REVISE MOTOR BUS TRANSPORTATION ACT

Senate Bill 640 as passed by the Senate

Sponsor:  Sen. Phil Pavlov

House Committee:  Transportation and Infrastructure

Senate Committee:  Transportation

Complete to 4-9-18

SUMMARY:

Senate Bill 640 would amend the Motor Bus Transportation Act to revise an exemption for an interstate motor carrier of passengers operating under a Federal Motor Carrier Safety Administration certificate of authority, to require that the motor carrier provide a multistate regular route service that passes through Michigan to be eligible for the exemption.

MCL 474.104

BACKGROUND INFORMATION:

The Motor Bus Transportation Act regulates persons who transport passengers by motor bus. It prohibits a motor carrier of passengers from operating on a public highway in Michigan without first obtaining an authority from the Michigan Department of Transportation. However, the Act does not apply to various categories of motor carriers listed in the Act.

According to Senate committee testimony, the bill represents a technical amendment to the Motor Bus Transportation Act to correct an error included in Public Act 349 of 2016. In brief, all motor buses crossing state lines are required to have operating authority from the U.S. Department of Transportation. Of these, buses that pass through the state on a regularly scheduled multistate route are exempt from state safety oversight. PA 349 of 2016 inadvertently exempted all buses operating under U.S. DOT authority from that oversight, which could affect certain in-state private charter bus services. SB 640 would clarify that the exemption added to the Act by PA 349 of 2016 applies only to buses with a regularly scheduled multistate route that passes through Michigan.

FISCAL IMPACT:

The bill has no apparent fiscal impact.

                                                                                        Legislative Analyst:   E. Best

                                                                                                Fiscal Analyst:   William E. Hamilton

This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.