Factsheet 18 – April 2008

Volunteer drivers and exempt passenger services

This factsheet summarises a complex area of law. If you have any questions or concerns, please contact your nearest NZ Transport Agency (NZTA) office.

• Legislation for transporting passengers
• The owner or operator
• Definition of 'hire or reward'
• Exempt passenger services
• The driver
• The vehicle
• Volunteers
• Where can I find out more?

Legislation for transporting passengers

The Land Transport Rule: Operator Licensing 2007 (the Operator Licensing Rule) covers situations where people are transported as part of a service offered by others (a passenger service).

The Operator Licensing Rule sets out the requirements for an operator of a transport service, including requirements relating to a vehicle used in that service and a person who drives the vehicle.

The Vehicle Standards Compliance Rule 2002 requires that vehicles used in a passenger service must pass a more comprehensive safety check. They undergo a certificate of fitness inspection rather than a warrant of fitness inspection.

The Passenger Service Vehicles Rule 1999 describes in detail what the requirements are for passenger service vehicles.

The Driver Licensing Rule 1999 requires drivers of motor vehicles operated in a passenger service to hold a passenger (P) endorsement on their driver licence.

The owner or operator

The Operator Licensing Rule applies to the person (individual, partnership or company) who 'carries on' a transport service.

If an employed driver is using a work vehicle in their employer's transport service, the employer needs a transport service licence.

If a driver is a self-employed owner-driver, the driver needs to hold a transport service licence.

A key factor in determining if a passenger service licence is required is the number of passengers the vehicle can carry. If the vehicle seats more than 12 people (including the driver), the owner or operator must have a passenger service licence.

If the vehicle has seats for 12 or fewer people, then the owner or operator only needs a passenger service licence if the passengers are carried 'for hire or reward'.

Definition of 'hire or reward'

'Hire or reward' has been interpreted through case law (what courts have decided when they've been asked to determine if someone has broken the law or not). The case law interpretation is very broad.

Amendments made in 2005 to the Land Transport Act 1998 incorporated case-law interpretations to the revised definition of passenger service, which now includes:

• when passengers pay a specific charge that is expected as a condition of carriage, including part payments to cover fuel and donations
• when the person or organisation providing the service receives specific funding to do so (eg a Ministry of Health grant to take older people on outings)
• when passengers are carried as an integral part of, or reasonably necessary to provide, another service or activity (other than a transport service) for which payment is made.

Read on for information about exemptions.

Exempt passenger services

The Operator Licensing Rule specifies the passenger services that are exempt from holding a passenger service licence.

Passenger services operated by or under the control of a district health board, local authority, an incorporated charitable organisation, or an incorporated organisation registered under the Charities Act 2005 where:

a) the vehicles used are designed or adapted to carry 12 or fewer persons (including the driver); and

b) the vehicle used is provided by the organisation or the driver; and

c) the driver is either a volunteer or a staff member of the organisation whose primary responsibility is not driving; and

d) the only payments made by the organisation to a driver who provides the vehicle is for reimbursing the organisation or the driver for the running cost of the vehicle and does not include payment for the driver’s service; and

e) the only payment made by the passenger is for reimbursing the organisation or the driver for the running cost of the vehicle, and does not include payment for the driver’s service.

Drivers of vehicles used in an exempt passenger service don’t require a P endorsement and vehicles used only require a warrant of fitness (not a certificate of fitness).

Other exempt passenger services include:

• car pooling under a cost-sharing arrangement between occupants of a vehicle designed or adapted to carry 12 or fewer persons (including the driver) – cost-sharing arrangement includes fuel costs and wear and tear of a vehicle
• passenger service provided by a person providing a home or community support service, where:
  • the vehicle used is designed or adapted to carry 12 or fewer persons (including the driver), and
  • transport is provided to clients as an incidental part of the service, and
  • a fee or fare is not required of the client for the provision of transport.
• the transporting of school children by parents or caregivers in a vehicle designed or adapted to carry 12 or fewer persons (including the driver) in return for a Ministry of Education private transport allowance
• the transporting of pupils and their escorts to or from any activity of a school, kindergarten, play-centre or other institution providing pre-school education, where:
  • the vehicles used are designed or adapted to carry 12 or fewer persons (including the driver), and
  • the vehicle used is provided by the institution or the driver, and
  • the driver is a staff member of the institution, or a person approved by the institution, or a parent or caregiver of one of the children being carried, and
  • the only payment made by the institution to a driver who provides the vehicle is for reimbursing that person for the cost of the running the vehicle, and does not include payment for the driver’s service
• passenger service provided by an organisation offering liquor, meals or refreshments for consumption on licensed premises, where a fee or fare is not required of its passengers.

Section 12 of the Operator Licensing Rule contains the full list of exempt passenger services.

The driver

Usually, anyone (not exempted above) who drives passengers who pay a specific charge is required to have a P endorsement on their driver licence.

The Driver Licensing Rule exempts certain drivers from holding a P endorsement in some situations, including: volunteer drivers who drive the motor vehicle to assist an incorporated charitable organisation or a hospital, regardless of the size of the vehicle used. However, if the organisation uses vehicles with more than 12 seats, the organisation does need a passenger service licence. Drivers may need to hold a Class 2 driver licence and to comply with driving hours and logbooks requirements, depending on the size of the vehicle being driven.

The vehicle

Vehicles used under a passenger service licence have to meet higher safety requirements than other vehicles. They must:

• undergo six-monthly certificate of fitness, rather than warrant of fitness, inspections, and be inspected by an approved certifier to ensure they meet all the applicable requirements in the Passenger Service Vehicles Rule , and
• be recorded (certified) as a passenger service vehicle.

Volunteers

If you are a volunteer driver of a passenger service that is not an exempt service, you are required to have a P endorsement. If you don't, it could matter if you have a crash – the insurance company might decline your claim. You could also be held criminally liable if you didn't have the required passenger service licence or endorsement.

If you use your own vehicle for volunteer work (whether you carry passengers or not), it would be wise to check your insurance policy carefully.

Voluntary organisations whose activities involve providing transport should ask: