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House rejects bill to guarantee profit margins for intrastate motor carriers
Summary
Lawmakers debated House Bill 138, a measure sponsors said would stabilize intrastate motor carriers by establishing a 7% profit standard and rate-making framework; opponents called it a return to regulation and legalizing price-fixing. The bill failed, 29-41.
House lawmakers voted down House Bill 138 on Feb. 5, 1991, after an hour of debate over whether the measure would protect a struggling motor-carrier industry or amount to a return to price regulation.
Sponsor Representative Greensides said the bill responds to an industry in distress and told colleagues the Public Service Commission provided figures showing ‘‘23% of the carriers within the state of Utah are operating over 100% operating ratio,’’ with only a minority operating profitably. Greensides argued a profitability standard of about 7% was needed ‘‘in order to maintain all the safety factors and pay all of his taxes and licensing as required by law.’’
Opponents said the bill goes too far. Representative Wallops said the legislation risks ‘‘legalizing price fixing’’ and effectively mandates a 7% profit. Representative Fox warned the measure represents ‘‘one step back to reregulation’’ and questioned whether the Public Service Commission and Tax Commission were the appropriate drivers of the measure. Fox also noted the committee numbers cited were not limited to regulated carriers and urged colleagues to vote against the bill.
After discussion and summations, the House closed the roll. House Bill 138 received 29 affirmative votes and 41 negative votes and failed to pass the chamber. The bill will not move forward from this House vote.
The vote leaves intact the current rate-making framework pending any future proposal; no further procedural action on HB 138 was recorded during this session.
