provided,
   20-2  that no person now authorized by law to operate as a Class "A" or
   20-3  Class "B" motor carrier, and who has paid annual vehicle fees
   20-4  required by law of the holders of certificates or permits for the
   20-5  year ending September 1, 1931, shall be required to pay any
   20-6  additional vehicle fees or additional fees incident to the issuance
   20-7  of certificates or permits required in this Act, for the year
   20-8  ending September 1, 1931, in lieu of those now required by law.>
   20-9        (b)  Every application for a permit shall be accompanied by a
  20-10  filing fee in the sum of $250 <One Hundred Dollars ($100.00)> which
  20-11  fee shall be in addition to other fees and taxes and shall be
  20-12  retained by the Commission whether the permit be granted or not.
  20-13        SECTION 20.  Section 10, Chapter 314, Acts of the 41st
  20-14  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  20-15  Civil Statutes), is amended to read as follows:
  20-16        Sec. 10.  (a)  No application for a certificate <of public
  20-17  convenience and necessity> shall be considered by said Commission
  20-18  unless it is accompanied by the application fee required by Section
  20-19  17(a) of this Act and is <be> in writing and sets <set> forth the
  20-20  following facts:
  20-21              (1)  It shall contain the name and address of the
  20-22  applicant and the names and addresses of its officers, if any, and
  20-23  shall give full information concerning the financial condition and
  20-24  physical properties of the applicant.
  20-25              (2)  The commodity or class of commodities that the
  20-26  applicant proposes to transport and the complete territory <route
  20-27  or routes> over which the applicant desires to operate, together
   21-1  with the description of each vehicle which the applicant intends to
   21-2  use.
   21-3              (3)  <A proposed schedule of service and a schedule of
   21-4  rates to be charged between the several points or localities to be
   21-5  served.>
   21-6              <(4)>  It shall be accompanied by a plat or map showing
   21-7  the territory <route or routes> over which the applicant desires to
   21-8  operate<, and shall point out the public necessity for the proposed
   21-9  service and in what particulars the public convenience would be
  21-10  promoted by the institution of the proposed service, and shall
  21-11  specify wherein additional facilities or service are required and
  21-12  would be secured by the granting of said application>.
  21-13        (b)  The Commission, in prescribing and adopting rules and
  21-14  regulations and in forming its conclusions and in prescribing its
  21-15  orders, shall invite the opinion of the State Department of
  21-16  Highways and Public Transportation on the conditions of the public
  21-17  highways involved and the ability of said highways to carry the
  21-18  existing and proposed additional traffic, and the Commission shall
  21-19  give due and proper consideration to the orders, regulations,
  21-20  ordinances or recommendations of the State Department of Highways
  21-21  and Public Transportation; provided, however, nothing herein
  21-22  contained shall be deemed to restrict the powers of the State
  21-23  Department of Highways and Public Transportation under existing
  21-24  laws.  The Commission shall also give due and proper consideration
  21-25  to the recommendations of the Commissioners' Courts of the several
  21-26  Counties and to the recommendations of the local government of any
  21-27  municipality through or between which motor carriers operate.
