FINAL BILL REPORT

ESSB 5338

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

C 218 L 17

Synopsis as Enacted

Brief Description: Concerning registration enforcement for off-road vehicles and snowmobiles.

Sponsors: Senate Committee on Transportation (originally sponsored by Senators Wilson and Takko).

Senate Committee on Transportation

House Committee on Transportation

Background: Off-Road Vehicles. Off-road vehicles (ORVs) are vehicles that are used for recreational purposes on nonhighway roads, trails, and other natural terrain. To drive an off-road vehicle (ORV) in the state of Washington a person must either title and register their ORV or, if a nonresident, pay for a temporary ORV use permit with the Department of Licensing (DOL). A temporary use permit is valid for 60 days and must be carried on the vehicle at all times during its operation in this state. To receive a title on an ORV the following may be needed:

At the time of application of title, the DOL will also require the owner to pay state and local use tax on the vehicle, based on the selling price, if the owner has not already paid sales tax on the vehicle at the time of purchase. After titling and registration, the DOL must then issue the ORV decals and an ORV registration.

It is a traffic infraction if a person operates an ORV in a way that endangers property or that is not in line with the lawful equipment description of an ORV as outlined in Washington state law. A person who operates a nonhighway vehicle in a way that endangers human life, or in a way to harass any wildlife or animal, is guilty of a gross misdemeanor.

Off-road vehicle registrations and decals are not required for those that are:

The application for an original or renewal ORV registration has the same requirements as vehicles and must be accompanied by the annual off-road vehicle license fee. The ORV registration is valid for one year. A person has 15 days after taking possession of the ORV to transfer the title and registration.

Snowmobiles. Snowmobiles are self-propelled vehicles capable of traveling over snow and ice. No title is required of Washington residents who purchase or bring in snowmobiles to the state. However, like with ORVs that are purchased without sales tax, use tax is due when the vehicle is acquired or first brought into the state. To operate a snowmobile in the state of Washington the owner must register with the DOL. There is no fee for snowmobile decals used by the state of Washington, or a Washington State a municipality, or a political subdivision. An application for a nonresident temporary snowmobile permit must be made to the DOL for those who are not residents of the state of Washington but wish to drive their snowmobile in this state. Nonresident snowmobile permits are available to residents of Canada or another state where registration is not required, are valid for not more than 60 days and must be carried on the snowmobile at all times during operation in this state.

A snowmobile registration is not required if:

A snowmobile that is validly registered in another state or province and is physically located in this state for more than 15 consecutive days is subject to registration. The snowmobile registration is valid for one year.

Motorsport Vehicle Manufacturers. State law regulates the franchise relationship between motorsport vehicle manufacturers and dealers. A motorsport vehicle is an umbrella term that includes motorcycles, mopeds, motor-driven cycles, personal watercraft, snowmobiles, and four-wheeled ATVs. Among the regulatory provisions are requirements concerning warranty work conducted by dealers and the manufacturers' responsibilities to compensate for such work.

Summary: Beginning in February 2018, motorsports vehicle manufacturers are required to report annually to the DOL a listing of all warranties for ORVs and snowmobiles that are registered to Washington residents but were sold by out-of-state dealers in the previous calendar year. An administrative fine of $100 per day must be assessed to any manufacturer that fails to submit the required listing of warranties to the DOL by the first business day in February. The report must be transmitted in a way so that the DOL receives it no later than the last day of February. The State Treasurer is directed to deposit the fines to the Nonhighway and Off-Road Vehicle Activities Program account and to the Snowmobile account in proportion to the number of ORV and snowmobile registrations in the preceding calendar year. The DOL must examine the listing to verify whether the vehicles are properly registered. By the end of February of each year, the DOL must notify the owners of the warranties of the ORVs and snowmobiles that are not properly registered of the owner's obligations under state law, as well as the penalties for failure to comply with the law. The DOL must send notification of legal obligations by certified mail.

If an owner of a snowmobile fails to act on registering, or an ORV owner fails to apply for a certificate of title and register, within 15 days of receiving a notice from the DOL that the vehicle is not properly registered under state law the owner is guilty of a misdemeanor. In situations where a person obtains a permit, temporary or otherwise, for use of an ORV or snowmobile in another state, in order to avoid Washington taxes and fees, the person is also guilty of a gross misdemeanor.

Votes on Final Passage:

Senate

49

0

House

92

5

(House amended)

Senate

47

0

(Senate concurred)

Effective:

August 1, 2017