Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-12-020.

     Title of Rule and Other Identifying Information: Chapter 480-30 WAC, Passenger transportation companies.

     Hearing Location(s): Washington Utilities and Transportation Commission, Commission Hearing Room 206, 2nd Floor Chandler Plaza Building, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504-7250, on March 29, 2006, at 3:00 p.m.

     Date of Intended Adoption: March 29, 2006.

     Submit Written Comments to: Carole J. Washburn, Secretary, P.O. Box 47250, Olympia, WA 98504-7250, e-mail records@wutc.wa.gov, fax (360) 586-1150, by March 9, 2006. Please include Docket No. TC-020497 in your comments.

     Assistance for Persons with Disabilities: Contact Mary De Young by Monday, March 27, 2006, TTY (360) 586-8203 or (360) 664-1133.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The proposal would repeal all current rules in chapter 480-30 WAC (except WAC 480-30-999, which is amended), repeal all rules in chapter 480-40 WAC, and consolidate the requirements for passenger transportation companies, including auto transportation companies, passenger charters, and excursion carriers into a single chapter by rewriting and reorganizing chapter 480-30 WAC and including provisions formerly contained in chapters 480-40 and 480-149 WAC.

     Affected WACs are chapter 480-30 WAC (retitled and revised) and chapter 480-40 WAC (repealed).

     Reasons Supporting Proposal: The proposed rules are intended to implement the requirements of Executive Order 97-02, requiring agencies to review significant rules for need; effectiveness and efficiency; clarity; intent and statutory authority; cost and fairness. The proposed rules are reasonable and necessary. The proposal repeals some existing rules that are no longer necessary, adds new rules, updates, and clarifies other rules to reflect current requirements and practices.

     Statutory Authority for Adoption: RCW 80.01.040, 81.04.160, 81.12.050, 81.68.030, 81.70.270.

     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: Bonnie L. Allen, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1310; Implementation and Enforcement: Carole J. Washburn, 1300 South Evergreen Park Drive S.W., Olympia, WA 98504, (360) 664-1174.

     A small business economic impact statement has been prepared under chapter 19.85 RCW.

     The commission held two informal stakeholder workshops with interested persons to discuss issues, draft rule language, receive comments, and explore options. Additional meetings held with smaller groups specifically focused on rate issues including free or reduced rates, promotional fares, rate flexibility, and fuel surcharges.

     Commission staff prepared an issues paper and two sets of draft rules that were provided to stakeholders for comment during the CR-101 process. Written stakeholder comments have been helpful to clarify the intent of the proposed rules and effects of the proposed rules on the industry. The commission believes draft rules are now sufficiently developed to proceed to the next phase of the rule making. When issuing a notice of proposed rules, agencies must provide a copy of the small business economic impact statement (SBEIS) prepared under chapter 19.85 RCW, or explain why an SBEIS was not prepared. RCW 34.05.320 (1)(k).

     SBEIS Requirements: The Regulatory Fairness Act, codified in chapter 19.85 RCW, provides that an agency must conduct an SBEIS "if the proposed rule will impose more than minor costs on businesses in an industry." RCW 19.85.030. An SBEIS is intended to assist agencies in evaluating any disproportionate impacts of the rule making on small businesses. A business is categorized as "small" under the Regulatory Fairness Act if the business employs fifty or fewer employees.

     Under RCW 19.85.040(1), agencies must determine whether there is a disproportionate impact on small businesses in the industry, and under RCW 19.85.030(2), consider means to minimize the costs imposed on small businesses. In determining whether there is a disproportionate impact on small businesses, agencies must compare the cost of compliance for small businesses with the cost of compliance for the 10% of businesses that are the largest businesses required to comply with the rule using either the cost per employee, the cost per hour of labor, or the cost per $100 of sales revenue, as a basis for comparing costs. See RCW 19.85.040(1).

     SBEIS Evaluation Procedure: The commission determined that an SBEIS is required for the passenger transportation (bus) company rules proposed in Docket No. TC-020497 because the proposed rules may impose more than minor costs on passenger transportation companies operating in Washington state.

     Currently, approximately seventy-seven charter carriers, thirty-eight excursion carriers, and twenty-six auto transportation companies (includes airporters and scheduled bus service) hold certificates issued by the commission authorizing passenger transportation services in Washington state. The industry affected by these rules is represented under the following standard industrial classification (SIC) codes:

     4111 Local and Suburban Transit: Establishments primarily engaged in furnishing local and suburban mass passenger transportation over regular routes and on regular schedules, with operations confined principally to a municipality, contiguous municipalities, or a municipality and its suburban areas. Also included in this industry are establishments primarily engaged in furnishing passenger transportation by automobile, bus, or rail to, from, or between airports or rail terminals, over regular routes, and those providing bus and rail commuter services.

     4131 Intercity and Rural Bus Transportation: Establishments primarily engaged in furnishing bus transportation, over regular routes and on regular schedules, the operations of which are principally outside a single municipality, outside one group of contiguous municipalities, and outside a single municipality and its suburban areas charter bus transportation services are classified in Industry Group 414.

     4142 Bus Charter Service, Except Local: Establishments primarily engaged in furnishing bus charter service, except local, where such operations are principally outside a single municipality, outside one group of contiguous municipalities, and outside a single municipality and its suburban areas.

     Washington state department of revenue data and statistics show that a total of sixty-six taxpayers reported for 2004 under the three SIC codes combined and sixty-seven taxpayers reported under those same three SIC codes for 2003. Since the commission has issued seventy-seven certificates to charter carriers alone, at least some of the companies holding passenger transportation company certificates from the commission may be involved in other business activities and reported under a different SIC code group.

     RCW 19.85.040(3) provides that an agency may survey a representative sample of affected businesses to obtain the information for developing an SBEIS. In this instance, the commission mailed a notice of opportunity to comment and an SBEIS questionnaire to each certificated passenger transportation company and other interested parties. The commission gave parties approximately thirty-four days to respond to the questionnaire. The commission believes that is adequate time to provide the information requested in the questionnaire. The notice asked each company to provide information about its expected costs of implementing the draft rules and to provide specific information for each draft rule that the company identifies as having an implementation cost.

     Most of the passenger transportation companies did not respond to the questionnaire. It could be that companies are not small businesses, the companies as part of running a business already collect the required information, or if new information is collected the cost resulting from implementing the proposed rules would be minimal. The two companies that responded to the commission's SBEIS questionnaire are both small businesses as defined by the Regulatory Fairness Act. Those companies are:

•	SeaTac Shuttle, LLC, (SeaTac) d/b/a Vashon Shuttle, is an airporter service operating under an auto transportation company certificate. The company also holds certificates to provide both charter and excursion carrier services.
•	Bremerton Kitsap Airporter, Inc. d/b/a Fort Lewis/McChord Airporter/The Sound Connection, (BK Airporter) is an airporter service operating under an auto transportation company certificate.

     Compliance Requirements of the Proposed Rules: Most of the language in the proposed rules is a restatement of current rules, current requirements, and current policies that result in no change in the cost of compliance. The SBEIS does not examine the existing costs of compliance but only new costs of compliance as a result of proposed new rules or changes in existing rules.

     The two companies responding to the questionnaire identified thirty-five rules with cost impacts and the entire section of rules relating to the process of filing for a general rate increase in Section 7.

     The rules and cost impacts identified by the responding companies are discussed below:

     WAC 480-30-051 Mapping, auto transportation company.

     Responding Companies: $500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule establishes standards for filed maps. The rule includes options including the use of the free Washington state highway map published by the Washington state department of transportation. Maps are an existing certificate application filing requirement for auto transportation companies.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-056 Records retention, auto transportation company.

