Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 544-H.F.No. 2192 
           An act relating to transportation; providing for 
          application of rules; providing for agreements with 
          other states to administer special permits for 
          vehicles exceeding weight and length restrictions; 
          exempting limousines from motor carrier regulation; 
          clarifying the filing of petitions for operating 
          certificates and permits, carrying of cab cards, and 
          requirements for private carriers; establishing 
          insurance requirements; providing that investigative 
          data on violations under chapter 221 may be given to 
          transportation regulation board; amending Minnesota 
          Statutes 1986, sections 169.81, subdivision 2; 169.86, 
          by adding a subdivision; 221.025; 221.031, 
          subdivisions 1, 2, 2a, and 3; 221.081; 221.121, 
          subdivisions 1 and 5; 221.141, subdivision 1; 221.151, 
          subdivision 1; 221.172, subdivision 2; 221.185, 
          subdivision 9; 221.291, subdivisions 1 and 2; 221.296, 
          subdivisions 4 and 8; and 221.81, subdivision 3a; 
          Minnesota Statutes 1987 Supplement, sections 221.031, 
          subdivision 7; 221.061; 221.291, subdivision 3; and 
          221.296, subdivision 5; proposing coding for new law 
          in Minnesota Statutes, chapters 169 and 221; repealing 
          Minnesota Statutes 1986, section 13.72, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [169.025] [APPLICATION OF MOTOR CARRIER RULES.] 
    Notwithstanding any provision of this chapter other than 
section 169.67, a vehicle, driver, or carrier that is subject to 
a motor carrier safety rule adopted under section 221.031 or 
section 25 shall comply with the more stringent or additional 
requirement imposed by that motor carrier safety rule. 
    Sec. 2.  Minnesota Statutes 1986, section 169.81, 
subdivision 2, is amended to read:  
    Subd. 2.  [LENGTH OF VEHICLES.] (a) No single unit motor 
vehicle, except truck mobile cranes which may not exceed 45 
feet, unladen or with load may exceed a length of 40 feet 
extreme overall dimensions inclusive of front and rear bumpers, 
except that the governing body of a city is authorized by permit 
to provide for the maximum length of a motor vehicle, or 
combination of motor vehicles, or the number of vehicles that 
may be fastened together, and which may be operated upon the 
streets or highways of a city; provided, that the permit may not 
prescribe a length less than that permitted by state law.  A 
motor vehicle operated in compliance with the permit on the 
streets or highways of the city is not in violation of this 
chapter.  
    (b) No single semitrailer may have an overall length, 
exclusive of non-cargo-carrying accessory equipment, including 
refrigeration units or air compressors, necessary for safe and 
efficient operation mounted or located on the end of the 
semitrailer adjacent to the truck or truck-tractor, in excess of 
48 feet, except that a single semitrailer may have an overall 
length in excess of 48 feet if (1) the distance from the kingpin 
to the centerline of the rear axle group of the semitrailer does 
not exceed 41 feet, and (2) if the semitrailer is operated only 
in a combination of vehicles which does not exceed an overall 
length of 65 feet.  No single trailer may have an overall length 
inclusive of tow bar assembly and exclusive of rear protective 
bumpers which do not increase the overall length by more than 
six inches, in excess of 45 feet.  For determining compliance 
with the provisions of this subdivision, the length of the 
semitrailer or trailer must be determined separately from the 
overall length of the combination of vehicles.  
    (c) No semitrailer or trailer used in a three-vehicle 
combination may have an overall length, exclusive of 
non-cargo-carrying accessory equipment, including refrigeration 
units or air compressors, necessary for safe and efficient 
operation mounted or located on the end of the semitrailer or 
trailer adjacent to the truck or truck-tractor, and further 
exclusive of the tow bar assembly, in excess of 28-1/2 feet.  
The commissioner may not grant a permit authorizing the 
movement, in a three-vehicle combination, of a semitrailer or 
trailer that exceeds 28-1/2 feet, except that the commissioner 
may renew a permit that was granted before April 16, 1984 for 
the movement of a semitrailer or trailer that exceeds the length 
limitation in this paragraph. 
    Sec. 3.  Minnesota Statutes 1986, section 169.86, is 
amended by adding a subdivision to read: 
    Subd. 7.  [AGREEMENTS WITH OTHER STATES.] (a) On behalf of 
the state of Minnesota, the commissioner may enter into 
agreements with authorized representatives of other states for 
the reciprocal administration and granting of permits to allow 
the movement of vehicles of sizes and weights that do not 
conform to Minnesota law.  The agreement may authorize 
representatives of other states to issue permits to allow 
vehicles that do not conform to the size and weight provisions 
of this chapter to travel on highways under the jurisdiction of 
the commissioner. 
