SENATE BILL REPORT

SB 6055

BYSenators Benitz, Owen, Patterson and Sellar

Exempting agricultural commodities from motor freight carrier regulation.

Senate Committee on Transportation

Senate Hearing Date(s):March 1, 1989

Senate Staff:Mary McLaughlin (786-7309)

AS OF FEBRUARY 28, 1989

BACKGROUND:

The following farm vehicles are exempt from the Utilities and Transportation Commission's (UTC's) entry and rate regulation:  (1) vehicles used to transport a farmer's own farm products from the point of production to market or the first processing plant, and (2) the infrequent or seasonal transportation of products or supplies by one farmer for another when the farms are located within 20 miles of each other.

In addition to this general farm exemption, the UTC also issues permits for the for-hire movement of unprocessed or unmanufactured agricultural commodities and livestock for a distance not to exceed 80 miles from the farm to market if the applicant is found to be fit, willing and able.  The operator is required to file tariffs and proof of insurance.

SUMMARY:

The intrastate movement of processed and unprocessed agricultural products, other than livestock and forest products, is exempt from the Utilities and Transportation's (UTC) entry and rate regulations.  Unprocessed agricultural products are exempt when moving from the point of production to warehouses, storage points, packers, fresh shippers, processors or brokers.  Processed agricultural commodities are exempt when moving from warehouses, storage points, packers, fresh shippers, processors or brokers to the first point of sale.  The first point of sale is the first time title passes from the producer to a buyer for a price, regardless of the physical location of the product.

In lieu of rate and entry regulation, these carriers are subject to payment of a one-time $25 UTC registration fee and annual regulatory fee.  For-hire agricultural carriers remain subject to the UTC's proof of insurance requirements and terminal surveys.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 28, 1989