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) Notwithstanding any [contrary] provision of any law or
4-5 regulation, a motor carrier which is required to register under
4-6 Section 3 of this article and whose primary business is
4-7 transportation for compensation or hire, and operating between two
4-8 or more incorporated cities, towns, or villages, shall protect its
4-9 employees by obtaining workers' compensation insurance coverage as
4-10 defined under the Texas Workers' Compensation Act (Subtitle A,
4-11 Title 5, Labor Code) or accidental insurance coverage in an amount
4-12 fixed by the department [Texas Department of Transportation] from a
4-13 reliable insurance company or companies authorized to write such
4-14 policies in this state approved by the department. The amount
4-15 fixed by the department may not be less than $300,000 for medical
4-16 expenses for no less than 104 weeks, $100,000 for accidental death
4-17 and dismemberment, 70 percent of the employee's pre-injury income
4-18 for no less than 104 weeks when compensating for loss of income,
4-19 and $500 for the maximum weekly benefit.
4-20 SECTION 5. Subsection (a), Section 6, Article 6675c, Revised
4-21 Statutes, is amended to read as follows:
4-22 (a) The department may impose an administrative penalty
4-23 against a motor carrier required to register under this article who
4-24 violates a provision of Section 3, 3A, 4, 5, 8, or 12 of this
4-25 article or a rule or order adopted under those sections. The
5-1 department shall designate one or more employees to investigate and
5-2 administer penalties under this section.
5-3 SECTION 6. Subsection (a), Section 7, Article 6675c, Revised
5-4 Statutes, is amended to read as follows:
5-5 (a) The department may suspend or revoke a registration
5-6 issued under this article if:
5-7 (1) a motor carrier fails to maintain insurance as
5-8 required by Section 4(a) or (b) of this article;
5-9 (2) a motor carrier fails to keep proof of insurance
5-10 in the cab of each vehicle as required by Section 4(e) of this
5-11 article;
5-12 (3) a motor carrier fails to register a vehicle
5-13 requiring registration; [or]
5-14 (4) a motor carrier knowingly provides false
5-15 information on any form filed with the department under this
5-16 section; or
5-17 (5) a motor carrier violates a rule adopted under
5-18 Section 3A of this article.
5-19 SECTION 7. Subsection (a), Section 13, Article 6675c,
5-20 Revised Statutes, is amended to read as follows:
5-21 (a) To investigate an alleged violation of Section 3, 3A, or
5-22 4 of this article, an officer or employee of the department who has
5-23 been certified for the purpose by the director may enter a motor
5-24 carrier's premises to copy or verify the correctness of documents,
5-25 including operation logs and insurance certificates.
6-1 SECTION 8. Section 15, Article 6675c, Revised Statutes, is
6-2 amended to read as follows:
6-3 Sec. 15. PAYMENT OF FEES. (a) The department may adopt
6-4 rules regarding the method of payment of a fee under this article.
6-5 The rules may authorize the use of escrow accounts described by
6-6 Subsection (b) of this section, electronic funds transfer, or a
6-7 valid credit card issued by a financial institution chartered by a
6-8 state or the federal government or by a nationally recognized
6-9 credit organization approved by the department. The rules may
6-10 require the payment of a discount or service charge for a credit
6-11 card payment in addition to the fee.
6-12 (b) The department may establish one or more escrow accounts
6-13 in the state highway fund for the prepayment of a fee under this
6-14 article. Prepaid fees and any fees established by the department
6-15 for the administration of this section shall be:
6-16 (1) administered under an agreement approved by the
6-17 department; and
6-18 (2) deposited to the credit of the state highway fund
6-19 to be appropriated only to the department for the purposes of
6-20 administering this article.
6-21 SECTION 9. Article 6675c-1, Revised Statutes, is amended by
6-22 amending Subsection (e) and adding Subsection (f) to read as
6-23 follows:
6-24 (e) The department may adopt rules regarding the method of
6-25 payment of a fee under this article. The rules may authorize the
7-1 use of an escrow account described by Subsection (f) of this
7-2 article, an electronic funds transfer, or a valid credit card
7-3 issued by a financial institution chartered by a state or the
7-4 federal government or by a nationally recognized credit
7-5 organization approved by the department. The rules may require the
7-6 payment of a discount or service charge for a credit card payment
7-7 in addition to the fee.
