CHAPTER 92 HOUSE BILL No. 2291 (Amended by Chapter 167) An  Act relating to motor carriers; concerning the regulation thereof; amending K.S.A. 66-
137, 66-177 and 66-1,110 and K.S.A. 2000 Supp. 66-138, 66-143, 66-1,112, 66-1,115,
66-1,116, 66-1,128, 66-1,129b, 66-1,139, 66-1,139a and 66-1a01 and repealing the ex-
isting sections.
Be it enacted by the Legislature of the State of Kansas:

      New Section  1. The superintendent of the Kansas highway patrol
and the commission are hereby authorized and empowered to enter into
any contracts or agreements with the relevant federal agency that are
appropriate to allow qualified investigators of the commission and officers
of the highway patrol to conduct investigations necessary for the relevant
federal authority to issue a safety fitness rating.

      New Sec.  2. (a) Any motor carrier violating any statute, commission
orders or rules and regulations relevant to motor carriers adopted by the
state corporation commission shall be subject to a civil penalty of not less
than $100 and not more than $1,000 for negligent violations, and not
more than $5,000 for intentional violations.

      (b) In construing and enforcing a civil penalty in accordance with this
section, any act, omission or failure of any officer, agent or other person
acting for or employed by any motor carrier while acting within the scope
of such person's employment, shall in every case be deemed the act,
omission or failure of the motor carrier.

      (c) Every day during which the motor carrier fails to comply with any
order or direction of the commission, or any applicable statute, rule or
regulation, shall constitute a separate and distinct violation.

      (d) Civil penalties shall be enforced and collected by an attorney for
the corporation commission in the appropriate district court.

      (e) Civil penalties shall be remitted in accordance with the provisions
of K.S.A. 75-4215, and amendments thereto, to the state treasurer. Upon
receipt of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the motor carrier license fee
fund.

      (f) The commission is granted the power, by general order or oth-
erwise, to prescribe reasonable rules and regulations for the assessment
of administrative civil penalties and sanctions for violations of any statute,
commission orders or rules and regulations adopted by the commission.

      New Sec.  3. Any civil penalty may be compromised by the state cor-
poration commission. In determining the amount of the penalty or the
amount agreed in compromise, the appropriateness of the penalty to the
size of the business, the gravity of the violation and the good faith of the
person charged in attempting to achieve compliance, shall be considered.
The amount of the penalty, when finally determined, or the amount
agreed upon in compromise, may be deducted from any sums owing by
the state of Kansas to the person charged or may be recovered, together
with costs and the reasonable attorney fees of the commission staff or
retained counsel in a civil action in the appropriate district court. In lieu
of all or part of the civil penalty, the commission may consider and ap-
prove, before or at hearing, a requirement, negotiated with the commis-
sion's transportation division, that the person charged make payments to
or expenditures for a project that is related to motor carrier safety regu-
lation and benefits the industry or community as a whole.

      Sec.  4. K.S.A. 66-137 is hereby amended to read as follows: 66-137.
Any person who shall willfully intentionally make any false entry in the
accounts, books of account, records, or memoranda kept by any common
carrier or any public utility governed by the provisions of this act, or who
shall willfully intentionally destroy, mutilate, alter or by any other means
or device falsify the record of any such account, book of accounts, record
or memorandum, or who shall willfully intentionally neglect or fail to
make full, true and correct entries of such account, book of accounts,
record or memorandum of all facts and transactions appertaining to such
common carriers or public utilities business, or who shall falsely make
any statement required to be made to the corporation commission, shall
be deemed guilty of a felony, and upon the conviction shall be punished
by a fine of not less than one thousand dollars nor more than five thousand
dollars, or by imprisonment of not less than one year nor more than three
years, or by both such fine and imprisonment: Provided, That guilty of a
severity level 7, nonperson felony, and in addition to the sentence au-
thorized by law, be ordered to pay a fine in a sum not to exceed $5,000.
The commission may, in its discretion issue orders specifying such op-
erating, accounting or financial papers, records, books, blanks, tickets,
stubs or documents, of carriers which may after a reasonable time be
destroyed, and prescribing a length of time such books, papers or docu-
ments shall be preserved: And provided further,, except that such orders
shall be in harmony with those of the interstate commerce commission
relevant federal agency.

