BILL ANALYSIS
C.S.S.B. 3
By: Bivins (Seidlits)
05-02-95
Committee Report (Substituted)
BACKGROUND
Under provisions of the Texas Motor Carrier Act, the Texas Railroad
Commission (commission) regulates both rates and authority,
determining who may offer trucking services, what commodities they
may haul, where they may operate, and what rates may be charged.
Additionally, the Act allows the commission to regulate the
trucking industry for safety and insurance coverage. The Texas
Department of Public Safety is primarily responsible for the
enforcement of motor carrier safety statutes.
By contrast, interstate regulation of motor carriers has decreased
significantly with the passage of the federal Motor Carrier Act of
1980 and the liberal interpretation of the statute by the
Interstate Commerce Commission. Entry into the market and trucking
rates at the interstate level are based primarily on market needs,
rather than government regulation.
In the summer of 1994, the U.S. Congress extended deregulation to
a new level with the passage of the Federal Aviation Administration
Authorization Act by preempting all state laws relating to economic
regulation. As of January 1, 1995, the commission no longer has
the authority to required rate and tariff filings. The Trucking
Industry Regulatory Reform Act overrides the state's ability to
regulate intrastate motor carrier rates and service.
PURPOSE
As proposed, C.S.S.B. 3 substantially revises the regulation of
motor carriers; provides civil, administrative, and criminal
penalties.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the State Department of Highways and Public Transportation in
SECTION 1 (Sections 3(b)(6) and (j), 4(a) and (c), 5(c), 8(c) and
(f), 9(c), 12, and 14(d), Article 6675c, V.T.C.S.) and SECTION 3
(Section 6(c), 7(a), and 15, Article 6675d, V.T.C.S.), to the
public safety director in SECTION 3 (Section 3(a), Article 6675d,
V.T.C.S.), and the Texas Department of Transportation and the
Department of Public Safety in SECTION 31(k)) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 1, Title 116, V.T.C.S., by adding Article
6675c, as follows:
Art. 6675c. MOTOR CARRIER REGISTRATION
Sec. 1. DEFINITIONS. Defines "motor carrier," "hazardous
material," "household goods," "insurer," "tow truck," and
"vehicle requiring registration."
Sec. 2. EXEMPTIONS. Sets forth motor vehicles to which this
article does not apply.
Sec. 3. REGISTRATION. (a) Prohibits a motor carrier
(carrier) from operating a motor vehicle or a tow truck on a
road or highway of this state unless the carrier registers
with the State Department of Highways and Public
Transportation (department).
(b) Requires an applicant for registration to submit an
application on a form prescribed by the department. Sets
forth requirements for the application, including any
information the department, by rule, determines is necessary
for the safe operation of a carrier.
(c) Requires the application to be filed along with an
application fee, a per vehicle fee, and proof of insurance
or financial responsibility.
(d) Requires the department to register a carrier if the
carrier meets the requirements of Subsections (b) and (c).
Authorizes the department to deny a registration if the
applicant has had a registration revoked under Section 7.
(e) Requires the department to issue a certificate
containing a single registration number to a carrier
regardless of the number of vehicles. Requires the
department to issue a cab card for each vehicle requiring
registration the carrier operates.
(f) Authorizes the department to conditionally accept an
incomplete application for registration if the carrier meets
the requirements of Subsection (c). Requires the department
to notify the carrier of the incomplete status and the
information required for completion. Provides that if the
carrier fails to supply the information within 45 days of
the department's notice the application is considered
withdrawn and requires the department to retain the required
fees.
(g) Requires a carrier required to register to supplement
the carrier's application for registration before performing
certain functions.
(h) Requires the department to prescribe the form of a
supplemental application. Prohibits a carrier from
operating an additional vehicle requiring registration
unless the carrier shows proof of insurance or financial
responsibility and pays a registration fee of $10 for each
vehicle the carrier proposes to operate. Requires the
department to collect no more than a total of $10 in
registration fees if the vehicle is also registered under
the single state registration plan. Prohibits a registered
carrier from beginning the transport of household goods or
hazardous materials unless the carrier provides proof of
insurance or financial responsibility.
(i) Provides that a registration is valid for one year.
Authorizes the department to adopt a system under which
registrations expire at different times. Sets forth the
authorized procedure for renewing a registration.
(j) Authorizes the department, by rule, to provide for the
temporary registration of an international carrier that
provides the same proof of insurance as is required for a
domestic carrier. Authorizes the department to charge a fee
for a temporary registration in an amount not to exceed the
costs of administering this subsection.
Sec. 4. INSURANCE. (a) Requires each carrier required to
register to maintain liability insurance in an amount set by
the department for each vehicle the carrier operates.
Authorizes the department, by rule, to set the amount of
insurance required and sets forth factors the department is
required to consider in setting the amount.
(b) Requires a carrier transporting household goods to
maintain the same amount of cargo insurance required for a
motor carrier transporting household goods.
