HB3548 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 59th Legislature (2024) HOUSE BILL 3548 By: Sterling of the House and Weaver of the Senate AS INTRODUCED An Act relating to motor vehicles; creating the Jamie Lea Pearl Act; requiring medical needs motor carriers to have certain tax exempt status; requiring transport of certain passengers at certain cost; allowing the use of certain vehicles and drivers; providing nondiscrimination policy; setting minimum insurance requirements; stating certain insurance policy not required; requiring certain vehicle inspections; limiting working hours; requiring drug testing and certain back ground and motor vehicle record checks; requiring retention of certain records and files; authorizing transportation of persons for non-medical needs; authorizing the promulgation of certain emergency and permanent rules; amending 47 O.S. 2021, Section 230.23, which relates to definitions; defining term; amending 47 O.S. 2021, Section 230.29, which relates to operation of vehicles not owned by a motor carrier; modifying definitions; providing for noncodification; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: HB3548 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 1. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: This act shall be known and may be cited as the "Jamie Lea Pearl Act". SECTION 2. NEW LAW A new section of la w to be codified in the Oklahoma Statutes as Section 230.33a of Title 47, unless there is created a duplication in numbering, reads as follows: A. A medical needs motor carrier shall: 1. Be formed under 28 U.S.C . § 501 (c)(3); 2. Be engaged in the transportation of passengers and their baggage at little or no cost for medical needs, including, but not limited to, dialysis, cancer treatments, prosthetics, pain management, and physical rehabilitation ; 3. The medical needs motor carrier engaged in the transportation of passengers and their baggage may be accomplished by use of vehicles owned or leased by the company or vehicles owned or leased by drivers of the company. 4. Not deny transportatio n for medical needs based on ethnicity, age, sex, or disabilit y; 5. Require every driver and vehicle used in its medical needs motor carrier operations to carry a primary liability insurance in the amount of at least One Hundred Thousand Dollars ($100,000 .00) for death and bodily injury per person, Three Hundred Thousand Dollars ($300,000.00) for death and bodily injury per incident, and HB3548 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 One Hundred Thousand Dollars ($100,000.0 0) for property damage, but shall not be required to carry a general liability p olicy; 6. Have all drivers' vehicles inspected on a quarterly basis to confirm that all vehicles meet all state and federal guidelines for safety; 7. Not allow its drivers to operate a motor vehicle more than ten (10) hours in each 24-hour period; and 8. Retain in their files records showing that all drivers have five-year clean motor vehicle records, federal and state background checks, ten (10) panel drug testing results, and fingerprint cards. Records must be retained by the company for a period of at least two (2) years after the driver is no longer driving fo r the company. B. A medical needs motor carrier may engage in the transportation of passengers and their baggage, by use of vehicles as described in paragra ph 3 of subsection A of this section, for hire as necessary for the company to generate sufficient revenue to cover their cost of operations, including , but not limited to, fuel, insurance, uniforms, a reasonable compensation for the owners of the company, drug testing, finger printing, tag or badges, vehicle inspection, vehicle maintenance , and repair. C. Within sixty (60) days of the passage and approval of this act, the Oklahoma Corporation Commission shall promulgate emergency rules and regulations necessary to carry out the provisions of this bill, and thereafter promulgate permanent rules as necessary. HB3548 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 3. AMENDATORY 47 O.S. 2021, Section 230. 23, is amended to read as follows: Section 230.23 As used in the Motor Carrier Act of 1995: 1. "Person" means any individual, firm, copartnership, limited partnership, corpora tion, limited liability corporation, company, association, or joint -stock association and includes any trustee, receiver, assignee, or personal representative thereof; 2. "Commission" means the Oklahoma Corporation Commission; 3. "License" means the license issued under authority of the laws of the State of Oklahoma to motor carrie rs and private carriers; 4. "Interstate Registration Certificate " (IRC) means a document issued by the Commission granting permission to operate upon the highways of the State of Oklahoma in interstate commerce exempt from federal motor carrier regulation ; 5. "Motor vehicle" means any automobile, truck, truck -tractor, trailer or semitrailer or any moto r bus or any self-propelled vehicle not operated or driven upon fixed rails o r tracks; 6. "Motor carrier of persons or property " means any person, except a carrier of household goods or used emigrant movables, operating upon any public highway for the tra nsportation of passengers or property for compensation or for hire or for commercial purposes, and not operating exclusively within the limits of an incorporated city or town within this state. Provided, the HB3548 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provisions