Senate Bill No. 324–Senator Washington

March 5, 1999

____________

Referred to Committee on Transportation

 

SUMMARY—Provides for regulation of taxicabs by local governments under certain circumstances. (BDR 58-1177)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

~

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 taxicabs; providing for the regulation of taxicabs by local governments under certain circumstances; requiring the department of motor vehicles and public safety to adopt regulations concerning financial responsibility for liability of such taxicabs; 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

1-2 the provisions set forth as sections 2 to 17, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 17, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 to

1-5 6, inclusive, of this act, have the meanings ascribed to them in those

1-6 sections.

1-7 Sec. 3. "Department" means the department of motor vehicles and

1-8 public safety.

1-9 Sec. 4. "Governing body" means the governing body of a county

1-10 whose population is 100,000 or more but less than 400,000, or of an

1-11 incorporated city located within such a county.

1-12 Sec. 5. 1. "Taxicab" means a motor vehicle:

1-13 (a) Which is designed or constructed to accommodate and transport

1-14 not more than six passengers, including the driver;

1-15 (b) Which operates for hire 50 percent or more of the time during the

1-16 calendar year; and

1-17 (c) Which is:

2-1 (1) Fitted with a taximeter or other device to indicate and determine

2-2 the passenger fare charged;

2-3 (2) Used in the transportation of passengers or light express, or

2-4 both, for which a charge or fee is received; or

2-5 (3) Operated in any service which is held out to the public as being

2-6 available for the transportation of passengers from place to place in the

2-7 State of Nevada.

2-8 2. "Taxicab" does not include a motor vehicle of:

2-9 (a) A common motor carrier;

2-10 (b) A contract motor carrier which operates along fixed routes; or

2-11 (c) An employer who operates the vehicle for the transportation of his

2-12 employees, whether or not the employees pay for the transportation.

2-13 Sec. 6. "Taxicab motor carrier" means a person who owns and

2-14 operates a taxicab or who operates a taxicab pursuant to a lease

2-15 agreement.

2-16 Sec. 7. 1. Sections 2 to 17, inclusive, of this act apply to:

2-17 (a) Any county whose population is 100,000 or more but less than

2-18 400,000; or

2-19 (b) Any incorporated city located within such a county,

2-20 if the governing body of the county or city has enacted an ordinance

2-21 pursuant to section 8 of this act approving the exclusion of the county or

2-22 city from the jurisdiction of the transportation services authority with

2-23 regard to the regulation of taxicab motor carriers.

2-24 2. Within any such county or city, the provisions of this chapter that

2-25 confer regulatory authority over taxicab motor carriers upon the

2-26 transportation services authority do not apply.

2-27 Sec. 8. 1. A governing body of a county whose population is

2-28 100,000 or more but less than 400,000 or of an incorporated city located

2-29 within such a county may, by ordinance, exclude from the jurisdiction of

2-30 the transportation services authority taxicab motor carriers that are

2-31 based and primarily operate within the county or city.

2-32 2. If a governing body enacts an ordinance approving the exclusion

2-33 of the county or city from the jurisdiction of the transportation services

2-34 authority, the governing body may enact such other ordinances as it may

2-35 deem necessary to regulate the conduct of the business of taxicab motor

2-36 carriers that are based and primarily operate within the jurisdiction of

2-37 the governing body. If enacted, such ordinances must be consistent with

2-38 the legislative policies set forth in NRS 706.151.

2-39 3. Upon enacting an ordinance approving the exclusion of a county

2-40 or city from the jurisdiction of the transportation services authority, the

2-41 governing body shall notify the transportation services authority and the

2-42 department of the ordinance.

3-1 4. Not later than 30 days after being notified that the governing body

3-2 of a county or city has enacted an ordinance approving the exclusion of

3-3 the county or city from the jurisdiction of the transportation services

3-4 authority, the transportation services authority shall forward to the

3-5 department all liability insurance policies, certificates of insurance,

3-6 bonds of a surety company and other surety which have been filed with

3-7 the transportation services authority for those taxicab motor carriers that

3-8 are based and operate primarily within the jurisdiction of the governing

3-9 body which enacted the ordinance.

3-10 Sec. 9. The department may, by regulation, adopt standards for

3-11 safety for drivers and vehicles of taxicab motor carriers that are excluded

3-12 from the jurisdiction of the transportation services authority pursuant to

3-13 section 8 of this act.

3-14 Sec. 10. A person who leases a taxicab to an independent contractor

3-15 is jointly and severally liable with the independent contractor for any

3-16 violation of the provisions of sections 2 to 17, inclusive, of this act or the

3-17 regulations adopted pursuant thereto, and shall ensure that the

3-18 independent contractor complies with such provisions and regulations.

