SENATE BILL REPORT

                   SB 6228

              As Passed Senate, February 11, 1998

Title:  An act relating to aircraft dealers' license fees.

Brief Description:  Adjusting aircraft dealers' license fees and their distribution.

Sponsors:  Senators Haugen, Morton, Rasmussen, Prentice, Prince and Wood.

Brief History:

Committee Activity:  Transportation:  1/20/98, 1/27/98 [DP, DNP].

Passed Senate, 2/11/98, 45-3.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

  Signed by Senators Prince, Chair; Wood, Vice Chair; Goings, Haugen, Heavey, Horn, Jacobsen, Morton, Oke, Prentice and Rasmussen.

Minority Report:  Do not pass.

  Signed by Senator Benton, Vice Chair.

Staff:  Reema Shawa (786-7301)

Background:  Under current law, if an individual sells two or more aircraft in one year, they are required to obtain an aircraft dealer's license.  There are currently 55 registered aircraft dealers in Washington State.  The license costs $25 for the first year and $10 per year after that, for license renewal.  100 percent of  registration fee revenue is deposited in the General Fund.  Despite this fact, the aircraft dealers license program is entirely administered by the Department of Transportation's Aviation Division.

Summary of Bill:  The aircraft dealer's license fee is increased from $25 to $75.  The annual renewal fee is increased from $10 to $75.  The cost for additional dealer license certificates is increased from $2 to $10.  If a dealer's license expires, the fee to reapply is increased from $25 to $75.  Registration fee revenue must be credited to the Aeronautics Account, as opposed to the General Fund.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Aircraft dealer=s license fees are inappropriately too low and thus encourage fraudulent use, as the current fee is significantly lower than is the fee to register an aircraft.  Therefore, raising the fee will discourage people from opting for the dealer=s license instead of actually registering their planes.  This bill will also bring in additional needed revenue to the division.

Testimony Against:  None.

Testified:  PRO:  Bill Brubaker, WSDOT Aviation Division; Jim Kuntz, Port of Walla Walla; Jack McGoldrick, WA Pilots Association; Tom Jensen, WA Air Search & Rescue.