SECTION 1. Section 39-14-14.1 of the General Laws in Chapter 39-14 entitled "Taxicabs and Limited Public Motor Vehicles" is hereby amended to read as follows:

39-14-14.1. Taximeter requirement. – (a) Every motor vehicle used in the transportation of passengers for compensation in a taxicab service over the publicly used highways of this state shall be equipped with a taximeter. Any motor carrier or operator who shall knowingly and willfully cause a motor vehicle to be operated as a taxicab ~~which~~ that is not equipped with a taximeter, or when so equipped the taximeter is not in a recording position for the purpose of registering charges at the time the service is rendered, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not to exceed twenty-five dollars ($25.00) for the first offense; and, upon conviction for a second offense, shall be fined not to exceed fifty dollars ($50.00) and shall have his or her certificate suspended for a period not to exceed thirty (30) days; and, upon conviction for a third offense, shall be fined not to exceed one hundred dollars ($100) and shall have his or her certificate suspended for a period not to exceed one hundred eighty (180) days.

(b) A certificate holder authorized to provide taxicab services is not required to utilize the vehicle's taximeter for registering charges when the transportation services are being coordinated by, and paid for by, a state department, authority, or agency on behalf of clients of said state department, authority, or agency, provided, the alternative method for registering or calculating charges is approved by the division.

SECTION 2. This act shall take effect upon passage.