     Responding Companies: $50,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule requires companies to maintain general business records for three years and establishes other retention periods for other specific records. The rule does not establish new records or new record formats. The requirements of this rule relate to data that each company should already maintain in the normal course of running its business.

     Conclusion: The rule establishes retention periods for records companies are already required to maintain. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-071 Reporting requirements.

     Responding Companies: $2,500 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: RCW 81.04.080 and WAC 480-30-120 currently require auto transportation companies to file annual reports. Charter rules require charter and excursion carriers to state the number of vehicles operated, provide "other required information," and submit appropriate fees. The annual safety report described in this rule is the "other required information" the commission collects from charter and excursion carriers with each company's annual regulatory fee payment.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-086 Certificates, general. (3)

     Responding Companies: $1,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     $500 per year - BK Airporter. The requirement to carry in each vehicle a copy of the operating authority, complete tariff and operating schedule is costly, time consuming and unnecessary. They must be stored in a binder, updated, and replaced when the vehicles are replaced or when changes are necessary to the three documents. Administration and copying costs are estimated to be $500 per year.

     Discussion: The proposed rule would have required each company to carry a copy of its certificate authority on each vehicle operated. This is an existing requirement for charter and excursion carriers but not for auto transportation companies. The commission has revised the proposed rule and eliminated the requirement for all passenger transportation companies.

     Conclusion: The proposed rule does not create new requirements. Removing the requirement that charter and excursion carriers maintain copies of their permits on each vehicle should result in a cost savings.

     WAC 480-30-116 Certificates, application docket, protests, and intervention, auto transportation company. (2)

     Responding Companies: $20,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Subsection (2) of the proposed rule reflects current commission practice regarding protests filed in auto transportation company certificate application proceedings. The commission has removed language in the proposed rule related to associations that file protests. Removing the language from the proposed rule does not eliminate an association's ability to file a protest but leaves the matter to be decided on a case-by-case basis as it is today.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-136 Certificates, application hearings, auto transportation company. (5)(d)

     Responding Companies: $5,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule reflects current commission practice regarding information that it "may" consider in a certificate application filing when determining if territory is already served by another auto transportation company certificate holder.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-156 Certificates, temporary.

     Responding Companies: Unknown cost - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule implements provisions of RCW 81.68.046 (SSB 5105, chapter 121, Laws of 2005). The new law allows the commission to grant temporary certificates to auto transportation companies. Filing for a temporary certificate is a new option that companies may chose to pursue instead of permanent authority. No company is required to file for a temporary certificate. The application filing fees and filing requirements for temporary certificates are established at a level consistent with those currently in place for permanent certificate applications.

     Conclusion: The proposed rule creates a new option for companies to obtain certificate authority but maintains fees and filing requirements at current levels. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-191 Bodily injury and property damage liability insurance.

     Responding Companies: $10,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule increases insurance minimums to a level established by the Federal Motor Carrier Safety Administration for interstate passenger motor carriers. Interstate passenger carriers and most intrastate charter and excursion carriers are already required to comply with the higher limits. The responding company holds a charter certificate and already maintains its insurance at the proposed higher limit ($5,000,000) for the size vehicles they operate. Two auto transportation companies appear to have insurance at $1,000,000 and will be required to increase their insurance coverage. The limit of $1,000,000 is higher than the current required minimum for the size vehicles they operate, but lower than the proposed new minimum of $1,500,000 and as a result they will be required to raise their insurance minimums.

     Conclusion: 96% of the passenger transportation companies are already required to maintain insurance at the proposed higher limits. While there may be a cost impact for those companies that do not currently maintain insurance at the higher limits, the commission believes it is a justified cost that is necessary to bring state insurance minimums up to federal levels and to establish a consistent public safety standard for vehicles operated into, out of, through, and within Washington state.

     WAC 480-30-216 Operation of motor vehicles, general. (2)

     Responding Companies: $1,000 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Current rules require auto transportation companies to include governing rules (including baggage rules) in each filed tariff. Subsection (2) of the proposed rule clarifies baggage information that an auto transportation company must include in its tariff rules. The proposed rule does not require auto transportation companies to inspect baggage.

     Conclusion: The proposed rule clarifies information for governing rules that a company must already include in its filed tariff. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-216 Operation of motor vehicles, general. (7)

     Responding Companies: $500 - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Current rules require auto transportation companies to post "no smoking" signs.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-231 Vehicle and driver identification.

     Responding Companies: Unknown cost - SeaTac Shuttle. The company provided no information about its basis for a cost impact or how it calculated the cost impact.

     $750 to $30,000 - BK Airporter. Installation of electronic signage is estimated to cost $2,000 per vehicle if extensive modifications to the vehicles are required. If a simple sign is placed in the windshield, a commercially produced sign would cost an estimated $50.00 each. There are currently fifteen vehicles in use. Estimated cost is $750 - $30,000.

     Discussion: Current rules require auto transportation companies to display on each vehicle destination signs with lettering no less than three inches tall. The proposed rule requires signage, but does not establish the size or type of sign a company must display.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-236 Leasing vehicles.

     Responding Companies: $500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule codifies the interpretation of how regulated companies must conduct business under current law. Vehicles must be properly registered and licensed. When ownership is transferred or assigned (as in a lease) the agreement must be in writing and the company must update its vehicle licensing documents. The proposed rule identifies the information that parties must include in a lease agreement between a passenger transportation company and the person from whom the vehicle is leased, if that person is in a business other than the business of leasing vehicles.

     Conclusion: The proposed rule identifies information that companies must include in their lease agreements. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-241 Commission compliance policy.

     Responding Companies: $24,000 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule is a statement of authority and policy and does not create any requirements with which companies must comply.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-281 Tariffs and time schedules, content.

     Responding Companies: Impossible to evaluate, potentially infinite - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule restates and clarifies tariff and time schedule requirements currently established in chapters 480-149 and 480-30 WAC.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-286 Tariffs and time schedules, posting.

     Responding Companies: $1,500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     $500 per year - BK Airporter. The requirement to carry in each vehicle a copy of the operating authority, complete tariff and operating schedule is costly, time consuming and unnecessary. They must be stored in a binder, updated, and replaced when the vehicles are replaced or when changes are necessary to the three documents. Administration and copying costs are estimated to be $500 per year.

     Discussion: Companies must carry on each vehicle a copy of the schedule and fares for each route that vehicle serves, not the company's complete tariff and operating schedule. Current rules require vehicles to carry copies of their schedules. BK Airporter already satisfies the requirement of the proposed rule by carrying on its vehicles copies of its schedule that include passenger fares.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-316 Tariffs and time schedules, customer notice requirements.

     Responding Companies: $1,500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule restates and clarifies customer notice requirements currently required in chapters 480-149 and 480-30 WAC, with the exception of posting on a company's web site, if it has one. The proposed rule acknowledges that in today's world, companies sell tickets and publish their rates and schedules through internet web sites. If a company maintains such a web site, then the company must also publish its customer notice on the web site. The proposed rule is more permissive than current rules. Revisions in the proposed rules increase the instances under which companies may file on one-day notice to the commission rather than the current thirty-day notice to the public.

     Conclusion: Companies are currently required to post customer notices at locations including passenger facilities and other locations where tickets are sold. The proposed rule brings that requirement forward to those companies that sell tickets and publish rates and schedules through a web site. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-321 Tariffs and time schedules, notice verification and assistance.