      Sec.  5. K.S.A. 2000 Supp. 66-138 is hereby amended to read as fol-
lows: 66-138. (a) If any common carrier, motor carrier holding a certifi-
cate, permit or license or public utility governed by the provisions of this
act violates any of the provisions of this act, or shall do any act herein
prohibited, or fails or refuses to perform any duty enjoined upon it in this
act, or fails, neglects or refuses to obey any lawful requirement or order
made by the commission, or any final judgment or decree made by any
court upon appeal from any order of the commission, it shall, for every
such violation, failure or refusal, forfeit and pay to the state treasurer a
sum not less than $100 and not more than $1,000 for such offense. Upon
receipt of any such sum, the state treasurer shall credit the entire amount
thereof to the public service regulation fund or the motor carrier license
fee fund, as the case requires.

      Such forfeiture shall be enforced and collected by the attorney general
in any court of competent jurisdiction. The attorney general may appoint
a corporation commission attorney as a special assistant attorney general
for the purposes of enforcing and collecting any forfeiture contemplated
herein. In construing and enforcing the provisions of this act, any act,
omission or failure of any officer, agent or other person acting for or
employed by any such public utility, or common carrier or motor carrier
holding a certificate, permit or license, while acting within the scope of
such person's employment, shall in every case be deemed to be the act,
omission or failure of such public utility, or common carrier or motor
carrier holding a certificate, permit or license, and every day during which
any such public utility, or common carrier or motor carrier holding a
certificate, permit or license, or officer, agent or employee thereof, fails
to comply with any order or direction of the commission, or to perform
any duty required or enjoined by this act, shall constitute a separate and
distinct violation of the provisions of this act.

      (b) The provisions of subsection (a), shall not apply to any motor
carrier.

      Sec.  6. K.S.A. 2000 Supp. 66-143 is hereby amended to read as fol-
lows: 66-143. The corporation commission shall have power to intervene
in any case pending before the relevant federal agency in which interstate
rates, service or safety affecting the interest of Kansas motor carriers,
common carriers or shippers are involved, and the commission is hereby
empowered and directed to pay all expenses of investigation and prose-
cution of litigation instituted under this section out of the contingent fund
of the commission.

      Sec.  7. K.S.A. 66-177 is hereby amended to read as follows: 66-177.
(a) Any public utility, or common carrier or motor carrier holding a cer-
tificate, permit or license willfully violating or evading any of the provi-
sions of law for the regulation of such public utility, or common carrier
or motor carrier holding a certificate, permit or license not otherwise
specifically provided for shall, for each offense, forfeit and pay a penalty
of not less than $100 nor more than $5,000. All penalties provided for
herein shall be recovered by a civil action, to be instituted and prosecuted
in the name of the state, by the county attorney of the county in which
the offense has been committed, upon the direction of the corporation
commission. If upon the trial of the action the jury finds for the plaintiff,
the jury shall assess and return with their verdict the amount of the fine
to be imposed upon the defendant and the court shall render judgment
accordingly. All such penalties recovered shall be paid to the state trea-
surer pursuant to K.S.A. 20-2801, and amendments thereto, and the cor-
poration commission may require the attorney general to assist such
county attorney in the prosecution of such action. No bond for costs shall
be required of the state in any such action.

      (b) The provisions of subsection (a), shall not apply to any motor
carrier.

      Sec.  8. K.S.A. 66-1,110 is hereby amended to read as follows: 66-
1,110. All ``public motor carriers of property or, of household goods or of
passengers'' as defined in this act are hereby declared to be common
carriers within the meaning of the public utility laws of this state, and are
hereby declared to be affected with a public interest and subject to this
act and to the laws of this state, including the regulation of all rates and
charges now in force or that hereafter may be enacted, pertaining to
public utilities and common carriers as far as applicable, and not in con-
flict herewith.

