HOUSE BILL No. 5494


     December 12, 2001, Introduced by Rep. Gilbert and referred to the Committee on Transportation.


        A bill to amend 1933 PA 254, entitled

   "The motor carrier act,"

   by amending the title and sections 1, 2, and 3 of article I,

   sections 1, 3, 4, 5, 6, 7, 7a, 7c, 9, 10, 11, 13, and 14 of arti-

   cle II, sections 2 and 6 of article IV, and sections 10, 10a, and

   14 of article V (MCL 475.1, 475.2, 475.3, 476.1, 476.3, 476.4,

   476.5, 476.6, 476.7, 476.7a, 476.7c, 476.9, 476.10, 476.11,

   476.13, 476.14, 478.2, 478.6, 479.10, 479.10a, and 479.14), the

   title and sections 1, 4, 6, 9, 10, 11, 13, and 14 of article II

   and section 10 of article V as amended by 1982 PA 399 and

   sections 1, 2, and 3 of article I, sections 3, 5, 7, and 7a of

   article II, section 2 of article IV, and sections 10a and 14 of

   article V as amended and section 7c of article II as added by

   1993 PA 352; and to repeal acts and parts of acts.




   04762'01                                                 TJS                                   2

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
                                    TITLE

 2
           An act to promote safety upon and conserve the use of public

 3
      highways of the state; to provide for the supervision, regula-

 4
      tion, and control of the use of such highways by all motor vehi-

 5
      cles operated by CERTAIN carriers of property for hire upon or

 6
      over such highways; to preserve, foster, and regulate transporta-

 7
      tion and permit the coordination of motor vehicle transportation

 8
      facilities; to provide for the supervision, regulation, and con-

 9
      trol of the use of such highways by all motor vehicles for hire

10
      for such purposes;  to classify and regulate carriers of property

11
      by motor vehicles for hire upon such public highways for such

12
      purposes;  to give the Michigan  Public Service Commission

13
      PUBLIC SERVICE COMMISSION jurisdiction and authority to prevent

14
      evasion of this act through any device or arrangement; to

15
       insure  ENSURE adequate transportation service; to give the com-

16
      mission jurisdiction and authority to fix, alter, regulate, and

17
      determine rates, fares, charges, classifications, and practices

18
      of  common  CERTAIN motor carriers for such purposes;  to require

19
      filing with the commission of rates, fares, and charges of con-

20
      tract carriers and to authorize the commission to prescribe mini-

21
      mum rates, fares, and charges, and to require the observance

22
      thereof;  to prevent unjust discrimination; to prescribe the

23
      powers and duties of  said  THE commission with reference there-

24
      to; to provide for appeals from the orders of such commission; to

25
      confer jurisdiction upon the circuit court for the county of

26
      Ingham for such appeals; to provide for the levy and collection



   04762'01                                   3

 1
      of certain privilege fees and taxes for such carriers for such

 2
      purposes and the disposition of such fees and taxes;  and  to

 3
      provide for the enforcement of this act; and to prescribe penal-

 4
      ties for its violations.

 5
                                  ARTICLE I

 6
           Sec. 1.  The words and phrases used in this act shall be

 7
      construed as follows, unless the context shall otherwise

 8
      require:

 9
           (a) "Motor vehicle" means any automobile, truck, trailer,

10
      semitrailer, truck tractor, road tractor, or any self-propelled

11
      or motor or mechanically driven vehicle, or any vehicle in any-

12
      wise attached to, connected with, or drawn by any self-propelled

13
      or motor or mechanically driven vehicle, used upon any public

14
      highway of this state for the purpose of transporting property.

15
           (b) "Public highway" means any public highway, road, street,

16
      avenue, alley, or thoroughfare of any kind  ,  or any bridge,

17
      tunnel, or subway used by the public.

18
           (c) "Commission" means the Michigan public service

19
      commission.

20
           (d) "Person" means any individual, partnership, association,

21
      or corporation, and their lessees, trustees, or receivers

22
      appointed by any court.

23
           (e) "For hire" means for remuneration or reward of any kind,

24
      paid or promised, either directly or indirectly.

25
            (f) "Motor common carrier of property" means any person who

26
      holds himself or herself out to the public as being engaged in

27
      the business of a for hire common carrier as at the common law,



   04762'01                                   4

 1
      either directly or through any device or arrangement, including

 2
      but not limited to those who operate over fixed routes or within

 3
      1 mile of a fixed route or between fixed termini, in the trans-

 4
      portation by motor vehicle from place to place upon or over the

 5
      highways of this state, the property, or any property, or any

 6
      class of property of others who may choose to employ the person.

 7
           (F)  (g)  "The public" means that part or portion of the

 8
      general public which the motor carrier is ready, able, willing,

 9
      and equipped to serve.

10
            (h) "Motor contract carrier of property" means any person

11
      providing motor vehicle transportation upon the highways of this

12
      state for a series of shipments under continuing agreement of not

13
      less than 1 year with a person which agreement provides for the

14
      assignment of motor vehicles exclusively for each such person

15
      while the vehicle is in the service of such person and which

16
      agreement is designed to meet the distinct needs of each such

17
      person.  Lower rates, in and of themselves, shall not constitute

18
      a distinct need.  A motor contract carrier that possesses a motor

19
      common carrier certificate of authority of that class set forth

20
      at section 5(6)(a) of article II may commingle authorized con-

21
      tract carrier shipments while providing common carrier service

22
      over fixed routes, without assigning any vehicle exclusively for

23
      the person or persons for whom contract service is provided.  A

24
      motor contract carrier authorized to transport packages or arti-

25
      cles weighing 70 pounds or less for 1 or more contract shippers

26
      may commingle such authorized packages or articles weighing 70

27
      pounds or less in the same vehicle with commodities transported



   04762'01                                   5

 1
      as a common or contract carrier, without assigning any vehicle

 2
      exclusively for the person or persons for whom contract service

 3
      is provided.  A motor contract carrier authorized to transport

 4
      coin, currency, or food stamps for 1 or more contract shippers,

 5
      may commingle such authorized coin, currency, or food stamps in

 6
      the same vehicle with commodities transported as a common or a

 7
      contract carrier, without assigning any vehicle exclusively for

 8
      the person for whom contract service is provided.

