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Montana Administrative Register Notice 38-3-250 No. 18   09/22/2023    
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BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 38.3.201, 38.3.702, 38.3.705, 38.3.706, 38.3.707, 38.3.805, 38.3.2001, and 38.3.2101 and the repeal of ARM 38.3.1303 pertaining to deregulation of Class C motor carriers in Montana's Motor Carrier Act

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NOTICE OF PROPOSED AMENDMENT AND
REPEAL

 

NO PUBLIC HEARING CONTEMPLATED

 

TO: All Concerned Persons

 

1. The Department of Public Service Regulation proposes to amend and repeal the above-stated rules.

 

2. The Department of Public Service Regulation 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 of Public Service Regulation no later than 5:00 p.m. on October 10, 2023, to advise us of the nature of the accommodation that you need. Please contact the Department of Public Service Regulation, 1701 Prospect Avenue, P.O. Box 202601, Helena, MT 59620-2601; telephone (800) 646-6150; fax (406) 444-7618; or e-mail pschelp@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, 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

 

38.3.702 BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE (1) Every class A, 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

 

38.3.705 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, 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) Casualty (liability) insurance for class A, 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 motor carrier, other than as provided in (a)(i), 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.

(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, 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, 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

 

            38.3.2001 LEASING OF POWER EQUIPMENT - GENERAL (1)  The requirements for the leasing of power equipment by class A, 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 ensure 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

 

            38.3.2101 SALE OR TRANSFER OF CERTIFICATE OF AUTHORITY 

            (1) As authorized by 69-12-325, MCA, public service commission certificates may be sold or transferred. The application for sale or transfer shall be addressed to the commission, be sworn to, and contain the following information:

            (a)  the name and address of the owner and the number of the certificate, together with request that authority be granted such owner to sell or transfer all rights, title and interest under such certificate to the named vendee or purchaser;

            (b)  the name and main office address of the vendee or purchaser, that such vendee or purchaser is desirous of acquiring Certificate No. _____, that the operations to be conducted thereunder will be in accordance with the rules and regulations of the commission, and should the vendee or purchaser be a legal corporation, the officers of such corporation and their addresses;

            (c)  a list of equipment the vendee or purchaser intends to operate under such certificate, giving the state license number, year and name of the vehicle, the serial number, and seating capacity thereof; (In case the vehicles are to be used in transporting property, the maximum load to be carried must also be shown.)

            (d)  state that the vendee or purchaser will furnish before beginning operation, insurance, surety bond, or other approved security, covering all vehicles to be operated;

            (e)  if the vendee or purchaser desires to adopt the tariffs and time schedules, etc., of the vendor on file with the commission, it shall here so be stated and reference to each of such publications by number and effective date must be made; (Does not apply to class C carriers.)

            (f)  in case the vendee or purchaser does not desire to adopt the tariffs, time schedules, etc., of the vendor, it shall be so stated;

            (g)  in case the vendee or purchaser consists of more than one person (not incorporated) operating as a co-partnership under a trade name, then this item shall state that a certified copy of such partnership agreement is attached;

            (h)  shall set out the date on which it is desired that such sale or transfer shall become effective; no sale or transfer being retroactive, or effective until approved by the commission;

            (i)  shall state that the original certificate is attached, but if the original certificate issued by this commission has been lost, a statement showing the facts shall be inserted under this item or a separate affidavit reciting the loss of the certificate and accompanying the application;

            (j)  shall set forth that the sale or transfer is not for purpose of hindering, delaying or defrauding creditors;

            (k)  shall be accompanied by the vendee or purchaser's current financial balance sheet setting forth the assets, liabilities, and equity of the transferee, if the purchaser is in motor carrier transportation business, then the vendee's or purchaser's current financial income statement setting forth operating revenues, operating expenses, and net operating income of the transferee if said transferee is presently in the motor carrier transportation business; and

(l) shall be signed by the owner and the purchaser and notarized.

(m) Forms for applications for sale or transfer are available on the commission's web site or upon request.

            (2) It is required that full compliance and completion of sales and transfers be consummated within 30 days after the mailing of the notice of the commission's approval or suffer the revocation of such right to the certificate by the commission. 

 

AUTH: 69-12-201, MCA

IMP: 69-12-325, MCA

 

REASON: First, the Department of Public Service Regulation proposes to amend the above-listed rules to remove all references to Class C motor carriers, which are no longer regulated by the department. The 68th Montana State Legislature removed the ″Class C″ category of motor carriers from Montana′s motor carrier statutes (MCA Title 69, chapter 12) upon passage and approval of Senate Bill 33, an Act Eliminating Class C Motor Carrier Classification and Regulations of a Class C Motor Carrier by the Public Service Commission (enacted May 4, 2023).

 

Second, the department proposes to amend ARM 38.3.2001(2) by changing the verb ″insure″ (primarily meaning to obtain insurance) to ″ensure″ (meaning to make certain). This change clarifies the purposes of leasing regulations for motor carriers that are listed in the rule. 

 

4. The department proposes to repeal the following rule:

 

            38.3.1303 CLASS C CARRIER CONTRACTS -- REQUIRED PROVISIONS, SUMMARY

 

AUTH:  69-12-201, MCA

IMP:  69-12-301, 69-12-302, 69-12-313, MCA

 

REASON:  The Department of Public Service Regulation proposes to repeal ARM 38.3.1303, because this rule deals exclusively with ″Class C″ motor carriers, which are no longer regulated by the department. The 68th Montana State Legislature removed the ″Class C″ category from Montana′s motor carrier statutes (MCA Title 69, chapter 12) upon passage and approval of Senate Bill 33, An Act Eliminating Class C Motor Carrier Classification and Regulations of a Class C Motor Carrier by the Public Service Commission (enacted May 4, 2023).

 

5. Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to the Department of Public Service Regulation, 1701 Prospect Avenue, P.O. Box 202601, Helena, MT, 59620-2601; telephone (406) 800-646-6150; fax (406) 444-7618; or e-mail pschelp@mt.gov, and must be received no later than 5:00 p.m., on October 20, 2023. Please reference Docket No. 2023.05.038 when submitting a comment.

 

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. If the department receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date.  Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be 4 persons based on 35 Class C Motor Carriers.

 

8. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by the department.  Persons who wish to have their name and email address added to the list shall contact the Department of Public Service Regulation, 1701 Prospect Avenue, P.O. Box 202601, Helena, MT 59620-2601, by phone to: 800-646-6150, by fax to: (406) 444-7618, emailed to pschelp@mt.gov, or may be made by completing a request form at any rules hearing held by the department.

 

9. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sosmt.gov/ARM/Register.

 

10. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by telephone and email on August 22, 2023.

 

11. 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 and directly impact small businesses.

 

 

/s/ LAURA VACHOWSKI                         /s/ JAMES BROWN                                   

Laura Vachowski                                     James Brown

Rule Reviewer                                         President

                                                                 Public Service Commission

           

Certified to the Secretary of State September 12, 2023.

 

 

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