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HF 3282

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/14/2018 10:13am

KEY: stricken = removed, old language.
underscored = added, new language.

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Introduction Posted on 03/08/2018
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A bill for an act
relating to transportation; modifying tariff requirements for certain motor carriers;
amending Minnesota Statutes 2016, sections 174.66; 221.036, subdivisions 1, 3;
221.122, subdivision 1; 221.161, subdivision 1, by adding a subdivision; 221.171,
subdivision 1; repealing Minnesota Statutes 2016, section 221.161, subdivisions
2, 3, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 174.66, is amended to read:


174.66 CONTINUATION OF CARRIER RULES.

(a) Orders and directives in force, issued, or promulgated under authority of chapters
174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed,
modified, or superseded by duly authorized orders or directives of the commissioner of
transportation. To the extent allowed under federal law or regulation, rules adopted under
authority of the following sections are transferred to the commissioner of transportation
and continue in force and effect until repealed, modified, or superseded by duly authorized
rules of the commissioner:

(1) section 218.041 except rules related to the form and manner of filing railroad rates,
railroad accounting rules, and safety rules;

(2) section 219.40;

(3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits
under section 221.031, subdivision 1;new text begin and
new text end

(4) deleted text begin rules relating to rates, charges, and practices under section 221.161, subdivision 4;
and
deleted text end

deleted text begin (5)deleted text end rules relating to rates, tariffs, or the granting, limiting, or modifying of permits under
section 221.121.

(b) The commissioner shall review the transferred rules, orders, and directives and, when
appropriate, develop and adopt new rules, orders, or directives.

Sec. 2.

Minnesota Statutes 2016, section 221.036, subdivision 1, is amended to read:


Subdivision 1.

Order.

The commissioner may issue an order requiring violations to be
corrected and administratively assessing monetary penalties for a violation of (1) section
221.021; (2) section 221.033, subdivision 2b; (3) section 221.171; (4) section 221.141; (5)
a federal, state, or local law, regulation, rule, or ordinance pertaining to railroad-highway
grade crossings; or (6) rules of the commissioner relating to the transportation of hazardous
waste, motor carrier operations,new text begin ornew text end insurancedeleted text begin , or tariffs and accountingdeleted text end . An order must be
issued as provided in this section.

Sec. 3.

Minnesota Statutes 2016, section 221.036, subdivision 3, is amended to read:


Subd. 3.

Amount of penalty; considerations.

(a) The commissioner may issue an order
assessing a penalty of up to $5,000 for all violations new text begin identified during a single audit or
investigation
new text end of new text begin (1) new text end section 221.021deleted text begin ;deleted text end new text begin ,new text end 221.141deleted text begin ;deleted text end new text begin ,new text end or 221.171, ornew text begin (2)new text end rules of the commissioner
relating to motor carrier operationsdeleted text begin ,deleted text end new text begin or new text end insurancedeleted text begin , or tariffs and accounting, identified during
a single inspection, audit, or investigation
deleted text end .

(b) The commissioner may issue an order assessing a penalty up to a maximum of
$10,000 for all violations of section 221.033, subdivision 2b, identified during a single
inspection or audit.

(c) In determining the amount of a penalty, the commissioner shall consider:

(1) the willfulness of the violation;

(2) the gravity of the violation, including damage to humans, animals, air, water, land,
or other natural resources of the state;

(3) the history of past violations, including the similarity of the most recent violation
and the violation to be penalized, the time elapsed since the last violation, the number of
previous violations, and the response of the person to the most recent violation identified;

(4) the economic benefit gained by the person by allowing or committing the violation;
and

(5) other factors as justice may require, if the commissioner specifically identifies the
additional factors in the commissioner's order.

(d) The commissioner shall assess a penalty in accordance with Code of Federal
Regulations, title 49, section 383.53, against:

(1) a driver who is convicted of a violation of an out-of-service order;

(2) an employer who knowingly allows or requires an employee to operate a commercial
motor vehicle in violation of an out-of-service order; or

(3) an employer who knowingly allows or requires an employee to operate a commercial
motor vehicle in violation of a federal, state, or local law or regulation pertaining to
railroad-highway grade crossings.

Sec. 4.

Minnesota Statutes 2016, section 221.122, subdivision 1, is amended to read:


Subdivision 1.

Registration, insurance, and filing requirements.

(a) An order issued
by the commissioner which grants a certificate or permit must contain a service date.

(b) The person to whom the order granting the certificate or permit is issued shall do
the following within 45 days from the service date of the order:

(1) register vehicles which will be used to provide transportation under the permit or
certificate with the commissioner and pay the vehicle registration fees required by law;new text begin and
new text end

(2) file and maintain insurance or bond as required by section 221.141 and rules of the
commissionerdeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (3) file rates and tariffs as required by section 221.161 and rules of the commissioner.
deleted text end

Sec. 5.

Minnesota Statutes 2016, section 221.161, subdivision 1, is amended to read:


Subdivision 1.

deleted text begin Filing; hearing upon commissioner initiativedeleted text end new text begin Tariff maintenance and
contents
new text end .

