Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Transportation Committee

HB 2604

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Concerning emerging internet technology applications and consumers utilizing the services of carrier network companies and carrier network company operators.

Sponsors: Representatives Tarleton and Senn.

Brief Summary of Bill

  • Provides for the regulation of carrier network companies and carrier network company operators.

Hearing Date: 1/24/18

Staff: David Munnecke (786-7315).

Background:

The Washington Utilities and Transportation Commission (UTC) regulates several types of transportation companies, including household goods movers, which are required to obtain a permit from the UTC before operating. All of these regulated transportation companies are subject to a series of public safety and consumer protection requirements, including:

The UTC's employees conduct safety and consumer protection audits of permitted companies to ensure statutory requirements are met. The UTC is also empowered to impose penalties for a company's failure to comply with these requirements.

Summary of Bill:

A carrier network company (CNC) is defined as any corporation, partnership, sole proprietorship, or other permitted entity that is operating in the State of Washington and provides a digital network or software application for the purpose of brokering the transportation of property for compensation between customers and CNC operators( CNCO).

A CNCO is defined as an operator that uses a CNC's digital network or software application to transport property for customers brokered by a CNC. A CNCO must conduct such transportation using a standard size pickup or other noncommercial motor vehicle, as that term is defined in 49 C.F.R. Sec. 383.5.

Both a CNC and a CNCO are excluded from the definition of both a common carrier and a household good carrier, but a CNCO is added to the definition of motor carrier.

A CNCO is required to obtain a permit from the UTC, and the UTC is required to issue a permit to any qualified applicant that meets certain standards. Vehicles operated by a CNCO under a permit issued by the UTC must display the name of its associated CNC. A CNCO is added to the list of entities for which a person must hold a permit in order to advertise for the transportation of property for compensation.

The UTC is required to regulate CNCs in a manner similar to the regulation of forwarders and brokers for the transportation of property in intrastate commerce.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.