TWT S.B. 1486 75(R)BILL ANALYSIS TRANSPORTATION S.B. 1486 By: Bivins (Siebert) 5-19-97 Committee Report (Substituted) BACKGROUND Currently, the Texas Department of Transportation (TXDOT) is responsible for the registration of motor carriers and the Department of Public Safety (DPS) is charged with enforcing motor carrier laws. PURPOSE As proposed, S.B. 1486 addresses motor carrier registration requirements, enforcement authority, workers' compensation, and indemnification. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Department of Transportation in the following sections of the bill: SECTION 2. Section 3(l), Article 6675c, Revised Statutes. SECTION 3. Section 3A, Subsections (b), (d) and (f), Article 6675c, Revised Statutes. SECTION 5. Section 6, Subsection (a), Article 6675, Revised Statutes. SECTION 8. Section 15, Subsection (a), Article 6675c, Revised Statutes. SECTION 9. Subsection (e), Article 6675c-1, Revised Statutes. SECTION 10. Section 5, Subsection (a), Article 6675d, Revised Statutes. SECTION 11. Section 6, Subsections (a) and (c), Article 6675d, Revised Statutes. SECTION 17 Section 548.201, Subsection (a), Transportation Code. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2, Article 6675c, Revised Statutes, to provide that this article does not apply to a motor vehicle registered used to transport passengers operated by an entity whose primary function is not the transportation of passengers, or a vehicle operating under a private carrier permit issued under Chapter 42, Alcoholic Beverage Code. Makes standard recodification changes. SECTION 2. Amends Section 3, Article 6675c, Revised Statutes, by adding Subsections (l) and (m), to authorize the TXDOT to vary the registration period under this section by adopting certain rules. Prohibits a foreign-based international motor carrier required to register under this article or registered under Article 6675c-1, V.T.C.S., from transporting persons or cargo in intrastate commerce in this state. Prohibits a person from assisting a foreign-based international motor carrier in violating this subsection. SECTION 3. Amends Article 6675c, Revised Statutes, by adding Section 3A, as follows: Sec. 3A. VEHICLES OPERATED UNDER SHORT-TERM LEASE AND SUBSTITUTE VEHICLES. Defines "leasing business" and "short-term lease." Provides that a vehicle requiring registration operating under a short-term lease is exempt from the normal registration requirements of Section 3 of this article. Requires TXDOT to adopt rules providing for the operation of the vehicles under flexible procedures. Provides that a vehicle requiring registration operating under a short-term lease is not required to carry certain proof of registration if a copy of the lease agreement is carried in the cab of the vehicle. Authorizes a motor carrier to operate a substitute vehicle without notifying TXDOT in advance under certain conditions. Provides that a substitute vehicle is not required to carry proof of registration under certain conditions. Requires TXDOT to adopt rules that allow a leasing business to report annually to the department regarding certain leasing information. Prohibits the rules from requiring the vehicles operated from being described with particularity. Authorizes the registration fee for each vehicle operated to be paid at the time the report is filed. Authorizes certain leasing businesses to comply with the liability insurance requirements of Section 4 by completing certain tasks. Requires the rules adopted under this section to possess certain qualities. SECTION 4. Amends Section 4(j), Article 6675c, Revised Statutes, to prohibit TXDOT from requiring a motor carrier required to register under this article to carry workers' compensation or similar insurance coverage. Provides that notwithstanding any provision, rather than contrary provision, of any law or regulation, including Section 406.096, Labor Code, a motor carrier required to register under this article may provide health and accident coverage for its employees instead of workers' comp insurance for any contract with this state or a political subdivision of this state. SECTION 5. Amends Section 6(a), Article 6675c, Revised Statutes, to authorize TXDOT to impose an administrative penalty against certain motor carriers who violate a provision of Section 3A of this article. SECTION 6. Amends Section 7(a), Article 6675c, Revised Statutes, to authorize TXDOT to suspend or revoke a registration issued under this article if a motor carrier violated a rule adopted under Section 3A. SECTION 7. Amends Section 13(a), Article 6675c, Revised Statutes, to make a conforming change. SECTION 8. Amends Section 15, Article 6675c, Revised Statutes, to authorize the rules to authorize the use of escrow accounts described by Subsection (b) of this section. Authorizes TXDOT to establish one or more escrow accounts in the state highway fund for the prepayment of a fee under this article. Requires prepaid fees and any fees established by TXDOT for the administration of this section to be administered and deposited in a certain manner. Makes a conforming change. SECTION 9. Amends Article 6675c-1, Revised Statutes, by amending Subsection (e) and adding Subsection (f) as follows. (e)Authorizes the TXDOT to adopt rules authorizing the use of an escrow account for payment of fees. (f) Authorizes the TXDOT to establish one or more escrow accounts in the state highway fund to prepay fees. The prepaid fees and other fees shall be administered under an agreement approved by the TXDOT and deposited to the credit of the state highway fund to be appropriated only to the TXDOT. SECTION 10. Amends Section 5, Article 6675d, Revised Statutes, by