By: Bivins S.B. No. 1486
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of motor carriers.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2, Article 6675c, Revised Statutes, is
1-4 amended to read as follows:
1-5 Sec. 2. EXEMPTIONS. This article does not apply to:
1-6 (1) a motor vehicle registered under the single state
1-7 registration system established under 49 U.S.C. Section 11506(c)
1-8 when operating exclusively in interstate or international commerce;
1-9 (2) a motor vehicle registered as a cotton vehicle
1-10 under Section 502.277, Transportation Code [5o, Chapter 88, General
1-11 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
1-12 (Article 6675a-5o, Vernon's Texas Civil Statutes)]; [or]
1-13 (3) a motor vehicle the department by rule exempts
1-14 because the vehicle is subject to comparable registration and a
1-15 comparable safety program administered by another governmental
1-16 entity;
1-17 (4) a motor vehicle used to transport passengers
1-18 operated by an entity whose primary function is not the
1-19 transportation of passengers, such as a vehicle operated by a
1-20 hotel, day-care center, public or private school, nursing home,
1-21 governmental entity, or similar organization; or
1-22 (5) a vehicle operating under a private carrier permit
1-23 issued under Chapter 42, Alcoholic Beverage Code [agency].
2-1 SECTION 2. Section 3, Article 6675c, Revised Statutes, is
2-2 amended by adding Subsections (l) and (m) to read as follows:
2-3 (l) The department may vary the registration period under
2-4 this section by adopting rules that provide for:
2-5 (1) an optional two-year registration; and
2-6 (2) the issuance of a temporary registration permit
2-7 that is valid for less than one year.
2-8 (m) A foreign-based international motor carrier required to
2-9 register under this article or registered under Article 6675c-1,
2-10 Revised Statutes, may not transport persons or cargo in intrastate
2-11 commerce in this state. A person may not assist a foreign-based
2-12 international motor carrier in violating this subsection.
2-13 SECTION 3. Article 6675c, Revised Statutes, is amended by
2-14 adding Section 3A to read as follows:
2-15 Sec. 3A. VEHICLES OPERATED UNDER SHORT-TERM LEASE AND
2-16 SUBSTITUTE VEHICLES. (a) In this section:
2-17 (1) "Leasing business" means a person that leases
2-18 vehicles requiring registration.
2-19 (2) "Short-term lease" means a lease of 30 days or
2-20 less.
2-21 (b) A vehicle requiring registration operated under a
2-22 short-term lease is exempt from the normal registration
2-23 requirements of Section 3 of this article. The department shall
2-24 adopt rules providing for the operation of these vehicles under
2-25 flexible procedures. A vehicle requiring registration operated
3-1 under a short-term lease is not required to carry a cab card or
3-2 other proof of registration if a copy of the lease agreement is
3-3 carried in the cab of the vehicle.
3-4 (c) A motor carrier may operate a substitute vehicle without
3-5 notifying the department in advance if the substitute is a
3-6 temporary replacement because of maintenance, repair, or other
3-7 unavailability of the vehicle originally leased. A substitute
3-8 vehicle is not required to carry a cab card or other proof of
3-9 registration if a copy of the lease agreement for the vehicle
3-10 originally leased is carried in the cab of the substitute.
3-11 (d) Instead of the registration procedures described by
3-12 Section 3 of this article, the department shall adopt rules that
3-13 allow a leasing business to report annually to the department on
3-14 the number of vehicles requiring registration that the leasing
3-15 business actually operated in the previous 12 months. The rules
3-16 may not require the vehicles operated to be described with
3-17 particularity. The registration fee for each vehicle operated may
3-18 be paid at the time the report is filed.
3-19 (e) A leasing business that registers its vehicles under
3-20 Subsection (d) of this section may comply with the liability
3-21 insurance requirements of Section 4 of this article by filing proof
3-22 of a contingency liability policy as determined by the department.
3-23 (f) Rules adopted by the department under this section must
3-24 be designed to avoid requiring a vehicle to be registered more than
3-25 once in a calendar year and may allow a leasing business to
4-1 register a vehicle on behalf of a lessee.
4-2 SECTION 4. Subsection (j), Section 4, Article 6675c, Revised
4-3 Statutes, is amended to read as follows:
4-4 (j) The department may not require a motor carrier required
4-5 to register under this article to carry workers' compensation or
4-6 similar insurance coverage. Notwithstanding any [contrary]
4-7 provision of any law or regulation, including Section 406.096,
4-8 Labor Code, a motor carrier required to register under this article
4-9 may provide health and accident coverage for its employees instead
4-10 of workers' compensation insurance for any contract with this state
4-11 or a political subdivision of this state [shall protect its
4-12 employees by obtaining workers' compensation insurance coverage as
4-13 defined under the Texas Workers' Compensation Act (Subtitle A,
4-14 Title 5, Labor Code) or accidental insurance coverage in an amount
4-15 fixed by the Texas Department of Transportation from a reliable
4-16 insurance company or companies authorized to write such policies in
4-17 this state approved by the department. The amount fixed by the
4-18 department may not be less than $300,000 for medical expenses for
4-19 no less than 104 weeks, $100,000 for accidental death and
4-20 dismemberment, 70 percent of the employee's pre-injury income for
4-21 no less than 104 weeks when compensating for loss of income, and
4-22 $500 for the maximum weekly benefit].
4-23 SECTION 5. Subsection (a), Section 6, Article 6675c, Revised
4-24 Statutes, is amended to read as follows:
4-25 (a) The department may impose an administrative penalty
5-1 against a motor carrier required to register under this article who
5-2 violates a provision of Section 3, 3A, 4, 5, 8, or 12 of this
5-3 article or a rule or order adopted under those sections. The
5-4 department shall designate one or more employees to investigate and
5-5 administer penalties under this section.
5-6 SECTION 6. Subsection (a), Section 7, Article 6675c, Revised
5-7 Statutes, is amended to read as follows:
5-8 (a) The department may suspend or revoke a registration
5-9 issued under this article if:
5-10 (1) a motor carrier fails to maintain insurance as
5-11 required by Section 4(a) or (b) of this article;
5-12 (2) a motor carrier fails to keep proof of insurance
5-13 in the cab of each vehicle as required by Section 4(e) of this
5-14 article;
5-15 (3) a motor carrier fails to register a vehicle
5-16 requiring registration; [or]
5-17 (4) a motor carrier knowingly provides false
5-18 information on any form filed with the department under this
5-19 section; or
5-20 (5) a motor carrier violates a rule adopted under
5-21 Section 3A of this article.
5-22 SECTION 7. Subsection (a), Section 13, Article 6675c,
5-23 Revised Statutes, is amended to read as follows:
5-24 (a) To investigate an alleged violation of Section 3, 3A, or
5-25 4 of this article, an officer or employee of the department who has
6-1 been certified for the purpose by the director may enter a motor
6-2 carrier's premises to copy or verify the correctness of documents,
6-3 including operation logs and insurance certificates.
6-4 SECTION 8. Section 15, Article 6675c, Revised Statutes, is
6-5 amended to read as follows:
6-6 Sec. 15. PAYMENT OF FEES. (a) The department may adopt
6-7 rules regarding the method of payment of a fee under this article.
6-8 The rules may authorize the use of escrow accounts described by
6-9 Subsection (b) of this section, electronic funds transfer, or a
6-10 valid credit card issued by a financial institution chartered by a
6-11 state or the federal government or by a nationally recognized
6-12 credit organization approved by the department. The rules may
6-13 require the payment of a discount or service charge for a credit
6-14 card payment in addition to the fee.
6-15 (b) The department may establish one or more escrow accounts
6-16 in the state highway fund for the prepayment of a fee under this
6-17 article. Prepaid fees and any fees established by the department
6-18 for the administration of this section shall be:
6-19 (1) administered under an agreement approved by the
6-20 department; and
6-21 (2) deposited to the credit of the state highway fund
6-22 to be appropriated only to the department for the purposes of
6-23 administering this article.
