Brief Summary of Substitute Bill

• Annual vessel registrations are staggered throughout the year, similar to vehicle registrations.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 29 members: Representatives Murray, Chair; Rockefeller, Vice Chair; Simpson, Vice Chair; Ericksen, Ranking Minority Member; Jarrett, Assistant Ranking Minority Member; Anderson, Armstrong, Bailey, Campbell, Clibborn, Cooper, Dickerson, Edwards, Flannigan, Hankins, Hatfield, Hudgins, Kristiansen, Lovick, Mielke, Morris, Nixon, Romero, Schindler, Shabro, Sullivan, Wallace, Wood and Woods.

All vessels owned and operated upon the waters of Washington must be registered with the Department of Licensing (DOL) and must display an assigned registration number and a valid decal. When initially registering or renewing a vessel's registration, the owner must pay a vessel registration fee of $10.50, watercraft excise tax equaling one-half of 1 percent of the fair market value of the vessel, and a derelict vessel removal fee of $2.00.

Under current law all vessel registration periods last for one year and must be renewed by June 30 of each year. Fees and excise taxes for initial registrations that occur after June 30 of a given year are prorated to the next June 30.

HB 1377 maintains the current fee and excise tax requirements placed on vessels but establishes a staggered registration program where vessel registrations will be valid for one year from the date the vessel is initially registered by the owner, as is currently the practice for vehicle registrations.

The DOL must implement the staggered vessel registration program using existing resources.

The substitute bill requires the DOL to implement the staggered vessel registration program using its existing resources rather than requiring additional funds to be appropriated.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: This bill will even out the work load associated with registering vessels, as opposed to the current system that requires counties to increase staff to accommodate the rush to get all vessels registered in June.

Testified: Representative Alexander, prime sponsor; Al Brotche, Washington State Auditor’s Association and Mason County Auditors; and Kim Wyman, Washington State Auditor’s Association and Thurston County Auditors.