 9
           (G)  (i)  "Motor carrier" means  both motor common carriers

10
      of property and motor contract carriers of property  A PERSON WHO

11
      HOLDS HIMSELF OR HERSELF OUT TO THE PUBLIC AS BEING ENGAGED IN

12
      THE BUSINESS OF A FOR HIRE COMMON CARRIER, EITHER DIRECTLY OR

13
      THROUGH ANY DEVICE OR ARRANGEMENT, INCLUDING BUT NOT LIMITED TO

14
      THOSE WHO OPERATE OVER FIXED ROUTES OR WITHIN 1 MILE OF A FIXED

15
      ROUTE OR BETWEEN FIXED TERMINI, IN THE TRANSPORTATION OF HOUSE-

16
      HOLD GOODS BY MOTOR VEHICLE FROM PLACE TO PLACE UPON OR OVER THE

17
      HIGHWAYS OF THIS STATE. Motor carrier does not include a private

18
      carrier.

19
           (H)  (j)  "Certificate of authority" means a certificate

20
      issued to a motor common carrier authorizing a transportation

21
      service that serves a useful public purpose responsive to a

22
      public demand or need, which certificate is issued under the

23
      terms of this act.

24
            (k) "Permit" means the permit issued to motor contract car-

25
      riers under the terms of this act.

26
           (I)  (l)  "Through any device or arrangement" means any and

27
      all methods, means, agreements, circumstances, operations, or



   04762'01                                   6

 1
      subterfuges under which any person undertakes for hire to

 2
      conduct, direct, control, or otherwise perform the transportation

 3
      by motor vehicle of  property  HOUSEHOLD GOODS upon the public

 4
      highways of this state.

 5
           (J)  (m)  "Modified procedure" means that administrative

 6
      procedure by which the commission may consider evidence and tes-

 7
      timony submitted in the form of verified statements in motor car-

 8
      rier matters without the necessity for an oral hearing.

 9
            (n) "Occasional accommodative service" means service

10
      limited to operations conducted by persons not regularly engaged

11
      in the transportation business of a motor common carrier or a

12
      motor contract carrier.

13
           (K)  (o)  "Required public purpose" means a purpose for

14
      which an applicant can provide adequate, economic, safe, effec-

15
      tive, competitive, and equitable motor carrier service to satisfy

16
      a demonstrated public necessity, without creating excess

17
      service.

18
           (l)  (p)  "Fit", as applied to a proposed motor carrier

19
      service, means safe, suitable, and financially responsible as

20
      determined by the commission.

21
           (M)  (q)  "Private carrier" means any person engaged in the

22
      transportation of property by motor vehicle upon public highways

23
      where the transportation is incidental to, or in furtherance of,

24
      any commercial enterprise of the person, other than

25
      transportation.







   04762'01                                   7

 1
           (N)  (r)  "General rate" means a rate applicable to 2 or

 2
      more motor carriers which rate is filed pursuant to section 6b of

 3
      article V.

 4
           (O)  (s)  "Base rate, fare, or charge" means that nondis-

 5
      counted rate, fare, or charge specified in a carrier's rate

 6
      schedule on file with the commission.

 7
           (P)  (t)  "Predatory rate" means a rate that is below its

 8
      fully allocated costs.  As used in this subdivision, "fully allo-

 9
      cated costs" means total costs, including variable costs, plus an

10
      allocation of fixed costs.

11
           (Q) "HOUSEHOLD GOODS" MEANS:

12
           (i) PERSONAL EFFECTS AND PROPERTY USED OR TO BE USED IN A

13
      DWELLING WHEN A PART OF THE EQUIPMENT OR SUPPLY OF THAT DWELLING

14
      EXCEPT FOR PROPERTY MOVING FROM A FACTORY OR STORE UNLESS THE

15
      HOUSEHOLDER HAS PURCHASED THE PROPERTY WITH INTENT TO USE IN HIS

16
      OR HER DWELLING AND THE PROPERTY IS TRANSPORTED AT THE REQUEST

17
      OF, AND THE TRANSPORTATION CHARGES ARE PAID TO THE CARRIER BY,

18
      THE HOUSEHOLDER.

19
           (ii) FURNITURE, FIXTURES, EQUIPMENT, AND THE PROPERTY OF

20
      STORES, OFFICES, MUSEUMS, INSTITUTIONS, HOSPITALS, OR OTHER

21
      ESTABLISHMENTS WHEN A PART OF THE STOCK, EQUIPMENT, OR SUPPLY OF

22
      THE STORES, OFFICES, MUSEUMS, INSTITUTIONS, HOSPITALS, OR OTHER

23
      ESTABLISHMENTS EXCEPT FOR THE STOCK-IN-TRADE OF ANY ESTABLISH-

24
      MENT, WHETHER CONSIGNOR OR CONSIGNEE, OTHER THAN USED FURNITURE

25
      AND USED FIXTURES, UNLESS TRANSPORTED INCIDENTAL TO MOVING OF THE

26
      ESTABLISHMENT OR A PORTION OF THE ESTABLISHMENT FROM 1 LOCATION

27
      TO ANOTHER.



   04762'01                                   8

 1
           (iii) ARTICLES, INCLUDING OBJECTS OF ART, DISPLAYS, AND

 2
      EXHIBITS, WHICH BECAUSE OF THEIR UNUSUAL NATURE OR VALUE REQUIRE

 3
      THE SPECIALIZED HANDLING AND EQUIPMENT USUALLY EMPLOYED IN MOVING

 4
      HOUSEHOLD GOODS.

 5
           Sec. 2.  It is hereby declared to be the purpose and policy

 6
      of the legislature in enacting this law to confer upon the com-

 7
      mission the power and authority and to make it its duty to super-

 8
      vise and regulate the transportation of property by CERTAIN motor

 9
       vehicle  VEHICLES for hire upon and over the public highways of

10
      this state in all matters whether specifically mentioned herein

11
      or not, so as to:  (a) Relieve all future undue burdens and con-

12
      gestion on the highways arising by reason of the use of the high-

13
      ways by motor vehicles operated by motor carriers; (b) protect

14
      and conserve the highways and protect the safety and welfare of

15
      the traveling and shipping public in their use of the highways;