7-8 (f) The department may establish one or more escrow accounts
7-9 in the state highway fund for the prepayment of a fee under this
7-10 article. Prepaid fees and any fees established by the department
7-11 for the administration of this section shall be:
7-12 (1) administered under an agreement approved by the
7-13 department; and
7-14 (2) deposited to the credit of the state highway fund
7-15 to be appropriated only to the department for the purposes of
7-16 administering this article.
7-17 SECTION 10. Section 5, Article 6675d, Revised Statutes, is
7-18 amended by amending Subsection (a) and adding Subsection (c) to
7-19 read as follows:
7-20 (a) A rule adopted under this article may not:
7-21 (1) prevent an intrastate operator from operating a
7-22 vehicle up to 12 hours following eight consecutive hours off;
7-23 (2) require a person to meet the medical standards
7-24 provided in the federal motor carrier safety regulations if the
7-25 person:
8-1 (A) was regularly employed in this state as a
8-2 commercial motor vehicle operator in intrastate commerce before
8-3 August 28, 1989; and
8-4 (B) is not transporting property that requires a
8-5 hazardous material placard; [or]
8-6 (3) require a person to maintain a government form,
8-7 separate company form, operator's record of duty status, or
8-8 operator's daily log for operations within a 150-mile radius of the
8-9 normal work-reporting location if a general record of an operator's
8-10 hours of service can be compiled from:
8-11 (A) business records maintained by the owner
8-12 that provide the date, time, and location of the delivery of a
8-13 product or service; or
8-14 (B) documents required to be maintained by law,
8-15 including delivery tickets or sales invoices, that provide the date
8-16 of delivery and the quantity of merchandise delivered; or
8-17 (4) impose during the planting and harvesting seasons
8-18 maximum driving and on-duty times on operators of vehicles
8-19 transporting agricultural commodities in intrastate commerce for
8-20 agricultural purposes from the source of the commodities to the
8-21 first place of processing or storage or the distribution point for
8-22 the commodities, if the place is located within 150 air miles of
8-23 the source.
8-24 (c) In this section, "agricultural commodity" means an
8-25 agricultural, horticultural, viticultural, silvicultural, or
9-1 vegetable product, bees or honey, planting seed, cottonseed, rice,
9-2 livestock or a livestock product, or poultry or a poultry product
9-3 that is produced in this state, either in its natural form or as
9-4 processed by the producer, including woodchips.
9-5 SECTION 11. Section 6, Article 6675d, Revised Statutes, is
9-6 amended to read as follows:
9-7 Sec. 6. CERTIFICATION OF MUNICIPAL POLICE [PEACE] OFFICERS.
9-8 (a) The department shall establish procedures, including training,
9-9 for the certification of municipal police [peace] officers to
9-10 enforce this article.
9-11 (b) A police [peace] officer of any of the following
9-12 municipalities is eligible to apply for certification under this
9-13 section:
9-14 (1) a municipality with a population of 100,000 or
9-15 more;
9-16 (2) a municipality with a population of 25,000 or more
9-17 any part of which is located in a county with a population of 2.4
9-18 million or more; or
9-19 (3) a municipality any part of which is located in a
9-20 county bordering the United Mexican States.
9-21 (c) The department by rule shall establish reasonable fees
9-22 sufficient to recover from a municipality the cost of certifying
9-23 its police [peace] officers under this section.
9-24 SECTION 12. Subdivision (5), Section 1, Article 6675d,
9-25 Revised Statutes, is amended to read as follows:
10-1 (5) "Federal motor carrier safety regulation" means a
10-2 federal regulation in Subchapter B, Chapter III, Subtitle B, Title
10-3 49, Code of Federal Regulations [C.F.R. Part 382, 385, or 386 or
10-4 Parts 388-399].
