Brief ⁽¹⁾

HB 2768 relates to the regulation of motor carriers by the Kansas Corporation Commission (KCC).

New Section 1 of the bill provides for administrative issuance of certificates of public service to motor carriers for the transportation of property other than household goods or passengers. Current law provides for a quasi-judicial proceeding (hearings before Corporation Commissioners) for such authority. This section also requires the KCC to verify, within 12 months of issuance of a certificate to these carriers, that they continue to be fit, knowledgeable, and in compliance with KCC rules and regulations, liability, and cargo insurance and other applicable state laws. It also requires a list of all applications to be published bimonthly in the first and third issues of the Kansas Register. Notice of receipt of an application cannot be published more than 30 days after the application is filed. (This application for publication requirement is restored language and is in current law.)

Section 2 removes references to reports required by the Interstate Commerce Commission (ICC). The ICC was abolished by the Congress in 1995.

Section 3 allows the Attorney General to appoint a KCC attorney as a special assistant Attorney General to enforce and collect any penalties imposed on motor carriers. This provision would facilitate enforcement where a motor carrier is assessed penalties and subsequently fails to pay.

Sections 4 and 5 remove a reference to the ICC and replace it with the term "federal agency." The term federal agency is used because more than one agency may now handle the former functions of the ICC.

Section 6 eliminates references to certificates of public service which are addressed in New Section 1. It also removes provisions relating to the issuance of temporary authority because the KCC does not issue temporary authority. It also requires the KCC, upon filing of an application for a certificate of public convenience and necessity, to fix a time and place for a hearing not less than 20 and not more than 60 days after the filing. Notices of hearings must be published bimonthly in the first and third issues of the Kansas Register. This notice is restored language and is found in current law. This section also requires KCC verification within 12 months of issuance of a certificate of public convenience and necessity to a carrier that the carrier continues to be fit, knowledgeable, and in compliance with KCC's safety regulations, license, and cargo insurance, and other applicable state laws.

Section 7 eliminates the requirement that an application for authority from the KCC be supported by verified prefiled testimony. This matter would also be addressed in New Section 1.

Section 8 would allow a KCC attorney to act as a hearing examiner.

Sections 9 and 10 strike references to KCC hearings. The KCC does not conduct hearings on public motor carriers of property other than household goods or passengers.

Section 11 strikes references to KCC hearings and references to the ICC.

Section 12 is stricken and restores the original language to current law.

Section 13 is renumbered Section 12 and is the repealer section.

Section 14 is renumbered Section 13 and is the effective date of the bill.

Background

The Director of Transportation of the KCC appeared before the Committee to explain the bill and propose various amendments. The Director of Governmental Relations and Membership Services of the Kansas Motor Carriers Association (KMCA) requested that a provision be included to address verification by the KCC of the agency's safety and insurance requirements.

The House amendments require the KCC to verify within 12 months of issuing a trucker authority that the trucker is still in compliance with KCC's various requirements. Other changes were technical.

The Senate Committee restores current language regarding publication of applications for certificates of public service and certificates of public convenience and necessity in the Kansas Register.

The Division of the Budget indicates that HB 2768 has the potential to increase state expenditures and add 1.0 FTE attorney position to the state workforce. The appointment of a special assistant Attorney General could increase salaries and wages as well as increase the FTE position count in the KCC's budget. The KCC, however, states that the provisions of the bill could be administered within its current budget and an existing attorney could be appointed as the special assistant. The Attorney General's Office also states that HB 2768 would not affect its operational budget because these types of appointments exist in other agencies and the associated salaries and wages, as well as operational expenditures are the responsibility of the agency.

The fiscal effect of the provision relating to temporary motor carrier certificates cannot be estimated currently. The potential to affect other operating expenditures exists. However, the KCC states that any fiscal effect could be absorbed within its current budget.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html