16
      (c) promote competitive and efficient transportation services;

17
      (d) meet the needs of motor carriers, shippers, receivers, and

18
      consumers; (e) allow a variety of quality, price, and service

19
      options to meet changing market demands and the diverse require-

20
      ments of the shipping public; (f) allow the most productive use

21
      of equipment and energy resources; (g) provide the opportunity

22
      for efficient and well-managed motor carriers to earn adequate

23
      profits and attract capital; (h) promote intermodal transporta-

24
      tion; (i) prevent unjust discrimination; (j) promote greater par-

25
      ticipation by minorities in the motor carrier system; (k) provide

26
      and maintain service to small communities and small shippers;

27
       (l)  AND prevent evasion of this act through any device or



   04762'01                                   9

 1
      arrangement.  ; (m) promote entrepreneurship in the motor carrier

 2
      industry by allowing greater contract carrier economic and entry

 3
      flexibility; and (n) promote the use of jointly considered and

 4
      initiated rates, classifications, divisions, allowances, charges,

 5
      or rules of motor carriers under commission approved agreements.

 6
           Sec. 3.  (1) To enable the provisions of service for which

 7
      there is an immediate and urgent need to a point or points or

 8
      within a territory having no motor  common  carrier service

 9
      capable of meeting that need, the commission may, upon a proper

10
      application, in its discretion and without hearings or other pro-

11
      ceedings, grant temporary authority for that service by a motor

12
       common  carrier.  by motor vehicle.  The temporary authority,

13
      unless suspended or revoked for good cause, shall be valid until

14
      the commission has made a determination to grant or deny per-

15
      manent authority.  If after hearing permanent authority is grant-

16
      ed, then corresponding temporary authority may be continued until

17
      the permanent authority becomes effective.  The grant of tempo-

18
      rary authority does not create a presumption that corresponding

19
      permanent authority will be granted thereafter.

20
           (2) The commission may, upon a proper application which

21
      shall include specific definition of permit sought, in its dis-

22
      cretion and without hearings or other proceedings, grant a tempo-

23
      rary permit for that service by a motor  contract  carrier.  by

24
      motor vehicle.  A temporary permit shall be granted, at the

25
      request of an applicant, in all cases, except when a safety or

26
      fitness related protest has been filed, which protest must

27
      include specific allegations necessary to state a prima facie



   04762'01                                  10

 1
      case and reasonably inform the commission and the applicant of

 2
      the nature of the allegations, with specific reference to the

 3
      section or sections of all related statutes, rules, orders, and

 4
      tariffs.  The temporary permit, unless suspended or revoked for

 5
      good cause, shall be valid until the commission has made a deci-

 6
      sion to grant or deny a permanent permit.  The grant of a tempo-

 7
      rary permit creates no presumption that a corresponding permanent

 8
      permit will be granted thereafter.

 9
           (3) Pending the determination of an application filed with

10
      the commission for approval of a consolidation or merger of the

11
      properties of 2 or more motor carriers, the commission may, in

12
      its discretion and without hearing or other proceedings, grant

13
      temporary approval, for a period not exceeding 60 days, of the

14
      operation of the motor carrier properties sought to be acquired

15
      by the person proposing in the pending application to acquire the

16
      properties, if it appears that failure to grant the temporary

17
      approval may result in destruction of or injury to the motor car-

18
      rier properties sought to be acquired  ,  or  to  interfere
   sub-

19
      stantially with their future usefulness in the performance of

20
      adequate and continuous service to the public.

21
           (4) Transportation service rendered under temporary author-

22
      ity shall be subject to all applicable provisions of this act and

23
      to the rules of the commission.

24
                                  ARTICLE II

25
           Sec. 1.  A motor  common  carrier  of property  shall not

26
      operate any motor vehicle for the transportation of property for

27
      hire on any public highway in this state except in accordance



   04762'01                                  11

 1
      with  the provisions of  this act.  A motor  common  carrier
    of

 2
      property  shall not operate upon any public highway without first

 3
      having obtained from the commission a certificate of authority.

 4
           Sec. 3.  An application for a certificate of authority shall

 5
      be in writing, verified by affidavit, stating the experience of

 6
      the applicant as a motor carrier, if any, the ownership and con-

 7
      dition of the equipment and physical property of the applicant

 8
      proposed to be used, that the vehicles of the applicant have

 9
      passed an inspection within the immediately preceding 12 months

10
      pursuant to the requirements of the motor carrier safety act,

11
       Act No. 181 of the Public Acts of 1963, being sections 480.11 to

12
      480.21 of the Michigan Compiled Laws  1963 PA 181, MCL 480.11 TO

13
      480.22, and 49 C.F.R. part 396, the support by shippers or

14
      receivers for the proposed service, AND the relation of the pro-

15
      posed service to the required public purpose to be served, and

16
      shall contain other information as the commission requires.  The

17
      commission may request supplemental information from an applicant

18
      regarding accident records and citations issued to the applicant

19
      or drivers of the applicant within the immediately preceding 12

20
      months when that information is considered necessary to make

21
      findings regarding the fitness of the applicant.  Each applica-

22
      tion shall be accompanied by the required fees, proof of insur-

23
      ance before operations are commenced, and all other things

24
      required by law and the rules of the commission.

25
           Sec. 4.  Upon the filing of an application for a certificate

26
      of authority to operate as a motor  common  carrier, the

27
      commission shall cause notice of the filing of the application to



   04762'01                                  12

 1
      be published in a biweekly information bulletin.  The commission

 2
      may schedule a hearing on the application or proceed under modi-

 3
      fied procedure.  If a hearing is scheduled, notice shall be given

 4
      in the same manner as the notice of filing of an application.

