SENATE BILL REPORT

SB 5515

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 13, 2013

Title: An act relating to fees for certain vehicle title, registration, and permitting services.

Brief Description: Concerning fees for certain vehicle title, registration, and permitting services.

Sponsors: Senators Eide and Benton.

Brief History:

Committee Activity: Transportation: 2/12/13.

SENATE COMMITTEE ON TRANSPORTATION

Staff: Amanda Cecil (786-7429)

Background: County auditors, acting as an agent of the director of the Department of Licensing (DOL), must provide various vehicle title and registration services to the public. This includes processing a report of sale; processing a transitional ownership; processing mail-in vehicle registration renewals; issuing registration and temporary off-road vehicle use permits; issuing registration for snowmobiles; and collecting taxes and fees. DOL may appoint privately-owned businesses as licensing subagents (subagents) to process these transactions under contract with the county auditor. In addition to any other fees, registration and title transactions processed by a subagent are subject to a subagent service fee of $5.00 for a registration and $12.00 for a title. On a report of sale transaction a subagent only collects a $5.00 subagent service fee and does not collect the license plate technology, licensing service, or filing fee.

The table below shows a summary of the administrative fees collected by type and location of transaction.

Registration

Report of Sale –

subagent

Report of Sale –

auditor or agent

Title

License Plate

Technology Fee

$0.25

$0.25

License Service

Fee

$0.50

$0.50

Filing Fee

$3.00

$3.00

$4.00

Subagent Service

Fee

$5.00

$5.00

$12.00

Total Fees Paid – Auditor or Agent

$3.75

$3.75

$4.00

Total Fees Paid – Subagent

$8.75

$5.00

$16.00

Summary of Bill: The subagent service fee is renamed the service fee and DOL, county auditors, and agents, must collect the service fee. An additional fee of $1.25 is added to a report of sale transaction that is processed by a county auditor or other agent. A county may opt out of collecting the service fee or the additional fee of $1.25 by a majority vote of the governing board.

The service fee is distributed as follows:

The additional fee of $1.25 that is collected by the county auditor is deposited into the county’s current expense fund.

The table below shows a summary of the administrative fees collected by type and location of transaction under this bill.

Registration

Report of Sale –

subagent

Report of Sale –auditor or agent

Title

License Plate Technology

Fee

$0.25

$0.25

License Service Fee

$0.50

$0.50

Filing Fee

$3.00

$3.00

$4.00

Additional Fee – NEW

$1.25

Subagent Service Fee

$5.00

$5.00

$5.00

$12.00

Total Fees Paid – Auditor

or Agent

$8.75

$5.00

$16.00

Total Fees Paid –

Subagent

$8.75

$5.00

$16.00

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony: PRO: This levels the playing field for subagents that provide a public service and provide convenience to the customers. Subagents process most of the vehicle registration and title transactions. The fee structure puts the auditors and subagents at odds. This raises revenue for the state. The subagent only gets to keep the subagent fee. The rest goes to the county and the state.

CON: This is a fee in search of a purpose. This is an additional cost without an additional benefit to the customers that do not use subagent services. The subagents provide a benefit to the customers that they pay for.

Persons Testifying: PRO: Jan Novak, Chester Baldwin, WA Assn. of Vehicle Subagents.

CON: Monty Cobb, WA Assn. of County Officials; Jeffrey Beeler, citizen.