1-1     By:  Shapleigh, Truan, Lucio                          S.B. No. 1351

 1-2           (In the Senate - Filed March 13, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on International Relations,

 1-4     Trade, and Technology; April 25, 1997, reported adversely, with

 1-5     favorable Committee Substitute by the following vote:  Yeas 7, Nays

 1-6     0; April 25, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1351               By:  Shapleigh

 1-8                                   AN ACT

 1-9     relating to the regulation of foreign involvement in commercial

1-10     motor transportation.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Chapter 1, Title 116, Revised Statutes, is

1-13     amended by adding Article 6675c-2 to read as follows:

1-14           Art. 6675c-2.  FOREIGN COMMERCIAL MOTOR TRANSPORTATION

1-15           Sec. 1.  DEFINITIONS.  In this article:

1-16                 (1)  "Border" means the border between this state and

1-17     the United Mexican States.

1-18                 (2)  "Commercial motor vehicle" includes a foreign

1-19     commercial motor vehicle.

1-20                 (3)  "Border commercial zone" means a commercial zone

1-21     established under 49 C.F.R. Part 372, Subpart B, any portion of

1-22     which is contiguous to the border in this state.

1-23                 (4)  "Foreign commercial motor vehicle" means a

1-24     commercial motor vehicle, as defined by 49 C.F.R. Section 390.5,

1-25     that is owned or controlled by a person or entity that is domiciled

1-26     in or a citizen of a country other than the United States.

1-27                 (5)  "Motor carrier" includes a foreign motor carrier

1-28     and a foreign motor private carrier, as defined in 49 U.S.C.

1-29     Sections 13102(6) and (7).

1-30           Sec. 2.  RULES.  In addition to rules required by this

1-31     article, the Texas Department of Transportation, the Department of

1-32     Public Safety, and the Texas Department of Insurance may adopt

1-33     other rules to carry out this article.

1-34           Sec. 3.  REFERENCE TO FEDERAL STATUTE OR REGULATION.  A

1-35     reference in this article to a federal statute or regulation

1-36     includes any subsequent amendment or redesignation of the statute

1-37     or regulation.

1-38           Sec. 4.  BORDER COMMERCIAL ZONE EXCLUSIVE; BOUNDARIES.

1-39     (a)  A law or agreement of less than statewide application that is

1-40     adopted by an agency or political subdivision of this state and

1-41     that regulates motor carriers or commercial motor vehicles or the

1-42     operation of those carriers or vehicles in the transportation of

1-43     cargo across the border or within an area adjacent to the border by

1-44     foreign commercial motor vehicles has no effect unless the law or

1-45     agreement applies uniformly to an entire border commercial zone and

1-46     only in a border commercial zone.  This section supersedes that

1-47     portion of any paired city, paired state, or similar understanding

1-48     governing foreign commercial motor vehicles or motor carriers

1-49     entered into under Section 502.054, Transportation Code, or any

1-50     other law.

1-51           (b)  The boundaries of a border commercial zone may be

1-52     modified or established only as provided by federal law.

1-53           Sec. 5.  REGISTRATION EXEMPTION IN BORDER COMMERCIAL ZONE.

1-54     (a)  A foreign commercial motor vehicle is exempt from Chapter 502,

1-55     Transportation Code, and any other law of this state requiring the

1-56     vehicle to be registered in this state, including a law providing

1-57     for a temporary registration permit, if:

1-58                 (1)  the vehicle is engaged solely in transportation of

1-59     cargo across the border into or from a border commercial zone;

1-60                 (2)  for each load of cargo transported the vehicle

1-61     remains in this state:

1-62                       (A)  not more than 24 hours; or

1-63                       (B)  not more than 48 hours, if:

1-64                             (i)  the vehicle is unable to leave this

 2-1     state within 24 hours because of circumstances beyond the control

 2-2     of the motor carrier operating the vehicle; and

 2-3                             (ii)  all financial responsibility

 2-4     requirements applying to the vehicle are satisfied;

 2-5                 (3)  the vehicle is registered and licensed as required

 2-6     by the law of another state or country as evidenced by a valid

 2-7     metal license plate attached to the front or rear of the exterior

 2-8     of the vehicle; and

 2-9                 (4)  the country in which the person that owns or

2-10     controls the vehicle is domiciled or is a citizen provides a

2-11     reciprocal exemption for commercial motor vehicles owned or

2-12     controlled by residents of this state.

2-13           (b)  A foreign commercial motor vehicle operating under the

2-14     exemption provided by this section and the vehicle's driver may be

2-15     considered unregistered if the vehicle is operated in this state

2-16     outside a border commercial zone or in violation of United States

2-17     law.

2-18           Sec. 6.  FINANCIAL RESPONSIBILITY.  The Texas Department of

2-19     Transportation shall adopt rules that conform with 49 C.F.R. Part

2-20     387 requiring motor carriers operating foreign commercial motor

2-21     vehicles in this state to maintain financial responsibility.  This

2-22     article prevails over any other requirement of state law relating

2-23     to financial responsibility for operation of those vehicles in this

2-24     state.

2-25           Sec. 7.  DOMESTIC TRANSPORTATION.  A foreign motor carrier or

2-26     foreign motor private carrier may not transport persons or cargo in

2-27     intrastate commerce in this state unless the carrier is authorized

2-28     to conduct operations in interstate and foreign commerce

2-29     domestically between points in the United States under federal law

2-30     or international agreement.

2-31           SECTION 2.  Article 6675d, Revised Statutes, is amended by

2-32     adding Section 16 to read as follows:

2-33           Sec. 16.  APPLICATION TO FOREIGN COMMERCIAL MOTOR VEHICLES.

2-34     Except as otherwise provided by law, this article also applies to

2-35     all foreign commercial motor vehicles, as defined by Section 1,

2-36     Article 6675c-2, Revised Statutes.

2-37           SECTION 3.  This Act takes effect September 1, 1997.

2-38           SECTION 4.  The importance of this legislation and the

2-39     crowded condition of the calendars in both houses create an

2-40     emergency and an imperative public necessity that the

2-41     constitutional rule requiring bills to be read on three several

2-42     days in each house be suspended, and this rule is hereby suspended.

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