     Responding Companies: $1,000 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Companies are already required to post customer notices. This proposed rule requires companies to provide the commission a copy of the required customer notice and information about the dates and locations at which the notice was posted. The rule informs companies that they may seek assistance (free of charge) in preparing the notice from the commission's consumer affairs staff. The proposed rule in WAC 480-30-381 allows a company to include its customer notice information in its transmittal letter.

     Conclusion: While providing a copy of the customer notice to the commission is a new requirement any new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-326 Tariffs and time schedules, less than statutory notice handling. (4) Notice requirements.

     Responding Companies: $1,500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The notice requirements for a less than statutory notice (LSN) filing are the same as for a regular filing except that the information is filed with the commission at the time of application for LSN handling. Again, the customer notice copy and posting information may be included in the filing transmittal letter.

     Conclusion: While providing a copy of the customer notice to the commission is a new requirement any new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-356 Tariffs and time schedules, tariff rules. Subsection (3)(i).

     Responding Comments: Undetermined cost - BK Airporter. A taxi from any point on our route to Sea-Tac International Airport cost $55 to $125 per one way trip. The frequency of providing alternate transportation for persons whose reservations were missed cannot be estimated; therefore the cost of this rule cannot be determined.

     Discussion: Under some circumstances it may be appropriate for companies to offer alternative transportation options, under other circumstances it may not. The proposed rule does not require companies to provide alternative transportation for a customer with a reservation. The proposed rule identifies the subject as one that companies must address in their tariff rules.

     Conclusion: The proposed rule clarifies information for governing rules that a company must already include in its filed tariff. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-381 Tariffs and time schedules, filing procedures. (2) Transmittal letter.

     Responding Companies: $2,500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Current rules require transmittal letters. The proposed rule clarifies the information that a company must include in its transmittal letter.

     Conclusion: The proposed rule clarifies information that companies must include in required transmittal letters. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-381 Tariffs and time schedules, filing procedures. (4)(c) Rate increase filings.

     Responding Companies: Unknown, potentially huge - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Companies must support their rate increase requests. The proposed rule refers to the work papers a company must submit with a general rate increase filing to support its rate increase request. The proposed rule requires the company to prepare its rate case in an organized and systematic manner prior to filing with the commission. The data required by this rule have been submitted by the company directly or at staff's request after the case has been filed. The rule merely requires the company to compile and file the information with its proposed rates.

     Conclusion: The proposed rule requires companies to compile and file information with proposed rates rather than after filing with the commission. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-391 Tariffs and time schedules, ticket agent agreements must be filed and approved.

     Responding Companies: Undeterminable - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Current rules require the commission to approve the "form" of any contract or agreement for an agent to sell tickets for an auto transportation company. The proposed rule identifies the minimum information a company must include in such an agreement.

     Conclusion: The proposed rule clarifies information that companies must include in ticket agent agreement forms. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-396 Tariffs and time schedules, free and reduced rates.

     Responding Companies: $500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The use of free and reduced rates is allowed under provisions of RCW 81.24.080. The proposed rule restates in rule the existing requirements for a company to provide service at free or reduced rates.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-421 Tariffs, general rate increase filings and 480-30-426 Tariffs, general rate increase filings, work papers.

     Responding Companies: This can be a very expensive process easily running to $10,000+. It is impossible to set any kind of fixed number on this section - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rules define a general rate increase and describe the work papers companies must provide with proposed rates when filing for a general rate increase. Companies are required to support rate increase requests. The proposed rule requires the company to prepare its rate case in an organized and systematic manner prior to filing with the commission. The data required by this rule have been submitted by the company directly or at staff's request after the case has been filed. The rule merely requires the company to compile and file the information with its proposed rates.

     Conclusion: The proposed rule requires companies to compile and file information with proposed rates rather than after filing with the commission. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-436 Tariffs, special or promotional fare tariff filings.

     Responding Companies: Cannot fix cost since the potential for a complaint being lodged against the company by the commission for filing this type of request is very real - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Auto transportation companies are required to charge their published rates. The proposed rule creates a new option, giving auto transportation companies flexibility in establishing special or promotional rates. The rule describes the minimum information a company choosing to use this option must include with its filing.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-446 Availability of information.

     Responding Companies: $5,000 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule does not require companies to create any new information but only to make existing information such as tariffs, schedules, rules, and certificates available to the public for inspection on request. The commission makes its rules available to companies and the public at no charge.

     Conclusion: The proposed rule does not create new requirements, so there are no new costs.

     WAC 480-30-461 Service or rate complaints.

     Responding Companies: Unknown, we have had no complaints - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule describes the consumer complaint process including the company's responsibility to acknowledge, investigate, and respond to consumers and commission staff. The proposed rule also requires companies to maintain a consumer complaint record.

     Conclusion: Establishing a complaint record may result in minimal new costs for those companies not already keeping records of consumer complaints. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-471 Ticketing requirements.

     Responding Companies: $10,000 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: The proposed rule establishes a new requirement for those companies that do not already provide information to their customers regarding such issues as: Refunds, baggage liability, expiration dates, prohibited items, company phone numbers, and web site. While there is a cost associated [with] providing this information, customers require the information, and the proposed rule provides companies several ways in which they can make the information available to their customers.

     Conclusion: There may be more than a minimal cost for those companies not already providing consumers with necessary information required by the proposed rule. To mitigate those costs the proposed rule offers companies a variety of options.

     WAC 480-30-476 Baggage liability and claims for loss or damage.

     Responding Companies: Cannot be determined as this section is in conflict with RCW and other WAC sections - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Prior to 1991, the baggage liability limits were fixed in RCW 81.29.050; including provisions requiring companies to offer customers the opportunity to declare higher value. That law was changed, at the agency's request to require the commission to set the limits by rule. The proposed rule establishes $250 as the minimum baggage liability limit for an adult's fare and $100 for a child's fare. The rule also requires companies to establish tariff provisions and fees for passengers to declare higher value. The provisions apply only to checked baggage. Checked baggage means passenger baggage that is accepted for transportation but is not carried in the passenger compartment of the vehicle. Most airporters do not provide checked baggage service. Baggage is placed in a secured portion of the passenger compartment that is separate from the seating area and accessed from the back of the vehicle.

     Conclusion: The proposed rule establishes a minimum baggage liability limit for checked baggage that is consistent with the (adult fare) minimum limit established in federal rule for interstate passenger transportation companies operating into, out of, or through the state. Companies not already at the federal minimum may see an increased cost. Because baggage liability costs are built into rates, any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-476(2) Delivery of checked baggage.

     Responding Companies: $500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: Checked baggage has been taken out of the passenger's control and placed with the passenger transportation company for stowage and transport in an area outside of the passenger compartment. If, upon reaching the passenger's destination, the checked baggage cannot be located, the carrier has an obligation to either compensate the passenger for the loss, or to deliver the baggage once it is found. Most airporters do not provide checked baggage service. Baggage is placed in a secured portion of the passenger compartment that is separate from the seating area and accessed from the back of the vehicle.

     Conclusion: There may be a cost associated with delivery of lost checked baggage for those companies that accept checked baggage and do not have a delivery policy in place. The cost of delivering a misplaced bag to a local address is less than the cost of compensating a passenger for the loss. Because baggage liability costs are built into rates, any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-476(3) Claims.

     Responding Companies: $500 - SeaTac Shuttle. The company provided no explanation or information about its basis for a cost impact or how it calculated the cost impact.

     Discussion: This proposed rule establishes a claims process for lost or damaged baggage. The claims process only applies to "checked baggage" that is not carried in the passenger compartment of the vehicle. Most airporters do not provide checked baggage service. Baggage is placed in a secured portion of the passenger compartment that is separate from the seating area and accessed from the back of the vehicle.

