PERMANENT RULES
COMMISSION
1 STATUTORY OR OTHER AUTHORITY: The Washington utilities and transportation commission (commission) takes this action under Notice No. WSR 11-17-140, filed with the code reviser on August 24, 2011. The commission brings this proceeding pursuant to RCW 80.01.040, 81.04.160, and 81.80.075.
2 STATEMENT OF COMPLIANCE: This proceeding complies with the Administrative Procedure Act (chapter 34.05 RCW), the State Register Act (chapter 34.08 RCW), the State Environmental Policy Act of 1971 (chapter 43.21C RCW), and the Regulatory Fairness Act (chapter 19.85 RCW).
3 DATE OF ADOPTION: The commission adopts this rule on the date this order is entered.
4 CONCISE STATEMENT OF PURPOSE AND EFFECT OF THE RULE: RCW 34.05.325(6) requires the commission to prepare and publish a concise explanatory statement about an adopted rule. The statement must identify the commission's reasons for adopting the rule, describe the differences between the version of the proposed rules published in the register and the rules adopted (other than editing changes), summarize the comments received regarding the proposed rule changes, and state the commission's responses to the comments reflecting the commission's consideration of them.
5 The commission amends, adopts, and repeals the rules regarding entry and fitness standards for household good[s] carriers. Entry standards for household goods carriers are minimal. Applicants must properly complete the application, pay the fee, and provide proof of both liability and cargo insurance. Once these simple steps are completed, the utilities and transportation commission (UTC) grants a permit. The existing rules may be insufficient, perhaps granting permits to companies that are unfit to operate. The amended rules will allow qualified companies to operate and, at the same time, protect the public from unscrupulous, unsafe, or unfit household goods moving companies. There are no differences between the text of the proposed rules as published in the register and the text of the rules as adopted. The commission designates the discussion in this order, including appendices, as its concise explanatory statement.
6 REFERENCE TO AFFECTED RULES: This order amends, adopts, or repeals the following sections of the Washington Administrative Code: Amending WAC 480-15-185 Types of household goods permits, 480-15-190 Service territory, 480-15-230 Application fees, and 480-15-340 Commenting on an application for permanent authority; adopting WAC 480-15-186 Application required, 480-15-187 Transfer of an existing permit, 480-15-302 Provisional authority, and 480-15-305 Permanent authority; and repealing WAC 480-15-270 Emergency temporary authority, 480-15-280 Temporary authority, 480-15-285 Rejecting or denying an application for temporary authority, 480-15-290 Granting temporary authority, 480-15-310 Commenting on actions regarding temporary authority, 480-15-320 Canceling a temporary permit, 480-15-330 Permanent authority, and 480-15-335 Exceptions to permanent authority application process.
7 PREPROPOSAL STATEMENT OF INQUIRY AND ACTIONS THEREUNDER: The commission filed a preproposal statement of inquiry (CR-101) on August 24, 2011, at WSR 11-17-140. The statement advised interested persons that the commission was considering initiating a rule making on household goods entry standards. The commission also informed persons of this inquiry by providing notice of the subject and the CR-101 to everyone on the commission's list of persons requesting such information pursuant to RCW 34.05.320(3) and by sending notice to all permitted households good[s] companies. The commission posted the relevant rule-making information on its internet web site at http://www.utc.wa.gov/111493. Pursuant to the notice, the commission received written comments by September 26, 2011, and hosted a stakeholder workshop on October 11, 2011, to discuss possible rule revisions and receive additional comments. On November 10, 2011, the commission issued draft rules to all interested persons with a December 9, 2011, deadline for filing comments.
8 MEETINGS OR WORKSHOPS; ORAL COMMENTS: The commission held one workshop on October 11, 2011, at 9:30 a.m. In addition to staff, the following stakeholders attended the workshop: Jim Tutton, Washington Movers' Conference; Dave Jedlicka, Hansen Brothers Transfer; and Matt Kupka, Ed's Moving and Storage. Mr. Tutton suggested, and Mr. Jedlicka and Mr. Kupka agreed, that the commission should consider additional requirements to entry standards for household goods applicants, as follows:
(1) Increase levels of cargo insurance.
(2) Require companies that transport household items packed and loaded by the customer to hold a household goods permit.
(3) Require companies than [that] move furniture in and out of a home during the course of providing a cleaning service to hold a household goods permit.
(4) Increase application fee amounts.
