Chapter 579

2006 -- S 2877 SUBSTITUTE A AS AMENDED

Enacted 07/14/06

A N A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

Introduced By: Senator William A. Walaska

Date Introduced: March 01, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-14-18 of the General Laws in Chapter 39-14 entitled "Taxicabs

and Limited Public Motor Vehicles" is hereby amended to read as follows:

39-14-18. Proof of financial responsibility. -- (a) The owner of every taxicab or limited

public motor vehicle shall, before operating or continuing to operate the a taxicab or limited

public motor vehicle on the public highways of this state, furnish to the division of motor

vehicles, as the owner shall elect, either:

(1) A public utilities and carriers, a certificate of insurance issued by an insurance

company authorized to transact business in this state, showing that the owner has a policy

insuring him or her against liability for injury to persons and damage to property which may be

caused by the operation of the taxicab or limited public motor vehicle, such policy to provide for

indemnity in the sum of not less than twenty-five three hundred thousand dollars ($25,000)

($300,000) in the case of one person injured and not less than fifty thousand dollars ($50,000) in

the case of injury to two (2) or more persons in any one accident, and indemnity of not less than

ten thousand dollars ($10,000) for damage to property; or combined single limit, or two hundred

fifty thousand dollars ($250,000) per person, five hundred thousand dollars ($500,000) per

accident bodily injury and one hundred thousand dollars ($100,000) property damage split limit.

(2) A certificate of the general treasurer of this state that the owner has filed in his or her

office, a bond of a surety company authorized to transact business in this state, payable to the

general treasurer, in the penal sum of at least twenty-five thousand dollars ($25,000), to

indemnify any person who may be injured or whose property may be damaged as a result of the

operation of the taxicab or limited public motor vehicle, and of any other taxicab or limited public

motor vehicle belonging to the owner; or

(3) Evidence of the financial responsibility of the owner to answer, in an amount not

exceeding fifty thousand dollars ($50,000) over and above his or her fixed liabilities, but

including the fair value of all his or her real estate and tangible and intangible personal property,

for injuries to persons or damage to property which may thereafter result from the operation of

the taxicab or limited public motor vehicle, and of any other taxicab or limited public motor

vehicle belonging to the owner, as the division may deem adequate; provided, however, that the

division may, if satisfied after a hearing that the bond as given under subsection (a)(2) or the

financial responsibility as shown by the statement filed in subsection (a)(3) are inadequate to

protect the public order, require the owner to file a new or additional bond within the limits

provided in this section unless the owner satisfies the registry of his or her financial responsibility

in an amount up to fifty thousand dollars ($50,000) as provided in this section.

(b) The insurance and the bond shall be noncancelable by either party to the contract,

except after five (5) days notice to the division of motor vehicles, furnished by the insurance

company or the surety company. Any person aggrieved by any decision of the division made

pursuant to the provisions of this section may, within ten (10) days after the rendition thereof,

appeal to the sixth division of the district court for a review of the decision. The court shall, as

soon as may be, give a summary hearing upon the appeal and shall have jurisdiction to affirm or

reverse the decision, or make such order in the premises as to the court shall seem just, and the

decision shall be subject to appeal to the supreme court in the same manner as provided for in

civil actions. The court may make reasonable rules to insure a prompt hearing of the appeals and

a speedy disposition thereof. The appeals shall not, however, operate as a suspension of any

decision theretofore rendered by the division and all decisions shall continue in force and be

operative unless reversed by the court. A party aggrieved by a final order of the court may seek

review thereof in the supreme court by writ of certiorari in accordance with the procedures

contained in section 42-35-16.

     SECTION 2. Sections 39-13-7 and 39-13-8 of the General Laws in Chapter 39-13

entitled "Motor Passenger Carriers" are hereby repealed.

39-13-7. Posting of bond to pay damages from jitney operation. -- Whenever any

person, association, or corporation has obtained and filed with the division of motor vehicles a

certificate of public convenience and necessity issued by the division for the operation of a jitney,

the person, association, or corporation, before operating a jitney, shall deposit with the general

treasurer of the state a bond running to the general treasurer and in form and substance approved

by the division of motor vehicles, with such surety, if any, as the division may require,

conditioned to pay any final judgment obtained against the principal named in the bond for any

injury to person or property or damage for causing the death of any person, which injury, death,

or damage may result from or have been caused by the use or operation of the jitney by the owner

thereof or his or her or its agents, employees, or drivers. Any person so injured or damaged or his

or her executor or administrator, or the executor or administrator of any person whose death was

so caused, may enforce payment of a judgment by suit on the bond in the name of the general

treasurer.

39-13-8. Amount of bond. -- The amount of the bond shall be determined upon the basis

of five hundred dollars ($500) for each passenger which each jitney described in the bond is

authorized to carry by the certificate of public convenience and necessity permitting the operation

of the jitney; provided, however, that the maximum amount of the bond need not exceed twenty

thousand dollars ($20,000).

     SECTION 3. Section 39-13-9 of the General Laws in Chapter 39-13 entitled "Motor

Passenger Carriers" is hereby amended to read as follows:

39-13-9. Proof of financial responsibility in lieu of bond. -- Proof of financial

responsibility. -- The provisions of sections 39-13-7 and 39-13-8 shall not apply to any person,

association, or corporation furnishing evidence to the division of motor vehicles of his or her or

its financial responsibility to answer in an amount not exceeding one hundred thousand dollars

($100,000) over and above his or her or its fixed liabilities, but including the fair value of all his

or her or its real estate and tangible and intangible personal property, for injuries to persons or

damage to property, or for causing the death of any person, which injury, death, or damage may

result from or have been caused by the use or operation of a jitney by the owner thereof or his or

her or its agents or employees. The owner of every jitney shall, before operating or continuing to

operate a jitney on the public highways of this state, furnish to the division of public utilities and

carriers a certificate of insurance issued by an insurance company authorized to transact business

in this state, showing that the owner has a policy that insures against liability for injury to

persons and damage to property which may be caused by the operation of the jitney, such policy

to provide for indemnity in the sum of not less than three hundred thousand dollars ($300,000)

combined single limit or its equivalent split level.

     SECTION 4. This act shall take effect upon passage.

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LC02611/SUB A

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