 5
           Sec. 5.  (1) Except as provided in this section, the commis-

 6
      sion shall issue a certificate of authority to an applicant

 7
      authorizing that it provide transportation subject to the juris-

 8
      diction of the commission under this article as a motor  common

 9
      carrier  of property  if the commission finds all of the

10
      following:

11
           (a) The character and condition of the vehicles proposed to

12
      be operated by the applicant is such that they may be operated

13
      safely upon the public highways.

14
           (b) That the applicant is fit, willing, and able to provide

15
      the transportation to be authorized by the certificate and to

16
      comply with this act and rules and regulations of the

17
      commission.

18
           (c) On the basis of evidence presented, that the service

19
      proposed will serve a required public purpose, unless the commis-

20
      sion finds that the transportation to be authorized by the cer-

21
      tificate would create excess service by endangering the ability

22
      of the present carriers to provide adequate, economical, safe,

23
      and efficient service.

24
           (d) That the service proposed is consistent with the trans-

25
      portation policy set forth in section 2 of article I.







   04762'01                                  13

 1
           (2) In making a finding under subsection (1), the commission

 2
      shall consider and, to the extent applicable, make findings on at

 3
      least all of the following:

 4
           (a) The transportation policy set forth in section 2 of

 5
      article I.

 6
           (b) The existing available and adequate service in relation

 7
      to the character and volume of available traffic.

 8
           (c) Whether the service proposed will create excess service

 9
      inconsistent with the public interest.  The commission shall not

10
      find diversion of revenue or traffic from an existing motor car-

11
      rier to be in and of itself inconsistent with the public

12
      interest.

13
           (d) The character of the bond or insurance proposed to be

14
      given to  insure  ENSURE the protection of the public.

15
           (e) Whether the applicant is fit, willing, and able to pro-

16
      vide service commensurate with the extent of the certificate

17
      sought.

18
           (3) A motor carrier may not protest an application to pro-

19
      vide transportation filed under this section unless all of the

20
      following requirements are met:

21
           (a) The protest is filed with the commission not later than

22
      20 days following publication of the notice of the filing of the

23
      application in the biweekly bulletin.

24
           (b) The motor carrier possesses a certificate of authority

25
      or permit authorizing it to handle, in whole or in part, the

26
      traffic for which an application is made.





   04762'01                                  14

 1
           (c) The motor carrier is willing and able to provide service

 2
      that meets the reasonable needs of the shippers involved.

 3
           (d) The motor carrier has performed service within the scope

 4
      of the application during the previous 12-month period.

 5
           (4) The commission may grant leave to intervene to a person

 6
      other than a motor carrier or an applicant for a certificate of

 7
      authority or permit upon a showing of other interests that are

 8
      consistent with the transportation policy set forth in section 2

 9
      of article I.  A petition to intervene shall not be granted

10
      unless filed with the commission not later than 20 days following

11
      publication of the notice of the filing of the application in the

12
      biweekly bulletin except for good cause shown.

13
           (5) Any motor carrier having timely filed a protest or any

14
      intervenor having timely filed a petition to intervene may par-

15
      ticipate in person or by counsel, cross-examine witnesses, and

16
      offer testimony in support of, or in opposition to, the grant of

17
      a certificate of authority.

18
           (6) Certificates of authority issued to motor  common  car-

19
      riers  of property  under this act shall be of 3 classes:

20
           (a) Certificates issued to motor carriers as may be operat-

21
      ing over fixed routes or within 1 mile of a fixed route or

22
      between fixed termini.

23
           (b) Certificates issued to motor carriers providing a trans-

24
      portation service within an 8-mile radius of a city having a pop-

25
      ulation of 500,000 or more and including each city or village, a

26
      part of which is located within the 8-mile radius.





   04762'01                                  15

 1
           (c) Certificates issued to all other motor  common

 2
      carriers.  of property.

 3
           (7) The burden of proof shall be on the protestant to meet

 4
      the requirement of subsection (2)(c).

 5
           Sec. 6.  All motor  common  carriers  of property 
   subject

 6
      to this act  ,  shall, before engaging in business, print and

 7
      file with the commission and keep open to public inspection in

 8
      its principal place of business and have available upon request,

 9
      schedules showing all rates, fares, and charges for transporta-

10
      tion of property between different points on its route  ,  and

11
      also between points on its own route and on the route of any

12
      other motor  common  carrier when a through route and joint rate

13
      have been established.  When the commission grants a new author-

14
      ity to a motor  common  carrier, that carrier shall not charge a

15
      predatory rate.  A predatory rate is a rate found to be below its

16
      fully allocated cost by the  Michigan public service

17
      commission.  The commission shall make this determination  prior

18
      to  BEFORE the issuance of a certificate and commencement of

19
      operations.  If a joint rate over the through route has not been

20
      established, the several motor carriers shall file, print, and

21
      keep open for public inspection as described in this section  ,

22
      the separately established rates, fares, and charges applied to

23
      the through transportation, and shall likewise print, file, and

24
      keep open to the public inspection all other charges, privileges,

25
      or rules which in anywise change, affect, or determine any part

26
      of the rates, fares, charges, or the value of the service, and

27
      other information as required by the commission in its rules.  In



   04762'01                                  16

 1
      addition, a motor carrier shall keep the facilities of the motor

 2
      carrier open to public inspection.  A motor  common  carrier

 3
      shall not receive or accept any person or property for transpor-

 4
      tation upon the highways until in compliance with the require-

 5
      ments of this section.

 6
           Sec. 7.  (1) All rates, fares, and charges made by  any  A

 7
      motor  common  carrier shall be just and reasonable  ,  and
   shall

 8
      not be unjustly discriminatory, prejudicial, or preferential.

