CARRIERS BY WATER; MSP OVERSIGHT                                                  H.B. 4807 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                                  ON THIRD READING

House Bill 4807 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor:  Representative Dan Lauwers

House Committee:  Transportation and Infrastructure

Senate Committee:  Transportation

CONTENT

The bill would amend Public Act 246 of 1921, which regulates the service, rates, fares, and charges of water carriers in Michigan, to do the following:

-- Codify the requirement that the Department of State Police fulfill the duties of the Michigan Public Service Commission under the Act.

-- Require the Department to make a decision on all filed rates, fares, and charges within 30 days after they were filed.

-- Require the Department to automatically approve a proposed rate, fare, charge, or tariff of a carrier by water that primarily transported vehicles between two State highways, if the rate, fare, charge, or tariff were less than the amount charged by comparable carriers.

-- Prohibit the Department from auditing any carrier by water whose proposed rate, fare, charge, or tariff was less than those charged by comparable carriers by water.

-- Allow the Department to approve a proposed rate, fare, charge, or tariff of any carrier by water that primarily transported vehicles directly between two State highways that was more than the rates, fares, charges, or tariffs charged by comparable carriers by water if the Department found the rate, fare, charge, or tariff reasonable.

-- Require the Department to meet with the carrier within 15 days if it determined that the rate, fare, charge, or tariff was not reasonable, to explain its determination.

-- Specify that these provisions regarding departmental rate approval would not apply to a carrier by water that was operating within any municipality under an agreement with that municipality.

(Although the Act refers to the Michigan Public Utilities Commission, that entity was abolished and its functions were transferred to the Public Service Commission by statute. The Commission's responsibilities under the Act were transferred to the Department of State Police by Executive Order 2015-10.)

MCL 460.201 et al.                                                   Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would have a minimal fiscal impact on the Department of State Police's Commercial Vehicle Enforcement Division, adding minor administrative costs that could be covered by existing appropriations, which are primarily funded through motor carrier fees.

Date Completed:  12-12-17                                                   Fiscal Analyst:  Bruce Baker

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.