SENATE BILL REPORT

 

 

                                    SB 6614

 

 

BYSenators 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 10, 1988

 

 

  AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 4, 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 cash or other security in the amount of $5,000 in lieu of a bond.

 

 

EFFECT OF PROPOSED SUBSTITUTE:

 

Only cash deposits are allowed.  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