     Conclusion: There may be a cost associated with establishing claims forms and making those forms available to customers. Because baggage liability costs are built into rates, any related new cost of compliance is no more than minimal, so mitigation is not required.

     WAC 480-30-251 to WAC 480-30-436 Rates and rate methodology, Section 7.

     Responding Companies: $5,000 - $10,000 - BK Airporter. The entire process of filing for a general rate increase is both time consuming and expensive. The preparation of pro-forma income and expense statements, depreciation schedules and other necessary documentation and justifications is excessive and costly. These burdens are too extensive for the average small business owner who is not an accountant and who doesn't have a full-time accountant on his staff. The most recent general rate increase filed by this company took six months of filing and then refiling again before staff approved an incremental rate increase. If our CPA firm responsible for our official accounting performed this task, the estimated cost for documentation preparation only is $2,125. See Cox and Lucy, CPA's estimate). Company costs for liaison and follow-up coordination during the entire process are estimated at $5,000 - $10,000, depending on the amount of justification required and the complexity of the request. These costs would be greatly diminished if rate methodology were simplified to allow the operator annual "fare zones" and simplified application procedures as discussed in BKA comments to the proposed rules. BKA preparation and processing of gasoline surcharge requests are estimated at $1,200 per year. If fare zones were implemented, the need for fuel surcharge applications would be eliminated.

     Discussion: Part 7 of the proposed rules include WAC 480-30-251 to WAC 480-30-436. The proposed rules reflect current tariff and rate filing requirements. The company's comments reference costs associated with the company's recent rate case and fuel surcharge filings under current rules. The commission will consider rate setting methods in a separate proceeding.

     Conclusion: The proposed rule requires companies to compile and file information with proposed rates rather than after filing with the commission. Any related new cost of compliance is no more than minimal, so mitigation is not required.

     Savings Resulting from Proposed Rules: The proposed rules authorize an auto transportation company certificate holder to provide charter and excursion carrier service without additional certificates. (Charter and excursion applications are $150 each.)

     The proposed rules consolidate the charter and excursion carrier certificates eliminating the requirement that companies pay for and receive two separate certificates. (Charter and excursion applications are $150 each.)

     By eliminating multiple certificates, the proposed rules also eliminate the requirement that companies identify their vehicles will multiple certificate numbers.

     The proposed rules increase the opportunity for companies to make tariff and time schedule filings on a one-day notice to the commission rather than the current thirty-day notice.

     The proposed rules no longer require companies to maintain records according to a uniform system of accounts established by the commission, but now allow companies to use general accounting practices.

     The proposed rules no longer require companies to pay a fee to replace a lost certificate.

     The proposed rules now include a simplified process to reinstate a certificate within thirty days of its cancellation.

     The proposed rules no longer require companies to file duplicate or triplicate copies of applications, tariffs, time schedules, insurance forms.

     The proposed rules no longer require companies to report or file with the commission vehicle accident reports.

     Summary of Findings: The proposed rules include rules that were formerly codified in three separate chapters. Existing requirements are restated to provide clarity and more complete information for companies and passengers. The rules further incorporate state legislative actions; federal preemptive actions; and state agency, federal agency, and court decisions that affect passenger transportation regulation.

     The estimated cost to comply with the proposed rules appears to be reasonable and does not appear to be significant, except for the proposed increase in bodily injury and property damage liability insurance minimums that may affect only a small number (five) of the regulated companies that do not carry insurance at higher limits.

     Mitigation: As described above, most of the proposed rules addressed by stakeholders in their response to the SBEIS questionnaire are existing requirements that have no new cost of compliance or compliance costs that are no more than minimal.

     Several of the rules that have costs include compliance options, including no cost options. Other proposed rules have been revised and no longer include new compliance costs.

     Other rules with implementation costs are necessary and cannot be mitigated.

     Conclusion: Chapter 19.85 RCW requires an SBEIS be prepared to assess whether the proposed rules impose more than minor costs on businesses in an industry, in this case, passenger transportation companies including charter carriers, excursion carriers, and auto transportation companies providing airporter services, intercity bus services, inter modal and rural transportation services. Staff mailed surveys designed to obtain information about the cost of compliance with the proposed rules to all certificated passenger transportation companies subject to commission regulation including auto transportation companies, charter carriers, and excursion carriers. Surveys were also sent to other interested parties. Two companies responded.

     As the section-by-section analysis shows, the economic impact of the proposed rule revisions is not significant for passenger transportation companies in general or for small businesses in particular. The proposed revisions make the passenger transportation company rules clearer by eliminating duplicative requirements between the various chapters and consolidating into a single chapter those rules that were formerly contained in three chapters. Outdated provisions are eliminated or updated.

     Some rules will result in additional costs for companies, but these are not significant.

     The following conclusions are based on an analysis of the cost impacts of the proposed rules on passenger transportation companies:

     1) Passenger transportation companies will incur costs to comply with some of the proposed rules. Only the following three rules may result in compliance costs that are more than minor, WAC 480-30-191 Bodily injury and property damage liability insurance, 480-30-471 Ticketing requirements, and 480-30-476 Baggage liability and claims for loss or damage.

     1) Although it was not possible to directly compare the costs and benefits of implementing the proposed rules, the commission believes that, on balance, the benefits of implementing the proposed rules are at least equal to the costs of compliance; and

     2) As can be seen from the discussion above the economic impact of the total rewriting of these rules includes a number of cost reductions. Any prudent increase in costs can be recovered from customers though rates. It is expected that the proposed rules will not impose any new costs that would cause rates to increase to such a degree as to cause a decrease in passengers and decrease in revenue.

     A copy of the statement may be obtained by contacting Washington Utilities and Transportation Commission, Records Center, Docket No. TC-020497, 1300 South Evergreen Park Drive S.W., P.O. Box 47250, Olympia, WA 98504-7250, phone (360) 664-1234, fax (360) 586-1150, e-mail records@wutc.wa.gov.

     A cost-benefit analysis is not required under RCW 34.05.328. The proposed rules are not significant legislative rules of the sort referenced in RCW 34.05.328(5).

February 15, 2006

Carole J. Washburn

Executive Secretary

OTS-8613.1

     • Public safety;

     • Fair practices;

     • Just, reasonable and sufficient rates;

     • Nondiscriminatory application of rates;

     • Adequate and dependable service;

     • Consumer protection; and

     • Compliance with statutes, rules and commission orders.

     (2) This chapter replaces rules formerly contained in chapters 480-40 and 480-30 WAC.

     (3) In addition to administering and enforcing chapters 81.68 and 81.70 RCW, the rules under this chapter are established to comply with federal law.

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     (2) The tariffs filed by auto transportation companies must conform to these rules. If the commission accepts a tariff or schedule that conflicts with these rules, the acceptance does not constitute a waiver of these rules unless the commission specifically approves the variation consistent with WAC 480-30-046. Tariffs that conflict with these rules and are not specifically approved by the commission are superseded by these rules.

     (3) Any affected person may ask the commission to review the interpretation of these rules by filing an informal complaint under WAC 480-07-910 or by filing a formal complaint under WAC 480-07-370.

     (4) No deviation from these rules will be permitted without written authorization by the commission. Violation will be subject to penalties as provided by law.

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     (a) Operations conducted wholly within the limits of an incorporated city or town.

     (b) Auto transportation company operations from a point in a city or town in the state of Washington for a distance of not more than three road miles beyond the corporate limits of the city or town in which the trip began. The operations must not be part of a journey beyond the three-mile limit, either alone or in conjunction with another vehicle or vehicles.

