SENATE BILL REPORT

                                    SB 5760

           AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 6, 1991

Brief Description:  Regulating department of licensing agents and subagents.

SPONSORS:Senator Patterson.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5760 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Conner, Erwin, Madsen, McMullen, Oke, Skratek, Snyder, and Vognild. 

Staff:  Brad Lovaas (786‑7307)

Hearing Dates:March 4, 1991; March 6, 1991

BACKGROUND:

The director of the Department of Licensing (DOL) is responsible for the general supervision and control of issuing vehicle licenses and plates.

Current statute does not require the counties or subagents to disclose costs or revenue to the state.

Currently many different contracts and contract provisions exist between DOL, the counties and the subagents.

SUMMARY:

Current statute is clarified to give the director of the Department of Licensing (DOL) final appointment authority over subagents, who are recommended by a county auditor.

By February 1 of each year a county auditor or subagent must disclose all costs and revenues associated with vehicle licensing activities for the previous year.  DOL shall report to the Legislative Transportation Committee (LTC) the costs and revenues of the counties and subagents by March 1 of each year.

The DOL is directed to standardize contracts for vehicle licensing activities.  One is to be developed for the counties, and one for subagents.

The director of DOL shall review all appointments every two years and report to the LTC.

The DOL is directed to conduct a study of all licensing agents' and subagents' costs and revenues by January 15, 1992.  The study shall recommend a rate of financial return for agents and subagents; review the feasibility of establishing a sinking fund for the county and for automation projects; and recommend a process to reimburse or allow full cost recovery of vehicle licensing activities for all counties, without increasing costs to the consumer.

EFFECT OF PROPOSED SUBSTITUTE:

Current statute is clarified to give the Director of the Department of Licensing (DOL) final appointment authority over subagents who are recommended by a county auditor.

The director shall review all appointments every two years and report to the Legislative Transportation Committee.  Each odd-numbered year a county auditor or subagent must disclose all costs and revenues associated with vehicle licensing activities for the previous year.  DOL shall report to the LTC the costs and revenues of the counties and subagents.

The current $2.00 fee charged by subagents for a title transaction without a registration is raised to $5.50.  The current $4.00 fee charged by subagents for a title application with a registration is raised to $5.50.  Currently there is no fee for preparation and verification of titles.  This transaction fee is established at $5.50 for subagents. The current "no‑fee" permits are changed to transit permits, and a fee of $2.25 is established for its issuance and any other services under this section.  The current $2.00 registration renewal fee is raised to $2.25.  The subagent fee increase is effective July 1, 1991 through June 30, 1992.

The DOL is directed to conduct a study of all licensing agents' and subagents' costs and revenues by January 15, 1992.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

TESTIMONY FOR:

There is a need for further study and cooperation amongst DOL, counties and subagents.

TESTIMONY AGAINST:  None

TESTIFIED:  Mary Faulk, Director, Department of Licensing (pro)