By Bivins                                       S.B. No. 1486

      75R4127 DRH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of motor carriers.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 2, Article 6675c, Revised Statutes, is

 1-5     amended to read as follows:

 1-6           Sec. 2.  EXEMPTIONS.  This article does not apply to:

 1-7                 (1)  a motor vehicle registered under the single state

 1-8     registration system established under 49 U.S.C. Section 11506(c)

 1-9     when operating exclusively in interstate or international commerce;

1-10                 (2)  a motor vehicle registered as a cotton vehicle

1-11     under Section 502.277, Transportation Code [5o, Chapter 88, General

1-12     Laws, Acts of the 41st Legislature, 2nd Called Session, 1929

1-13     (Article 6675a-5o, Vernon's Texas Civil Statutes)]; [or]

1-14                 (3)  a motor vehicle the department by rule exempts

1-15     because the vehicle is subject to comparable registration and a

1-16     comparable safety program administered by another agency;

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 transporting liquor under a private

1-23     carrier permit issued under Chapter 42, Alcoholic Beverage Code.

1-24           SECTION 2.  Section 3, Article 6675c, Revised Statutes, is

 2-1     amended by adding Subsections (l) and (m) to read as follows:

 2-2           (l)  The department may vary the registration period under

 2-3     this section by adopting rules that provide for:

 2-4                 (1)  an optional two-year registration; and

 2-5                 (2)  the issuance of a temporary registration permit

 2-6     that is valid for less than one year.

 2-7           (m)  A foreign-based international motor carrier required to

 2-8     register under this article or registered under Article 6675c-1,

 2-9     Revised Statutes, may not transport persons or cargo in intrastate

2-10     commerce in this state.

2-11           SECTION 3.  Article 6675c, Revised Statutes, is amended by

2-12     adding Section 3A to read as follows:

2-13           Sec. 3A.  VEHICLES OPERATED UNDER SHORT-TERM LEASE AND

2-14     SUBSTITUTE VEHICLES.  (a)  In this section:

2-15                 (1)  "Leasing business" means a person that leases

2-16     vehicles requiring registration.

2-17                 (2)  "Short-term lease" means a lease of 30 days or

2-18     less.

2-19           (b)  A vehicle requiring registration operated under a

2-20     short-term lease is exempt from the normal registration

2-21     requirements of Section 3 of this article.  The department shall

2-22     adopt rules providing for the operation of these vehicles under

2-23     flexible procedures.  A vehicle requiring registration operated

2-24     under a short-term lease is not required to carry a cab card or

2-25     other proof of registration if a copy of the lease agreement is

2-26     carried in the cab of the vehicle.

2-27           (c)  A motor carrier may operate a substitute vehicle without

 3-1     notifying the department in advance if the substitute is a

 3-2     temporary replacement because of maintenance, repair, or other

 3-3     unavailability of the vehicle originally leased.  A substitute

 3-4     vehicle is not required to carry a cab card or other proof of

 3-5     registration if a copy of the lease agreement for the vehicle

 3-6     originally leased is carried in the cab of the substitute.

 3-7           (d)  Instead of the registration procedures described by

 3-8     Section 3 of this article, the department shall adopt rules that

 3-9     allow a leasing business to report annually  to the department on

3-10     the number of vehicles requiring registration that the leasing

3-11     business actually operated in the previous 12 months.  The rules

3-12     may not require the vehicles operated to be described with

3-13     particularity.  The registration fee for each vehicle operated may

3-14     be paid at the time the report is filed.

3-15           (e)  A leasing business that registers its vehicles under

3-16     Subsection (d) of this section may comply with the liability

3-17     insurance requirements of Section 4 of this article by filing proof

3-18     of a contingency liability policy as determined by the department.

3-19           (f)  Rules adopted by the department under this section must

3-20     be designed to avoid requiring a vehicle to be registered more than

3-21     once in a calendar year and may allow a leasing business to

3-22     register a vehicle on behalf of a lessee.

3-23           SECTION 4.  Section 4(j), Article 6675c, Revised Statutes, is

3-24     amended to read as follows:

3-25           (j)  The department may not require a motor carrier required

3-26     to register under this article to carry workers' compensation or

3-27     similar insurance coverage.  Notwithstanding any [contrary]

 4-1     provision of any law or regulation, including Section 406.096,

 4-2     Labor Code, a motor carrier required to register under this article

 4-3     may provide health and accident coverage for its employees instead

 4-4     of workers' compensation insurance for any contract with this state

 4-5     or a political subdivision of this state [shall protect its

 4-6     employees by obtaining workers' compensation insurance coverage as

 4-7     defined under the Texas Workers' Compensation Act (Subtitle A,

 4-8     Title 5, Labor Code) or accidental insurance coverage in an amount

 4-9     fixed by the Texas Department of Transportation from a  reliable

4-10     insurance company or companies authorized to write such policies in

4-11     this state approved by the department.  The amount fixed by the

4-12     department may not be less than $300,000 for medical expenses for

4-13     no less than 104 weeks, $100,000 for accidental death and

4-14     dismemberment, 70 percent of the employee's pre-injury income for

4-15     no less than 104 weeks when compensating for loss of income, and

4-16     $500 for the maximum weekly benefit].

