AN ACT Relating to vessel dealer registration exemptions; amending RCW 88.02.060 and 88.02.110; and adding a new section to chapter 88.02 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 88.02 RCW to read as follows:

(1) The department may exempt from compliance with the vessel dealer requirements of this chapter, any person who is engaged in the business of selling in this state at wholesale or retail, human-powered watercraft which is: (a) Under sixteen feet in length; (b) unable to be powered by propulsion machinery or wind propulsion as designed by the manufacturer; and (c) not designed for use on commonly-used navigable waters.

(2) The department may exempt from compliance with the vessel dealer requirements of this chapter any person who is engaged in the business of selling in this state at retail vessels with an overall length of ten feet or less that are capable of being powered by a motor of five or less horsepower.

(3) Any person engaged in the business of selling at wholesale or retail, exempt and nonexempt watercraft under this section shall only be required to comply with the provisions of this chapter in regard to the sale of nonexempt watercraft.

Sec. 2. Section 19, chapter 7, Laws of 1983 as amended by section 1, chapter 149, Laws of 1987 and RCW 88.02.060 are each amended to read as follows:

(1) Each vessel dealer in this state shall register with the department in the manner and upon forms prescribed by the department, in accordance with rules adopted under chapter ((~~34.04~~)) 34.05 RCW. After the completed vessel dealer application has been satisfactorily filed and the applicant is eligible as determined by the department's rules, the department shall, if no denial proceeding is in effect, issue the vessel dealer's registration on the basis of staggered annual expiration dates.

(2) Before issuing a vessel dealer's registration, the department shall require the applicant to file with the department a surety bond in the amount of five thousand dollars, running to the state of Washington, and executed by a surety company authorized to do business in the state of Washington. The bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his or her business in conformity with the provisions of this chapter. Exemptions to vessel dealer registration surety bond requirements shall include use of cash deposits. In lieu of the surety bond, a vessel dealer may deposit cash in a public depository, as defined in RCW 39.58.010, equivalent in amount to the surety bond in the manner prescribed by the department by rule, on the condition that such equivalent cash account is maintained, and that notice and payment of any judgment obtained under this section against the dealer and such account will be rendered as required under this section. Any interest accruing to the account is payable to the registrant. The department may require a registrant who uses a cash deposit in lieu of a bond to certify in writing that he or she will conduct his or her business in conformity with the provisions of this chapter. An account established for security under this chapter may not be used as security for any other purposes.

The cash deposit shall be returned to the licensee one year after the license has expired or one year after a surety bond has been filed for the same license if no legal action has been initiated against the licensee or the cash deposit at the expiration of the year.

Any vessel consignor or purchaser who has suffered any loss or damage by reason of any act or omission by a dealer that constitutes a violation of this chapter may institute an action for recovery against the dealer, and the surety upon the bond, or the account established by the dealer in lieu of the bond.

If a cash deposit is made in lieu of a surety bond as required by this section, the holder of any judgment against the vessel dealer and the cash account shall notify the dealer and the department of the judgment by sending a certified copy of the judgment by registered or certified mail within ten business days after the judgment is entered. The department shall issue a notice to the depository institution holding the account to authorize the disbursement of funds equal to the judgment unless otherwise provided by this section. The depository institution shall make payment to the person specified in the notice within twenty days of receipt of the notice, and shall notify the department by registered or certified mail of such payment.

Successive recoveries against the bond shall be permitted, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. Upon exhaustion of the penalty of the bond or cancellation of the bond by the surety, or upon the dealer's failure to maintain, within twenty days of any withdrawal, the equivalent amount of cash in lieu of the surety bond as required under this section, the vessel dealer registration shall automatically be deemed canceled. The depository institution shall notify the department within twenty days of any such account that is not maintained in accordance with this section.

(3) Vessel dealers selling fifteen vessels or fewer per year having a retail value of no more than two thousand dollars each shall not be subject to the provisions of subsection (2) of this section.

(4) For the fiscal biennium from July 1, 1987, through June 30, 1989, the registration fee for dealers shall be fifty dollars per year for an original registration, and twenty-five dollars for any subsequent renewal. In addition, a fee of twenty-five dollars shall be collected for the first decal, fifteen dollars for each additional decal, and fifteen dollars for each vessel dealer display decal replacement. In ensuing biennia, the director shall establish the amount of such fees at a sufficient level to defray the costs of administering the vessel dealer registration program. All such fees shall be fixed by rule adopted by the director in accordance with the Administrative Procedure Act, chapter ((~~34.04~~)) 34.05 RCW. All fees collected under this section shall be deposited with the state treasurer and credited to the general fund.

Sec. 3. Section 22, chapter 7, Laws of 1983 as last amended by section 13, chapter 149, Laws of 1987 and RCW 88.02.110 are each amended to read as follows:

(1) Except as otherwise provided in this chapter, a violation of this chapter, RCW 43.51.400, and the rules adopted by the department and the state parks and recreation commission pursuant to these statutes is a misdemeanor punishable only by a fine not to exceed one hundred dollars per vessel for the first violation. Subsequent violations in the same year are subject to the following fines:

(a) For the second violation, a fine of two hundred dollars per vessel;

(b) For the third and successive violations, a fine of four hundred dollars per vessel.

(2) ((~~After subtraction of court costs and administrative collection fees, moneys collected under this section shall be credited to the current expense fund of the arresting jurisdiction.~~

~~(3)~~)) All law enforcement officers shall have the authority to enforce this chapter, RCW 43.51.400, and the rules adopted by the department and the state parks and recreation commission pursuant to these statutes within their respective jurisdictions: PROVIDED, That a city, town, or county may contract with a fire protection district for such enforcement and fire protection districts are authorized to engage in such activities.