    (b) An agreement entered into under paragraph (a), and all 
amendments to it, must be in writing and may provide for 
exchanging information for audit and enforcement activities, 
collecting fees established under this chapter, and distributing 
fees collected under the agreement.  It must state that no 
permit issued under the agreement excuses a vehicle operator 
from compliance with a law of this state other than the laws 
governing size and weight of vehicles. 
    (c) For purposes of paragraphs (a) and (b), "state" means a 
state, territory, or possession of the United States, the 
District of Columbia, a foreign country, and a state or province 
of a foreign country. 
    (d) Fees collected under authority of the agreement must be 
deposited in the Minnesota state treasury and credited to the 
trunk highway fund. 
    Sec. 4.  Minnesota Statutes 1986, section 221.025, is 
amended to read: 
    221.025 [EXEMPTIONS.] 
    Except as provided in sections 221.031 and 221.033, the 
provisions of this chapter do not apply to the intrastate 
transportation described below:  
    (a) the transportation of students to or from school or 
school activities in a school bus inspected and certified under 
section 169.451;  
    (b) the transportation of rubbish as defined in section 
443.27;  
    (c) a commuter van as defined in section 221.011, 
subdivision 27;  
    (d) authorized emergency vehicles as defined in section 
169.01, subdivision 5, including ambulances, and tow trucks when 
picking up and transporting disabled or wrecked motor vehicles 
and when carrying proper and legal warning devices;  
    (e) the transportation of grain samples under conditions 
prescribed by the board;  
    (f) the delivery of agricultural lime;  
    (g) the transportation of dirt and sod within an area 
having a 50-mile radius from the home post office of the person 
performing the transportation;  
    (h) a person while exclusively engaged in the 
transportation of sand, gravel, bituminous asphalt mix, concrete 
ready mix, concrete blocks or tile, or crushed rock to or from 
the point of loading or a place of gathering within an area 
having a 50-mile radius from that person's home post office or a 
50-mile radius from the site of construction or maintenance of 
public roads and streets;  
    (i) the transportation of pulpwood, cordwood, mining 
timber, poles, posts, decorator evergreens, wood chips, sawdust, 
shavings, and bark from the place where the products are 
produced to the point where they are to be used or shipped;  
    (j) a person while engaged exclusively in transporting 
fresh vegetables from farms to canneries or viner stations, from 
viner stations to canneries, or from canneries to canneries 
during the harvesting, canning, or packing season, or 
transporting potatoes, sugar beets, wild rice, or rutabagas from 
the field of production to the first place of delivery or 
unloading, including a processing plant, warehouse, or railroad 
siding;  
    (k) a person engaged in transporting property or freight, 
other than household goods and petroleum products in bulk, 
entirely within the corporate limits of a city or between 
contiguous cities except as provided in section 221.296;  
    (l) the transportation of unprocessed dairy products in 
bulk within an area having a 100-mile radius from the home post 
office of the person providing the transportation;  
    (m) a person engaged in transporting agricultural, 
horticultural, dairy, livestock, or other farm products within 
an area having a 25-mile radius from the person's home post 
office. and the carrier may transport other commodities within 
the 25-mile radius if the destination of each haul is a farm; 
    (n) a person providing limousine service that is not 
regular route service in a passenger automobile that is not a 
van, and that has a seating capacity, excluding the driver, of 
not more than 12 persons. 
    Sec. 5.  Minnesota Statutes 1986, section 221.031, 
subdivision 1, is amended to read:  
    Subdivision 1.  [POWERS, DUTIES, REPORTS, LIMITATIONS.] 
This subdivision applies to motor carriers engaged in intrastate 
commerce.  The commissioner shall prescribe rules for the 
operation of motor carriers, including their facilities, 
accounts, leasing of vehicles and drivers, service, safe 
operation of vehicles, equipment, parts and accessories, maximum 
hours of service of drivers, driver qualifications, accident 
reporting, identification of vehicles, installation of safety 
devices, inspection, repair, and maintenance, and proper 
automatic speed regulators if, in the opinion of the 
commissioner, there is a need for the rules.  The commissioner 
shall direct the repair and reconstruction or replacement of an 
inadequate or unsafe motor carrier vehicle or facility.  The 
commissioner may require the construction and maintenance or 
furnishing of suitable and proper freight terminals, passenger 
depots, waiting rooms, and accommodations or shelters in a city 
in this state or at a point on the highway traversed which the 
commissioner, after investigation by the department, may deem 
just and proper for the protection of passengers or property.  
