FINAL BILL REPORT

2SSB 5515

                                  C 149 L 87

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 and Committee on Ways & Means

House Committe on Transportation

SYNOPSIS AS ENACTED

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.  Vessel dealers selling fewer than 15 vessels per year of less than $2,000 each in value are exempt from the surety bond requirement.  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, misrepresentation of facts in filing an application, and 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

VOTES ON FINAL PASSAGE:

      Senate    31    13

      House 98   0 (House amended)

      Senate    35    10 (Senate concurred)

EFFECTIVE:July 1, 1987