      Sec.  9. K.S.A. 2000 Supp. 66-1,112 is hereby amended to read as
follows: 66-1,112. (a) The commission is hereby vested with power and
authority and it shall be its duty to license, supervise and regulate every
public motor carrier of property, of household goods or of passengers in
this state, to the full extent not preempted by federal law, including fixing
and approving reasonable maximum or minimum, or maximum and min-
imum rates, fares, charges, classifications and rules and regulations per-
taining to the transportation of household goods or passengers as defined
in 49 U.S.C. 10102 13102. The commission shall prescribe rules and reg-
ulations related to uniform cargo liability, uniform bills of lading, uniform
cargo credit and antitrust immunity for joint-line rates and routes, clas-
sifications and mileage guides. The commission is hereby vested with
power and authority and it shall be its duty to license, supervise and
regulate every public motor carrier of property transporting property,
household goods or passengers in this state, and to regulate and supervise
the accounts, schedules, service and method of operation of same; to
prescribe a uniform system and classification of accounts to be used; to
require the filing of annual and other reports and any other data; and to
supervise and regulate public motor carriers of property transporting
property, household goods or passengers in all matters affecting the re-
lationship between such public motor carriers of property, of household
goods or of passengers and the traveling and shipping public.

      (b) The commission shall have power and authority, by general order
or otherwise, to prescribe reasonable and necessary rules and regulations
governing all such motor carriers. All laws relating to the powers, duties,
authority and jurisdiction of the corporation commission over common
carriers are hereby made applicable to all such motor carriers except as
herein otherwise specifically provided.

      (c) In order to insure nondiscriminatory, nonpreferential and just and
reasonable rates, joint rates, fares, tolls, charges and exactions for all ship-
pers, the commission shall establish rate-making procedures for all motor
common and contract carriers, including collective rate-making proce-
dures for joint consideration, initiation and establishment of such rates
and charges for transporting household goods or passengers as defined
in 49 U.S.C. 10102 13102. The commission shall prescribe reasonable
rules and regulations related to uniform cargo liability, uniform bills of
lading, uniform cargo credit and antitrust immunity for joint-line rates
and routes, classifications and mileage guides. Joint and collective rate-
making shall be limited to:

      (1) That which is necessary to formulate one or more joint rates as
such term is used in K.S.A. 66-117, and amendments thereto;

      (2) general rate increases or decreases if the tariff proposal gives ship-
pers, under procedures approved by the state corporation commission,
at least 15 days' notice of the proposal and an opportunity to present
comments on it before a tariff is filed with the commission and if discus-
sion of such increases or decreases is related to industry average carrier
costs and does not include discussion related exclusively to individual
markets or particular single-line rates;

      (3) changes in commodity classifications;

      (4) changes in tariff structures if discussion of such changes is related
to industry average carrier costs and does not include discussion related
exclusively to individual markets or particular single-line rates; and

      (5) publishing of tariffs, filing of independent actions for individual
members and changes in rules and regulations which are of at least sub-
stantially general application throughout the area in which such changes
will apply.

      (d) The provisions of K.S.A. 50-101 et seq., and amendments thereto,
shall not apply to the activities and procedures of persons, groups, agen-
cies, bureaus or other entities where such activities and procedures have
received approval by order of the state corporation commission under
this statute.

      Sec.  10. K.S.A. 2000 Supp. 66-1,115 is hereby amended to read as
follows: 66-1,115. It shall be unlawful for any ``contract motor carrier of
property or passengers'' or ``private motor carrier of property'' to operate
as a carrier of property or passengers within this state either in intrastate
commerce or in interstate commerce without first having obtained from
the corporation commission a license or permit or registered pursuant to
49 U.S.C. 11506 14504. An application shall be made to the corporation
commission in writing stating such information as the commission may
request. Upon receipt of such information and on compliance with the
regulations and payment of fees, the corporation commission shall issue
a license or permit to such applicant.

