H-222                _______________________________________________

                                                    HOUSE BILL NO. 708

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Patrick and Wang

Read first time 2/6/87 and referred to Committee on Transportation.

AN ACT Relating to registration of operators of vehicles for hire; amending RCW 46.72.010, 46.72.020, 46.72.030, and 46.72.060; adding new sections to chapter 46.72 RCW; and repealing RCW 46.72.050, 46.72.070, 46.72.080, and 46.72.120.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 46.72.010, chapter 12, Laws of 1961 as amended by section 14, chapter 111, Laws of 1979 and RCW 46.72.010 are each amended to read as follows:

          ((When used in this chapter)) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

          (1) ((The term)) "For hire vehicle" includes all vehicles used for the transportation of passengers for compensation, except auto stages as defined in RCW 46.04.050, school buses operating exclusively under a contract to a school district, ((and)) ride-sharing vehicles, and passenger charter carriers as defined in chapter 81.70 RCW;

          (2) ((The term)) "For hire operator" means and includes any ((person, concern, or entity)) individual, firm, association, partnership, or corporation engaged in the business of transportation of passengers for compensation or the promise thereof in for hire vehicles ;

(3) "Director" means the director of licensing or the director's designee.

        Sec. 2.  Section 46.72.020, chapter 12, Laws of 1961 as last amended by section 188, chapter 158, Laws of 1979 and RCW 46.72.020 are each amended to read as follows:

          No for hire operator shall cause operation of a for hire vehicle upon any highway of this state without first obtaining a ((permit)) certificate of registration as a for hire operator from the director ((of licensing)).  An application for ((a permit)) registration shall be ((made on forms)) on a form provided by the director and shall be verified on oath by the applicant.  The application shall include:  (1) The name and address of the owner or owners, and if a corporation, the names and addresses of the principal officers thereof, and if a partnership, the names and addresses of the partners; (2) the city, town, or locality in which ((any)) the for hire vehicles will normally be operated; (3) the name ((and motor number of any vehicle to)) under which the for hire vehicles will be operated; (4) the endorsement of ((a)) the city or local government agency official authorizing ((an operator under a law or ordinance requiring a license)) the for hire operator business in that jurisdiction pursuant to an existing ordinance; (5) a copy of a liability insurance policy or a certificate of insurance used to bind insurance coverage temporarily pending the issuance of the policy promising insurance as set forth in section 5 of this 1987 act for the original registration period, or a surety bond as set forth in RCW 46.72.040;  (6) the applicant's business form and place of organization; (7) in the event the applicant is doing business under a tradename, a copy of the certificate of tradename as filed with the department of licensing as provided in chapter 19.30 RCW; and (((5))) (8) such other information as the director may require.

        Sec. 3.  Section 46.72.030, chapter 12, Laws of 1961 as amended by section 81, chapter 32, Laws of 1967 and RCW 46.72.030 are each amended to read as follows:

          ((Application for a permit shall be forwarded to the director with a fee of five dollars.))    Applications for certificates of registration shall be submitted to the director together with a registration fee as prescribed by the director by rule.  Upon receipt of ((such)) an application and fee, the director shall, if such application be in proper form, issue a ((permit)) certificate of registration authorizing the applicant to ((operate for hire vehicles upon the highways of)) engage in the business of a for hire operator in this state until ((such)) the owner ceases to do business ((as such)), or until the ((permit)) certificate expires, or is canceled, suspended, or revoked.  ((Such permit)) The certificate shall be displayed in a conspicuous place in the principal place of business of the owner.

NEW SECTION. Sec. 4.     Each for hire operator's certificate of registration shall expire twelve months from the date of issue which shall also be the annual renewal date.  Registration may be renewed by paying the annual registration fee for the next succeeding twelve-month period and providing a copy of a liability insurance policy or a certificate of insurance or a surety bond as prescribed by the director covering the new registration period.