3-19 Sec. 11. The department shall adopt regulations requiring all

3-20 taxicab motor carriers that are excluded from the jurisdiction of the

3-21 transportation services authority pursuant to section 8 of this act to

3-22 maintain a contract of insurance against liability for injury to persons

3-23 and damage to property for each taxicab or other vehicle operated in the

3-24 course of business by the taxicab motor carrier. The amounts of coverage

3-25 required by the regulations:

3-26 1. Must not exceed a total of:

3-27 (a) For bodily injury to or the death of one person in any one

3-28 accident, $250,000;

3-29 (b) Subject to the limitations of paragraph (a), for bodily injury to or

3-30 the death of two or more persons in any one accident, $500,000; and

3-31 (c) For injury to or destruction of property in any one accident,

3-32 $50,000; or

3-33 2. Must not exceed a combined single-limit for bodily injury to or the

3-34 death of one or more persons and for injury to or destruction of property

3-35 in any one accident, of $500,000.

3-36 Sec. 12. 1. Except as otherwise provided in subsection 2, a taxicab

3-37 motor carrier that is subject to the provisions of section 11 of this act may

3-38 operate under a program of self-insurance in compliance with the

3-39 provisions of section 13 or 14 of this act in lieu of the insurance against

3-40 liability required by the regulations adopted pursuant to section 11 of this

3-41 act.

4-1 2. Such a taxicab motor carrier shall not operate under a program of

4-2 self-insurance if any judgment recovered against it has not been paid in

4-3 full.

4-4 Sec. 13. 1. In lieu of the insurance against liability required by the

4-5 regulations adopted pursuant to section 11 of this act, a taxicab motor

4-6 carrier that is subject to the provisions of section 11 of this act may file

4-7 with the department:

4-8 (a) A bond of a surety company authorized to transact business in this

4-9 state; or

4-10 (b) A bond with at least two individual sureties each owning real

4-11 property within this state, and together having equities equal in value to

4-12 at least twice the amount of the bond, if the real property is scheduled in

4-13 the bond and the bond is approved by a judge of a court of record.

4-14 2. Any bond filed pursuant to subsection 1 must be conditioned for

4-15 payments in the amounts and under the same circumstances as would be

4-16 required in a contract of insurance against liability complying with the

4-17 regulations adopted pursuant to section 11 of this act. The bond may not

4-18 be canceled unless 10 days before cancellation written notice is given to

4-19 the department.

4-20 3. Upon the filing of notice by the department in the office of the

4-21 county clerk of the county in which the real property is located, the bond

4-22 constitutes a lien in favor of this state upon the real property scheduled in

4-23 the bond. The lien exists in favor of any holder of a judgment against the

4-24 person who has filed the bond.

4-25 4. If a judgment rendered against the principal on a bond filed

4-26 pursuant to subsection 1 is not satisfied within 60 days after it has

4-27 become final, the judgment creditor may, for his own use and benefit and

4-28 at his own expense, bring an action in the name of the State of Nevada

4-29 against the company or persons executing the bond, including an action

4-30 or proceeding to foreclose any lien that may exist upon the real property

4-31 of a person who has executed the bond.

4-32 Sec. 14. 1. In lieu of the insurance against liability required by the

4-33 regulations adopted pursuant to section 11 of this act, a taxicab motor

4-34 carrier that is subject to the provisions of section 11 of this act may

4-35 deposit with the department:

4-36 (a) Any security in the amount of $500,000; or

4-37 (b) An amount equal to 110 percent of the average annual costs of

4-38 claims incurred by the carrier for accidents involving motor vehicles

4-39 during the immediately preceding 3 years,

4-40 whichever is less, but in no event may the deposit be less than $250,000.

4-41 The security deposited may be in any form authorized by section 15 of

4-42 this act. The department shall not accept a deposit unless it is

5-1 accompanied by evidence that there are no unsatisfied judgments of any

5-2 kind against the depositor in the county in which the depositor resides.

5-3 2. A taxicab motor carrier depositing money with the department

5-4 pursuant to subsection 1 shall authorize payments from the deposit in the

5-5 amounts and under the same circumstances as would be required in a

5-6 contract of insurance against liability that is in compliance with the

5-7 regulations adopted pursuant to section 11 of this act.

5-8 3. Any security deposited must be used to satisfy any judgment

5-9 obtained against the depositor that is final and has not been paid within

5-10 30 days after the date of the judgment, unless otherwise ordered by the

5-11 court issuing the judgment. A depositor, within 24 hours after receiving

5-12 notice that the security has been used to satisfy a judgment obtained

5-13 against him, shall deposit with the department an amount that is

5-14 necessary to maintain with the department the amount required by

5-15 subsection 1. The failure to maintain the full amount required by

5-16 subsection 1 is a ground for the cancellation of the depositor’s certificate

5-17 of self-insurance.

