SENATE BILL REPORT

SB 5588

BYSenators Patterson, Kreidler, Nelson, Sutherland, Johnson and Benitz

Exempting vehicles carrying lumber from motor freight carrier regulations.

Senate Committee on Transportation

Senate Hearing Date(s):February 8, 1989; February 27, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Barr, Benitz, Hansen, McMullen, Sellar, Thorsness.

Senate Staff:Mary McLaughlin (786-7309)

                  March 1, 1989

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 27, 1989

BACKGROUND:

Carriers which are subject to Washington's intrastate entry and rate regulation must obtain operating authority from the Utilities and Transportation Commission (UTC) prior to commencing operation.  Certain carriers are exempt from both entry and rate regulation including motor vehicles transporting U.S. mail and newspapers, government vehicles, certain farm vehicles, vehicles under 8,000 pounds transporting legal documents, tow trucks, etc. 

Ten states, including Idaho and Montana, exempt unprocessed logs from both rate and entry regulation.  In Oregon and California unprocessed logs, poles and pilings are exempt from rate regulation but remain subject to the entry standards. Processed forest products are subject to both rate and entry regulation in Idaho and California. 

In Oregon, certain processed and unprocessed forest products (sawdust, hog fuel, wood chips, particle board, wall board, siding, cordwood, lumber, shingles, veneer, Christmas trees and bark dust) move under a one-time $50 over-the-counter permit system.  The carrier must show financial ability to provide the service (fit, willing and able) and file proof of insurance.  Such carriers are not subject to rate regulation. 

On the federal level, unprocessed logs, poles and pilings, wood chips, bark dust, sawdust, cordwood, hog fuel and Christmas trees are exempt when moving in interstate commerce.  Processed forest products such as lumber, veneer, plywood, particle board, shingles, wallboard and siding remain subject to to the Interstate Commerce Commission's (ICC's) entry and rate regulations.

In Washington, logs moving from the forest to the ports for export are exempt from rate and entry standards as these movements are a part of interstate commerce.  (The final destination determines whether the movement is intra- or interstate.)  Carriers moving logs in interstate commerce are subject to a one-time $25 Utilities and Transportation Commission (UTC) registration fee, payment of the annual regulatory fee, and filing proof of insurance in the amount of $750,000.

Washington harvested logs destined for mills or other processing points within the state are regulated by the UTC as intrastate movements.  These movements are subject to the state's entry and rate regulations.

SUMMARY:

The intrastate movement of certain processed and unprocessed forest products (logs, poles, pilings, wood chips, lumber, shingles, veneer, plywood, particle board, wallboard, siding, cordwood, sawdust, hog fuel, bark dust and Christmas trees) is exempt from UTC entry and rate regulation.  In lieu of rate and entry regulation, such carriers are subject to payment of a one- time $25 UTC registration fee and annual regulatory fee.  For- hire log haul carriers remain subject to the UTC's proof of insurance requirements and terminal surveys.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

The intent that vehicles transporting processed and unprocessed forest products are subject to the insurance provisions of the commission is clarified.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 31, 1989

Senate Committee - Testified: Marty Sangster, WTA; Joe Keefe, UTC; Representative Haugen; Dave Bowden, Timber Manager, Longview Fibre Co.; Leila Kysar, Kysar Tree Farm Management; Mike Ryherd, Teamsters; Chuck McRae, International Woodworkers of America; Gus Keene, Forrest Manufacturing; Bruce Stervees, N. Region Timber Man.; Tom Mayr, Mayr Bros.; Don Lemmons, President, Interstate Wood Products; Steve Blankenship, President, M&M Transport, Inc.; Don Frey, V.P., Metro Hauling, Inc.; Ray Baldwin, Former President, Mellow Truck Lines; Rob Galbraith, President, Brooks Truck Line, Inc.; Hinton Baker, tree farmer; Tom Fox; John Goreman, Manager of N. Resource for Simpson Timber, President, Washington Forest Protection Agency; Bill Moore, President, Log Truckers Conference; Barbara Faught, Log Truckers Conference; Boyd Hartman, attorney