FINAL BILL REPORT

SB 5451

                                   C 30 L 88

BYSenators Hansen, Patterson and Garrett

Changing requirements for operation of passenger charter carriers.

Senate Committee on Transportation

House Committe on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

The Utilities and Transportation Commission (UTC) regulates entry, fares, safety and insurance requirements of the intrastate passenger charter industry.  Statutory provisions do not reflect industry practice.  By rule, the commission defines a charter party served by a charter carrier as a group of persons who, with a common purpose and under a single contract, have acquired exclusive use of a passenger-carrying motor vehicle to travel as a group to a specific destination.

Although the commission establishes tariffs for passenger charter carriers, charters do not provide regularly-scheduled service on fixed routes.  The fare is based on the rental cost of the vehicle rather than individual rates.  The commission also applies the public convenience and necessity test for entry into the field.  The competitive nature of the current market, however, warrants relaxation of the entry standard.

The commission has no jurisdiction over interstate charters regulated by the Interstate Commerce Commission (ICC).  Specific statutory authorization is needed to give the UTC jurisdiction over safety.

SUMMARY:

The authority of the Utilities and Transportation Committee (UTC) to regulate safety matters is expanded to include interstate and foreign carriers.  The commission's authority to regulate tariffs is removed.

The commission is authorized to regulate interstate charters with respect to driver qualifications and safety.  Interstate carriers with Interstate Commerce Commission (ICC) authority are required to register with the UTC if operated in the State of Washington.  Interstate charters exempt from ICC regulation (charters under the control of the U.S. Secretary of the Interior that are used to transport passengers in and out of the national parks; school buses, hotel buses, etc.) are required to register.

A certificate is issued to an applicant who can prove that he or she is fit, willing and able to provide the service.  The applicant must establish safety fitness and show proof of public liability and property damage insurance prior to issuance of a certificate.  The charter bus insurance provisions established by rule are made statutory.  An interstate charter that qualifies as a self-insurer with the ICC is exempt from the UTC insurance provisions so long as the policy remains in effect.

The intrastate application fee for a certificate of transfer is not to exceed $200.  Interstate charters are subject to a one-time $25 registration fee.  The annual regulatory fee is changed from a percentage of the annual gross operating revenue to an annual per vehicle fee established by rule.  The annual regulatory fee cannot exceed the cost of supervising and regulating intra and interstate charter companies.  The $25 annual intrastate certificate renewal fee is repealed.  The issuance of a temporary permit is discontinued.

VOTES ON FINAL PASSAGE:

      Senate    45     0

      House 98   0

EFFECTIVE:June 9, 1988