     (c) Commuter ride sharing or ride sharing for persons with special transportation needs under RCW 46.74.010, provided the ride-sharing operation does not compete with nor infringe upon comparable service that was actually provided by an auto transportation company under chapter 81.68 RCW before the ride-sharing operation started.

     (d) Municipal corporations and other government entities.

     (e) Public transit agencies.

     (f) Persons operating vehicles under exclusive contract to a public transit agency.

     (g) Persons owning, operating, controlling, or managing taxi cabs, hotel buses, or school buses, when operated as such.

     (h) Passenger vehicles carrying passengers on a noncommercial basis, including but not limited to, nonprofit corporations.

     (i) Private carriers who, in their own vehicles, transport passengers as an incidental adjunct to some other established private business owned or operated by them in good faith.

     (j) Transporting transient air flight crew or in-transit airline passengers between an airport and temporary hotel accommodations under an arrangement between the airline carrier and the passenger transportation company.

     (k) Substituting ground transportation for air transportation under an arrangement between the airline carrier and the passenger transportation company in emergency situations arising from the inability of the air carrier to perform air transportation due to adverse weather conditions, equipment failure, or other causes.

     (l) Transporting passengers who have had or will have had a prior or subsequent movement by air under a through ticket or common arrangement with an airline or with a connecting out-of-state passenger transportation company.

     (m) Any other carrier or company that does not come within the term:

     (i) "Auto transportation company" as defined in RCW 81.68.010;

     (ii) "Charter party carrier of passengers" as defined in RCW 81.70.020; or

     (iii) "Excursion service carrier" as defined in RCW 81.70.020.

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     (2) When determining whether operations require an auto transportation or charter and excursion certificate the commission will consider factors including, but not limited to:

     (a) What is the nature of the proposed transportation service?

     (b) What is the origin and destination of the proposed transportation?

     (c) Who will provide the service?

     (d) Who will pay for the service?

     (e) How will the rates be assessed? (Time of use, mileage or distance, passenger fares, flat fee, other.)

     (f) How will the service be provided?

     (g) Will the service be offered to the public?

     (h) Will a passenger or group of passengers have exclusive use of the vehicle or will there be shared rides or mixed use?

     (i) What type and size vehicle(s) will be used to provide the service?

     (j) Who will own the vehicle(s)?

     (k) Who will be responsible for the operation and control of the vehicle(s)?

     (3) Any person may submit to the commission a detailed written description of a proposed service to transport passengers and request an informal staff determination of the authority required to provide the described service.

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     (2) The commission retains the authority to impose additional or different requirements on any passenger transportation company in appropriate circumstances, consistent with the requirements of law.

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     (2) Unless the language or context indicates that a different meaning is intended, the following definitions apply:

     "Agent" means a person authorized to transact business for, and in the name of, another.

     "Airporter service" means an auto transportation service that starts or ends at a station served by another type of transportation such as, air or rail transportation. Airporter service is often a premium service that involves handling luggage. Although stops may be made along the way, they are usually limited to picking up or discharging passengers, luggage, and/or express freight bound to or from the airport or depot served.

     "Alternate arrangements for passengers" means the travel arrangements made by an auto transportation company that has accepted a trip booking or reservation from a passenger and that is unable to provide the agreed transportation. The alternate arrangements may require travel by another carrier or mode of transportation at no additional cost to the passenger beyond what the passenger would have paid for the original transportation arrangement.

     "Application docket" means a commission publication providing notice of all applications requesting auto transportation operating authority, with a description of the authority requested. The commission sends this publication to all persons currently holding auto transportation authority, to all persons with pending applications for auto transportation authority, to affected local jurisdictions or agencies, and to all other persons who asked to receive copies of the application docket.

     "Area" means a defined geographical location. Examples include, but are not limited to:

     (a) A specified city or town;

     (b) A specified county, group of counties, or subdivision of the state, e.g., western Washington;

     (c) A zone, e.g., company designated territory; or

     (d) A route, e.g., area within four road miles of Interstate 5.

     "Auto transportation company" means every person owning, controlling, operating, or managing any motor-propelled vehicle not usually operated on or over rails, used in the business of transporting persons over any public highway in this state between fixed termini or over a regular route, and not operating exclusively within the incorporated limits of any city or town.

     "Between fixed termini or over a regular route" means the fixed points between which an auto transportation company provides service or the route over which an auto transportation company ordinarily operates any motor-propelled vehicle, even though there may be variance whether the variance is periodic or irregular.

     "Bus" means a motor vehicle designed, constructed, and/or used for the transportation of passengers.

     "Business days" means days of the week excluding Saturdays, Sundays, and official state holidays.

     "By-reservation-only service" means transportation of passengers by an auto transportation company, with routes operated only if passengers have made prior reservations.

     "Certificate" means:

     (a) The certificate of public convenience and necessity issued by the Washington utilities and transportation commission under the provisions of chapter 81.68 RCW to operate as an auto transportation company; or

     (b) The certificate issued by the Washington utilities and transportation commission under chapter 81.70 RCW to operate as a charter and excursion carrier in the state of Washington.

     "Certificated authority" means:

     (a) The territory and services granted by the commission and described in an auto transportation company's certificate of public convenience and necessity; or

     (b) Operations in the state of Washington for charter and excursion service carriers.

     "Charter party carrier of passengers" or "charter carrier" means every person engaged in the transportation of a group of persons who, pursuant to a common purpose and under a single contract, have acquired the use of a motor bus to travel together as a group to a specified destination or for a particular itinerary, either agreed upon in advance or modified by the chartering group after having left the place of origin.

     "Claim" means a demand made on a company for payment resulting from a loss sustained through the company's negligence or for inadequate service provided by the company.

     "Closed-door service" means a portion of a route or territory in which an auto transportation company is not allowed to pick up or deliver passengers. Closed-door service restrictions must be clearly stated in an auto transportation company's certificate.

     "Common purpose" means that a group of persons is traveling together to achieve a common goal or objective. For example, a group of persons traveling together to attend a common function or to visit a common location. For the purposes of these rules it does not mean a group of persons who have no common goal other than transportation to, or from, the airport.

     "Commission" means the Washington utilities and transportation commission.

     "Common carrier" means any person who transports passengers by motor vehicle over the public highways for compensation.

     "Company" means an entity authorized by the commission to transport passengers, for compensation, using a motor vehicle, over the public highways of the state.

     "Complaint" means one of two types of actions by a person against a passenger transportation company that the commission regulates:

     (a) "Informal complaints" are those complaints filed with the commission under the provisions of WAC 480-07-910. Informal complaints are normally investigated and resolved by commission staff.

     (b) "Formal complaints" are those complaints filed with the commission under the provisions of WAC 480-07-370. In a formal complaint, the burden of proof resides with the complaining party who must prove its assertions in a formal commission proceeding.

     "Connecting service" means an auto transportation company service over a route, or routes, that require passengers to transfer from one vehicle to another vehicle operated by either the same company or a different company before reaching the ending point.

     "Contract carrier" means a person holding a certificate issued by the commission authorizing transportation of passengers under special and individual contracts or agreements.

     "Customer" means a person who purchased transportation services from an auto transportation company.

     "Direct route" means an auto transportation company service over a route that goes from the beginning point to the ending point with limited, if any, stops along the way, and traveling only to points located on the specific route without requiring a passenger to transfer from one vehicle to another.

     "Discontinuance of service":

     (a) "Permanent discontinuance of service" means that a company holding auto transportation authority issued by the commission is unable to continue to provide all, or part of, the service authorized by the company's certificate, filed tariff, or filed time schedule and requests commission permission to permanently discontinue all, or part of, its service and relinquish that certificate or portion of that certificate. See WAC 480-30-186.

