BILL REQ. #:  S-0389.4 

Read first time 01/27/11.   Referred to Committee on Labor, Commerce & Consumer Protection.

     AN ACT Relating to for hire vehicles and for hire vehicle operators; amending RCW 81.72.210; adding new sections to chapter 51.12 RCW; adding a new section to chapter 51.16 RCW; adding a new section to chapter 46.72 RCW; adding a new section to chapter 81.72 RCW; and prescribing penalties.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.12 RCW to read as follows:
     The legislature finds that taxicab, limousine, and other for hire vehicle operators are at significant risk of injury due to work-related accidents or crimes such as robbery that may not be covered by standard vehicle insurance policies. Since almost all taxicab, limousine, and other for hire vehicle business operations are independent small business franchises, their owners or operators may opt out of industrial insurance coverage without full consideration for the risk of financial exposure to themselves or to their businesses. As a result, health care may be provided to them at public expense or not at all, and erroneous claims may be made by health care providers for insurance coverage, against the state department of labor and industries, private businesses, or the taxicab associations in which certain municipalities require participation. Most for hire vehicle operators do not enjoy the benefit of the broad public policy embodied in this title that mandates industrial insurance protection for workers. The legislature therefore declares that all taxicab, limousine, for hire vehicle businesses, and for hire vehicle operators are subject to mandatory industrial insurance coverage under this title.

NEW SECTION.  Sec. 2   A new section is added to chapter 51.12 RCW to read as follows:
     (1) Any business that is licensed or operating a for hire vehicle under chapter 46.72, 46.72A, or 81.72 RCW and that is operating such vehicle as a for hire operator is within the mandatory coverage of this title.
     (2) Any business that as owner or agent is leasing a for hire vehicle to a for hire operator is within the mandatory coverage of this title.
     (3) For the purposes of this section:
     (a) "For hire vehicle" has the same meaning as provided in RCW 46.04.190; and
     (b) "For hire operator" has the same meaning as "operator or driver" as provided in RCW 46.04.370.

NEW SECTION.  Sec. 3   A new section is added to chapter 51.16 RCW to read as follows:
     For the purposes of sections 1, 2, and 4 of this act, the department must compute industrial insurance premium rates for: (1) Any business operating for hire, limousine, or taxicab vehicles; and (2) any business leasing licensed vehicles to a business operating such vehicles, on a per vehicle basis.

NEW SECTION.  Sec. 4   A new section is added to chapter 46.72 RCW to read as follows:
     (1) A for hire vehicle license issued pursuant to this chapter or chapter 46.72A or 81.72 RCW must be suspended or revoked, and may not be renewed or ownership in such vehicle transferred, in the event of failure to file report of, and pay, the public utility tax imposed on an urban transportation business under RCW 82.16.020 or mandatory for hire vehicle operator industrial insurance premium as charged by the department of labor and industries under sections 2 and 3 of this act.
     (2)(a) A for hire vehicle and its operator must have evidence of payment in good standing with the department of the for hire vehicle operator industrial insurance premium, whenever the for hire vehicle is operated on public streets and highways for compensation.
     (b) Failure to produce evidence of payment of the for hire vehicle insurance premium upon demand by a law enforcement officer or other government agent acting under the authority of this chapter or chapter 46.72A or 81.72 RCW is a civil infraction punishable by a fine of not more than two hundred fifty dollars per infraction separately upon both the for hire vehicle owner and the for hire vehicle operator if they are not one and the same.
     (3) For hire vehicle license suspension or revocation and the administration thereof for failure to pay the mandatory industrial insurance premium must be at the direction and expense of the department of labor and industries.
     (4) The department of labor and industries and the department of licensing may adopt rules to implement this section.

NEW SECTION.  Sec. 5   A new section is added to chapter 51.12 RCW to read as follows:
     (1) In order to assist the department with controlling costs related to the self-monitoring of industrial insurance claims by independently operated for hire vehicle, limousine, and taxicab businesses, the department may empower a panel of individuals with for hire vehicle, limousine, and taxicab transportation industry experience and expertise to advise the department.
     (2) The owner of any for hire vehicle subject to mandatory industrial insurance pursuant to this act is eligible for inclusion in a retrospective rating program authorized and established pursuant to chapter 51.18 RCW.

NEW SECTION.  Sec. 6   A new section is added to chapter 81.72 RCW to read as follows:
     (1) Any city, county, or port district setting the rates charged for taxicab service under this chapter, or for hire vehicles or limousines operating under the authority of chapter 46.72 or 46.72A RCW or a taxicab under chapter 46.72 RCW, must: (a) Consider the impact of mandatory industrial insurance on such businesses in the calculation and setting of rates; and (b) adjust rates to offset any increased cost to any such transportation business from mandatory industrial or other insurance coverage.
     (2) Rate-setting authority under this chapter is limited to the setting of consumer rates for the provision of transportation services.

Sec. 7   RCW 81.72.210 and 1984 c 126 s 2 are each amended to read as follows:
     To protect the public health, safety, and welfare, cities, towns, counties, and port districts of the state may license, control, and regulate privately operated taxicab transportation services operating within their respective jurisdictions. The power to regulate includes:
     (1) Regulating entry into the business of providing taxicab transportation services;
     (2) Requiring a license to be purchased as a condition of operating a taxicab and the right to revoke, cancel, or refuse to reissue a license for failure to comply with regulatory requirements;
     (3) Controlling the consumer rates charged for providing taxicab transportation service and the manner in which consumer rates are calculated and collected, including the establishment of zones as the basis for consumer rates;
     (4) Regulating the routes of taxicabs, including restricting access to airports;
     (5) Establishing safety, equipment, and insurance requirements; and
     (6) Any other requirements adopted to ensure safe and reliable taxicab service.