HOUSE BILL REPORT

                      HB 2024

                     As Reported By House Committee on:

                               Transportation

Title:  An act relating to motor vehicle title and registration services performed by counties.

Brief Description:  Subsidizing county losses involved in vehicle title and registration activities.

Sponsor(s):  Representatives R. Fisher and Cooper.

Brief History:

   Reported by House Committee on:

Transportation, March 8, 1991, DPS.

HOUSE COMMITTEE ON

TRANSPORTATION

Majority Report: That Substitute House Bill No. 2024 be substituted therefor, and the substitute bill do pass.  Signed by 27 members:  Representatives R. Fisher, Chair; R. Meyers, Vice Chair; Betrozoff, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Basich; Brough; Cantwell; Cooper; Day; G. Fisher; Forner; Haugen; Heavey; Horn; P. Johnson; R. Johnson; Jones; Kremen; Mitchell; Nelson; Orr; Prentice; Prince; Schmidt; Wilson; Wood; and Zellinsky.

Staff:  Brad Lovaas (786-7307).

Background:  A finding in the Legislative Transportation Committee-mandated, Department of Licensing-conducted title and registration study was that all counties were not raising enough revenue to cover their costs of operation.

Specifically, small counties were not able to cover costs while larger counties covered their costs, and, in some cases, made substantial profits which are deposited in the counties' general expense funds.  Nine counties lose a total of $130,000 a year.

Summary of Substitute Bill:  The method of generating revenue for reimbursing those counties that lose moneys for performing title and registration activities is changed.  Two cents on each transaction performed by a county will be deposited in the Motor Services Account (MSA).  The MSA is a non-appropriated account used exclusively for reimbursing counties that do not recover their costs for title and registration activities.  Any moneys left in the account are to be reimbursed on a pro rata basis to the counties.

Substitute Bill Compared to Original Bill:  Changes are made in the method of generating revenue for reimbursing counties that lose moneys for performing title and registration activities.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  All counties should be made whole for performing title and registration duties on behalf of the state.

Testimony Against:  None.

Witnesses:  George Walk, Pierce County/King County; and Karen Flynn, Kitsap County Auditor.