of the Motor Carrier Act of 1995 sha ll not apply to the following vehicles and equipment when such vehicles and e quipment are being used for the following: a. taxicabs and bus companies engage d in the transportation of passengers and their baggage, not operated between two or more cities and towns, when duly licensed by a municipal corporation in which they might be doing business, b. any person or governmental authority furnishing transportation for school children to and from public schools or to and from public -school-related extracurricular activities under contract with, and sponsored by, a public school board; p rovided, that motor vehicles and equipment operated for the purposes shall qualify in all respects for the transportation of school children under the Oklahoma School Code and the rules of the State Board of Education adopted pursuant thereto. c. transport trucks transporting liquefied petroleum gases intrastate which are owned or op erated by a person subject to and licensed by the Oklahoma Liquefied Petroleum Gas Regulation Act, and d. transportation of livestock and farm products in the raw state, when any of such commodities move from farm HB3548 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to market or from market to farm on a vehi cle or on vehicles owned and operated by a bona fide farmer not engaged in motor vehicle transportat ion on a commercial scale; 7. "Corporate family" means a group of corporatio ns consisting of a parent corporation and all subsidiaries in which the parent corporation owns directly or indirectly one hundred percent (100%) interest; 8. "Intercorporate hauling" means the transportation of property, by motor vehicle, for compensatio n, by a carrier which is a member of a corporate family, as defined in the Moto r Carrier Act of 1995, when the transportation for compensation is provided for other members of the corporate family; 9. "Private carrier" means any person engaged in transpor tation upon public highways, of persons or property, or both, but not as a motor carrier, and includes any person who transports property by motor vehicle where such transportatio n is incidental to or in furtherance of any commercial enterprise of such per son, other than transportation; 10. "Market" means the point at which livestoc k and farm products in the raw state were first delivered by the producer of the livestock and farm products in the raw state, upon the sale thereof; HB3548 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. "Public highway" means every public street, road or highway, or thoroughfare in this state, used by t he public, whether actually dedicated to the public and accepted by the proper authorities or otherw ise; and 12. "Commercial enterprise " means all undertakings entered into for private gain or compensation, including all industrial pursuits, whether the undertakings involve the handling of or dealing in commodities for sale or otherwise ; and 13. "Medical needs motor carrier of persons or property " means a company formed under 2 8 U.S.C § 501 (c)(3) engaged in the transportation of passengers and their baggage at little or no cost throughout the state of Oklahoma for medical needs, including , but not limited to, dialysis, cancer treatments, prosthetics, pain management, and physical rehabilitation. SECTION 4. AMENDATORY 47 O.S. 2021, Section 230.29, is amended to read as follows: Section 230.29 A. As used in this section: 1. "Authorized carrier" means a person or persons authorized to engage in the transportation of passengers or property as a licensed motor carrier; 2. "Equipment" means a motor vehicle, straight truck, tractor, semitrailer, full trailer, any combination of the se and any other type of equipment used by authorized carriers in the transpo rtation HB3548 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of passengers or property for hire or property for hire by a medical needs motor carrier; 3. "Owner" means a person to whom title to equipment has been issued, or who, without title, has the right to exclusive use of equipment for a period longer than thirty (30) days; 4. "Lease" means a contract or arrangement in which the owner grants the use of equipment, with or without driver, for a specified period to an authorized carrier for use in the regulated transportation of passengers or property, in exchange for compensation; 5. "Lessor", in a lease, means the party granting the use of equipment, with or without driver, to another; 6. "Lessee", in a lease, means the party acquiring the use of equipment, with or without driver, from another; 7. "Addendum" means a supplement to an existing lease which is not effective until si gned by the lessor and lessee; and 8. "Shipper" means a person who sends or receives passengers or property which is transported in intrastate commerce in this state. B. An authorized carrier may perform authorized transportation in equipment it does not own only under the following conditions: 1. There shall be a written lease granting the use of the equipment and meeting the requirements as set forth in subsection C of this section; HB3548 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The authorized carrier acquiring the use of equipment under this section shall identify the equipment in accordance with the requirements of the Commission; and 3. Upon termination of the lease, the authorized carrier shall remove all identification showing it as the operating carrier before giving