A household goods deleted text begin carrierdeleted text end new text begin movernew text end shall deleted text begin file anddeleted text end maintain deleted text begin with the commissionerdeleted text end
a tariff showing rates and charges for transporting household goods. deleted text begin Tariffs must be prepared
and filed in accordance with the rules of the commissioner. When tariffs are filed in
accordance with the rules and accepted by the commissioner, the filing constitutes notice
to the public and interested parties of the contents of the tariffs. The commissioner shall not
accept for filing tariffs that are unjust, unreasonable, unjustly discriminatory, unduly
preferential or prejudicial, or otherwise in violation of this section or rules adopted under
this section. If the tariffs appear to be unjust, unreasonable, unjustly discriminatory, unduly
preferential or prejudicial, or otherwise in violation of this section or rules adopted under
this section, after notification and investigation by the department, the commissioner may
suspend and postpone the effective date of the tariffs and assign the tariffs for hearing upon
notice to the household goods carrier filing the proposed tariffs and to other interested
parties, including users of the service and competitive carriers by motor vehicle and rail.
At the hearing, the burden of proof is on the household goods carrier filing the proposed
tariff to sustain the validity of the proposed schedule of rates and charges. The tariffs and
subsequent supplements to them or reissues of them must state the effective date, which
may not be less than ten days following the date of filing, unless the period of time is reduced
by special permission of the commissioner.
deleted text end new text begin A household goods mover must prepare a tariff
under this section in accordance with Code of Federal Regulations, title 49, part 1310.3,
which is incorporated by reference.
new text end

Sec. 6.

Minnesota Statutes 2016, section 221.161, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Tariff availability. new text end

new text begin (a) A household goods mover subject to this section must
maintain all of its effective tariffs at its principal place of business and at each of its terminal
locations, and must make the tariffs available to the public for inspection at all times the
household goods mover is open for business. Any publication referred to in a tariff must be
maintained with that tariff.
new text end

new text begin (b) Upon request, a household goods mover must provide copies of tariffs, specific tariff
provisions, or tariff subscriptions to the commissioner or any interested person.
new text end

Sec. 7.

Minnesota Statutes 2016, section 221.171, subdivision 1, is amended to read:


Subdivision 1.

Compensation fixed by schedule on file.

deleted text begin Nodeleted text end new text begin Anew text end household goods deleted text begin carrier
shall
deleted text end new text begin mover must notnew text end charge or receive a greater, lesser, or different compensation for the
transportation deleted text begin of persons or propertydeleted text end or deleted text begin for relateddeleted text end servicedeleted text begin ,deleted text end new text begin providednew text end than the rates and
charges deleted text begin named in the carrier's schedule on file and in effect with the commissioner including
any rate fixed by the commissioner
deleted text end new text begin specified in the tariffnew text end under section 221.161deleted text begin ; nor shalldeleted text end new text begin .new text end
A household goods deleted text begin carrierdeleted text end new text begin mover must notnew text end refund or remit in any manner or by any device,
directly or indirectly, the rates and charges required to be collected by the deleted text begin carrierdeleted text end new text begin movernew text end
under the deleted text begin carrier'sdeleted text end new text begin mover'snew text end schedules deleted text begin or under the rates, if any, fixed by the commissionerdeleted text end .

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 221.161, subdivisions 2, 3, and 4, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H3282-1

221.161 SCHEDULE OF RATES AND CHARGES.

Subd. 2.

Hearing upon complaint.

Tariffs, supplements, and reissues must be prepared and filed in accordance with rules of the commissioner. Rates or charges, including pickup charges named therein, are subject to complaint to the commissioner by an interested party. The commissioner, after investigation by the department, by order on not less than ten days' notice, may assign the complaint for hearing, and if at the hearing, the complainant submits facts and evidence sufficient to establish proof that the rates or charges complained of are excessive or noncompensatory, the commissioner may order the rates or charges canceled, and require the filing of alternative and reasonable rates and charges, the reasonable level of which at that time must be indicated by the commissioner in the order.

Subd. 3.

Hearing upon petition by another carrier.

Upon the filing of a tariff or subsequent supplement or reissue, any other carrier has the right to petition the commissioner to suspend it from taking effect until opportunity is had for a hearing on the reasonableness of the rates or charges, and the commissioner may suspend the rates or charges if in its judgment the rates or charges complained of are so unreasonably low as to create destructive competitive practices among or jeopardize the economic position of competing carriers. In determining whether the rates or charges are excessive or noncompensatory, the commissioner shall include in consideration, among other things, the reasonable cost of the services rendered for the transportation, including a reasonable return on the money invested in the business and an adequate sum for maintenance and depreciation of the property used.

Subd. 4.

Hearing on merits of rates and charges.

The commissioner, (1) after a suspension and hearing upon a schedule of rates and charges, or upon complaint, or upon the commissioner's own initiative, either in extension of an existing complaint or without a complaint whatever, (2) after department investigation and petition, (3) upon notice to the permit carrier or tariff agent proposing, maintaining, or charging a schedule of rates and charges on a single group of related commodities, and (4) upon notice to the users of the service and competitive carriers by motor vehicle and rail, may assign for hearing the schedule of rates and charges proposed, maintained, or charged by any or all permit carriers. Upon a finding, after a hearing, that the schedule of rates and charges are unjust or unreasonable or unjustly discriminatory or unduly preferential or prejudicial or otherwise in violation of this section, the commissioner may prescribe minimum rates and charges and the rates, rules, and practices thereafter to be maintained and applied by the permit carrier or tariff agent. In the hearing the burden of proof is upon the permit carrier or tariff agent whose schedules of rates and charges are under investigation to show that the schedules are not below a minimum reasonable level or are not noncompensatory.