Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 38.3.201, 38.3.603, 38.3.702, 38.3.703, 38.3.705, 38.3.706, 38.3.707, 38.3.805, 38.3.1502, 38.3.1503, 38.3.1504, 38.3.2001, 38.3.2402, 38.3.2403, 38.3.2404, and 38.3.3306 and the repeal of ARM 38.3.1101, 38.3.1505, 38.3.2011, and 38.3.3305 pertaining to Montana's Motor Carrier Act

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT AND REPEAL

TO: All Concerned Persons

1. On September 21, 2021, at 1:30 p.m., the Department of Public Service Regulation, Public Service Commission (department) will hold a virtual public hearing to consider the proposed amendment and repeal of the above-stated rules. The hearing will be livestreamed at http://psc.mt.gov/livestream. Parties seeking to participate in the hearing must contact the department at 1-800-646-6150, by 5 p.m., September 17, 2021, to receive the necessary call-in information for the hearing.

2. The department will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the department no later than 5:00 p.m. on September 17, 2021. Please contact Loryn Johnson, Department of Public Service Regulation, 1701 Prospect Avenue, Helena, Montana, 59620-2601; telephone (406) 444-6170; TDD/Montana Relay Service (406) 444-4212; or e-mail Loryn.Johnson2@mt.gov.

3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

38.3.201 VEHICLE REGISTRATION FEE (1) Class A, B, C, and D motor carriers must pay an annual per vehicle registration fee for which a registration receipt will be issued, a copy of which shall be carried in each vehicle at all times.

AUTH: 69-12-201, MCA

IMP: 69-12-106, 69-12-108, 69-12-201, 69-12-325, 69-12-326, 69-12-401, 69-12-407, 69-12-421, 69-12-423, 69-12-501, 69-12-503, 69-12-504, 69-12-611, 69-12-612, MCA

38.3.603 INTERRUPTION AND DISCONTINUANCE OF OPERATIONS

(1) All temporary discontinuances or interruptions of regular scheduled passenger service shall be reported promptly in writing to the commission with a full statement of the cause thereof and their probable duration and, as soon as known to the carrier, shall be reported forthwith to all ticket agents of the carrier along the route affected who shall notify the public by posting same forthwith on their bulletin boards together with their probable duration.

(2) Discontinuance of Class A ~~or Class B~~ service for a period of five consecutive days without notice to the commission shall be deemed a forfeiture of all right secured under and by virtue of any order or permission to operate; provided, however, that the commission may permit the resumption of operation after such five days' discontinuance on proper showing that the carrier was not responsible for the failure to give service.

(3) No Class A ~~or Class B~~ motor carrier shall discontinue the service called for under its certificate, and time schedule filed thereunder, without first having given to the commission and to the public, at least ten days' notice in writing of its intention to discontinue such service, and having secured from the commission permission to do so.

AUTH: 69-12-201, MCA

IMP: 69-12-403, MCA

38.3.702 BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE (1) Every class A, B, C, and D intrastate carrier must file with this commission evidence of complying with the minimum insurance requirements of this commission as applicable to bodily injury and property damage liability insurance.

(2) For the purposes of this subchapter, "bodily injury" shall include death.

(3) Every class E carrier must file with the commission evidence of compliance with the insurance requirements of 69-12-343, MCA.

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

38.3.703 CARGO INSURANCE (1) Each class A ~~or class B household goods~~ intrastate carrier must file with this commission evidence of complying with the minimum insurance requirements of this commission as applicable to cargo insurance.

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

38.3.705 FORMS FOR CERTIFICATE OF INSURANCE (1) The following forms shall be utilized by the department and may be obtained from the commission:

(a) Form K. Uniform notice of cancellation of motor carrier insurance policies, stock form K.

(b) Form H. Uniform motor carrier cargo certificate of insurance.

(c) Form E. Uniform motor carrier bodily injury and property damage liability certificate of insurance for use by class A, B, C, and D motor carriers.

(d) Form T. Uniform bodily injury and property damage liability certificate of insurance for use by class E transportation network carriers.

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

38.3.706 ENDORSEMENTS (1) All insurance policies issued by the insurance company to the carrier must include, at time of issuance, the terms, conditions, and requirements set forth in this rule and repeated on endorsement forms approved by the commission and identified as "Endorsement MV4," "Endorsement MV2," and "Endorsement MV-TNC" available from the commission.

