Certificate of convenience

Definition

In some states the right to haul is a granted franchise, not a registration you file for.

Why It Matters

Washington is the case a buyer should know. Hauling solid waste for compensation there requires a certificate declaring that public convenience and necessity require the operation, and advertising or even offering the service without one is included in the prohibition. The commission then fixes the rates and the classifications, so the price is not the operator's to set, and it may require certificate holders to deliver covered materials only to responsible markets. The certificate can be sold like property, but only if the commission authorizes it, and a stock purchase still owes written notice within thirty days including where the books will be kept.