In re Federal Preemption of Provisions of the Motor Carrier Act

566 N.W.2d 299, 223 Mich. App. 288
CourtMichigan Court of Appeals
DecidedApril 25, 1997
DocketDocket Nos. 182950, 186569, 186726
StatusPublished
Cited by7 cases

This text of 566 N.W.2d 299 (In re Federal Preemption of Provisions of the Motor Carrier Act) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Federal Preemption of Provisions of the Motor Carrier Act, 566 N.W.2d 299, 223 Mich. App. 288 (Mich. Ct. App. 1997).

Opinions

Mackenzie, P.J.

The Michigan Public Service Commission (psc) issued opinions and orders on January 11, 1995, and May 18, 1995, pertaining to the effect of the Federal Aviation Administration Authorization Act of 1994 (faaaa), PL 103-305, on Michigan’s Motor Carrier Act, 1933 PA 254, as amended, MCL 475.1 et seq.; [293]*293MSA 22.531 et seq. This Court consolidated the appeals of those decisions by several interested parties. Addressing only those aspects of the PSC’s decisions that are directly challenged by appellants, we affirm in part, vacate in part, and remand.

The faaaa was signed by President Clinton on August 23, 1994, and took effect on January 1, 1995. Section 601(h) of the faaaa, PL 103-305, § 601, entitled “Preemption of Intrastate Transportation of Property,” codified at the time of enactment as 49 USC 11501(h), but subsequently recodified as amended as 49 USC 14501(c), provides:

Preemption of State economic regulation of motor carriers.
(1) General rule. Except as provided in paragraphs (2) and (3), a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier (other than a carrier affiliated with a direct air carrier covered by section 41713(b)(4)) or any motor private carrier with respect to the transportation of property.
(2) Matters not covered. Paragraph (1)
(A) shall not restrict the safety regulatory authority of a State with respect to motor vehicles, the authority of a State to impose highway route controls or limitations based on the size or weight of the motor vehicle or the hazardous nature of the cargo, or the authority of a State to regulate motor carriers with regard to minimum amounts of financial responsibility relating to insurance requirements and self-insurance authorization; and
(B) does not apply to the transportation of household goods.
(3) State standard transportation practices.
(A) Continuation. Paragraph (1) shall not affect any authority of a State, political subdivision of a State, or polit[294]*294ical authority of 2 or more States to enact or enforce a law, regulation, or other provision, with respect to the intrastate transportation of property by motor carriers, related to
(i) uniform cargo liability rules,
(ii) uniform bills of lading or receipts for property being transported,
(iii) uniform cargo credit rules, or
(iv) antitrust immunity for joint line rates or routes, classifications and mileage guides, if such law, regulation, or provision meets the requirements of subparagraph (B).
(B) Requirements. A law, regulation, or provision of a State, political subdivision, or political authority meets the requirements of this subparagraph if
(i) the law, regulation, or provision covers the same subject matter as, and compliance with such law, regulation, or provision is no more burdensome than compliance with, a provision of this subtitle or a regulation issued by the Interstate Commerce Commission or the Secretary of Transportation under this subtitle; and
(ii) the law, regulation, or provision only applies to a carrier upon request of such carrier.
(C) Election. Notwithstanding any other provision of law, a carrier affiliated with a direct air carrier through common controlling ownership may elect to be subject to a law, regulation, or provision of a State, political subdivision, or political authority under this paragraph.

It has long been the psc’s obligation to supervise and regulate the transportation of property by motor vehicle for hire upon the public highways of Michigan. MCL 475.2; MSA 22.532. Michigan’s Motor Carrier Act applies to entities engaged in interstate commerce only to the extent it is consistent with federal law. MCL 476.12; MSA 22.545.

On September 8, 1994, the psc, acting on its own initiative, commenced the instant proceeding, No. T-1273, to consider the preemptive effect of the federal legislation and to give the PSC an opportunity to [295]*295express its view regarding which portions of the Motor Carrier Act and the associated regulations were preempted. The PSC’s stated intention was to provide guidance to motor carriers until the Legislature amends the Motor Carrier Act to conform with the federal preemption. The PSC did not attempt to address the constitutionality of § 601, but rather assumed it was constitutional.

The PSC concluded that § 601 preempts only regulatory provisions concerning price, routes, and service — the essence of economic regulation. The psc found it had substantial residual regulatory authority, including regulatory authority over matters such as safety. The PSC further concluded that it should continue a certification process (albeit, a “streamlined” certification process) for intrastate motor carriers and that it could and should continue to assess statutorily mandated fees. The PSC appended to its decisions copies of the Motor Carrier Act and the related rules with lines drawn through the large portions of the act and the rules that it concluded had been preempted. Since issuing its decisions, the psc has ceased enforcing those provisions of the Motor Carrier Act that it concluded had been preempted.

Under MCL 462.26(8); MSA 22.45(8), it is an appellant’s burden to show by clear and satisfactory evidence that the order of the psc complained of is unlawful or unreasonable. Michigan Intra-State Motor Tariff Bureau, Inc v Public Service Comm, 200 Mich App 381, 387; 504 NW2d 677 (1993). This Court gives due deference to the PSC’s administrative expertise and will not substitute its judgment for that of the PSC, particularly in legislative matters such as setting rates. Id., p 388. However, judicial deference is [296]*296not as great with respect to administrative inteipretations of recent legislation as it is with respect to administrative interpretations of longstanding legislation. Telephone Ass’n of Michigan v Public Service Comm, 210 Mich App 662, 670; 534 NW2d 223 (1995); In re Filing Requirements for Telecommunications Complaints, 210 Mich App 681, 692-693; 534 NW2d 234 (1995).

JURISDICTION

Numerous acts under which the PSC has been granted regulatory authority incorporate the appeal provisions in MCL 462.26; MSA 22.45. See, e.g., MCL 460.4; MSA 22.13(4), MCL 484.114; MSA 22.1454, repealed by 1991 PA 179, MCL 483.110; MSA 22.1320, MCL 460.59; MSA 22.9, MCL 460.557(6); MSA 22.157(6), MCL 460.301(6); MSA 22.101(6), and MCL 460.506; MSA 22.146. Also see the provisions listed in Sullivan v Public Service Comm, 93 Mich App 391, 396-397; 287 NW2d 188 (1979). Appeals from PSC decisions regarding the Motor Carrier Act are no exception. MCL 479.20; MSA 22.585 provides that “[a]ny order or decree of the commission shall be subject to review in the manner provided for in [MCL 462.26; MSA 22.45].”

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Bluebook (online)
566 N.W.2d 299, 223 Mich. App. 288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-federal-preemption-of-provisions-of-the-motor-carrier-act-michctapp-1997.