Safe and Competitive Trucking Act of 1990

Safe and Competitive Trucking Act of 1990 - Amends Federal law to prohibit States from regulating any of the following: (1) intrastate market entry, rates, contracts, or services of any interstate private or for-hire motor carrier or interstate broker which provides intrastate transportation of property; or (2) the leasing, rental, or other sourcing of commercial drivers and motor vehicles by interstate motor carriers of property operating in intrastate commerce.

Prohibits States from requiring interstate private or for-hire motor carriers or interstate brokers of property to prove the lawfulness of interstate transportation activities performed under this Act or regulations issued by the Interstate Commerce Commission. Prohibits States from requiring such carrier or broker to: (1) file and maintain any certificate or permit issued by the Commission; (2) register motor vehicles operated under a certificate or permit issued by such Commission; (3) display on any vehicle a decal, stamp, cab card, or other identification evidencing the lawfulness of such transportation activity; or (4) pay a fee or tax with respect to such activities.

Requires the Secretary of Transportation to study the extent to which commercial motor vehicles and drivers continue to operate without taking corrective action after being placed out of service. Requires the Secretary to implement procedures with respect to the enforcement actions and penalties for any such violations which pose an imminent hazard to safety.

Authorizes States to assess a tax or fee on motor carriers operating vehicles registered in another State only if: (1) the tax or fee is apportioned based on miles driven in the State or on some other equitable measure of such carrier's or vehicle's contact with such State; (2) the tax or fee does not discriminate against interstate commerce; (3) the tax or fee is related to the services provided to the carrier or vehicle; and (4) the activity with respect to which the tax or fee is being assessed has a substantial nexus with the State.

Authorizes a State to require an interstate motor carrier to register vehicles the carrier intends to operate within the State and collect a registration tax or fee.

Authorizes States to require interstate motor carriers to report the fuel used by its vehicles within such State and to pay a related tax or fee. Prohibits any State from requiring registration or fuel use reports or imposing related taxes or fees on or after December 31, 1996, unless it is a member of the International Registration Plan or the International Fuel Tax Agreement.

Prohibits a State or local government from assessing a tax or fee on a motor carrier if the carrier's only business activity within the State is: (1) the delivery or pickup of property; (2) the use of streets or roads; (3) the solicitation, sale, or advertising of transportation services by a motor carrier not domiciled in such State; or (4) to transport fully or partially loaded or empty vehicles through the State.

Declares that no part of the compensation paid by an interstate motor carrier to an employee who performs his or her duties on a motor vehicle in more than one State shall be subject to the income tax of any State other than the State in which such employee resides and earns more than 50 percent of his or her income from the carrier.

Prohibits a State, under specified conditions, from imposing a net worth tax on property used in interstate commerce.

