SENATE BILL REPORT

HB 1356

As Reported By Senate Committee On:

Highways & Transportation, March 27, 2003

Title: An act relating to updating utilities and transportation commission regulatory fees.

Brief Description: Updating utilities and transportation commission regulatory fees.

Sponsors: Representatives Dunshee, Sommers, DeBolt and Alexander; by request of Utilities & Transportation Commission.

Brief History:

Committee Activity: Highways & Transportation: 3/25/03, 3/27/03 [DPA].

SENATE COMMITTEE ON HIGHWAYS & TRANSPORTATION

Majority Report: Do pass as amended.

      Signed by Senators Horn, Chair; Benton, Vice Chair; Swecker, Vice Chair; Esser, Haugen, Kastama, Mulliken, Oke, Prentice and Spanel.

Staff: Kelly Simpson (786-7403)

Background: Under current law, companies regulated by the Utilities and Transportation Commission (UTC) are required to pay annual fees. The fees are based on a percentage of each company's gross annual operating revenue from intrastate operations. The minimum fee amounts are set in statute. The UTC may adjust the fee rates as a part of its rate setting process but may not exceed the maximum rates set in statute.

The fee rates vary by category of company as follows:

-    For public utility, telecommunications, and certain transportation companies, regulated by the UTC, the fee is limited to a maximum of one-tenth of 1 percent of the first $50,000 plus two-tenths of 1 percent of any amount over $50,000. No fee may be less than $1.

-    For auto transportation companies, the fee is limited to a maximum of two-fifths of 1 percent. No fee may be less than $2.50.

-    For commercial ferry companies, the fee is limited to a maximum of two-fifths of 1 percent. No fee may be less than $5.

-    For solid waste collection companies, the fee is limited to a maximum of 1 percent. No fee may be less than $1.

The amount collected from the fees must reflect the reasonable cost of regulating the companies. The UTC may not waive minimum fees set out in statute.

Summary of Amended Bill: The minimum fees established in statute are removed. However, the UTC may set, through new rule-making authority, minimum fees that do not exceed the costs of collecting the fees. The UTC may also waive part or all of the minimum fees.

Amended Bill Compared to Original Bill: The cap on the minimum fee is changed from $100 to the actual cost of collecting the fee.

Appropriation: None.

Fiscal Note: Available.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This bill addresses minimum fees only, not maximums. The minimum fees are outdated and were set in statute 35 years ago. In some instances, the cost of actually collecting the fees is greater than the amount collected. The bill would give the UTC flexibility to address these circumstances and waive fees that are too costly to collect.

Testimony Against: None.

Testified: Beth Redfield, WUTC (pro).