5-18 4. Any money collected by the department pursuant to subsection 1

5-19 must be deposited with the state treasurer for credit to a separate account

5-20 in the state general fund and used for payments authorized pursuant to

5-21 subsection 2 or to refund money paid by a taxicab motor carrier that is

5-22 no longer participating in a program of self-insurance.

5-23 Sec. 15. For the purposes of section 14 of this act, the department

5-24 may accept from a taxicab motor carrier any one of the following forms

5-25 of security, or any combination thereof:

5-26 1. A time certificate of deposit with any bank licensed or chartered by

5-27 this state or the Federal Government, made payable to the carrier and the

5-28 department.

5-29 2. Bonds and securities issued or guaranteed by the Federal

5-30 Government and made payable to the carrier and the department.

5-31 3. A deposit in an amount required by section 14 of this act made

5-32 with the state treasurer, with the department appointed as trustee of the

5-33 deposit.

5-34 4. A surety bond submitted on behalf of the carrier by any surety

5-35 company authorized to transact business in this state.

5-36 5. Any other form of security, including the net worth of the carrier,

5-37 that is acceptable to the department.

5-38 Sec. 16. 1. Any security deposited pursuant to section 13 or 14 of

5-39 this act must be maintained for as long as the depositor holds a

5-40 certificate of self-insurance or until all claims against the depositor

5-41 which remain outstanding have reached final judgment and are paid,

5-42 whichever is later.

6-1 2. At the time of relinquishing his certificate of self-insurance, a

6-2 taxicab motor carrier shall submit to the department a properly executed

6-3 affidavit indicating all claims against the operator which are

6-4 outstanding. The affidavit must contain the name of each claimant and

6-5 the amount of each claim.

6-6 Sec. 17. Sections 2 to 17, inclusive, of this act are not to be

6-7 construed as a motor vehicle registration law and any license fees that

6-8 may be imposed by a governing body pursuant thereto are in addition to

6-9 the fees for motor vehicle registration required under the laws of this

6-10 state.

6-11 Sec. 18. NRS 706.151 is hereby amended to read as follows:

6-12 706.151 1. It is hereby declared to be the purpose and policy of the

6-13 legislature in enacting this chapter:

6-14 (a) Except to the extent otherwise provided in sections 2 to 17,

6-15 inclusive, of this act, and NRS 706.881 to 706.885, inclusive, to confer

6-16 upon the authority the power and to make it the duty of the authority to

6-17 regulate fully regulated carriers, operators of tow cars and brokers of

6-18 regulated services to the extent provided in this chapter and to confer upon

6-19 the department the power to license all motor carriers and to make it the

6-20 duty of the department to enforce the provisions of this chapter and the

6-21 regulations adopted by the authority pursuant to it, to relieve the undue

6-22 burdens on the highways arising by reason of the use of the highways by

6-23 vehicles in a gainful occupation thereon.

6-24 (b) To provide for reasonable compensation for the use of the highways

6-25 in gainful occupations, and enable the State of Nevada, by using license

6-26 fees, to provide for the proper construction, maintenance and repair thereof,

6-27 and thereby protect the safety and welfare of the traveling and shipping

6-28 public in their use of the highways.

6-29 (c) To provide for fair and impartial regulation, to promote safe,

6-30 adequate, economical and efficient service and to foster sound economic

6-31 conditions in motor transportation.

6-32 (d) To encourage the establishment and maintenance of reasonable

6-33 charges for:

6-34 (1) Intrastate transportation by fully regulated carriers; and

6-35 (2) Towing services performed without the prior consent of the owner

6-36 of the vehicle or the person authorized by the owner to operate the
6-37 vehicle,

6-38 without unjust discriminations against or undue preferences or advantages

6-39 being given to any motor carrier or applicant for a certificate of public

6-40 convenience and necessity.

6-41 (e) To discourage any practices which would tend to increase or create

6-42 competition that may be detrimental to the traveling and shipping public or

6-43 the motor carrier business within this state.

7-1 2. All of the provisions of this chapter must be administered and

7-2 enforced with a view to carrying out the declaration of policy contained in

7-3 this section.

