BILL REQ. #: H-0574.2
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/19/11. Referred to Committee on Labor & Workforce Development.
AN ACT Relating to for hire vehicles and for hire vehicle operators; amending RCW 81.72.210; adding new sections to chapter 51.08 RCW; adding new sections to chapter 51.12 RCW; adding a new section to chapter 51.16 RCW; adding a new section to chapter 46.72 RCW; adding a new section to chapter 81.72 RCW; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 51.08 RCW
to read as follows:
The legislature finds that taxicab, limousine, and other for hire
vehicle operators are at significant risk of injury due to work-related
accidents or crimes such as robbery that may not be covered by standard
vehicle insurance policies. Since almost all taxicab, limousine, and
other for hire vehicle business operations are independent small
business franchises, their owners or operators may opt out of
industrial insurance coverage without full consideration for the risk
of financial exposure to themselves or to their businesses. As a
result, health care may be provided to them at public expense or not at
all, and erroneous claims may be made by health care providers for
insurance coverage, against the state department of labor and
industries, private businesses, or the taxicab associations in which
certain municipalities require participation. Most for hire vehicle
operators do not enjoy the benefit of the broad public policy embodied
in this title that mandates industrial insurance protection for
workers. The legislature therefore declares that all taxicab,
limousine, and other for hire vehicle businesses, all "direct industry
service providers" as defined in this act, and "for hire vehicle
operators" are subject to mandatory industrial insurance coverage under
this title.
NEW SECTION. Sec. 2 A new section is added to chapter 51.08 RCW
to read as follows:
"Direct industry service provider" means a business that provides
services to, and whose revenues are derived substantially from, a
single industry, and who maintains contractual relationships for goods
or services with independent contractors within that same industry.
The independent contractor may deliver personal services such as the
transportation of persons to the direct industry service provider
itself or to third parties. Direct industry service providers include,
but are not limited to, vehicle dispatch services and the lessors of
vehicles specifically licensed for operation within a single industry.
NEW SECTION. Sec. 3 A new section is added to chapter 51.12 RCW
to read as follows:
(1) Any business that is licensed pursuant to or operating a for
hire vehicle under chapter 46.72, 46.72A, or 81.72 RCW and that is
operating such vehicle as a for hire operator is within the mandatory
coverage of this title.
(2) Any direct industry service provider that is leasing as the
owner of such vehicle, or on the owner's behalf, a for hire vehicle to
an urban transportation business is within the mandatory coverage of
this title.
(3) For the purposes of this section:
(a) "For hire vehicle" and "for hire operator" have the same
meaning as provided in RCW 46.72.010.
(b) "Direct industry service provider" has the same meaning as
provided in section 2 of this act.
NEW SECTION. Sec. 4 A new section is added to chapter 51.16 RCW
to read as follows:
For the purposes of sections 3, 6, and 7 of this act, the
department must compute industrial insurance premium rates for: (1)
Any business operating for hire, limousine, or taxicab vehicles; and
(2) any direct industry service provider, leasing licensed vehicles to
a business operating such vehicles, on a per vehicle basis.
NEW SECTION. Sec. 5 A new section is added to chapter 46.72 RCW
to read as follows:
(1) A for hire vehicle license issued pursuant to this chapter or
chapter 46.72A or 81.72 RCW must be suspended or revoked, and may not
be renewed or ownership in such vehicle transferred, in the event of
failure to file report of, and pay, the public utility tax imposed on
an urban transportation business under RCW 82.16.020 or mandatory for
hire vehicle operator industrial insurance premium as charged by the
department of labor and industries under section 4 of this act.
(2)(a) A for hire vehicle and its operator must have evidence of
payment in good standing with the department of the for hire vehicle
operator industrial insurance premium, whenever the for hire vehicle is
operated on public streets and highways for compensation.
(b) Failure to produce evidence of payment of the for hire vehicle
insurance premium upon demand by a law enforcement officer or other
government agent acting under the authority of this chapter or chapter
46.72A or 81.72 RCW is a civil infraction punishable by a fine of not
more than two hundred fifty dollars per infraction separately upon both
the for hire vehicle owner and the for hire vehicle operator if they
are not one and the same.
(3) For hire vehicle license suspension or revocation and the
administration thereof for failure to pay mandatory industrial
insurance premiums must be at the direction and expense of the
department of labor and industries.
(4) The department of labor and industries and the department of
licensing may adopt rules to implement this section.
NEW SECTION. Sec. 6 A new section is added to chapter 51.12 RCW
to read as follows:
(1) In order to control costs related to the self-monitoring of
industrial insurance claims by independently operated for hire vehicle
and taxicab businesses, the department may empower a panel of
individuals with for hire vehicle and taxicab transportation industry
experience and expertise to advise the department.
(2) The owner of any for hire vehicle subject to mandatory
industrial insurance pursuant to this act is eligible for inclusion in
a retrospective rating program authorized and established pursuant to
chapter 51.18 RCW. However, the entity sponsoring such program may
have been in existence less than four years provided that it can
reasonably demonstrate capability to the department.
NEW SECTION. Sec. 7 A new section is added to chapter 81.72 RCW
to read as follows:
(1) Any city, county, or port district setting the rates charged
for taxicab service under this chapter, or for hire vehicles or
limousines operating under the authority of chapter 46.72 or 46.72A RCW
or a taxicab under chapter 46.72 RCW, must: (a) Consider the impact of
mandatory industrial insurance on such businesses and direct industry
service providers in the calculation and setting of rates; and (b)
adjust rates to offset any increased cost to any such transportation
business or direct industry service provider from mandatory industrial
or other insurance coverage.
(2) Rate-setting authority under this chapter is limited to the
setting of consumer rates for the provision of transportation services.
Sec. 8 RCW 81.72.210 and 1984 c 126 s 2 are each amended to read
as follows:
To protect the public health, safety, and welfare, cities, towns,
counties, and port districts of the state may license, control, and
regulate privately operated taxicab transportation services operating
within their respective jurisdictions. The power to regulate includes:
(1) Regulating entry into the business of providing taxicab
transportation services;
(2) Requiring a license to be purchased as a condition of operating
a taxicab and the right to revoke, cancel, or refuse to reissue a
license for failure to comply with regulatory requirements;
(3) Controlling the consumer rates charged for providing taxicab
transportation service and the manner in which consumer rates are
calculated and collected, including the establishment of zones as the
basis for consumer rates;
(4) Regulating the routes of taxicabs, including restricting access
to airports;
(5) Establishing safety, equipment, and insurance requirements; and
(6) Any other requirements adopted to ensure safe and reliable
taxicab service.