The commissioner shall require the filing of annual and other 
reports including annual accounts of motor carriers, schedules 
of rates and charges, or other data by motor carriers, regulate 
motor carriers in matters affecting the relationship between 
them and the traveling and shipping public, and prescribe other 
rules as may be necessary to carry out the provisions of this 
chapter.  A motor carrier having gross revenues from for-hire 
transportation in a calendar year of less than $50,000 may, at 
the discretion of the commissioner, be exempted from the filing 
of an annual report, if instead of filing the report the motor 
carrier files an affidavit, in a form as may be prescribed by 
the commissioner, attesting that the motor carrier's gross 
revenues did not exceed $50,000 in the previous calendar year.  
Motor carrier gross revenues from for-hire transportation, for 
the purposes of this subdivision only, do not include gross 
revenues received from the operation of school buses as defined 
in section 169.01, subdivision 6.  The commissioner shall make 
no rules relating to the granting, limiting, or modifying of 
permits or certificates of convenience and necessity, which are 
powers granted to the board.  The board may extend the termini 
of a route or alter or change the route of a regular route 
common carrier upon petition and after finding that public 
convenience and necessity require an extension, alteration, or 
change. 
    Sec. 6.  Minnesota Statutes 1986, section 221.031, 
subdivision 2, is amended to read:  
    Subd. 2.  [PRIVATE CARRIERS.] This subdivision applies to 
private carriers engaged in intrastate commerce. 
    (a) Private carriers operating vehicles licensed and 
registered for a gross weight of more than 12,000 pounds, shall 
comply with rules adopted under this section applying to maximum 
hours of service of drivers, safe operation of vehicles, 
equipment, parts and accessories, leasing of vehicles or 
vehicles and drivers, and inspection, repair, and maintenance.  
    (b) In addition to the requirements in paragraph (a), 
private carriers operating vehicles licensed and registered for 
a gross weight in excess of 26,000 pounds shall comply with 
rules adopted under this section relating to driver 
qualifications.  
    (c) The requirements as to driver qualifications and 
maximum hours of service for drivers do not apply to private 
carriers who are (1) public utilities as defined in section 
216B.02, subdivision 4; (2) cooperative electric associations 
organized under chapter 308; (3) telephone companies as defined 
in section 237.01, subdivision 2; or (4) who are engaged in the 
transportation of construction materials, tools and equipment 
from shop to job site or job site to job site, for use by the 
private carrier in the new construction, remodeling, or repair 
of buildings, structures or their appurtenances.  
    (d) The driver qualification rule and the hours of service 
rules do not apply to vehicles controlled by a farmer and 
operated by a farmer or farm employee to transport agricultural 
products or farm machinery or supplies to or from a farm if the 
vehicle is not used in the operations of a motor carrier and not 
carrying hazardous materials of a type or quantity that requires 
the vehicle to be marked or placarded in accordance with section 
221.033.  
    Sec. 7.  Minnesota Statutes 1986, section 221.031, 
subdivision 2a, is amended to read:  
    Subd. 2a.  [PRIVATE AGRICULTURAL CARRIERS.] Notwithstanding 
the provisions of subdivision 2, private carriers engaged in 
intrastate commerce and operating vehicles transporting 
agricultural and other farm products within an area having a 
50-mile radius from the business location of the private carrier 
must comply only with the commissioner's rules for safety of 
operations and equipment. 
    Sec. 8.  Minnesota Statutes 1986, section 221.031, 
subdivision 3, is amended to read: 
    Subd. 3.  [VEHICLES OVER 12,000 POUNDS NOT EXEMPT.] This 
subdivision applies to vehicles engaged in intrastate commerce.  
Vehicles providing transportation described in section 221.025 
which are registered and licensed for a gross weight in excess 
of 12,000 pounds, except school buses, commuter vans, and 
authorized emergency vehicles, must comply with the rules of the 
commissioner for safety of operations and equipment.  
    Sec. 9.  Minnesota Statutes 1987 Supplement, section 
221.031, subdivision 7, is amended to read: 
    Subd. 7.  [MEDICAL EXAMINER'S CERTIFICATE; CHARTER CARRIER 
DRIVERS.] While in the state, the driver for a charter 
carrier engaged in intrastate commerce who has in possession a 
license with a school bus endorsement under section 171.321 or 
rules of the commissioner of public safety is not required to 
have in possession or to present a separate medical examiner's 
certificate otherwise required by Code of Federal Regulations, 
title 49, sections 391.41 to 391.49. 
