BILL REQ. #: H-1524.4
| State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/17/11.
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 46.72A RCW; adding new sections to chapter 81.72 RCW; creating a new section; prescribing penalties; and providing an effective date.
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 owns and operates a for hire vehicle licensed
under chapter 46.72 RCW, a limousine under chapter 46.72A RCW, or a
taxicab under chapter 81.72 RCW and the for hire operator or chauffeur
of such vehicle is within the mandatory coverage of this title.
(2) Any business that as owner or agent leases a for hire vehicle
licensed under chapter 46.72 RCW, a limousine under chapter 46.72A RCW,
or a taxicab under chapter 81.72 RCW to a for hire operator or a
chauffeur and the for hire operator or chauffeur of such vehicle is
within the mandatory coverage of this title.
(3) For the purposes of this section, the following definitions
apply unless the context clearly requires otherwise:
(a) "Chauffeur" has the same meaning as provided in RCW 46.04.115;
and
(b) "For hire operator" means a person who is operating a vehicle
for the purpose of carrying persons for compensation.
NEW SECTION. Sec. 3 A new section is added to chapter 51.16 RCW
to read as follows:
(1) For the purposes of section 2 of this act:
(a) By no later than January 1, 2012, the department must determine
by rule the basis for industrial insurance premiums for: (i) Any
business that owns and operates for hire, limousine, or taxicab
vehicles; and (ii) any business that owns and leases for hire,
limousine, or taxicab vehicles to a business operating such vehicle;
and
(b) Not more than ninety days after the department has determined
the basis for industrial insurance premiums by rule under (a) of this
subsection, the department must assess such premiums on: (i) Any
business that owns and operates for hire, limousine, or taxicab
vehicles; and (ii) any business that owns and leases for hire,
limousine, or taxicab vehicles to a business operating such vehicle.
(2) In determining the basis under this section, the department
must consider:
(a) The unique economic structures of the taxicab, for hire
vehicle, and limousine industries;
(b) The difficulty of equitably assessing industrial insurance
premiums on classes of businesses that utilize both employer/employee
and independent contractor business models;
(c) The economic impact on businesses of a rate and assessment
alternative, such as a flat rate and assessment levied on a per vehicle
or a miles driven basis, compared to that of an assessment based on
hours worked;
(d) The department's costs and efficiency of administration;
(e) The cost to businesses and covered workers; and
(f) Anticipated effectiveness in implementing mandatory industrial
insurance coverage of for hire vehicle operators as provided in section
2 of this act.
NEW SECTION. Sec. 4 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
independent owner-operated for hire vehicle, limousine, and taxicab
businesses, the department may appoint a panel of individuals with for
hire vehicle, limousine, or taxicab transportation industry experience
and expertise to advise the department.
(2) The owner of any for hire, limousine, or taxicab vehicle
subject to mandatory industrial insurance pursuant to section 2 of this
act is eligible for inclusion in a retrospective rating program
authorized and established pursuant to chapter 51.18 RCW.
NEW SECTION. Sec. 5 A new section is added to chapter 46.72 RCW
to read as follows:
(1) A for hire vehicle certificate issued pursuant to this chapter
must be suspended or revoked and may not be renewed in the event of
failure to pay the 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 labor and industries 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 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 and enter into cooperative agreements to
implement this section.
NEW SECTION. Sec. 6 A new section is added to chapter 46.72A RCW
to read as follows:
(1) A business license and vehicle certificate issued pursuant to
RCW 46.72A.050 must be suspended or revoked and must not be renewed in
the event of failure to pay the 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 limousine and its chauffeur must have evidence of payment
in good standing with the department of labor and industries of the for
hire vehicle operator industrial insurance premium, whenever the
limousine 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 is a civil
infraction punishable by a fine of not more than two hundred fifty
dollars per infraction separately upon both the limousine vehicle owner
and the limousine chauffeur if they are not one and the same.
(3) Business license and vehicle certificate 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 and enter into cooperative agreements to
implement this section.
NEW SECTION. Sec. 7 A new section is added to chapter 81.72 RCW
to read as follows:
(1) A license issued pursuant to this chapter must be suspended or
revoked and may not be renewed in the event of failure to pay the
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 taxicab vehicle and its operator must have evidence of
payment in good standing with the department of labor and industries of
the for hire vehicle operator industrial insurance premium, whenever
the taxicab 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 is a civil
infraction punishable by a fine of not more than two hundred fifty
dollars per infraction separately upon both the taxicab vehicle owner
and the taxicab vehicle operator if they are not one and the same.
(3) Taxicab 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)(a) The department of labor and industries, the department of
licensing, cities, towns, counties, and port districts may enter into
cooperative agreements to implement this section.
(b) The department of licensing and the department of labor and
industries may adopt rules to implement this section.
(c) Cities, towns, counties, and port districts may take
legislative action to implement this section.
NEW SECTION. Sec. 8 A new section is added to chapter 81.72 RCW
to read as follows:
Any city, town, county, or port district setting the rates charged
for taxicab services under this chapter must adjust rates to offset any
increased cost to any such transportation business from mandatory
industrial or other insurance coverage.
NEW SECTION. Sec. 9 A new section is added to chapter 81.72 RCW
to read as follows:
Rate-setting authority under this chapter is limited to the setting
of consumer rates for the provision of transportation services.
Sec. 10 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.
NEW SECTION. Sec. 11 Except for sections 3, 8, 9, and 10 of this
act, this act takes effect January 1, 2012.