AN ACT Relating to motor vehicles; amending RCW 81.80.060, 81.80.130, 81.80.150, 81.80.190, 81.80.260, 81.80.355, 81.80.371, 81.04.010, and 81.04.110; adding new sections to chapter 81.80 RCW; and repealing RCW 81.80.020 and 81.80.175.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 81.80 RCW to read as follows:

It is the intent of the legislature to adopt a new state policy toward motor freight carriers to the end that rates, charges, rules, and regulations affecting that industry reflect market place needs. That policy is intended to:

(1) Recognize and preserve the inherent advantages of each mode of transportation;

(2) Promote safe, adequate, economical, and efficient transportation;

(3) Encourage sound economic conditions in transportation, including sound economic conditions among carriers;

(4) Encourage the establishment and maintenance of reasonable rates for transportation, without unreasonable discrimination or unfair or destructive competitive practices;

(5) Promote cooperation among federal, state, and local agencies, and the officials of federal, state, and local agencies on transportation matters;

(6) Encourage fair wages and working conditions in the transportation industry; and

(7) Promote a safe, stable, and financially sound system of transportation of household goods for the protection of the interests of individual shippers.

In adopting this new policy, the legislature intends that transportation by Washington intrastate motor freight carriage shall be exempt when similar products and movements are exempt in interstate and foreign commerce, that individual carriers be permitted flexibility in assessing rates, fares, and charges for their services, and that the administrative regulation of motor freight carriers be reduced to enable the Washington utilities and transportation commission to concentrate more of its time and energies where the public need is much greater.

NEW SECTION. Sec. 2. A new section is added to chapter 81.80 RCW to read as follows:

It is the policy of the state of Washington to promote by impartial regulation competitive and efficient motor freight transportation services in order to:

(1) Meet the needs of shippers, receivers, and consumers;

(2) Allow a variety of quality and price options to meet changing market demands and the diverse requirements of the shipping and consuming public;

(3) Allow the most productive use of equipment and energy resources;

(4) Enable efficient and well-managed carriers to earn adequate profits, attract capital, and maintain fair wages and working conditions;

(5) Provide and maintain service to small communities and small shippers;

(6) Improve and maintain a sound, safe, and competitive privately owned motor carrier system;

(7) Promote greater participation by minorities in the motor carrier system; and

(8) Promote intermodal transportation.

NEW SECTION. Sec. 3. A new section is added to chapter 81.80 RCW to read as follows:

The provisions of this chapter, except those relating to license, insurance, and safety requirements, and except where specifically otherwise provided, shall not apply to the transportation by motor vehicle of the following exempt commodities:

(1) Ordinary livestock;

(2) Agricultural or horticultural commodities, other than manufactured products thereof;

(3) Commodities listed as exempt in the commodity list incorporated in ruling numbered 107, March 19, 1958, bureau of motor carriers, interstate commerce commission, other than frozen fruits, frozen berries, frozen vegetables, cocoa beans, coffee beans, tea, bananas, or hemp, or wool imported from a foreign country, wool tops and noils, or wool waste such as carded, spun, woven, or knitted;

(4) Cooked or uncooked fish, whether breaded or not, or frozen or fresh shellfish, or by-products thereof not intended for human consumption, other than fish or shellfish that have been treated for preserving, such as canned, smoked, pickled, spiced, corned, or kippered products, or cooked or uncooked beef, lamb, pork, or poultry;

(5) Livestock and poultry feed and agricultural seeds and plants, if such products, excluding products otherwise exempt under this subsection, are transported to a site of agricultural production or to a business enterprise engaged in the sale to agricultural producers of goods used in agricultural production;

(6) Property, including baggage, as part of a continuous movement which, prior or subsequent to such part of the continuous movement, has been or will be transported by an air carrier or, to the extent so agreed by the United States and approved by the civil aeronautics board or its successor agency, by a foreign air carrier;

(7) Property in lieu of transportation by aircraft because of adverse weather conditions or mechanical failure of the aircraft or other causes due to circumstances beyond the control of the carrier or shipper;

(8) Used pallets and used empty shipping containers, including intermodal cargo containers, and other used shipping devices, other than containers or devices used in the transportation of motor vehicles or parts of motor vehicles;

(9) Natural crushed, vesicular rock to be used for decorative purposes;

(10) Wood chips;

(11) Property being transported in a state park or in a national park or national monument;

(12) Property that is part of a through trailer or flatcar movement when a railroad provides for the through intermodal movement from origin to destination;

(13) Property being transported for a federal, state, or municipal agency, or division thereof, except for property transported by garbage and refuse collection companies as defined by RCW 81.77.010;

(14) Property without charge for a charitable purpose or for use in a public exhibition.

