Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 600-H.F.No. 2368 
           An act relating to motor carriers; providing for the 
          expiration of certificates and permits as regular and 
          irregular route carriers of property, and for their 
          conversion to class I certificates and class II 
          permits; specifying operating authority granted by 
          each class; restricting transfer of certain operating 
          authority; prohibiting the lease of class I 
          certificates and class II permits; increasing 
          registration fees for vehicles of motor carriers; 
          appropriating money; amending Minnesota Statutes 1990, 
          sections 221.011, subdivisions 7, 8, 9, 14, and by 
          adding subdivisions; 221.036, subdivisions 1 and 3; 
          221.041; 221.051; 221.061; 221.071, subdivision 1; 
          221.111; 221.121, subdivisions 1, 4, 6a, and by adding 
          subdivisions; 221.131, subdivisions 2 and 3; 221.141, 
          subdivision 4; and 221.151, by adding a subdivision; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 221; repealing Minnesota Statutes 1990, 
          section 221.011, subdivision 11. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 221.011, 
subdivision 7, is amended to read: 
    Subd. 7.  "Certificate" means the certificate of public 
convenience and necessity which may be issued under the 
provisions of sections 221.011 to 221.291 section 221.071 to a 
regular route common carrier of passengers, a class I motor 
carrier, or a petroleum carrier. 
    Sec. 2.  Minnesota Statutes 1990, section 221.011, 
subdivision 8, is amended to read: 
    Subd. 8.  "Permit" means the license, or franchise, which 
may be issued to motor carriers other than regular route common 
carriers of passengers, class I common carriers, and petroleum 
carriers, under the provisions of this chapter, authorizing the 
use of the highways of Minnesota for transportation for hire.  
    Sec. 3.  Minnesota Statutes 1990, section 221.011, 
subdivision 9, is amended to read: 
    Subd. 9.  "Regular route common carrier" means a person who 
holds out to the public as willing, for hire, to transport 
passengers or property by motor vehicle between fixed termini 
over a regular route upon the public highways. 
    Sec. 4.  Minnesota Statutes 1990, section 221.011, 
subdivision 14, is amended to read: 
    Subd. 14.  "Permit carrier" means a motor carrier embraced 
within this chapter other than regular route common carriers of 
passengers, class I carriers, and petroleum carriers. 
    Sec. 5.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 35.  [TRUCKLOAD FREIGHT.] "Truckload freight" means 
freight collected by a motor carrier (1) from one consignor at a 
single place and delivered directly to one or more consignees, 
or (2) from one or more consignors and delivered directly to one 
consignee at a single place. 
    Sec. 6.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 36.  [LESS-THAN-TRUCKLOAD FREIGHT.] 
"Less-than-truckload freight" means freight carried by a motor 
carrier that is not truckload freight. 
    Sec. 7.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 37.  [CERTIFICATED CARRIER.] "Certificated carrier" 
means a motor carrier holding a certificate issued under section 
221.071. 
    Sec. 8.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 38.  [CLASS I CARRIER.] "Class I carrier" means a 
person who has been issued a certificate under section 221.071 
to operate as a class I carrier. 
    Sec. 9.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 39.  [CLASS II CARRIER.] "Class II carrier" means a 
person who has been issued a permit under section 221.121, 
subdivisions 6c to 6e, to operate as a class II carrier.  Class 
II carrier includes persons who have been issued either a class 
II-T or class II-L permit, or both. 
    Sec. 10.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 40.  [TERMINAL.] "Terminal" means (1) a facility that 
a motor carrier owns, leases, or otherwise controls, and uses to 
load, unload, dispense, receive, interchange, gather, or 
otherwise physically handle freight for shipment, or (2) any 
other location at which freight is exchanged by motor carriers 
between vehicles.  "Terminal" does not mean a public warehouse 
with a storage capacity of at least 5,000 square feet that was 
licensed under chapter 231 on or before March 1, 1992. 
