The Public Utilities Article, Annotated Code of Maryland, provides that the Commission shall have the power to make such reasonable regulations as it deems necessary to carry out the provisions of this law and any other law relating to the Commission. These regulations apply Statewide to all carriers performing intrastate operations for hire. The formulation of these regulations does not preclude the Commission from altering or amending them in whole or in part, or from requiring any other additional service, equipment, facility, or standard, either upon complaint or upon its own motion, or upon the application of a carrier. Furthermore, these standards do not relieve any carrier from any of its duties under any orders of the Public Service Commission which are not in conflict with them, or under the laws of this State. In this chapter, unless the language or context indicates that a different meaning is intended, the following terms shall have the meanings indicated. Terms Defined. “Carrier” means the holder of a permit. “Carriers of flammables” means any motor vehicle: Common carrier which transports in bulk, in tank vehicles, any liquid which will give off flammable vapors at or below 300 degrees F, or any liquid which, when mixed with wood, sawdust, rags or similar organic substances, will cause spontaneous heating and ignition; and Contract carrier as further defined. “Commission” means the Public Service Commission of Maryland. “Contract carriers of flammables” means and includes any person which, under individual written contracts or agreements of a term or duration of not less than 90 days, within a limited number of persons, engages in the transportation, as a carrier of flammables, in bulk, for compensation within the State. “Operator” means a person engaged in driving a tank vehicle for which a permit has been issued. “Owner” means the individual, partnership, or company to whom a permit has been issued. “Permit” means a permit issued by the Public Service Commission. “Roads” means public streets or highways within the State. “State” means the State of Maryland. “Tank vehicles” includes all vehicles used in the transportation of inflammable or combustible liquids, in bulk, for compensation, upon the public streets or highways within the State. Tagliabue's Open Cup Tester is recognized as the measuring method in determining inflammable or combustible liquids which give off inflammable vapors at or below 300 degrees F. A tank vehicle may not be used in the public intrastate transportation of flammables for hire over the improved streets or roads of this State, or any political subdivision of it, without a permit from the Commission to the owner. A permit (certificate) shall be required for a motor carrier when engaged in the carriage of flammables in bulk, within the scope of the definitions as provided by law. Permits shall be of two classes: Common carrier certificate (permits); and Contract carrier certificates (permits). Permits as contract carrier and common carrier of flammables may not be held by the same person. No person, or any person controlling, controlled by, or under common control with that person, may hold a permit as a common carrier authorizing operation for the transportation of flammables by motor vehicle within the State, if that person, or any controlling person, controlled person, or person under common control, holds a permit as a contract carrier authorizing operation for the transportation of flammables by motor vehicle within the same territory, in the State. No person, or any person controlling, controlled by, or under common control with that person, may hold a permit as a contract carrier authorizing operation for the transportation of flammables by motor vehicle within the State, if that person, or any controlling person, controlled person, or person under common control, holds a permit as a common carrier authorizing operation for the transportation of flammables by motor vehicle within the same territory, in the State. Nothing in these regulations shall be construed as invalidating any action lawfully taken or rights lawfully acquired by any person before June 1, 1959. Every carrier of inflammable or combustible liquids, in bulk, in tank vehicles, and for compensation, as defined in these regulations, shall file with the Commission a tariff schedule of its rates and charges. Copies of the schedules shall be plainly printed, shall be open to public inspection, and shall be posted in such manner as to be readily accessible to and conveniently inspected by the public, as may be ordered by the Commission. The schedules shall in all other respects be subject to the applicable tariff provisions of the law. Application for Permits. All original applications for permits shall be made upon forms provided by the Commission, and shall be signed by the applicant. At the time of making the application, the applicant shall be given a copy of these regulations and shall certify in his application that he agrees to comply with them. Form of Permit. The permits shall be in such form as from time to time may be prescribed by the Commission, but in all instances shall contain the Commission's permit number, the name and address of the person or persons, association, or corporation to whom or to which issued. The grantee or grantees of a permit shall notify the Commission promptly of any change of address occurring after issuance of the permit. Duration of Permits. Permits issued to authorized carriers on or after September 1st in any year shall remain in effect until the expiration date shown on