Sec. 4. Section 1, chapter 33, Laws of 1969 as amended by section 17, chapter 210, Laws of 1969 ex. sess. and RCW 81.80.060 are each amended to read as follows:

Every person who engages for compensation to perform a combination of services a substantial portion of which includes transportation of property of others, not exempted from regulation by RCW 81.80.040 or section 3 of this act, upon the public highways shall be subject to the jurisdiction of the commission as to such transportation and shall not engage upon the same without first having obtained a common carrier or contract carrier permit to do so. An example of such a combination of services shall include, but not be limited to, the delivery of household appliances for others where the delivering carrier also unpacks or uncrates the appliances and makes the initial installation thereof. Every person engaging in such a combination of services shall advise the commission what portion of the consideration is intended to cover the transportation service and if the agreement covering the combination of services is in writing, the rate and charge for such transportation shall be set forth therein. The rates or charges for the transportation services included in such combination of services shall be subject to control and regulation by the commission in the same manner that the rates of common and contract carriers are now controlled and regulated. Any person engaged in extracting and/or processing and, in connection therewith, hauling materials exclusively for the maintenance, construction or improvement of a public highway shall not be deemed to be performing a combination of services.

Sec. 5. Section 81.80.130, chapter 14, Laws of 1961 and RCW 81.80.130 are each amended to read as follows:

(1) The commission shall supervise and regulate every "common carrier" in this state; make, fix, alter, and amend, just, fair, reasonable, minimum, maximum, or minimum and maximum, rates, charges, classifications, rules, and regulations for all "common carriers"; regulate the accounts, service, and safety of operations thereof; require the filing of reports and other data thereby; and supervise and regulate all "common carriers" in all other matters affecting their relationship with competing carriers of every kind and the shipping and general public((~~: PROVIDED,~~)). The commission may by order approve rates filed by common carriers in respect to certain designated commodities and services when, in the opinion of the commission, it is impractical for the commission to make, fix, or prescribe rates covering such commodities and services.

(2) Notwithstanding any other provision of this chapter or any existing commission regulation, motor carriers may deviate from the prescribed general freight base rate for shipments weighing in excess of ten thousand pounds by an amount not to exceed fifteen percent above or below the base rate. A carrier or carriers electing to so deviate shall file notice thereof with the commission. The proposed deviation becomes effective five days after filing and receipt by the commission. If the base rate is thereafter increased or decreased, the increase or decrease shall be applied to any deviation rate established pursuant to this subsection. The deviation remains in effect and shall not be suspended unless the commission, after hearing, determines that suspension is warranted and so orders. The deviation procedures become effective January 1, 1989.

(3) "Predatory pricing" means the charging of rates, fares, or charges by a carrier that are below that carrier's actual operating costs or unreasonably above such costs. A motor carrier regulated under this chapter may not engage in predatory pricing. Any interested party, including any interested motor carrier and any interested shipper, may file a petition for suspension with the commission seeking to have the commission determine if predatory pricing exists. The commission shall duly prescribe appropriate expedited procedures for hearing and for interim decision on any such complaint at the completion of the hearing or as soon thereafter as is reasonably possible. The commission may charge a fee for the filing of any documents required to be filed with the commission under subsection (2) of this section.

(4) If the commission determines that a carrier has engaged in predatory pricing, the commission may (a) suspend the carrier's deviation from the base rate, (b) direct the carrier to charge and collect the base rate, and (c) direct the carrier to repay any overcharges and collect any undercharges.

(5) All rates, fares, and charges governing shipments of general freight weighing in excess of ten thousand pounds in effect on January 1, 1989, shall serve as the initial base rates for purposes of instituting the deviation procedures.

(6) The commission may order, after notice and hearing, if deemed necessary to accomplish the objectives of this chapter, that the deviation percentage provided in subsection (2) of this section be adjusted. The deviation percentage shall not be decreased by the commission so as to be less than fifteen percent above or below the base rate for shipments weighing in excess of ten thousand pounds.

