Montana Attorney General Opinion 15-326

Opinion No. 326 Motor Carriers-Licenses--Cancella- tion-Insurance. HELD: Where the holder of a ~L R. C. license allows his insurance to lapse. his license is automatically cancelled. and it is necessary, if he wishes to continuc in business, for him to file an application for a new license. ' September 1, 1933. A question has arisen in connection with the fifteen suits filed by the Board of Railroad, Commissioners in Silver Bow County on last Thursday, seeking to restrain mrious taxi and truck oper- ators from operating in violation' of Chapter 184, Laws of 1!)31, which you refer to this office for an opinion. In a majority of the suits filed the facts were that the defendants "had in t.he past secured appropriate certificates from the Board under Chapter 184, supra, had paid the fees called for by said act, and maintained insurance or bonds or other security conditioned for the protection of the public against the negligent operation of their motor "e- hicles, but had failed to maintain in force such insurance, bond or other se- curity. The position taken by the Board in these suits was that the failure to maintain in force the insurance, bond. or other security, resulted in a termina- tion of the operator's certificate and forfeited his right to operate as a motor carrier. After the filing of the suits abo\'e mentioned and the issuance of temporary restraining orders and the orders to show cause for injunction pendente lite, a number of the defend- ants were able to obtain insurance as required by the act and the rules of the BoaI'll. A number of these poliCies or binllers for policies are DOW on file" 222 OPINIONS OF THE ATTORNEY GENERAL with the Board and the question that arises is whether the compliance with the insurance provision of the act and the rules and regulations of the Board acts as a reinstatement of the opera- tor's rights under his original certifi- ("ate or whether failure to comply with the insurance pro,-isions worked such a termination of the operator's rights that in order to again operate as a motor carrier he must pursue the course of an original applicant and file an ap- plication under sections 8. 9 and 10, (whichever applicable) and pay a fil- ing fee and submit to a puhlic hearing upon the application as required by section 11. Rule 16 of the Board, adopted pur- suant to section 13, provides that unless ~elf insurance is authori7.ed, before a certificate shall issue, the applicant shall file with the board a liability and property damage insurance policy, bond, or other approved security, covering each motor vehicle used, or to be used by such applicant, in certain stated sums which vary according .to the pas- senger-carrying capacity of the motor vehicle used, or to be use.d. The rule concludes in this language: 'Failure to file and keep such insurance policy, se- curity, bond, or other approved security in full force and effect shall automat- ically terminate a certificate (see sec- tions 12 and 13 of the act).' The Board has in the past taken the position that once a certificate has been terminated by virtue of the provisions of sections 12 and 13 of the act and rule 16 of the Board, it can not be re- vitalized or reinstated by the mere sub- sequent compliance with the insurance provisions of the act, or in other words. that an operator who permits his cer- tificate to terminate by reason of the provision above mentioned is under the necessity of filing a new application, paying the filing fee prescrihed by law, and submitting his application to the protest of interested parties and to in- vestigation by the Board at public hear- ing as to the existence of public con- ,-enience and necessity for the appli- cant's service. In view of the contentions ra,ised by the parties in interest, you request our opinion whether or not the Board's in- terpretation is the proper and allow- able one. Sections 12 and 13 of Chapter 184, Laws of 1931, are as follows: "Section 12. Any right, privilege or certificate held, owned, or obtained by any motor carrier may be sold, as- signed, leased, transferred and inher- itcd qs other property only by the au- tllOrization of the boarel. The board may issue the certificate, as prayed for, or issue it for the partial exer- cise only of the prinlege sought, and may attach to the exercise of the rights granted by such certificate such terms and conditions as in its juqg, ment the public convenience and neces- sity may require. ·When a certificate has once been issued to a motor car- rier, as in this Act provided, such cer- tificate shall continue in force 111ltil terminated by the board for cause, as herein proyided, or until terminated hy the owner's failure to comply with Rection 13 of this Act." "Section 13. No certificate shall be i",med or remain in force unless the holder thereof shall comply with such rules and regulations of the board a~ it shall adopt governing the filing of honds, policies of insurance, or such sE'curity 01' agreement in such form and auequate amount and conditioned ns the board may require for: (a) the prOml}t payment of all compensation or fees due the State under the pro- \isions of this Act, and (b) the pay- ment of any final juugment which may be rendered against any such motor carrier arising out of the death of or injury to any passenger or injury to other pen:ons or property as a result of any negligent operation of the mo- tor vehicles or such motor carrier. with power in the board to permit self-in- suranc'e whenever, in its opinion, the financial ability of the motor carrier warrants." Rule 16 of the Board, in our opinion, is fully authorized by section 13 above and such rule, therefore, has the same force and effect as a prOvision of the statute. This rule provides that the cer- tificate shall automatically terminate unless the security required is kept in full force and effect. Section 12 of the Act provides that a certificate shall continue in force until terminated by thE' Board for cause or by the owner's failure to comply with Section 13 of the Act. The rule says "shall automa- tically terminate." The statute says OPINIONS OF THE ATTORNEY GENERAL 223 "terminate." Terminate means, "to put II n end or stop to; bring to a comple- tion: finish: cease to be: come to an ('nd." If the certificate issued to motor "('hicle operators has ended it is the s:ime as though it ne,er existed. When the board issues a certificate to an operator of a motor ,ebicle sec- tion 1:? recognizes the holder of such eertificat(> as ha"ing a property right thf'reill and it may be your position will he attacked on the ground that some precedent proceedings are necessary to f'stablish the fact that sucb propert~' right has heen forfeited, but with this possible exception, it is our opinion that your procf'edings as submitted are in harmony with tbe law, all rights and prh'i!eges under such certificates hay- ing terminated hy the failure of the pa I"ties 'holding such certificates to com- Illy with sections 12 and 13 and tbe Ron rd's rille No. 16.