   22-1        SECTION 21.  Section 13, Chapter 314, Acts of the 41st
   22-2  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   22-3  Civil Statutes), as amended by Chapters 377 and 1050, Acts of the
   22-4  70th Legislature, Regular Session, 1987, and Chapter 894, Acts of
   22-5  the 72nd Legislature, Regular Session, 1991, is amended to read as
   22-6  follows:
   22-7        Sec. 13.  Before any permit or certificate <of public
   22-8  convenience and necessity> may be issued to any motor carrier and
   22-9  before any motor carrier may lawfully operate under such permit or
  22-10  certificate as the case may be, such motor carrier shall file with
  22-11  the Commission bonds and/or insurance policies issued by some
  22-12  insurance company including mutuals and reciprocals or bonding
  22-13  company holding a certificate of authority to transact such kinds
  22-14  of insurance business in Texas or, with the Commission's approval,
  22-15  by a surplus lines insurer meeting the requirements of Article
  22-16  1.14-2, Insurance Code, and rules adopted by the State Board of
  22-17  Insurance under that article, in an amount to be fixed by the
  22-18  Commission under such rules and regulations as it may prescribe,
  22-19  which bonds and insurance policies shall provide that the obligor
  22-20  therein will pay to the extent of the face amount of such insurance
  22-21  policies and bonds all judgments which may be recovered against the
  22-22  motor carrier so filing said insurance policies and bonds, based on
  22-23  claims for loss or damages from personal injury or loss of, or
  22-24  injury to property occurring during the term of said bonds and
  22-25  policies and arising out of the actual operation of such motor
  22-26  carrier; and such bonds and policies shall also provide for
  22-27  successive recoveries to the complete exhaustion of the face amount
   23-1  thereof and that such judgments will be paid by the obligor in said
   23-2  bonds and insurance policies irrespective of the solvency or
   23-3  insolvency of the motor carrier; provided, however, such bonds and
   23-4  policies shall not cover personal injuries sustained by the
   23-5  servants, agents or employees of such motor carrier.  Provided
   23-6  further, that in the event the insured shall abandon his permit or
   23-7  certificate and leave the state, a claimant, asserting a claim
   23-8  within the provisions of said bonds or policies, may file suit
   23-9  against the sureties executing such bond or the company issuing
  23-10  such policies in a court of competent jurisdiction without the
  23-11  necessity of making the insured a party to said suit.  Provided,
  23-12  however, that the Commission shall not require insurance covering
  23-13  loss of or damage to cargo in amount excessive for the class of
  23-14  service to be rendered by any motor carrier.  Each such motor
  23-15  carrier shall, on or before the date of the expiration of the term
  23-16  of any policy or bond so filed by him, file a renewal thereof, or
  23-17  new bonds or policies containing the same terms and obligations of
  23-18  the preceding bonds and policies, and shall each year thereafter on
  23-19  or before the expiration date of the existing bonds and policies,
  23-20  file such renewal policies and bonds so as to provide continuous
  23-21  and unbroken protection to the public having legal claims against
  23-22  such motor carrier; and in the event such renewal bonds and
  23-23  policies are not so filed, the Commission, after notice to the
  23-24  motor carrier, and hearing, may, within its discretion if it shall
  23-25  find and determine that the ends of justice will be better
  23-26  subserved thereby, cancel such permit or certificate for failure to
  23-27  furnish and provide such bonds or insurance as herein required.
   24-1  The Commission may accept in lieu of the filing of the original
   24-2  policies of insurance, a certificate of insurance, in such form as
   24-3  may be prescribed by the Commission, which certificate, when filed
   24-4  with the Commission, will bind the obligor thereunder and satisfy
   24-5  the requirements of this section as if the original policies of
   24-6  insurance had been filed.
   24-7        Each motor carrier shall also protect his employees by
   24-8  obtaining workers' compensation insurance coverage as defined under
   24-9  the Texas Workers' Compensation Act (Article 8308-1.01 et seq.,
  24-10  Vernon's Texas Civil Statutes) or accidental insurance coverage in
  24-11  an amount fixed by the Commission from a reliable insurance company
  24-12  or companies authorized to write such policies in this state
  24-13  approved by the Commission.
  24-14        SECTION 22.  Section 14(a), Chapter 314, Acts of the 41st
  24-15  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  24-16  Civil Statutes), is amended to read as follows:
  24-17        (a)  The Commission shall have the power and authority under
  24-18  this Act to hear and determine all applications of motor carriers;
  24-19  to determine complaints presented to it by such carrier, by any
  24-20  public official, or by any citizen having an interest in the
  24-21  subject matter of the complaint, or it may institute and
  24-22  investigate any matter pertaining to motor carriers upon its own
  24-23  motion.  The Commission, or any member thereof, or authorized
  24-24  representative or Examiner of the Commission, shall have power to
  24-25  compel the attendance of witnesses, swear witnesses, take their
  24-26  testimony under oath, make record thereof, and if such record is
  24-27  made under the direction of a Commissioner, or authorized
   25-1  representative or Examiner of the Commission, a majority of the
   25-2  Commission may, upon the record, render judgment as if the case had
   25-3  been heard before a majority of the members of the Commission.  The
   25-4  Commission shall have the power and authority under this Act to do
   25-5  and perform all necessary things to carry out the purpose, intent,
   25-6  and provisions of this Act in a manner consistent with this Act<,
   25-7  whether herein specifically mentioned or not,> and to that end may
   25-8  hold hearings at any place in Texas which it may designate.