(7) The commission may also order, after notice and hearing, if deemed necessary to accomplish the objectives of this chapter, that deviations from established rates be allowed in such amounts as deemed appropriate by the commission on shipments transported by any one or more of the various classes of specialized motor carriers. If the commission orders establishment of any deviations applicable to such shipments, the commission shall further order in connection with establishment thereof that the suspension and predatory pricing provisions and procedures of subsections (2) and (3) of this section apply to such shipments.

Sec. 6. Section 81.80.150, chapter 14, Laws of 1961 as last amended by section 2, chapter 116, Laws of 1981 and RCW 81.80.150 are each amended to read as follows:

The commission shall make, fix, construct, compile, promulgate, publish, and distribute tariffs containing compilations of rates, charges, classifications, rules, and regulations to be used by all common carriers other than those to which the provisions of this chapter are declared inapplicable by RCW 81.80.040 or section 3 of this act. In compiling such tariffs it shall include within any given tariff compilation such carriers, groups of carriers, commodities, or geographical areas as it determines shall be in the public interest. Such compilations and publications may be made by the commission by compiling the rates, charges, classifications, rules, and regulations now in effect, and as they may be amended and altered from time to time after notice and hearing, by issuing and distributing revised pages or supplements to such tariffs or reissues thereof in accordance with the orders of the commission: PROVIDED, That the commission, upon good cause shown, may establish temporary rates, charges, or classification changes which may be made permanent only after publication in an applicable tariff for not less than sixty days, and determination by the commission thereafter that the rates, charges or classifications are just, fair, and reasonable: PROVIDED FURTHER, That temporary rates shall not be made permanent except upon notice and hearing if within sixty days from date of publication, a shipper or common carrier, or representative of either, shall file with the commission a protest alleging such temporary rates to be unjust, unfair, or unreasonable. For purposes of this proviso, the publication of temporary rates in the tariff shall be deemed adequate public notice. Nothing herein shall be construed to prevent the commission from proceeding on its own motion, upon notice and hearing, to fix and determine just, fair, and reasonable rates, charges, and classifications. The proper tariff, or tariffs, applicable to a carrier's operations shall be available to the public at each agency and office of all common carriers operating within this state. Such compilations and publications shall be sold by the commission for a fee to be determined annually and not to exceed the cost of this service. Corrections to such publications shall be furnished to all subscribers to tariffs in the form of corrected pages to the tariffs, supplements, or reissues thereof. In addition to the initial charge for each tariff, the commission shall charge an annual maintenance fee not to exceed the cost of issuing corrections or supplements and mailing them to subscribers: PROVIDED, That copies may be furnished free to other regulatory bodies and departments of government and to colleges, schools, and libraries. All copies of the compilations, whether sold or given free, shall be issued and distributed under rules and regulations to be fixed by the commission: PROVIDED FURTHER, That the commission may by order authorize common carriers to publish and file tariffs with the commission and be governed thereby in respect to certain designated commodities and services when, in the opinion of the commission, it is impractical for the commission to make, fix, construct, compile, publish, and distribute tariffs covering such commodities and services.

Sec. 7. Section 81.80.190, chapter 14, Laws of 1961 as amended by section 5, chapter 191, Laws of 1986 and RCW 81.80.190 are each amended to read as follows:

The commission shall ((~~in the granting of permits to "common carriers" and "contract carriers" under this chapter~~)) require ((~~such carriers~~)) all "common carriers" and "contract carriers" to either ((~~procure and file~~)) provide evidence of current liability and property damage insurance from a company licensed to write such insurance in the state of Washington, or deposit such security, for such limits of liability and upon such terms and conditions as the commission shall determine to be necessary for the reasonable protection of the public against damage and injury for which such carrier may be liable by reason of the operation of any motor vehicle.

In fixing the amount of said insurance policy or policies, or deposit of security, the commission shall give due consideration to the character and amount of traffic and the number of persons affected and the degree of danger which the proposed operation involves.

If the commission is notified of the cancellation, revocation, or any other changes in the required insurance or security of a common carrier or contract carrier with a permit to transport radioactive or hazardous materials, the commission shall immediately notify the state radiation control agency of the change.