(c) Authorizes a carrier to meet the insurance requirements
through self-insurance if the carrier demonstrates that it
can satisfy its liability obligations. Requires the
department to adopt rules that provide for a system of self-insurance for a carrier.
(d) Requires a carrier required to register to file with the
department proof of insurance or proof of financial
responsibility in a form prescribed by the department. Sets
forth the required times for filing the form.
(e) Requires a carrier to keep proof of insurance in an
approved form in the cab of each vehicle.
(f) Authorizes the department to charge a fee for a filing
made under Subsection (d).
(g) Prohibits an insurer from terminating coverage provided
to a registered carrier without 30 days' notice.
(h) Requires notice under Subsection (g) to be in a form
approved by the department and the Texas Department of
Insurance. Requires the department to notify the State of
Texas Department of Public Safety (public safety department)
of each notice filed.
(i) Requires the carrier to file certain items with the
department within 10 days after the coverage lapses if an
insurer becomes insolvent, is placed in receivership, or has
had its certificate of authority suspended or revoked and if
the carrier no longer has insurance coverage.
(j) Prohibits the department from requiring a carrier to
carry workers' compensation or similar insurance coverage.
Authorizes a carrier to provide health and accident
insurance coverage for its employees in lieu of workers'
compensation insurance for any contract with the state or
local governmental entities or agencies or their political
subdivisions.
Sec. 5. CAB CARDS. (a) Requires the department to issue a
cab card annually when the carrier pays the registration fee
for each vehicle requiring registration. Requires the card to
contain certain information about the vehicle and to be kept
in the cab of each vehicle. Authorizes the department to
charge a $1 fee for each card.
(b) Authorizes the department to order a carrier to
surrender a card if the carrier's registration is suspended
or revoked.
(c) Authorizes the department to adopt, by rule, an
alternative method that is accessible by law enforcement
personnel to allow for the enforcement of the annual
registration if the department determines that the card
system is no longer an efficient means of enforcement.
Sec. 6. ADMINISTRATIVE PENALTY BY TEXAS DEPARTMENT OF
TRANSPORTATION. (a) Authorizes the department to impose an
administrative penalty against a carrier required to register
who violates Section 3, 4, 5, 8, or 12, or a rule or order
adopted under those sections. Requires the department to
designate employees to investigate and administer penalties.
(b) Authorizes the penalty for a violation to be up to
$5,000. Authorizes the penalty to be up to $15,000 for a
violation knowingly committed, or up to $30,000 for multiple
violations. Provides that each day of violation is a
separate offense.
(c) Requires the amount of the penalty to be based on
certain factors.
(d) Authorizes the department to issue a report to the
director of the department (director) if the department
determines that a violation has occurred stating the facts
on which the determination was based and recommending any
penalty.
(e) Requires the director to give written notice of the
report to the carrier. Requires the notice to include a
summary of the alleged violation, the recommended penalty,
and notice that the carrier has a right to a hearing on the
occurrence of the violation.
(f) Authorizes the carrier to accept the determination and
recommended penalty or to make a request for a hearing
within 20 days after the carrier receives the notice.
Authorizes the department to hold an informal hearing to
discuss a recommended penalty. Authorizes the department to
modify a penalty at the hearing's conclusion.
(g) Requires the director, by order, to approve the
determination and impose the penalty if the carrier accepts
the determination and penalty.
(h) Requires the department to set and give notice of a
hearing to the carrier if the carrier requests a hearing or
fails to respond to the notice. Sets forth the required
procedure for the hearing. Authorizes the director to
increase or decrease the amount of the penalty recommended
by an administrative law judge.
(i) Requires the notice of the director's order given to the
carrier to include a statement of the right of the carrier
to judicial review.
(j) Requires the carrier to pay the penalty, pay the penalty
and file a petition for judicial review, or file a petition
without paying the penalty within 30 days after the
director's order becomes final.
(k) Authorizes a carrier to stay enforcement of the penalty
or request the court to stay enforcement by taking certain
actions within the 30-day period.
(l) Authorizes a department who receives a copy of an
affidavit to file with the court, within five days of
receiving the copy, a contest to the affidavit. Requires
the court to hold a hearing on the facts alleged in the
affidavit and to stay the enforcement of the penalty on
finding that the facts are true. Provides that the carrier
who files the affidavit has the burden of proving that the
carrier is financially unable to pay the penalty and to give
a supersedeas bond.
(m) Authorizes the director to refer the matter to the
attorney general if the carrier does not pay the penalty and
the enforcement is not stayed.
(n) Provides that judicial review of the director's order is
instituted by filing a petition and is under the substantial
evidence rule.
(o) Authorizes the court to decide whether to reduce the
penalty or the amount that the carrier must pay. Requires
the court to order that no penalty is owed if the court does
not sustain the occurrence of the violation.