(2) The following terms, conditions, and requirements are deemed a substantive part of all policies issued, and are incorporated therein:

~~(a) Cargo insurance for household goods carriers (Endorsement MV2) shall be issued in an amount no less than $10,000.~~

~~(b)~~ (a) Casualty (liability) insurance for class A, B, C, and D carriers (Endorsement MV4) shall be issued in an amount no less than:

(i) $100,000 for 7 passengers or less;

(ii) $500,000 for 8 to 15 passengers;

(iii) $750,000 for 16 to 26 passengers;

(iv) except any class A ~~or B~~ motor carrier, other than as provided in ~~(b)(i)~~ (ai), operating under a certificate of public convenience and necessity or certificate of compliance authorizing passenger operations only within a particular city or 10-mile radius is required to carry a minimum of $500,000 insurance regardless of size of vehicle used;

(v) $100,000 for transportation of nonhazardous freight in a vehicle designed, equipped, and primarily intended for transportation of seven passengers or less or a vehicle of manufacturer's GVW rating of 10,000 pounds or less designed, equipped, and primarily intended for transportation of cargo;

(vi) $500,000 for transportation of nonhazardous freight for all other vehicles.

~~(c)~~ (b) Liability insurance for class E carriers (Endorsement MV-TNC) shall be issued as specified in 69-12-343, MCA.

(3) These endorsements must be executed, countersigned, and attached to the original policy when issued.

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

38.3.707 MINIMUM LIMITS OF INSURANCE COVERAGE - BONDS UNACCEPTABLE (1) Minimum limits of insurance coverage for class A, B, C, and D carriers as required by this commission are outlined in Endorsement MV-4 and Endorsement MV-2.

(2) Minimum limits of insurance coverage for class E carriers are specified in 69-12-343, MCA and outlined in Endorsement MV-TNC.

(3) Bonds in lieu of insurance coverage are not acceptable for carriers.

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

38.3.805 ANNUAL REPORTS (1) As required in 69-12-407, MCA, class A, B, C, and D motor carriers operating within the state of Montana are required to submit annual reports to the commission. Annual report forms are available on the commission's web site.

(2) The annual report form represents the uniform system of accounts the commission is required to prescribe by 69-12-407, MCA.

AUTH: 69-12-201, MCA

IMP: 69-12-407, MCA

38.3.1502 OBLIGATION TO CARRY (1) No driver or operator of any class A ~~or class B~~ motor vehicle used in the transportation of passengers shall refuse to carry any person offering himself or herself at any regular stopping place for carriage and who tenders the regular fare to any regular stopping place on the route of said motor vehicle, or between the terminals thereof, if allowed to carry passengers to such point under the certificate for such route, unless at the time of such offer the seats of said motor vehicle are fully occupied; provided, however, that the driver or operator of such motor vehicle may refuse transportation to any person who is in an intoxicated condition or conducting himself in a boisterous or disorderly manner.

AUTH: 69-12-201, MCA

IMP: 69-12-201 et seq., MCA

38.3.1503 SEATING CAPACITY (1) Pursuant to the terms of 69-11-203, MCA, concerning the number of vehicles to be provided and a seat to be provided every passenger, all class A ~~and B~~ common carriers authorized to transport passengers must provide a sufficient number of vehicles for that particular time schedule in order to provide every passenger tendering legal fare with a seat.

(2) Drivers and operators of any such vehicle must provide a seating accommodation to each paying passenger. No passenger may be transported by being required to stand in the aisle.

AUTH: 69-12-201, MCA

IMP: 69-11-203, MCA

38.3.1504 DISABLED PASSENGER VEHICLE - TRANSPORTATION OF PASSENGERS (1) In case a motor vehicle carrying passengers pursuant to a class A ~~or B~~ certificate becomes disabled while en route and is unable to proceed, any passenger or passengers on such disabled vehicle shall have the privilege of proceeding upon any other passenger-carrying vehicle operating under a class A ~~or class B~~ certificate from the commission on the same route or portion of route.

(2) It shall be the duty of the driver of any such passenger-carrying vehicle to stop on signal and receive such passengers to the extent of the unoccupied seating capacity of such vehicle and carry the same to destination or as near such destination as the route of the passing vehicle will permit.

(3) The transportation company whose passengers are thus relieved shall pay the second company a share of the transportation fee proportionate to the distance such passengers are transported by the relieving carrier.

AUTH: 69-12-201, MCA

IMP: 69-12-101, et seq., MCA

38.3.2001 LEASING OF POWER EQUIPMENT - GENERAL (1) The requirements for the leasing of power equipment by class A, B, C, and D carriers operating within the state are as contained in 69-12-611, MCA.

(2) The purpose of these leasing regulations is to insure that the primary responsibility for the conduct of regulated motor carrier operations remain with the certificated motor carrier, and that members of the public using motor carrier services are clearly advised of the identity of the responsible carrier, and that the leasing of equipment by an authorized motor carrier from the owner thereof, is not a subterfuge for leasing the carrier's certificate or permit to the owner-lessor.