    Sec. 10.  [221.0315] [INVESTIGATIVE DATA PROVIDED.] 
    The commissioner may provide to the board investigative 
data about a petitioner or carrier that is subject to the 
jurisdiction of the board.  When the data are transferred to the 
board, the commissioner shall notify the petitioner or carrier 
in writing that the data are being provided to the board. 
    Sec. 11.  Minnesota Statutes 1987 Supplement, section 
221.061, is amended to read:  
    221.061 [OPERATION CERTIFICATE FOR REGULAR ROUTE COMMON 
CARRIER OR PETROLEUM CARRIER.] 
    A person desiring a certificate authorizing operation as a 
regular route common carrier or petroleum carrier, or an 
extension of or amendment to that certificate, shall file a 
petition with the board commissioner which must contain 
information as the board and commissioner, by rule may prescribe.
    Upon the filing of a petition for a certificate, the 
petitioner shall pay to the commissioner as a fee for issuing 
the certificate the sum of $300 and for a transfer or lease of 
the certificate the sum of $300. 
    The petition must be processed as any other petition.  The 
board shall cause a copy and a notice of hearing thereon to be 
served upon a competing carrier operating into a city located on 
the proposed route of the petitioner and to other persons or 
bodies politic which the board deems interested in the 
petition.  A competing carrier and other persons or bodies 
politic are hereby declared to be interested parties to the 
proceedings. 
    If, during the hearing, an amendment to the petition is 
proposed which appears to be in the public interest, the board 
may allow it when the issues and the territory are not unduly 
broadened by the amendment. 
    Sec. 12.  Minnesota Statutes 1986, section 221.081, is 
amended to read:  
    221.081 [SALE OR LEASE OF CERTIFICATE OF REGULAR ROUTE 
COMMON CARRIER OR PETROLEUM CARRIER.] 
    Certificates authorizing operations as a regular route 
common carrier or as a petroleum carrier may be sold or leased 
but only upon order of the board approving the same.  The 
proposed seller and buyer or lessor and lessee of a certificate 
shall file a joint petition with the board commissioner, setting 
forth the names and addresses of the parties, the identifying 
number of the certificate and the description of the authority 
which the parties seek to sell or lease, a short statement of 
the reasons for the proposed sale or lease, a short statement of 
the buyer or lessee's present operating authority, if any, a 
statement of all outstanding claims of creditors which are 
directly attributable to the operations conducted under said 
certificate, a copy of the contract of sale or lease and a 
financial statement with balance sheet and income statement, if 
existent, of the buyer.  If it appears to the board from the 
contents of the petition and from the department's records, 
files and investigation of the petition that the approval of the 
sale or lease of the certificate will not adversely affect the 
rights of the users of the service and will not have an adverse 
effect on any other motor carrier, the board may make an ex 
parte order granting the same.  When the proposed sale or lease 
is between persons who are direct competitors to a material 
degree, the petition shall be set down for hearing with notice 
to the communities which may be affected by the proposed merger 
and to any other persons the board or department deems to be 
interested parties. 
    Sec. 13.  Minnesota Statutes 1986, section 221.121, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PERMIT CARRIERS.] A person desiring to 
operate as a permit carrier, except as a livestock carrier, or a 
local cartage carrier shall file a petition with the board 
commissioner specifying the kind of permit desired, the name and 
address of the petitioner and the names and addresses of the 
officers, if a corporation, and other information as the 
board and commissioner may require.  The board, after notice to 
interested parties and a hearing, shall issue the permit upon 
compliance with the laws and rules relating to it, if it finds 
that petitioner is fit and able to conduct the proposed 
operations, that petitioner's vehicles meet the safety standards 
established by the department, that the area to be served has a 
need for the transportation services requested in the petition, 
and that existing permit and certificated carriers in the area 
to be served have failed to demonstrate that they offer 
sufficient transportation services to meet fully and adequately 
those needs, provided that no person who holds a permit at the 
time sections 221.011 to 221.291 take effect may be denied a 
renewal of the permit upon compliance with other provisions of 
sections 221.011 to 221.291.  A permit once granted continues in 
full force and effect until abandoned or unless suspended or 
revoked, subject to compliance by the permit holder with the 
applicable provisions of law and the rules of the commissioner 
or board governing permit carriers.  No permit may be issued to 
a common carrier by rail permitting the common carrier to 
operate trucks for hire within this state, nor may a common 
carrier by rail be permitted to own, lease, operate, control, or 
have an interest in a permit carrier by truck, either by stock 
ownership or otherwise, directly, indirectly, through a holding 
company, or by stockholders or directors in common, or in any 
other manner.  Nothing in sections 221.011 to 221.291 prevents 
the board from issuing a permit to a common carrier by rail 
authorizing the carrier to operate trucks wholly within the 
limits of a municipality or within adjacent or contiguous 
municipalities or a common rate point served by the railroad and 
only as a service supplementary to the rail service now 
established by the carriers. 