(p) Requires the court, upon its final judgment, to remit
the person's money with interest if the amount is reduced or
not upheld and to order the release of the supersedeas bond
if the carrier gave a bond if the penalty is not upheld or
after the carrier has paid the reduced amount.
(q) Subjects all proceedings to Chapter 2001, Government
Code.
Sec. 7. SUSPENSION AND REVOCATION OF REGISTRATION. (a)
Authorizes the department to suspend or revoke a registration
under certain circumstances.
(b) Authorizes the public safety department to suspend or
revoke a registration if a motor carrier has an
unsatisfactory safety rating or has multiple violations
under Article 6675d, V.T.C.S. or Article 6701d, V.T.C.S.
(Uniform Act Regulating Traffic on Highways).
(c) Provides that a suspension or revocation is a contested
case under Chapter 2001, Government Code.
(d) Authorizes the department or the public safety
department to suspend or revoke a registration without a
hearing if either department provides certain notice to the
carrier and the carrier fails to provide either department
with a written request for a hearing within 10 days after
receiving the notice.
Sec. 8. ECONOMIC REGULATION. (a) Prohibits the department
from regulating prices, routes, or services provided by a
carrier, except as provided by this section.
(b) Authorizes the department to establish voluntary
standards for uniform cargo liability, bills of lading or
receipts for cargo, and cargo credit. Requires a standard
to be consistent with Title 49IV, United States Code, or a
regulation adopted under that law.
(c) Requires the department to adopt rules to protect
consumers who use the services of a carrier required to
register and who is transporting household goods that are at
least as stringent as corresponding federal provisions.
Requires a carrier transporting household goods to list the
address of a business in any print advertising published in
this state. Authorizes the department to adopt all rules to
ensure that customers of household goods movers are
protected from deceptive, unfair, or dangerous activities by
the movers. Sets forth authorized measures the rules may,
but are not required to include.
(d) Requires a carrier who is required to register and who
is transporting household goods to file a tariff with the
department which establishes maximum charges for
transportation services where a highway traverses certain
areas. Authorizes this requirement to be satisfied by
filing a copy of the carrier's tariff. Prohibits making the
tariffs filed available for public inspection at the
department. Prohibits the department from adopting rules
regulating the rates, except as provided herein, or routes
of household goods carriers.
(e) Provides that a rule requiring a carrier transporting
household goods to offer insurance for the full value of a
customer's property does not constitute the unauthorized
practice of the insurance business.
(f) Requires all collective associations of carriers
transporting household goods or their agents, which have
received approval for collective ratemaking agreements, to
provide a method of mediation for consumers to receive
resolution of disputes. Requires all mediation costs to be
borne by the carriers, the agents, or the association.
Requires all carriers and agents to participate in the
mediation and advertisement of the availability of
mediation. Requires any complaint mediation that is not
resolved to be reported to the department. Requires
consumers to be advised of their rights to seek resolution
from the department. Requires the department to adopt rules
to ensure that such notification is available to consumers.
Sec. 9. ANTITRUST EXEMPTION. (a) Provides that Chapter 15,
Business & Commerce Code, does not apply to a discussion or
agreement between a carrier who is required to register and
who transports household goods and an agent of the carrier
involving certain matters.
(b) Authorizes an agent to be a carrier required to
register.
(c) Authorizes the department, by rule, to exempt a carrier
required to register for an activity relating to the
establishment of joint line rates, routes, classifications,
or mileage guides.
(d) Authorizes carriers who are required to register and who
transport household goods, and their agents, to enter into
collective agreements concerning the establishment and
filing of maximum rates, classifications, rules, or
procedures. Requires the agreements to be submitted to the
department for approval and to be approved or disapproved by
the department under certain circumstances. Provides that
the provisions of such agreement may be observed and
prohibits Chapter 15, Business and Commerce Code, from
applying to any applicable carrier. Authorizes an
association of household goods carriers or their agents to
be designated by any applicable carrier as its collective
maximum ratemaking association for the purpose of the
required filing of a tariff for maximum rates.
Sec. 10. CRIMINAL PENALTY. Sets forth a list of offenses and
provides that these offenses are Class C misdemeanors.
Sec. 11. TOW TRUCK REGULATION BY MUNICIPALITY. (a)
Authorizes a municipality to regulate the operation of a tow
truck.
(b) Prohibits a municipality from requiring the registration
of a tow truck that performs consent tows, with an
exception.
(c) Authorizes the municipality to require the registration
of a tow truck that performs a non-consent tow.
(d) Prohibits a municipality from requiring a person who has
a driver's or commercial driver's license to obtain a
license or permit for operating a tow truck unless the
person performs non-consent tows in the territory of the
municipality. Prohibits the fee for a license from
exceeding $15.
(e) Defines "commercial driver's license," "consent tow,"
"driver's license," and "non-consent tow."
Sec. 12. RULES. Authorizes the department to adopt rules as
necessary to administer this article.
