HOUSE BILL REPORT

SSB 5812

BYSenate Committee on Governmental Operations (originally sponsored by Senators McCaslin, Warnke, Lee and Johnson)

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

House Committe on Transportation

Majority Report:  Do pass with amendments.  (18)

      Signed by Representatives Walk, Chair; Betrozoff, Cooper, Day, G. Fisher, R. Fisher, Haugen, Heavey, Jones, Kremen, R. Meyers, Nelson, Prentice, Smith, D. Sommers, Todd, Walker and Zellinsky.

House Staff:Mary McLaughlin (786-7309)

AS REPORTED BY COMMITTEE ON TRANSPORTATION MARCH 24, 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:

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

AMENDED BILL COMPARED TO SUBSTITUTE:  Technical changes are made for consistency.  The UTC's insurance authority is clarified.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Ron Clarke, Washington Manufactured Housing Association; Dick Dorsett, Pierce County.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This provision relieves common carriers from filing dual insurance policies.

House Committee - Testimony Against:      None Presented.