(5) Clarify that receiving a provisional permit does not automatically entitle the applicant to a permanent permit.
(6) Require each applicant to document its drug and alcohol testing program.
(7) Verify that applicants stating they will use temporary workers and do not need a Washington department of labor and industries account are actually using temporary workers.
(8) Require applicants to have a minimum of $20,000 in assets.
9 NOTICE OF PROPOSED RULE MAKING: The commission filed a notice of proposed rule making (CR-102) on March 7, 2012, at WSR 12-06-077. The commission scheduled this matter for oral comment and adoption under Notice No. WSR 12-06-077 at 1:30 p.m., Thursday, April 26, 2012, in the Commission's Hearing Room, Second Floor, Richard Hemstad Building, 1300 South Evergreen Park Drive S.W., Olympia, WA. The notice provided interested persons the opportunity to submit written comments to the commission.
10 WRITTEN COMMENTS: The commission received written comments in response to the notice of proposed rule making from Jim Tutton, representing the Washington Movers' Conference. A summary of Mr. Tutton's written comments and commission staff responses are contained in Appendix A, shown below, and made part of, this order.
| Rule | Washington Movers' Conference (WMC) Suggested Edits and Comments | Staff Response |
| New section WAC 480-15-302
Provisional authority. The
commission will grant provisional
authority to any applicant that
meets the following criteria: (1) The applicant has properly completed the household goods moving company permit application. (2) The application does not contain any indication of fraud, misrepresentation, or erroneous information. (3) The applicant has provided a copy of a valid Washington state driver's license for each person named in the application associated with the proposed moving company. |
WMC suggests adding the
following two subsections: (1) "If the applicant's application for Provisional Authority shows no account opened with the State Department of Labor and Industries or the State Employment Security Department and the applicant intends to use temporary workers in his/her business, the applicant must certify that it will maintain records for three years that describe the date(s) worked, names of temporary worker(s) and the source from where the temporary worker(s) were obtained." |
(1) Staff recommends the commission reject WMC's suggestion in subsection (1) for two reasons. First, this requirement is not applicable to entry standards. This requirement pertains to the records a company is required to keep once it starts business. Second, adding the suggested language to the rules would impose requirements on new applicants that do not apply to currently permitted companies. A company that obtains a permit after the effective date of the rules would be required to keep records for temporary workers. No currently permitted company has or would have a similar requirement. |
| (4) The applicant has provided
evidence that the applicant
possesses sufficient financial
resources to operate a moving
company. The commission will
accept as evidence the completed
financial statement form included in
the household goods moving
company permit application or the
alternative documents listed on the
financial statement form. (5) The applicant has met the liability and cargo insurance requirements of WAC 480-15-530 and 480-15-550. (6) The applicant has provided |
WMC gives the following reasons
to support this language: • Many new applicants state they do not have an account with other agencies because they have no employees on payroll. The lack of accounts should be a red flag that a company is not aware, or at least is not complying with, payroll requirements. • Legally permitted and professionally operated existing companies already keep information on temporary workers. This requirement should apply to all companies. |
(2) Staff recommends the commission reject WMC's suggestion in subsection (2). Currently, an applicant receives a provisional permit for a minimum of six months. The applicant remains provisional until it has met all requirements for permanent authority. A review of the records for 2010 shows the UTC received twenty-eight applications for household goods authority. For twenty of those applications, staff closed the file within an average of ten months. Ten were granted and ten were canceled. Eight additional |
| evidence of compliance with state
tax, labor, employment, business,
and vehicle licensing laws and
rules. The commission will accept
valid account numbers that staff
can verify, showing the applicant
has established accounts with
other state agencies, as evidence. (7) The applicant has provided evidence of its enrollment in a drug and alcohol testing program, or evidence that it has in place its own drug and alcohol testing program, if required by WAC 480-15-570. The commission will accept proof of enrollment in a program, or a detailed description of the applicant's own program, as evidence. (8) Commission staff has completed a criminal background check on each person named in the application associated with the proposed moving company. The commission will not grant provisional authority if any named person has, within the past five years, been convicted of any crime involving theft, burglary, sexual misconduct, identity theft, fraud, false statements, or the manufacture, sale, or distribution of a controlled substance. |
(2) "The provisional
application review period shall not
be less than six months. One
additional period of six months for
review work by staff may be
granted when supported by
justified need for staff to evaluate
the applicant, complete applicable
required audits, or complete any
needed applicant training. If,
following the second six-month
evaluation period, the application
process is still incomplete; the
application will be voided and
returned to the applicant with
comment."
