Original Notice.

     Preproposal statement of inquiry was filed as WSR 05-20-093 and 05-23-175.

     Title of Rule and Other Identifying Information: This rule making would consider amending sections of chapter 480-31 WAC, Private, nonprofit transportation providers and chapter 480-70 WAC, Solid waste collection companies, to reflect recent changes to chapters 81.66, 81.77, and 81.84 RCW, relating to notice and opportunity for hearing prior to suspension or revocation of a certificate, and in conjunction with a request for a certificate to operate in a territory served by an existing certificate holder and to consider adding new language or sections to implement the statutory amendments.

     Hearing Location(s): Commission Hearing Room 206, Second Floor, Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, on February 22, 2006, at 2:30 p.m.

     Date of Intended Adoption: February 22, 2006.

     Submit Written Comments to: Carole J. Washburn, Secretary, P.O. Box 47250, Olympia, WA 98504, e-mail records@wutc.wa.gov, fax (360) 586-1150, by February 8, 2006. Please include Docket No. UT-040015 in your communication.

     Assistance for Persons with Disabilities: Contact Mary DeYoung by Monday, February 17, 2006, TTY (360) 586-8203 or (360) 664-1133.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the proposal is to codify SSB 5105 that states the commission is no longer required to hold a hearing before it can suspend or revoke a certificate, or consider a request for a certificate to operate in a territory served by an existing certificate holder. Instead, the commission is only required to provide notice and an opportunity for a hearing. It would also make minor corrections and make grammar changes.

     Affected WACs are:

     WAC 480-31-050 Certificates, amend to remove language in subsection (7) and add to new section WAC 480-31-052.

     WAC 480-31-052 Suspending and canceling certificates, new section codifies requirements for suspending and canceling certificates.

     WAC 480-31-054 Certificates, reinstatement, new section codifies requirements for reinstating certificates.

     WAC 480-31-070 Insurance, grammar changes and amend to remove language in subsection (5) and added to new section WAC 480-31-052.

     WAC 480-31-080 Fees and annual report, grammar changes and amend to remove unnecessary language.

     WAC 480-70-161 Suspending and canceling certificates, amend to add language from deleted WAC 480-70-166.

     WAC 480-70-166 Canceling certificates, repeal to add requirement language in WAC 480-70-161 to make consistent with chapter 480-31 WAC.

     Reasons Supporting Proposal: To put into rule the statutory language amended in SSB 5105.

     Statutory Authority for Adoption: RCW 80.01.040 and

80.04.160.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Washington utilities and transportation commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Sharyn Bate, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1295; Implementation and Enforcement: Carole J. Washburn, Secretary, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1174.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed corrections and changes to rules will not result in or impose an increase in costs. Because there will not be any increase in costs resulting from the proposed rule changes, a small business economic impact statement is not required under RCW 19.85.030(1).

     A cost-benefit analysis is not required under RCW 34.05.328. The commission is not an agency to which RCW 34.05.328 applies. The proposed rule is not a significant legislative rule of the sort referenced in RCW 34.05.328(5).

January 18, 2006

Carole J. Washburn

Executive Secretary

OTS-8586.1

AMENDATORY SECTION(Amending Docket No. A-010827, General Order No. R-491, filed 9/28/01, effective 10/29/01)

WAC 480-31-050   Certificates.   (1) The commission will issue a certificate to any corporation which files a completed application, as provided by the commission, which provides:

     (a) Satisfactory proof of its status as a private, nonprofit corporation;

     (b) Information sufficient to determine the particular service to be provided;

     (c) Satisfactory proof of insurance or surety bond, in accordance with WAC 480-31-070 (Insurance);

     (d) The number and type of vehicles to be operated, together with satisfactory proof that the vehicles are adequate for the proposed service, that the vehicles are or will be licensed in compliance with the laws of the state, and that drivers of such vehicles will be adequately trained and qualified.

     (2) Applications for certificates must be on forms to be furnished by the commission, giving all information requested and accompanied by a fifty dollar application fee.

     (3) Remittances will be made by money order, bank draft, personal check or certified check, made payable to the Washington utilities and transportation commission.

