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.

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