BEFORE THE DEPARTMENT OF PUBLIC SERVICE REGULATION

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 38.3.706 pertaining to the regulation of motor carriers

) ) ) ) ) )

NOTICE OF PROPOSED AMENDMENT   NO PUBLIC HEARING CONTEMPLATED

 

TO:  All Concerned Persons

 

1.  On June 21, 2012, the Department of Public Service Regulation proposes to amend the above-stated rule.

 

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 May 25, 2012, 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 asolem@mt.gov.

 

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

 

            38.3.706  ENDORSEMENTS  (1) through (2)(a) remain the same.

            (b)  Casualty (liability) insurance (Endorsement MV4) shall be issued in an amount no less than:

            (i)  $300,000 100,000 for 3 7 passengers or less;

            (ii)  $600,000 500,000 for 4 8 to 6 15 passengers;

            (iii)  $1,000,000 750,000 for 7 16 to 10 30 passengers;

            (iv)  $1,500,000 5,000,000 for 11 31 to 15 passengers or more;

            (v)  $5,000,000 for 16 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;

            (vi)  $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;

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

            (3)  remains the same. 

 

AUTH: 69-12-201, MCA

IMP: 69-12-402, MCA

 

REASON:  The existing minimum insurance levels have caused a few passenger motor carriers to request waivers of the rule due to financial hardship.  They have demonstrated that their insurance costs will increase to such an extent that the rate increases necessary to recover those costs could affect the viability of their businesses.  The commission believes it is better public policy to revert to the previous minimum insurance levels rather than grant waivers of a commission rule.

 

4.  Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Aleisha Solem, Department of Public Service Regulation, 1701 Prospect Avenue, P. O. Box 202601, Helena, Montana, 59602-2601; telephone (406) 444-6170; fax (406) 444-7618; or e-mail asolem@mt.gov, and must be received no later than 5:00 p.m., May 30, 2012.

 

5.  If persons who are directly affected by the proposed amendment wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Dennis Lopach, Legal Division, Department of Public Service Regulation at the above address no later than 5:00 p.m., May 30, 2012.

 

6.  If the agency 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 seven entities based on 72 entities affected.

 

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 #4 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 this 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/  DENNIS LOPACH                     /s/  TRAVIS KAVULLA

Dennis Lopach                                Travis Kavulla

Rule Reviewer                                 Chairman

                                                          Department of Public Service Regulation

           

Certified to the Secretary of State April 16, 2012.