By:  Haley                                            S.B. No. 1185
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to certain agricultural commodities.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 5b.(a), Article 911b, Vernon's Texas
    1-4  Civil Statutes, is amended to read as follows:
    1-5        Sec.5b.  (a)  A person transporting eligible agricultural
    1-6  commodities for compensation or hire, for the benefit of the
    1-7  original producer or grower, an independent ginning service, a
    1-8  grain or rice elevator business, a feedlot or livestock marketing
    1-9  business, a livestock slaughtering business, or a producers' or
   1-10  growers' cooperative association, between any point of production,
   1-11  processing, or storage, or from any point of production,
   1-12  processing, or storage to any point of first manufacture,
   1-13  regardless of who directs, controls, or pays for the transportation
   1-14  is not required to obtain a certificate of public convenience and
   1-15  necessity from the Commission or to comply with tariffs or orders
   1-16  of the Commission governing rates and charges to be offered,
   1-17  demanded, or received for such service if the person holds an
   1-18  agricultural permit issued by the Commission.
   1-19              (1)  The Commission shall, by regulation or as a
   1-20  contested matter properly before the Commission in an enforcement
   1-21  proceeding, define the terms "agricultural commodities," "point of
   1-22  production," "point of processing," "point of storage," and "point
   1-23  of first manufacture."  These terms shall include, in addition to
    2-1  such other commodities or points as the Commission shall designate:
    2-2                    (A)  agricultural commodities:  cotton, timber
    2-3  and timber products, livestock, grain, fresh fruits, and fresh
    2-4  vegetables;
    2-5                    (B)  point of production:  farms and ranches at
    2-6  which the agricultural commodities were grown;
    2-7                    (C)  point of processing:  cotton gins, saw
    2-8  mills, paper mills, grain or rice mills, dryers, and animal auction
    2-9  barns;
   2-10                    (D)  point of storage:  grain or rice elevators,
   2-11  compresses, and warehouses;
   2-12                    (E)  point of first manufacture:  the point at
   2-13  which the identity of the commodity substantially changes to a
   2-14  product that is then marketed for consumer use.  Commodities which
   2-15  are transported after initial processing in such changed status to
   2-16  a point of further processing before they are marketed for consumer
   2-17  use remain eligible agricultural commodities.
   2-18        SECTION 2.  Section 4. (a)(1) Article 911b, Vernon's Texas
   2-19  Civil Statutes, is amended to read as follows:
   2-20        Sec. 4.  (a)(1)  The Commission is hereby vested with power
   2-21  and authority and it is hereby made its duty to supervise and
   2-22  regulate the transportation of property for compensation or hire by
   2-23  motor vehicle on any public highway in this State, to fix,
   2-24  prescribe or approve the maximum or minimum or maximum and minimum
   2-25  rates, fares and charges of each motor carrier in accordance with
    3-1  the specific provisions herein contained, to prescribe all rules
    3-2  and regulations necessary for the government of motor carriers, to
    3-3  require the filing of such monthly, annual or other reports and
    3-4  other data of motor carriers as the Commission may deem necessary,
    3-5  to prescribe the schedules and services of motor carriers operating
    3-6  as common carriers, and to supervise and regulate motor carriers in
    3-7  all matters affecting the relationship between such carriers and
    3-8  the shipping public whether herein specifically mentioned or not.
    3-9  To ensure nondiscriminatory rates, charges, and classifications for
   3-10  all shippers and users of regulated transportation services for
   3-11  which the Commission prescribes rates, charges, and
   3-12  classifications, the Commission shall establish collective
   3-13  ratemaking procedures for all commodities and services for which it
   3-14  prescribes rates, charges, and classifications.  Those procedures
   3-15  must assure that respective revenues and costs of carriers engaged
   3-16  in the transportation of the particular commodity or service for
   3-17  which rates are prescribed are ascertained.  Failure on the part of
   3-18  any carrier to comply with this subsection or the rules and
   3-19  regulations adopted under it may result in suspension or
   3-20  cancellation of the carrier's operating authority by the
   3-21  Commission.
