HCS HB 571 Koller, Don et al

C O M M I T T E E

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