    Sec. 11.  Minnesota Statutes 1990, section 221.011, is 
amended by adding a subdivision to read: 
    Subd. 41.  [TEMPERATURE-CONTROLLED COMMODITY.] 
"Temperature-controlled commodity" means a commodity requiring 
protection from heat or cold that is transported with or without 
other commodities, provided that all such commodities move in 
mechanically temperature controlled vehicles. 
    Sec. 12.  Minnesota Statutes 1990, section 221.036, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY TO ISSUE PENALTY ORDERS.] 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 221.041, 
subdivision 3; (3) section 221.081; (4) section 221.151; (5) 
section 221.171; (6) section 221.035, of a material term or 
condition of a license issued under that section 221.035,; or of 
a rule or order of the commissioner relating to the 
transportation of hazardous waste.  An order must be issued as 
provided in this section. 
    Sec. 13.  Minnesota Statutes 1990, 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 of section 221.021; 221.041, 
subdivision 3; 221.081; or 221.171, identified during a single 
inspection, audit, or investigation. 
    (b) The commissioner may issue an order assessing a penalty 
up to a maximum of $10,000 for all violations of section 221.035 
identified during a single inspection or audit. 
    (b) (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. 
    Sec. 14.  Minnesota Statutes 1990, section 221.041, is 
amended to read: 
    221.041 [RATE-MAKING POWERS.] 
    Subdivision 1.  [CONSIDERATIONS; PROCEDURES.] The board 
shall fix and establish just, reasonable, and nondiscriminatory 
rates, fares, charges, and the rules and classifications 
incident to tariffs for regular route common carriers and 
petroleum certificated carriers.  In prescribing rates, fares, 
charges, classifications, and rules for the carrying of freight, 
persons, or property, the board shall take into consideration 
the effect of the proposed rates or fares upon the users of the 
service and upon competitive carriers by motor vehicle and rail 
and, insofar as possible, avoid rates and fares which will 
result in unreasonable and destructive competition.  In making 
its determination, the board shall consider, among other things, 
the cost of the service rendered by the carrier, including an 
adequate sum for maintenance and depreciation, and an adequate 
operating ratio under honest, economical, and efficient 
management.  No rate or fares may be put into effect or changed 
or altered except upon hearing duly had and an order therefor by 
the board, or except as herein otherwise provided.  The board 
may authorize rate changes ex parte which, in its opinion, are 
not of sufficient import to require a hearing.  In an emergency, 
the board may order a change in existing rates or fares without 
a hearing.  In instances of ex parte or emergency orders, the 
board shall, within five days, serve a copy of its order 
granting the change in rates upon parties which the board deems 
interested in the matter, including competing carriers.  An 
interested party shall have 30 days from the date of the 
issuance of the order to object to the order.  If objection is 
made, the board shall determine whether a hearing is necessary 
for resolution of the material issues relating to the proposed 
change in rates.  On finding that a hearing is unnecessary for 
this purpose, the board, no sooner than 30 days after issuing 
its initial order granting the change in rates, may enter an 
order finally disposing of the rate change application.  On 
determining otherwise, the board may take final action on the 
rate change application and the objections to it only after a 
contested case hearing has been conducted under chapter 14. 
    Subd. 2.  [FILING.] A regular route common carrier and a 
petroleum certificated carrier, upon approval by the board of 
its rates, fares, charges, and rules and classifications 
incident to tariffs shall file its rates, fares, charges, and 
tariffs with the commissioner.  Filings must be prepared and 
filed in the manner prescribed by the commissioner.  The 
commissioner may not accept for filing rates, fares, charges, 
and tariffs which have not been approved by the board.  
    Subd. 3.  [PROHIBITIONS; COMPENSATION AND TIME SCHEDULES.] 