     (b) "Temporary discontinuance of service" means that a company holding auto transportation authority issued by the commission is unable to continue to provide all, or part of, the service authorized by the company's certificate, filed tariff, or filed time schedule and requests commission permission to discontinue all, or part of, its service for a specified, limited period of time.

     "Door-to-door service" means an auto transportation company service provided between a location identified by the passenger and a point specifically named by the company in its filed tariff and time schedule.

     "Excursion service carrier" or "excursion carrier" means every person engaged in the transportation of persons for compensation over any public highway in the state from points of origin within any city, town, or area, to any other location within the state of Washington and returning to that origin. The service will not pick up or drop off passengers after leaving and before returning to the area of origin. The excursions may or may not be regularly scheduled. Compensation for the transportation offered must be computed, charged, or assessed by the excursion service company on an individual fare basis.

     "Express freight/package service" means transportation of freight and packages, other than packages or baggage carried or checked by passengers, offered by a passenger transportation company.

     "Express passenger service" means auto transportation company service provided between fixed points or stations with few, if any, stops along the route, and is designed to get passengers from origin to destination more quickly than normally scheduled passenger service.

     "Federal Motor Carrier Safety Administration" means an agency of the United States Department of Transportation (USDOT) and successor agency to the former Interstate Commerce Commission.

     "Filing" means any application, petition, tariff proposal, annual report, comment, complaint, pleading, or other document submitted to the commission.

     "Fixed termini" means points of origin and destination that are set, static locations or defined geographic areas. Examples include a city or town, a building or an airport. In addition "fixed termini" can include service between an airport and unlimited points within a defined geographic area.

     "Flag stops" means a point along an auto transportation company's normally traveled routes where the company stops only if it receives notification that a passenger wishes to board the vehicle at that point. An auto transportation company must list available flag stops in the company's tariffs and time schedules. Flag stops may only be named at points that provide waiting passengers safe access to the vehicle.

     "Group" means:

     (a) Two or more passengers traveling together;

     (b) A class of passengers to whom special rates and/or rules apply. For example, active military personnel.

     "Intermediate point" means a point located on a route between two other points that are specifically named in an auto transportation company's certificate or tariff.

     "Intermediate service" means service to an intermediate point.

     "Interruption in service" means a period of time during which an auto transportation company cannot provide service listed in its certificate, its filed tariff, or its filed time schedule. An interruption in service is normally short lived, lasting no more than a few hours or a few days.

     "Leasing":

     (a) "Leasing authority" means one auto transportation company allowing another person to operate all, or a portion, of the authority granted to the first company by the commission. A joint application to, and approval from, the commission is required to lease authority. See WAC 480-30-141.

     (b) "Leasing equipment" means the act of a passenger transportation company to supplement its fleet by acquiring a vehicle(s) from a third party for a specified period of time under contract. See WAC 480-30-236.

     "Motor vehicle" or "vehicle" means:

     (a) As related to auto transportation companies: Every self-propelled vehicle used on the public highways, for the transportation of persons for compensation.

     (b) As related to charter and excursion carriers: Every self-propelled vehicle with a manufacturer's seating capacity for eight or more passengers, including the driver, used on the public highways, for the transportation of persons for compensation.

     "Named points" means cities, towns, or specific locations that are listed in an auto transportation company's certificate, tariff, or time schedule.

     "Nonstop service" means transportation of passengers from point of origin to point of destination without stopping at any intermediate points.

     "On-call service" means unscheduled auto transportation company service provided only to those passengers that have by prior arrangement requested service prior to boarding.

     "Passenger facility" means a location at which an auto transportation company stations employees and at which passengers can purchase tickets or pay fares for transportation service.

     "Passenger transportation company" means an auto transportation company or charter and excursion carrier.

     "Person" means an individual, firm, corporation, association, partnership, lessee, receiver, trustee, consortium, joint venture, or commercial entity.

     "Premium service" means a type of service provided by an auto transportation company that is outside normal service. Examples include express service, direct route service, and nonstop door-to-door service.

     "Private carrier" means a person who transports passengers in the person's own vehicle purely as an incidental adjunct to some other established private business owned or operated by that person in good faith.

     "Private motor vehicle" means a vehicle owned or operated by a private carrier.

     "Public highway" means every street, road, or highway in this state.

     "Public transit agency" means a municipal corporation or agency of state or local government formed under the laws of the state of Washington for the purpose of providing transportation services including, but not limited to, public transportation benefit areas, regional transit authorities, municipal transit authorities, city and county transit agencies.

     "Residence" means the regular dwelling place of an individual or individuals.

     "Route" means a highway or combination of highways over which an auto transportation company provides passenger service. There are two types of routes:

     (a) "Irregular route" means travel between points named in an auto transportation company's certificate via any highway or combination of highways the company wishes to operate over. The certificate issued to the company does not list highways to be used, but the company defines routes in its tariffs and time schedules.

     (b) "Regular route" means an auto transportation company providing passenger transportation over a route named in the certificate issued to the company by the commission.

     "Scheduled service" means an auto transportation company providing passenger service at specified arrival and/or departure times at points on a route.

     "Single contract" means an agreement between a charter carrier and a group of passengers to provide transportation services at a set price for the group or trip. Under a single contract, passengers are not charged individually.

     "Small business" means any company that has fifty or fewer employees.

     "Special or promotional fares" means temporary fares for specific services offered for no more than ninety days.

     "State" means the state of Washington.

     "Subcontracting - auto transportation company" means that an auto transportation company holding authority from the commission contracts with a second auto transportation company to provide service that the original company has agreed to provide, but finds it is unable to provide. See WAC 480-30-166.

     "Subcontracting - charter and excursion carrier" means that a charter and excursion carrier holding authority from the commission contracts with a second charter and excursion carrier to provide service that the original carrier has agreed to provide, but finds it is unable to provide.

     "Substitute vehicle" means a vehicle used to replace a disabled vehicle for less than thirty days.

     "Suspension" means an act by the commission to temporarily revoke a company's certificated authority; or an act by the commission to withhold approval of an auto transportation company's tariff filing.

     "Tariff" or "tariff schedule" means a document issued by an auto transportation company containing the services provided, the rates the company must assess its customers for those services, and the rules describing how the rates apply.

     "Tariff service territory" means a company-defined geographic area of its certificated authority in which a specific tariff applies.

     "Temporary certificate" means the certificate issued by the Washington utilities and transportation commission under RCW 81.68.046 to operate as an auto transportation company for up to one hundred eighty days or pending a decision on a parallel filed auto transportation company certificate application.

     "Temporary certificate authority" means the territory and services granted by the commission and described in an auto transportation company's temporary certificate.

     "Ticket agent agreements" means a signed agreement between an auto transportation company and a second party in which the second party agrees, for compensation, to sell tickets to passengers on behalf of the auto transportation company. See WAC 480-30-391.

     "Time schedule" means a document filed as part of an auto transportation company's tariff, or as a separate document, that lists the routes operated by the company including the times and locations at which passengers may receive service and any rules specific to operating those routes.

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     (a) Electronic maps. An auto transportation company may file an electronic map that is compatible with the commission's hardware and software. Before filing its map electronically, a company must contact the commission to determine whether its mapping software is compatible with that used by the commission.

     (b) Paper maps. An auto transportation company may file a paper map or combination of paper maps using:

     (i) Official state highway maps or comparable highway maps;

     (ii) United States Geological Survey (USGS) maps at a scale of 1:250,000;

     (iii) United States Geological Survey (USGS) maps at a scale of 1:24,000, when necessary to clearly resolve any inconsistencies or to reflect local service territories.