    Sec. 14.  Minnesota Statutes 1986, section 221.121, 
subdivision 5, is amended to read:  
    Subd. 5.  [LIVESTOCK CARRIERS.] A person desiring to 
operate as a livestock carrier shall file a petition with the 
board commissioner specifying the kind of permit desired, the 
name and address of the petitioner and the names and addresses 
of the officers, if a corporation, and other information as the 
board and commissioner may require. 
    The board shall issue the permit upon compliance with laws 
and rules relating to the permit unless it finds that 
petitioner's vehicles do not meet the safety standards 
prescribed by the commissioner or that petitioner is not fit and 
able to conduct the proposed operations.  A permit issued under 
this act must be renewed upon compliance with the provisions of 
this act and the rules of the board and commissioner.  A 
livestock carrier, on the return trip after hauling livestock 
and delivering the livestock, may transport other commodities or 
property to the carrier's headquarters area.  The livestock 
carrier may transport supplies and equipment used in farm work 
from the carrier's headquarters area to any point in the state 
or from any point in the state to the headquarters area. 
    Sec. 15.  Minnesota Statutes 1986, section 221.141, 
subdivision 1, is amended to read:  
    Subdivision 1.  [INSURANCE OR BONDS FINANCIAL 
RESPONSIBILITY OF MOTOR CERTAIN CARRIERS.] No motor carrier and 
no interstate carrier shall operate a vehicle until it has 
obtained and has in effect the minimum amount of financial 
responsibility required by this section.  Policies of insurance, 
surety bonds, other types of security, and endorsements must be 
continuously in effect and must remain in effect until 
canceled.  Before a certificate or permit is issued to a motor 
carrier providing transportation, the motor carrier or 
interstate carrier shall secure and cause to be filed with the 
commissioner and maintain in full effect, a certificate of 
insurance in a form required by the commissioner, evidencing 
public liability and indemnity insurance in an the amount and in 
a form prescribed by the commissioner.  The insurance must cover 
injuries and damage to persons or property occurring on the 
highways, other than resulting from the operation or use of 
motor vehicles, regardless of whether each vehicle is 
specifically described in the policy.  This insurance does not 
apply to injuries or death to the employees of the motor carrier 
or the to property being transported by the carrier, provided 
that.  The commissioner shall require cargo insurance for 
certificated carriers, except those carrying passengers 
exclusively, and.  The commissioner may require a permit carrier 
to file the cargo insurance when the commissioner deems 
necessary to protect the users of the service.  
    Subd. 1a.  [CANCELLATION.] Insurance, bonds, endorsements, 
certificates, and other evidence of financial responsibility 
issued to satisfy the requirements of this subdivision is 
subject to cancellation for nonpayment of premiums or 
withdrawals from service of a vehicle or vehicles covered by 
insurance upon section may be canceled on not less than 30 days' 
written notice to the insured and to the commissioner.  
    Subd. 1b.  [AMOUNT.] Except as provided in subdivision 1d, 
the amount of insurance or, bond, or other security required for 
motor carriers is the amount prescribed by order of the 
commissioner.  The amount prescribed may from time to time be 
reduced or increased by order of the commissioner.  The 
commissioner may, if desired by the petitioner, prescribe in 
lieu of the bond or insurance some other form of security as may 
be satisfactory.  Each policy of insurance, surety bond, or 
other evidence of financial responsibility issued to a motor 
carrier or to an interstate carrier must be amended by 
attachment to the policy of the endorsement for motor carrier 
policies of insurance prescribed by the United States Department 
of Transportation or must by its terms provide coverage that 
conforms to the terms and conditions of that endorsement. 
    Subd. 1c.  [INTERSTATE CARRIERS.] An interstate carrier 
must obtain insurance or bond in the minimum amounts prescribed 
in Code of Federal Regulations, title 49, section 1043.2, 
paragraphs (a) and (b).  
    Subd. 1d.  [MOTOR CARRIERS OF HAZARDOUS CARGO.] A motor 
carrier that transports property described under (2) and (3) of 
the schedule of limits in Code of Federal Regulations, title 49, 
section 387.9, must obtain insurance or bond in the amounts 
prescribed in those regulations. 