No regular route common carrier or petroleum certificated 
carrier may charge or receive a greater or less or different 
compensation for the transportation of passengers or property or 
for service in connection therewith than the rates, fares, and 
charges and the rules and classifications governing the same 
which have been duly approved therefor by order of the board; 
nor may.  A regular route common carrier or petroleum 
certificated carrier may not refund or remit in any manner or by 
any device a portion of those rates, fares, and charges required 
to be collected under the board's order; nor extend to a shipper 
or person a privilege or facilities in connection with the 
transportation of passengers or property except as are 
authorized under the order of the board.  No passenger-carrying 
regular route common carrier may alter or change its time 
schedules except upon order of the board.  The order may be 
issued ex parte unless the board decides that the public 
interest requires that a hearing be had thereon held. 
    Subd. 4.  [NONAPPLICABILITY.] This section does not apply 
to any regular-route passenger transportation being performed 
with operating assistance provided by the regional transit board.
    Sec. 15.  Minnesota Statutes 1990, section 221.051, is 
amended to read: 
    221.051 [ABANDONMENT OR DISCONTINUANCE OF SERVICE.] 
    No regular route common carrier shall of passengers or 
class I carrier may abandon or discontinue any service required 
under its certificate without an order of the board therefor, 
except in cases of emergency or conditions beyond its control. 
    A passenger regular route common carrier may depart from 
the route over which it is authorized to operate for the purpose 
of transporting chartered or excursion parties to any point in 
the state of Minnesota on such terms and conditions as the board 
may prescribe. 
    Sec. 16.  Minnesota Statutes 1990, 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 of passengers, a class I carrier, 
or petroleum carrier, or an extension of or amendment to that 
certificate, shall file a petition with the 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. 17.  Minnesota Statutes 1990, section 221.071, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONSIDERATIONS; TEMPORARY CERTIFICATES; 
AMENDING.] If the board finds from the evidence that the 
petitioner is fit and able to properly perform the services 
proposed and that public convenience and necessity require the 
granting of the petition or a part of the petition, it shall 
issue a certificate of public convenience and necessity to the 
petitioner.  In determining whether a certificate should be 
issued, the board shall give primary consideration to the 
interests of the public that might be affected, to the 
transportation service being furnished by a railroad which may 
be affected by the granting of the certificate, and to the 
effect which the granting of the certificate will have upon 
other transportation service essential to the communities which 
might be affected by the granting of the certificate.  The board 
may issue a certificate as applied for or issue it for a part 
only of the authority sought and may attach to the authority 
granted terms and conditions as in its judgment public 
convenience and necessity may require.  If the petitioner is 
seeking authority to operate regular-route transit service 
wholly within the seven-county metropolitan area with operating 
assistance provided by the regional transit board, the board 
shall consider only whether the petitioner is fit and able to 
perform the proposed service.  The operating authority granted 
to such a petitioner must be the operating authority for which 
the petitioner is receiving operating assistance from the 
regional transit board.  A carrier receiving operating 
assistance from the regional transit board may amend the 
certificate to provide for additional routes by filing a copy of 
the amendment with the board, and approval of the amendment by 
the board is not required if the additional service is provided 
with operating assistance from the regional transit board.  
    The board may grant a temporary certificate, ex parte, 
valid for a period not exceeding 180 days, upon a showing that 
no regular route common carrier or petroleum carrier is then 
authorized to serve on the route sought, that no other petition 
is on file with the board covering the route, and that a need 
for the proposed service exists. 
    A certificate issued to a regular route common carrier or 
petroleum carrier may be amended by the board on ex parte 
petition and payment of a $25 fee to the commissioner, to grant 
an additional or alternate route if there is no other means of 
transportation over the proposed additional route or between its 
termini, and the proposed additional route does not exceed ten 
miles in length. 
    Sec. 18.  [221.072] [CLASS I CARRIERS.] 
    Subdivision 1.  [AUTHORITY.] The board may issue a class I 
certificate only to a motor carrier who owns, leases, or 
otherwise controls more than one terminal.  Except as provided 
in subdivision 2, a motor carrier may not own, operate, or 
otherwise control more than one terminal without having obtained 
a class I certificate from the board.  For purposes of this 
section, utilization of a local cartage carrier by a class I 
carrier constitutes ownership, lease, or control of a terminal. 