     (c) Availability of maps. USGS maps are available through the Washington state department of natural resources and various private vendors. The official state highway map is available from the Washington state department of transportation.

     (2) Map detail. Any map submitted to the commission must:

     (a) Clearly show counties, cities, freeways, highways, roads, streets, county lines, and any other feature described in the application or certificate;

     (b) Be clearly labeled to identify the features described in the certificate;

     (c) Have a north arrow;

     (d) Have a map legend briefly describing the features on the map;

     (e) Have a scale bar showing the distance on the map equal to a defined number of feet, miles or other unit; and

     (f) Have a title box that includes the company's name as shown on the company's auto transportation certificate, the company's registered trade name, the identification number of the filing to which the map applies, and a contact name and phone number.

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     (2) Retention schedule table. The following schedule shows periods that auto transportation companies must preserve various records.

Type of Record:	Retention Period:
1. Original certificate	Until cancellation.
2. Contracts and agreements: (a) Service contracts (management, accounting, financial or legal services)	Until expiration or termination plus three years.
(b) Contracts with employees and employee groups	Until termination plus one year.
(c) General contracts, leases and agreements	Until termination plus one year.
3. Long-term debt records: Bond indentures, underwritings, mortgages, and other long-term credit agreements	Until redemption plus three years.
4. General and subsidiary ledgers and indexes	Until discontinuance of use plus three years.
5. General journals	Until discontinuance of use plus three years.
6. General cash books	Until discontinuance of use plus three years.

     (3) Customer service records. An auto transportation company must maintain complete and accurate customer service records.

     (a) Company service records include, but are not limited to:

     (i) Daily trip records, by route or by unit of equipment, that show:

     (A) The schedules operated;

     (B) The number of passengers carried on each schedule;

     (C) The point each passenger boarded and disembarked from the vehicle;

     (D) The fare charged each customer (for example full-fare, children's fare, round-trip fare, free or reduced fare);

     (E) Any condition causing the vehicle to deviate from the company's filed time schedule by more than thirty minutes. For example, traffic backed up at an accident site, inclement weather, or equipment failure.

     (ii) Records of revenues received.

     (iii) Bills or invoices issued.

     (iv) Records of all reservations.

     (v) Records of all tickets issued.

     (vi) Records of all passenger service provided at free and/or reduced rates.

     (b) Customer service records must be kept on file in the general office of the company for at least three years and are subject to commission inspection.

     (c) Customer service records must be kept in chronological, numerical, or service route order.

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     (2) A passenger transportation company operating under the provisions of this chapter may transport property in the same motor vehicles that it uses to transport passengers without any additional authority or permits from this commission.

     (3) When transporting property in a motor vehicle with passengers, the company must ensure that property may be safely and conveniently carried without causing discomfort to the passengers and that it is of an amount that does not disturb the convenience, speed and other essential qualities of the passenger service.

     (4) If a passenger transportation company transports property in motor vehicles other than those used to transport passengers under this chapter, then the company must ensure that its operations comply with the motor freight carrier requirements, including permits, insurance, driver, and equipment safety provisions established for property carriers under chapters 81.80 RCW and 480-14 WAC.

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     (a) The USOA defines accounting, financial, and other procedures the commission uses to determine if rates are fair, just, reasonable, and sufficient.

     (b) The USOA contains accounting definitions, listings, and explanations of balance sheet and income statement accounts.

     (2) The commission recommends companies maintain their financial and accounting records according to the USOA. Regardless of what accounting system a company uses, the company must maintain its books and records in a manner sufficient to complete the commission-issued annual report form, using figures that reconcile with the USOA.

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     (a) Each year the commission provides an annual report form and instructions to each company at its address of record. Failure to receive the form does not relieve a company of its obligation to complete and file its annual report. A company that does not receive an annual report form must contact the commission to obtain a copy of the form.

     (b) A company must file a complete, accurate annual report showing all requested information by May 1 of the succeeding year. Information provided on the annual report must agree with source documents maintained at company offices.

     (c) The commission may grant an extension of time allowing the company to file its annual report after the May 1 due date if the commission receives a request for extension before May 1.

     (d) The commission may issue penalty assessments or take action to suspend or cancel a certificate if a company fails to file its required annual report.

     (e) A company selling, canceling, transferring, or in some other manner discontinuing operations must submit an annual report for that portion of the year in which the company operated.

     (2) Charter and excursion carrier annual safety reports. An annual safety report is a summary of motor vehicle and safety operating information that each charter and excursion carrier is required to file with the commission.

     (a) Each year the commission provides an annual safety report form and instructions to each company at its address of record. Failure to receive the form does not relieve a company of its obligation to complete and file its annual safety report. A company that does not receive an annual safety report form must contact the commission to obtain a copy of the form.

     (b) A company must file a complete, accurate annual safety report showing all requested information by December 31 of each year. Information provided on the annual safety report must agree with source documents maintained at company offices.

     (c) The commission may grant an extension of time allowing the company to file its annual safety report after the December 31 due date if the commission receives a request for extension before December 31.

     (d) The commission may issue penalty assessments or take action to suspend or cancel a certificate if a company fails to file its required annual safety report.

     (3) Other reports. The commission may require a company to file periodic or other special reports.

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     (1) Auto transportation company regulatory fees. The maximum auto transportation company regulatory fee is set by statute at two-fifths of one percent of gross intrastate operating revenue.

     (a) The maximum regulatory fee is assessed each year, unless the commission issues an order establishing the regulatory fee at an amount less than the statutory maximum.

     (b) The minimum fee that an auto transportation company must pay is twenty dollars.

     (c) The twenty dollar minimum regulatory fee is waived for any auto transportation company with less than five thousand dollars in gross intrastate operating revenue.

     (d) Each auto transportation company must pay its regulatory fee by May 1 of each year.

     (2) Charter and excursion carrier regulatory fees. The charter and excursion carrier regulatory fee is established by commission order.

     (a) The minimum fee a charter and excursion carrier must pay is the amount established for a single vehicle.

     (b) Each charter and excursion carrier must pay its regulatory fee on or before December 31 of each year to cover the ensuing year beginning February 1.

     (3) Extension of time to pay regulatory fees. The commission cannot grant extensions for payment of regulatory fees.

     (4) Penalties for late fees. If a company does not pay its regulatory fee by the due date established in this rule, the commission will assess an automatic late fee of two percent of the amount due, plus one percent interest for each month the fee remains unpaid.

     (5) The commission may take action to suspend or cancel a certificate, if a company fails to pay its regulatory fee.

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     (a) Fifteen cents for each one hundred vehicle miles; or

     (b) Twenty cents for each one hundred vehicle miles if the vehicle is propelled by steam, electricity, natural gas, diesel oil, butane, or propane.

     (2) The commission transmits mileage fees collected under the provisions of RCW 46.16.125 to the state treasurer to be deposited in the motor vehicle fund.

     (3) If a company fails to pay the mileage fees, the company is subject to a penalty of one hundred percent of the payment due.

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     (2) Company name. The company name is the name of the certificate holder.

     (a) A company electing to conduct operations under a trade name must first register the trade name with the commission.

     (b) A company must conduct all operations under the company name, a registered trade name, or both. The term "operations" includes, but is not limited to advertising, ticketing, and identifying vehicles.

     (c) A company may not operate under a company name or trade name that is similar to that of another company if use of the similar name misleads the public or results in unfair or destructive competitive practices.

     (3) Display. A company must keep its original certificate on file at its principal place of business open to inspection by any customer, law enforcement officer, or authorized commission representative who asks to see it.

     (4) Replacement. The commission will replace a lost or destroyed original certificate at no charge.

