SENATE BILL REPORT

SB 5184

BYSenators Smitherman, Lee and Talmadge

Regulating limousine operators.

Senate Committee on Transportation

Senate Hearing Date(s):February 10, 1989

Majority Report:  That Substitute Senate Bill No. 5184 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Conner, Hansen, McMullen, Madsen, Murray, Sellar, Thorsness.

Senate Staff:Mary McLaughlin (786-7309)

                  February 10, 1989

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 10, 1989

BACKGROUND:

A limousine is used to transport a group of persons with a common purpose, under contract, to a specific destination either agreed upon in advance or modified by the chartered group after leaving the place of origin.  A limousine with a passenger seating capacity of seven or more is regulated as a passenger charter bus by the Utilities and Transportation Commission (UTC). These limousines are subject to UTC entry (Fit, Willing and Able), proof of insurance, safety of operations and payment of the annual regulatory fees.  Limousines are not subject to economic rate regulation.

If the limousine has a passenger seating capacity of less than seven, it is considered a taxi cab and is subject to local ordinance.  Because local ordinances governing taxi cabs vary, it is sometimes difficult for a limousine to comply with all local requirements, particularly when moving from county to county.

SUMMARY:

Under a new chapter, limousines with a passenger seating capacity of four to sixteen are regulated by the Utilities and Transportation Commission (UTC) in a manner similar to passenger charter services.  Limousines are subject to UTC entry (Fit, Willing and Able), but rate regulation is not imposed. 

The intrastate application fee or transfer fee is a maximum of $200 (the commission currently charges $150 for passenger charters).  Intrastate limousine services are subject to the commission's chauffeur qualifications, safety and insurance provisions, and payment of the annual regulatory fee.  The fee cannot exceed the cost of supervising and regulating limousines.

Interstate and foreign limousine carriers with Interstate Commerce Commission operating or exempt authority are required to register with the commission if operating in Washington.  A one- time $25 registration fee is imposed.  These carriers are also subject to the annual regulatory fee, and the UTC's safety and insurance provisions.

The liability insurance provisions are:  (1) $100,000 for personal injury to one person, (2) $500,000 for a vehicle with a passenger seating capacity of 16 or less, (3) $50,000 for property damage to one person, and (4) $600,000 for combined bodily injury and property damage liability insurance.  An interstate limousine service carrier that qualifies as a self- insurer with the ICC is exempt from the UTC insurance provisions as long as the ICC qualification remains in effect.

Local ordinances relating to limousine service must be consistent with state law.  However, local governments may enact laws that require limousines to pay business and occupation taxes.

These regulations do not apply to taxicabs, private passenger vehicles and passenger charters.

EFFECT OF PROPOSED SUBSTITUTE:

The provisions relating to the registration of interstate and foreign limousines are clarified.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 31, 1989

Senate Committee - Testified: Senator Smitherman, prime sponsor; Doug Mykol, President, Leonard Zevenbergen, Vice President, Limousine Association of Washington; Steve McLellan, UTC