     (4) No provider may operate, establish, or begin operation of any business for the purpose of transporting persons with special transportation needs on the public highways of this state, without first having obtained from the commission a certificate.

     (5) No certificate will be issued to persons operating under a trade name, unless a certificate of said trade name is filed in accordance with the provisions of RCW 19.80.010, and a copy thereof filed with the commission.

     (6) Each vehicle operated by a provider must carry a copy of the company's certificate, and will be subject at all times to inspection by an authorized representative of the commission.

     (7) ((Any certificate to operate as a private, nonprofit transportation provider obtained by any false affidavit or representation will be subject to cancellation by the commission.

     (8))) No certificate will be sold, assigned, leased, acquired, or transferred except upon authorization of the commission.

[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.160, and 34.05.310. 01-20-061 (Docket No. A-010827, General Order No. R-491), § 480-31-050, filed 9/28/01, effective 10/29/01. Statutory Authority: RCW 80.01.040 and chapter 80.01 RCW. 97-08-037 (Order R-440, Docket No. TC 961102), § 480-31-050, filed 3/27/97, effective 4/27/97.]

     (a) Failure to maintain evidence of required liability insurance coverage for all areas of a private, nonprofit transportation provider's operations;

     (b) Failure to file an annual report or pay required regulatory fees;

     (c) Failure or refusal to comply with operating standards that protect the public health, safety, or welfare;

     (d) Allowing others to operate under a provider's certificated authority without having first obtained commission approval;

     (e) Operating in a manner that violates the rights of customers and/or constitutes an unfair or deceptive business practice; or

     (f) Repeated failure or refusal to comply with laws and rules pertaining to operations of private, nonprofit transportation providers.

     (2) Cause for cancellation. The commission may cancel a certificate for cause. Cause includes, but is not limited to:

     (a) Operating without proper insurance;

     (b) Failure to file an annual report or pay required fees;

     (c) Failure to correct within the time specified in a suspension order all conditions listed in the suspension order that led to the certificate's suspension;

     (d) Continued violations of laws and rules affecting the public health, safety, or welfare when the commission has reason to believe the private, nonprofit transportation provider will not comply with those laws and rules following a specified period of suspension;

     (e) Failure to supply requested information needed by the commission in the performance of its regulatory functions; or

     (f) Submission of false, misleading or inaccurate information.

     (3) Notice of pending suspension and cancellation. When the commission believes cause exists to suspend or cancel a certificate, it will issue a notice to the private, nonprofit transportation provider of the commission's intention to suspend or cancel the authority.

     (4) Contest of suspension and cancellation. A private, nonprofit transportation provider may contest the pending suspension and/or cancellation of its certificate by requesting a hearing or brief adjudicative proceeding within ten days following the date of the notice.

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     (a) Corrects all conditions leading to the cancellation;

     (b) Provides a written statement explaining the circumstances surrounding the cancellation and commits that it is unlikely to recur; and

     (c) Files an application to reinstate authority with the proper application fee.

     (2) The commission may reinstate a certificate suspended under the provisions of WAC 480-31-052 (Suspending and canceling certificates) if the provider satisfies the terms of the suspension and all conditions leading to the suspension are corrected.

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     Five hundred thousand dollars combined single limit for vehicles with a passenger capacity of less than sixteen passengers, including the driver;

     One million dollars combined single limit for vehicles with a passenger capacity of sixteen or more passengers, including the driver.

     ((Failure to file and keep such insurance or surety bond in full force and effect will be cause for dismissal of an application or cancellation of a certificate.))

     (2) A provider's insurance agency or company must submit evidence of insurance ((must be submitted)) on a "uniform motor carrier bodily injury and property damage liability certificate of insurance" (form E).

     (3) All liability and property damage insurance policies issued to providers must carry a "uniform motor carrier bodily injury and property damage liability endorsement."

     (4) Insurance termination. All insurance policies issued must provide that the same will continue in full force and effect until canceled by at least thirty days' written notice served on the insured and the commission by the insurance company. The thirty-day notice will commence to run from the date notice is actually received by the commission, except for binders which may be canceled on ten days' written notice.