    Subd. 1e.  [INSURER MUST BE AUTHORIZED.] A policy of 
insurance, bond, or other evidence of financial responsibility 
does not satisfy the requirements of this section unless the 
insurer or surety furnishing the evidence of financial 
responsibility is authorized or registered by the department of 
commerce to issue the policies, bonds, or certificates in this 
state. 
    Subd. 1f.  [FINANCIAL RESPONSIBILITY DEFINED.] "Financial 
responsibility" means a policy of insurance, surety bond, or 
other financial undertaking sufficient to pay liability amounts 
required by this section. 
    Sec. 16.  Minnesota Statutes 1986, section 221.151, 
subdivision 1, is amended to read:  
    Subdivision 1.  [PETITION.] Permits, except livestock 
permits, issued under section 221.121 may be assigned or 
transferred but only upon the order of the board approving the 
transfer or assignment after notice and hearing. 
    The proposed seller and buyer or lessor and lessee of a 
permit, except for livestock carrier permits, shall file a joint 
notarized petition with the board commissioner setting forth the 
name and address of the parties, the identifying number of the 
permit, and the description of the authority which the parties 
seek to sell or lease, a short statement of the reasons for the 
proposed sale or lease, a statement of outstanding claims of 
creditors which are directly attributable to the operation to be 
conducted under the permit, a copy of the contract of sale or 
lease, and a financial statement with a balance sheet and an 
income statement, if existent, of the buyer or lessee.  If it 
appears to the board, after notice to interested parties and a 
hearing, from the contents of the petition, from the evidence 
produced at the hearing, and from the department's records, 
files, and investigation that the approval of the sale or lease 
of the permit will not adversely affect the rights of the users 
of the service and will not have an adverse effect upon other 
competing carriers, the board may make an order granting the 
sale or lease.  Provided, however, that the board shall make no 
order granting the sale or lease of a permit to a person or 
corporation or association which holds a certificate or permit 
other than local cartage carrier permit from the board under 
this chapter or to a common carrier by rail. 
    Provided further that the board shall make no order 
approving the sale or lease of a permit if the board finds that 
the price paid for the sale or lease of a permit is 
disproportionate to the reasonable value of the permit 
considering the assets and goodwill involved.  The board shall 
approve the sale or lease of a permit only after a finding that 
the transferee is fit and able to conduct the operations 
authorized under the permit and that the vehicles the transferee 
proposes to use in conducting the operations meet the safety 
standards of the commissioner.  In determining the extent of the 
operating authority to be conducted by the transferee under the 
sale or lease of the permit, the past operations of the 
transferor within the two-year period immediately preceding the 
transfer must be considered.  Only such operating authority may 
be granted to the transferee as was actually exercised by the 
transferor under the transferor's authority within the two-year 
period immediately preceding the transfer as evidenced by bills 
of lading, company records, operation records, or other relevant 
evidence.  For purposes of determining the two-year period, the 
date of divesting of interest or control is the date of the 
sale.  The board shall look to the substance of the transaction 
rather than the form.  An agreement for the transfer or sale of 
a permit must be reported and filed with the board within 30 
days of the agreement.  
    If an authority to operate as a permit carrier is held by a 
corporation, a sale, assignment, pledge, or other transfer of 
the stock interest in the corporation which will accomplish a 
substantial or material change or transfer of the majority 
ownership of the corporation, as exercised through its 
stockholders, must be reported in the manner prescribed in the 
rules of the board within 90 30 days after the sale, assignment, 
pledge, or other transfer of stock.  The board shall then make a 
finding whether or not the stock transfer does, in fact, 
constitute a sale, lease, or other transfer of the permit of the 
corporation to a new party or parties and, if they so find, then 
the continuance of the permit issued to the corporation may only 
be upon the corporation's complying with the standards and 
procedures otherwise imposed by this section. 
    Sec. 17.  Minnesota Statutes 1986, section 221.172, 
subdivision 2, is amended to read:  
    Subd. 2.  [HAZARDOUS WASTE MANIFEST.] A person who 
transports a hazardous waste by motor vehicle shall carry in the 
vehicle a hazardous waste manifest which conforms to the 
requirements of Code of Federal Regulations, title 40, part 
262 Minnesota Rules, chapter 7045. 
    Sec. 18.  Minnesota Statutes 1986, section 221.185, 
subdivision 9, is amended to read:  
    Subd. 9.  [NEW PETITION.] If the holder of a canceled 
permit or certificate seeks authority to operate as a motor 
carrier it shall file a petition with the board commissioner for 
a permit or certificate as provided in section 221.061, 221.121, 
or 221.296, whichever is applicable.  