   3-22              (2)  The Commission shall, at the earliest date
   3-23  practicable after the effective date of this Act, investigate all
   3-24  existing rates and charges in effect on the effective date of this
   3-25  Act which relate to transportation of shipments of general
    4-1  commodities, including agricultural commodities not otherwise
    4-2  included as eligible agricultural commodities under Sec. 5b. of
    4-3  this Act, weighing in excess of 500 pounds by motor carriers <other
    4-4  than> including specialized motor carriers and <other than>
    4-5  including contract carriers subject to Commission-prescribed
    4-6  tariffs governing transportation of specialized commodities.
    4-7  Following such investigation, the Commission shall establish,
    4-8  pursuant to existing ratemaking procedures prescribed in
    4-9  Subdivision (1) of this subsection, simplified base rates and
   4-10  charges applicable on such shipments, which rates and charges shall
   4-11  be based on carriers' actual operating costs incurred in
   4-12  transporting the shipments for which such simplified rates and
   4-13  charges are prescribed plus a reasonable margin.
   4-14              (3)  Base rates and charges for shipments of general
   4-15  commodities weighing in excess of 500 pounds, including
   4-16  agricultural commodities not otherwise included as eligible
   4-17  agricultural commodities under Sec. 5b. of this Act, transported by
   4-18  motor carriers <other than> including specialized motor carriers
   4-19  and <other than> including contract carriers subject to
   4-20  Commission-prescribed tariffs governing transportation of
   4-21  specialized commodities shall be reviewed pursuant to the
   4-22  ratemaking procedures prescribed in Subdivision (1) of this
   4-23  subsection no less than annually by the Commission and, if
   4-24  necessary, shall be adjusted pursuant to the ratemaking procedures
   4-25  prescribed in Subdivision (1) of this subsection to ensure that
    5-1  such base rates and charges remain just and reasonable and to
    5-2  ensure that such base rates and charges continue to cover carriers'
    5-3  actual operating costs incurred in transporting involved shipments
    5-4  plus a reasonable margin.  The annual base rate review required by
    5-5  this subsection shall be additional to any and all other procedures
    5-6  now available for review and adjustment by the Commission of rates
    5-7  on involved shipments weighing in excess of 500 pounds.
    5-8              (4)  Notwithstanding any other provision of this Act or
    5-9  any existing Commission regulation, motor carriers <other than>
   5-10  including specialized motor carriers and <other than> including
   5-11  contract carriers subject to Commission-prescribed tariffs
   5-12  governing transportation of specialized commodities shall be
   5-13  permitted to deviate from the prescribed base rate (i) for
   5-14  shipments weighing in excess of 500 pounds but less than 10,000
   5-15  pounds by an amount not to exceed <five> 25 percent above or below
   5-16  such base rate and (ii) for shipments weighing in excess of 10,000
   5-17  pounds by an amount not to exceed <15> 25 percent above or below
   5-18  such base rate; provided, that a carrier or carriers electing to so
   5-19  deviate shall file notice thereof with the Commission.  Such
   5-20  proposed deviation shall become effective five days after filing
   5-21  and receipt by the Commission.  In the event the simplified base
   5-22  rate is thereafter increased or decreased, such increase or
   5-23  decrease shall be applied to any deviation rate published under
   5-24  this subdivision.  Provided, however, that the Commission shall
   5-25  promptly provide notice to the public of any deviation under this
    6-1  subsection and with respect to any such deviation any interested
    6-2  party shall have the right to petition the Commission for
    6-3  suspension of such deviation within 15 days of such notice on the
    6-4  grounds that the deviation results in predatory pricing as
    6-5  hereinafter defined.  The deviation shall remain in effect and
    6-6  shall not be suspended unless the Commission, after hearing, shall
    6-7  determine that suspension is warranted and so orders.