Sec. 13. INSPECTION OF DOCUMENTS. (a) Authorizes a certified
department official or employee to enter a motor carrier's
premises to copy or verify the correctness of documents.
(b) Authorizes the officer or employee to conduct the
inspection by following certain requirements.
Sec. 14. RULES ADVISORY COMMITTEE. (a) Requires the
department to appoint a rules advisory committee (committee)
to advise the department in adopting certain rules.
(b) Requires the department to determine the size of the
committee, but requires the committee to include certain
representatives.
(c) Provides that the members serve at the pleasure of the
department. Provides that a member is not entitled to
compensation or reimbursement of expenses for service.
(d) Authorizes the department to adopt rules to govern the
operations of the committee.
SECTION 2. Amends Chapter 1, Title 116, V.T.C.S., by adding Article
6675c-1, as follows:
Art. 6675c-1. SINGLE STATE REGISTRATION. (a) Requires the
department to participate in the single state registration
system.
(b) Authorizes the department to charge a carrier holding a
permit a fee for filing proof of insurance up to the maximum
established under federal law
SECTION 3. Amends Chapter 1, Title 116, V.T.C.S., by adding Article
6675d, as follows:
Art. 6675d. COMMERCIAL MOTOR VEHICLE SAFETY STANDARDS
Sec. 1. DEFINITIONS. Defines "commercial motor vehicle,"
"department," "director," "federal hazardous material
regulation," "federal motor carrier safety regulation," and
"federal safety regulation."
Sec. 2. CONFLICTS OF LAW. (a) Provides that a federal motor
carrier safety regulation prevails over a conflicting
provision of this article or a rule adopted by the public
safety director (director) under this article.
(b) Provides that a safety rule adopted under this article
prevails over a conflicting rule adopted by a local
government, authority, or state agency or officer (local
governmental entity), other than a conflicting rule adopted
by the Railroad Commission of Texas (railroad commission).
Sec. 3. AUTHORITY TO ADOPT RULES. (a) Requires the director
to adopt rules, after notice and a public hearing, to regulate
the safe transportation of hazardous materials and the safe
operation of commercial motor vehicles.
(b) Requires rules to be consistent with federal
regulations.
(c) Authorizes the director to adopt all or part of the
federal safety regulations.
(d) Requires rules adopted to ensure certain safety issues.
(e) Requires motor carrier safety rules adopted by a local
governmental entity to be consistent with federal
regulations.
Sec. 4. APPLICABILITY OF RULES. (a) Applies a rule adopted
by the director uniformly throughout Texas, notwithstanding
certain federal exemptions.
(b) Applies rules to a vehicle that requires hazardous
material placarding.
(c) Provides that a rule adopted under this article may not
apply to a vehicle that is operated intrastate and that has
certain functions or qualities.
Sec. 5. LIMITATIONS OF RULES. (a) Prohibits a rule adopted
under this article from preventing an intrastate operator from
working up to 12 hours after 8 consecutive hours off,
requiring a person to meet the federal motor carrier safety
medical standards under certain conditions, or requiring a
person to maintain certain forms if a general record of an
operator's service hours can be compiled from other
information.
(b) Sets forth the information generally included in an
owner's business records.
Sec. 6. CERTIFICATION OF MUNICIPAL PEACE OFFICERS. (a)
Requires the public safety department to establish procedures
for the certification of municipal peace officers to enforce
this article.
(b) Provides that a peace officer of a municipality that has
a population of 100,000 or more or in a county bordering the
United Mexican States is eligible to apply for
certification.
(c) Requires the public safety department, by rule, to
establish fees sufficient to recover the cost of certifying
a municipality's peace officers.
Sec. 7. MUNICIPAL ENFORCEMENT REQUIREMENTS. (a) Authorizes
the public safety department, by rule, to establish uniform
standards for municipal enforcement.
(b) Requires a municipality that engages in enforcement to
pay all costs relating to the municipality's enforcement and
prohibits it from being considered for a federal grant
agreement or a grantee under a federal grant to the public
safety department.
(c) Provides that municipal enforcement is not considered
public safety departmental enforcement purposes.
(d) Authorizes a municipality to retain fines from the
enforcement in an amount up to 110 percent of the actual
expenses for enforcement in the preceding fiscal year, or of
the amount determined by the comptroller if a municipality
has no expenses from the preceding fiscal year.
(e) Requires a municipality to send the proceeds of all
fines exceeding the limit to the state treasurer for the
general revenue fund.
Sec. 8. DETENTION OF VEHICLES. (a) Authorizes an officer of
the public safety department to enter or detain on a highway
a motor vehicle that is subject to this article.
(b) Authorizes a certified peace officer to detain on a
highway within the municipality a motor vehicle that is
subject to this article.
Sec. 9. INSPECTION OF PREMISES. (a) Authorizes a certified
officer or public safety department employee to enter a
carrier's premises to inspect real property or copy or verify
the correctness of certain documents.
