HBA-MPA H.B. 2400 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2400 By: Siebert Transportation 3/27/1999 Introduced BACKGROUND AND PURPOSE Currently, "vehicles used to transport passengers operated by an entity whose primary function is not the transportation of passengers, such as vehicles operated by a . . . governmental entity" are exempted from motor carrier registration (Section 1, Chapter 1061, Acts of the 75th Legislature, Regular Session, 1997). The intent was to exempt all governmental entities, but the strict language did not exempt certain entities such as public transit agencies, whose primary function is the transportation of passengers. The Texas Department of Transportation (TxDOT) is also authorized to vary the length of the registration period for motor carriers by adopting rules providing for an optional two-year registration and an optional temporary registration valid for less than a year. When registering, motor carriers are required to pay a $100 application fee, a $100 insurance fee, and $10 for each vehicle requiring registration, but it is not clear whether these fees are higher or lower than for two-year or temporary registration fees. Rider #29 to TxDOT's appropriation for the 1998-1999 fiscal year authorizes TxDOT to bill out-ofstate trucking firms for all expenses "relative to conducting motor carrier registration and insurance compliance audits." TxDOT is currently authorized to investigate alleged violations concerning motor carrier registration and insurance requirements but is not authorized to investigate household goods carrier consumer protection regulations. TxDOT also lacks authority to bill out-of-state firms for audits concerning compliance with these regulations. H.B. 2400 exempts all government entities from motor carrier registration requirements; clarifies the required fees for optional two-year and temporary registration of motor carriers; clarifies the authority of TxDOT to investigate all household goods carriers for alleged violations of registration and consumer protection regulations; and provides for the reimbursement of actual expenses for TxDOT employees investigating out-of-state motor carriers. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Department of Transportation in SECTION 4 (Section 643.061, Transportation Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 643.002, Transportation Code, by adding Subdivisions (4), (5), and (6), to extend the exemption from motor carrier registration under this chapter to a motor vehicle used to transport passengers operated by an entity whose primary function is not the transportation of passengers, a vehicle operated under a private carrier permit issued under Chapter 42 ( Private Carrier Permit), Alcoholic Beverage Code, and a vehicle operated by a government entity. Makes nonsubstantive changes. SECTION 2. Amends Section 643.058(a), Transportation Code, to make a conforming change. SECTION 3. Amends Section 643.059, Transportation Code, by amending Subsection (b) and (e)) and adding Subsection (f), to provide that a cab card or vehicle registration issued under the alternative method must be valid for the same duration as a certificate issued under Section 643.054(b) (Department Approval; Issuance of Certificate). Makes conforming and nonsubstantive changes. SECTION 4. Amends Subchapter B, Chapter 643, Transportation Code, by adding Sections 643.061 and 643.062, as follows: Sec. 643.061. OPTIONAL REGISTRATION PERIODS. (a) Authorizes the Texas Department of Transportation (TxDOT) to vary the registration period by adopting rules providing for a two-year registration and an optional temporary registration valid for less than a year. (b) Provides that a motor carrier applying under this section must pay a $20 fee for each vehicle registered for the two-year registration, a $10 fee for each vehicle registered for the temporary registration, and application and insurance filing fees TxDOT adopts, by rule, not exceeding $100. (c) Requires TxDOT to issue to a motor carrier registering under this section a motor carrier certificate and a cab card or it equivalent. Sec. 643.062. LIMITATION ON INTERNATIONAL MOTOR CARRIER. Prohibits a foreign-based international motor carrier required to register under this chapter or Chapter 645 (Single State Registration), from transporting persons or cargo in intrastate commerce in this state. Prohibits a person from assisting a foreign-based motor carrier from violating this section. SECTION 5. Amends Section 643.254, Transportation Code, by amending Subsection (a) and adding Subsections (c) and (d), as follows: Sec. 643.254. INSPECTION OF DOCUMENTS. (a) Includes reference to Subchapter D (Economic Regulation) among the violations TxDOT may investigate under this section. (c) Provides that a motor carrier must designate a location in the state for inspection of records concerning the alleged violation, or request an officer or employee of TxDOT to conduct the inspection at the motor carrier's office located outside the state. (d) Provides that the motor carrier requesting an out-of-state inspection will be responsible for payment of the expenses incurred by TxDOT in conducting the inspection. SECTION 6. (a) Repealer: Sections 1 and 2, Chapter 1061, Acts of the 75th Legislature, Regular Session, 1997. (b) Provides that this Act prevails over any other Act of the 76th Legislature to the extent of any conflict relating to nonsubstantive additions and corrections in enacted codes. SECTION 7.Emergency clause. Effective date: upon passage.