HOUSE BILL REPORT

ESB 5120

As Amended by the House

BYSenators Peterson, Hansen, Barr, Metcalf, Garrett, Bender, von Reichbauer, Sellar and Patterson

Revising fees and liability for county auditors and their agents.

House Committe on Transportation

Majority Report:  Do pass with amendment.  (24)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Brough, Cantwell, Cooper, Day, Dellwo, Doty, Fisch, Fisher, Gallagher, Hankins, Haugen, Kremen, Meyers, Prince, Schmidt, C. Smith, D. Sommers, Spanel, Todd, Vekich and S. Wilson.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Heavey, J. Williams, K. Wilson and Zellinsky.

House Staff:Terry Michalson (786-7315)

AS OF HOUSE SECOND READING APRIL 2, 1987

BACKGROUND:

Motor vehicle subagents are private enterprise businesses consigned by county auditors to provide certain services to the public.  These services include vehicle and vessel registration and titling, license renewal, collection of vehicle tonnage fees, and issuance of various permits.

Due to increasing costs in operation the subagents have requested an increase in their fees from $1.75 per transaction to $2.00.  The fee was last increased in 1983, from $1.50 to $1.75.

The Department of Licensing is authorized to accept checks for payment of various license fees.  When a check proves to be insufficiently funded, and it has been written to the county or subagent, the department allows the agent or subagent to collect an NSF fee when the check is made good.  Although the law allows the department to collect such a fee, the law does not apply to county auditors and subagents.

The department has immunity from suits and legal actions in the course of licensing and registering vehicles and vessels. County auditors and their subagents assist the department in providing these services to the public, but they are not protected from immunity under the law.

SUMMARY:

The additional charge for the agent of the county auditor is increased from $1.75 to $2.00.

When registrations, licenses or permits have been paid for by checks or money orders that have been dishonored by nonacceptance or nonpayment, the county auditors or subagents may collect restitution and a reasonable handling fee which may be set by rule by the director of the Department of Licensing.

County auditors or subagents may not be prosecuted through civil suit for any act performed or omitted in connection with titling, licensing or registration of vehicles or vessels while performing duties as an agent of the director of licensing.  This does not bar the director or the state from bringing civil or criminal action against any agent, or a county auditor or other agent of the director from bringing any action against his or her agent.

This section shall apply retroactively to all claims for which actions have not been filed before the effective date of this act.

Fiscal Note:      No Impact.

House Committee ‑ Testified For:    Neal Lockett, White Center Licensing Agency; Ken Housden, Chelan County Auditor; Bob Shannon, Washington Association of Vehicle Subagents; Jerry McInturff, Skagit County Auditor; Sam Reed, Washington State Association of County Auditors; Jesus Sanchez, Washington State Auditors Association and King County; Dave Kirk, Department of Licensing.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    County auditors and subagents have acted as agents for the Department of Licensing for the purpose of collecting vehicle license fees under the presumption that they would have the director of Licensing's immunity to civil actions taken against their performing on behalf of the director.  A recent court case resulted in a county auditor being held liable as the statute providing for immunity for the director was held not to cover the director's subagents.  A twenty-five-cent-per-transaction fee increase to two dollars for subagents is needed to cover additional costs of doing business.

House Committee - Testimony Against:      None Presented.