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.