BILL REQ. #:  Z-0747.2 

Read first time 01/17/14.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to derelict and abandoned vessels; amending RCW 53.08.320, 88.26.020, 79.100.050, 79.100.150, 79.100.130, 53.08.310, 82.49.010, 79.100.060, 79.100.120, 79.100.100, 43.21B.110, and 43.21B.110; amending 2013 c 291 s 39 (uncodified); adding a new section to chapter 79.100 RCW; adding a new section to chapter 43.24 RCW; adding a new section to chapter 88.26 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 88.02 RCW; adding a new section to chapter 82.49 RCW; adding a new section to chapter 79.105 RCW; adding a new section to chapter 44.28 RCW; adding a new chapter to Title 82 RCW; creating new sections; prescribing penalties; providing effective dates; and providing expiration dates.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that section 45, chapter 291, Laws of 2013 required the department of natural resources, in consultation with the department of ecology, to evaluate potential changes to laws and rules related to derelict and abandoned vessels that increase vessel owner responsibility and address challenges associated with the economics of removing vessels from the water.
     (2) The legislature further finds that, during the 2013 legislative interim, the two responsible agencies engaged in a thorough process to satisfy their legislative charge. This process involved exhausting in-state expertise on various topics and reaching out to experts in vessel deconstruction, surety bonding, letters of credit, marine insurance, taxation, federal regulation, similar programs in other states, and more. The process also involved two open invitation public meetings.
     (3) The legislature further finds that a significant number of various and competing options were discussed, analyzed, and ultimately dismissed during the process undertaken by the two agencies. It is the intent of the legislature to capture the recommendations for meeting the goals of increased vessel owner responsibility and addressing the challenges associated with the economics of removing vessels from the water that rose to the top from the process undertaken by the agencies.
     (4) It is the further intent of the legislature that this act serve as the final report due by the department of natural resources under section 45, chapter 291, Laws of 2013.

NEW SECTION.  Sec. 101   A new section is added to chapter 79.100 RCW to read as follows:
     (1) Any individual or company that purchases or otherwise receives a used vessel greater than sixty-five feet in length and more than forty years old must, prior to or concurrent with the transfer of ownership, secure a marine insurance policy consistent with this section. Proof of the marine insurance policy must be provided to:
     (a) The transferor of the vessel upon purchase;
     (b) If applicable, the department of licensing upon registration or the department of revenue upon the payment of any taxes; and
     (c) The department within seven days of taking ownership.
     (2) The transferor of a vessel greater than sixty-five feet in length and more than forty years old has an affirmative duty to ensure that any potential transferee has secured a marine insurance policy consistent with this section prior to or concurrent with the finalization of any sale. Nothing in this section prohibits the sale or other transfer of a vessel greater than sixty-five feet in length and more than forty years old to a transferee that fails to secure a marine insurance policy. However, a transferor that chooses to finalize a sale or other transfer with a transferee not in possession of a marine insurance policy assumes secondary liability for the vessel consistent with RCW 79.100.060 if the vessel is later abandoned by the transferee or becomes derelict prior to a subsequent ownership transfer.
     (3) The marine insurance policy required under this section must be secured by the transferee prior to, or concurrent with, assuming ownership of a vessel greater than sixty-five feet in length and more than forty years old. The marine insurance policy must satisfy the following conditions:
     (a) Have a term of at least twelve months following the transferee's assumption of vessel ownership;
     (b) Provide coverage of an amount that is, unless otherwise provided by the department by rule, at least three hundred thousand dollars;
     (c) Provide, unless otherwise provided by the department by rule, coverage for the removal and disposal of the vessel if it should become derelict.
     (4) The purchaser of marine insurance under this section may satisfy the requirements of this section through the purchase of multiple policies as necessary.
     (5) The department may, by rule, provide for a purchaser of a vessel to also satisfy the insurance requirements of this section through the posting of adequate security with a financial institution.
