April 15, 2009

OLYMPIA, Wash. – Gov. Chris Gregoire has signed two bills that will strengthen the state’s enforcement authority against unregistered and illegal household moving companies.

House Bill 1536 (HB 1536), sponsored by Rep. Judy Clibborn, D-Mercer Island, prohibits movers from advertising and providing services without first obtaining a permit from the Washington Utilities and Transportation Commission (UTC). The bill expands the definition of household goods carriers to include those that use advertisements or Web sites to promote their illegal residential moving company.

Substitute House Bill 1843 (SHB 1843), sponsored by Rep. Ruth Kagi, D-Shoreline, and jointly requested by the UTC and the Washington State Patrol (WSP), requires moving trucks or vans and other UTC-inspected vehicles to obtain a registration number from the United States Department of Transportation (USDOT) by Jan. 1, 2010. Under the new law, the UTC can place a USDOT number out- of-service through the WSP for safety violations, failure to pay penalties or for a violation of a cease-and-desist order.

Both bills become effective 90 days after the end of the current legislative session.

“Illegal moving companies have a long history of ripping off customers,” said UTC Chairman Jeff Goltz. “They overcharge customers, ignore damage claims, and give the legitimate industry a bad name. These bills give us better tools to enforce the laws and protect the public.”

Under current law, the UTC can take action against an illegal mover only if it obtains proof that the company provided moving services – usually a contract or bill and proof of payment by the customer. This has created problems because illegal movers often demand cash payment and many consumers are unwilling to provide documents or testify against an illegal mover for fear of retribution. Moreover, because UTC-regulated vehicles are not currently in the USDOT database, WSP cannot readily obtain information about the vehicle’s registration, insurance or safety record.

Under the new law, the UTC can meet its burden of proof by showing that the unlicensed company advertised moving services. It can then provide this information directly to the USDOT and WSP.

The UTC is the state’s watchdog agency in charge of setting rates, enforcing consumer protection and safety regulations for more than 200 residential moving companies operating within Washington. Moving companies are required to register and obtain a permit from the UTC before conducting business. Movers must charge proper rates, carry insurance on a customer’s property and keep their vehicles safety maintained. The commission does not regulate interstate moving companies.