     (5) Description of certificated authority. When a company's certificate authority includes boundaries such as cities, towns, streets, avenues, roads, highways, townships, ranges or other descriptions, the boundaries remain established as they existed at the time the commission granted the authority.

     (6) Operating within certificated authority.

     (a) A company must operate strictly within the authority described in its certificate.

     (b) The commission may take administrative action against a company operating outside its certificated authority. Refer to WAC 480-30-241 for information regarding the commission's compliance policy.

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     (2) The commission establishes the following fees for application filings:

Auto transportation company certificate application		$200
	Application for certificate to provide regular route or fixed termini service. Forms include: Application for new certificate, to reinstate a previously canceled certificate, to transfer all or a portion of a certificate to a new owner or business structure, to lease all or a portion of a certificate. Note: Auto transportation company certificates include statewide charter and excursion carrier service. No additional application is required.
Auto transportation company certificate extension application		$150
	Application for extension of certificate authority to add new or additional regular route or fixed termini service to an existing auto transportation certificate.
Auto transportation company temporary certificate application		$150
	Application for new temporary authority or temporary authority to operate pending a commission decision on a parallel filed certificate application.
Charter and excursion carrier certificate application		$200
	Application for single certificate to provide both charter and excursion carrier service statewide. Forms include: Application for new certificate, to reinstate a previously canceled certificate, to transfer an existing certificate to a new owner or business structure.
Certificate name change application		$35
	Application to change a company's corporate name, change a trade name, add a new trade name, or change the surname of an individual owner or partner.
Auto transportation company certificate mortgage application		$35
	Application for permission to mortgage or otherwise encumber an auto transportation company certificate.

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     (2) Applications must include all requested information, attachments, signed statements, and filing fees.

     (a) The commission may reject or defer consideration of an application until the applicant provides all required information;

     (b) The commission may reject or defer consideration of an application until the applicant pays any outstanding fees, fines, or penalties; or

     (c) The commission may reject or dismiss an application if it includes false, misleading, or incomplete information.

     (3) Applications for auto transportation certificate authority must include, but are not limited to:

     (a) A complete description of the proposed service including the line, route, or service territory described in terms such as streets, avenues, roads, highways, townships, ranges, cities, towns, counties, or other geographic descriptions;

     (b) A map of the proposed line, route, or service territory that meets the standards described in WAC 480-30-051;

     (c) A statement of the applicant's assets and liabilities;

     (d) A proposed tariff and time schedule;

     (e) A statement of conditions that justify the proposed service;

     (f) Ridership and revenue forecasts for the first twelve months of operation;

     (g) A pro forma balance sheet and income statement for first twelve months of operation;

     (h) A list of equipment to be used in providing the proposed service; and

     (i) A statement of the applicant's prior experience and familiarity with the statutes and rules that govern the operations it proposes.

     (4) The provisions of this rule do not apply to applications for auto transportation company certificate authority to provide intrastate service over an interstate regular route under a federal grant of authority. Refer to WAC 480-30-101.

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     (2) A company operating under a federal grant of authority must comply with state filing requirements no later than thirty days after the date the company first begins providing transportation entirely within the state.

     (3) The commission will grant an auto transportation company application for certificate consistent with the federal grant of authority and limited to intrastate operations that are conducted together with regularly scheduled interstate operations on the same route.

     (a) An application for a certificate filed under the provisions of this rule must be submitted on forms provided by the commission and accompanied by the required auto transportation company certificate application filing fee in WAC 480-30-091.

     (b) A copy of the federal order granting authority and any other documents or correspondence relevant to the federal grant of authority must accompany the application.

     (c) The application may be published on the commission's application docket for informational purposes only, but is not subject to protest by any party.

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     (2) Content of notice. Notice may be accomplished by filing a letter with the commission. The letter must include at least the following information:

     (a) The name, registered trade names, and certificate number of the acquired company.

     (b) The date of acquisition.

     (c) The names of the majority stockholders and the percent of stock each holds.

     (d) The name, address, telephone number, fax number, and e-mail address of a contact person within the company to whom questions may be directed.

     (e) The location (mailing address and physical address) where books and records of the acquired company will be retained.

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     (2) This rule does not apply to applications for auto transportation company certificates under a preemptive federal grant of authority to provide intrastate service over an interstate route.

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     (a) New certificate authority.

     (b) Extension of existing certificate authority.

     (c) Transfer or lease of all or a portion of certificate authority.

     (2) Protests. An existing auto transportation company certificate holder may file a protest to an application published in the application docket.

     (a) Form of protests. Protests must:

     (i) Be filed within thirty days of the date the commission mailed the application docket.

     (ii) Be filed according to the provisions of WAC 480-07-370.

     (iii) Be served on the applicant and the applicant's attorney, if one is identified in the application docket.

     (iv) Specify the reasons for the protest.

     (v) Specify the protestant's interest in the proceeding.

     (vi) Specify the approximate number of witnesses the protestant intends to present and an estimate of hearing time required for the protestant's presentation;

     (vii) Include the name and address of each person on whose behalf the protest is filed including that person's certificate number, a copy of the certificate authority, and identification of the portion or portions of the protestant's certificate that is the basis for the protest.

     (viii) Describe any restrictive amendment that could eliminate the protestant's interest in the application.

     (b) Failure to file protest on time. A person who fails to file a protest within the thirty-day protest period may not in any way participate further in the proceeding, unless that person can show that the commission did not provide proper notice of the pending application, or that good cause exists for the failure to make a timely protest.

     (3) Intervention. Any person, other than the applicant and protestants to an application, who desires to appear and participate, and who does not desire to broaden the issues of the proceeding, may petition to be an intervener. Refer to WAC 480-07-355 for information on intervention.

     (4) Applications not subject to the docket and protest provisions of this rule. This rule does not apply to:

     (a) Applications for charter and excursion carrier certificates;

     (b) Applications to reinstate a certificate canceled for cause under the provisions of WAC 480-30-181, when the application is filed within thirty days of the certificate cancellation date;

     (c) Applications for name change;

     (d) Applications to mortgage an auto transportation company certificate;

     (e) Applications for an auto transportation company certificate under a federal grant of authority to provide intrastate service over an interstate route; and

     (f) Applications for temporary certificate authority.

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     (2) The commission will issue to any qualified applicant a certificate to provide charter and excursion carrier services in Washington upon receipt of:

     (a) A complete application filing as required by WAC 480-30-096;

     (b) Proof of insurance as required by WAC 480-30-191; and

     (c) Proof of a passing Commercial Vehicle Safety Alliance (CVSA) safety inspection of each motor vehicle to be operated by the applicant under its certificate.

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     (2) The commission must determine that the public convenience and necessity requires the proposed service when considering an application for a new certificate or extension of an existing certificate.

     (3) Auto transportation company certificate applications are subject to the application docket notice and protest provisions of WAC 480-30-116.

     (4) The commission may set for hearing any auto transportation company certificate application.

     (5) The commission must provide the opportunity for a hearing and determine that an existing auto transportation company is not providing service to the satisfaction of the commission before it may grant a new certificate or extension of an existing certificate to provide service in a territory already served by another auto transportation company, unless the existing auto transportation company or companies do not object to the application by filing a protest under the provisions of WAC 480-30-116.

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     (a) The authority requested in the applications overlaps in whole or in part; and

     (b) The subsequent application was filed within thirty days of the date the initial application appears on the application docket.

     (2) Applications for overlapping authority not filed within thirty days after the initial application appears on the application docket will be decided after the conclusion of proceedings resolving the initial application and any other application qualifying for joint consideration.

     (3) When applications consolidated by the commission for joint consideration also contain requests for territory or services not overlapping that requested i