6-24 SECTION 9. Article 6675c-1, Revised Statutes, is amended by
6-25 amending Subsection (e) and adding Subsection (f) to read as
7-1 follows:
7-2 (e) The department may adopt rules regarding the method of
7-3 payment of a fee under this article. The rules may authorize the
7-4 use of an escrow account described by Subsection (f) of this
7-5 article, an electronic funds transfer, or a valid credit card
7-6 issued by a financial institution chartered by a state or the
7-7 federal government or by a nationally recognized credit
7-8 organization approved by the department. The rules may require the
7-9 payment of a discount or service charge for a credit card payment
7-10 in addition to the fee.
7-11 (f) The department may establish one or more escrow accounts
7-12 in the state highway fund for the prepayment of a fee under this
7-13 article. Prepaid fees and any fees established by the department
7-14 for the administration of this section shall be:
7-15 (1) administered under an agreement approved by the
7-16 department; and
7-17 (2) deposited to the credit of the state highway fund
7-18 to be appropriated only to the department for the purposes of
7-19 administering this article.
7-20 SECTION 10. Section 5, Article 6675d, Revised Statutes, is
7-21 amended by amending Subsection (a) and adding Subsection (c) to
7-22 read as follows:
7-23 (a) A rule adopted under this article may not:
7-24 (1) prevent an intrastate operator from operating a
7-25 vehicle up to 12 hours following eight consecutive hours off;
8-1 (2) require a person to meet the medical standards
8-2 provided in the federal motor carrier safety regulations if the
8-3 person:
8-4 (A) was regularly employed in this state as a
8-5 commercial motor vehicle operator in intrastate commerce before
8-6 August 28, 1989; and
8-7 (B) is not transporting property that requires a
8-8 hazardous material placard; [or]
8-9 (3) require a person to maintain a government form,
8-10 separate company form, operator's record of duty status, or
8-11 operator's daily log for operations within a 150-mile radius of the
8-12 normal work-reporting location if a general record of an operator's
8-13 hours of service can be compiled from:
8-14 (A) business records maintained by the owner
8-15 that provide the date, time, and location of the delivery of a
8-16 product or service; or
8-17 (B) documents required to be maintained by law,
8-18 including delivery tickets or sales invoices, that provide the date
8-19 of delivery and the quantity of merchandise delivered; or
8-20 (4) impose during the planting and harvesting seasons
8-21 maximum driving and on-duty times on operators of vehicles
8-22 transporting agricultural commodities in intrastate commerce for
8-23 agricultural purposes from the source of the commodities to the
8-24 first place of processing or storage or the distribution point for
8-25 the commodities, if the place is located within 150 air miles of
9-1 the source.
9-2 (c) In this section, "agricultural commodity" means an
9-3 agricultural, horticultural, viticultural, silvicultural, or
9-4 vegetable product, bees or honey, planting seed, cottonseed, rice,
9-5 livestock or a livestock product, or poultry or a poultry product
9-6 that is produced in this state, either in its natural form or as
9-7 processed by the producer, including woodchips.
9-8 SECTION 11. Section 6, Article 6675d, Revised Statutes, is
9-9 amended to read as follows:
9-10 Sec. 6. CERTIFICATION OF MUNICIPAL POLICE [PEACE] OFFICERS.
9-11 (a) The department shall establish procedures, including training,
9-12 for the certification of municipal police [peace] officers to
9-13 enforce this article.
9-14 (b) A police [peace] officer of any of the following
9-15 municipalities is eligible to apply for certification under this
9-16 section:
9-17 (1) a municipality with a population of 100,000 or
9-18 more;
9-19 (2) a municipality with a population of 25,000 or more
9-20 any part of which is located in a county with a population of 2.4
9-21 million or more; or
9-22 (3) a municipality any part of which is located in a
9-23 county bordering the United Mexican States.
9-24 (c) The department by rule shall establish reasonable fees
9-25 sufficient to recover from a municipality the cost of certifying
10-1 its police [peace] officers under this section.