     A provider's insurance agency or company must submit notice of cancellation or expiration ((must be submitted)) in duplicate on forms prescribed by the commission and must not ((be submitted)) submit the notice more than sixty days before the desired termination date, except binders which may be canceled by ten days' written notice from the insurance agency or company.

     (5) No provider may operate upon the public highways of this state without insurance as required by this section. ((The permit of any provider who fails to maintain evidence on file that its insurance is in current effect will be suspended by operation of law beginning with the time of the failure, until the permit is canceled or the cause of the suspension is cured and the permit is reinstated. The commission will make a good faith effort to notify providers of impending suspension for failure to maintain evidence of insurance and enter a timely order of suspension, but failure to do so will not invalidate the suspension.))

[Statutory Authority: RCW 80.01.040 and chapter 80.01 RCW. 97-08-037 (Order R-440, Docket No. TC 961102), § 480-31-070, filed 3/27/97, effective 4/27/97.]

     (2) At the close of each calendar year, every provider must secure from the commission the proper forms and file with the commission its annual report as soon as possible after the close of the calendar year, but no later than May 1st of the succeeding year. ((Failure to file such report will be sufficient cause for the commission, in its discretion to revoke a certificate.))

[Statutory Authority: RCW 80.01.040 and chapter 80.01 RCW. 97-08-037 (Order R-440, Docket No. TC 961102), § 480-31-080, filed 3/27/97, effective 4/27/97.]

OTS-8587.1

AMENDATORY SECTION(Amending Docket No. TG-990161, General Order No. R-479, filed 3/23/01, effective 4/23/01)

WAC 480-70-161   Suspending and canceling certificates.   (1) Cause for suspension. The commission may suspend a certificate for cause. Cause includes, but is not limited to:

     (a) Failure to maintain evidence of required liability insurance coverage for all areas of a company's operations;

     (b) Failure to file an annual report or pay required regulatory fees;

     (c) Failure to comply with the rates and rules contained in the company's filed tariff;

     (d) Failure or refusal to comply with operating standards that protect the public health, safety or welfare;

     (e) Allowing others to operate under a company's certificated authority without having first obtained commission approval; or

     (f) Operating in a manner that violates the rights of customers and/or constitutes an unfair or deceptive business practice.

     (2) ((Notice of suspension. The commission will issue an order notifying the company of the commission's action to suspend a certificate. Suspension is effective on the date the commission mails the suspension order (service date).

     (3))) Cause for cancellation. The commission may cancel a certificate for cause. Cause includes, but is not limited to:

     (a) Operating without proper insurance;

     (b) Failure to file an annual report or pay required regulatory fees;

     (c) Failure to correct within the time specified in a suspension order all conditions listed in the suspension order that led to the certificate's suspension;

     (d) Continued violations of applicable laws and rules affecting the public health, safety, or welfare when the commission has reason to believe the company will not comply with those laws and rules following a specified period of suspension;

     (e) Repeated failure or refusal to comply with applicable laws and rules pertaining to operations of solid waste collection companies;

     (f) Failure to supply requested information needed by the commission in the performance of its regulatory functions;

     (g) Submission of false, misleading, or inaccurate information; or

     (h) Allowing others to operate under a company's certificated authority without having first obtained commission approval.

     (3) Notice of pending suspension and cancellation. When the commission believes cause exists to suspend or cancel a certificate, it will issue a notice to the company of the commission's intention to suspend or cancel the authority.

     (4) Contest of suspension and cancellation. A company may contest the pending suspension and/or cancellation of its certificate by requesting a hearing or brief adjudicative proceeding within ten days following the date of the notice.

     (((4) Suspension without opportunity for prior hearing. The commission may suspend a certificate without providing an opportunity for prior hearing if there is imminent danger to the public health, safety, or welfare, and there is insufficient time to conduct a hearing. If the commission invokes this suspension clause, the commission will, as soon as is practical, schedule a hearing or brief adjudicative proceeding to determine if the suspension should continue in force and effect.))

[Statutory Authority: RCW 81.04.160, 81.77.030 and 80.01.040. 01-08-012 (Docket No. TG-990161, General Order No. R-479), § 480-70-161, filed 3/23/01, effective 4/23/01.]

     The following section of the Washington Administrative Code is repealed:

WAC 480-70-166

Canceling certificates.