amending Subsection (a) and adding Subsection (c) as follows. (a) Adds new Subdivision (4) prohibiting a rule from imposing maximum driving and on-duty times on operators of vehicles transporting agricultural commodities during planting and harvesting seasons if the place is located within 150 air miles of the source. (c) Defines "agricultural commodity". SECTION 11. Amends Section 6, Article 6675d, Revised Statutes, as follows: Sec. 6. New heading: CERTIFICATION OF MUNICIPAL POLICE OFFICERS. Requires TXDOT to establish procedures, including training, for the certification of municipal police officers, rather than peace officers, to enforce this article. Makes conforming changes. SECTION 12. Amends Section 1, Subdivision (5), Article 6675d, Revised Statutes, to redefine "federal motor carrier safety regulation." SECTION 13. Amends Section 522.004 (a), Transportation Code, by adding Subdivision (6) which exempted the application of this chapter of a vehicle used exclusively to transport seed cotton modules or cotton burrs. SECTION 14. Amends Section 545.253(a), Transportation Code, to strike the operator of a school bus carrying a child from having to comply with this section. SECTION 15. Amends Subchapter F, Chapter 545, Transportation Code, by adding a new Section 545.2535 requiring school buses to stop at all railroad grade crossings. Establishes procedures for the operator of a school bus to follow before crossing a track, prohibits the changing of gears while crossing a track, and establishes conditions under which an operator may not be required to stop. SECTION 16. Amends Section 548.001(1), Transportation Code, to redefine "commercial motor vehicle." SECTION 17. Amends Section 548.201, Transportation Code, to provide that an inspection program for commercial vehicles also applies to any vehicle or combination of vehicles with a gross weight rating of more than 10,000 pound that fulfills certain qualifications. SECTION 18. Amends Chapter 623B, Transportation Code, by adding Section 623.0155, as follows: Sec. 623.0155. INDEMNIFICATION FROM MOTOR CARRIER PROHIBITED. Prohibits a person from requiring indemnification for a motor carrier as a condition to perform certain actions. Provides that this section does not apply to certain claims, services, or goods. Defines "motor carrier." Provides that a provision that is contrary to Subsection (a) is not enforceable. SECTION 19. Amends Section 34.003, Education Code, as follows: (a) Amended to provide that school buses and mass transit authority vehicles may be used to transport students to and from schools. (b) Amended to provide that only school buses, mass transit authority vehicles, or motor buses may be used to transport 15 or more students in any one vehicle, and that passenger cars and passenger vans may be used to transport fewer than 15 students. (c) Amended to conform this subsection to changes made in Subsection (b). (d) New subsection providing definitions for a "passenger van". (e) Provides definitions of a "motor bus". SECTION 20. Amends Section 34.004, Education Code, to provide that a school district may not require or allow a child to stand on a passenger van that is in motion. SECTION 21. Amends Section 34.008(a), Education Code, to provide that mass transit authority vehicles used in the transporting of public school students must satisfy the safety requirements imposed by law on school motor vehicles operated by public school transportation systems. SECTION 22. Sets forth provisions relating to a reference in law to the federal Interstate Commerce Commission. SECTION 23. (a) Provides that this Act conforms Chapter 623, Transportation Code, to Section 28, Chapter 705, Acts of the 74th Legislature, 1995. (b) Provides that to the extent of any conflict between this Act and another Act of the 75th Legislature, this Act prevails. (c) Repealer: Section 28, Chapter 705, Acts of the 74th Legislature, 1995. SECTION 24. (a) Effective date: September 1, 1997. (b) Provides that Section 623.0155, Transportation Code, as added by this Act does not apply to a contract or agreement entered into before the effective date of this Act. (c) Provides that Section 34.003, Education Code, as amended by this Act applies beginning with the 1997-1998 school year. SECTION 25. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 14. The substitute adds new Section 14 to exempt the operator of a school bus carrying a child from having to comply with this section. This provision was not contained in the original (engrossed). SECTION 15. The substitute adds Section 15 which requires school buses to stop at all railroad grade crossings. This provision was not contained in the original (engrossed). SECTION 19. Section 19 of the substitute was Section 17 in the original. The original in Subsection (b)(1) authorized motor buses to transport 15 or more students to and from school. The substitute expands that and allows mass transit authority vehicles to transport 15 or more students to and from school. SECTION 20. Section 20 of the substitute was Section 18 in the original. SECTION 21. The substitute adds Section 21 to provide that mass transit authority vehicles used in the transporting of public school students must satisfy the safety requirements imposed by law on school motor vehicles operated by public school transportation systems. This provision was not included in the original. SECTION 22. Section 22 of the substitute was Section 19 of the original. SECTION 23. Section 23 of the substitute was Section 20 of the original. SECTION 24. Section 24 of the substitute was Section 21 of the original. SECTION 25. Section 25 of the substitute was Section 22 of the original.