(b) Authorizes the officer or employee to conduct the
inspection under certain circumstances.
Sec. 10. CRIMINAL OFFENSE. Provides that a person commits a
Class C misdemeanor if the person violates a rule or does not
permit an inspection and that each day of violation is a
separate offense.
Sec. 11. CIVIL PENALTY. (a) Provides that a person who does
not permit an inspection is liable for a civil penalty of up
to $1,000.
(b) Authorizes the attorney general to sue to collect the
penalty in certain counties.
(c) Provides that the penalty provided by this section is in
addition to the penalty under Section 10.
(d) Provides that each day a person refuses to permit an
inspection constitutes a separate violation.
Sec. 12. ADMINISTRATIVE PENALTY. (a) Authorizes the public
safety department to impose an administrative penalty against
a person who violates a rule adopted under this article or a
provision of Article 6701d, V.T.C.S. (Uniform Act Regulating
Traffic on Highways) that the public safety department by rule
subjects to penalties.
(b) Requires a provision to relate to the safe operation of
a commercial motor vehicle, to be designated as subject to
administrative penalties.
(c) Prohibits a penalty from exceeding the maximum penalty
provided by similar federal safety regulations.
(d) Requires a penalty to be administered in the same manner
as a penalty under Section 6, Article 6675, V.T.C.S.
Sec. 13. SUIT FOR INJUNCTION. (a) Requires the attorney
general to sue to enjoin a violation or a threatened violation
of a rule if requested by the director.
(b) Requires the suit to be brought in the county where the
offense allegedly occurred.
(c) Authorizes the court to grant the director a prohibitory
or mandatory injunction or, after notice and hearing, a
temporary or permanent injunction.
Sec. 14. SAFETY AUDIT PROGRAM. Requires the public safety
department to implement and enforce a safety audit program
similar to the federal program for a person who owns or
operates a commercial motor vehicle not subject to safety
audits by the federal government.
Sec. 15. RULES. Authorizes the public safety department to
adopt rules as necessary to administer this article.
SECTION 4. Amends Chapter 6, Title 25, V.T.C.S, by adding Article
911m, as follows:
Art. 911m. MOTOR TRANSPORTATION BROKERS
Sec. 1. DEFINITION. Defines "motor transportation broker."
Sec. 2. EXCEPTION. Provides that this article does not apply
to a motor transportation broker that is registered as a
carrier under Article 6675c, V.T.C.S., or holding a permit
issued under Title 49IV, United States Code.
Sec. 3. BOND REQUIRED. (a) Prohibits a person from acting as
a motor transportation broker (broker) unless the person
provides a bond to the Texas Department of Transportation
(transportation department).
(b) Sets forth requirements for the bond.
(c) Authorizes the public safety department to charge the
broker a bond review fee not to exceed the cost of reviewing
the bond.
Sec. 4. CRIMINAL PENALTY. Provides that a person commits a
Class C misdemeanor if the person fails to provide a bond.
SECTION 5. Amends Section 41.03, Alcoholic Beverage Code, to
include a carrier registered under Article 6675c, V.T.C.S., in the
group authorized to receive a carrier permit. Deletes a provision
including a common carrier operating under a certificate of
convenience and necessity issued by the railroad commission.
SECTION 6. Amends Section 42.03, Alcoholic Beverage Code, to delete
the provision requiring a person desiring to transport liquor for
hire to secure a certificate or permit from the railroad
commission.
SECTION 7. Amends Section 67.01, Alcoholic Beverage Code, to
include a carrier registered under Article 6675c, V.T.C.S., to the
list of authorized means for transporting beer. Makes a conforming
change.
SECTION 8. Amends Section 201.073, Labor Code, to redefine
"employment."
SECTION 9. Amends Section 154.001(3), Tax Code, to redefine "common
carrier."
SECTION 10. Amends Section 155.001(3), Tax Code, to make
conforming changes.
SECTION 11. Amends Article 883, V.T.C.S., to prohibit carriers
of passengers, goods, wares, and merchandise for hire from limiting
or restricting their liability as it exists at common law, unless
the limitation or restriction is in conspicuous writing in a bill
of lading, a contract for transportation, or other written
arrangement for transportation. Deletes provisions setting forth
exceptions to the prohibition on limiting liability.
SECTION 12. Amends Article 883(a), V.T.C.S., to prohibit a motor
carrier of household goods, but not other carriers for hire, from
being required to accept household goods for transportation unless
the shipper or owner thereof or an agent is required to first
declare in writing the value thereof. Deletes a provision
requiring the railroad commission to establish adequate rates
consistent with such declared values to be assessed and collected.
SECTION 13. Amends Article 911k, V.T.C.S., to exempt a motor
carrier or motor bus carrier transporting persons or property for
hire from any state occupation tax measured by gross receipts.