      Sec.  11. K.S.A. 2000 Supp. 66-1,116 is hereby amended to read as
follows: 66-1,116. (a) It shall be unlawful for a public motor carrier of
property, of household goods or of passengers, or a contract motor carrier
of property or of passengers, to operate in interstate commerce regulated
by the interstate commerce commission relevant federal agency without
registering its motor vehicles in its base state pursuant to 49 U.S.C. 11506
14504 in order to operate in Kansas.

      (b) It shall be unlawful for a public motor carrier of property, of
household goods or of passengers, a contract motor carrier of property or
of passengers, or a private motor carrier of property which is exempt from
interstate commerce commission federal regulations, to operate in inter-
state commerce within this state, without having furnished the corpora-
tion commission, in writing such information as the commission may re-
quest covering observance of state police regulations and the payments
of the fees. This act shall apply to all persons and motor vehicles engaged
in interstate commerce only to the extent permitted by the constitution
and laws of the United States.

      Sec.  12. K.S.A. 2000 Supp. 66-1,128 is hereby amended to read as
follows: 66-1,128. (a) Except as provided in subsection (b) (c) or pursuant
to 49 U.S.C. 11506 14504, no certificate, permit, or license shall be issued
by the state corporation commission to any public motor carrier of prop-
erty, household goods or passengers, contract motor carrier of property
or passengers or private motor carrier of property, until the applicant has
filed with the commission a liability insurance policy approved by the
commission, in such reasonable amounts as the commission determines
by rules and regulations is necessary to adequately protect the interest of
the public with due regard to the number of persons and amount of
property involved. Such amounts shall not be less than $100,000 for per-
sonal injury or death to any one person in any one accident, $300,000 for
injury or death to two or more persons in any one accident and $50,000
for loss to property of others in any one accident, which liability insurance
shall bind the obligors to pay compensation for injuries to persons and
loss of or damage to property resulting from the negligent operation of
such carrier.

      (b) The liability insurance policy required to be filed by any resident
applicant shall be in an insurance company or association authorized to
transact business in this state. Such policy of any nonresident applicant
may be afforded by an insurance company not authorized to do business
in this state which has given the commissioner of insurance of this state
a power of attorney authorizing such commissioner to accept service on
its behalf of notice or process in any action upon such policy. Such com-
pany not authorized to do business in this state shall have on file with
such commissioner a form as prescribed by subsection (b) of K.S.A. 40-
3106, and amendments thereto. A certificate of any insurance company
or association, in a form approved by the state corporation commission
certifying that there is in effect the liability insurance required by this
section, may be filed in lieu of the insurance policy itself. In the event
such certificate is filed, such company shall furnish to the commission
upon its request a duplicate original of the insurance policy and all en-
dorsements thereon. No other or additional bonds or licenses than those
prescribed in this act shall be required of any motor carrier by any city
or town or other agency of the state.

      (b) (c) Any public motor carrier of property, household goods or pas-
sengers, contract motor carrier of property or passengers or private motor
carrier of property in whose name more than 25 motor vehicles are reg-
istered may qualify as a self-insurer by obtaining a certificate of self-
insurance from the commissioner of insurance. Upon application of any
such carrier, the commissioner of insurance may issue a certificate of self-
insurance, if the commissioner is satisfied that such carrier is possessed
and will continue to be possessed of ability to pay any judgment obtained
against such carrier arising out of the ownership, operation, maintenance
or use of any motor vehicle registered in such carrier's name.

      (d) Upon notice and a hearing in accordance with the provisions of
the Kansas administrative procedure act, the commissioner of insurance
may cancel a certificate of self-insurance upon reasonable grounds. Fail-
ure to pay any judgment against a self-insurer, arising out of the owner-
ship, operation, maintenance or use of a motor vehicle registered in such
self-insurer's name, within 30 days after such judgment shall have become
final, shall constitute reasonable grounds for the cancellation of a certif-
icate of self-insurance.

      Sec.  13. K.S.A. 2000 Supp. 66-1,129b is hereby amended to read as
follows: 66-1,129b. (a) The provisions of 49 C.F.R. 173.5-agricultural op-
erations; 49 C.F.R. 173.6-materials of trade; and 49 C.F.R. 173.8-excep-
tions for nonspecification packagings used in intrastate transportation, in
effect on the effective date of this act, or any later version as adopted by
the commission in rules and regulations, are hereby adopted.

