SENATE BILL REPORT

2SSB 5515

BYSenate Committee on Ways & Means (originally sponsored by Senators Warnke, Cantu and Moore; by request of Department of Licensing)

Revising vessel dealer registration.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 2, 1987; March 5, 1987

Majority Report:  That Substitute Senate Bill No. 5515 be substituted therefor, the substitute bill do pass and refer to Committee on Ways & Means.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Cantu, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Jack Brummel (786-7428)

                  March 5, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):March 9, 1987

Majority Report:  That Second Substitute Senate Bill No. 5515 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Cantu, Moore, Owen, Rinehart, Talmadge, Vognild, Warnke, Williams, Wojahn.

Senate Staff:Stephen Rose (786-7443)

                  April 9, 1987

House Committe on Transportation

AS PASSED SENATE, MARCH 12, 1987

BACKGROUND:

Watercraft owners are required to register and pay an excise tax based on the value of their vessels.  Vessel dealers must also register and pay a small fee.  Some dealers have misused the dealer decals, placing them on private vessels to avoid paying an excise tax.  The watercraft registration process needs reform to address this problem.

SUMMARY:

A surety bond of $5,000 is required of vessel dealers.  Dealers are required to maintain an office with an exterior sign, pay a $50 registration fee and decal fees, and report sales.  Authorized uses of decals are specified.

Vessel dealers must place funds received from sales into a trust account until the vessel is delivered.  Violations of the trust account requirement subject the dealer to penalties. Penalties for abuse of decals, registration, or trust account violations include revocation of registration, up to $1,000 in civil penalties, and a fine of up to twice the value of the appropriate excise tax.  Upon sale of a vessel the dealer must transfer title to the purchaser.

Appropriation:    $314,000 to the Department of Licensing

Fiscal Note:      available

Senate Committee - Testified: COMMERCE & LABOR: Heather Hamilton, Department of Licensing; David Kirk, Department of Licensing; George Prescott, Northwest Marine Trade Association

Senate Committee - Testified: WAYS & MEANS: No one

HOUSE AMENDMENTS: 

Vessel dealers selling fewer than 15 vessels per year of less than $2,000 each in value are exempt from the surety bond requirement.  Misrepresentation of facts in filing an application subjects a vessel dealer to penalties.