them, unless suspended or revoked or otherwise cancelled. Applications for renewal of permits shall be made not less than 15 days before the expiration date shown on the permit to be renewed. Revocation or Suspension of Permit. The violation of any of these regulations shall be sufficient cause for the revocation or suspension of a permit. If the grantee or grantees of a permit fail to keep the required insurance or bond in force, the Commission will summarily revoke the permits. The Commission may, in its discretion, suspend for a period not to exceed 6 months the permit of any carrier who is convicted of two or more violations of the conditions of the permit within a period of 1 year. Upon any conviction of three or more violations within a period of 1 year, the Commission may revoke the permit of the carrier and may not issue or reissue a permit to the carrier before the expiration of 1 year from the date of the revocation. Except as otherwise stated in these regulations, a permit may not be revoked or suspended until after an investigation and hearing held upon not less than 5 days' notice to the grantee or grantees of the permit. Notice of the hearing shall be in writing and shall be served upon the grantee, or upon one of the grantees if there is more than one, or upon the proper agent for service if the grantee is a corporation. The notice may be sent by mail to the address given in the application for permit, or to the changed address subsequently filed with the Commission. This mailing shall be as effective and binding as personal service. Whenever notice is given by mail, as provided in these regulations, the date of mailing shall be considered as the time when notice is served. Identification of Vehicles. Every carrier operating one or more tank vehicles under permit of this Commission shall have its name or identification appear conspicuously upon the power unit of each vehicle. The permit number assigned by the Commission shall also appear prominently displayed upon each power unit. Tank vehicles transporting inflammable or combustible liquids having a flash point of 80 degrees or less shall be conspicuously or legibly marked FLAMMABLE on each side and the rear in letters at least 3 inches high on a background of sharply contrasting color. Physical and Mechanical Condition. All tank vehicles operating under the Commission's permit shall at all times be kept in proper physical and mechanical condition to render safe, adequate, and convenient service. Failure to keep a tank vehicle in proper condition shall be sufficient ground for the revocation or suspension of the permit. The regulations of the Interstate Commerce Commission, insofar as they relate to tank vehicles transporting flammable commodities as described in the Public Utilities Article, Annotated Code of Maryland, and to the extent that they are not contrary to or inconsistent with these regulations, shall apply to all carriers receiving permits from the Commission. Inspection. Representatives of the Commission shall have the right at any time, after first identifying themselves, to enter into or upon any tank vehicle for the purpose of inspection or ascertaining whether or not any of these regulations have been violated. Refusal to comply with these regulations shall be sufficient ground for the revocation or suspension of the permit. Qualification of Operation. A tank vehicle may not be driven by a person who: Is addicted to the use of narcotics or intoxicating liquor; Is not of good moral character; Is mentally deficient or physically defective to such an extent as to impair his ability to properly, conveniently, and efficiently operate the vehicle; Is not experienced in operating motor vehicles and fully competent to operate a tank vehicle; or Has not obtained an operator's or chauffeur's license, or both, as required by Maryland Law for drivers of motor vehicles. Reckless or Unsafe Operation. An operator of a tank vehicle may not operate it recklessly, in an unsafe manner, or in disregard of the public general or local laws or municipal ordinances governing the operation of motor vehicles. Requirements. A motor vehicle transporting flammable or combustible liquids in bulk for which a permit is necessary may not be operated unless the carrier maintains a liability policy or a bond for that motor vehicle. Liability Insurance. If a carrier elects liability insurance coverage, the minimum insurance required for each tank vehicle is $1,000,000 combined single limit for each accident. The minimum cargo liability insurance required for freight transported is: $5,000 for loss of or damage to property carried on any one motor vehicle; and $10,000 for the aggregate loss of or damage to property occurring at any one time. Bond Instead of Insurance. If a carrier elects a bond instead of insurance, the amount of the bond is: Determined by the number of tank vehicles covered by and described in the bond; and As set out in the following table: The bonding company shall guarantee the prompt payment by the carrier of indemnities for personal injuries or for property damage resulting from an accident due to the negligence of the carrier, to the extent of the damages sustained, but not less than $1,000,000 combined single limit for each accident. The penalty of the bond may not be exhausted by successive recoveries but shall remain unimpaired until the bond is cancelled. If the bond is cancelled or if the carrier's operation is terminated or interrupted at any time, the bonding company shall proceed to settle all then outstanding indemnity claims, as required under §C(2) of