Title: An act relating to funding for the state patrol highway account.

Brief Description: Providing additional funding for the state patrol highway account.

Sponsors: Senators Murray and Haugen.

Brief History:

Committee Activity: Transportation: 2/28/07, 3/01/07 [DP].

Passed Senate: 3/12/07, 48-1.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.Signed by Senators Haugen, Chair; Marr, Vice Chair; Murray, Vice Chair; Swecker, Ranking Minority Member; Benton, Berkey, Clements, Delvin, Eide, Holmquist, Jacobsen, Kastama, Kauffman, Kilmer, Sheldon and Spanel.

Staff: David Ward (786-7341)

Background: Under current law, residents of this state must register vehicles that are operated on the public highways. A temporary permit to operate a vehicle for which application for registration has been made may be issued by licensed vehicle dealers. The permit costs $5, is paid by the dealer, and is credited to the registration fees at the time application for registration is made by the dealer.

Vehicle dealers are authorized to charge a documentary service fee of up to $35 per vehicle sale or lease. In order to charge the document service fee, vehicle dealers must observe the following conditions: (1) the service fee must be disclosed in writing before the execution of a purchase and sale or lease agreement; (2) the service fee is not represented to the buyer as a fee or charge required by the state to be paid by either the dealer or the buyer; (3) the service fee must be separately designated from the selling price of the vehicle and from any other taxes, fees, or charges; and (4) dealers must disclose in any advertisement that a document service fee of up to $35 may be added to the sale price of a vehicle.

Summary of Bill: The fee for a temporary permit is raised to $15 and the documentary service fee is raised to $50 per vehicle sale or lease.

Revenue derived from the fee increase on temporary permits is deposited in the State Patrol Highway Account.

Appropriation: None.

Fiscal Note: Requested on February 23, 2007.

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on August 1, 2007.

Staff Summary of Public Testimony: PRO: Washington's auto dealer documentary fee is one of the lowest in the nation. The Auto Dealer's support this bill as a package involving both the documentary and temporary permit fees. The Washington State Patrol Trooper's Association and the Washington State Patrol appreciate this committee's commitment to keeping the State Patrol Highway Account solvent as well as its commitment to the long-term recruitment and retention needs of the State Patrol.

Persons Testifying: PRO: Scott Hazelgrove, Washington Auto Dealer's Association; Rick Jensen, Washington State Patrol Trooper's Association; Jeff DeVere, Washington State Patrol.