SENATE BILL REPORT

SB 5006

BYSenators Lee, Anderson and Conner

Providing for cash deposit to effectuate vessel dealer registration.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 31, 1989; February 24, 1989

Majority Report:  That Substitute Senate Bill No. 5006 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Saling, Smitherman, Williams.

Senate Staff:Steve Boruchowitz (786-7429)

                  February 24, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 24, 1989

BACKGROUND:

Current licensing requirements for vessel dealers include a surety bond for $5,000.  Several other licensing categories allow for an option whereby the licensee can deposit cash in an account which is used the same way a surety bond would be.  Dealers who sell 15 or fewer vessels per year having a retail value of no more than $2,000 each are exempt from the surety bond requirement.

Also, some manufacturers of low-cost, small boats are seeking to market their products through retail outlets that otherwise would not have or need a vessel dealer license, such as sporting goods stores.

SUMMARY:

Vessel dealers may use a cash deposit in-lieu-of the surety bond requirement.  The cash level of $5,000 must be maintained.  If a payment or other withdrawal is made, the account must be replenished within 20 days.

Dealers who sell 15 or fewer vessels per year with a value no more than $2,000 each are exempt from all dealer registration requirements.

EFFECT OF PROPOSED SUBSTITUTE:

Dealer exemptions are modified to include:  (1) selling at wholesale or retail watercraft under 16 feet that cannot be powered by propulsion machinery or wind; and (2) selling at retail vessels 10 feet or less that are capable of being powered by a motor of five or less horsepower.

A technical revision concerning collection and disposition of fees is made to be consistent with changes elsewhere in statute and to conform to Administrator of the Court procedures.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Doug Bohlke, Western Surety; Steve Gaines, Contractor and Bonding; Jerry Husted, Nordic Tugs (pro); Heather Hamilton, Department of Licensing; John Woodring, Northwest Marine Trade Association; Ray Harley, Washington State Independent Auto Dealers' Association