SECTION 14. Amends Section 8(a), Article 6519c, V.T.C.S., to
delete an exception provided by Section 17(c), Article 911b,
V.T.C.S., to the requirement that all taxes and license, permit,
and truck registration fees be deposited to the credit of the
General Revenue Fund.
SECTION 15. Amends Section 4(c), Article 6674v, V.T.C.S., to
redefine "project and "turnpike project."
SECTION 16. Amends Section 2A, Article 6675a-6e, V.T.C.S., to
provide that nothing in the Temporary Registration for Nonresidents
Act shall be construed to authorize a nonresident owner or operator
to operate or cause to be operated any vehicles in violation of any
other state laws.
SECTION 17. Amends Section 2(1), Article 6687-9a, V.T.C.S.
(Vehicle Storage Facility Act), to redefine "commission."
SECTION 18. Amends Section 4(c), Article 6687-9a, V.T.C.S., to
delete a provision requiring fees collected under this subsection
to be deposited in the general revenue fund to be appropriated only
to the railroad commission for the administration of this Act.
SECTION 19. Amends Section 13(b), Article 6687-9a, V.T.C.S., to
make a conforming change.
SECTION 20. Amends Section 15, Article 6687-9a, V.T.C.S., to
require the transportation department to deposit all fees to the
credit of the general revenue. Deletes a provision setting forth
requirements for using the funds.
SECTION 21. Amends Section C(2), Article 6701-1/2, V.T.C.S., to
authorize the transportation department, rather than the
department, to issue single trip permits. Authorizes single trip
permits to be issued to installers registered with the Texas
Department of Licensing and Regulation, rather than the Texas
Department of Labor and Standards, for the transportation of all
manufactured homes.
SECTION 22. Amends Section 3(e), Article 6701a, V.T.C.S., to
provide that the requirement of a bond does not apply to a vehicle
or equipment operated by a carrier registered under Article 6675c,
V.T.C.S.
SECTION 23. Amends Section 3, Article 6701b-1, V.T.C.S., to
delete provisions providing that this article does not apply to a
commercial motor vehicle operated under the control of a motor bus
company that has a certificate issued by the railroad commission or
a commercial motor vehicle, truck tractor, or road tractor operated
under the authority of a motor carrier that is subject to Section
18 or exempt under Section 18a, Article 911b, V.T.C.S.
SECTION 24. Amends Section 140A(a), Article 6701d, V.T.C.S.
(Uniform Act Regulating Traffic on Highways), to redefine
"commercial motor vehicle."
SECTION 25. Amends Chapter 42, Article 6701d-11, V.T.C.S., by
adding Section 1B, to define "oil field equipment."
SECTION 26. Amends Section 3(c)(1), Article 6701d-11, V.T.C.S.,
to make a conforming change.
SECTION 27. Amends Section 5B(g), Article 6701d-11, V.T.C.S., to
require an applicant for a permit who is a registered carrier to
file with the department an irrevocable letter of credit issued by
a financial institution or a blanket bond that the applicant will
pay to the department for any damage caused by a vehicle with a
gross weight or axle weight exceeding authorized limits.
SECTION 28. Amends Section 33, Article 6701h, V.T.C.S. (Texas
Motor Vehicle Safety-Responsibility Act), to delete the exception
to the exception to applicability of the Act provided in Section
35. Makes a conforming change.
SECTION 29. Amends Section 10(c), Article 9103, V.T.C.S., to
make a conforming change.
SECTION 30. Repealer: Section 361.431, Health and Safety Code
(Intrastate Transportation of Recyclable Materials).
Section 51.012, Election Code (Transporting Election Supplies
for Hire).
Article 911a, V.T.C.S. (Motor bus transportation and
regulation by railroad commission).
Article 911b, V.T.C.S. (Motor carriers and regulation by
railroad commission).
Article 911d, V.T.C.S. (Regulation of motor bus ticket
brokers).
Article 911f, V.T.C.S. (Motor transportation brokers of fresh
citrus fruits and vegetables).
Article 911h, V.T.C.S. (Agreement requiring carrier to pay
charge contingent upon use of another mode of
transportation).
Article 911i, V.T.C.S. (Transporting by motor vehicle for hire
without permit).
Article 911j, V.T.C.S. (Transportation of persons for hire;
agencies for obtaining co- travelers to share
expenses; license;
penalty).
Article 6687-9b, V.T.C.S. (Tow truck registration).
Section 2(o), Article 6701d, V.T.C.S. (Uniform Act Regulating
Traffic on Highways, Definition of Words and
Phrases).
Section 139, Article 6701d, V.T.C.S. (Motor Carrier Safety
Standards).
Section 5-2/3(e), Article 6701d-11, V.T.C.S. (Regulating
operation of vehicles on highways).
SECTION 31. (a) Provides that any appropriation made to the
railroad commission for the administration of a repealed law is
transferred either to the transportation department or the public
safety department.