     (6) It is a gross misdemeanor to cancel a marine insurance policy obtained under this section prior to the end of the thirty-sixth month of vessel ownership or to a subsequent transfer of ownership, whichever occurs first, without obtaining a marine insurance policy in its place that satisfies the requirements of this section. The department may contact any vessel owner required by this section to have a marine insurance policy to ensure compliance with this section.

NEW SECTION.  Sec. 102   A new section is added to chapter 43.24 RCW to read as follows:
     (1) The department of licensing must, with the assistance of the department of natural resources, create and maintain a database of individuals and companies that have, within the past ten years, been:
     (a) Convicted of any criminal violation of:
     (i) RCW 79.100.110 (vessel abandoned or derelict upon aquatic lands);
     (ii) RCW 70.105.085 (hazardous waste management act violations--criminal penalties);
     (iii) RCW 77.105.090 (hazardous waste management act violations--gross misdemeanor);
     (iv) RCW 90.56.300 (oil and hazardous substance spill prevention and response act violations);
     (v) RCW 90.48.140 (water pollution control act violations);
     (vi) RCW 70.95.240 (solid waste management act violations);
     (vii) RCW 90.58.220 (shoreline management act violations);
     (viii) RCW 90.03.400, 90.03.410, and 90.03.420 (water code violations); or
     (ix) RCW 70.94.430 (Washington clean air act violations); or
     (b) Found liable for the dereliction or abandonment of a vessel in Washington or another jurisdiction.
     (2) The database must be made available on the department of licensing's internet web site.
     (3) A person or company included on the database may not purchase a vessel longer than thirty feet.
     (4)(a) The department of licensing must notify any individual or company prior to, or concurrent with, that individual or company's name appearing on the database.
     (b) Any individual or company whose name appears on the database may have the name removed from the database by either:
     (i) Posting a form of financial responsibility or securing a marine insurance policy deemed suitable by the department of natural resources that would fully protect the state in the event of future vessel abandonment; or
     (ii) For those included on the database for reasons identified under subsection (1)(b) of this section only, fully reimbursing the state for the costs of any past vessel abandonment or dereliction.
     (c) Inclusion on the database may be appealed to the pollution control hearings board.
     (5) If any person or company included on the database purchases a vessel longer than thirty feet after the person or company is notified of being included on the database, then the department may seize possession of the vessel using the same administrative process for obtaining custody of an abandoned vessel under RCW 79.100.040.

Sec. 103   RCW 53.08.320 and 2011 c 247 s 3 are each amended to read as follows:
     A moorage facility operator may adopt all rules necessary for rental and use of moorage facilities and for the expeditious collection of port charges. The rules may also establish procedures for the enforcement of these rules by port district, city, county, metropolitan park district or town personnel. The rules shall include the following:
     (1) Procedures authorizing moorage facility personnel to take reasonable measures, including the use of chains, ropes, and locks, or removal from the water, to secure vessels within the moorage facility so that the vessels are in the possession and control of the moorage facility operator and cannot be removed from the moorage facility. These procedures may be used if an owner mooring or storing a vessel at the moorage facility fails, after being notified that charges are owing and of the owner's right to commence legal proceedings to contest that such charges are owing, to pay the port charges owed or to commence legal proceedings. Notification shall be by registered mail to the owner at his or her last known address. In the case of a transient vessel, or where no address was furnished by the owner, the moorage facility operator need not give such notice prior to securing the vessel. At the time of securing the vessel, an authorized moorage facility employee shall attach to the vessel a readily visible notice. The notice shall be of a reasonable size and shall contain the following information:
     (a) The date and time the notice was attached;
     (b) A statement that if the account is not paid in full within ninety days from the time the notice is attached, the vessel may be sold at public auction to satisfy the port charges; and
     (c) The address and telephone number where additional information may be obtained concerning release of the vessel.
     After a vessel is secured, the operator shall make a reasonable effort to notify the owner by registered mail in order to give the owner the information contained in the notice.
