1-1 By: Bivins S.B. No. 1486
1-2 (In the Senate - Filed March 13, 1997; March 20, 1997, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 15, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 13, Nays 0; April 15, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1486 By: Galloway
1-8 AN ACT
1-9 relating to the regulation of motor carriers.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 2, Article 6675c, Revised Statutes, is
1-12 amended to read as follows:
1-13 Sec. 2. EXEMPTIONS. This article does not apply to:
1-14 (1) a motor vehicle registered under the single state
1-15 registration system established under 49 U.S.C. Section 11506(c)
1-16 when operating exclusively in interstate or international commerce;
1-17 (2) a motor vehicle registered as a cotton vehicle
1-18 under Section 502.277, Transportation Code [5o, Chapter 88, General
1-19 Laws, Acts of the 41st Legislature, 2nd Called Session, 1929
1-20 (Article 6675a-5o, Vernon's Texas Civil Statutes)]; [or]
1-21 (3) a motor vehicle the department by rule exempts
1-22 because the vehicle is subject to comparable registration and a
1-23 comparable safety program administered by another governmental
1-24 entity;
1-25 (4) a motor vehicle used to transport passengers
1-26 operated by an entity whose primary function is not the
1-27 transportation of passengers, such as a vehicle operated by a
1-28 hotel, day-care center, public or private school, nursing home,
1-29 governmental entity, or similar organization; or
1-30 (5) a vehicle operating under a private carrier permit
1-31 issued under Chapter 42, Alcoholic Beverage Code [agency].
1-32 SECTION 2. Section 3, Article 6675c, Revised Statutes, is
1-33 amended by adding Subsections (l) and (m) to read as follows:
1-34 (l) The department may vary the registration period under
1-35 this section by adopting rules that provide for:
1-36 (1) an optional two-year registration; and
1-37 (2) the issuance of a temporary registration permit
1-38 that is valid for less than one year.
1-39 (m) A foreign-based international motor carrier required to
1-40 register under this article or registered under Article 6675c-1,
1-41 Revised Statutes, may not transport persons or cargo in intrastate
1-42 commerce in this state. A person may not assist a foreign-based
1-43 international motor carrier in violating this subsection.
1-44 SECTION 3. Article 6675c, Revised Statutes, is amended by
1-45 adding Section 3A to read as follows:
1-46 Sec. 3A. VEHICLES OPERATED UNDER SHORT-TERM LEASE AND
1-47 SUBSTITUTE VEHICLES. (a) In this section:
1-48 (1) "Leasing business" means a person that leases
1-49 vehicles requiring registration.
1-50 (2) "Short-term lease" means a lease of 30 days or
1-51 less.
1-52 (b) A vehicle requiring registration operated under a
1-53 short-term lease is exempt from the normal registration
1-54 requirements of Section 3 of this article. The department shall
1-55 adopt rules providing for the operation of these vehicles under
1-56 flexible procedures. A vehicle requiring registration operated
1-57 under a short-term lease is not required to carry a cab card or
1-58 other proof of registration if a copy of the lease agreement is
1-59 carried in the cab of the vehicle.
1-60 (c) A motor carrier may operate a substitute vehicle without
1-61 notifying the department in advance if the substitute is a
1-62 temporary replacement because of maintenance, repair, or other
1-63 unavailability of the vehicle originally leased. A substitute
1-64 vehicle is not required to carry a cab card or other proof of
2-1 registration if a copy of the lease agreement for the vehicle
2-2 originally leased is carried in the cab of the substitute.
2-3 (d) Instead of the registration procedures described by
2-4 Section 3 of this article, the department shall adopt rules that
2-5 allow a leasing business to report annually to the department on
2-6 the number of vehicles requiring registration that the leasing
2-7 business actually operated in the previous 12 months. The rules
2-8 may not require the vehicles operated to be described with
2-9 particularity. The registration fee for each vehicle operated may
2-10 be paid at the time the report is filed.
2-11 (e) A leasing business that registers its vehicles under
2-12 Subsection (d) of this section may comply with the liability
2-13 insurance requirements of Section 4 of this article by filing proof
2-14 of a contingency liability policy as determined by the department.
2-15 (f) Rules adopted by the department under this section must
2-16 be designed to avoid requiring a vehicle to be registered more than
2-17 once in a calendar year and may allow a leasing business to
2-18 register a vehicle on behalf of a lessee.