4-17           SECTION 5.  Section 6(a), Article 6675c, Revised Statutes, is

4-18     amended to read as follows:

4-19           (a)  The department may impose an administrative penalty

4-20     against a motor carrier required to register under this article who

4-21     violates a provision of Section 3, 3A, 4, 5, 8, or 12 of this

4-22     article or a rule or order adopted under those sections.  The

4-23     department shall designate one or more employees to investigate and

4-24     administer penalties under this section.

4-25           SECTION 6.  Section 7(a), Article 6675c, Revised Statutes, is

4-26     amended to read as follows:

4-27           (a)  The department may suspend or revoke a registration

 5-1     issued under this article if:

 5-2                 (1)  a motor carrier fails to maintain insurance as

 5-3     required by Section 4(a) or (b) of this article;

 5-4                 (2)  a motor carrier fails to keep proof of insurance

 5-5     in the cab of each vehicle as required by Section 4(e) of this

 5-6     article;

 5-7                 (3)  a motor carrier fails to register a vehicle

 5-8     requiring registration; [or]

 5-9                 (4)  a motor carrier knowingly provides false

5-10     information on any form filed with the department under this

5-11     section; or

5-12                 (5)  a motor carrier violates a rule adopted under

5-13     Section 3A.

5-14           SECTION 7.  Section 13(a), Article 6675c, Revised Statutes,

5-15     is amended to read as follows:

5-16           (a)  To investigate an alleged violation of Section 3, 3A, or

5-17     4 of this article, an officer or employee of the department who has

5-18     been certified for the purpose by the director may enter a motor

5-19     carrier's premises to copy or verify the correctness of documents,

5-20     including operation logs and insurance certificates.

5-21           SECTION 8.  Section 15, Article 6675c, Revised Statutes, is

5-22     amended to read as follows:

5-23           Sec. 15.  PAYMENT OF FEES.  (a)  The department may adopt

5-24     rules regarding the method of payment of a fee under this article.

5-25     The rules may authorize the use of escrow accounts described by

5-26     Subsection (b) of this section, electronic funds transfer, or a

5-27     valid credit card issued by a financial institution chartered by a

 6-1     state or the federal government or by a nationally recognized

 6-2     credit organization approved by the department.  The rules may

 6-3     require the payment of a discount or service charge for a credit

 6-4     card payment in addition to the fee.

 6-5           (b)  The department may establish one or more escrow accounts

 6-6     in the state highway fund for the prepayment of a fee under this

 6-7     article.  Prepaid fees and any fees established by the department

 6-8     for the administration of this section shall be:

 6-9                 (1)  administered under an agreement approved by the

6-10     department; and

6-11                 (2)  deposited to the credit of the state highway fund

6-12     to be appropriated only to the department for the purposes of

6-13     administering this article.

6-14           SECTION 9.  Article 6675c-1, Revised Statutes, is amended by

6-15     amending Subsection (e) and adding Subsection (f) to read as

6-16     follows:

6-17           (e)  The department may adopt rules regarding the method of

6-18     payment of a fee under this article.  The rules may authorize the

6-19     use of an escrow account described by Subsection (f), an electronic

6-20     funds transfer, or a valid credit card issued by a financial

6-21     institution chartered by a state or the federal government or by a

6-22     nationally recognized credit organization approved by the

6-23     department.  The rules may require the payment of a discount or

6-24     service charge for a credit card payment in addition to the fee.

6-25           (f)  The department may establish one or more escrow accounts

6-26     in the state highway fund for the prepayment of a fee under this

6-27     article.  Prepaid fees and any fees established by the department

 7-1     for the administration of this section shall be:

 7-2                 (1)  administered under an agreement approved by the

 7-3     department; and

 7-4                 (2)  deposited to the credit of the state highway fund

 7-5     to be appropriated only to the department for the purposes of

 7-6     administering this article.

 7-7           SECTION 10.  Section 6, Article 6675d, Revised Statutes, is

 7-8     amended to read as follows:

 7-9           Sec. 6.  CERTIFICATION OF MUNICIPAL POLICE [PEACE] OFFICERS.

7-10     (a)  The department shall establish procedures, including training,

7-11     for the certification of municipal police [peace] officers to

7-12     enforce this article.

7-13           (b)  A police [peace] officer of any of the following

7-14     municipalities is eligible to apply for certification under this

7-15     section:

7-16                 (1)  a municipality with a population of 100,000 or

7-17     more;

7-18                 (2)  a municipality with a population of 25,000 or more

7-19     any part of which is located in a county with a population of 2.4

7-20     million or more; or

7-21                 (3)  a municipality any part of which is located in a

7-22     county bordering the United Mexican States.

7-23           (c)  The department by rule shall establish reasonable fees

7-24     sufficient to recover from a municipality the cost of certifying

7-25     its police [peace] officers under this section.