(3) The leasing of power equipment by a certificated carrier to a noncertificated carrier is prohibited.

AUTH: 69-12-201, 69-12-204, MCA

IMP: 69-12-611, MCA

38.3.2402 WHO MUST FILE, INTRASTATE AND INTERSTATE

(1) Pursuant to the provisions of 69-12-501, MCA, all class A ~~and B~~ carriers must file tariffs of freight rates and charges with this commission.

(2) Carriers authorized to conduct interstate services in Montana are required to file with the commission one copy each of all tariffs applicable to such transportation for the information of the commission and general public.

AUTH: 69-12-201, MCA

IMP: 69-12-501, MCA

38.3.2403 PUBLIC INSPECTION (1) Copy of tariffs naming rates and fares to be charged, together with rules and regulations and time schedules shall be kept open for public inspection by every class A ~~or class B~~ motor carrier at its principal office, and at the terminus of each route, and at the principal station thereon.

AUTH: 69-12-201, MCA

IMP: 69-12-501, 69-12-502, 69-12-503, 69-12-504, 69-12-505, 69-12-511, MCA

38.3.2404 ASSISTANCE IN PREPARING TARIFFS AND TIME SCHEDULES (1) Information regarding construction of freight, express, and passenger tariffs, including classifications required of class A ~~and class B~~ carriers, will be furnished by the commission on application.

(2) Changes in such publications, or in any rule or regulation governing the same, must be made in accordance with the commission's "rules of practice."

(3) Samples of tariffs and time schedules, for use as guidelines in accomplishing tariffs, time schedules and revisions thereof, may be obtained, upon request from this commission. Assistance in preparing tariffs, time schedules, and revisions thereof shall be available.

AUTH: 69-12-201, MCA

IMP: 69-12-501, 69-12-502, 69-12-503, 69-12-504, 69-12-505, 69-12-511, MCA

38.3.3306 AGGREGATE AND INTERMEDIATE RATES VS. THROUGH RATES (1) No Class A ~~or B~~ motor carrier shall charge or receive any greater compensation in the aggregate for the transportation of persons, or of like kind of property, for a shorter than for a longer distance over the same line in the same direction, the shorter being included within the longer distance, nor charge any greater compensation as a through rate than the aggregate of the intermediate rates without commission approval. Upon a showing to the commission, after notice and hearing, a carrier may seek approval of such rate, and if supported by sufficient evidence, the commission may grant such greater rate for a shorter distance.

AUTH: 69-12-201, MCA

IMP: 69-12-501, 69-12-502, 69-12-503, 69-12-504, 69-12-505, 69-12-511, MCA

REASON: The commission proposes to amend the above-stated rules that refer to Class B motor carriers, which are no longer classified as motor carriers under Montana's Motor Carrier Act.

4. The department proposes to repeal the following rules:

38.3.1101 TRANSPORTATION OF HOUSEHOLD GOODS

AUTH: 69-12-201, MCA

IMP: 69-12-101, et seq., MCA

38.3.1505 MOTOR CARRIER AUTHORITY RECOGNITION

AUTH: 69-12-201, MCA

IMP: 69-12-201, MCA

38.3.2011 INTERCHANGE OF POWER EQUIPMENT

AUTH: 69-12-201, 69-12-204, MCA

IMP: 69-12-201, 69-12-204, MCA

38.3.3305 DISPLAY OF RATES - TAXIS

AUTH: 69-12-201, MCA

IMP: Title 69 chapter 12, part 5, MCA

REASON: The commission proposes to repeal rules that deal exclusively with Class B motor carriers, which are no longer classified as motor carriers under Montana's Motor Carrier Act. Additionally, the commission proposes to repeal ARM 38.3.2011, because the underlying statute approving interchange of power equipment (69-12-612, MCA) was repealed in 2013.

5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Loryn Johnson, Department of Public Service Regulation, 1701 Prospect Avenue, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; or e-mail loryn.johnson2@mt.gov, and must be received no later than 5:00 p.m., September 24, 2021.

6. The Montana Consumer Counsel, 111 North Last Chance Gulch, Suite 1B, Helena, MT 59620-1703, telephone (406) 444-2771, is available and may be contacted to represent consumer interests in this matter.

7. The commission, a commissioner, or a duly appointed presiding officer may preside over and conduct the hearing.

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

9. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The bill sponsor for HB 365 was contacted by email on July 15, 2021. The sponsor does not object to these proposed regulations.

10. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment and repeal of the above-referenced rules will not significantly or directly impact small businesses.

/s/ LUKE CASEY /s/ JAMES BROWN

Luke Casey James Brown

Rule Reviewer Chair

Public Service Commission

Certified to the Secretary of State on August 17, 2021.