10-5 SECTION 13. Subsection (a), Section 522.004, Transportation
10-6 Code, is amended to read as follows:
10-7 (a) This chapter does not apply to:
10-8 (1) a vehicle that is controlled and operated by a
10-9 farmer and:
10-10 (A) used to transport agricultural products,
10-11 farm machinery, or farm supplies to or from a farm;
10-12 (B) used within 150 miles of the person's farm;
10-13 and
10-14 (C) not used in the operations of a common or
10-15 contract motor carrier;
10-16 (2) a fire-fighting or emergency vehicle necessary to
10-17 the preservation of life or property or the execution of emergency
10-18 governmental functions, whether operated by an employee of a
10-19 political subdivision or by a volunteer fire fighter;
10-20 (3) a military vehicle, when operated for military
10-21 purposes by military personnel, including:
10-22 (A) active duty military personnel; and
10-23 (B) members of the reserves and national guard
10-24 on active duty, including personnel on full-time national guard
10-25 duty, personnel engaged in part-time training, and national guard
11-1 military technicians;
11-2 (4) a recreational vehicle that is driven for personal
11-3 use; [or]
11-4 (5) a vehicle that is owned, leased, or controlled by
11-5 an air carrier, as defined by Section 21.155, and that is driven or
11-6 operated exclusively by an employee of the air carrier only on the
11-7 premises of an airport, as defined by Section 22.001, on service
11-8 roads to which the public does not have access; or
11-9 (6) a vehicle used exclusively to transport seed
11-10 cotton modules or cotton burrs.
11-11 SECTION 14. Subchapter A, Chapter 522, Transportation Code,
11-12 is amended by adding Section 522.007 to read as follows:
11-13 Sec. 522.007. EXEMPTION FOR NEIGHBORING STATES. (a) The
11-14 public safety director shall enter negotiations with an appropriate
11-15 person or entity of a state bordering this state for the purpose of
11-16 applying the exemption contained in Section 522.004(a)(1) to
11-17 residents of that state.
11-18 (b) The public safety director may enter an agreement to
11-19 apply the exemption contained in Section 522.004(a)(1) to residents
11-20 of a bordering state only if that state extends a similar exemption
11-21 to residents of this state.
11-22 SECTION 15. Subsection (a), Section 545.253, Transportation
11-23 Code, is amended to read as follows:
11-24 (a) Except as provided by Subsection (c), the operator of a
11-25 motor bus carrying passengers for hire [or of a school bus carrying
12-1 a schoolchild], before crossing a railroad grade crossing:
12-2 (1) shall stop the vehicle not closer than 15 feet or
12-3 farther than 50 feet from the nearest rail of the railroad;
12-4 (2) while stopped, shall listen and look in both
12-5 directions along the track for an approaching train and signals
12-6 indicating the approach of a train; and
12-7 (3) may not proceed until it is safe to do so.
12-8 SECTION 16. Subchapter F, Chapter 545, Transportation Code,
12-9 is amended by adding Section 545.2535 to read as follows:
12-10 Sec. 545.2535. SCHOOL BUSES TO STOP AT ALL RAILROAD GRADE
12-11 CROSSINGS. (a) Except as provided by Subsection (c), the operator
12-12 of a school bus, before crossing a track at a railroad grade
12-13 crossing:
12-14 (1) shall stop the vehicle not closer than 15 feet or
12-15 farther than 50 feet from the track;
12-16 (2) while stopped, shall listen and look in both
12-17 directions along the track for an approaching train and signals
12-18 indicating the approach of a train; and
12-19 (3) may not proceed until it is safe to do so.
12-20 (b) After stopping as required by Subsection (a), the
12-21 operator may proceed in a gear that permits the vehicle to complete
12-22 the crossing without a change of gears. The operator may not shift
12-23 gears while crossing the track.
12-24 (c) An operator is not required to stop at:
12-25 (1) an abandoned railroad grade crossing that is
13-1 marked with a sign reading "tracks out of service"; or
13-2 (2) an industrial or spur line railroad grade crossing
13-3 that is marked with a sign reading "exempt."
