It is enacted by the General Assembly as follows

SECTION 1. Section 31-22-10.1 of the General Laws in Chapter 31-22 entitled "Miscellaneous Rules" is hereby amended to read as follows:

31-22-10.1. Insurance for school buses. -- (a) Every owner of a school bus or other mass transit vehicle registered with the registry of motor vehicles of this state shall insure the vehicle against loss from liability imposed by law for damages arising out of the ownership, maintenance, or use of the vehicle in minimum amounts of one hundred thousand dollars ($100,000) per person and three hundred thousand dollars ($300,000) per accident. The registrar of motor vehicles shall not permit the vehicle to be registered until satisfactory proof of the existence of a policy of insurance providing the coverage required in conformity with the provisions of this section is furnished.

(b) {DEL No insurance company doing business within this state, nor any city or town within this state, shall require any owner of a school bus or other mass transit vehicle to insure the vehicle against loss from liability in an amount greater than one million dollars ($1,000,000). DEL}

(c) The term "mass transit vehicle" for the purposes of this section shall mean and include any motor vehicle with a capacity of ten (10) or more persons which is primarily for the transportation of minors.

(d) The provisions of this section shall not apply to any motor vehicle owned by the Rhode Island public transit authority pursuant to chapter 18 of title 39.

SECTION 2. This act shall take effect upon passage.