NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3843
SPONSOR: McDonough TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to the indem-
nity bonds and insurance policies for ambulettes
PURPOSE:
To provide insurance premium relief for ambulettes
SUMMARY OF PROVISIONS:
Section 1 of the bill amends the second undesignated paragraph of
subdivision 1 of section 370 of the vehicle and traffic law, as amended
by Chapter 408 of the laws of 2019 to read that, except that for an
ambulette, as defined in 17 NYCRR Part 72.0.8, with a seating capacity
of not less than eight nor more than twelve passengers, a bond or insur-
ance policy with a minimum liability of twenty-five thousand dollars and
a maximum liability of eighty thousand dollars, per passenger, for bodi-
ly. injury, and a minimum liability of fifty thousand dollars and a
maximum liability of one hundred fifty thousand dollars, per passenger,
for death.
Section 2 of the bill provides the effective date.
JUSTIFICATION:
Recent law requires combined single limit $1.5'million auto liability
insurance for for-hire vehicles with a passenger capacity of eight or
more persons. While typically vehicles with eight or more passengers
are, limousines, ambulette services are also impacted by this law. The
ambulette industry, already strained 'financially, provides essential
transportation services for those with medical conditions and mental
disabilities.
This bill would exempt the ambulette services from the new law and
restore previous liability insurance requirements for ambulettes, there-
by providing much needed financial relief to the ambulette industry.
LEGISLATIVE HISTORY:
A6453 of 2021/2022 - Held for consideration in Transportation
A10332 of 2020 - Referred to Transportation
FISCAL IMPLICATIONS:
None to the State
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
3843
2023-2024 Regular Sessions
IN ASSEMBLY
February 8, 2023
___________
Introduced by M. of A. McDONOUGH -- read once and referred to the
Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to the indem-
nity bonds and insurance policies for ambulettes
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 five hundred thousand dollars for bodily injury or
24 death to one or more persons, and because of injury to or destruction of
25 property in any one accident. For the purposes of this paragraph, the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07306-01-3
A. 3843 2
1 term "commuter van" shall have the same meaning as such term is defined
2 in section 19-502 of the administrative code of the city of New York;
3 except that for an ambulette, as defined in 17 NYCRR Part 720.8, with a
4 seating capacity of not less than eight nor more than twelve passengers,
5 a bond or insurance policy with a minimum liability of twenty-five thou-
6 sand dollars and a maximum liability of eighty thousand dollars, per
7 passenger, for bodily injury, and a minimum liability of fifty thousand
8 dollars and a maximum liability of one hundred fifty thousand dollars,
9 per passenger, for death.
10 § 2. This act shall take effect immediately.
