BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION
OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On September 21, 2011, at 9:00 a.m., the Department of Public Service Regulation will hold a public hearing in the Bollinger Room at 1701 Prospect Avenue, Helena, Montana, to consider the proposed adoption and repeal of 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 Department of Public Service Regulation no later than 4:00 p.m. on September 19, 2011, to advise us of the nature of the accommodation that you need. Please contact Aleisha Solem, Department of Public Service Regulation, 1701 Prospect Avenue, P.O. Box 202601, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; TDD (406) 444-4212; or e-mail email@example.com.
3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
38.3.402 APPLICATION AND PROTEST FEES (1) Every application for operating authority and every protest to application for operating authority must be accompanied by the appropriate filing fee:
(a) The application fee for a certificate of public convenience and necessity to operate as a motor carrier is $500, $300 to be refunded by the commission if the application does not proceed to hearing.
(b) The application fee for a certificate of public convenience and necessity to operate as a motor carrier under a federal or state contract, as provided under 69‑12‑324, MCA, is $100.
(c) The protest fee for a motor carrier protest or motor carrier applicant protest of an application for a certificate of public convenience and necessity is
$200, $500 all to be refunded by the commission if the application does not proceed to hearing.
(d) If a written request for the withdrawal of a protest is received by the commission at least two business days before the scheduled hearing, the protest fee will be refunded by the commission.
AUTH: 69-12-201, MCA
IMP: 69-12-311, 69-12-312, 69-12-313, 69-12-314, 69-12-324, MCA
REASON: It is reasonably necessary to increase the protest fee $300 in order to collect revenue that is commensurate with the cost of conducting a public hearing for the purpose of granting a certificate of public convenience and necessity and to equilibrate the fees charged to applicants and protestants. This change could potentially affect approximately 200 regulated motor carriers currently holding certificates of public convenience and necessity. Further, it is reasonably necessary to clarify the commission's protest fee refund policy and implement a deadline for the withdrawal of a protest in order for the commission to cancel a scheduled public hearing and notify the public in a timely manner.
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
REASON: It is reasonably necessary to clarify that cargo insurance is applicable only to household goods intrastate carriers.
38.3.705 FORMS FOR CERTIFICATE OF INSURANCE (1) The following forms shall be utilized by the department and may be obtained from the
Transportation Division of the commission, 1701 Prospect Avenue, Helena, Montana 59620-2601.
(a) Form 1. Class A and B motor carrier merchandise or commodity (cargo) liability certificate of insurance, stock form no. 126.
(b) Form 2. Common and contract motor carrier automobile bodily injury liability and property damage liability certificate of insurance, stock form no. 125.
(c)(a) Form 5 Form K. Uniform notice of cancellation of motor carrier insurance policies , stock form K.
(d)(b) Form 6 Form H. Uniform motor carrier cargo certificate of insurance , stock form H.
(e)(c) Form 7 Form E. Uniform motor carrier bodily injury and property damage liability certificate of insurance , stock form E.
AUTH: 69-12-201, MCA
IMP: 69-12-402, MCA
REASON: It is reasonably necessary to update the references to the standard insurance forms that must be filed with the commission to reflect current insurance industry practices.
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" and "Endorsement MV2" available from the office of the commission.
(2) The following terms, conditions and requirements are
hereby deemed a substantive part of all policies issued, and are hereby incorporated therein:
(a) Cargo insurance for household good carriers (Endorsement MV2) shall be issued in an amount no less than $10,000.
(i) $1,000 for cargo transported in a vehicle designed, equipped, and primarily intended for transportation of 7 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;
(ii) $10,000 for all other vehicles.
(b) Casualty (liability) insurance (Endorsement MV4) shall be issued in an amount no less than:
100,000300,000 for 73 passengers or less;
500,000600,000 for 84 to 156 passengers;
750,0001,000,000 for 167 to 3010 passengers;
5,000,0001,500,000 for 3111 to 15 passengers or more;
except any motor carrier, other than as provided in (b)(i) above, operating under a certificate of public convenience and necessity authorizing passenger operations only within a particular city or 10 mile radius thereof is required to carry a minimum of $500,000 insurance regardless of size of vehicle used;$5,000,000 for 16 passengers or more.
(vi) $100,000 for transportation of nonhazardous freight in a vehicle designed, equipped and primarily intended for transportation of 7 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;
(vii) $500,000 for transportation of nonhazardous freight for all other vehicles;
(viii) the federal department of transportation minimum insurance limits for hazardous materials freight, as hazardous materials is defined by that department.
(3) These endorsements must be executed, countersigned and attached to the original policy when issued.
The policy to which this endorsement is attached is written in pursuance of and is to be construed in accordance with the MOTOR CARRIER ACT, (TITLE 8, CHAPTER 1, RCM 1947, Sections 8-101 to 8-130) , and the rules and regulations of the Public Service Commission of the State of Montana adopted thereunder. The policy is to be filed with the state in accordance with said statutes and rules.
