SENATE BILL REPORT

SB 6438

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 31, 2018

Title: An act relating to clarifying the collection process for existing vehicle service transactions.

Brief Description: Clarifying the collection process for existing vehicle service transactions.

Sponsors: Senators King, Palumbo and Hobbs.

Committee Activity: Transportation: 1/29/18, 1/31/18 [DPS].

Brief Summary of First Substitute Bill

Allows the Department of Licensing (DOL), county auditor or other agent, or subagent to collect service fees for both a title and certain non-title transaction when these are completed at the same time.
Clarifies the title transaction and certain non-title transaction service fees are collected in addition to all other fees and taxes required at application.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: That Substitute Senate Bill No. 6438 be substituted therefor, and the substitute bill do pass.

Signed by Senators Hobbs, Chair; Saldaña, Vice Chair; King, Ranking Member; Chase, Cleveland, Dhingra, Fortunato, McCoy, Takko, Wellman and Zeiger.

Staff: Bryon Moore (786-7726)

Background: DOL, a county auditor or other agent, or subagent appointed by the DOL director collects a service fee of:

$12 for changes in a certificate of vehicle title, with or without simultaneous registration renewal, or for verification of record and preparation of an affidavit of lost title; and
$5 for a registration renewal, issuing a transit permit, accepting a vessel registration, accepting a report of sale, and accepting a transitional ownership record.

The service fees collected by DOL, a county auditor, or other agent appointed by the DOL director must be deposited into the Capital Vessel Replacement Account. The service fees collected by subagents are self-retained.

When the ownership of a vehicle changes, a new registration is required by the new vehicle owner. Exceptions to this include:

when adding or removing a lienholder from the certificate of title;
when transferring the vehicle from one spouse or domestic partner to another;
when removing a deceased spouse or domestic partner from the certificate of title;
when transferring the vehicle as a gift to a member of the registered owner's immediate family;
when a leaseholder buys out the leased vehicle; or
when a person changes their name.

Along with most title transactions required for a change of vehicle ownership, a new registration is required as well.

Summary of Bill (First Substitute): DOL, a county auditor or other agent, or subagent appointed by the DOL director can collect a total service fee of $17 when a title transaction and a registration transaction are conducted simultaneously—$12 for the title transaction plus $5 for the registration transaction. Language is provided to clarify that service fees are collected in addition to any other taxes and fees due at the time of application for a title transaction or a registration transaction.

EFFECT OF CHANGES MADE BY TRANSPORTATION COMMITTEE (First Substitute): The effective date is changed from ninety days after adjournment of session in which bill is passed to April 1, 2019.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: The bill takes effect on April 1, 2019.

Staff Summary of Public Testimony on Original Bill: The committee recommended a different version of the bill than what was heard. PRO: This corrects an error from earlier legislation. Since most titles also involve registrations, subagents and the state have been losing revenue. The change proposed in the legislation will not impact the amount someone sees on their vehicle renewal notice in the mail. While a fee increase is still needed to support subagents, this bill takes a step forward to support these small businesses and compensate them for lost revenues experienced in recent years.

Persons Testifying: PRO: Senator Curtis King, Prime Sponsor; Chester Baldwin, Washington Association of Vehicle Subagents; Corry Cavin, Washington Association of Vehicle Subagents; Shane Cox, Washington Association of Vehicle Subagents; Kevin David, Washington Association of Vehicle Subagents; Thad Duvall, Washington State Association of County Auditors.

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