HOUSE BILL REPORT

HB 2989

As Amended by the Senate

BYRepresentatives Peery and R. Fisher 

Delaying required registration for freight brokers and forwarders.

House Committe on Transportation

Majority Report:  Do pass.  (23)

      Signed by Representatives R. Fisher, Chair; Baugher, Vice Chair, Eastern Washington; R. Meyers, Vice Chair, Western Washington; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Basich, Bennett, Cantwell, Cooper, Day, G. Fisher, Forner, Gallagher, Hankins, Heavey, Jones, Kremen, Nelson, Prentice, D. Sommers, Todd, S. Wilson and Zellinsky.

House Staff:Mary McLaughlin (786-7309)

AS PASSED HOUSE FEBRUARY 12, 1990

BACKGROUND:

Last year legislation was enacted that required interstate brokers and forwarders conducting business in Washington state to (1) register with the Utilities & Transportation Commission (UTC), (2) pay a one-time $25 registration fee, and (3) post a $10,000 surety bond.  Brokers registered with the Interstate Commerce Commission (ICC) may present a copy of their ICC-required surety bond as proof of security.

At the UTC hearing to adopt WAC rules, several interstate brokers voiced their concerns with the registration and bonding provisions, reasoning that the proposed rules were a burden to interstate commerce, and that the bonding and registration requirements applied to all brokers and forwarders, not just those domiciled in the state.  The brokers requested that the UTC delay implementation of the rules until after the 1990 legislative session.  This would give the brokers and the trucking industry time to reach a compromise that could be presented for legislative action.

SUMMARY:

The implementation of the Utilities & Transportation Commission's bonding and registration requirements for interstate brokers and forwarders is delayed until July 1, 1991.

EFFECT OF SENATE AMENDMENTS:  The amendment clarifies that the implementation date for both bonding and registration is delayed until July 1, 1991.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jim Nicholson, Best Ways Brokerage; and Marty Sangster, Washington Trucking Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The delay will allow the broker's association and the trucking industry to reach a compromise that will satisfy the concerns of both parties.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 98