(b) Makes application of this Act prospective.
(c) Makes application of this Act prospective. Requires the
transportation department to assign a registration number to
a carrier that is identical to the prior number issued by the
railroad commission.
(d) Transfers a proceeding pending before the railroad
commission to suspend or revoke a registration issued under a
repealed law or to impose a penalty to the transportation
department on the effective date. Provides that the
proceeding is dismissed or a penalty may no longer be imposed
on the effective date if registration is no longer required.
(e) Transfers all records of the railroad commission involving
the registration of a motor carrier under a repealed law that
pertain to registration or safety requirements to the public
safety department on the effective date.
(f) Transfers a proceeding before the railroad commission to
suspend or revoke a license under Article 6687-9a, V.T.C.S.
(Vehicle Storage Facility Act) or to impose a penalty on the
effective date to the department. Transfers all records of
the railroad commission involving licensing to the department
on the effective date.
(g) Requires the railroad commission, the transportation
department, and the public safety department to adopt a
memorandum of understanding regarding the transfer of duties.
(h) Abolishes the Motor Carrier Act enforcement fund account
in the general revenue fund and transfers the money to the
undedicated portion of the general revenue fund on the
effective date.
(i)-(j) Require the transportation department and the public
safety department to review all rules adopted by the
department to enforce this Act by January 1, 1996.
(k) Requires the transportation department and the public
safety department to adopt new rules after conducting a
required review.
SECTION 32. Requires all state agencies to review existing
regulations which affect carriers and to seek means to improve
resource utilization and enforcement and to improve the industry's
productivity and voluntary compliance in certain areas. Requires
the review to make efforts to eliminate duplicitous regulations.
SECTION 33. Effective date: September 1, 1995.
SECTION 34. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
(1) SECTION 1. In CSSB 3, Art. 6675c, Sec. 1, a definition of
"director" is added in subdivision (1). Remaining subdivisions are
renumbered accordingly. No similar provision exists in SB 3.
(2) SECTION 1. In CSSB 3, Art. 6675c, Sec. 1(3) is amended by
replacing "1802" with "5102."
(3) SECTION 1. In CSSB 3, Art. 6675c, subdivision (3) is added to
Sec. 3(c) to require that a filing fee accompany every application.
No similar provision exists in SB 3.
(4) SECTION 1. In CSSB 3, Art. 6675c, Sec.3(h) is amended (pg. 5,
lines 7-9) to prohibit duplicative fees from being charged for
substitute vehicles which have been removed from service. No
similar provision exists in SB 3.
(5) SECTION 1. In CSSB 3, Art. 6675c, subsection (k) is added to
clarify that carriers who hold registrations under the Single State
Registration system but also do intrastate carriage are only
charged a fee up to $10. A similar provision exists in Sec. 3(h)
(pg. 5, lines 8-14) of SB 3.
(6) SECTION 1. In CSSB 3, Art. 6675c, Sec. 4(g) is amended by
adding the language "before the date the termination takes effect"
to clarify when an insurance carrier must provide 30 days notice.
No similar language exists in SB 3.
(7) SECTION 1. In CSSB 3, Art. 6675c, Sec. 7 is amended to ensure
that the Texas Department of Transportation (TxDOT) is the sole
administrator of registration suspensions and revocations:
subsection (b) is amended to require the Department of Public
Safety (DPS) to "request that the department" suspend or revoke a
registration. In subsection (d) and subdivisions (1) and (2) of
subsection (d), the words "or the Department of Public Safety" are
deleted. Art. 6675c, Sec. 7 of SB 3 allowed DPS to suspend or
revoke registrations.
(8) SECTION 1. In CSSB 3, Art. 6675c, Sec. 8(c)(1) is amended by
adding "apart from the method of mediation in Subsection (f) of
this section;". SB 3 was unclear as to whether TxDOT needed to
regulate the method of mediation in Subsection (f) of Sec. 8.
(9) SECTION 1. In CSSB 3, Art. 6675c, a new Sec. 15 is added to
allow TxDOT to adopt rules to authorize the use of electronic funds
transfer or credit card transactions to pay fees under this
article. No similar provision exists in SB 3.
(10) SECTION 2. In CSSB 3, Art. 6675c-1, a new subsection (c) was
added to provide TxDOT administrative penalty power to enforce the
Single State Registration system established under 49 U.S.C.
Section 11506. New subsection (d) was added to provide that a
person commits a Class C misdemeanor offense if he or she violates
a provision under this article or fails to register a vehicle under
this article. New subsection (e) was added to allow TxDOT to adopt
rules to authorize the use of electronic funds transfer or credit
card transactions to pay fees under this article. No similar
enforcement provisions exist in SB 3.
(11) SECTION 4. In CSSB 3, Art. 911m, a new Sec. 5 is added to
allow TxDOT to adopt rules to authorize the use of electronic funds
transfer or credit card transactions to pay fees under this
article. No similar provision exists in SB 3.
