SENATE BILL REPORT

                   SB 5513

              As Reported By Senate Committee On:

               Transportation, February 25, 1997

Title:  An act relating to exceptions from vessel registration.

Brief Description:  Excepting certain vessels from registration.

Sponsors:  Senators Oke, Spanel, Wood and Horn.

Brief History:

Committee Activity:  Transportation:  2/20/97, 2/25/97 [DPS].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5513 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Prince, Chair; Benton, Vice Chair; Wood, Vice Chair; Haugen, Goings, Horn, Jacobsen, Morton, Oke, Patterson, Prentice and Rasmussen.

Staff:  Gary Lebow (786-7304)

Background:  Vessels that have a valid registration number under federal law or by an approved issuing authority of the state of principal operation are exempt from vessel registration in the state of Washington.  However, a vessel that is validly registered in another state, but is removed to this state for principal use has 60 days to register with this state.  At the time of registration, the watercraft excise tax is due.  The excise tax is equal to one half of 1 percent of the fair market value of the vessel.

Summary of Substitute Bill:  On or before January 1, 1998, vessels that are owned by nonresidents and used for personal use and enjoyment, and are validly registered in another state, are allowed to remain within this state for no more than six months before being required to register their vessels with Washington State.  Vessels used in a non-transitory business are excluded from this exemption.

On or before the 61st day of use, any vessel temporarily in the state must obtain an identification document from the Department of Licensing indicating when the vessel first entered the state.  The identification document costs $25 and is valid for two months.  Any moneys remaining after payment of the cost for providing the document are distributed to the counties for funding approved boating safety programs under RCW 88.02.045.

Substitute Bill Compared to Original Bill:  The expiration date of July 1, 2000 for the exemption from Washington State vessel registration is removed.  After January 1, 1998, the nonresident vessel owners are required to purchase the identification document on or before the 61st day of vessel use and the identification document is valid for two months.

Appropriation:  None.

Fiscal Note:  Requested.

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

Testimony For:  Extending the exemption period to six months will allow owners to moor the boats over the winter increasing businesses and jobs for marinas.  It will also bring more boats during the boating season creating more business and revenues for the state.

Testimony Against:  None.

Testified:  Pro: John Woodring, Northwest Marine Trade Association; Eric Johnson, Washington Public Ports Association; Brian Calvert, Port of Friday Harbor.