SENATE BILL REPORT

SB 5812

BYSenators McCaslin, Warnke, Lee and Johnson

Prohibiting local regulation of public liability insurance for motor vehicle common carriers to the state.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 23, 1989; February 27, 1989

Majority Report:  That Substitute Senate Bill No. 5812 be substituted therefor, and the substitute bill do pass.

      Signed by McCaslin, Chairman; Thorsness, Vice Chairman; Sutherland.

Senate Staff:Desley Brooks (786-7443); Sam Thompson (786-7754)

                  February 28, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 27, 1989

BACKGROUND:

All motor freight common carriers operating in intrastate commerce are required to file and maintain liability insurance with the Utilities and Transportation Commission.  The levels of insurance are the same as those used by the U.S. Department of Transportation for interstate carriers.

Cities and counties may also impose liability insurance requirements on common carriers.  For example, Pierce County by practice requires mobile home, trailer home, construction and farm equipment operators to obtain an annual over-dimensional permit and file proof of liability insurance before transporting over-dimensional loads on county roads.

It has been suggested that an unreasonable financial and administrative burden would be placed on motor vehicle common carriers if each city and/or county applied its own separate regulation for liability insurance requirements.

SUMMARY:

State government has exclusive authority over liability insurance requirements for common carriers.

EFFECT OF PROPOSED SUBSTITUTE:

State government shall have exclusive authority over liability insurance requirements for common and contract carriers.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Ron Clarke, Washington Manufactured Housing Association (pro); Karen Goon, Pierce County Public Works (con)