7-26           SECTION 11.  Section 1(5), Article 6675d, Revised Statutes,

7-27     is amended to read as follows:

 8-1                 (5)  "Federal motor carrier safety regulation" means a

 8-2     federal regulation in Subchapter B, Chapter III, Subtitle B, 49

 8-3     C.F.R. [Part 382, 385, or 386 or Parts 388-399].

 8-4           SECTION 12.  Section 548.001(1), Transportation Code, is

 8-5     amended to read as follows:

 8-6                 (1)  "Commercial motor vehicle" means a self-propelled

 8-7     or towed vehicle used to transport persons or property [, other

 8-8     than a farm vehicle with a gross weight, registered weight, or

 8-9     gross weight rating of less than 48,000 pounds,] if:

8-10                       (A)  the vehicle or combination of vehicles has a

8-11     gross weight, registered weight, or gross weight rating of more

8-12     than 26,000 pounds when operated in intrastate commerce;

8-13                       (B)  the vehicle is a farm vehicle with a gross

8-14     weight, a registered weight, or gross weight rating of more than

8-15     48,000 pounds when operated in intrastate commerce;

8-16                       (C)  the vehicle or combination of vehicles has a

8-17     gross vehicle weight rating of more than 10,000 pounds when

8-18     operated in interstate commerce;

8-19                       (D)  the vehicle is designed to transport more

8-20     than 15 passengers, including the driver;

8-21                       (E)  the vehicle is operated for compensation or

8-22     hire and is designed to transport more than six but fewer than 16

8-23     persons, including the driver; or

8-24                       (F) [(C)]  the vehicle is used to transport

8-25     hazardous materials in a quantity requiring placarding by a

8-26     regulation issued under the Hazardous Materials Transportation Act

8-27     (49 U.S.C. Section 1801 et seq.).

 9-1           SECTION 13.  Section 548.002, Transportation Code, is amended

 9-2     to read as follows:

 9-3           Sec. 548.002.  DEPARTMENT RULES.  (a)  The department may

 9-4     adopt rules to administer and enforce this chapter.

 9-5           (b)  The department by rule may exempt a vehicle described by

 9-6     Section 548.001(1)(E) from regulation under this chapter if the

 9-7     department determines that regulation of that type of vehicle is

 9-8     unnecessary.

 9-9           SECTION 14.  Subchapter B, Chapter 623, Transportation Code,

9-10     is amended by adding Section 623.0155 to read as follows:

9-11           Sec. 623.0155.  INDEMNIFICATION FROM MOTOR CARRIER

9-12     PROHIBITED.  (a)  A person may not require indemnification from a

9-13     motor carrier as a condition to:

9-14                 (1)  the transportation of property for compensation or

9-15     hire by the carrier;

9-16                 (2)  entrance on property by the carrier for the

9-17     purpose of loading, unloading, or transporting property for

9-18     compensation or hire; or

9-19                 (3)  a service incidental to an activity described by

9-20     Subsection (1) or (2), including storage of property.

9-21           (b)  Subsection (a) does not apply to:

9-22                 (1)  a claim arising from damage or loss from a

9-23     wrongful or negligent act or omission of the carrier; or

9-24                 (2)  services or goods other than those described by

9-25     Subsection (a).

9-26           (c)  In this section, "motor carrier" means a common carrier,

9-27     specialized carrier, or contract carrier that transports property

 10-1    for hire.  The term does not include a person who transports

 10-2    property as an incidental activity of a nontransportation business

 10-3    activity regardless of whether the person imposes a separate charge

 10-4    for the transportation.

 10-5          (d)  A provision that is contrary to Subsection (a) is not

 10-6    enforceable.

 10-7          SECTION 15.  A reference in law to the federal Interstate

 10-8    Commerce Commission means:

 10-9                (1)  the federal Surface Transportation Board of the

10-10    Department of Transportation, or its successor, for activities

10-11    regulated by that board; or

10-12                (2)  the appropriate agency of the federal government

10-13    that regulates the activity, if any, if the activity is not

10-14    regulated under Subdivision (1) of this section.

10-15          SECTION 16.  (a)  In addition to the substantive changes in

10-16    law made by this Act, this Act conforms Chapter 623, Transportation

10-17    Code, to Section 28, Chapter 705, Acts of the 74th Legislature,

10-18    1995.

10-19          (b)  To the extent of any conflict between this Act and

10-20    another Act of the 75th Legislature, relating to nonsubstantive

10-21    changes in enacted codes, this Act prevails.

10-22          (c)  Section 28, Chapter 705, Acts of the 74th Legislature,

10-23    1995, is repealed.

10-24          SECTION 17.  This Act takes effect September 1, 1997.

10-25          SECTION 18.  The importance of this legislation and the

10-26    crowded condition of the calendars in both houses create an

10-27    emergency and an imperative public necessity that the

 11-1    constitutional rule requiring bills to be read on three several

 11-2    days in each house be suspended, and this rule is hereby suspended.