Agenda Date: May 24, 2000 Item Number: Docket: TV-991559 Household Goods Carriers General -- Rulemaking Review of Commission’s rules Relating to Household Goods Carriers in Chapter 480-15 of the Washington Administrative Code. Staff: Bonnie Allen, Program Coordinator Paul Curl, Deputy Director Regulatory Services Gene Eckhardt, Assistant Director of Transportation and Water M. Carlene Hughes, Program Coordinator Marjorie Schaer, Review Judge Ann Rendahl, Assistant Attorney General Recommendation: Adopt, amend, and repeal the attached provisions in Chapter 480-15 WAC, Rules Relating to Motor Carriers of Household Goods. Discussion: The Commission filed a Pre-Proposal Notice of Inquiry (CR-101) with the Code Reviser’s Office on October 28, 1999, to initiate a review of Chapter 480-15 WAC, rules relating to motor carriers of household goods. The inquiry was an opportunity to gather information from staff and stakeholders about rules that had been in effect since January 15, 1999, including how those rules were working and if changes, additions, or deletions were appropriate to ensure that the rules were effective in serving their intended purpose. The rulemaking process consisted of soliciting written comments from all stakeholders and other interested persons. In addition to written comments, the Commission held a stakeholder workshop on December 9, 1999. The workshop was attended by representatives of the household goods moving industry, self-storage industry, independent movers, and Office of State Procurement. Staff appreciates their participation in this process. Following the workshop, staff has held numerous informal discussions with interested persons to resolve outstanding concerns. Staff prepared a draft and proposed the following changes to existing rules in Chapter 480-15 WAC: • Revise the statement of purpose and application in WAC 480-15-010 to clarify that household goods carriers must comply with other state laws, including tax and licensing laws. • Revise the definition of household goods in WAC 480-15-020(14) to limit the transportation of self-storage containers between self-storage facilities and their customers, in conjunction with a self-storage agreement. • Revise the definition of a motor vehicle in WAC 480-15-020(21) to state that a motor vehicle is not a self-storage container. • Repeal WAC 480-15-030, Waiver of rules, and replace it with WAC 480-15-035, Exemption from rules. The new rule has alternate language that more clearly describes the filing and review process for seeking exemptions from rule. • Clarify the exceptions to the permanent authority application process in WAC 480-15-260 and include additional circumstances under which exceptions may be allowed. • Revise the rate band in WAC 480-15-490 to establish a new maximum rate with an annual review and adjustment of that maximum rate according to an index for the next five years. • Revise the rate band in WAC 480-15-490 to establish a new minimum rate based on a percentage of the initial maximum rate. The new minimum rate will be fixed, and will not change as the maximum rate is adjusted. • Revise the term “commercial vehicle” in WAC 480-15-560 and WAC 480-15-570 to ensure that federal safety regulations are applied consistently to intrastate and interstate vehicles and drivers. Eliminate reference to compliance with hazardous materials regulations that do not apply to household goods carriers. • Replace the “text” of the Commission’s consumer brochure in WAC 480-15-620 with a description of the brochure’s contents. • Reduce the record retention period for estimates provided to customers in WAC 480-15-650 and include additional disclosure regarding rates on supplemental estimates. • Revise WAC 480-15-660 to clarify when a company must provide a supplemental estimate to a customer and the rate that may be used on the supplemental estimate. • Include a provision in WAC 480-15-740 to allow companies an alternative to recording on the bill of lading the details for each person on a job. Following consideration at its open public meeting on April 12, 2000, the Commission directed the Secretary to file a Notice of Proposed Rulemaking (CR-102) with the Code Reviser. A copy of the CR-102 and proposed rules were sent to all household goods permit holders, rulemaking stakeholders, and other interested persons for comment on April 21, 1999. One individual filed comments in response to the CR-102. A summary of those comments and staff’s reply to each is attached. Ms. Shelby Gilje, a staff columnist, for the Seattle-Times, published her suggestions for the Commission’s rulemaking in her April 23, 2000, column after completing a consumer piece on household goods moving for the Times Troubleshooter. Staff agrees with the suggestion that the Commission establish a standard format for estimates, but does not believe this format should be established by rule. Rates, charges, and valuation options are all established in the household goods tariff published by the Commission. We also establish the format for the uniform bill of lading in the tariff, and staff believes it is appropriate to include a standard format for estimates in the tariff. Establishing a uniform estimate format in the tariff would be consistent with current practice and allow more flexibility in amending the format if necessary to react quickly to consumer protection needs. The suggestion will be included as a discussion item for consideration in the revisions to the household goods