SENATE BILL REPORT

SB 5515

BYSenators 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)

                  March 10, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 9, 1987

BACKGROUND:

Since 1983 watercraft owners have been 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 issued, placing them on their 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.

Penalties for abuse of decals or registration 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.

EFFECT OF PROPOSED SUBSTITUTE:

A new section is added which requires that vessel dealers 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.

Appropriation:    $322,000 to the Department of Licensing

Fiscal Note:      requested

EFFECT OF PROPOSED SECOND SUBSTITUTE:

The appropriation is changed to $314,000.  The Director of the Department of Licensing is directed to adjust fees in future biennia to offset the costs of this program.

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