2-19 SECTION 4. Subsection (j), Section 4, Article 6675c, Revised
2-20 Statutes, is amended to read as follows:
2-21 (j) The department may not require a motor carrier required
2-22 to register under this article to carry workers' compensation or
2-23 similar insurance coverage. Notwithstanding any [contrary]
2-24 provision of any law or regulation, including Section 406.096,
2-25 Labor Code, a motor carrier required to register under this article
2-26 may provide health and accident coverage for its employees instead
2-27 of workers' compensation insurance for any contract with this state
2-28 or a political subdivision of this state [shall protect its
2-29 employees by obtaining workers' compensation insurance coverage as
2-30 defined under the Texas Workers' Compensation Act (Subtitle A,
2-31 Title 5, Labor Code) or accidental insurance coverage in an amount
2-32 fixed by the Texas Department of Transportation from a reliable
2-33 insurance company or companies authorized to write such policies in
2-34 this state approved by the department. The amount fixed by the
2-35 department may not be less than $300,000 for medical expenses for
2-36 no less than 104 weeks, $100,000 for accidental death and
2-37 dismemberment, 70 percent of the employee's pre-injury income for
2-38 no less than 104 weeks when compensating for loss of income, and
2-39 $500 for the maximum weekly benefit].
2-40 SECTION 5. Subsection (a), Section 6, Article 6675c, Revised
2-41 Statutes, is amended to read as follows:
2-42 (a) The department may impose an administrative penalty
2-43 against a motor carrier required to register under this article who
2-44 violates a provision of Section 3, 3A, 4, 5, 8, or 12 of this
2-45 article or a rule or order adopted under those sections. The
2-46 department shall designate one or more employees to investigate and
2-47 administer penalties under this section.
2-48 SECTION 6. Subsection (a), Section 7, Article 6675c, Revised
2-49 Statutes, is amended to read as follows:
2-50 (a) The department may suspend or revoke a registration
2-51 issued under this article if:
2-52 (1) a motor carrier fails to maintain insurance as
2-53 required by Section 4(a) or (b) of this article;
2-54 (2) a motor carrier fails to keep proof of insurance
2-55 in the cab of each vehicle as required by Section 4(e) of this
2-56 article;
2-57 (3) a motor carrier fails to register a vehicle
2-58 requiring registration; [or]
2-59 (4) a motor carrier knowingly provides false
2-60 information on any form filed with the department under this
2-61 section; or
2-62 (5) a motor carrier violates a rule adopted under
2-63 Section 3A of this article.
2-64 SECTION 7. Subsection (a), Section 13, Article 6675c,
2-65 Revised Statutes, is amended to read as follows:
2-66 (a) To investigate an alleged violation of Section 3, 3A, or
2-67 4 of this article, an officer or employee of the department who has
2-68 been certified for the purpose by the director may enter a motor
2-69 carrier's premises to copy or verify the correctness of documents,
3-1 including operation logs and insurance certificates.
3-2 SECTION 8. Section 15, Article 6675c, Revised Statutes, is
3-3 amended to read as follows:
3-4 Sec. 15. PAYMENT OF FEES. (a) The department may adopt
3-5 rules regarding the method of payment of a fee under this article.
3-6 The rules may authorize the use of escrow accounts described by
3-7 Subsection (b) of this section, electronic funds transfer, or a
3-8 valid credit card issued by a financial institution chartered by a
3-9 state or the federal government or by a nationally recognized
3-10 credit organization approved by the department. The rules may
3-11 require the payment of a discount or service charge for a credit
3-12 card payment in addition to the fee.
3-13 (b) The department may establish one or more escrow accounts
3-14 in the state highway fund for the prepayment of a fee under this
3-15 article. Prepaid fees and any fees established by the department
3-16 for the administration of this section shall be:
3-17 (1) administered under an agreement approved by the
3-18 department; and
3-19 (2) deposited to the credit of the state highway fund
3-20 to be appropriated only to the department for the purposes of
3-21 administering this article.
3-22 SECTION 9. Article 6675c-1, Revised Statutes, is amended by
3-23 amending Subsection (e) and adding Subsection (f) to read as
3-24 follows:
3-25 (e) The department may adopt rules regarding the method of
3-26 payment of a fee under this article. The rules may authorize the
3-27 use of an escrow account described by Subsection (f) of this
3-28 article, an electronic funds transfer, or a valid credit card
3-29 issued by a financial institution chartered by a state or the
3-30 federal government or by a nationally recognized credit
3-31 organization approved by the department. The rules may require the
3-32 payment of a discount or service charge for a credit card payment
3-33 in addition to the fee.
3-34 (f) The department may establish one or more escrow accounts
3-35 in the state highway fund for the prepayment of a fee under this
3-36 article. Prepaid fees and any fees established by the department
3-37 for the administration of this section shall be:
3-38 (1) administered under an agreement approved by the
3-39 department; and
3-40 (2) deposited to the credit of the state highway fund
3-41 to be appropriated only to the department for the purposes of
3-42 administering this article.
3-43 SECTION 10. Section 6, Article 6675d, Revised Statutes, is
3-44 amended to read as follows:
3-45 Sec. 6. CERTIFICATION OF MUNICIPAL POLICE [PEACE] OFFICERS.
3-46 (a) The department shall establish procedures, including training,
3-47 for the certification of municipal police [peace] officers to
3-48 enforce this article.
3-49 (b) A police [peace] officer of any of the following
3-50 municipalities is eligible to apply for certification under this
3-51 section:
3-52 (1) a municipality with a population of 100,000 or
3-53 more;
3-54 (2) a municipality with a population of 25,000 or more
3-55 any part of which is located in a county with a population of 2.4
3-56 million or more; or
3-57 (3) a municipality any part of which is located in a
3-58 county bordering the United Mexican States.
3-59 (c) The department by rule shall establish reasonable fees
3-60 sufficient to recover from a municipality the cost of certifying
3-61 its police [peace] officers under this section.
3-62 SECTION 11. Subdivision (5), Section 1, Article 6675d,
3-63 Revised Statutes, is amended to read as follows:
3-64 (5) "Federal motor carrier safety regulation" means a
3-65 federal regulation in Subchapter B, Chapter III, Subtitle B, Title
3-66 49, Code of Federal Regulations [C.F.R. Part 382, 385, or 386 or
3-67 Parts 388-399].
3-68 SECTION 12. Subdivision (1), Section 548.001, Transportation
3-69 Code, is amended to read as follows:
4-1 (1) "Commercial motor vehicle" means a self-propelled
4-2 or towed vehicle used to transport persons or property[, other than
4-3 a farm vehicle with a gross weight, registered weight, or gross
4-4 weight rating of less than 48,000 pounds,] if:
4-5 (A) the vehicle or combination of vehicles has a
4-6 gross weight, registered weight, or gross weight rating of more
4-7 than 26,000 pounds when operated in intrastate commerce;
4-8 (B) the vehicle is a farm vehicle with a gross
4-9 weight, a registered weight, or a gross weight rating of more than
4-10 48,000 pounds when operated in intrastate commerce;
4-11 (C) the vehicle is designed to transport more
4-12 than 15 passengers, including the driver; or
4-13 (D) [(C)] the vehicle is used to transport
4-14 hazardous materials in a quantity requiring placarding by a
4-15 regulation issued under the Hazardous Materials Transportation Act
4-16 (49 U.S.C. Section 1801 et seq.).
4-17 SECTION 13. Section 548.201, Transportation Code, is amended
4-18 to read as follows:
4-19 Sec. 548.201. Commercial Motor Vehicle Inspection Program.
4-20 (a) The commission shall establish an inspection program for
4-21 commercial motor vehicles that:
4-22 (1) meets the requirements of federal motor carrier
4-23 safety regulations; and
4-24 (2) requires a commercial motor vehicle registered in
4-25 this state to pass an annual inspection of all safety equipment
4-26 required by the federal motor carrier safety regulations.
4-27 (b) A program under this section also applies to any vehicle
4-28 or combination of vehicles with a gross weight rating of more than
4-29 10,000 pounds that is:
4-30 (1) operated in interstate commerce; and
4-31 (2) registered in this state.
4-32 SECTION 14. Subchapter B, Chapter 623, Transportation Code,
4-33 is amended by adding Section 623.0155 to read as follows:
4-34 Sec. 623.0155. INDEMNIFICATION FROM MOTOR CARRIER
4-35 PROHIBITED. (a) A person may not require indemnification from a
4-36 motor carrier as a condition to:
4-37 (1) the transportation of property for compensation or
4-38 hire by the carrier;
4-39 (2) entrance on property by the carrier for the
4-40 purpose of loading, unloading, or transporting property for
4-41 compensation or hire; or
4-42 (3) a service incidental to an activity described by
4-43 Subdivision (1) or (2), including storage of property.
4-44 (b) Subsection (a) does not apply to:
4-45 (1) a claim arising from damage or loss from a
4-46 wrongful or negligent act or omission of the carrier; or
4-47 (2) services or goods other than those described by
4-48 Subsection (a).
4-49 (c) In this section, "motor carrier" means a common carrier,
4-50 specialized carrier, or contract carrier that transports property
4-51 for hire. The term does not include a person who transports
4-52 property as an incidental activity of a nontransportation business
4-53 activity regardless of whether the person imposes a separate charge
4-54 for the transportation.
4-55 (d) A provision that is contrary to Subsection (a) is not
4-56 enforceable.
4-57 SECTION 15. A reference in law to the federal Interstate
4-58 Commerce Commission means:
4-59 (1) the federal Surface Transportation Board of the
4-60 Department of Transportation, or its successor, for activities
4-61 regulated by that board; or
4-62 (2) the appropriate agency of the federal government
4-63 that regulates the activity, if any, if the activity is not
4-64 regulated under Subdivision (1) of this section.
4-65 SECTION 16. (a) In addition to the substantive changes in
4-66 law made by this Act, this Act conforms Chapter 623, Transportation
4-67 Code, to Section 28, Chapter 705, Acts of the 74th Legislature,
4-68 1995.
4-69 (b) To the extent of any conflict between this Act and
5-1 another Act of the 75th Legislature, relating to nonsubstantive
5-2 changes in enacted codes, this Act prevails.
5-3 (c) Section 28, Chapter 705, Acts of the 74th Legislature,
5-4 1995, is repealed.
5-5 SECTION 17. This Act takes effect September 1, 1997.
5-6 SECTION 18. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended.
5-11 * * * * *