SENATE BILL REPORT

SB 5416

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 Reported by Senate Committee On:

Transportation, January 28, 2015

Title: An act relating to service fees on vessel-related transactions.

Brief Description: Concerning service fees on vessel-related transactions.

Sponsors: Senators King and Benton.

Committee Activity: Transportation: 1/27/15, 1/28/15 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass.

Signed by Senators King, Chair; Benton, Vice Chair; Fain, Vice Chair, Budget ; Hobbs, Ranking Minority Member; Liias, Assistant Ranking Minority Member; Ericksen, Habib, Miloscia and Pedersen.

Staff: Amanda Cecil (786-7429)

Background: County auditors or other entities, acting as agents and by appointment 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 subagent service fees of $5 for a registration and $12 for a certificate of title. In 2014 legislation passed that changed the subagent service fee to the service fee and required that it also be collected by DOL, county auditors, and agents on all vehicle-related transactions. The service fees that are collected by DOL, county auditors, and agents are deposited into the Capital Vessel Replacement Account.

Summary of Bill: The service fee that is due on vehicle certificate of title and registration transactions is also due on vessel certificate of title and registration transactions. The service fees that are collected by DOL, county auditors, and agents are deposited into the Capital Vessel Replacement Account.

Appropriation: None.

Fiscal Note: Requested on January 21, 2015.

[OFM requested ten-year cost projection pursuant to I-960.]

Committee/Commission/Task Force Created: No.

Effective Date: The bill takes effect on January 1, 2016.

Staff Summary of Public Testimony: PRO: The act clears up the language by applying it to vessels as was the intent last year.

Persons Testifying: PRO: Senator King, prime sponsor; Corry Cavin, WA Assn. of Vehicle Sub Agents.

Persons Signed In To Testify But Not Testifying: No one.