Sec. 8. Section 81.80.260, chapter 14, Laws of 1961 as amended by section 3, chapter 69, Laws of 1967 and RCW 81.80.260 are each amended to read as follows:

It shall be unlawful for any person to operate any vehicle at the same time in more than one class of operation, except upon approval of the commission and a finding that such operation will be in the public interest. However, a motor freight carrier providing transportation exempt from the jurisdiction of the commission under section 3 of this act may transport property under that section in the same vehicle, and at the same time as property that the carrier is authorized to transport under a permit issued under RCW 81.80.070. Transportation of such property does not affect the unregulated status of the exempt property or the regulated status of the property that the carrier is authorized to transport under the permit. Moreover, nothing contained in this chapter may be construed to prohibit the issuance of a "common carrier," "contract carrier," or "temporary carrier" permit, or extension thereof, to a "private carrier" upon proper application therefor and a finding by the commission as required by RCW 81.80.070.

No "exempt carrier" as such shall transport property for compensation except as hereinabove provided.

Sec. 9. Section 81.80.355, chapter 14, Laws of 1961 and RCW 81.80.355 are each amended to read as follows:

Any person not holding a permit authorizing him to operate as a common carrier, contract carrier, or temporary carrier for the transportation of property for compensation in this state, or ((an)) any exempt carrier, who displays on any building, vehicle, billboard or in any manner, any advertisement of, or by circular, letter, newspaper, magazine, poster, card or telephone directory, advertises the transportation of property for compensation shall be guilty of a misdemeanor and punishable as such: PROVIDED, That nothing in this section may be construed to prohibit advertising by any person offering transportation to which the provisions of this chapter are declared inapplicable by RCW 81.80.040 or section 3 of this act.

Sec. 10. Section 9, chapter 59, Laws of 1963 and RCW 81.80.371 are each amended to read as follows:

It shall be unlawful for any carrier to perform a transportation service for compensation upon the public highways of this state without first having secured appropriate authority from the Interstate Commerce Commission, if such authority is required, and without first having registered such authority, if any, with the commission.

It shall also be unlawful for a carrier to perform a transportation service for compensation on the public highways of this state as an interstate carrier of commodities included in the exemptions provided in section ((~~203(b)~~)) 10526 of the Interstate Commerce Act without having first registered as such a carrier with the commission.

Such registration shall be granted upon application, without hearing, upon payment of the appropriate filing fee prescribed by this chapter for other applications for operating authority.

Sec. 11. Section 81.04.010, chapter 14, Laws of 1961 as amended by section 2, chapter 13, Laws of 1981 and RCW 81.04.010 are each amended to read as follows:

As used in this title, unless specially defined otherwise or unless the context indicates otherwise:

"Commission" means the utilities and transportation commission.

"Commissioner" means one of the members of such commission.

"Corporation" includes a corporation, company, association or joint stock association.

"Person" includes an individual, a firm or copartnership.

"Street railroad" includes every railroad by whatsoever power operated, or any extension or extensions, branch or branches thereof, for public use in the conveyance of persons or property for hire, being mainly upon, along, above or below any street, avenue, road, highway, bridge or public place within any one city or town, and includes all equipment, switches, spurs, tracks, bridges, right of trackage, subways, tunnels, stations, terminals and terminal facilities of every kind used, operated, controlled or owned by or in connection with any such street railroad, within this state.

"Street railroad company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town, owning, controlling, operating or managing any street railroad or any cars or other equipment used thereon or in connection therewith within this state.

"Railroad" includes every railroad, other than street railroad, by whatsoever power operated for public use in the conveyance of persons or property for hire, with all bridges, ferries, tunnels, equipment, switches, spurs, tracks, stations and terminal facilities of every kind used, operated, controlled or owned by or in connection with any such railroad.

"Railroad company" includes every corporation, company, association, joint stock association, partnership or person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating, controlling or managing any railroad or any cars or other equipment used thereon or in connection therewith within this state.

"Express company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, who shall engage in or transact the business of carrying any freight, merchandise or property for hire on the line of any common carrier operated in this state.

"Common carrier" includes all railroads, railroad companies, street railroads, street railroad companies, steamboat companies, express companies, car companies, sleeping car companies, freight companies, freight line companies, and every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town, owning, operating, managing or controlling any such agency for public use in the conveyance of persons or property for hire within this state.