    Subd. 2.  [EXCEPTIONS.] This section does not apply to any 
carrier listed in section 221.111, clauses (3) to (9). 
    Subd. 3.  [OPERATION.] A class I certificate authorizes the 
certificate holder to transport both truckload and 
less-than-truckload freight to and from points named in the 
certificate, over routes described in the certificate.  A holder 
of a class I certificate may transfer freight to and from 
another class I carrier. 
    Sec. 19.  Minnesota Statutes 1990, section 221.111, is 
amended to read: 
    221.111 [PERMITS TO OTHER MOTOR CARRIERS.] 
    Motor carriers other than regular route common carriers, 
petroleum certificated carriers, and local cartage carriers, 
shall obtain a permit in accordance with section 221.121, 
including irregular route carriers, livestock carriers, contract 
carriers, charter carriers, and courier service carriers.  The 
board shall issue only the following kinds of permits: 
    (1) class II-T permits; 
    (2) class II-L permits; 
    (3) livestock carrier permits; 
    (4) contract carrier permits; 
    (5) charter carrier permits; 
    (6) courier service carrier permits; 
    (7) local cartage carrier permits; 
    (8) household goods mover permits; and 
    (9) temperature-controlled commodities permits. 
    Sec. 20.  Minnesota Statutes 1990, section 221.121, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PERMIT CARRIERS.] (a) A person desiring to 
operate as a permit carrier, except as a livestock carrier, or a 
local cartage carrier provided in subdivision 5 or section 
221.296, shall file a petition with the 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. 21.  Minnesota Statutes 1990, section 221.121, 
subdivision 4, is amended to read: 
    Subd. 4.  [EXTENSIONS OF AUTHORITY.] The board may grant 
extensions of authority ex parte after due notice of a petition 
has been published.  A party desiring to protest the petition 
shall file its protest by mail or in person within 20 days of 
the date of notice, except that no protest may be filed against 
an application submitted under subdivision 6f.  If a timely 
filed protest is received, the matter must be placed on the 
calendar for hearing.  If a timely protest is not received, the 
board may issue its order ex parte. 
    Sec. 22.  Minnesota Statutes 1990, section 221.121, 
subdivision 6a, is amended to read: 
    Subd. 6a.  [HOUSEHOLD GOODS CARRIER.] A person who desires 
to hold out or to operate as a carrier of household goods shall 
follow the procedure established in subdivision 1, and shall 
specifically request an irregular route common carrier a 
household goods mover permit with authority to transport 
household goods.  The permit granted by the board to a person 
who meets the criteria established in this subdivision and 
subdivision 1 shall authorize the person to hold out and to 
operate as an irregular route common carrier of a household 
goods mover.  A person who provides or offers to provide 
household goods packing services and who makes any arrangement 
directly or indirectly by lease, rental, referral, or by other 
means to provide or to obtain drivers, vehicles, or 
transportation service for moving household goods, must have an 
irregular route common carrier permit with authority to 
transport a household goods mover permit.  
    Sec. 23.  Minnesota Statutes 1990, section 221.121, is 
amended by adding a subdivision to read: 
    Subd. 6c.  [CLASS II CARRIERS.] A person desiring to 
operate as a permit carrier, other than as a carrier listed in 
section 221.111, clauses (3) to (9), shall follow the procedure 
established in subdivision 1 and shall specify in the petition 
whether the person is seeking a class II-T or class II-L 
permit.  If the person meets the criteria established in 
subdivision 1, the board shall grant the class II-T or class 
II-L permit or both.  A class II permit holder may not own, 
lease, or otherwise control more than one terminal.  The board 
may not issue a class II permit to a motor carrier who owns, 
leases, or otherwise controls more than one terminal.  For 
purposes of this section:  (1) utilization of a local cartage 
carrier by a class II carrier constitutes ownership, lease, or 
control of a terminal; and (2) "terminal" does not include a 
terminal used by a permit holder who also holds a class I 
certificate, household goods permit, or temperature-controlled 
commodities permit for the unloading, docking, handling, and 
storage of freight transported under the certificate, household 
goods permit, or temperature-controlled commodities permit. 
    Sec. 24.  Minnesota Statutes 1990, section 221.121, is 
amended by adding a subdivision to read: 
    Subd. 6d.  [TEMPERATURE-CONTROLLED COMMODITIES CARRIERS.] A 
person who desires to hold out or to operate as a carrier of 
temperature-controlled commodities shall follow the procedure 
established in subdivision 1 and shall specifically request a 
temperature-controlled commodities permit.  The permit granted 
by the board to a person who meets the criteria established in 
subdivision 1 shall authorize the person to hold out and to 
operate as a carrier of temperature-controlled commodities. 
    Sec. 25.  Minnesota Statutes 1990, section 221.121, is 
amended by adding a subdivision to read: 
    Subd. 6e.  [CLASS II-T PERMITS.] A holder of a class II-T 
permit may transport truckload freight to and from any point 
named in the permit without restriction as to routes, schedules, 
or frequency of service. 
    Sec. 26.  Minnesota Statutes 1990, section 221.121, is 
amended by adding a subdivision to read: 
    Subd. 6f.  [CLASS II-L PERMITS.] (a) A motor carrier with a 
class II-L permit may transport less-than-truckload freight as 
provided in this subdivision. 
    (b) A motor carrier with a class II-L permit may transport 
less-than-truckload freight to and from any point named in the 
permit, without restriction as to routes, schedules, or 
frequency of service. 
    (c) A motor carrier with a class II-L permit may transport 
less-than-truckload freight to and from points within the 
geographic area the carrier was authorized to serve on December 
31, 1992, that were not listed in the carrier's permit.  Service 
by a carrier under this paragraph may be provided no more often 
than on 24 days in a 12-month period. 
    (d) A motor carrier described in paragraph (c) may amend 
the carrier's permit to add points within the geographic area 
the carrier was authorized to serve on December 31, 1992.  The 
carrier must submit to the commissioner an application on a form 
provided by the commissioner; the application must name the 
points proposed to be served and include evidence of need for 
the proposed service.  Evidence of need may consist of a letter 
from a consignor attesting to need for the proposed service and 
intent to use the proposed service.  The commissioner shall 
transmit the application to the board.  The board shall publish 
notice of an approved application in the board's weekly 
calendar.  Failure by the board to deny the application within 
ten days after receipt of the application from the commissioner 
constitutes approval of the application. 
    Sec. 27.  Minnesota Statutes 1990, section 221.131, 
subdivision 2, is amended to read: 
    Subd. 2.  [PERMIT CARRIERS; ANNUAL VEHICLE REGISTRATION.] 
The permit holder shall pay an annual registration fee 
of $20 $40 on each vehicle, including pickup and delivery 
vehicles, operated by the holder under authority of the permit 
during the 12-month period or fraction of the 12-month period.  
Trailers and semitrailers used by a permit holder in combination 
with power units may not be counted as vehicles in the 
computation of fees under this section if the permit holder pays 
the fees for power units.  The commissioner shall furnish a 
distinguishing annual identification card for each vehicle or 
power unit for which a fee has been paid.  The identification 
card must at all times 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 a transfer fee of $10.  An identification 
card issued under the provisions of this section is valid only 
for the period for which the permit is effective.  The name and 
residence of the permit holder must be stenciled or otherwise 
shown on the outside of both doors of each registered vehicle 
operated under the permit.  A fee of $10 is charged for the 
replacement of an unexpired identification card that has been 
lost or damaged.  The total annual registration fee per vehicle 
for class II-T, class II-L, household goods mover, and 
temperature controlled commodities permit holders, or any 
combination thereof, shall not exceed $40 per vehicle. 