    6-8              (5)  "Predatory pricing" means the charging of rates,
    6-9  fares, or charges by a carrier which are below that carrier's
   6-10  actual operating costs or unreasonably above such costs or which
   6-11  are unduly discriminatory.  A motor carrier regulated under this
   6-12  Act may not engage in predatory pricing.  Any interested party,
   6-13  including any interested motor carrier and any interested shipper,
   6-14  may file a petition for suspension with the Commission seeking to
   6-15  have the Commission determine if predatory pricing exists.  The
   6-16  Commission shall duly prescribe appropriate expedited procedures
   6-17  for hearing and for interim decision on any such complaint at the
   6-18  Commission conference next following completion of the hearing or
   6-19  as early thereafter as is reasonably possible.  The Commission may
   6-20  charge a fee for the filing of any documents required to be filed
   6-21  with the Commission under Subdivision (4) of this subsection.
   6-22              (6)  Should the Commission determine that a carrier has
   6-23  engaged in predatory pricing as defined in Subdivision (5) of this
   6-24  subsection, the Commission may:  (1) suspend the carrier's
   6-25  deviation from the base rate; (2) direct the carrier to charge and
    7-1  collect the base rate; and (3) direct the carrier to repay any
    7-2  overcharges and collect any undercharges.
    7-3              (7)  All rates, fares, and charges governing shipments
    7-4  weighing in excess of 500 pounds in effect on the effective date of
    7-5  this Act shall remain in effect until such time as the Commission
    7-6  completes the investigation and prescribes the base rates and
    7-7  charges which are required by this subsection.  The deviation
    7-8  procedures provided in Subdivision (4) of this subsection for
    7-9  specialized motor carriers and contract carriers subject to
   7-10  Commission-prescribed tariffs governing transportation of
   7-11  specialized commodities shall become effective upon establishment
   7-12  of such base rates and charges, which shall be no later than
   7-13  January 1, <1988> 1994.  The rates, fares, or charges in effect on
   7-14  January 1, <1988> 1994, shall be rates, fares, or charges for the
   7-15  purposes of this Act until any or all of such base rates, fares,
   7-16  and charges shall be investigated and prescribed as new base rates,
   7-17  fares, and charges by the Commission.
   7-18              (8)  The Commission shall have the power and authority
   7-19  after January 1, 1988, to review, after notice and hearing, the
   7-20  rates then in effect governing shipments weighing 500 pounds or
   7-21  less by motor carriers <other than> including specialized motor
   7-22  carriers and <other than> including contract carriers subject to
   7-23  Commission-prescribed tariffs governing transportation of
   7-24  specialized commodities, and following such review, if deemed
   7-25  necessary by the Commission to accomplish the objectives of this
    8-1  Act, the Commission may order that the deviation, suspension, and
    8-2  predatory pricing provisions and procedures of Subdivisions (3),
    8-3  (4), and (5) of this subsection applicable to shipments weighing in
    8-4  excess of 500 pounds but less than 10,000 pounds be likewise
    8-5  applicable to shipments weighing 500 pounds or less.
    8-6              (9)  The Commission shall also have power and authority
    8-7  to order, after notice and hearing, if deemed necessary to
    8-8  accomplish the objectives of this Act, that the deviation
    8-9  percentages provided in Subdivision (4) of this subsection be
   8-10  adjusted; provided, however, such deviation percentages shall not
   8-11  be decreased by the Commission so as to be less than five percent
   8-12  above or 25 percent below the base rate for shipments weighing
   8-13  10,000 pounds or less and shall not be less than 15 percent above
   8-14  or 25 percent below the base rate for shipments weighing in excess
   8-15  of 10,000 pounds.
   8-16        SECTION 3.  Article 911b, Section 4 (a)(10) is repealed.
   8-17        SECTION 4.  The importance of this legislation and the
   8-18  crowded condition of the calendars in both houses create an
   8-19  emergency and an imperative public necessity that the
   8-20  constitutional rule requiring bills to be read on three several
   8-21  days in each house be suspended, and this rule is hereby suspended,
   8-22  and that this Act take effect and be in force from and after its
   8-23  passage, and it is so enacted.