"Vessel" includes every species of watercraft, by whatsoever power operated, for public use in the conveyance of persons or property for hire over and upon the waters within this state, excepting all towboats, tugs, scows, barges, and lighters, and excepting rowboats and sailing boats under twenty gross tons burden, open steam launches of five tons gross and under, and vessels under five tons gross propelled by gas, fluid, naphtha or electric motors.

"Steamboat company" includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers, appointed by any court whatsoever, owning, controlling, leasing, operating or managing any vessel over and upon the waters of this state.

"Transportation of property" includes any service in connection with the receiving, delivery, elevation, transfer in transit, ventilation, refrigeration, icing, storage and handling of the property transported, and the transmission of credit.

"Transportation of persons" includes any service in connection with the receiving, carriage and delivery of the person transported and his baggage and all facilities used, or necessary to be used in connection with the safety, comfort and convenience of the person transported.

"Public service company" includes every common carrier with the exception of those motor freight carriers engaged exclusively in the operation of motor vehicles exempt from chapter 81.80 RCW.

The term "service" is used in this title in its broadest and most inclusive sense.

Sec. 12. Section 81.04.110, chapter 14, Laws of 1961 and RCW 81.04.110 are each amended to read as follows:

Complaint may be made by the commission of its own motion or by any person or corporation, chamber of commerce, board of trade, or any commercial, mercantile, agricultural, or manufacturing society, or any body politic or municipal corporation, by petition or complaint in writing, setting forth any act or thing done or omitted to be done by any public service corporation in violation, or claimed to be in violation, of any provision of law or of any order or rule of the commission.

When two or more public service corporations, (meaning to exclude municipal and other public corporations) are engaged in competition in any locality or localities in the state, either may make complaint against the other or others that the rates, charges, rules, regulations, or practices of such other or others with or in respect to which the complainant is in competition, are unreasonable, unremunerative, discriminatory, illegal, unfair, or intending or tending to oppress the complainant, to stifle competition, or to create or encourage the creation of monopoly((~~, and~~)). Upon such complaint or upon complaint of the commission upon its own motion, the commission shall have power, after notice and hearing as in other cases, to, by its order, subject to appeal as in other cases, correct the abuse complained of by establishing such uniform rates, charges, rules, regulations, or practices in lieu of those complained of, to be observed by all of such competing public service corporations in the locality or localities specified as shall be found reasonable, remunerative, nondiscriminatory, legal, and fair or tending to prevent oppression or monopoly or to encourage competition((~~, and~~)) . Upon any such hearing it shall be proper for the commission to take into consideration the rates, charges, rules, regulations, and practices of the public service corporation or corporations complained of in any other locality or localities in the state. However, nothing in this section may be interpreted to give to the commission the power to establish any rate, charge, rule, regulation, or practice that would require observance by any motor freight carrier in lieu of rates, charges, rules, regulations, or practices that would cover that carrier's actual operating costs incurred in transporting shipments subject to the rate-making authority of the commission plus a reasonable margin.

All matters upon which complaint may be founded may be joined in one hearing, and no motion shall be entertained against a complaint for misjoinder of complaints or grievances or misjoinder of parties; and in any review of the courts of orders of the commission the same rule shall apply and pertain with regard to the joinder of complaints and parties as herein provided: PROVIDED, All grievances to be inquired into shall be plainly set forth in the complaint. No complaint shall be dismissed because of the absence of direct damage to the complainant.

Upon the filing of a complaint, the commission shall cause a copy thereof to be served upon the person or corporation complained of, which shall be accompanied by a notice fixing the time when and place where a hearing will be had upon such complaint. The time fixed for such hearing shall not be less than ten days after the date of the service of such notice and complaint, excepting as herein provided. Rules of practice and procedure not otherwise provided for in this title may be prescribed by the commission.

NEW SECTION. Sec. 13. A new section is added to chapter 81.80 RCW to read as follows:

The commission shall supervise and regulate every private carrier in the state in regard to safety of operation. In carrying out its duties under this section, the commission may inspect vehicles, records, or any other necessary item, on public property or private property owned, leased, or otherwise controlled by the private carrier whose vehicles or records or other items are subject to inspection.

NEW SECTION. Sec. 14. The following acts or parts of acts are each repealed:

(1) Section 81.80.020, chapter 14, Laws of 1961 and RCW 81.80.020; and

(2) Section 5, chapter 242, Laws of 1963 and RCW 81.80.175.

NEW SECTION. Sec. 15. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.