HCS HB 571 -- TRANSPORTATION REGULATION

SPONSOR:  Koller

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Transportation by a vote of 14 to 3.

This substitute deletes and revises sections of the statutes
regulating motor carriers and railroads which have been
nullified by preemption under recent federal laws and completes
the separation of the Division of Transportation from the Public
Service Commission, by transferring practice and procedures
statutes which remain applicable to transportation activities
from the commission's chapter to the division's chapter.

The economic regulation of intrastate trucking is preempted by
federal law.  However, the transportation of passengers and
household goods will still be fully regulated by the division.

The substitute adds language in the division's chapter dealing
with rules and regulation governing administrative law judges;
cooperative agreement or contract with division investigations;
Controversy among carriers; performing acts requested by the
division; walkways adjacent to railroad tracks; rates fixed by
the division; orders by the division; publication charges;
operation of equipment; investigation of common carriers,
railroads, and street railroad corporations; investigation of
rail accidents; investigation of freight passenger rates; annual
reports of division activities; hearing procedure for
complaints; subpoena powers; company or corporation books; and
penalties for failure to comply with rules or orders of the
division.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that before 1985, motor carriers and
railroads within Missouri were regulated as public utilities by
the Missouri Public Service Commission (PSC).  When  the
Division of Transportation within the Department of Economic
Development was created in 1985 as a separate entity, most of
the practice and procedure statutes governing DOT remained in
the chapter which also governs the PSC.  Now many of the powers,
practices, and procedures formerly applicable to transportation
regulation, which had derived from the regulation of public
utilities as natural monopolies, either have been preempted by
federal law, are not appropriate to the competitive environment,
or simply do not meet the needs of most transportation
carriers.  This legislation will bring Missouri in compliance
with federal regulations relating to regulating intrastate
trucking.

Testifying for the bill were Representative Koller; and Division
of Transportation.

OPPONENTS:  Those who oppose the bill say that since federal
legislation has preempted economic regulation authority and the
majority of the division's work load, the remaining duties of
the division would be better served in other departments or
divisions.

Testifying against the bill was Missouri Motor Carriers
Association.

Robert Triplett, Research Analyst

HB 571 -- Transportation Regulation

Sponsor:  Koller

This bill deletes and revises sections of the statutes
regulating motor carriers and railroads which have been
nullified by preemption under recent federal laws such as the
Federal Aviation Administration Authorization Act of 1994, the
Trucking Industry Regulatory Reform Act of 1994, the Intermodal
Surface Transportation Efficiency Act of 1991, and the
decertification of the Division of Transportation under the
Staggers Rail Act.

This bill also completes the separation of the Division of
Transportation from the Public Service Commission, by
transferring practice and procedures statutes which remain
applicable to transportation activities from the commission's
chapter to the division's chapter.