 9
       Contract motor carrier rates, fares, and charges made by common

10
      motor carriers holding both common carrier and contract carrier

11
      authority shall not be considered by the commission to be

12
      unjustly discriminatory, prejudicial, or preferential in deter-

13
      mining compliance with this section.  Existing carriers will be

14
      permitted to meet competitive rates without further justification

15
      to the commission.  The commission shall take into account rea-

16
      sonable estimated or foreseeable future costs in determining

17
      whether rates, fares, and charges meet the requirements of this

18
      subsection.

19
           (2) A motor  common  carrier shall not charge, demand, col-

20
      lect, or receive a greater or less or different remuneration for

21
      the transportation of property, or for any service in connection

22
      therewith, than the rates, fares, and charges which have been

23
      legally established and filed with the commission.

24
           (3) A motor  common  carrier shall not refund or remit in

25
      any manner or by any device any portion of the rates, fares, and

26
      charges required to be collected by the tariffs on file with the

27
      commission or ordered by the commission.



   04762'01                                  17

 1
            (4) Nothing in this act shall prohibit a carrier from

 2
      operating both as a motor common carrier and a motor contract

 3
      carrier.

 4
           Sec. 7a.  (1) Notwithstanding any other provision of this

 5
      act, the commission may not investigate, suspend, revise, or

 6
      revoke any rate, fare, or charge proposed by a motor  common

 7
      carrier on the grounds that the rate, fare, or charge is unrea-

 8
      sonable on the basis that it is too high or too low if all the

 9
      following requirements are met:

10
           (a) The motor carrier notifies the commission that it wishes

11
      to have the rate, fare, or charge considered pursuant to this

12
      section.

13
           (b) The rate, fare, or charge is the product of independent

14
      action on the part of the motor carrier proposing the rate, fare,

15
      or charge.

16
           (c) The aggregate of increases and reductions in  any such

17
      A rate, fare, or charge is not more than 20% above or below the

18
      base rate, fare, or charge in effect 1 year before the effective

19
      date of the proposed rate, fare, or charge.

20
           (2) A motor  common  carrier may not protest a rate, fare,

21
      or charge proposed under this section.

22
           Sec. 7c.  (1) Subject to subsection (2), a motor  common

23
      carrier  providing transportation of household goods subject to

24
      the jurisdiction of the commission  may, subject to the provi-

25
      sions of this article, including the general tariff requirements

26
      of section 6 of this article, establish a rate  for the

27
      transportation of household goods  which is based on the



   04762'01                                  18

 1
      carrier's written, binding estimate of charges for providing

 2
       such  THAT transportation, which the shippers will be required

 3
      to pay for the services included in the estimate.

 4
           (2) A rate established under this section shall be available

 5
      on a nonpreferential basis to shippers and shall not result in

 6
      charges to shippers which are predatory.

 7
           (3) Binding estimates shall be furnished in writing to the

 8
      shipper or other person responsible for payment of the freight

 9
      charges and a copy of each such estimate shall be retained by the

10
      carrier as an addendum to the bill of lading.  All such estimates

11
      shall clearly indicate on their face that the estimate is binding

12
      on the carrier and that the charges shown are the charges that

13
      will be assessed for the services identified in the estimate.

14
      Binding estimates shall clearly describe the shipment and all

15
      services to be provided.

16
           (4) Motor  common  carriers  engaged in the transportation

17
      of household goods  may provide nonbinding estimates of the

18
      approximate costs that will be assessed for the transportation of

19
      such shipments.  Nonbinding estimates shall be reasonably

20
      accurate.  Estimates of approximate costs shall not be binding on

21
      the carriers providing such estimates.  The final charges on

22
      shipments moved on nonbinding estimates shall be those appearing

23
      in the carriers' tariffs applicable to the transportation.

24
      Nonbinding estimates, if provided, shall be furnished without

25
      charge and in writing to the shipper or other person responsible

26
      for payment of the freight charges.  A copy of each such estimate

27
      shall be retained by the carrier as an addendum to the bill of



   04762'01                                  19

 1
      lading.  All such estimates shall clearly indicate on the face of

 2
      the estimate that the estimate is not binding on the carrier and

 3
      that the charges shown are the approximate charges that will be

 4
      assessed for the services identified in the estimate.  Nonbinding

 5
      estimates shall clearly describe the shipment and all services to

 6
      be provided.

 7
           (5) Motor  common  carriers furnishing nonbinding estimates

 8
      shall enter the estimated charges on the bill of lading.

 9
           (6) At time of delivery of a collect on delivery shipment,

10
      except when the shipment is delivered to a warehouse for storage

11
      at the request of the shipper, on which a nonbinding estimate of

12
      the approximate costs has been furnished by the carrier pursuant

13
      to subsection (4), the shipper may request delivery of the ship-

14
      ment upon payment, in a form acceptable to the carrier, of an

15
      amount not exceeding 110% of the estimated charges.  Upon request

16
      of the shipper, the carrier shall relinquish possession of the

17
      shipment upon payment of not more than 110% of the estimated

18
      charges and shall defer demand for the payment of the balance of

19
      any remaining charges for a period of 30 days following the date

20
      of delivery.

21
           Sec. 9.  If a motor  common  carrier does or causes or per-

22
      mits to be done any act or thing in this act prohibited or

23
      declared to be unlawful  ,  or omits to do any act or thing

24
      required to be done by the motor  common  carrier under this act

25
      or under any lawful order made by the commission, the motor

26
       common  carrier is liable to the person, firm, or corporation

27
      injured to the extent of the actual amount of damages sustained



   04762'01                                  20

 1
      in consequence of the violation.  A recovery as provided in this

 2
      section shall not affect a recovery by the state of the penalty

 3
      prescribed for the violation.

 4
           Sec. 10.  The commission shall supervise and regulate all

 5
      motor  common  carriers  of property  and regulate and
   determine

 6
      reasonable and sufficient rates, fares, charges, and classifica-

 7
      tions; regulate the facilities, accounts, service, and safety of

 8
      operations of each motor  common  carrier.  To  insure  ENSURE

 9
      adequate transportation service to the territory traversed by the

10
      motor  common  carriers, the commission may require the coordina-

11
      tion of the service and schedules of competing motor  common

12
      carriers; require the filing of annual and other reports, tar-

13
      iffs, schedules, and other data by the motor  common  carriers;

14
      supervise and regulate motor  common  carriers in all matters

15
      affecting the relation between the motor carriers, and the public

16
      and between motor carriers; and promulgate rules for the purpose

17
      of promoting safety upon the highways and the conservation of

18
      their use to the end that the provisions of this act may be fully

19
      and completely carried out.  The commission, by general order or

20
      otherwise, shall promulgate rules in conformity with this act

21
      applicable to all motor  common  carriers  ,  and  to
    do all

22
      things necessary to carry out and enforce this act.

23
           Sec. 11.  The commission shall authorize motor  common  car-

24
      riers  of property  to interchange equipment and furnish through

25
      service under general rules or special orders reasonably safe-

26
      guarding equipment and the use of equipment whenever the public

27
      interest will be served thereby.



   04762'01                                  21

 1
           Sec. 13.  A motor  common  carrier authorized by this act to

 2
      operate shall not abandon or discontinue any service established

 3
      under this act without an order of the commission.  A certificate

 4
      under which service is discontinued for more than 30 days without

 5
      the previous order of  this  THE commission authorizing the dis-

 6
      continuance may be revoked after notice and hearing.

 7
           Sec. 14.  In case of emergency or unusual temporary demands

 8
      for transportation, the fees for additional motor propelled or

 9
      drawn vehicles for limited periods and the circumstances and reg-

10
      ulations under which they may be permitted to be operated, used,

11
      or employed by any motor  common  carrier shall be prescribed and

12
      fixed by general rule or temporary order of the commission.  ,

13
      any provisions of this act to the contrary notwithstanding.

14
                                  ARTICLE IV

15
           Sec. 2.  (1) In addition to the license fees or taxes other-

16
      wise imposed upon motor carriers, there shall be assessed against

17
      and collected from each motor carrier for the administration of

18
      this act  ,  an annual fee of  $100.00  $50.00 for each

19
      self-propelled motor vehicle operated by or on behalf of the

20
      motor carrier, except as otherwise provided in this subsection.

21
      A motor carrier shall pay a fee of only  $50.00  $25.00 for each

22
      self-propelled motor vehicle operated by or on behalf of the

23
      motor carrier, if the motor carrier begins operation of the vehi-

24
      cle after June 30 and has not previously paid a fee under this

25
      subsection for that vehicle.  After payment of the  $100.00

26
      $50.00 annual fee for a motor vehicle, or the  $50.00  $25.00 fee

27
      paid for a vehicle operated after June 30,  or the $50.00 fee



   04762'01                                  22

 1
      paid for a vehicle used for the transportation of household

 2
      goods  if a motor carrier seeks to begin operating a

 3
      self-propelled motor vehicle in place of another motor vehicle

 4
      not leased to the motor carrier by an owner operator for which a

 5
      fee was paid and surrenders the identification allocated to the

 6
      motor vehicle by the commission, accompanied by a fee of $10.00,

 7
      a replacement identification shall be issued.  If the owner oper-

 8
      ator replaces a vehicle while it is still leased to the same

 9
      motor carrier to whom it was leased when the identification was

10
      issued, the replacement identification fee shall be $10.00.  For

11
      all other replacement vehicles, the fee shall be $25.00 for each

12
      complete or partial calendar year quarter remaining in the year

13
      as of the date the replacement vehicle is to begin operating upon

14
      surrender of the identification allocated to the motor carrier by

15
      the commission.   For each truck or tractor used exclusively for

16
      the transportation of household goods as defined by the commis-

17
      sion, the annual fee shall be $50.00.

18
           (2) A motor carrier licensed in this state shall pay an

19
      annual fee of  $100.00  $50.00 for each vehicle operated by the

20
      motor carrier which is registered in this state and operating

21
      entirely in interstate commerce.  A motor carrier shall pay a fee

22
      of only  $50.00  $25.00 for each self-propelled motor vehicle

23
      operated by or on behalf of the motor carrier if the motor car-

24
      rier begins operation of the vehicle after June 30 and has not

25
      previously paid a fee under this subsection for that vehicle.

26
           (3) The commission may issue a temporary 72-hour permit for

27
      the operation of a vehicle subject to rules and conditions of the



   04762'01                                  23

 1
      commission at a fee of $10.00, which is in place of any other fee

 2
      otherwise required under this section.  The commission shall

 3
      reserve the authority to deny or curtail the use of temporary

 4
      permits authorized by this section.

 5
           (4) A motor carrier shall not operate any motor vehicle upon

 6
      or over the highways of this state, except as otherwise provided

 7
      in this act, while any of the fees imposed by this act remain

 8
      unpaid.  The commission is prohibited from extending the time of

 9
      payment or permitting the operation while the delinquency

10
      continues.

11
           (5) Motor carriers subject to this act shall not be required

12
      to pay the fee on operations of vehicles within the area

13
      described in section 2(1)(a) of article V.

14
           (6) The commission shall cooperate with other state depart-

15
      ments involved with the registration of commercial motor vehicles

16
      to implement a system whereby owners or drivers of commercial

17
      motor vehicles can obtain registration plates, decals, or tabs

18
      and pay the required fees at a single designated location, rather

19
      than at multiple locations.

20
           Sec. 6.  All  moneys  MONEY received under the provisions of

21
      this act shall be placed to the credit of the commission.  The

22
      legislature shall appropriate such  moneys  MONEY to the commis-

23
      sion and the  motor vehicle highway  MICHIGAN TRANSPORTATION fund

24
      in such proportions as the legislature may determine.

