HOUSE BILL REPORT

SSB 6614

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Warnke and Lee)

Permitting vessel dealers to file security in lieu of bond for registration purposes.

House Committe on Transportation

Majority Report:  Do pass.  (25)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cooper, Day, Doty, Fisher, Fox, Gallagher, Hankins, Haugen, Heavey, Jacobsen, Jones, Kremen, Meyers, Patrick, Prince, Schmidt, Smith, D. Sommers, Todd, Vekich, J. Williams and S. Wilson.

House Staff:Terry Michalson (786-7315)

AS REPORTED BY COMMITTEE ON TRANSPORTATION FEBRUARY 23, 1988

BACKGROUND:

Recent changes to vessel dealer registration requirements included a $5,000 surety bond payable to the state to be filed by the dealer.  There has been some concern among vessel dealers that the bonding process is expensive, and an alternative method of providing protection to the public should be available.  Surety bonds are also required of registered motor vehicle dealers.

SUMMARY:

A dealer may deposit $5,000 cash in lieu of a bond.  Specific methods of making a claim against the cash, issuing notices, and making payments are provided.  Failure to maintain the cash will result in the registration being revoked.  Cash deposits may not be used for any other security purpose.

Fiscal Note:      Available.

House Committee ‑ Testified For:    George Prescott, Northwest Marine Trade Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There have been some problems experienced by vessel dealers in obtaining surety bonds.  If a dealer has had a financial problem in the past, a bonding company may elect to not issue a bond.  Insurance companies are also hesitant to issue surety bonds to vessel dealers.  With a cash deposit security alternative to a surety bond, these problems would be eliminated.

House Committee - Testimony Against:      None Presented.