In consideration of the premium stated in the policy to which this endorsement is attached, the Company hereby agrees to pay any final judgment recovered against the insured for bodily injury to or the death of any person or loss of or damage to property of others (excluding injury to or death of the insured's employees while engaged in the course of their employment, and loss of or damage to property of the insured, and property transported by the insured, designated as cargo) , resulting from the negligent operation, maintenance, or use of motor vehicles under certificate of public convenience and necessity or permit issued to the insured by the Public Service Commission of the State of Montana, under the Motor Carrier Act (R.C.M. 1947, Sections 8-101 et seq.) , within the limits of liability hereinafter provided, regardless of whether such motor vehicles are specifically described in the policy or not. It is understood and agreed that upon failure of the Company to pay any such final judgment recovered against the insured, the judgment creditor may maintain an action in any court of competent jurisdiction against the Company to compel such payment. The bankruptcy or insolvency of the insured shall not relieve the Company of any of its obligations hereunder. The liability of the Company extends to such losses, damages, injuries, or deaths whether incurring on the route or in the territory authorized to be served by the insured or elsewhere in the State of Montana.
The liability of the Company on each motor vehicle for the following limits shall be a continuing one notwithstanding any recovery hereunder:
SCHEDULE OF LIMITS
MOTOR CARRIERS - BODILY INJURY LIABILITY - PROPERTY DAMAGE LIABILITY
(1) KIND OF EQUIPMENT |
(2) Limit for bodily injuries to or death of one person |
(3) Limit for bodily injuries to or death of all persons injured or killed in any one accident (subject to a maximum of $25,000 for bodily injuries to or death of one person) |
(4) Limit for loss or damage in any one accident to property of others (excluding cargo)
Passenger Equipment (Seating Capacity
Seven passengers or less
8 to 12 passengers, inclusive
13 to 20 passengers, inclusive
21 to 30 passengers, inclusive
30 passengers or more
Freight Equipment All motor vehicles used in the transportation of property |
25,000 $25,000 |
250,000 $100,000 |
Nothing contained in the policy or any other endorsement thereon, nor the violation of any of the provisions of the policy or of any endorsement thereon by the insured, shall relieve the Company from liability hereunder or from the payment of any such final judgment.
This endorsement may not be cancelled without cancellation of the policy to which it is attached. Such cancellation may be effected by the Company or the insured giving thirty (30) days' notice in writing to the Public Service Commission of the State of Montana at its offices at 1227 11th Avenue, Helena, Montana 59601, said thirty (30) days' notice to commence to run from the date notice is actually received at the office of said Commission.
Attached to and forming a part of Policy No. ........................................................................................................................... issued by the
Insurance Company to
(Date) (Signature of agent or other officer) Inland Marine Insurance (Cargo)
INLAND MARINE INSURANCE (CARGO)
PROPERTY BEING TRANSPORTED
The policy to which this endorsement is attached is written in pursuance of and is to be construed in accordance with Chapter 310, Revised Codes of Montana, 1935, (Sections 3847.1-3847.28) , and the rules and regulations of the Public Service Commission of the State of Montana adopted thereunder. The policy is to be filed with the State in accordance with said statute.
In consideration of the premium stated in the policy to which this endorsement is attached, the Company hereby agrees to pay, within the limits of liability hereinafter provided, any shipper or consignee for all loss of or damage to all property belonging to such shipper or consignee, and coming into the possession of the Insured in connection with its transportation service, for which loss or damage the Insured may be held legally liable, regardless of whether the motor vehicles, terminals, warehouses, and other facilities used in connection with the transportation of the property hereby insured are specifically described in the policy or not. The liability of the Company extends to such losses or damages whether occurring on the route or in the territory authorized to be served by the Insured or elsewhere.
Within the limits of liability hereinafter provided it is further understood and agreed that no condition, provision, stipulation, or limitation contained in the policy, or any other endorsement thereon or violation thereof, or of this endorsement by the Insured, shall affect in any way the right of any shipper or consignee, or relieve the Company from liability for the payment of any claim for which the Insured may be held legally liable to compensate shippers or consignees, irrespective of the financial responsibility or lack thereof or insolvency or bankruptcy of the Insured. However, all terms, conditions and limitations in the policy to which this endorsement is attached are to remain in full force and effect as binding between the Insured and the Company. The Insured agrees to reimburse the Company for any payment made by the Company on account of any loss or damage involving a breach of the terms of the policy and for any payment that the Company would not have been obligated to make under the provisions of the policy, except for the agreement contained in this endorsement.
The liability of the Company for the limits provided in this endorsement shall be a continuing one notwithstanding any recovery hereunder. The Company shall not be liable for an amount in excess of $1,000, in respect of any loss of or damage to or aggregate of losses or damages of or to the property hereby insured occurring at any one time or place, nor in any event for an amount in excess of $1,000, in respect of the loss of or damage to such property carried on any one motor vehicle, whether or not such losses or damages occur while such property is on a motor vehicle or otherwise.
This endorsement may not be cancelled without cancellation of the policy to which it is attached. Such cancellation may be effected by the Company or the Insured giving thirty (30) days' notice in writing to the Public Service Commission at its office at 1227 11th Avenue, Helena, Montana 59601, said thirty (30) days' notice to commence to run from the date notice is actually received at the office of said Public Service Commission.
