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

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NOTICE OF AMENDMENT

 

TO:  All Concerned Persons

 

1.  On April 26, 2012 the Department of Public Service Regulation published MAR Notice No. 38-3-215 pertaining to the proposed amendment of the above-stated rule at page 877 of the 2012 Montana Administrative Register, Issue Number 8. 

 

2.  The department has amended the above-stated rule as proposed. 

 

3.  The department has thoroughly considered the comments and testimony received.  A summary of the comment received and the department's response are as follows:

 

COMMENT:  The commenter recommended that the department adopt the higher federal Department of Transportation minimum liability insurance requirements of $5 million for 16 passengers or more and $1.5 million for 15 passengers or less.  The commenter said the federal requirements have been in existence for many years and are considered the minimum amounts of insurance that should be carried by passenger motor carriers.

 

RESPONSE:  The reason for the amendment to the existing rule is that the higher insurance levels in the existing rule 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 amend the rule to revert to the previous minimum insurance levels rather than to keep the higher insurance requirements and then routinely grant rule waivers.

 

 

/s/  DENNIS LOPACH                                  /s/  TRAVIS KAVULLA                    

Dennis Lopach                                              Travis Kavulla

Rule Reviewer                                               Chairman

                                                                        Department of Public Service Regulation

 

           

Certified to the Secretary of State June 11, 2012.