• Twelve months is sufficient time to complete an accurate assessment of an applicant's ability to operate. There are fourteen provisional permits still out there from 2010. • A provisional permit allows a company full access to operate. If the commission has not determined the company is fit, qualified, and safe to operate, then the company should not be operating. |
are still pending, primarily because the companies have not conducted enough intrastate moves on which to complete a compliance review. In other cases, it may take more than the average of ten months for staff to get the carrier into compliance with UTC rules. Staff's goal is to work with a new company on a cooperative basis to gain voluntary compliance. Staff does not recommend changing this approach. |
| (9) The applicant owns or
leases the equipment necessary to
provide household goods moving
services. (10) The commission has not denied a household goods moving company permit application within the previous six months filed by the same applicant or by any other person named on the application. (11) The commission has not canceled, for cause, a permit held by the applicant, or by any other person named on the application, within the previous one year. (12) The applicant has filed with the application at least three completed statements of support for the proposed service. (13) No other circumstances exist that cause the commission to deny the application. |
Chapter 480-15 WAC, Household Goods Carriers
Amended, Adopted, and Repealed Rules
12 SUGGESTIONS FOR CHANGE THAT ARE REJECTED: Mr. Tutton suggested changing the rules in the same manner as in his written comments as described in Appendix A. The commission adopts commission staff's recommendations and rejects Mr. Tutton's suggested changes to the rules for the reasons described in the commission staff responses in Appendix A.
13 COMMISSION ACTION: After considering all of the information regarding this proposal, the commission finds and concludes that it should amend, adopt, and repeal the rules as proposed in the CR-102 at WSR 12-06-077.
14 STATEMENT OF ACTION; STATEMENT OF EFFECTIVE DATE: After reviewing the entire record, the commission determines that WAC 480-15-185, 480-15-190, 480-15-230, and 480-15-340 should be amended, WAC 480-15-186, 480-15-187, 480-15-302, and 480-15-305 should be adopted, and WAC 480-15-270, 480-15-280, 480-15-285, 480-15-290, 480-15-310, 480-15-320, 480-15-330, and 480-15-335 should be repealed to read as set forth in Appendix B, as rules of the Washington UTC, to take effect pursuant to RCW 34.05.380(2) on the thirty-first day after filing with the code reviser.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 16, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 4, Amended 4, Repealed 8.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
16 WAC 480-15-185, 480-15-190, 480-15-230, and 480-15-340 are amended; WAC 480-15-186, 480-15-187, 480-15-302, and 480-15-305 are adopted; and WAC 480-15-270, 480-15-280, 480-15-285, 480-15-290, 480-15-310, 480-15-320, 480-15-330, and 480-15-335 are repealed to read as set forth in Appendix B, as rules of the Washington UTC, to take effect on the thirty-first day after the date of filing with the code reviser pursuant to RCW 34.05.380(2).
17 This order and the rule set out below, after being recorded in the register of the Washington UTC, shall be forwarded to the code reviser for filing pursuant to chapters 80.01 and 34.05 RCW and 1-21 WAC.
Dated at Olympia, Washington, June 7, 2012.
Washington Utilities and Transportation Commission
Jeffrey D. Goltz, Chairman
Patrick J. Oshie, Commissioner
Philip B. Jones, Commissioner
OTS-4581.3
AMENDATORY SECTION(Amending Docket TV-070466, General Order
R-547, filed 12/27/07, effective 1/27/08)
WAC 480-15-185
Types of household goods permits.
((The
commission may issue any of the following types of permits:
(1) Emergency temporary authority for a period of thirty days or less when there is an urgent need for service and time or circumstances do not reasonably allow filing and processing an application for temporary authority.
(2) Temporary authority for up to one hundred eighty days to meet a short-term public need or until the commission makes a decision on the pending application for permanent authority. The applicant must be fit, willing and able and the proposed service must be in the public interest.
(3) Permanent authority has no expiration date or renewal requirement when the applicant is fit, willing and able to provide service and meets the current or future public convenience and necessity standards.)) There are two types of household goods permits.
(1) Provisional permit: An applicant must complete a household goods moving company permit application to receive a provisional permit. A provisional permit lasts for a period of not less than six months. In determining whether to grant provisional authority, the commission will consider the criteria outlined in WAC 480-15-302.
