SENATE BILL REPORT

                  SSB 5822

               As Passed Senate, March 15, 1999

Title:  An act relating to the issuance of certificates of public convenience and necessity to auto transportation companies.

Brief Description:  Requiring agreements between public transportation benefit areas and auto transportation companies operating therein.

Sponsors:  Senate Committee on Transportation (originally sponsored by Senators Haugen, Deccio, Gardner, Patterson, Eide, McCaslin, Costa and Long).

Brief History:

Committee Activity:  Transportation:  2/17/99, 3/5/99 [DPS].

Passed Senate, 3/15/99, 32-12.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5822 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Gardner, Vice Chair; Goings, Vice Chair; Eide, Horn, Jacobsen, Johnson, Patterson, Prentice, Sheahan, T. Sheldon, Shin and Swecker.

Staff:  Gene Baxstrom (786-7303)

Background:  Companies which provide passenger service for compensation between fixed termini or over a regular route are required to have a certificate of public convenience and necessity issued by the Utilities and Transportation Commission.  Such certificates may be sold, transferred or leased.

There are currently 18 Public Transportation Benefit Areas providing public transportation services within the state.  These public transportation jurisdictions, when formed, or when service areas are expanded, are authorized to acquire the operating certificates of auto transportation companies providing service within the transit benefit area and which have been operating at least one year, or they may permit the auto transportation companies to continue to operate.  If requested to do so by the certificate holder, the transit agency must acquire the certificate holders assets.  Except for provisions when transit benefit areas grant permission for others to operate, the benefit areas have exclusive rights to provide public transportation services within their service area.

Summary of Bill:  Until April 1, 2000, the Utilities and Transportation Commission may not issue any certificates of public convenience and necessity in areas where a public transportation system has been formed.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  The UTC grants new certificates to allow new service where transit agencies now operate.  To implement services between public transportation benefit areas, the certificate holder may then have to be compensated for the certificate.

Testimony Against:  None.

Testified:  PRO:  Senator Haugen, prime sponsor; Martha Rose, Island Transit; Joyce Olson, Community Transit.