13-4 (d) A sign under Subsection (c) may be erected only by or
13-5 with the consent of the appropriate state or local governmental
13-6 official.
13-7 SECTION 17. Subdivision (1), Section 548.001, Transportation
13-8 Code, is amended to read as follows:
13-9 (1) "Commercial motor vehicle" means a self-propelled
13-10 or towed vehicle used to transport persons or property[, other than
13-11 a farm vehicle with a gross weight, registered weight, or gross
13-12 weight rating of less than 48,000 pounds,] if:
13-13 (A) the vehicle or combination of vehicles has a
13-14 gross weight, registered weight, or gross weight rating of more
13-15 than 26,000 pounds;
13-16 (B) the vehicle is a farm vehicle with a gross
13-17 weight, a registered weight, or a gross weight rating of more than
13-18 48,000 pounds;
13-19 (C) the vehicle is designed to transport more
13-20 than 15 passengers, including the driver; or
13-21 (D) [(C)] the vehicle is used to transport
13-22 hazardous materials in a quantity requiring placarding by a
13-23 regulation issued under the Hazardous Materials Transportation Act
13-24 (49 U.S.C. Section 1801 et seq.).
13-25 SECTION 18. Section 548.201, Transportation Code, is amended
14-1 to read as follows:
14-2 Sec. 548.201. Commercial Motor Vehicle Inspection Program.
14-3 (a) The commission shall establish an inspection program for
14-4 commercial motor vehicles that:
14-5 (1) meets the requirements of federal motor carrier
14-6 safety regulations; and
14-7 (2) requires a commercial motor vehicle registered in
14-8 this state to pass an annual inspection of all safety equipment
14-9 required by the federal motor carrier safety regulations.
14-10 (b) A program under this section also applies to any vehicle
14-11 or combination of vehicles with a gross weight rating of more than
14-12 10,000 pounds that is:
14-13 (1) operated in interstate commerce; and
14-14 (2) registered in this state.
14-15 SECTION 19. Subchapter B, Chapter 623, Transportation Code,
14-16 is amended by adding Section 623.0155 to read as follows:
14-17 Sec. 623.0155. INDEMNIFICATION FROM MOTOR CARRIER
14-18 PROHIBITED. (a) A person may not require indemnification from a
14-19 motor carrier as a condition to:
14-20 (1) the transportation of property for compensation or
14-21 hire by the carrier;
14-22 (2) entrance on property by the carrier for the
14-23 purpose of loading, unloading, or transporting property for
14-24 compensation or hire; or
14-25 (3) a service incidental to an activity described by
15-1 Subdivision (1) or (2), including storage of property.
15-2 (b) Subsection (a) does not apply to:
15-3 (1) a claim arising from damage or loss from a
15-4 wrongful or negligent act or omission of the carrier; or
15-5 (2) services or goods other than those described by
15-6 Subsection (a).
15-7 (c) In this section, "motor carrier" means a common carrier,
15-8 specialized carrier, or contract carrier that transports property
15-9 for hire. The term does not include a person who transports
15-10 property as an incidental activity of a nontransportation business
15-11 activity regardless of whether the person imposes a separate charge
15-12 for the transportation.
15-13 (d) A provision that is contrary to Subsection (a) is not
15-14 enforceable.
15-15 SECTION 20. Section 34.003, Education Code, is amended to
15-16 read as follows:
15-17 Sec. 34.003. OPERATION OF SCHOOL BUSES OR MASS TRANSIT
15-18 AUTHORITY VEHICLES. (a) School buses or mass transit authority
15-19 vehicles shall be used for the transportation of students to and
15-20 from schools on school bus routes having 10 or more students. On
15-21 those school bus routes having fewer than 10 students, passenger
15-22 cars may be used for the transportation of students to and from
15-23 school.