25
                                  ARTICLE V

26
           Sec. 10.  (1) All certificates or permits granted hereunder

27
      shall be made to terminate as of December 31 of the calendar year



   04762'01                                  24

 1
      during which the certificate or permit is issued.  All motor

 2
      carriers shall make application for the renewal of their certifi-

 3
      cates or permits not before October 1 and not later than December

 4
      1 of the year in which their current certificate or permit

 5
      expires.  Certificate and permit holders not making application

 6
      by December 1 shall be advised by the commission and given the

 7
      opportunity to file their applications on or before December 31

 8
      on payment of a penalty of $50.00.  The renewal application shall

 9
      be accompanied with the required fees, proof of insurance, and

10
      all other things required to be filed with the commission by law

11
      or by the rules and orders of the commission.

12
           (2) The certificate or permit of any motor carrier who is

13
      delinquent in the payment of the earned fees required by this act

14
      to be paid at the time of  any  renewal  thereof shall be
   deemed

15
      IS canceled and terminated, on  and after  January 1 of the year

16
      for which application should have been made under the require-

17
      ments of this section.  , and the  THE motor carrier  shall be

18
      IS prohibited from operating any of its vehicles upon or over the

19
      highways of this state and all privileges granted it under its

20
      expiring certificate or permit shall cease.

21
           (3)  In case any  IF AN applicant for renewal of a certifi-

22
      cate or a permit fails, otherwise than in the payment of fees, to

23
      comply in all respects with  the law  THIS ACT and the rules of

24
      the commission in connection with the filing of the application

25
      for renewal, the commission immediately shall give specific writ-

26
      ten notice of that failure to the applicant and shall require in

27
      the notice that the applicant correct the matter specified within



   04762'01                                  25

 1
      10 days after the notice.  Upon the failure of the applicant to

 2
      make the correction within the time, or in case of the failure to

 3
      accompany the application with the required filing fee, the cer-

 4
      tificate or permit of the applicant shall be revoked without

 5
       any  FURTHER action  whatever upon the part  of the
   commission.

 6
           (4) Except as in this section otherwise provided, the provi-

 7
      sions in this act voiding a certificate or a permit for cause

 8
      shall be self-executing and shall not require any affirmative act

 9
      on the part of the commission, and the commission is expressly

10
      prohibited from extending  and shall not have any power to

11
      extend  the privilege or permit  nor to  OR allow the carrier
   to

12
      engage in any operation over the public highway.   In no case

13
      shall the  THE revocation of any certificate or a permit DOES NOT

14
      release any motor carrier from liability for accrued fees.

15
           (5) Upon full compliance with the requirements with respect

16
      to the filing of the application, the certificate or permit shall

17
      issue for the succeeding calendar year, subject to all the provi-

18
      sions of this act.

19
           (6) The holder of a certificate or permit under this act may

20
      add equipment at any time, but when adding equipment subject to a

21
      privilege fee prescribed by this act, the holder of a certificate

22
      or permit shall file an ex parte application in the form as the

23
      commission requires and pay for each unit of equipment added, the

24
      fee prescribed in section 2 of article IV.  A notice of hearing

25
      on the application shall not be required and a public hearing

26
      shall not be held thereon.   When the holder of any certificate

27
      or permit, excepting a certificate or permit that authorizes the



   04762'01                                  26

 1
      transportation of household goods while such household goods are

 2
      being transported, by lease, contract, or any arrangement other

 3
      than outright purchase, augments his or her equipment, the lease,

 4
      contract, or arrangement shall be in writing and of such a char-

 5
      acter so as to vest in the holder exclusive possession and con-

 6
      trol of the vehicle under the lease or arrangement for the entire

 7
      term of the lease or arrangement.  Any operation of the vehicle

 8
      shall be conducted under the exclusive supervision, direction,

 9
      and control of the holder.

10
           (7) A certificated or permitted unit of equipment may be

11
      withdrawn from service at any time by surrendering to the commis-

12
      sion the identification allocated to the unit at the time it was

13
      certificated or permitted.

14
           Sec. 10a.   (1) The lease, contract, or arrangement under

15
      which a holder augments his or her equipment shall specify the

16
      period for which the equipment is to be operated, which shall not

17
      be less than 30 days, and shall include a provision that the

18
      vehicle has, within the immediately preceding 12 months, passed

19
      an inspection pursuant to the requirements of the motor carrier

20
      safety act, Act No. 181 of the Public Acts of 1963, being sec-

21
      tions 480.11 to 480.21 of the Michigan Compiled Laws, and 49

22
      C.F.R. part 396.

23
           (1)  (2)  The lease, contract, or arrangement UNDER WHICH A

24
      HOLDER AUGMENTS HIS OR HER EQUIPMENT shall specify the compensa-

25
      tion to be paid by the lessee or party to the contract or

26
      arrangement for the rental or use of the equipment.





   04762'01                                  27

 1
           (2)  (3)  The lease, contract, or arrangement shall specify

 2
      the time and date or the circumstance on which the contract,

 3
      lease, or other arrangement begins  ,  and the time or circum-

 4
      stance on which it ends.

 5
           (3)  (4)  The lease, contract, or arrangement shall vest in

 6
      the holder of the vehicle exclusive possession and control of the

 7
      vehicle for the entire term of the lease, contract, or

 8
      arrangement.

 9
           (4)  (5)  The lease, contract, or arrangement shall provide

10
      that any operation of the vehicle shall be conducted under the

11
      exclusive supervision, direction, and control of the holder.

12
           (5)  (6)  The lease, contract, or arrangement shall provide

13
      that the vehicle, at all times, while being operated under the

14
      lease, contract, or arrangement, shall be operated only by per-

15
      sons who are employees of the holder who stand in relation to the

16
      holder as employee to employer.

17
           (6)  (7)  The lease, contract, or arrangement shall be in

18
      the manner, form, and further content as the commission by rule

19
      provides.

20
           (7)  (8)  The lease, contract, or arrangement shall be exe-

21
      cuted in quadruplicate; the original shall be filed with the

22
      commission.  One copy shall be retained by the authorized motor

23
      carrier in whose service the equipment is to be operated, 1 copy

24
      shall be retained by the owner of the equipment, and 1 copy shall

25
      be carried on the equipment specified in the lease, contract, or

26
      arrangement during the entire period of the contract, lease, or

27
      other arrangement.



