SRC-MAX S.B. 1486 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1486
By: Bivins
State Affairs
4-9-97
As Filed


DIGEST 

Currently, the Texas Department of Transportation is responsible for the
registration of motor carriers and the Department of Public Safety is
charged with enforcing motor carrier laws.  This bill addresses certain
concerns raised by these two agencies regarding registration requirements,
enforcement authority, workers' compensation, and indemnification.   

PURPOSE

As proposed, S.B. 1486 sets forth provisions regarding the regulation of
motor carriers.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Department of Transportation
in SECTIONS 2, 3, 8, and 13 (Sections 3(1), 3A(b) and (d), and 15(a)
Article 6675c, V.T.C.S., and Section 548.002(a), Transportation Code) of
this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2, Article 6675c, V.T.C.S., 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, and a vehicle transporting liquor under a
private carrier permit issued under Chapter 42, Alcoholic Beverage Code.
Makes standard recodification changes. 

SECTION 2. Amends Section 3, Article 6675c, V.T.C.S., by adding
Subsections (l) and (m), to authorize the Texas Department of
Transportation (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. 

SECTION 3. Amends Article 6675c, V.T.C.S., 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, V.T.C.S., 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' compensation insurance for
any contract with this state or a political subdivision of this state.   

SECTION 5. Amends Section 6(a), Article 6675c, V.T.C.S., 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, V.T.C.S., 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, V.T.C.S., to make a
conforming change. 

SECTION 8. Amends Section 15, Article 6675c, V.T.C.S., 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, V.T.C.S., to make conforming changes.

SECTION 10. Amends Section 6, Article 6675d, V.T.C.S., 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 11. Amends Section 1(5), Article 6675d, V.T.C.S., to redefine
"federal motor carrier safety regulation." 

SECTION 12. Amends Section 548.001(1), Transportation Code, to redefine
"commercial motor vehicle." 

SECTION 13. Amends Section 548.002, Transportation Code, to authorize
TxDOT, by rule, to exempt certain vehicles for the regulation under this
chapter under certain conditions. 

SECTION 14. Amends Chapter 623B, Transportation Code, by adding Section
623.0155, as follows: 

Sec.  623.0155.  INDEMNIFICATION FORM 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 15. Sets forth provisions relating to  a reference in law to the
federal Interstate Commerce Commission. 

SECTION 16. (a)  Provides that this Act conforms Chapter 623,
Transportation Code, to Section 28, Chapter 705, V.T.C.S. 

(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 74 Legislature, 1995.
 
SECTION 17. Effective date:  September 1, 1997.

SECTION 18. Emergency clause.