Assembly Bill No. 677–Committee on Transportation

March 22, 1999

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Referred to Committee on Transportation

 

SUMMARY—Provides immunity under certain circumstances for short-term lessors of vehicles from penalties that may be imposed by transportation services authority for unlawful use of vehicles leased by short-term lessors. (BDR 58-1599)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to vehicles; providing immunity under certain circumstances for short-term lessors of vehicles from administrative fines and other penalties that may be imposed by the transportation services authority for vehicles leased by short-term lessors that are operated in passenger service without a certificate of public convenience and necessity; providing for the release of such a vehicle impounded by the transportation services authority to a short-term lessor; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 706 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. Notwithstanding any provision of NRS 706.011 to 706.791,

1-4 inclusive, and this section to the contrary, if the registered owner of a

1-5 vehicle which is impounded pursuant to NRS 706.476 is a short-term

1-6 lessor licensed pursuant to NRS 482.363 who is engaged in the business

1-7 of renting or leasing vehicles in accordance with NRS 482.295 to

1-8 482.3159, inclusive, the registered owner is not liable for any

1-9 administrative fine or other penalty that may be imposed by the authority

1-10 for the operation of a passenger vehicle in violation of NRS 706.011 to

1-11 706.791, inclusive, if:

1-12 (a) At the time that the vehicle was impounded, the vehicle was in the

1-13 care, custody or control of a lessee; and

2-1 (b) The registered owner did not know or have reason to know that the

2-2 vehicle would be used in violation of NRS 706.011 to 706.791, inclusive.

2-3 2. A short-term lessor may establish that a vehicle was subject to the

2-4 care, custody or control of a lessee at the time that the vehicle was

2-5 impounded pursuant to NRS 706.476 by submitting to the authority a

2-6 true copy of the lease or rental agreement pursuant to which the vehicle

2-7 was leased or rented to the lessee by the short-term lessor. The

2-8 submission of a true copy of a lease or rental agreement is prima facie

2-9 evidence that the vehicle was in the care, custody or control of the lessee.

2-10 3. Upon the receipt of:

2-11 (a) A true copy of a written lease or rental agreement pursuant to

2-12 subsection 2 which evidences that the vehicle impounded by the authority

2-13 pursuant to NRS 706.476 was under the care, custody or control of a

2-14 lessee and not the registered owner of the vehicle; and

2-15 (b) An affidavit made by the short-term lessor which states that the

2-16 registered owner did not know or have reason to know that the vehicle

2-17 would be operated in violation of NRS 706.011 to 706.791, inclusive,

2-18 the authority shall release the vehicle to the short-term lessor.

2-19 4. As used in this section, "short-term lessor" has the meaning

2-20 ascribed to it in NRS 482.053.

2-21 Sec. 2. NRS 706.011 is hereby amended to read as follows:

2-22 706.011 As used in NRS 706.013 to 706.791, inclusive, and section 1

2-23 of this act, unless the context otherwise requires, the words and terms

2-24 defined in NRS 706.013 to 706.146, inclusive, have the meanings ascribed

2-25 to them in those sections.

2-26 Sec. 3. NRS 706.476 is hereby amended to read as follows:

2-27 706.476 Except as otherwise provided in section 1 of this act:

2-28 1. A vehicle used as a taxicab, limousine or other passenger vehicle in

2-29 passenger service must be impounded by the authority if a certificate of

2-30 public convenience and necessity has not been issued authorizing its

2-31 operation. A hearing must be held by the authority no later than the

2-32 conclusion of the second normal business day after impoundment,

2-33 weekends and holidays excluded. As soon as practicable after

2-34 impoundment, the authority shall notify the registered owner of the vehicle:

2-35 (a) That the registered owner of the vehicle must post a bond in the

2-36 amount of $20,000 to ensure his presence at all proceedings held pursuant

2-37 to this section;

2-38 (b) Of the time set for the hearing; and

2-39 (c) Of his right to be represented by counsel during all phases of the

2-40 proceedings.

2-41 2. The authority shall hold the vehicle until the registered owner of the

2-42 vehicle appears and:

2-43 (a) Proves that he is the registered owner of the vehicle;

3-1 (b) Proves that he holds a valid certificate of public convenience and

3-2 necessity;

3-3 (c) Proves that the vehicle meets all required standards of the authority;

3-4 and

3-5 (d) Posts a bond in the amount of $20,000 with the [administrator.]

3-6 authority.

