SENATE BILL REPORT
SSB 5265
BYSenate Committee on Transportation (originally sponsored by Senators Rasmussen and Metcalf)
Regulating certain charter boats on state water.
Senate Committee on Transportation
Senate Hearing Date(s):February 16, 1989; February 28, 1989
Majority Report: That Substitute Senate Bill No. 5265 be substituted therefor, and the substitute bill do pass.
Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Bender, Conner, Hansen, McMullen, Madsen, Murray, Sellar, Thorsness.
Senate Staff:Vicki Fabre' (786-7313)
April 11, 1989
House Committe on Transportation
AS PASSED SENATE, MARCH 8, 1989
BACKGROUND:
Current law requires the Department of Labor and Industries to inspect vessels that are rented, leased or chartered to carry more than six passengers on the inland waters of Washington State. Under its inspection authority, the department requires charter vessels to carry licensed pilots. However, neither the department nor any other state entity has licensing authority. Furthermore, charter boats operating on nonfederal or most of the inland waters of the state do not come under the jurisdiction of the United States Coast Guard. The absence of a state, statutorily appointed licensing authority and the refusal of the Coast Guard to license operators transporting passengers on inland state waters (Lake Chelan, Lake Diablo and Banks Lake) has placed charter boat operators in violation of state requirements.
SUMMARY:
The Department of Labor and Industries is given the authority to license charter boat operators transporting more than six passengers on the inland navigable waters of the state.
A charter boat is defined as a motorized vessel or barge operating on inland navigable waters of the state which is not inspected or licensed by the United States Coast Guard. Inland navigable waters are all waters within the territorial limits of the state shoreward of the navigational demarcation lines dividing the high seas from harbors, rivers, lakes and other inland waters of the state.
The operation of a charter boat on inland navigable waters is prohibited unless the department has inspected the vessel, issued a current certificate of inspection and the operator of the charter has been issued a license.
Vessels operating as charter boats must have a registration certificate for inspection by the department. Vessels without a current registration certificate will be referred to the Department of Revenue.
Advertising or arranging for the transport of passengers on a charter for money is prohibited unless the vessel has a valid, current certificate of inspection.
Vessels operating as charters must be inspected once every 12 months while the vessel is dockside and at least once every 24 months while the vessel is in drydock. The owner of a charter boat must file an application for inspection accompanied by a fee to be established by the department. The department may inspect a vessel at any time if it has reasonable cause to believe licensing, inspection and safety regulations have been violated. If a vessel or its equipment does not comply with department rules or applicable federal law, a certificate will not be issued and any current certificate may be revoked.
All moneys received from licenses, permits, inspection fees or penalties imposed for violations are paid to the State Treasurer and placed in a fund designated as the charter boat safety fund. The funds shall be used for administrative, education and enforcement costs.
All charter boat operators must provide the department, upon demand, proof of current liability insurance coverage.
Penalties for violations of the licensing and inspection provisions as well as administrative hearing procedures are provided for under the Washington Industrial Safety and Health Act.
Anyone denied a certificate of inspection or a license may petition the department for a hearing.
The department is required to adopt procedures, standards and fees for licensing charter boat operators, and minimum safety and health standards for passengers and crew on charter boats.
The department is authorized to enter into reciprocal agreements with other states whose charter boats operate on the inland navigable waters of the state of Washington where such other states can establish that its laws and standards concerning charter boats meet or exceed those of Washington State. Charters operating under reciprocal agreement must obtain an annual operating permit from the department.
The department is required to establish an education and enforcement program designed to eliminate the operation of uninspected charters and to provide public information on the safety requirements necessary for the operation of charter boats.
The following exemptions are established: (1) a charter boat used exclusively by the owner for noncommercial purposes; (2) a corporate-owned vessel which is donated for charitable or noncommercial purposes; (3) a vessel that is rented by an operator to transport passengers for noncommercial purposes; (4) a vessel used exclusively for educational purposes.
A one-time appropriation from the state general fund of $48,300 for the 1989-91 biennium is made to pay for startup costs.
Appropriation: $48,300
Revenue: yes
Fiscal Note: requested February 16, 1989
Senate Committee - Testified: Jack Raines, Lady of the Lake, Lake Chelan Boat Co.; Captain Richard Hill, N.W. Certified Charter Boat Association; Captain Michael Hickey, N.W. Certified Charter Boat Association; Captain Gerald Sands, N.W. Certified Charter Boat Association; Peter Schmidt, Department of Labor and Industries
HOUSE AMENDMENTS:
Various technical and clarifying changes are made.
Language in the Senate bill which provides for the seizure or condemnation of vessels is deleted.
Language is deleted that requires that vessels without a current registration certificate be referred to the Department of Revenue.
Inspections must determine if the vessel and its equipment comply with applicable state and federal laws and regulations.
The certificate of inspection is valid for one year from the date of issuance.
A 60-day timeline for filing an application for inspection with the Department of Labor and Industries is established.
Language that authorizes the Department of Labor and Industries to deduct from an inspection fee the actual costs associated with preparing for an inspection, should the owner of the charter boat fail to keep a mutually agreed upon appointment, is deleted.
All sums received from fees, licenses and fines are deposited in the industrial insurance trust fund instead of the charter boat safety fund.
In addition to the cost of the inspection program, the fee established under the act must cover the repayment to the state general fund, by June 30, 1991, of the $48,300 appropriation for one-time start-up costs.