10-2 SECTION 12. Subdivision (5), Section 1, Article 6675d,
10-3 Revised Statutes, is amended to read as follows:
10-4 (5) "Federal motor carrier safety regulation" means a
10-5 federal regulation in Subchapter B, Chapter III, Subtitle B, Title
10-6 49, Code of Federal Regulations [C.F.R. Part 382, 385, or 386 or
10-7 Parts 388-399].
10-8 SECTION 13. Subsection (a), Section 522.004, Transportation
10-9 Code, is amended to read as follows:
10-10 (a) This chapter does not apply to:
10-11 (1) a vehicle that is controlled and operated by a
10-12 farmer and:
10-13 (A) used to transport agricultural products,
10-14 farm machinery, or farm supplies to or from a farm;
10-15 (B) used within 150 miles of the person's farm;
10-16 and
10-17 (C) not used in the operations of a common or
10-18 contract motor carrier;
10-19 (2) a fire-fighting or emergency vehicle necessary to
10-20 the preservation of life or property or the execution of emergency
10-21 governmental functions, whether operated by an employee of a
10-22 political subdivision or by a volunteer fire fighter;
10-23 (3) a military vehicle, when operated for military
10-24 purposes by military personnel, including:
10-25 (A) active duty military personnel; and
11-1 (B) members of the reserves and national guard
11-2 on active duty, including personnel on full-time national guard
11-3 duty, personnel engaged in part-time training, and national guard
11-4 military technicians;
11-5 (4) a recreational vehicle that is driven for personal
11-6 use; [or]
11-7 (5) a vehicle that is owned, leased, or controlled by
11-8 an air carrier, as defined by Section 21.155, and that is driven or
11-9 operated exclusively by an employee of the air carrier only on the
11-10 premises of an airport, as defined by Section 22.001, on service
11-11 roads to which the public does not have access; or
11-12 (6) a vehicle used exclusively to transport seed
11-13 cotton modules or cotton burrs.
11-14 SECTION 14. Subdivision (1), Section 548.001, Transportation
11-15 Code, is amended to read as follows:
11-16 (1) "Commercial motor vehicle" means a self-propelled
11-17 or towed vehicle used to transport persons or property[, other than
11-18 a farm vehicle with a gross weight, registered weight, or gross
11-19 weight rating of less than 48,000 pounds,] if:
11-20 (A) the vehicle or combination of vehicles has a
11-21 gross weight, registered weight, or gross weight rating of more
11-22 than 26,000 pounds when operated in intrastate commerce;
11-23 (B) the vehicle is a farm vehicle with a gross
11-24 weight, a registered weight, or a gross weight rating of more than
11-25 48,000 pounds when operated in intrastate commerce;
12-1 (C) the vehicle is designed to transport more
12-2 than 15 passengers, including the driver; or
12-3 (D) [(C)] the vehicle is used to transport
12-4 hazardous materials in a quantity requiring placarding by a
12-5 regulation issued under the Hazardous Materials Transportation Act
12-6 (49 U.S.C. Section 1801 et seq.).
12-7 SECTION 15. Section 548.201, Transportation Code, is amended
12-8 to read as follows:
12-9 Sec. 548.201. Commercial Motor Vehicle Inspection Program.
12-10 (a) The commission shall establish an inspection program for
12-11 commercial motor vehicles that:
12-12 (1) meets the requirements of federal motor carrier
12-13 safety regulations; and
12-14 (2) requires a commercial motor vehicle registered in
12-15 this state to pass an annual inspection of all safety equipment
12-16 required by the federal motor carrier safety regulations.
12-17 (b) A program under this section also applies to any vehicle
12-18 or combination of vehicles with a gross weight rating of more than
12-19 10,000 pounds that is:
12-20 (1) operated in interstate commerce; and
12-21 (2) registered in this state.
12-22 SECTION 16. Subchapter B, Chapter 623, Transportation Code,
12-23 is amended by adding Section 623.0155 to read as follows:
12-24 Sec. 623.0155. INDEMNIFICATION FROM MOTOR CARRIER
12-25 PROHIBITED. (a) A person may not require indemnification from a
13-1 motor carrier as a condition to:
13-2 (1) the transportation of property for compensation or
13-3 hire by the carrier;
13-4 (2) entrance on property by the carrier for the
13-5 purpose of loading, unloading, or transporting property for
13-6 compensation or hire; or
13-7 (3) a service incidental to an activity described by
13-8 Subdivision (1) or (2), including storage of property.