(12) SECTION 9. In CSSB 3, this new SECTION was added to provide
changes to Section 152.089, Tax Code to provide that interstate
motor vehicles, trailers, and semitrailers are exempt from the
sales and use tax imposed in the code. This provision is effective
September 1, 2000. The remaining SECTIONs are appropriately
numbered. No similar provision exists in SB 3.
(13) SECTION 10. In CSSB 3, Subdivision (3), Section 154.001, Tax
Code is further amended by adding the words "or a successor agency
to the Interstate Commerce Commission" to provide an alternative if
the Interstate Commerce Commission (ICC) is phased out by the
federal government. No similar provision exists in SB 3.
(14) SECTION 11. In CSSB 3, Subdivision (3), Section 155.001, Tax
Code is further amended by adding the words "or a successor agency
to the Interstate Commerce Commission" to provide an alternative if
the Interstate Commerce Commission (ICC) is phased out by the
federal government. No similar provision exists in SB 3.
(15) SECTION 19. In CSSB 3, Subsection (c), Sec. 4, Vehicle
Storage Facility Act (Art. 6687-9a, Revised Statutes), is further
amended to allow TxDOT to adopt rules to authorize the use of
electronic funds transfer or credit card transactions to pay fees
under this article. No similar provision exists in SB 3.
(16) SECTION 22. In CSSB 3, Subsection (2), Sec. C, Art. 6701-1/2,
Revised Statutes is further amended by adding the words "and to
motor carriers registered under Article 6675c, Revised Statutes"
(page 47, lines 7-8). This ensures that all motor carriers are not
required to post a bond with TxDOT. SB 3 provided that only
oversized carriers be granted the ability to forego posting a bond.
(17) SECTION 25. In CSSB 3, Section 140A, Uniform Act Regulating
Traffic on Highways (Article 6701d, Vernon's Texas Civil Statutes),
new subsection (g) is added to authorize TxDOT to exempt by rule
nurse tank trailers. No similar provision exists in SB 3.
(18) SECTION 31. In CSSB 3, subdivision (11) is added to repeal
Article 6701c-1, Vernon's Texas Civil Statutes. This is the lease
law. No similar repealer exists in SB 3.
(19) SECTION 31. In CSSB 3, subsection (b) is added to repeal
Chapter 157, Tax Code, effective September 1, 2000. No similar
repealer exists in SB 3.
(20) SECTION 32. In CSSB 3, subsection (f) is further amended on
page 57, lines 21-24 to provide TxDOT the ability to absorb the
rules adopted by the Texas Railroad Commission to administrate the
Vehicle Storage Facility Act. No similar provision exists in SB 3.
(21) SECTION 32. In CSSB 3, subsection (g) is further amended on
page 58, line 1, beginning with "Notwithstanding" through line 10,
to authorize the lateral transfer of employees from the Texas
Railroad Commission to TxDOT. No similar provision exists in SB 3.
(22) SECTION 32. In CSSB 3, new subsection (l) is added to declare
all certificates of public convenience and necessity and contract
carrier permits canceled.
SUMMARY OF COMMITTEE ACTION
Pursuant to a public notice posed on April 13, 1995 at 4:14 p.m.,
the House Committee on Transportation met in a public hearing on
Wednesday, April 19, 1995 at 2:00 p.m., or upon adjournment, in
Room E1.014 of the Capitol Extension and was called to order at
2:16 p.m. by the Chair, Representative Clyde Alexander. The Chair
laid out S.B. 3 and recognized Representative Seidlits to explain
S.B. 3. The Chair recognized the following persons who testified
in support of S.B. 3. Larry Cernosek, Texas Towing and Storage
Association. Mike Craddock, Southwest Warehouse and Transfer
Association. David Zalkovsky, Southwest Warehouse and Transfer
Association. Bill Haley, Texas Motor Transportation Association.
Mark Foster, Texas Association of Business and Chambers of
Commerce. The Chair recognized the following person who testified
but was neutral on S.B. 3. Jim Allison, County Judges and
Commissioners Association of Texas. The Chair left S.B. 3 pending
before the Committee. Pursuant to a public notice announced from
the House floor on May 2, 1995, in accordance with House Rules, the
House Committee on Transportation met in a formal meeting on the
House Floor, at Desk 22, on Tuesday, May 2, 1995, and was called to
order by the Chairman, Representative Clyde Alexander at 12:00 p.m.
The Chair laid out S.B. 3 by Bivins, which was pending before the
committee. Representative Alexander laid out the Committee
substitute to S.B. 3, and without objection the substitute was
adopted. Representative Alexander moved that the Committee report
S.B. 3, as substituted, to the full House with the recommendation
that it do pass. The motion prevailed by the following vote: Ayes
(7), Nayes (0), Absent (2), Present not voting (0).