SENATE BILL REPORT

                   SB 6565

              As Reported By Senate Committee On:

               Transportation, February 8, 2000

Title:  An act relating to motorcycles.

Brief Description:  Revising various motorcycle laws.

Sponsors:  Senators Horn, Haugen, Oke and Winsley.

Brief History:

Committee Activity:  Transportation:  2/1/2000, 2/8/2000 [DP, DNP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

  Signed by Senators Haugen, Chair; Gardner, Vice Chair; Goings, Vice Chair; Costa, Heavey, Horn, Jacobsen, Johnson, Oke, Prentice, Shin and Swecker.

Minority Report:  Do not pass.

  Signed by Senators Finkbeiner and Morton.

Staff:  Lynn Hale (786-7346)

Background:  To obtain a motorcycle endorsement, a person must pass both a written and a skills test.

Under current law, motorcyclists are not required to obtain motor vehicle liability insurance in order to operate a motorcycle.

Currently, a use tax is imposed on the use of articles of tangible personal property when the sale or acquisition of the property has not been subject to sales tax.  The use tax is equal to the sales tax rate multiplied by the value of the property used.  The use tax commonly applies to property acquired out of state.  Motorcycle manufacturers and others sometimes loan motorcycles to the Department of Licensing (DOL) and to DOL approved trainers. These motorcycles are used solely for training purposes.  DOL and DOL approved trainers may be required to pay use tax for these loaned motorcycles.

Summary of Bill:  The Department of Licensing may waive the endorsement examination for persons who pass the department's voluntary motorcycle operator training and education class.

The exemption from mandatory liability insurance given to motorcyclists was removed.

A use tax exemption is authorized for motorcycles loaned directly to DOL, or persons contracting with DOL, exclusively to provide motorcycle training.

Appropriation:  None.

Fiscal Note:  Requested on January 26, 2000.

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

Testimony For:  Motorcyclists are not required to receive adequate training prior to obtaining a motorcycle endorsement.  Motorcyclists are not required to obtain motor vehicle liability insurance.

Testimony Against:  None.

Testified:  PRO:  Senator Horn, prime sponsor; Karen York; Dan York.