    Sec. 28.  Minnesota Statutes 1990, section 221.131, 
subdivision 3, is amended to read: 
    Subd. 3.  [CERTIFICATE CARRIERS; ANNUAL VEHICLE 
REGISTRATION.] Regular route common carriers and petroleum 
Certificated carriers, operating under sections 221.011 to 
221.291, shall annually pay into the treasury of the state of 
Minnesota an annual registration fee of $20 $40 for each 
vehicle, including pickup and delivery vehicles, operated during 
a calendar year.  The commissioner shall issue distinguishing 
identification cards as provided in subdivision 2.  
    Sec. 29.  Minnesota Statutes 1990, section 221.141, 
subdivision 4, is amended to read: 
    Subd. 4.  [IRREGULAR ROUTE CARRIERS OF HOUSEHOLD GOODS 
MOVERS.] An irregular route common carrier of A household goods 
mover shall maintain in effect cargo insurance or cargo bond in 
the amount of $50,000 and shall file with the commissioner a 
cargo certificate of insurance or cargo bond.  A cargo 
certificate of insurance must conform to Form H, Uniform Motor 
Cargo Certificate of Insurance, described in Code of Federal 
Regulations, title 49, part 1023.  A cargo bond must conform to 
Form J, described in Code of Federal Regulations, title 49, part 
1023.  Both Form H and Form J are incorporated by reference.  
The cargo certificate of insurance or cargo bond must be issued 
in the full and correct name of the person, corporation, or 
partnership to whom the irregular route common carrier of 
household goods mover permit was issued and whose operations are 
being insured.  A carrier that was issued a permit as an 
irregular route common carrier of household goods before August 
1, 1989, shall obtain and file a cargo certificate of insurance 
or bond within 90 days of August 1, 1989.  
    Sec. 30.  Minnesota Statutes 1990, section 221.151, is 
amended by adding a subdivision to read: 
    Subd. 3.  [TRANSFER OF CERTAIN AUTHORITY.] Operating 
authority described in section 26, paragraph (c), that has not 
been added to the motor carrier's permit under section 26, 
paragraph (d), may not be transferred to any person except a 
member of the transferor's immediate family as defined in 
subdivision 2. 
    Sec. 31.  [221.152] [CONVERSION OF PERMITS.] 
    Subdivision 1.  [EXPIRATION OF OPERATING AUTHORITY.] Except 
as provided in subdivision 3, paragraph (c), the following 
certificates and permits in effect on January 1, 1993, and all 
operating authority granted by those certificates and permits, 
expire on January 1, 1993: 
    (1) all certificates authorizing operation as a regular 
route common carrier of property, other than petroleum carrier 
certificates; and 
    (2) all permits authorizing operation as an irregular route 
common carrier, except those carriers listed in section 221.111, 
clauses (3) to (9). 
    Subd. 2.  [CONVERSION.] All holders of certificates and 
permits that expire on January 1, 1993, under subdivision 1, who 
wish to continue providing the service authorized by those 
certificates and permits, must convert the certificates and 
permits into class I or class II certificates or permits by that 
date. 
    Subd. 3.  [ISSUANCE OF NEW CERTIFICATES AND PERMITS.] (a) 
By September 1, 1992, a motor carrier described in subdivision 2 
must submit to the commissioner an application for conversion.  
The application must be on a form prescribed by the commissioner 
and must be accompanied by an application fee of $50.  The 
application must state:  (1) the name and address of the 
applicant; (2) the identifying number of the expiring 
certificates or permits the applicant wishes to convert; and (3) 
other information the commissioner deems necessary.  An 
applicant for a class II-L permit must also submit a statement 
of the extent of operating authority that the applicant holds 
under the applicant's existing permit or permits and wishes to 
include in the new permit or permits, and evidence of the 
operating authority actually exercised as described in section 
221.151, subdivision 1. 
