SENATE BILL REPORT

SSB 6614

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Warnke and Lee)

Permitting vessel dealers to file security in lieu of bond for registration purposes.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 4, 1988

Majority Report:  That Substitute Senate Bill No. 6614 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, McMullen, Saling, Smitherman, Warnke, West.

Senate Staff:Steve Boruchowitz (786-7429)

                  February 13, 1988

AS PASSED SENATE, FEBRUARY 12, 1988

BACKGROUND:

Recent changes to vessel dealer registration requirements included a $5,000 security to be filed by the dealer.  Some dealers have indicated that this is too costly a process and have asked for an alternative method of providing protection for claimants in cases of violations on the part of dealers.

SUMMARY:

A dealer may deposit $5,000 cash in lieu of a bond.  Specific methods of making a claim against the cash, issuing notices, and making payments are provided.  Failure to maintain the cash will result in the registration being revoked.  Cash deposits may not be used for any other security purpose.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: John Woodring, NW Mooring Trade Association; Jerry Husted, Nordic Tugs, Inc.; Marv Ryser, Department of Licensing