SENATE BILL REPORT

SB 5552

BYSenators Patterson, Hansen, Madsen and Benitz; by request of Utilities and Transportation Commission

Repealing filing requirements for interstate tariffs.

Senate Committee on Transportation

Senate Hearing Date(s):February 10, 1989

Majority Report:  Do pass.

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

Senate Staff:Mary McLaughlin (786-7309)

                  March 9, 1989

AS PASSED SENATE, MARCH 8, 1989

BACKGROUND:

The federal Motor Carrier Act of 1980 effectively ended federal rate regulation of the interstate trucking industry.  While tariffs are still filed with the Interstate Commerce Commission (ICC), liberal discounting is allowed.  Therefore, the filed rate does not reflect what is actually being charged in the market place.  (There is no federal limitation on discounting, but discounts are a maximum of 50-60 percent below the filed rate, with the average being 20 percent.)  Although the Utilities and Transportation Commission (UTC) is required to maintain interstate rate files, the commission does not have the authority to regulate interstate rates.  The UTC currently maintains an interstate transportation tariff file for 300-400 transportation companies, generating approximately 1,900 revised tariff pages monthly.

SUMMARY:

Transportation companies are no longer required to file interstate rates with the Utilities and Transportation Commission (UTC).

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 31, 1989

Senate Committee - Testified: Steve McClellan, UTC