   25-9        SECTION 23.  Section 16(h), Chapter 314, Acts of the 41st
  25-10  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  25-11  Civil Statutes), is amended to read as follows:
  25-12        (h)  Except as provided by this Act, any <Any> common
  25-13  carrier, motor carrier, his agent, servant or employee who directly
  25-14  or indirectly gives to any shipper any rebate, or any shipper, his
  25-15  agent, servant or employee who directly or indirectly receives any
  25-16  rebate, shall be guilty of a misdemeanor and shall be punished by a
  25-17  fine not to exceed Two Hundred ($200.00) Dollars for each offense,
  25-18  in any court of competent jurisdiction in this State.  It being the
  25-19  intention of this Act that such motor carriers shall in every
  25-20  instance collect and receive, and the shipper shall pay lawful
  25-21  rates and fees established in accordance with this Act<, only the
  25-22  rate or fee prescribed or approved by the Commission>.
  25-23        SECTION 24.  Section 17(a), Chapter 314, Acts of the 41st
  25-24  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  25-25  Civil Statutes), is amended to read as follows:
  25-26        (a)(1)  For the purposes <purpose> of defraying the expense
  25-27  of administering this Act and enforcing motor carrier safety
   26-1  regulations and hazardous material regulations, every common
   26-2  carrier motor carrier now regularly operating, or which shall
   26-3  hereafter regularly operate in this state, shall at the time of the
   26-4  issuance of a certificate <of convenience and necessity>, unless
   26-5  otherwise provided herein, and annually thereafter pay a special
   26-6  fee of $20 <ten dollars ($10),> for each motor propelled vehicle
   26-7  operated or to be operated by such motor carrier in the carriage of
   26-8  property.  If the certificate <of convenience and necessity herein
   26-9  referred to> is issued after the month established for
  26-10  registration, the fee paid shall be prorated to the remaining
  26-11  portion of the registration year, but in no case less than
  26-12  one-fourth (1/4) the annual fee.  In case of an emergency or
  26-13  unusual temporary demands for transportation the fee for additional
  26-14  motor propelled vehicles for less period shall be fixed by the
  26-15  Commission in such reasonable amounts as may be prescribed by
  26-16  general rule or temporary order.  The Commission shall deposit
  26-17  one-half of all special fees collected under this subdivision to
  26-18  the credit of the motor carrier safety fund.
  26-19              (2)  Every application for a certificate of convenience
  26-20  and necessity shall be accompanied by a filing fee in the sum of
  26-21  $250 <one hundred dollars ($100)>, which fee shall be in addition
  26-22  to other fees and taxes and shall be retained by the Commission
  26-23  whether the certificate is <of convenience and necessity be>
  26-24  granted or not.
  26-25        SECTION 25.  Section 22a, Chapter 314, Acts of the 41st
  26-26  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
  26-27  Civil Statutes), is amended to read as follows:
   27-1        Sec. 22a.  Any certificate <of public convenience and
   27-2  necessity> shall be cancelled by the Commission if the owner or
   27-3  owners thereof shall in any manner avoid, fail or refuse to pay any
   27-4  gasoline or other tax imposed by law on such business.