Attached to and forming a part of Policy No ........................issued by the .......................... (herein called Company) of......................... ..........................................to......................................
Dated at ......................this day of ............................, 19...
Countersigned by ...........................................................................
(Authorized Company Representative)
AUTH: 69-12-201, MCA
IMP: 69-12-402, MCA
REASON: It is reasonably necessary to increase the amount of casualty (liability) insurance in order to adequately protect motor carrier passengers in the event of an accident. Further, it is reasonably necessary to remove antiquated forms from the commission's administrative rules.
38.3.707 MINIMUM LIMITS OF INSURANCE COVERAGE - BONDS UNACCEPTABLE (1) Minimum limits of insurance coverage as required by this commission are outlined in Endorsement MV-4 and Endorsement MV-2.
(2) Cargo insurance is not required for interstate carriers.
(3)(2) Bonds in lieu of insurance coverage are not acceptable for either interstate or intrastate carriers.
AUTH: 69-12-201, MCA
IMP: 69-12-402, MCA
REASON: It is reasonably necessary to remove interstate motor carriers as they are not subject to regulation by the commission.
38.3.708 SELF-INSURANCE (1) An application for self- insurance shall be in writing and duly verified by the motor carrier making same.
(2) The application shall set forth a detailed statement of the financial assets and liabilities of the applicant and contain an express agreement on the part of the applicant motor carrier to the effect that if self-insurance is permitted, the motor carrier will promptly notify the
Ccommission of any material change thereafter occurring in the motor carrier's financial status.
(3) The privilege of self-insurance may be withdrawn at any time by the
Ccommission. The failure of a motor carrier to promptly notify the Ccommission of any material change in said motor carrier's financial status or failure to correctly exhibit to the Ccommission the motor carrier's financial status, either in an original application for self-insurance or in any subsequent report, shall be sufficient cause for revocation of the motor carrier's certificate of public convenience and necessity.
(Form P. S. C. "A" - Self-Insurance)
APPLICATION FOR SELF-INSURANCE
To the Department of Public Service Regulation
of the State of Montana,
Motor Carrier Division,
The undersigned, _________________________________________ (official title of motor carrier applicant) hereby makes application to the Department of Public Service Regulation for self-insurance pursuant to Section 69-12-402, MCA, and in this behalf represents and shows unto the Commission as follows:
That the following is a full, true and correct statement of assets and liabilities of the applicant, to-wit:
(List real estate, household (List indebtedness secured
furnishing, automobiles, by mortgage, conditional
stocks and/or bonds and money bill of sale, lien, etc.,
in bank separately.) separate from unsecured
____________________________ Total indebt. $_____________
Total value as'ts. $________ Net worth $_________________
The undersigned motor carrier further promises and agrees that in the event self-insurance is permitted said motor carrier will promptly notify the Commission of any material change in the financial status of said motor carrier.
Dated at ______________, Montana, this _____________, 19__
(official title of motor carrier)
(title of person signing, i.e.,
whether owner, manager, president
State of Montana )
County of )
______________________________ being first duly sworn upon oath deposes and says: that he is _________________________________ (state official capacity) of the ______________________________ (official title of motor carrier) and makes this verification for and upon behalf of said motor carrier; that he has read the above and foregoing application for self-insurance and knows the contents thereof and that the matters and things therein stated are true of his own knowledge.
Subscribed and sworn to before me this _________ day of ________________, 19 __.
Notary public for the State of Montana
Residing at __________________________
My commission expires ________________
AUTH: 69-12-201, MCA
IMP: 69-12-402, MCA
REASON: Removal of Form P.S.C. "A"- Self-Insurance from the administrative rules is reasonably necessary because the substantive information contained on the form is required by the rule.
4. The department proposes to repeal the following rule:
38.3.712 COMMERCIAL TOW TRUCK FIRMS -- PROOF OF REQUIRED INSURANCE which can be found on page 38-186.3 of the Administrative Rules of Montana.
AUTH: 69-12-201, MCA
IMP: 69-12-102(2), MCA
REASON: Commercial tow truck firms are no longer required to file proof of insurance with the Department of Public Service Regulation following enactment of HB 103 as passed in the 2009 legislative session.
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: Aleisha Solem, Department of Public Service Regulation, 1701 Prospect Avenue, P.O. Box 202601, Helena, Montana, 59620-2601; telephone (406) 444-6170; fax (406) 444-7618; or e-mail firstname.lastname@example.org, and must be received no later than 5:00 p.m., September 30, 2011.
6. Jim Paine, Department of Public Service Regulation, has been designated to preside over and conduct this hearing.
7. 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 written 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 #6 above or may be made by completing a request form at any rules hearing held by the department.
8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
9. The bill sponsor contact requirements of 2-4-302, MCA do not apply.
/s/ JIM PAINE /s/ TRAVIS KAVULLA
Jim Paine Travis Kavulla
Alternate Rule Reviewer Chairman
Public Service Regulation
Certified to the Secretary of State August 15, 2011.