3-7 The authority shall return the vehicle to its registered owner when the

3-8 owner meets the requirements of this subsection and pays all costs of

3-9 impoundment.

3-10 3. If the registered owner is unable to meet the requirements of

3-11 paragraph (b) or (c) of subsection 2, the authority may assess an

3-12 administrative fine against the registered owner for each such violation in

3-13 the amount of $5,000. The maximum amount of the administrative fine that

3-14 may be assessed against a registered owner for a single impoundment of his

3-15 vehicle pursuant to this section is $10,000. The authority shall return the

3-16 vehicle after any administrative fine imposed pursuant to this subsection

3-17 and all costs of impoundment have been paid.

3-18 Sec. 4. NRS 706.756 is hereby amended to read as follows:

3-19 706.756 1. Except as otherwise provided in subsection 2, any person

3-20 who:

3-21 (a) Operates a vehicle or causes it to be operated in any carriage to

3-22 which the provisions of NRS 706.011 to 706.861, inclusive, and section 1

3-23 of this act, apply without first obtaining a certificate, permit or license, or

3-24 in violation of the terms thereof;

3-25 (b) Fails to make any return or report required by the provisions of NRS

3-26 706.011 to 706.861, inclusive, and section 1 of this act, or by the authority

3-27 or the department pursuant to the provisions of NRS 706.011 to 706.861,

3-28 inclusive [;] , and section 1 of this act;

3-29 (c) Violates, or procures, aids or abets the violating of, any provision of

3-30 NRS 706.011 to 706.861, inclusive [;] , and section 1 of this act;

3-31 (d) Fails to obey any order, decision or regulation of the authority or the

3-32 department;

3-33 (e) Procures, aids or abets any person in his failure to obey such an

3-34 order, decision or regulation of the authority or the department;

3-35 (f) Advertises, solicits, proffers bids or otherwise holds himself out to

3-36 perform transportation as a common or contract carrier in violation of any

3-37 of the provisions of NRS 706.011 to 706.861, inclusive [;] , and section 1

3-38 of this act;

3-39 (g) Advertises as providing:

3-40 (1) The services of a fully regulated carrier; or

3-41 (2) Towing services,

3-42 without including the number of his certificate of public convenience and

3-43 necessity or contract carrier’s permit in each advertisement;

4-1 (h) Knowingly offers, gives, solicits or accepts any rebate, concession or

4-2 discrimination in violation of the provisions of this chapter;

4-3 (i) Knowingly, willfully and fraudulently seeks to evade or defeat the

4-4 purposes of this chapter;

4-5 (j) Operates or causes to be operated a vehicle which does not have the

4-6 proper identifying device;

4-7 (k) Displays or causes or permits to be displayed a certificate, permit,

4-8 license or identifying device, knowing it to be fictitious or to have been

4-9 canceled, revoked, suspended or altered;

4-10 (l) Lends or knowingly permits the use of by one not entitled thereto any

4-11 certificate, permit, license or identifying device issued to the person so

4-12 lending or permitting the use thereof; or

4-13 (m) Refuses or fails to surrender to the authority or department any

4-14 certificate, permit, license or identifying device which has been suspended,

4-15 canceled or revoked pursuant to the provisions of this chapter,

4-16 is guilty of a misdemeanor, and upon conviction thereof shall be punished

4-17 by a fine of not less than $100 nor more than $1,000, or by imprisonment in

4-18 the county jail for not more than 6 months, or by both fine and

4-19 imprisonment.

4-20 2. A person convicted of a misdemeanor for a violation of the

4-21 provisions of NRS 706.386 or 706.421 shall be punished:

4-22 (a) For the first offense by a fine of not less than $500 nor more than

4-23 $1,000;

4-24 (b) For a second offense within 12 consecutive months and each

4-25 subsequent offense by a fine of $1,000; or

4-26 (c) For any offense, by imprisonment in the county jail for not more than

4-27 6 months, or by both the prescribed fine and imprisonment.

4-28 3. Any person who operates or permits the operation of a vehicle in

4-29 passenger service without a certificate of public convenience and necessity

4-30 issued pursuant to NRS 706.391 is guilty of a gross misdemeanor. If a law

4-31 enforcement officer witnesses a violation of this subsection, he may cause

4-32 the vehicle to be towed immediately from the scene.

4-33 4. The fines provided in this section are mandatory and must not be

4-34 reduced under any circumstances by the court.

4-35 5. Any bail allowed must not be less than the appropriate fine provided

4-36 for by this section.

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