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A10222 Summary:

BILL NOA10222
 
SAME ASNo Same As
 
SPONSORRules (Cahill)
 
COSPNSR
 
MLTSPNSR
 
Amd §370, V & T L
 
Requires commuter vans to maintain safety features, including but not limited to, a fully operational brake system, appropriate seat belts, security and back-up cameras, silent alarm systems, and personal or vehicle tracking devices such as global positioning systems (GPS).
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A10222 Actions:

BILL NOA10222
 
05/06/2022referred to insurance
05/11/2022reported referred to rules
05/17/2022reported
05/17/2022rules report cal.277
05/17/2022ordered to third reading rules cal.277
05/31/2022passed assembly
05/31/2022delivered to senate
05/31/2022REFERRED TO TRANSPORTATION
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A10222 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10222
 
SPONSOR: Rules (Cahill)
  TITLE OF BILL: An act to amend the vehicle and traffic law, in relation to requiring certain safety features for commuter vans   PURPOSE OR GENERAL IDEA OF BILL: This bill requires commuter vans to maintain a bond or insurance policy with a combined single limit of at last $1.5 million for bodily injury or death to one or more persons, and because of injury to or to destruction of property in any one accident, as well as requires vans to maintain adequate safety features.   SUMMARY OF PROVISIONS: Section One of the bill amends the Vehicle and Traffic Law to require commuter vans that are engaged in the business of carrying or transport- ing passengers for hire, having a seating capacity of not less than eight passengers to maintain a bond or insurance policy with a combined single limit of at last $1.5 million for bodily injury or death to one or more persons, and because of injury to or to destruction of property in any one accident. This section also requires these commuter vans to maintain safety features including but not limited to: a fully opera- tional brake system, appropriate seat belts, security and back-up cameras, silent alarm systems, and personal or vehicle tracking devices. Section Two of the bill provides for an immediate effective date.   JUSTIFICATION: Section 370 of the Vehicle and Traffic Law requires minimum liability coverages for for-hire vehicles based on carrying capacity. Part III of Chapter 59 of the Laws of 2019 increased the liability coverage required for for-hire vehicles with a capacity of eight or more persons to a minimum of $1.5 million. This initial increase in required minimum coverage put particular types of for-hire vehicle businesses in an untenable position, specifically commuter vans. These "dollar" vans transport anywhere from eight passengers to twenty-two passengers in some cases and are considered high risk due to the vehicle's classifica- tion and the lack of certain safety precautions. In 2019, most commuter vans were already paying actuarially-inappropriate insurance rates for their minimum coverage due to inappropriate and fraudulent actions by their primary insurer. Thus, the initial increase of the minimum insur- ance requirements put an extreme fiscal burden on the commuter van busi- nesses and forced many to cease operations. The Covid-19 pandemic further exacerbated the issues faced by these fans and decreased utili- zation, though these vehicles offer beneficial transportation options as they operate outside of MTA lines and charge passengers affordable transport fees. The Legislature enacted several measures in an attempt to lessen the risk for writing coverage for these vehicles, as well as to encourage insurers in the market to provide adequate and affordable coverage for these businesses. In the SFY 2022-23 Budget, the Legislature enacted the Commuter Van Stabilization Program to provide subsidies for commuter van businesses to assist in covering insurance premium costs, as well as fiscal assistance and safety upgrades to modernize commuter vehicle technology and lessen the risks associated with these vans, making them safer to underwrite, operate, and use as transportation. This legislation would require all commuter vans to maintain the minimum insurance requirements that similarly classified vehicles must maintain. Commuter vans would also be required to make safety updates, including maintenance of a fully operational brake and seat belt system, installa- tion and maintenance of alarm systems and cameras, and utilization of personal and vehicle tracking devices. These safety requirements are consistent with those of TNC vehicles in New York City that provide for-hire passenger transportation in a similar fashion. The Legislature had carved-out commuter vans from the original $1.5 million combined single insurance limit in SFY 2021-22 to provide some relief to the van businesses and provide for adequate time to explore legislative and regulatory options to update and potentially expand the existing base of commuter van businesses in the state. Given the high risk nature of these vehicles, specifically their large seating capacity and the costs of business compared to the cost of insurance premiums, it is essential that passengers and drivers are appropriately protected in the event of loss or damage as a result of a commuter van accident. The current $500,000 limit does not provide adequate coverage and protections for these businesses, potentially jeopardizing the health and safety of passengers and drivers and discouraging use of this type of transporta- tion. This legislation would address these concerns by requiring all commuter vans to maintain $1.5 million in minimum liability coverage and make important safety and technological upgrades to such vehicles to better protect passengers and drivers.   PRIOR LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None noted.   EFFECTIVE DATE: Immediately.
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A10222 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10222
 
                   IN ASSEMBLY
 
                                       May 6, 2022
                                       ___________
 
        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Cahill) --
          read once and referred to the Committee on Insurance
 
        AN ACT to amend the vehicle and traffic law, in  relation  to  requiring
          certain safety features for commuter vans
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The second  undesignated  paragraph  of  subdivision  1  of
     2  section  370  of the vehicle and traffic law, as amended by section 1 of
     3  part ZZ of chapter 59 of the  laws  of  2021,  is  amended  to  read  as
     4  follows:
     5    For damages for and incident to death or injuries to persons and inju-
     6  ry to or destruction of property: For each motorcycle and for each motor
     7  vehicle  engaged  in the business of carrying or transporting passengers
     8  for hire, having a seating capacity of not more than seven passengers, a
     9  bond or insurance policy with a minimum liability of  twenty-five  thou-
    10  sand dollars and a maximum liability of fifty thousand dollars for bodi-
    11  ly injury, and a minimum liability of fifty thousand dollars and a maxi-
    12  mum  liability  of  one hundred thousand dollars for death and a minimum
    13  liability of ten thousand dollars for injury to or destruction of  prop-
    14  erty;  for  each  motor  vehicle  engaged in the business of carrying or
    15  transporting passengers for hire, having a seating capacity of not  less
    16  than eight passengers, a bond or insurance policy with a combined single
    17  limit  of  at least one million five hundred thousand dollars for bodily
    18  injury or death to one or more persons, and  because  of  injury  to  or
    19  destruction  of property in any one accident; provided, further that for
    20  commuter vans that are engaged in the business of carrying or transport-
    21  ing passengers for hire, having a seating  capacity  of  not  less  than
    22  eight  passengers,  a  bond  or  insurance policy with a combined single
    23  limit of at least one million five hundred thousand dollars  for  bodily
    24  injury  or  death  to  one  or more persons, and because of injury to or
    25  destruction of property in any one accident.   Such commuter  van  shall
    26  maintain  safety  features, including but not limited to, a fully opera-
    27  tional brake  system,  appropriate  seat  belts,  security  and  back-up
    28  cameras,  silent alarm systems, and personal or vehicle tracking devices
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15732-01-2

        A. 10222                            2
 
     1  such as global positioning systems (GPS). For the purposes of this para-
     2  graph, the term "commuter van" shall have the same meaning as such  term
     3  is  defined  in section 19-502 of the administrative code of the city of
     4  New York.
     5    § 2. This act shall take effect immediately.
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