SENATE BILL REPORT
SB 5265
BYSenators 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)
March 1, 1989
AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 28, 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 has placed charter boat operators transporting passengers on inland state waters in violation of state requirements.
SUMMARY:
The Department of Labor and Industries is given the authority to regulate charter boats not covered by a Coast Guard certificate of inspection.
A charter boat is defined as any vessel which is rented, leased or chartered with or without consideration to carry more than six persons or cargo. The operation of a charter boat is prohibited unless the operator is licensed by the Coast Guard, and the vessel has been inspected by the Department of Labor and Industries.
The department is required to adopt rules to establish maximum safety and health safety standards for passengers and crew that are comparable to rules adopted by the United States Coast Guard.
The department must conduct a safety inspection of charter boats once every 12 months when the boat is dockside and once every 24 months while the charter is in dry dock. If the boat and its equipment passes inspection, a certificate of inspection is furnished by the department.
Charter boat owners are required to file an application for inspection with the required form accompanied by an application fee.
Charter boat operators are required to maintain current liability insurance.
Fees for the inspection of charter boats are established.
Operators who have been denied a certificate of inspection may request a hearing.
The department is authorized to enter into reciprocal agreements with other states concerning the operation and inspection of charter boats from states that operate on Washington State waters.
The department is required to develop an education and enforcement program designed to eliminate the operation of uninspected and uncertified charter boats.
A violation of the requirements of the Act is punishable by imprisonment of not more than one year, and/or a fine of not more than $5,000.
Vessels operating in violation of inspection or insurance requirements may be seized and upon conviction may be condemned and confiscated.
EFFECT OF PROPOSED SUBSTITUTE:
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