SENATE BILL REPORT

HB 261

BYRepresentatives Walk, Schmidt, Fisch, P. King and J. Williams; by request of  Department of Licensing

Revising state centennial license plate act.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 24, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, von Reichbauer.

Senate Staff:Cathy Mayo (786-7304)

                  March 25, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 24, 1987

BACKGROUND:

In January of this year, the Department of Licensing (DOL) began issuing centennial license plates.  These plates are issued to vehicles with new registrations and vehicle owners with existing registrations that require or opt for replacement plates.

An additional $1 per plate fee is imposed; half is deposited in the Centennial Commission Account (CCA) and half is deposited in the Motor Vehicle Fund (MVF) from January 1, 1987 to June 30, 1989.  After June 30, 1989 the total amount is deposited in the MVF.

Funds deposited in the CCA are distributed by the Centennial Commission for state and local centennial activities.  One-half of the amount deposited in the Account is distributed to counties based on the number of centennial plates issued to residents in the county.  An expiration date of December 31, 1993 is established for expenditure of funds in the CCA.  Any remaining balance in the Account reverts to the General Fund following expiration.

The original legislation contains two oversights:

      (1)The intent was that all vehicles being registered in the state for the first time pay an additional $1/plate for centennial plates.  The only statute that was cited was the $23 basic motor vehicle registration fee.  The initial basic registration fees for small trailers ($4.50), campers ($4.90) and mopeds ($3) are contained in different statutes; therefore these vehicles are not subject to an additional $1/plate fee.

Additionally, due to the anticipated implementation of the International Registration Plan (IRP), a new fee schedule for trucks, busses, for-hire vehicles and commercial trailers was instituted January 1 of this year.  In order to be accepted into the IRP (a prorate agreement), Washington was required to simplify its registration procedures.  Under the old system, trucks, trailers and busses were subject to two annual fees:  the basic registration fee and a gross weight fee.  The new law combines the basic registration and gross weight fee into one schedule for trucks, busses and for-hire vehicles; trailers are now subject to a $35/unit flat fee.  Therefore these vehicles no longer fall under the $23 initial basic registration fee statute and the additional $1/plate fee cannot be imposed.

      (2)The intent was that the additional $1/plate fee from both the initial registration and replacement plates be split between the MVF and CCA.  However, no provision was made to distribute half of the $1 fee imposed for a replacement plate to the CCA.  Through an agreement between the Governor's office, the Department and the Legislative Transportation Committee, DOL has been depositing half of the fees collected in the CCA.  A revision in the law is necessary to make this practice legal and implement the original intent.

SUMMARY:

The intent that the additional $1 per centennial plate fee be applied to all new vehicle registrations is clarified.  The fee is collected for new small trailer, camper, moped, motor truck, truck tractor, road tractor, tractor, commercial trailer, bus, auto stage and for-hire vehicle new registrations.

The intent that half of the additional $1 per centennial plate fee imposed for a replacement plate be deposited in the Centennial Commission Account is clarified.  Distribution is the same as for new vehicle registrations:  from January 1, 1987 to June 30, 1989,  one-half to the CCA and one-half to the MVF; from July 1, 1989 on,  a total of $1 to MVF.

Fiscal Note:      requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Nancy Kelly, Department of Licensing