 
HR 4261 IH
101st Congress
  2d Session
H. R. 4261
To amend titles 23 and 49, United States Code, relating to motor carrier
transportation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 14, 1990
Mr. HASTERT (for himself, Mr. CLINGER, Mr. PACKARD, Mr. EMERSON, Mr. CRAIG,
Mr. DUNCAN, Mr. HANCOCK, Mr. COX, Mr. GRANT, Mr. DELAY, and Mr. HEFLEY)
introduced the following bill; which was referred jointly to the Committees
on Public Works and Transportation and the Judiciary
A BILL
To amend titles 23 and 49, United States Code, relating to motor carrier
transportation, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Safe and Competitive Trucking Act of 1990'.
SEC. 2. FINDINGS.
  Section 101 of title 23, United States Code, is amended by inserting after
  subsection (e) the following new subsection:
  `(f) FINDINGS- The Congress finds that--
  `(1) the productivity, operating efficiency, and safety of interstate
  motor carriers and brokers of property are significant national concerns
  and bear a direct relationship to the Nation's productivity and to the
  use of all highways benefiting from Federal aid under this title;
  `(2) the productivity and operating efficiency of interstate motor carriers
  and brokers of property are unnecessarily adversely affected by State
  and local economic regulations, taxes, and fees that are nonuniform,
  inequitable, and discriminatory in form and process;
  `(3) Federal legislation is essential to improve and facilitate the
  efficiency, productivity, and safety of interstate motor carriers and
  brokers of property over Federal highways and State and local highways
  benefiting from Federal aid under this title; and
  `(4) Federal legislation is needed to establish a simplified, uniform
  system of State and local taxes and fees imposed on the operations of
  interstate motor carriers of property, the drivers of their vehicles,
  and interstate brokers.'.
SEC. 3. IMPROVING HIGHWAY PRODUCTIVITY.
  (a) GENERAL RULES-
  (1) LIMITATION ON MOTOR CARRIER ECONOMIC REGULATION- Chapter 1 of title
  23, United States Code, is amended by adding at the end the following
  new section:
`Sec. 159. Improving highway productivity
  `(a) LIMITATION ON MOTOR CARRIER ECONOMIC REGULATION- Notwithstanding any
  other provision of law, no State or political subdivision thereof shall
  have in effect or enforce any law, rule, regulation, standard, or other
  provision relating to any of the following:
  `(1) Intrastate market entry, rates, contracts, or services of any
  interstate private or for-hire motor carrier or interstate broker which
  provides intrastate transportation of property.
  `(2) The leasing, rental, or other sourcing of commercial drivers and
  motor vehicles by interstate motor carriers of property operating in
  intrastate commerce.
  `(b) ENFORCEMENT-
  `(1) GENERAL AUTHORITY- The Interstate Commerce Commission, Secretary, or,
  at the request of the Commission or the Secretary, the Attorney General,
  and any other interested person, may institute a civil action for injunctive
  relief as may be appropriate to assure compliance with this section.
  `(2) JURISDICTION OF DISTRICT COURTS- An action under this section may be
  instituted in any district court of the United States in any State where
  such relief is required to assure compliance with this section.
  `(3) REMEDIES- Upon a proper showing in an action under this section, the
  court shall issue a temporary restraining order or preliminary or permanent
  injunction as may be appropriate and may also issue a mandatory injunction
  directing any State or person to comply with any applicable provision of
  this section or any regulation issued to carry out this section.'.
  (2) CONFORMING AMENDMENT- The analysis for chapter 1 of title 23, United
  States Code, is amended by adding at the end thereof the following new item:
`159. Improving highway productivity.'.
  (b) REGISTRATION BY STATES- Section 11506 of title 49, United States Code,
  is amended to read as follows:
`Sec. 11506. Registration of motor carriers by a State
  `No State may require any interstate private or for-hire motor carrier or
  interstate broker of property to prove the lawfulness of any interstate
  transportation activity performed under the authority of this subtitle
  or a regulation issued by the Commission, including, but not limited to,
  requiring such carrier or broker to--
  `(1) file and maintain any certificate or permit issued to the motor
  carrier or broker by the Commission;
  `(2) register motor vehicles operated under a certificate or permit issued
  by the Commission;
  `(3) display or carry on any vehicle a decal, stamp, cab card, or other
  means of identification evidencing the lawfulness of such transportation
  activity; or
  `(4) pay a fee or tax with respect to an activity described in paragraph
  (1), (2), or (3).'.
SEC. 4. MOTOR CARRIER SAFETY.
  (a) PROCEDURES TO ENSURE TIMELY CORRECTION OF SAFETY VIOLATIONS-
  (1) STUDY- The Secretary shall conduct a study on the extent to which
  commercial motor vehicles and drivers continue to operate without taking
  corrective action after being placed out of service.
  (2) CONTENTS- The study under this subsection shall consider procedures
  to establish--
  (A) a nationwide system for the random reinspection of commercial motor