      (b) The following materials are authorized to be transported by in-
trastate farmers in nonspecification bulk packagings:

      (1) Agricultural products specified in 49 C.F.R. 173.5 (b)(2); and

      (2) flammable liquid petroleum distillates.

      (c) Nonbulk packagings permanently secured to a transport vehicle
and protected against leakage or damage in the event of an overturn,
having a capacity of less than 450 liters (119 gallons) or less are authorized
for the transportation of flammable liquid petroleum distillates.

      (d) Except as authorized in subsections (b) and (c), the packagings
must otherwise comply with the applicable requirements of 49 C.F.R.
171 through 180.

      Sec.  14. K.S.A. 2000 Supp. 66-1,139 is hereby amended to read as
follows: 66-1,139. (a) All interstate regulated public motor carriers of
property, of household goods or of passengers or contract motor carriers
of property or of passengers who operate a motor vehicle in Kansas shall
register their motor vehicles in their base state pursuant to 49 U.S.C.
11506 14504, unless exempted under the provision of K.S.A. 66-1,109,
and amendments thereto.

      (b) All intrastate public motor carriers of property, household goods
or passengers, contract motor carriers of property or passengers, and pri-
vate motor carriers of property shall register with the state corporation
commission all trucks or truck tractors as defined by K.S.A. 8-126, and
amendments thereto, and all other passenger vehicles used to transport
persons for hire, used in the operation of their business as such, except
those used in operations exempted under the provisions of K.S.A. 66-
1,109, and amendments thereto.

      (c) Interstate motor carriers which have been granted authority by
the commission to transport commodities exempt from the jurisdiction
of the interstate commerce commission relevant federal authority and
who operate for hire or who operate as private motor carriers shall register
all trucks or truck tractors as defined by K.S.A. 8-126, and amendments
thereto, and all other passenger vehicles used to transport persons for
hire, used in the operation of their business as such, except those used
in operations exempted under the provisions of K.S.A. 66-1,109, and
amendments thereto. For the purpose of assisting in paying the cost of
supervision and regulation of motor carriers, every such carrier shall an-
nually pay to the commission for each calendar year a regulatory fee of
$10 for each truck, truck tractor or passenger vehicle registered with the
commission. No fee shall be charged for a trailer or semitrailer. Interstate
motor carriers that are already registered pursuant to subsection (a), shall
not be required to register under this subsection.

      (d) All applications for registration shall be made on forms furnished
by the commission. Applications for registration of interstate common or
contract motor carriers shall include on the application the quantity of
trucks, truck tractors or passenger vehicles used by the motor carriers on
which a fee is required to be paid. Applications for registration of intra-
state common or contract motor carriers, private motor carriers, and in-
terstate exempt motor carriers shall include the complete vehicle iden-
tification numbers and the year and make of all trucks, truck tractors or
passenger vehicles used by the motor carrier, on which a fee is required
to be paid, and the application shall be accompanied by the required fee.
The fees shall be due January 1 and shall be paid not later than January
15. Upon receipt of the application and fee, the commission shall issue
to the carrier appropriate credentials for each vehicle registered.

      (e) The commission shall remit all moneys received by it or for it in
payment of fees imposed under this section to the state treasurer daily in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount thereof in the state treasury and the same shall
be credited to the credit of the motor carrier license fees fund.

      Sec.  15. K.S.A. 2000 Supp. 66-1,139a is hereby amended to read as
follows: 66-1,139a. All amounts collected under K.S.A. 66-1,139, and
amendments thereto, for the purpose of registration of motor vehicles,
pursuant to 49 U.S.C. 11506 14504, shall be remitted by the state cor-
poration commission to the state treasurer daily. The state treasurer shall
deposit the entire amount in the state treasury and credit such amount
to the base state registration clearing fund which is hereby created. Pay-
ments due and owing to participating states pursuant to 49 U.S.C. 11506
14504 and refunds for overpayment shall be made from such fund. The
state corporation commission shall reconcile such clearing fund monthly
with balances remitted monthly.