    Sec. 19.  Minnesota Statutes 1986, section 221.291, 
subdivision 1, is amended to read:  
    Subdivision 1.  [VIOLATION.] Except as provided in 
subdivisions 3 and 4 and 5, and sections 221.036 and 609.671, a 
person who commits, procures, aids or abets or conspires to 
commit, or attempts to commit, aid or abet in the violation of a 
provision of this chapter or a valid order or rule of the 
commissioner or board issued hereunder, whether individually or 
in connection with one or more persons or as principal, agent, 
or accessory, shall be guilty of a misdemeanor, and every person 
who falsely, fraudulently, forcibly, or willfully induces, 
causes, coerces, requires, permits, or directs another to 
violate a provision of this chapter, is likewise guilty of a 
misdemeanor.  Every distinct violation is a separate offense. 
    Sec. 20.  Minnesota Statutes 1986, section 221.291, 
subdivision 2, is amended to read:  
    Subd. 2.  [DIRECTING ANOTHER TO VIOLATE.] Except as 
provided in subdivisions 3 and 4 and 5, and sections 221.036 and 
609.671, a person employing or otherwise directing the driver of 
a vehicle to require or knowingly to permit the operation of the 
vehicle upon a highway in a manner contrary to this chapter is 
guilty of a misdemeanor. 
    Sec. 21.  Minnesota Statutes 1987 Supplement, section 
221.291, subdivision 3, is amended to read: 
    Subd. 3.  [TRANSPORTATION OF HAZARDOUS MATERIALS.] Except 
as provided in sections 221.036 and 609.671, a person who ships, 
transports, or offers for transportation hazardous waste, 
hazardous material, or hazardous substances in violation of a 
provision of this chapter or a rule or order of the commissioner 
or board adopted or issued under this chapter which specifically 
applies to the transportation of hazardous material, hazardous 
waste, or hazardous substances is guilty of a misdemeanor and 
upon conviction may be fined up to the maximum fine which may be 
imposed for a misdemeanor for each violation. 
    Sec. 22.  Minnesota Statutes 1986, section 221.296, 
subdivision 4, is amended to read:  
    Subd. 4.  [PETITION FOR PERMITS.] A person desiring to 
operate as a local cartage carrier shall file a petition with 
the board commissioner specifying the service offered, the name 
and address of the petitioner, the names and addresses of the 
officers, if a corporation, and other information as the 
board and commissioner may require.  The board, after notice to 
interested parties and a hearing, shall issue the permit upon 
compliance with laws and rules relating to it unless it finds 
that the area to be served has a sufficient number of local 
cartage carriers to fully and adequately meet the needs of the 
area, that the petitioners' vehicles do not meet the safety 
standards adopted by rule by the commissioner, or that 
petitioner is not fit and able to conduct the proposed 
operations.  A permit once granted continues in full force and 
effect until abandoned or unless suspended or revoked, subject 
to compliance by the permit holder with the applicable 
provisions of law and rules of the board and commissioner 
governing local cartage carriers. 
    Sec. 23.  Minnesota Statutes 1987 Supplement, section 
221.296, subdivision 5, is amended to read:  
    Subd. 5.  [PERMIT FEES.] Upon filing a petition for a 
permit the petitioner shall pay to the commissioner as a fee for 
the issuance of the permit, the sum of $150, and shall 
thereafter pay an annual renewal fee of $75 plus $5 per motor 
vehicle if the local cartage carrier operates less than five 
motor vehicles, or $100 plus $5 per motor vehicle if the local 
cartage carrier operates at least five but less than 15 motor 
vehicles, or $150 plus $5 per motor vehicle if the local cartage 
carrier operates 15 or more vehicles.  Upon issuance of the 
permit the commissioner shall assign the carrier a permit 
number, which must be painted or prominently displayed on both 
sides of vehicles used by the local cartage carrier under 
authority of the permit. 
    The commissioner shall issue a distinguishing annual 
identification card for each vehicle or power unit for which a 
permit has been issued.  The identification card must be carried 
in the vehicle or power unit to which it has been assigned.  An 
identification card may be reassigned to another vehicle or 
power unit upon application of the permit holder and payment of 
a transfer fee of $10.  An identification card issued under this 
section is effective only for the period for which the permit is 
effective. 
    Sec. 24.  Minnesota Statutes 1986, section 221.296, 
subdivision 8, is amended to read:  
    Subd. 8.  [PERMITS TRANSFERABLE.] Permits, issued under the 
provisions of this section may be transferred but only upon the 
order of the board approving same after notice and hearing. 
