SENATE BILL REPORT

SB 5078

As Reported By Senate Committee On:

Transportation, March 21, 2001

Title:  An act relating to the deposit of vehicle license fees.

Brief Description:  Revising the disposition of vehicle license fees.

Sponsors:  Senator Haugen.

Brief History:

Committee Activity:  Transportation:  3/21/01 [DPS].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5078 be substituted therefor, and the substitute bill do pass.

Signed by Senators Haugen, Chair; Benton, Finkbeiner, Horn, Jacobsen, Johnson, Kastama, McAuliffe, McDonald, Patterson, Prentice, T. Sheldon, Shin and Swecker.

Staff:  Chris Reykdal (786‑7321)

Background:  In November of 1999, Washington citizens passed Initiative 695 (eliminating the Motor Vehicle Excise Tax (MVET) and setting initial and renewal registration fees at $30 for most vehicle classes).  During the 2000 Special Session, the Legislature enacted SB 6865.  SB 6865 placed a $30 registration fee on all motor vehicles regardless of year, value, make, or model.  By restricting registration fees to motor vehicles only, the Legislature removed the registration fee on large trailers and travel trailers.

SB 6865 did not amend RCW 46.68.030; consequently, the additional revenues from the $30 registration fee were directed to the State Patrol Highway Account.

Summary of Substitute Bill:  Registration fees are set at $30 for large trailers and travel trailers.  Further, all additional revenue generated from the new $30 license tab fees are redirected to the Motor Vehicle Account.

Substitute Bill Compared to Original Bill:  The original bill was not considered.

Appropriation:  None.

Fiscal Note:  Requested on March 16, 2001.

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

Testimony For:  None.

Testimony Against:  If this revenue is transferred from the State Patrol Highway Account to the Motor Vehicle Account, there are concerns that the State Patrol will not have the available resources to fund future technology packages, including communication enhancements.  Concerns were also raised about the appropriateness of State Patrol funding from transportation accounts.  If the State Patrol is a policing organization, then they should be funded from the General Fund.

Testified:  CON:  Eric Roberts, Captain, Washington State Patrol; Paul W. Locke, citizen.