HOUSE BILL REPORT

                      HB 2660

                     As Reported By House Committee on:

                               Transportation

Title:  An act relating to vehicle licenses.

Brief Description:  Affecting vehicle license registration.

Sponsor(s):  Representatives Cooper, Prince, Zellinsky and Mielke; by request of Department of Licensing.

Brief History:

   Reported by House Committee on:

Transportation, February 5, 1992, DPS.

HOUSE COMMITTEE ON

TRANSPORTATION

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 24 members:  Representatives R. Fisher, Chair; R. Meyers, Vice Chair; Betrozoff, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Basich; Brough; Cooper; Day; G. Fisher; Forner; Haugen; Heavey; Horn; R. Johnson; Jones; Kremen; Mitchell; Nelson; Prentice; Prince; Schmidt; Wilson; Wood; and Zellinsky.

Staff:  Brad Lovaas (786-7307).

Background:  If the director of the Department of Licensing (DOL) determines that a person applying for or already holding a motor vehicle title is not lawfully entitled to such title, DOL is required to notify that person by certified mail.

During the 1991 session the Legislature enacted a formula that would associate the number of dealer plates with the number of vehicles sold by a specific dealer.  The new restrictions prohibited any vehicle dealer selling less than five vehicles a year from obtaining dealer plates.  The intent of the legislation was to curb dealer plate abuses.

Summary of Substitute Bill:  When the director of the Department of Licensing (DOL) notifies a person of a cancellation of a vehicle title, the notification shall be sent by regular mail service.  An affidavit of mail service shall be attached to a copy of the cancellation notice and retained by the department.

The director may waive by rule dealer plate issuance restrictions, if the waiver is in accordance with the purposes of the chapter and is essential to the continuation of the business.

Substitute Bill Compared to Original Bill:  Provisions which allow a county imposing a local option transportation tax are revised to provide for an exemption process rather than a refund process.  The same process that is used currently for property tax exemptions would be used.

Fiscal Note:  Available.

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

Testimony For:  The change from certified mail to regular mail with an affidavit will save money.  The provisions dealing with expired licenses will allow people to get a full 12-month registration.  DOL's rule-making authority will allow DOL to enforce the dealer plate abuse laws and still allow small dealers to retain dealer plates.

Testimony Against:  Denial of dealer plates to small dealers is discriminatory.

Witnesses:  Nancy Kelly, Department of Licensing (pro); and Jim Harkey, dealer (con).