up possession of the equipment. C. The written lease required pursuant to subsection B of this section shall contain the following provisions. The required lease provisions shall be adhered to and performed by the authorized carrier as follows: 1. The lease shall be made be tween the authorized carrier and the owner of the equipment. The lease shall be signed by these parties or by their authorized representatives; 2. The lease shall specify the time and date or the circumstances on which the lease begins and ends and inclu de a description of the equipment which shall be identified by vehicle serial number, make, year mod el and current license plate number; 3. The period for which the lease appli es shall be for thirty (30) days or more when the equipment is to be operated f or the authorized carrier by the owner or an employee of the owner; 4. The lease shall provide that the authorized carrier lessee shall have exclusive possession, control and u se of the equipment for the duration of the lease. The lease shall further pro vide that HB3548 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the authorized carrier lessee shall assume complete responsibility for the operation of th e equipment for the duration of the lease; 5. The amount to be paid by the a uthorized carrier for equipment and driver 's services shall be clearly stated o n the face of the lease or in an addendum which is attached to the lease; 6. The lease shall clearl y specify the responsibility of each party with respect to the cost of fuel, fuel taxes, empty mileage, permits of all types, tolls, detention and accessori al services, base plates and licenses, and any unused portions of such items. Except when the viola tion results from the acts or omissions of the lessor, the authorized carrier lessee shall assume the risks and costs of fines for overweight and oversize t railers when the trailers are preloaded, sealed, or the load is containerized, or when the trailer or lading is otherwise outside of the lessor 's control, and for improperly per mitted overdimension and overweight loads and shall reimburse the lessor for an y fines paid by the lessor. If the authorized carrier is authorized to receive a refund or a credit for base plates purchased by the lessor from, and issued in the name of, the authorized carrier, or if the base plates are authorized to be sold by the aut horized carrier to another lessor the authorized carrier shall refund to the initial lessor on whose behalf the base plate was first obtained a prorated share of the amount received; HB3548 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7. The lease shall specify that payment to the lessor shall be made by the authorized carrier within fifteen (15) days after submission of the necessary delivery documents and other paperwork concerning a trip in the service of the authorized carrie r. The paperwork required before the lessor can receive payment is limited to those documents necessary for the authorized carrier to secure payment from the shipper. The author ized carrier may require the submission of additional documents by the lessor but not as a prerequisite to payment; 8. The lease shall clearly specify the right of the lessor, regardless of method of compensation, to examine copies of the documentation of the carrier upon which charges are assessed; 9. The lease shall clearly spe cify all items that may be initially paid for by the authorized carrier, but ul timately deducted from the compensation of the lessor at the time of payment or settlement together with a recitation as to how the amount of each item is to be computed. The l essor shall be afforded copies of those documents which are necessary to determ ine the validity of the charge; 10. The lease shall specify that the lessor is not required to purchase or rent any products, equipment, or services from the authorized carrier as a condition of entering into the lease arrangement; 11. As it relates to i nsurance: HB3548 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. the lease shall clearly specify the legal obligation of the authorized carrier to maint ain insurance coverage for the protection of the public, and b. the lease shall clearly specify the conditions under which deductions for cargo or property damage may be made from the lessor's settlements. The lease shall further specify that the authoriz ed carrier must provide the lessor with a written explanation and itemization of any deductions for cargo or property damage made from any compensation of m oney owed to the lessor. The written explanation and itemization must be delivered to the lessor be fore any deductions are made; and 12. An original and two copies of each lea se shall be signed by the parties. The authorized carrier shall keep the origi nal and shall place a copy of the lease in the equipment during the period of the lease. The owner of the equipment shall keep the other copy of the lease. D. The provisions o f this section shall apply to the leasing of equipment with which to perform tr ansportation regulated by the Corporation Commission by motor carriers holding a license from the Commission to transport passengers or property. SECTION 5. It being immediately necessary for the preservation of the public peace, health or safety, an emergency is hereby HB3548 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage an d approval. COMMITTEE REPORT BY: COMMITTEE ON PUBLIC SAFETY, dated 02/20/2024 - DO PASS, As Coauthored.