  vehicles and operators declared out-of-service as a result of safety
  violations;
  (B) a program for accountability to ensure that such violations are
  corrected; and
  (C) a system for assuring that appropriate State penalties are assessed
  for failure to correct such violations noted during inspections funded with
  moneys authorized by section 404 of the Surface Transportation Assistance
  Act of 1982 (49 U.S.C. App. 2304) to carry out the motor carrier safety
  assistance program.
  (3) REPORT- Not later than 1 year after the date of the enactment of this
  Act, the Secretary shall submit to Congress a report containing the findings
  of the study conducted under this section.
  (b) IMMINENT HAZARDS TO SAFETY- Not later than 1 year after the date of
  the enactment of this Act, the Secretary shall implement procedures which--
  (1) establish enforcement actions and penalties for any commercial motor
  vehicle safety violation or combination of such violations which pose an
  imminent hazard to safety; and
  (2) establish enforcement actions, penalties, and other appropriate
  punishments and restrictions for any motor carrier that receives a safety
  rating determined by the Secretary to be unsatisfactory, including whether
  or not to prohibit such motor carrier from operating a commercial motor
  vehicle described in section 204(1)(B) or (C) of the Motor Carrier Safety
  Act of 1984 (49 U.S.C. App. 2503(1) (B) or (C)).
  (c) DEFINITIONS- As used in this section--
  (1) COMMERCIAL MOTOR VEHICLE- The term `commercial motor vehicle' has the
  meaning such term has under section 204(1) of the Motor Carrier Safety
  Act of 1984 (49 U.S.C. App. 2503(1)).
  (2) UNSATISFACTORY- The term `unsatisfactory' has the meaning such term
  has under part 385 of title 49, Code of Federal Regulations, as in effect
  on the date of the enactment of this Act.
  (3) SECRETARY- The term `Secretary' means the Secretary of Transportation.
SEC. 5. HIGHWAY TAXATION AND FEE UNIFORMITY AND EQUITY.
  (a) GENERAL RULE- Chapter 1 of title 23, United States Code, is further
  amended by adding at the end the following new section:
`Sec. 160. Motor carrier taxation and fees
  `(a) GENERAL STANDARDS FOR TAXES AND FEES IMPOSED ON INTERSTATE CARRIERS-
  Subject to the provisions of this section, a State or political subdivision
  thereof may assess, levy, or collect a tax or fee, directly or indirectly,
  on motor carriers operating vehicles properly registered in another State
  only if--
  `(1) the tax or fee is fairly apportioned based on miles driven in the
  State or on some other equitable measure of the carrier's or vehicle's
  actual contact with the State;
  `(2) the tax or fee does not discriminate against interstate commerce;
  `(3) the tax or fee is fairly related to the services provided to the
  carrier or vehicle by the State or political subdivision; and
  `(4) the activity with respect to which the tax or fee is being assessed,
  levied, or collected has a substantial nexus with the State or political
  subdivision.
  `(b) VEHICLE REGISTRATION- A State may require an interstate motor carrier
  to register vehicles the carrier intends to operate within that State and
  collect a tax or fee from that registration; however no State may require
  vehicles to be registered or impose a tax or fee on or after December 31,
  1992, unless that State is a member of the International Registration Plan.
  `(c) FUEL USE REPORTING- A State may require an interstate motor carrier
  to report the fuel used by its vehicles within that State and to pay a
  tax or fee related to that fuel use; however no State may require such
  reporting or impose such a tax or fee on or after December 31, 1996,
  unless that State is a member of the International Fuel Tax Agreement.
  `(d) LOCAL TAXES AND FEES- No political subdivision of a State shall assess,
  levy, or collect a tax or fee on a motor carrier if the carrier's only
  business activity within that political subdivision is limited to one or
  more of the following:
  `(1) The delivery or pickup (or both) of property to or from a location
  within the political subdivision.
  `(2) The use of streets or roads within the political subdivision.
  `(3) The solicitation, sale, or advertising of transportation services by
  a motor carrier not domiciled in the political subdivision.
  `(e) TAXES ON SHIPMENTS WITH NO PICKUP OR DELIVERY- Except for vehicle
  registration, fuel tax reporting, and direct highway use fees, no State
  shall assess, levy, or collect a tax or fee on a motor carrier if the
  carrier's only business activity within that State is to transport fully
  or partially loaded or empty vehicles through the State.
  `(f) REGULATIONS- The Secretary may issue regulations implementing the
  provisions of this section.
  `(g) JUDICIAL REVIEW- Notwithstanding section 1341 of title 28, United
  States Code, and without regard to the amount in controversy or citizenship
  of the parties, a district court of the United States has jurisdiction,
  concurrent with other jurisdiction of courts of the United States and the
  States to prevent a violation of this section.
  `(h) ENFORCEMENT-
  `(1) INJUNCTIVE RELIEF-
  `(A) GENERAL AUTHORITY- The Secretary or, at the request of the Secretary,