   27-5        SECTION 26.  Section 22b, Chapter 314, Acts of the 41st
   27-6  Legislature, Regular Session, 1929 (Article 911b, Vernon's Texas
   27-7  Civil Statutes), is amended to read as follows:
   27-8        Sec. 22b.  Declaration of Policy.  The business of operating
   27-9  as a motor carrier of property for hire along the highways of this
  27-10  State is declared to be a business affected with the public
  27-11  interest.  The rapid increase of motor carrier traffic, and the
  27-12  fact that under existing law many motor trucks are not effectively
  27-13  regulated, have increased the dangers and hazards on public
  27-14  highways and make it imperative that more stringent regulation
  27-15  should be employed, to the end that the highways may be rendered
  27-16  safer for the use of the general public; that the wear of such
  27-17  highways may be reduced; <that discrimination in rates charged may
  27-18  be eliminated; that congestion of traffic on the highways may be
  27-19  minimized; that the use of the highways for the transportation of
  27-20  property for hire may be restricted to the extent required by the
  27-21  necessity of the general public,> and that the various
  27-22  transportation agencies of the State may be adjusted and correlated
  27-23  so that public highways may serve the best interest of the general
  27-24  public.
  27-25        SECTION 27.  Chapter 314, Acts of the 41st Legislature,
  27-26  Regular Session, 1929 (Article 911b, Vernon's Texas Civil
  27-27  Statutes), is amended by adding Section 22d to read as follows:
   28-1        Sec. 22d.  The Commission shall, at the earliest date
   28-2  practical after September 1, 1993, investigate all existing
   28-3  procedures pertaining to motor carrier entry and rate-making.
   28-4  After the investigation the Commission shall establish simplified
   28-5  procedures to eliminate delays for carriers and their customers.
   28-6  The simplified procedures shall include:
   28-7              (1)  automatic implementation of a rate on an interim
   28-8  basis on the filing of an application to impose that rate; and
   28-9              (2)  publication of complaints or protests to rate
  28-10  applications in appropriate tariff and suspension processes.
  28-11        SECTION 28.  Section 139(j), Uniform Act Regulating Traffic
  28-12  on Highways (Article 6701d, Vernon's Texas Civil Statutes), is
  28-13  amended to read as follows:
  28-14        (j)  A person convicted of a violation of a regulation
  28-15  adopted under this section is subject to a civil penalty in an
  28-16  amount to be set by the department by rule.  The amount may not
  28-17  exceed the maximum penalties provided for violations of current
  28-18  federal regulations and their subsequent amendments under the
  28-19  Hazardous Materials Regulations (49 C.F.R. Parts 101-199) and the
  28-20  Federal Motor Carrier Safety Regulations (49 C.F.R. Parts 386 and
  28-21  388-399) <not to exceed $200 for each day of noncompliance or for
  28-22  each act of noncompliance>.  The action may be brought in any court
  28-23  of competent jurisdiction in the county in which the violation
  28-24  occurred.
  28-25        SECTION 29.  The following provisions of Chapter 314, Acts of
  28-26  the 41st Legislature, Regular Session, 1929 (Article 911b, Vernon's
  28-27  Texas Civil Statutes), are repealed effective:
   29-1              (1)  September 1, 1993:  Sections 4(a)(2), (a)(3),
   29-2  (a)(4), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9), and (a)(10),
   29-3  Section 5a(g), and Section 9;
   29-4              (2)  September 1, 1994:  Section 1(i), Section 1c,
   29-5  Section 1d, Section 5a, and Sections 6(d) and (e); and
   29-6              (3)  September 1, 1995:  Section 8.
   29-7        SECTION 30.  (a)  Except as provided by Section 29 of this
   29-8  Act and as provided by Subsections (b), (c), and (d) of this
   29-9  section, this Act takes effect September 1, 1993.
  29-10        (b)  Sections 2, 5, 7, and 20 of this Act take effect
  29-11  September 1, 1994.
  29-12        (c)  Sections 8 and 26 of this Act take effect January 1,
  29-13  1995.
  29-14        (d)  Sections 14 and 18 of this Act take effect September 1,
  29-15  1995.
  29-16        SECTION 31.  The importance of this legislation and the
  29-17  crowded condition of the calendars in both houses create an
  29-18  emergency and an imperative public necessity that the
  29-19  constitutional rule requiring bills to be read on three several
  29-20  days in each house be suspended, and this rule is hereby suspended.