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By the mids, however, there were so many trucks and buses going here and there, charging whatever was the going rate, sometimes with the vehicles being of questionable safety driven by operators of questionable ability, that some motor carrier operators began discussing the need for regulation. The transportation regulatory function of this division is to help establish safe and economical ground-based transportation systems to serve the needs of Texas citizens and industry. Federal law now preempts Commission authority over bus schedule changes, rate reductions, and route changes. Over the years, the motor carrier regulatory program of the Commission was administered by the Transportation Division as was the railroad program. In approving rates, staff studies whether a proposed rate provides a reasonable return on investment and whether the rate covers the company's expenses. Laws coming out of the Legislature in didn't seem to hold the answer. With an additional law in , the basis of the bus and motor carrier regulatory program was set in place. Commissioner Christi Craddick. Under provisions of state law, the Commission grants applications for new motor carrier authority if there is a proven need for the service and current service is inadequate to meet that need.

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