SENATE BILL REPORT

SB 5451

BYSenators Hansen, Patterson and Garrett

Changing requirements for operation of passenger charter carriers.

Senate Committee on Transportation

Senate Hearing Date(s):February 25, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Nelson, Patterson, Sellar, Smitherman, West.

Senate Staff:Vicki Fabre (786-7313)

                  March 9, 1987

AS PASSED SENATE, FEBRUARY 8, 1988

BACKGROUND:

The Utilities and Transportation Commission (UTC) regulates Washington's intrastate passenger charter industry with regard to entry, fares, safety and insurance requirements. Current statutory provisions do not reflect industry practice.  By WAC rule, the Commission defines a charter party served by a charter carrier as a group of persons who, pursuant to 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 WTC to regulate safety matters is expanded to include interstate and foreign carriers.  The Utilities and Transportation 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 also 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 current charter bus insurance provisions established by WAC 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.

Fiscal Note:      available

Senate Committee - Testified: Steve McLellan, UTC; Joe Keefe, UTC