SENATE BILL REPORT

                 2ESHB 1967

              As Reported By Senate Committee On:

               Transportation, February 22, 1996

Title:  An act relating to licensing and registration crimes.

Brief Description:  Increasing penalties for repeat violations of vehicle licensing requirements.

Sponsors:  House Committee on Transportation (originally sponsored by Representatives Romero, Robertson, R. Fisher, K. Schmidt, Tokuda, Chopp, Patterson, Regala, Hatfield, Wolfe, Cole, Dellwo, Valle and Ogden).

Brief History:

Committee Activity:  Transportation:  3/28/95 [DPA]; 2/15/96, 2/22/96 [DPA]

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass as amended.

  Signed by Senators Owen, Chair; Heavey, Vice Chair; Goings, Haugen, Morton, Oke, Prentice, Prince, Rasmussen, Schow, Sellar, Thibaudeau and Wood.

Staff:  Jeff Doyle (786-7322)

Background:  Currently, trucks that are not licensed in this state may obtain a trip permit from the Department of Licensing (DOL).  A trip permit allows that vehicle to travel within the state for three consecutive days.  The vehicle must be within the legal weight limits.  Current law restricts the use of trip permits to three per vehicle per month.

For the first offense of misusing a trip permit, the penalty is twice the amount of excise tax that is legally owed, plus up to one year in the county jail.  For second and subsequent offenses, the penalty is three times the amount of the excise tax, plus up to one year in jail.

Summary of Amended Bill:  The excise taxes and registration fees are deposited in the same manner as if the taxes and fees were properly paid.  The fines for evading proper payment of these taxes and fees are deposited in the vehicle licensing fraud account.

The limitation on the number of current trip permits remains unchanged from current law, except for RV's.  DOL is directed to explore the feasibility of a system allowing persons to apply for and receive trip permits electronically.

Amended Bill Compared to Substitute Bill:  RV drivers are limited to two trip permits per year, per vehicle.

Appropriation:  None.

Fiscal Note:  Requested on February 24, 1995.

Effective Date of Bill:  Sections 1 through 6 take effect January 1, 1997.

Testimony For:  For every dollar the state spends on investigating vehicle licensing fraud, it recovers about $6 from tax evaders.  The misuse of trip permits is one of the primary means of defrauding the state of taxes owed.  This is needed to help deter people from illegally registering their vehicles in other states or in using trip permits to avoid paying Washington's motor vehicle excise taxes.

Testimony Against:  None.

Testified:  Rep. Romero, prime sponsor.