    The proposed seller and buyer of a permit, shall file a 
joint verified petition with the board commissioner setting 
forth the legal name and address of the parties, the permit 
number and the description of the authority which the parties 
seek to sell, a verified statement of the reasons for the 
proposed sale, a verified statement of all outstanding claims of 
creditors which are attributable to the business conducted under 
said permit, a copy of the contract of sale and financial 
statement with balance sheet and income statement, if existent, 
of the buyer and the seller.  After notice to interested parties 
and a hearing the board shall not make an order approving and 
allowing the sale unless the board finds that the buyer is fit 
and able to conduct the business authorized under said permit, 
that the vehicles the buyer proposes to use in conducting such 
business meet the safety standards of the board commissioner, 
that the price paid for the purchase of the permit is not 
disproportionate to the reasonable value of the permit 
considering all assets and goodwill sold, that the proposed 
sale is in the best interest of the shipping public, and that 
the seller has legally engaged in the transportation of property 
or freight for hire on a meaningful basis as determined by the 
board within the two year period immediately preceding the sale 
as proven by accurate and complete bills of lading, company 
records, operation records, or other relevant evidence.  For 
purposes of determining said two year period, any divesting of 
interest or control shall be deemed the date of the sale and the 
board shall look to the substance of the transaction rather than 
the form.  Any agreement for the transfer or sale of a permit 
shall be reported and filed with the board within 30 days of 
such agreement. 
    If any authority to operate as a local cartage carrier, is 
held by a corporation, any sale, assignment, pledge or other 
transfer of such stock interest in the corporation which will 
accomplish a substantial or material change or transfer of the 
majority ownership of said corporation, as exercised through its 
stockholders, shall be reported in the manner prescribed by the 
rules of the board within 30 days after said sale, assignment, 
pledge or other transfer of stock.  The board shall then make a 
finding whether or not said stock transfer does, in fact, 
constitute a sale, or other transfer of the permit of said 
corporation to a new party or parties and, if they so find, then 
the continuance of the permit issued to said corporation shall 
only be upon the corporation's complying with the standards and 
procedures otherwise imposed by this section. 
    The board shall allow a bona fide transfer of a permit, ex 
parte without hearing where the transferee of said permit is in 
fact a member or members of the transferor's immediate family.  
For the purpose of this paragraph immediate family shall consist 
only of the lawful spouse, adult child or children, brother or 
sister of the transferor.  A transfer pursuant to this paragraph 
shall include: 
    (1) transfer to a corporation the stock of which is wholly 
owned by the transferor or immediate family members. 
    (2) transfer to a partnership or partner consisting solely 
of the immediate family as defined in this paragraph. 
    Sec. 25.  [221.605] [COMPLIANCE BY CARRIERS.] 
    Subdivision 1.  [FEDERAL REGULATIONS.] Interstate carriers 
and private carriers engaged in interstate commerce shall comply 
with the federal motor carrier safety regulations, Code of 
Federal Regulations, title 49, parts 390 to 398, and with the 
rules of the commissioner concerning inspections, vehicle and 
driver out-of-service restrictions and requirements, and 
vehicle, driver, and equipment checklists. 
    Subd. 2.  [INVESTIGATION, PROSECUTION, AND 
ENFORCEMENT.] The commissioner shall investigate the operations 
of carriers engaged in interstate commerce in Minnesota and 
their compliance with federal regulations, this chapter, and the 
rules of the commissioner, and may institute and prosecute 
proceedings in the proper district court for their enforcement. 
    Sec. 26.  Minnesota Statutes 1986, section 221.81, 
subdivision 3a, is amended to read:  
    Subd. 3a.  [INSURANCE.] Each building mover shall have in 
effect the following:  
    (a) comprehensive general liability insurance including 
completed operations, underground property damage, and collapse 
coverage in the amount of at least $500,000 for bodily injury or 
property damage; and 
    (b) motor vehicle liability insurance in the amount of at 
least $500,000 for bodily injury or property damage.  
    The insurance must be written by an insurer licensed to do 
business in the state of Minnesota.  Each building mover shall 
file with the commissioner a certificate evidencing the 
insurance.  The insurance policy must provide that the policy 
may not be canceled without the insurer first giving 30 days 
written notice to the commissioner of the impending cancellation.
    On request of the commissioner, the insurer must furnish a 
duplicate original of the policy and all endorsements to the 
policy. 
    Sec. 27.  [REPEALER.] 
    Minnesota Statutes 1986, section 13.72, subdivision 3, is 
repealed. 
    Approved April 18, 1988