NEW SECTION. Sec. 5.     In lieu of the surety bond as provided in this chapter, at the time of filing an application as a for hire operator, or before any renewal or reinstatement thereof, the applicant shall satisfy the director that he or she has obtained as evidence of financial responsibility a public liability insurance policy executed by an insurance company licensed and authorized to write such insurance policies in the state of Washington insuring the applicant against property damage and personal liability to the public.  The policy shall provide aggregate coverage for each for hire vehicle operated by the for hire operator in the minimum amount of one hundred thousand dollars for any recovery for death or personal injury by one person, and three hundred thousand dollars for all persons killed or receiving personal injury by reason of one act of negligence, and twenty-five thousand dollars for damage to property of any person other than the insured, and to pay all damages which may be sustained up to the maximum amount of the policy by any person injured by reason of any careless, negligent, or unlawful act on the part of the insured, agents, or employees of the insured in the conduct of business or in the operation of any motor vehicle used in transporting passengers pursuant to this chapter.  An insurance policy may provide for a deductible from claims as between the insured and the insurer; however, the insurer shall be liable to the third party for the total amount of coverages up to the policy limits.  The insurance policy may be canceled by the insurer upon delivery of thirty days' written notice to the director and to the for hire operator.

          The liability insurance policy required by this section shall be kept in full force and effect as a condition of the for hire operator's authority to transport passengers in this state, and the for hire operator shall furnish the director with satisfactory evidence thereof upon request.

NEW SECTION. Sec. 6.     In the event of cancellation of the insurance policy, a new policy or certificate of insurance is required to be filed with the director.  Failure to provide the director with a copy of the new policy or certificate of insurance before the old policy's cancellation is effective will result in automatic cancellation of the for hire operator's certificate of registration as of the date and time the old policy is canceled.

NEW SECTION. Sec. 7.     Notice in writing shall be given to the director and to the insurer providing coverage under section 5 of this act of any change of business location.  The for hire operator shall surrender the original registration, provide an endorsement from the city or local government agency authorizing the business operation from the new location, and pay a transfer fee.  The director shall issue a new certificate covering the new location if the application is in proper form and if the applicant is not ineligible for such a certificate as the result of a previous disciplinary action.

NEW SECTION. Sec. 8.     The attorney general and county prosecuting attorneys shall be responsible for the enforcement of this chapter.

NEW SECTION. Sec. 9.     In addition to any other duties imposed by law, the director has the following powers and duties:

          (1) To establish by rule all registration, renewal, and replacement fees in accordance with RCW 43.24.086;

          (2) To adopt rules necessary to implement this chapter in accordance with chapter 34.04 RCW;

          (3) To conduct all disciplinary proceedings and impose sanctions for violations of this chapter or any rules adopted thereunder; and

          (4) To investigate violations of and enforce all laws, rules, and regulations relative to this chapter.

        Sec. 10.  Section 46.72.060, chapter 12, Laws of 1961 and RCW 46.72.060 are each amended to read as follows:

          Every person having a cause of action ((for damages)) against ((any person, firm, or corporation receiving a permit)) a for hire operator certificated under the provisions of this chapter, for injury, damages or wrongful death caused by any careless, negligent or unlawful act of ((any such person, firm, or corporation or his, their,)) the for hire operator or its agents or employees in conducting or carrying on said business or in operating any ((motor propelled)) for hire vehicle ((for the carrying and transporting of passengers over and along any public street, road or highway)) shall have a cause of action against the principal and surety upon the bond ((or)), the for hire operator, and the insurance company ((and the insured)) providing insurance coverage pursuant to section 5 of this 1987 act for all damages sustained((, and)).  In any such action the full amount of damages sustained may be recovered against the principal, but the recovery against the surety shall be limited to the amount of the bond.

NEW SECTION. Sec. 11.    Sections 4 through 9 of this act are each added to chapter 46.72 RCW.

NEW SECTION. Sec. 12.    If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 13.  The following acts or parts of acts are each repealed:

                   (1) Section 46.72.050, chapter 12, Laws of 1961, section 83, chapter 32, Laws of 1967, section 2, chapter 15, Laws of 1973 and RCW 46.72.050;

          (2) Section 46.72.070, chapter 12, Laws of 1961, section 84, chapter 32, Laws of 1967 and RCW 46.72.070;

          (3) Section 46.72.080, chapter 12, Laws of 1961, section 85, chapter 32, Laws of 1967 and RCW 46.72.080; and

          (4) Section 46.72.120, chapter 12, Laws of 1961, section 88, chapter 32, Laws of 1967 and RCW 46.72.120.