  the Attorney General or any injured person may institute a civil action
  for injunctive relief as may be appropriate to assure compliance with
  this section.
  `(B) JURISDICTION OF DISTRICT COURTS- An action under this paragraph may
  be instituted in any district court of the United States in any State
  where such relief is required to assure compliance with this section.
  `(C) REMEDIES- Upon a proper showing in an action under this paragraph,
  the court shall issue a temporary restraining order or preliminary or
  permanent injunction as may be appropriate and may also issue a mandatory
  injunction commanding any State or person to comply with any applicable
  provision of this section or any regulation issued to carry out this section.
  `(2) REFUND OF MONEYS PAID-
  `(A) GENERAL AUTHORITY- In addition to any other relief to which a motor
  carrier may be entitled, any motor carrier that has paid a tax or fee to
  a State that is later determined to be in violation of this section is
  authorized to institute a civil action on behalf of itself and on behalf
  of others similarly situated for refunds of the moneys paid by that carrier
  or carriers.
  `(B) JURISDICTION OF DISTRICT COURTS- An action under this paragraph for
  refunds may be instituted in any district court of the United States in any
  State where such relief is required to assure compliance with this section.
  `(C) REMEDIES- Upon a proper showing in an action under this paragraph,
  the court shall direct the State to issue such refunds and such other
  monetary damages which may be appropriate under the applicable State's law.'.
  (b) CONFORMING AMENDMENT- The analysis for chapter 1 of title 23, United
  States Code, is amended by adding at the end thereof the following new item:
`160. Motor carrier taxation and fees.'.
SEC. 6. STATE AND LOCAL INCOME TAX ON COMPENSATION PAID TO INTERSTATE MOTOR
CARRIER EMPLOYEES.
  (a) GENERAL RULE- Chapter 1 of title 23, United States Code, is amended
  by adding at the end the following new section:
`Sec. 161. State and local income tax on compensation paid to interstate
motor carrier employees
  `(a) APPLICABLE INCOME TAX LAWS- No part of the compensation paid by an
  interstate motor carrier to an employee who performs his or her regularly
  assigned duties as such an employee on a motor vehicle in more than one
  State shall be subject to the income tax laws of any State or political
  subdivision thereof other than the State or political subdivision thereof
  of such employee's residence and the State or political subdivision thereof
  in which such employee earns more than 50 percent of the compensation paid
  by the carrier to such employee.
  `(b) EMPLOYEE DEEMED TO HAVE EARNED 50 PERCENT OF COMPENSATION- For the
  purpose of subsection (a), an employee shall be deemed to have earned
  50 percent of his compensation in any State or political subdivision in
  which his scheduled motor vehicle transportation time in such State or
  subdivision is more than 50 percent of his total scheduled motor vehicle
  transportation time in the calendar year while so employed.
  `(c) DEFINITIONS- For the purposes of this section--
  `(1) STATE- The term `State' includes the District of Columbia and any of
  the possessions of the United States.
  `(2) COMPENSATION- The term `compensation' means all moneys received for
  services rendered by the employee in the performance of his duties and
  shall include wages and salary.'.
  (b) CONFORMING AMENDMENT- The analysis for chapter 1 of title 23, United
  States Code, is amended by adding at the end thereof the following new item:
`161. State and local income tax on compensation paid to interstate motor
carrier employees.'.
SEC. 7. STATE TAXATION OF INCOME FROM INTERSTATE COMMERCE.
  (a) AMENDMENTS TO SECTION 101 OF THE ACT OF SEPTEMBER 14, 1959- Section 101
  of the Act of September 14, 1959 (73 Stat. 555; 15 U.S.C. 381), is amended--
  (1) in subsection (a) by inserting `or net worth tax on property located'
  after `a net income tax on the income derived'; and
  (2) in subsection (b) by inserting `or net worth' after `the imposition
  of a net income'.
  (b) AMENDMENTS TO SECTION 102 OF THE ACT OF SEPTEMBER 14, 1959- Section 102
  of the Act of September 14, 1959 (73 Stat. 556; 15 U.S.C. 382), is amended--
  (1) by striking subsection (a) and inserting `The income or net worth tax
  which was imposed by such State or political subdivision, as the case may be,
  for any taxable year ending on or before such date, on the income derived
  within such State by any person from interstate commerce or the value of
  property located within such State that may be used in interstate commerce,
  if the imposition of such tax for a taxable year ending after such date
  is prohibited by section 101.';
  (2) in subsection (b)(1) by inserting `or net worth' after `net income'
  each place it appears; and
  (3) in subsection (b)(2) by inserting `or net worth' after `net income'.
  (c) AMENDMENT TO SECTION 103 OF THE ACT OF SEPTEMBER 14, 1959- Section 103
  of the Act of September 14, 1959 (73 Stat. 556; 15 U.S.C. 383), is amended
  by inserting after the first sentence the following: `For purposes of this
  title, the term `net worth tax' means any tax imposed on, or measured by,
  the value of fixed or personal property.'.