FINAL BILL REPORT

HB 1282

                                   C 60 L 89

BYRepresentatives Walk, Schmidt and Baugher

Defining motor freight forwarders and brokers.

House Committe on Transportation

Senate Committee on Transportation

SYNOPSIS AS ENACTED

BACKGROUND:

Until 1988, the Utilities & Transportation Commission (UTC) regulated an intrastate freight broker or forwarder under the definition of "common or contract carrier."  A broker arranges for transportation for compensation and a forwarder consolidates freight for a fee.  Five intrastate broker permits are on file with the UTC.  These brokers are required to pay a one-time $150 application fee and post a surety bond.

Legislation was enacted in 1988 that created a separate definition for broker, increased the surety bond for intrastate brokers from $1,000 to a minimum of $5,000, and required interstate brokers to post a bond.  The new language changed the definition from a common or contract carrier providing transportation of property to a person arranging for transportation by two or more inter- or intrastate carriers.  During the process of developing new WAC rules to implement this legislation, the Attorney General informed the commission that the elimination of "common or contract carrier" from the definition effectively deregulated intrastate brokers, and therefore, the commission's applicable WAC rules should be repealed.  This was not the intent of the legislation.

Interstate brokers and forwarders are currently required to register with the commission, pay a one-time $25 registration fee and post a bond.  There is no provision for the commission to deny or cancel the registration of the interstate broker or forwarder who fails to maintain a surety bond.

SUMMARY:

The former definition of a freight broker and forwarder is restored; i.e., brokers and forwarders are included in the definition of "common or contract carrier."  Restoration of this language clearly gives the UTC the authority to continue regulation of intrastate brokers and forwarders.

The commission may deny or cancel the registration of an interstate broker or forwarder for failure to maintain a bond.

VOTES ON FINAL PASSAGE:

      House 87   0

      Senate    45     0

EFFECTIVE:July 23, 1989