this regulation, except that the aggregate amount of the settlements may not exceed the penal sum of the bond. Compliance. A carrier shall file with the Commission: An original certificate of insurance signed by an authorized agent of an insurance company, indicating that the policy has been issued, specifying the terms of the policy and the name of the insured; or A certified copy of the bond instead of the insurance showing similar information. The insurance company and the insurance broker shall be licensed to do business in Maryland as required by Insurance Article, Annotated Code of Maryland. The Public Service Commission is to be shown as a certificate holder on the liability insurance policy. The certificate of insurance shall list (either typed on the face of the certificate or on the insurance company letterhead attached to the certificate) the year, make, and serial number of each motor vehicle that is covered by the insurance policy. Notice. A liability insurance policy or bond instead of insurance under this regulation shall contain a clause requiring at least 10 days notice to the Commission and the insured before a policy or bond may be cancelled. The holder of a permit shall give the Commission at least 10 days written notice of any proposed change affecting the liability insurance policy or bond instead of insurance required by this regulation. The Commission adopts, effective January 1, 1963, the Uniform System of Accounts published by the Interstate Commerce Commission applicable to common and contract motor carriers of property as its uniform system of accounts for carriers of flammables. As may be necessary, the Commission will supplement these regulations so that proper accounting records will be maintained to provide the necessary accounts and data to calculate the operating ratio for the intrastate transportation of flammables. The Commission will, beginning with the calendar year 1963, provide an annual report form on which carriers of flammables shall submit appropriate intrastate operating statements and schedules. Violations. An owner of a motor vehicle who neglectfully and with prior knowledge causes or permits the violation of Public Utilities Article, Annotated Code of Maryland, or this chapter, may be guilty of a violation and subject to a civil penalty under this regulation as fully as though the owner was operating the motor vehicle personally at the time. In the case of a corporation, an officer, agent, or employee who violates, procures, aids, or abets any violation of Public Utilities Article, Annotated Code of Maryland, or this chapter, may be determined to be individually guilty of a violation. Civil Penalty Violations. The following violations are subject to a civil penalty under Public Utilities Article, §13-202, Annotated Code of Maryland: Operating a motor vehicle after a permit is suspended or revoked; Failure to present a motor vehicle for inspection or file with the Commission an inspection certificate from an authorized inspection station; Failure to carry appropriate insurance under Regulation .11 of this chapter; Operating a motor vehicle which has been placed out of service; Operating a motor vehicle without a valid state driver's license; Operating a motor vehicle while under the influence of alcohol or drugs, as defined under State law; Violation of State or local law relating to motor vehicle traffic control, the violation of which directly contributed to the cause of a fatality; Reckless driving while operating a motor vehicle, as defined under State or local law; Leaving the scene of a motor vehicle accident while operating a motor vehicle; Operating a motor vehicle which has had recurring violations of the equipment and safety standards under Transportation Article, Title 22, Annotated Code of Maryland, and COMAR Title 11, committed with actual knowledge of and a conscious failure to avert the violation; Use of a motor vehicle subject to the provisions of this chapter before obtaining approval of the Commission; Falsification of a certification statement that a defect in a motor vehicle has been repaired; Operating a motor vehicle which has been placed out of service for the same violation more than two times in a 1-year period or over 50 percent of the time inspected in a 1-year period, whichever is less; or Failure of the owner or an operator of a motor vehicle to permit inspection of a vehicle or records relating to a permit. Notice. Notice of a violation and imposition of a civil penalty under §B of this regulation shall be in writing and mailed by first class mail, postage prepaid, to the last known address of the owner or, in the case of a corporation, the authorized representative. The notice given under §C(1) of this regulation shall: Include the time, date, and location of a hearing on the violation; and Indicate that failure to respond to the notice may result in the suspension or revocation of authority to operate as a common carrier. The mailing by first class mail of a notice is considered to be effective and binding as an actual notice. Public Utilities Article, §§2-113, 2-121, and 6-202—6-207, Annotated Code of Maryland Effective date: August 5, 1954 (Order No. 50880) Regulations .01—.11 amended effective March 1, 1963 (Order No. 55089) Regulation .11 amended effective April 15, 1991 (18:7 Md. R. 775); December 9, 1991 (18:24 Md. R. 2646) Regulation .12 adopted effective May 24, 1962 (Order No. 54910) Regulation .13 adopted effective January 20, 1992 (19:1 Md. R. 35) Regulation .13B amended and C adopted effective December 19, 1994 (21:25 Md. R. 2110)