AN ACT Relating to trucking regulation; amending RCW 81.80.070 and 81.80.040; adding new sections to chapter 81.80 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that the public interest would be served by reforming the present system of trucking regulation to be more efficient and more responsive to the needs of consumers while maintaining highway safety.

Sec. 2. Section 81.80.070, chapter 14, Laws of 1961 as amended by section 1, chapter 242, Laws of 1963 and RCW 81.80.070 are each amended to read as follows:

No "common carrier," "contract carrier," or "temporary carrier" shall operate for the transportation of property for compensation in this state without first obtaining from the commission a permit so to do. Permits heretofore issued or hereafter issued to any carrier, shall be exercised by said carrier to the fullest extent so as to render reasonable service to the public. Applications for common or contract carrier permits or extensions thereof shall be on file for a period of at least thirty days prior to the granting thereof unless the commission finds that special conditions require the earlier granting thereof.

A permit or extension thereof shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the services proposed and conform to the provisions of this chapter and the requirements, rules and regulations of the commission thereunder, and that such operations will be consistent with the public interest, ((~~and, in the case of common carriers, that the same are or will be required by the present or future public convenience and necessity,~~)) otherwise such application shall be denied.

Nothing contained in this chapter shall be construed to confer upon any person or persons the exclusive right or privilege of transporting property for compensation over the public highways of the state.

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

No carrier filing a zero revenue annual report with the commission the previous year may protest an application for an entry permit or extension thereof unless the carrier explains to the commission's satisfaction, on a form provided by the commission, the extenuating circumstances that led to the dormancy.

Any carrier protesting an application for an entry permit or extension thereof shall bear the burden of proving the applicant is not fit, willing, and able, or that the operations will not be consistent with the public interest.

NEW SECTION. Sec. 4. A new section is added to chapter 81.80 RCW to read as follows:

(1) Each motor freight carrier holding a valid "common carrier," "freight forwarder," or "temporary carrier" permit shall compile an independent tariff and be governed thereby in the delivery of all transportation services, other than those to which the provisions of this chapter are declared inapplicable by RCW 81.80.040. A tariff created under this section shall:

(a) Establish rates and classifications for transportation and service which may be provided under this chapter;

(b) Establish rules and practices on matters related to the transportation or service, including rules and practices on the issuance of receipts, bills of lading, and manifests, the manner and method of presenting, marking, packing, and delivering property for transportation, and the facilities for transportation; and

(2) Unless a shorter notice period is authorized by the commission in particular circumstances, an independent tariff, and any amendment, alteration, or rescission thereof, shall take effect ten days after filing with the commission, except that rate reduction amendments shall take effect five days after filing, provided that:

(a) The independent tariff, and any amendment, alteration, or rescission thereof has been filed with the commission in compliance with any rules and regulations established by the commission to achieve a reasonably clear tariff with a minimum of technical regulation; and

(b) The independent tariff, or an amendment, alteration, or rescission thereof is not disapproved by the commission in a proceeding under section 7 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 81.80 RCW to read as follows:

Each motor freight carrier holding a valid "contract carrier" permit shall establish and file with the commission actual rates for transportation services which it may provide, and rules and practices related to those rates, other than those to which the provisions of this chapter are declared inapplicable by RCW 81.80.040. However, this section does not require a motor contract carrier to maintain the same rates and rules for the same transportation provided to all shippers served by it.

NEW SECTION. Sec. 6. A new section is added to chapter 81.80 RCW to read as follows:

When the commission, after a hearing, determines that a rate filed by a carrier for providing transportation subject to its jurisdiction under this chapter is noncompensatory, predatory, or discriminatory, or that a classification, rule, or practice of the carrier, does or will violate this chapter, the commission shall disapprove the rate, classification, rule, or practice.

When a rate is disapproved by the commission, the carrier shall cease offering service at that rate.

NEW SECTION. Sec. 7. A new section is added to chapter 81.80 RCW to read as follows:

(1) The commission may begin a proceeding to determine the lawfulness of a rate, classification, rule, or practice immediately, on its own motion, or on application of another carrier or a shipper when:

(a) A new rate, classification, rule, or practice affecting a rate is filed with the commission by a common carrier, under section 4 of this act; or

(b) A new rate or rule or practice is filed with the commission by a contract carrier under section 5 of this act.

The commission shall give reasonable notice before beginning a proceeding.

(2) In a proceeding under this section, the burden is on the party protesting the rate, classification, rule, or practice to prove that it is, or results in, a noncompensatory, predatory, or discriminatory rate. A rate which exceeds the variable cost of the carrier providing the service shall be deemed to be compensatory. The commission shall give proceedings under this section preference over all other proceedings related to that type of carrier pending before it and make its decisions at the earliest practical time.

(3) If the commission finds that a protest is frivolous, it may require the protestant to reimburse the applicant and the commission their costs of defending and hearing the protest.

NEW SECTION. Sec. 8. A new section is added to chapter 81.80 RCW to read as follows:

The commission has the authority and duty to 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.

Sec. 9. Section 81.80.040, chapter 14, Laws of 1961 as last amended by section 1, chapter 171, Laws of 1984 and RCW 81.80.040 are each amended to read as follows:

The provisions of this chapter, except where specifically otherwise provided, and except the provisions providing for licenses, shall not apply to:

(1) Motor vehicles when operated in transportation exclusively within the corporate limits of any city or town of less than ten thousand population unless contiguous to a city or town of ten thousand population or over, nor between contiguous cities or towns both or all of which are less than ten thousand population;

(2) Motor vehicles when operated in transportation wholly within the corporate limits of cities or towns of ten thousand or more but less than thirty thousand population, or between such cities or towns when contiguous, as to which the commission, after investigation and the issuance of an order thereon, has determined that no substantial public interest exists which requires that such transportation be subject to regulation under this chapter;

(3) Motor vehicles when transporting exclusively the United States mail or in the transportation of newspapers or periodicals;

(4) Motor vehicles owned and operated by the United States, the state of Washington, or any county, city, town, or municipality therein, or by any department of them, or either of them;

(5) Motor vehicles specially constructed for towing disabled vehicles or wrecking and not otherwise used in transporting goods for compensation;

(6) Motor vehicles normally owned and operated by farmers in the transportation of their own farm, orchard, or dairy products, including livestock and plant or animal wastes, from point of production to market, or in the infrequent or seasonal transportation by one farmer for another farmer, if their farms are located within twenty miles of each other, of products of the farm, orchard, or dairy, including livestock and plant or animal wastes, or of supplies or commodities to be used on the farm, orchard, or dairy;

(7) Motor vehicles when transporting exclusively water in connection with construction projects only;

(8) Motor vehicles of less than 8,000 pounds gross vehicle weight when transporting exclusively legal documents, pleadings, process, correspondence, depositions, briefs, medical records, photographs, books or papers, cash or checks, when moving shipments of the documents described at the direction of an attorney as part of providing legal services;

(9) Motor vehicles of less than six thousand pounds gross vehicle weight, when transporting packages or parcels each weighing ten pounds or less. However, such vehicles transporting hazardous materials are subject to the commission's jurisdiction for the safety of vehicles, including placarding, insurance, driver qualifications, driver's hours of service, and related record keeping.

NEW SECTION. Sec. 10. A new section is added to chapter 81.80 RCW to read as follows:

The commission shall establish rules for the protection of shippers of household goods. These rules, at a minimum, shall establish procedures for receiving binding estimates, and for mediation of disputes between shippers and carriers of household goods.