The Texas Department of Public Safety (the department) proposes amendments to §4.12, concerning Exemptions and Exceptions. The proposed amendments are necessary to ensure this section is consistent with interstate hours of service rules promulgated under federal statute in 49 CFR Part 395.

Suzy Whittenton, Chief Financial Officer, has determined that for each year of the first five-year period this rule is in effect there will be no fiscal implications for state or local government, or local economies.

Ms. Whittenton has also determined that there will be some economic effect on small businesses or micro-businesses required to comply with the section as proposed. The department is unable to estimate the number of small businesses and micro-businesses that will be subject to this amended rule because the Texas Department of Motor Vehicles registers carriers but is unable to provide the department with the number of carriers meeting the definition of "small business" or "micro business".

The economic effect on a small business or micro-business will depend on the type of electronic logging device (ELD) that carriers or drivers use, the condition of the ELD, and the driver training needed upon effect. ELDs cost between $240 and $5800 dollars per year per unit depending on where the device is purchased/leased and from whom. The businesses also have various purchase, rental, support, and enhancement options which impact the overall cost of the device. Further, this federal mandate (as identified in United States Department of Transportation/Federal Motor Carrier Safety Administration memorandum MC-ECE-2016-0001) has a two year window of compliance (12-18-17) unless the carrier is already using an Automated Onboard Recording Device, in which case the carrier has a four year window of compliance (12-16-19). This deployment expense is mitigated by reduced fines for log book violations, improvement of safety management system scores at the federal level, and reduced liability by keeping log book violations at a minimum and keeping fatigued drivers off of the road. Additionally, intrastate carriers will continue to be able to utilize the record of duty status exemption outlined in this section.

The department, taking into consideration the health, safety, and the environmental and economic welfare of the state, has analyzed whether using an alternative regulatory method would accomplish the same objectives of the proposed rule but minimize the adverse impact on small businesses or micro businesses. The department considered exempting intrastate carriers and intrastate businesses meeting the definition of "small business" and "micro business" from this rule as it relates to ELDs as a method of reducing the adverse impact of the rule. However, these alternatives are not possible because exempting small businesses and/or micro businesses from this rule would allow for the continued use of handwritten records of duty status (log books). This rule serves to reduce log book errors, reduces fatigued driving, and reduces falsified log book records. These reductions in turn create safer highways.

Ms. Whittenton has determined that for each year of the first five-year period the rule is in effect the public benefit anticipated as a result of enforcing the rule will be maximum efficiency of the Motor Carrier Safety Assistance Program.

The department has determined that this proposal is not a "major environmental rule" as defined by Texas Government Code, §2001.0225. "Major environmental rule" is defined to mean a rule that the specific intent of which is to protect the environment or reduce risk to human health from environmental exposure and that may adversely affect, in a material way, the economy, a sector of the economy, productivity, competition, jobs, the environment or the public health and safety of a state or a sector of the state. This proposal is not specifically intended to protect the environment or reduce risks to human health from environmental exposure.

The department has determined that Chapter 2007 of the Texas Government Code does not apply to this proposal. Accordingly, the department is not required to complete a takings impact assessment regarding this proposal.

The Texas Department of Public Safety, in accordance with the Administrative Procedure Act, Texas Government Code, §2001, et seq., and Texas Transportation Code, Chapter 644, will hold a public hearing on Monday, August, 15, 2016, at 10:00 a.m., at the Texas Department of Public Safety, Texas Highway Patrol Division, Building G Annex, 5805 North Lamar, Austin, Texas. The purpose of this hearing is to receive comments from all interested persons regarding adoption of the proposed amendments to Administrative Rule §4.11 regarding Transportation of Hazardous Materials, proposed for adoption under the authority of Texas Transportation Code, Chapter 644, which provides that the director shall, after notice and a public hearing, adopt rules regulating the safe operation of commercial motor vehicles.

Persons interested in attending this hearing are encouraged to submit advance written notice of their intent to attend the hearing and to submit a written copy of their comments. Correspondence should be addressed to Major Chris Nordloh, Texas Highway Patrol Division, Texas Department of Public Safety, P.O. Box 4087, Austin, Texas 78773-0500.

Persons with special needs or disabilities who plan to attend this hearing and who may need auxiliary aids or services are requested to contact Major Chris Nordloh at (512) 424-2775 at least three working days prior to the hearing so that appropriate arrangements can be made.

Other comments on this proposal may be submitted to Major Chris Nordloh, Texas Highway Patrol Division, Texas Department of Public Safety, P.O. Box 4087, Austin, Texas 78773-0500, (512) 424-2775. Comments must be received no later than thirty (30) days from the date of publication of this proposal.

These amendments are proposed pursuant to Texas Transportation Code, §644.051, which authorizes the director to adopt rules regulating the safe transportation of hazardous materials and the safe operation of commercial motor vehicles; and authorizes the director to adopt all or part of the federal safety regulations, by reference.

Texas Transportation Code, §644.051 is affected by this proposal.