13-9 (b) Subsection (a) does not apply to:
13-10 (1) a claim arising from damage or loss from a
13-11 wrongful or negligent act or omission of the carrier; or
13-12 (2) services or goods other than those described by
13-13 Subsection (a).
13-14 (c) In this section, "motor carrier" means a common carrier,
13-15 specialized carrier, or contract carrier that transports property
13-16 for hire. The term does not include a person who transports
13-17 property as an incidental activity of a nontransportation business
13-18 activity regardless of whether the person imposes a separate charge
13-19 for the transportation.
13-20 (d) A provision that is contrary to Subsection (a) is not
13-21 enforceable.
13-22 SECTION 17. Section 34.003, Education Code, is amended by
13-23 amending Subsections (b) and (c) and adding Subsections (d) and (e)
13-24 to read as follows:
13-25 (b) To transport students in connection with school
14-1 activities other than on school bus routes to and from school:
14-2 (1) only school buses or motor[,] buses [chartered
14-3 from motor bus companies, or district-owned buses meeting the
14-4 safety standards prescribed for vehicles used by motor bus
14-5 companies] may be used to transport 15 [10] or more students in any
14-6 one vehicle; and
14-7 (2) passenger cars or passenger vans may be used to
14-8 transport fewer than 15 [10] students.
14-9 (c) In all circumstances in which passenger cars or
14-10 passenger vans are used to transport students, the operator of the
14-11 vehicle shall ensure that the number of passengers in the vehicle
14-12 does not exceed the designed capacity of the vehicle and that each
14-13 passenger is secured by a safety belt.
14-14 (d) In this section, "passenger van" means a motor vehicle,
14-15 other than a motorcycle or passenger car, used to transport persons
14-16 and designed to transport 15 or fewer passengers, including the
14-17 driver.
14-18 (e) "Motor bus" means a vehicle designed to transport more
14-19 than 15 passengers, including the driver.
14-20 SECTION 18. Section 34.004, Education Code, is amended to
14-21 read as follows:
14-22 Sec. 34.004. STANDING CHILDREN. A school district may not
14-23 require or allow a child to stand on a school bus or passenger van
14-24 that is in motion.
14-25 SECTION 19. A reference in law to the federal Interstate
15-1 Commerce Commission means:
15-2 (1) the federal Surface Transportation Board of the
15-3 Department of Transportation, or its successor, for activities
15-4 regulated by that board; or
15-5 (2) the appropriate agency of the federal government
15-6 that regulates the activity, if any, if the activity is not
15-7 regulated under Subdivision (1) of this section.
15-8 SECTION 20. (a) In addition to the substantive changes in
15-9 law made by this Act, this Act conforms Chapter 623, Transportation
15-10 Code, to Section 28, Chapter 705, Acts of the 74th Legislature,
15-11 1995.
15-12 (b) To the extent of any conflict between this Act and
15-13 another Act of the 75th Legislature, relating to nonsubstantive
15-14 changes in enacted codes, this Act prevails.
15-15 (c) Section 28, Chapter 705, Acts of the 74th Legislature,
15-16 1995, is repealed.
15-17 SECTION 21. (a) This Act takes effect September 1, 1997.
15-18 (b) Section 623.0155, Transportation Code, as added by this
15-19 Act, does not apply to a contract or agreement entered into before
15-20 the effective date of this Act.
15-21 (c) Section 34.003, Education Code, as amended by this Act,
15-22 applies beginning with the 1997-1998 school year.
15-23 SECTION 22. The importance of this legislation and the
15-24 crowded condition of the calendars in both houses create an
15-25 emergency and an imperative public necessity that the
16-1 constitutional rule requiring bills to be read on three several
16-2 days in each house be suspended, and this rule is hereby suspended.