   04762'01                                  28

 1
           (8)  (9)  Nothing in this section shall apply to the

 2
      interchange with other certificated motor  common  carriers or

 3
      the multiple certification of motor carrier equipment when spe-

 4
      cific approval and authority to interchange the equipment has

 5
      been or is granted by the commission.

 6
            (10) The provisions of subsection (1) shall not apply to or

 7
      be required of or between movers of household goods, when the

 8
      equipment is used to transport household goods as defined by the

 9
      commission.

10
           Sec. 14.  (1) Upon complaint in writing by any person, firm,

11
      corporation, OR association,  mercantile, agricultural or manu-

12
      facturing society,  or by any body politic, municipal organiza-

13
      tion,  common carrier,  or motor carrier, that any of the motor

14
       common  carrier rates, fares, charges, or classifications  , 
   or

15
      any joint rate or rates of any motor  common  carrier are  , 
   in

16
      any respect unreasonable or unjustly discriminatory or otherwise

17
      in violation of this act,  or  that any practice whatsoever

18
      affecting the transportation of property by any  such  motor

19
       common  carrier or any service in connection therewith is in any

20
      respect unreasonable or unjustly discriminatory,  or  that any

21
      service of  such  A motor  common  carrier is inadequate, or
   that

22
      this act or any order, rule, or practice established by the com-

23
      mission applicable to the motor  common  carrier, or motor

24
       common  carrier charges filed with the commission by the motor

25
       common  carrier, in any respect  has been  WAS violated or
   devi-

26
      ated from  , or is being violated or deviated from by such motor

27
      common carrier; or upon a complaint against any motor contract



   04762'01                                  29

 1
      carrier that this act or any order, rule, or practice established

 2
      by the commission applicable to the motor contract carrier has

 3
      been violated or deviated from, or is being violated or deviated

 4
      from  BY THE MOTOR CARRIER, the commission shall notify the par-

 5
      ties complained of that complaint has been made  ,  and shall

 6
      furnish a copy of the complaint with the notice, and 20 days

 7
      after the notice has been given, the commission may proceed to

 8
      investigate the complaint as provided in this section.   Only the

 9
      commission, on its motion, may bring a complaint against a con-

10
      tract carrier for predatory rates, practices, or rules pursuant

11
      to section 6(2) of article III.  Before proceeding to make the

12
      investigation, the commission shall give the motor carrier and

13
      the complainants at least 10 days' notice of the time and place

14
      when and where the matters will be considered and determined, and

15
      the parties shall be entitled to be heard and shall have process

16
      to enforce the attendance of witnesses.  If upon investigation of

17
      a motor  common  carrier, any matters complained of are found to

18
      be in violation of this act, the commission shall determine and

19
      by order fix and order substituted  therefor  the practice, serv-

20
      ice, or charges as shall conform to this act and the rules of the

21
      commission applicable to the motor  common  carrier.   If upon

22
      investigation of a motor contract carrier, any matters complained

23
      of are found to be in violation of this act, the commission shall

24
      determine and by order fix and order substituted therefor the

25
      practice, service, or minimum rate as shall conform to this act

26
      and the rules of the commission applicable to the motor contract

27
      carrier.  The order shall further provide that the parties



   04762'01                                  30

 1
      complained of shall cease and desist from the violation and

 2
      conform to the terms of the order.  The commission shall cause a

 3
      certified copy of each order to be delivered to the parties

 4
      affected thereby, which order shall of its own force take effect

 5
      and become operative 20 days after the service of the order.  All

 6
      motor  common  carriers to which the order applies shall on or

 7
      before the date when the order becomes effective  ,  make changes

 8
      in schedules on file as shall be necessary to  make the same

 9
      conform to the order.   All motor contract carriers to which the

10
      order applies shall, on or before the date the order becomes

11
      effective, conform their practice, service, or minimum rate to

12
      the order.  Certified copies of all other orders of the commis-

13
      sion shall be delivered to the parties affected in like manner

14
       ,  and, unless otherwise prescribed in this act, shall take

15
      effect within the time thereafter as the commission prescribes.

16
           (2) When the commission believes that any provision in this

17
      act or any rule or order of the commission made in pursuance of

18
      this act  ,  has been or is being violated, or that any charges

19
      have been made or collected or service performed in violation

20
      thereof, and that an investigation  relating thereto  should be

21
      made, the commission may on its own motion or on the application

22
      of anyone investigate the suspected violation.  Before making the

23
      investigation, the commission shall present to the parties

24
      alleged to be guilty of the violations a statement in writing

25
      setting forth the matters to be investigated.  Thereafter, on 10

26
      days' notice to the parties of the time and place of the

27
      investigation, the commission may proceed to investigate the



   04762'01                                  31

 1
      matters complained of in the same manner  ,  and make like

 2
      orders, as if the investigation had been made upon complaint.  An

 3
      investigation, inquiry, or hearing which the commission has power

 4
      to undertake or to hold may be undertaken or held by or before

 5
      any commissioner or any employee of the commission when so

 6
      directed by the commission or its chairperson.  The commissioner

 7
      or employee shall submit findings of fact and conclusions of law

 8
      to the commission.  If the findings of fact and conclusions of

 9
      law are approved and confirmed by the commission and ordered

10
      filed in its office, they shall be the decision and the order of

11
      the commission.  All investigations, inquiries, or hearings of a

12
      commissioner or an employee are considered as the investigation,

13
      inquiry, and hearing of the commission.

14
           Enacting section 1.  Section 5 of article I, article III,

15
      sections 1 and 8 of article IV, and section 14a of article V of

16
      the motor carrier act, 1933 PA 254, MCL 475.5, 477.1 to 477.12,

17
      478.1 and 478.8, and 479.14a, are repealed.























   04762'01          Final page.                            TJS