(2) Permanent permit: Once the applicant has held a provisional permit for at least six months, the commission will consider whether to grant the applicant a permanent permit. A permanent permit has no expiration date. The applicant does not need to file a second application for permanent authority. In determining whether to grant permanent authority, the commission will consider the criteria outlined in WAC 480-15-305.
[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.250, 81.28.040, 81.80.120, 81.80.130 and 81.80.290. 08-02-049 (Docket TV-070466, General Order R-547), § 480-15-185, filed 12/27/07, effective 1/27/08.]
(1) New authority to operate as a household goods carrier.
(2) Transfer of existing authority, except as described in WAC 480-15-187. If the holder of a permit wishes to transfer the permit, the person or entity receiving the permit must file an application as described in this section. For the purposes of this section and WAC 480-15-187, the person or entity receiving the permit is the applicant.
(3) Acquisition of control of existing authority.
(4) Additional authority for an existing household goods permit.
[]
(2) The commission will grant an application to transfer existing permanent authority, or acquire control of existing permanent authority, without requiring a provisional permit, public notice, or comment if the applicant is fit, willing, and able to provide service and the applicant has filed to transfer or acquire control of permanent authority for any one of the following reasons:
(a) A partnership has dissolved due to the death, bankruptcy or withdrawal of a partner and that partner's interest is being transferred to a spouse or to one or more remaining partners.
(b) A shareholder in a corporation has died and that shareholder's interest is being transferred to a surviving spouse or one or more surviving shareholders.
(c) A sole proprietor has died, the sole proprietor devised or bequeathed the company by will, and the applicant is seeking transfer of the permit in accordance with the bequest or devise set forth in the will.
(d) An individual has incorporated and the same individual remains the majority shareholder.
(e) An individual has added a partner but the same individual remains the majority partner.
(f) A corporation has dissolved and the interest is being transferred to the majority shareholder.
(g) A partnership has dissolved and the interest is being transferred to the majority partner.
(h) A partnership has incorporated, and the partners are the majority shareholders.
(i) Ownership is being transferred from one corporation to another corporation when both are wholly owned by the same shareholders.
(2) The commission will grant an application for permanent authority without requiring a provisional permit after the application has been published on the application docket subject to comment for thirty days if the applicant is fit, willing, and able to provide service, the applicant has filed to transfer or acquire control of permanent authority, and all of the following conditions exist:
(a) Ownership or control of a permit is being transferred to any shareholder, partner, family member, employee, or other person familiar with the company's operations and the household goods moving services provided.
(b) The permit has been actively used by the current owner to provide household goods moving services during the twelve-month period prior to the application.
(c) The application includes a certified statement from the applicant and the current owner explaining why the transfer of ownership or control is necessary to ensure the company's economic viability.
(d) The application includes a certified statement from the applicant and the current owner describing the steps taken by the parties to ensure that safe operations and continuity of service to customers is maintained.
[]
(1) ((You)) An applicant elects to limit ((your)) the
service territory to specific counties; or
(2) The commission, by order, limits ((your)) an
applicant's service territory.
[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.250, 81.28.040, 81.80.120, 81.80.130 and 81.80.290. 08-02-049 (Docket TV-070466, General Order R-547), § 480-15-190, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 81.04.160 and 80.01.040. 99-01-077 (Order R-454, Docket No. TV-971477), § 480-15-190, filed 12/15/98, effective 1/15/99.]
| Type of Permit Application: | Fee: |
| (( |
|
| Provisional and permanent authority. The fee for provisional, and then permanent, authority is a one-time fee | $550.00 |
| Transfer or acquisition of authority under
WAC (( |
$250.00 |
| Permit reinstatement (( |
$250.00 |
| Name change only | $35.00 |
[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.250, 81.28.040, 81.80.120, 81.80.130 and 81.80.290. 08-02-049 (Docket TV-070466, General Order R-547), § 480-15-230, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 81.04.160 and 80.01.040. 99-01-077 (Order R-454, Docket No. TV-971477), § 480-15-230, filed 12/15/98, effective 1/15/99.]
Part 2.2 - (((1) The applicant has properly completed the household goods moving company permit application.
(2) The application does not contain any indication of fraud, misrepresentation, or erroneous information.
(3) The applicant has provided a copy of a valid Washington state driver's license for each person named in the application associated with the proposed moving company.
(4) The applicant has provided evidence that the applicant possesses sufficient financial resources to operate a moving company. The commission will accept as evidence the completed financial statement form included in the household goods moving company permit application or the alternative documents listed on the financial statement form.
