TWT S.B. 1351 75(R)BILL ANALYSIS TRANSPORTATION S.B. 1351 By: Shapleigh (Oliveira) 5-11-97 Committee Report (Unamended) BACKGROUND Currently, state and federal laws govern the state regulation of foreign commercial motor carriers within certain border commercial zones. However, Texas regulation of foreign commercial motor carriers is not harmonized with federal statutes. This lack of harmonization enables certain foreign commercial motor carriers engaged in the movement of international cargo within the state to operate in violation of federal statutes in a manner detrimental to Texas commercial motor carriers and public safety. PURPOSE As proposed, S.B. 1351 outlines provisions and provides administrative penalties regarding the regulation of foreign involvement in commercial motor transportation. RULEMAKING AUTHORITY It is the committee's opinion that additional rulemaking authority is expressly granted to the Texas Department of Transportation, the Department of Public Safety, and the Texas Department of Insurance in SECTION 1 (Section 2, Article 6675c-2, V.T.C.S.), and the Texas Department of Transportation under SECTION 1 (Section 6, Article 6675c-2, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 1, Title 116, V.T.C.S., by adding Article 6675c-2, as follows: Art. 6675c-2. FOREIGN COMMERCIAL MOTOR TRANSPORTATION Sec. 1. Defines "border," "commercial motor vehicle," "border commercial zone," "foreign commercial motor vehicle," and "motor carrier." Sec. 2. Authorizes the Texas Department of Transportation, the Department of Public Safety, and the Texas Department of Insurance to adopt other rules to carry out this article in addition to rules required by this article. Sec. 3. Provides that a reference in this article to a federal statute or regulation includes any subsequent amendment or redesignation of the statute or regulation. Sec. 4. Provides that a law or agreement of less than statewide application that is adopted by an agency or political subdivision of this state and that regulates motor carriers or commercial motor vehicles or the operation of those carriers or vehicles in the transportation of cargo across the border or within an area adjacent to the border by foreign commercial vehicles has no effect unless the law or agreement applies uniformly to an entire border commercial zone and only in a border commercial zone. Provides that this section supersedes that portion of any paired city, paired state, or similar understanding governing foreign commercial motor vehicles or motor carriers entered into under Section 502.054, Transportation Code, or any other law. Authorizes the boundaries of a border commercial zone to be modified or established only as provided by federal law. Sec. 5. Sets forth instances in which a foreign commercial motor vehicle is exempt from Chapter 502, Transportation Code, and any other law of this state requiring the vehicle to be registered in this state, including a law providing for a temporary registration permit. Authorizes a foreign commercial motor vehicle operating under the exemption provided under this section and the vehicle's driver to be considered unregistered if the vehicle is operated in this state outside a border commercial zone or in violation of United States law. Sec. 6. Requires the Texas Department of Transportation to adopt rules that conform with 49 C.F.R. Part 387 requiring motor carriers operating vehicles in this state to maintain financial responsibility. Provides that this article prevails over any other requirement of state law relating to financial responsibility for operation of those vehicles in this state. Sec. 7. Prohibits a foreign motor carrier or foreign motor private carrier from transporting persons or cargo in intrastate commerce in this state unless the carrier is authorized to conduct operations in interstate and foreign commerce domestically between points in the United States under federal law or international agreement. SECTION 2. Amends Article 6675d, V.T.C.S., by adding Section 16, as follows: Sec. 16. Provides that this article also applies to all foreign commercial motor vehicles, as defined by Section 1, Article 6675c-2, V.T.C.S., except as otherwise provided by law. SECTION 3. Effective date: September 1, 1997. SECTION 4. Emergency clause.