      Sec.  16. K.S.A. 2000 Supp. 66-1a01 is hereby amended to read as
follows: 66-1a01. (a) The state corporation commission shall charge and
collect fees for the purposes and in the amounts as prescribed in this
section. Such fees shall be paid to the state corporation commission at
the time of filing the original papers or application in the case.

      (b)  (1) For the purposes of certificates issued under K.S.A. 66-125,
and amendments thereto, to authorize the issuance of stock, bonds or
other evidences of indebtedness, except as otherwise provided in this
paragraph (1), the commission shall charge and collect an application fee
of $10 to accompany each application and processing fees which shall be
set by rules and regulations adopted by the commission and shall reflect
the costs incurred by the commission to process such application.

      Notwithstanding the foregoing provisions of this paragraph (1), when-
ever an application is made for a certificate to authorize the issuance of
stocks, bonds or other evidences of indebtedness and the federal inter-
state commerce commission relevant federal authority has authorized the
issuance of the same issue of such stocks, bonds or other evidences of
indebtedness, the commission shall charge and collect an application fee
of $10 to accompany each application and a processing fee of $25 which
shall be paid on or before issuance of such certificate.

      (2) Whenever an application is made for a certificate of convenience
and authority to provide interexchange telecommunications services or
competitive local exchange carrier services, the commission shall charge
and collect an application fee of $250 which shall accompany the appli-
cation.

      (3) With regard to the regulation of motor carriers, the commission
shall charge and collect fees in accordance with the following schedule:

For application for motor common carrier certificate	$25
For application for motor carrier permit or license, except no fee shall apply to motor carriers regulated by the interstate commerce commission relevant federal authority	10
For application for extension, rerouting, removal of restrictions or transfer of motor common carrier certificate and motor common carrier license	10
If increases proposed in rates, fares or charges when hearing is required	25

      (4) The commission shall charge a fee for copies, other than mime-
ographed or printed copies, of applications, orders, certificates, schedules
and duplicate motor-carrier equipment identification cards and a fee for
copies of passenger, household goods or property motor common carrier
lists, both fees in amounts approved by the director of accounts and re-
ports under K.S.A. 45-219, and amendments thereto.

      (c) There is hereby created in the state treasury the public service
regulation fund. The commission shall remit all moneys received by or
for it in payment of the fees imposed for certificates authorizing the is-
suance of stock, bonds or other evidences of indebtedness under para-
graph (1) of subsection (b) to the state treasurer daily in accordance with
the provisions of K.S.A. 75-4215, and amendments thereto. Upon the
receipt of each such remittance, the state treasurer shall deposit the entire
amount thereof in the state treasury and the entire amount thereof shall
be credited to the credit of the public service regulation fund. All ex-
penditures from the public service regulation fund shall be made in ac-
cordance with appropriation acts upon warrants of the director of ac-
counts and reports issued pursuant to vouchers approved by the
chairperson of the state corporation commission or by a person or persons
designated by such chairperson.

      (d) There is hereby created in the state treasury the motor carrier
license fees fund. The commission shall remit all moneys received by or
for it in payment of the fees imposed for regulation of motor carriers
under paragraphs (2) and (3) of subsection (b) to the state treasurer daily
in accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon the receipt of each such remittance, the state treasurer
shall deposit the entire amount thereof in the state treasury and the entire
amount thereof shall be credited to the credit of the motor carrier license
fees fund. All expenditures from the motor carrier license fees fund shall
be made in accordance with appropriation acts upon warrants of the di-
rector of accounts and reports issued pursuant to vouchers approved by
the chairperson of the state corporation commission or by a person or
persons designated by such chairperson.

      Sec.  17. K.S.A. 66-137, 66-177 and 66-1,110 and K.S.A. 2000 Supp.
66-138, 66-143, 66-1,112, 66-1,115, 66-1,116, 66-1,128, 66-1,129b, 66-
1,139, 66-1,139a and 66-1a01 are hereby repealed.

      Sec.  18. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 6, 2001.
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