HOUSE BILL REPORT

                  SB 6228

                      As Passed House:

                        March 4, 1998

Title:  An act relating to aircraft dealers' license fees.

Brief Description:  Adjusting aircraft dealers' license fees and their distribution.

Sponsors:  Senators Haugen, Morton, Rasmussen, Prentice, Prince and Wood.

Brief History:

  Committee Activity:

Transportation Policy & Budget:  2/24/98, 2/26/98 [DP].

Floor Activity:

Passed House:  3/4/98, 94-3.

HOUSE COMMITTEE ON TRANSPORTATION POLICY & BUDGET

Majority Report:  Do pass.  Signed by 25 members:  Representatives K. Schmidt, Chairman; Hankins, Vice Chairman; Mielke, Vice Chairman; Mitchell, Vice Chairman; Fisher, Ranking Minority Member; Cooper, Assistant Ranking Minority Member; Backlund; Buck; Constantine; DeBolt; Gardner; Hatfield; Johnson; McCune; Murray; O'Brien; Ogden; Radcliff; Robertson; Romero; Scott; Skinner; Sterk; Wood and Zellinsky.

Staff:  Reema Shawa (786-7301).

Background:  Under current law, if an individual sells two or more aircraft in one year, they are required to obtain an aircraft dealer's license.  There are currently 55 registered aircraft dealers in Washington.  The license costs $25 for the first year and $10 per year thereafter for license renewal.  100 percent of registration fee revenue is deposited in the general fund.  Despite this fact, the aircraft dealers' license program is entirely administered by the Department of Transportation's Aviation Division (AD).

Summary of Bill:  The aircraft dealer's license fee is increased from $25 to $75.  The annual renewal fee is increased from $10 to $75.  The cost for additional dealer license certificates is increased from $2 to $10.  If a dealer's license expires, the fee to reapply is increased from $25 to $75.  Registration fee revenue must be credited to the aeronautics account rather than the general fund.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  Aircraft dealers' license fees are inappropriately low and thus encourage fraudulent use, as the current fee is significantly lower than is the fee to register an aircraft.  Therefore, raising the fee will discourage people from opting for the dealer's license instead of actually registering their planes.  This bill will also bring in additional needed revenue to the AD.

Testimony Against:  None.

Testified:  Newell Lee, AD; and Jack McGoldrick, Washington Pilots Association.