7-4 Sec. 19. NRS 268.097 is hereby amended to read as follows:

7-5 268.097 1. Except as otherwise provided in subsections 2 and 3, and

7-6 sections 2 to 17, inclusive, of this act, notwithstanding the provisions of

7-7 any local, special or general law, after July 1, 1963, the governing body of

7-8 any incorporated city in this state, whether incorporated by general or

7-9 special act, or otherwise, may not supervise or regulate any taxicab motor

7-10 carrier as defined in NRS 706.126 which is under the supervision and

7-11 regulation of the transportation services authority pursuant to law.

7-12 2. The governing body of any incorporated city in this state, whether

7-13 incorporated by general or special act, or otherwise, may fix, impose and

7-14 collect a license tax on and from a taxicab motor carrier for revenue

7-15 purposes only.

7-16 3. The governing body of any incorporated city in any county in which

7-17 the provisions of NRS 706.8811 to 706.885, inclusive, and of sections 2 to

7-18 17, inclusive, of this act, do not apply, whether incorporated by general or

7-19 special act, or otherwise, may regulate by ordinance the qualifications

7-20 required of employees or lessees of a taxicab motor carrier in a manner

7-21 consistent with the regulations adopted by the transportation services

7-22 authority.

7-23 Sec. 20. NRS 373.117 is hereby amended to read as follows:

7-24 373.117 1. A regional transportation commission may establish or

7-25 operate a public transit system consisting of regular routes and fixed

7-26 schedules to serve the public.

7-27 2. A regional transportation commission may lease vehicles to or from

7-28 or enter into other contracts with a private operator for the provision of

7-29 such a system.

7-30 3. In a county whose population is less than 400,000, such a system

7-31 may also provide service which includes:

7-32 (a) Minor deviations from regular routes and fixed schedules on a

7-33 recurring basis to serve the public transportation needs of passengers. The

7-34 deviations must not exceed one-half mile from the regular routes.

7-35 (b) The transporting of persons upon request without regard to regular

7-36 routes or fixed schedules . [, if the service is] The service must be provided

7-37 by a common motor carrier . [which has] If the common motor carrier is

7-38 subject to the jurisdiction of the transportation services authority, the

7-39 common motor carrier must have a certificate of public convenience and

7-40 necessity issued by the transportation services authority pursuant to NRS

7-41 706.386 to 706.411, inclusive, and the service by the common motor

7-42 carrier is subject to the rules and regulations adopted by the transportation

7-43 services authority for a fully regulated carrier.

8-1 4. Notwithstanding the provisions of chapter 332 of NRS or NRS

8-2 625.530, a regional transportation commission may utilize a turnkey

8-3 procurement process to select a person to design, build, operate and

8-4 maintain, or any combination thereof, a fixed guideway system, including,

8-5 without limitation, any minimum operable segment thereof. The

8-6 commission shall determine whether to utilize turnkey procurement for a

8-7 fixed guideway project before the completion of the preliminary

8-8 engineering phase of the project. In making that determination, the

8-9 commission shall evaluate whether turnkey procurement is the most cost

8-10 effective method of constructing the project on schedule and in satisfaction

8-11 of its transportation objectives.

8-12 5. Notwithstanding the provisions of chapter 332 of NRS, a regional

8-13 transportation commission may utilize a competitive negotiation

8-14 procurement process to procure rolling stock for a fixed guideway project.

8-15 The award of a contract under such a process must be made to the person

8-16 whose proposal is determined to be the most advantageous to the

8-17 commission, based on price and other factors specified in the procurement

8-18 documents.

8-19 6. If a commission develops a fixed guideway project, the department

8-20 of transportation is hereby designated to serve as the oversight agency to

8-21 ensure compliance with the federal safety regulations for rail fixed

8-22 guideway systems set forth in 49 C.F.R. Part 659.

8-23 7. As used in this section:

8-24 (a) "Fully regulated carrier" means a common carrier or contract carrier

8-25 of passengers or household goods who is required to obtain from the

8-26 transportation services authority a certificate of public convenience and

8-27 necessity or a contract carrier’s permit and whose rates, routes and services

8-28 are subject to regulation by the transportation services authority.

8-29 (b) "Minimum operable segment" means the shortest portion of a fixed

8-30 guideway system that is technically capable of providing viable public

8-31 transportation between two end points.

8-32 (c) "Public transit system" means a system employing motor buses, rails

8-33 or any other means of conveyance, by whatever type of power, operated for

8-34 public use in the conveyance of persons.

8-35 (d) "Turnkey procurement" means a competitive procurement process

8-36 by which a person is selected by a regional transportation commission,

8-37 based on evaluation criteria established by the commission, to design,

8-38 build, operate and maintain, or any combination thereof, a fixed guideway

8-39 system, or a portion thereof, in accordance with performance criteria and

8-40 technical specifications established by the commission.

8-41 Sec. 21. This act becomes effective on July 1, 1999.

 

~