    (b) The commissioner shall transmit to the board all 
applications that meet the requirements of paragraph (a).  The 
board shall develop an expedited process for hearing and ruling 
on applications submitted under this subdivision.  Within 60 
days after receiving an application under this subdivision, the 
board shall issue an order approving or denying the issuance of 
a new certificate or permit.  The board shall issue the 
certificate or permit requested in the application if it finds 
that the issuance is authorized under this section.  An 
application submitted to the commissioner under this subdivision 
by September 1, 1992, is deemed approved by the board unless by 
November 1, 1992, or a later date determined under paragraph 
(c), the board has issued an order denying the application. 
    (c) If the board determines that a conversion of a 
certificate or permit under this subdivision requires a longer 
period of deliberation than that provided in paragraph (b), the 
board may prescribe a date:  (1) on which a class I certificate 
or class II permit becomes effective; (2) on which the 
application for conversion becomes effective unless denied by 
the board; and (3) on which the certificate or permit being 
converted expires.  The board may not prescribe a date under 
clauses (1) to (3) that is later than June 30, 1993. 
    Subd. 4.  [AUTHORITY CONVERTED.] (a) The board shall not 
issue any certificate or permit under this subdivision that 
authorizes the carrier to serve any geographic area or transport 
any commodities that the carrier was not authorized to serve or 
transport under the expiring certificate or permit. 
    (b) Notwithstanding paragraph (a), the board shall not 
grant a class II-L permit to an applicant under this subdivision 
that names points that the permit holder did not serve at any 
time in the two years before the effective date of this section. 
    (c) When a person who had been issued before January 1, 
1993, an irregular route common carrier permit with authority to 
transport household goods applies for conversion of that permit 
to a class II permit under subdivision 3, the board shall issue 
the applicant, along with a class II permit, a household goods 
mover permit with the same operating authority to transport 
household goods as was granted under the person's irregular 
route common carrier permit. 
    (d) When a person who, before January 1, 1993, held an 
irregular route common carrier permit under which the person 
transported temperature-controlled commodities applies for 
conversion of that permit to a class II permit under subdivision 
3, the board shall issue the applicant a temperature-controlled 
commodities permit with authority to operate in the same 
geographic area authorized under the person's irregular route 
common carrier permit and a class II permit. 
    (e) A permit holder that received its permit less than 24 
months prior to the effective date of this act shall be 
authorized by the board to operate for a period of up to 24 
months or December 31, 1993, whichever occurs first.  Prior to 
January 1, 1994, the permit holder shall follow the procedures 
for conversion of permits contained in section 31.  The board 
shall extend the permit up to June 30, 1994, as required to 
convert the permit. 
    Sec. 32.  [TRANSITION.] 
    By August 1, 1992, the commissioner shall send a notice by 
certified mail, return receipt requested, to all holders of 
certificates and permits that expire January 1, 1993, under this 
act.  The notice must summarize the requirements for conversion 
of the certificates and permits and include an application form 
for conversion.  By August 18, 1992, the commissioner shall send 
a second notice by certified mail, return receipt requested, to 
all certificate and permit holders who have not submitted an 
application for conversion. 
    Sec. 33.  [APPROPRIATION.] 
    $332,000 is appropriated from the trunk highway fund for 
the fiscal year ending June 30, 1993, for the purpose of 
implementing sections 1 to 32.  This appropriation is available 
during the fiscal year ending June 30, 1992.  Of this amount, 
$307,000 is appropriated to the commissioner of transportation 
and $25,000 is appropriated to the transportation regulation 
board.  The complement of the department of transportation is 
increased by seven positions. 
    Sec. 34.  [REPEALER.] 
    Minnesota Statutes 1990, section 221.011, subdivision 11, 
is repealed. 
    Sec. 35.  [EFFECTIVE DATE.] 
    Sections 1 to 30 and 34 are effective January 1, 1993.  
Sections 31 and 32 are effective the day following final 
enactment.  Section 33 is effective July 1, 1992. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 8:38 a.m.