(5) The applicant has met the liability and cargo insurance requirements of WAC 480-15-530 and 480-15-550.
(6) The applicant has provided evidence of compliance with state tax, labor, employment, business, and vehicle licensing laws and rules. The commission will accept valid account numbers that staff can verify, showing the applicant has established accounts with other state agencies, as evidence.
(7) The applicant has provided evidence of its enrollment in a drug and alcohol testing program, or evidence that it has in place its own drug and alcohol testing program, if required by WAC 480-15-570. The commission will accept proof of enrollment in a program, or a detailed description of the applicant's own program, as evidence.
(8) Commission staff has completed a criminal background check on each person named in the application associated with the proposed moving company. The commission will not grant provisional authority if any named person has, within the past five years, been convicted of any crime involving theft, burglary, sexual misconduct, identity theft, fraud, false statements, or the manufacture, sale, or distribution of a controlled substance.
(9) The applicant owns or leases the equipment necessary to provide household goods moving services.
(10) The commission has not denied a household goods moving company permit application within the previous six months filed by the same applicant or by any other person named on the application.
(11) The commission has not canceled, for cause, a permit held by the applicant, or by any other person named on the application, within the previous one year.
(12) The applicant has filed with the application at least three completed statements of support for the proposed service.
(13) No other circumstances exist that cause the commission to deny the application.
[]
(1) The applicant has met all of the criteria required for a provisional permit as described in WAC 480-15-302.
(2) The applicant has completed a provisional period of not less than six months.
(3) The applicant has attended a commission-sponsored household goods carrier training class.
(4) The applicant has provided commission staff with evidence that the applicant has completed a criminal background check on each person it employs or intends to employ that will have contact with a customer or a customer's residence. The commission will not grant permanent authority if any employee has, within the past five years, been convicted of any crime involving theft, burglary, sexual misconduct, identity theft, fraud, false statements, or the manufacture, sale, or distribution of a controlled substance.
(5) The applicant has received a satisfactory safety rating in a safety review conducted by commission safety staff.
(6) The applicant has no outstanding commission-issued monetary penalties.
(7) The applicant has paid all outstanding fees or other amounts due to the commission.
(8) The applicant has met all other commission regulatory requirements, including any requirements set by statute, rule, tariff, or order.
(9) The applicant has no unresolved consumer complaints on file with the commission.
(10) No other circumstances exist that cause the commission to deny permanent authority.
[]
Part 2.3 - (( (2) Anyone having an interest in an application appearing
on the docket may file written comments within thirty days
following publication, unless the application is published in
conjunction with a grant of ((temporary)) provisional
authority. If the permanent authority application is
published in conjunction with a grant of ((temporary))
provisional authority, then comments will be accepted for one
hundred eighty days or the full term of the ((temporary))
provisional permit.
(3) Comments may either support or protest the application. Comments must include the commenter's full name, address, telephone number, e-mail address, fax number, and permit number, if available. Comments must be signed and indicate the place and date when they were signed. Comments must indicate support for, or protest of, the permanent authority for any one or more of the following reasons:
(a) Fitness.
(b) Public interest.
(c) Levels of service.
(d) Business practices.
(e) Safety.
(f) Operation of equipment.
(g) Current or future public need for service.
(4) A comment protesting an application will not, on its own, cause the commission to set the matter for a hearing.
[Statutory Authority: RCW 80.01.040, 80.04.160, 81.04.250, 81.28.040, 81.80.120, 81.80.130 and 81.80.290. 08-02-049 (Docket TV-070466, General Order R-547), § 480-15-340, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 81.04.160 and 80.01.040. 99-01-077 (Order R-454, Docket No. TV-971477), § 480-15-340, filed 12/15/98, effective 1/15/99.]
Part 2.4 - (( The following sections of the Washington Administrative Code are repealed:
| WAC 480-15-270 | Emergency temporary authority. |
| WAC 480-15-280 | Temporary authority. |
| WAC 480-15-285 | Rejecting or denying an application for temporary authority. |
| WAC 480-15-290 | Granting temporary authority. |
| WAC 480-15-310 | Commenting on actions regarding temporary authority. |
| WAC 480-15-320 | Canceling a temporary permit. |
| WAC 480-15-330 | Permanent authority. |
| WAC 480-15-335 | Exceptions to permanent authority application process. |