15-24 (b) To transport students in connection with school
15-25 activities other than on school bus routes to and from school:
16-1 (1) only school buses, mass transit authority
16-2 vehicles, or motor[,] buses [chartered from motor bus companies, or
16-3 district-owned buses meeting the safety standards prescribed for
16-4 vehicles used by motor bus companies] may be used to transport 15
16-5 [10] or more students in any one vehicle; and
16-6 (2) passenger cars or passenger vans may be used to
16-7 transport fewer than 15 [10] students.
16-8 (c) In all circumstances in which passenger cars or
16-9 passenger vans are used to transport students, the operator of the
16-10 vehicle shall ensure that the number of passengers in the vehicle
16-11 does not exceed the designed capacity of the vehicle and that each
16-12 passenger is secured by a safety belt.
16-13 (d) In this section, "passenger van" means a motor vehicle,
16-14 other than a motorcycle or passenger car, used to transport persons
16-15 and designed to transport 15 or fewer passengers, including the
16-16 driver.
16-17 (e) "Motor bus" means a vehicle designed to transport more
16-18 than 15 passengers, including the driver.
16-19 SECTION 21. Section 34.004, Education Code, is amended to
16-20 read as follows:
16-21 Sec. 34.004. STANDING CHILDREN. A school district may not
16-22 require or allow a child to stand on a school bus or passenger van
16-23 that is in motion.
16-24 SECTION 22. Subsection (a), Section 34.008, Education Code,
16-25 is amended to read as follows:
17-1 (a) A board of county school trustees or school district
17-2 board of trustees may contract with a transit authority or a
17-3 commercial transportation company for all or any part of a
17-4 district's public school transportation if the authority or
17-5 company:
17-6 (1) requires its school bus drivers to have the
17-7 qualifications required by and to be certified in accordance with
17-8 standards established by the Department of Public Safety; and
17-9 (2) uses only those school motor vehicles or mass
17-10 transit authority vehicles in transporting public school students
17-11 that satisfy safety requirements imposed by law on school motor
17-12 vehicles operated by public school transportation systems.
17-13 SECTION 23. A reference in law to the federal Interstate
17-14 Commerce Commission means:
17-15 (1) the federal Surface Transportation Board of the
17-16 Department of Transportation, or its successor, for activities
17-17 regulated by that board; or
17-18 (2) the appropriate agency of the federal government
17-19 that regulates the activity, if any, if the activity is not
17-20 regulated under Subdivision (1) of this section.
17-21 SECTION 24. (a) In addition to the substantive changes in
17-22 law made by this Act, this Act conforms Chapter 623, Transportation
17-23 Code, to Section 28, Chapter 705, Acts of the 74th Legislature,
17-24 1995.
17-25 (b) To the extent of any conflict between this Act and
18-1 another Act of the 75th Legislature, relating to nonsubstantive
18-2 changes in enacted codes, this Act prevails.
18-3 (c) Section 28, Chapter 705, Acts of the 74th Legislature,
18-4 1995, is repealed.
18-5 SECTION 25. (a) This Act takes effect September 1, 1997.
18-6 (b) Section 623.0155, Transportation Code, as added by this
18-7 Act, does not apply to a contract or agreement entered into before
18-8 the effective date of this Act.
18-9 (c) Section 34.003, Education Code, as amended by this Act,
18-10 applies beginning with the 1997-1998 school year.
18-11 SECTION 26. The importance of this legislation and the
18-12 crowded condition of the calendars in both houses create an
18-13 emergency and an imperative public necessity that the
18-14 constitutional rule requiring bills to be read on three several
18-15 days in each house be suspended, and this rule is hereby suspended.
S.B. No. 1486
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1486 passed the Senate on
April 24, 1997, by a viva-voce vote; May 31, 1997, Senate refused
to concur in House amendments and requested appointment of
Conference Committee; May 31, 1997, House granted request of the
Senate; June 1, 1997, Senate adopted Conference Committee Report by
a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1486 passed the House, with
amendments, on May 28, 1997, by a non-record vote; May 31, 1997,
House granted request of the Senate for appointment of Conference
Committee; June 1, 1997, House adopted Conference Committee Report
by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor