H-2144.2          _______________________________________________

                            SUBSTITUTE HOUSE BILL 2005

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By House Committee on Transportation (originally sponsored by Representatives Jones, Wilson, R. Fisher and Schmidt).

Read first time March 11, 1991.  Regulating freight brokers and forwarders.

     AN ACT Relating to freight brokers and forwarders; and amending RCW 81.80.430.

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

     Sec. 1.  RCW 81.80.430 and 1990 c 109 s 1 are each amended to read as follows:

     (1) ((After June 30, 1991, each broker or forwarder)) A person who provides brokering or forwarding services for the transportation of property in intrastate commerce shall file with the commission and keep in effect, a surety bond or deposit of satisfactory security, in a sum to be determined by the commission, but not less than five thousand dollars, conditioned upon such broker or forwarder making compensation to shippers, consignees, and carriers for all moneys belonging to them and coming into the broker's or forwarder's possession in connection with the transportation service.

     (2) ((After June 30, 1991,)) It is unlawful for a broker or forwarder to conduct business ((as such)) in this state without first securing appropriate authority from the Interstate Commerce Commission, if such authority is required, and registering with and providing satisfactory evidence of financial responsibility to the Washington utilities and transportation commission.  Satisfactory evidence of financial responsibility shall consist of a surety bond or deposit of security.  Compliance with this requirement may be met by filing a copy of a surety bond or trust fund approved by the Interstate Commerce Commission.  The commission shall grant such registration without hearing, upon application and payment of ((the appropriate filing)) a one-time registration fee as prescribed by ((this chapter for other applications for operating authority)) the commission.  For purposes of this subsection, a broker or forwarder conducts business in this state when the broker or forwarder, its employees, or agents is physically present in the state and is acting as a broker or forwarder.

     (3) Failure to file the bond ((or)), deposit ((the)) security, or provide satisfactory evidence of financial responsibility is sufficient cause for refusal of the commission to grant the application for a permit or registration.  Failure to maintain the bond or the deposit of security is sufficient cause for cancellation of a permit or registration.