     (2) Procedures authorizing moorage facility personnel at their discretion to move moored vessels ashore for storage within properties under the operator's control or for storage with private persons under their control as bailees of the moorage facility, if the vessel is, in the opinion of port personnel a nuisance, if the vessel is in danger of sinking or creating other damage, or is owing port charges. Costs of any such procedure shall be paid by the vessel's owner. If the owner is not known, or unable to reimburse the moorage facility operator for the costs of these procedures, the mooring facility operators may seek reimbursement of ninety percent of all reasonable and auditable costs from the derelict vessel removal account established in RCW 79.100.100.
     (3) If a vessel is secured under subsection (1) of this section or moved ashore under subsection (2) of this section, the owner who is obligated to the moorage facility operator for port charges may regain possession of the vessel by:
     (a) Making arrangements satisfactory with the moorage facility operator for the immediate removal of the vessel from the moorage facility or for authorized moorage; and
     (b) Making payment to the moorage facility operator of all port charges, or by posting with the moorage facility operator a sufficient cash bond or other acceptable security, to be held in trust by the moorage facility operator pending written agreement of the parties with respect to payment by the vessel owner of the amount owing, or pending resolution of the matter of the charges in a civil action in a court of competent jurisdiction. After entry of judgment, including any appeals, in a court of competent jurisdiction, or after the parties reach agreement with respect to payment, the trust shall terminate and the moorage facility operator shall receive so much of the bond or other security as is agreed, or as is necessary to satisfy any judgment, costs, and interest as may be awarded to the moorage facility operator. The balance shall be refunded immediately to the owner at his or her last known address.
     (4) If a vessel has been secured by the moorage facility operator under subsection (1) of this section and is not released to the owner under the bonding provisions of this section within ninety days after notifying or attempting to notify the owner under subsection (1) of this section, the vessel shall be conclusively presumed to have been abandoned by the owner.
     (5) If a vessel moored or stored at a moorage facility is abandoned, the moorage facility operator may, by resolution of its legislative authority, authorize the public sale of the vessel by authorized personnel to the highest and best bidder for cash as prescribed by this subsection (5). However, the moorage facility operator does not have to sell the vessel to a person or company included on the database maintained by the department of licensing under section 102 of this act even if that person or company is the highest and best bidder. Either a minimum bid may be established or a letter of credit may be required, or both, to discourage the future reabandonment of the vessel.
     (a) Before the vessel is sold, the owner of the vessel shall be given at least twenty days' notice of the sale in the manner set forth in subsection (1) of this section if the name and address of the owner is known. The notice shall contain the time and place of the sale, a reasonable description of the vessel to be sold, and the amount of port charges owed with respect to the vessel. The notice of sale shall be published at least once, more than ten but not more than twenty days before the sale, in a newspaper of general circulation in the county in which the moorage facility is located. Such notice shall include the name of the vessel, if any, the last known owner and address, and a reasonable description of the vessel to be sold. The moorage facility operator may bid all or part of its port charges at the sale and may become a purchaser at the sale.
     (b) Before the vessel is sold, any person seeking to redeem an impounded vessel under this section may commence a lawsuit in the superior court for the county in which the vessel was impounded to contest the validity of the impoundment or the amount of the port charges owing. Such lawsuit must be commenced within ten days of the date the notification was provided pursuant to subsection (1) of this section, or the right to a hearing shall be deemed waived and the owner shall be liable for any port charges owing the moorage facility operator. In the event of litigation, the prevailing party shall be entitled to reasonable attorneys' fees and costs.
     (c) The proceeds of a sale under this section shall first be applied to the payment of port charges. The balance, if any, shall be paid to the owner. If the owner cannot in the exercise of due diligence be located by the moorage facility operator within one year of the date of the sale, the excess funds from the sale shall revert to the derelict vessel removal account established in RCW 79.100.100. If the sale is for a sum less than the applicable port charges, the moorage facility operator is entitled to assert a claim for a deficiency.
     (d) In the event no one purchases the vessel at a sale, or a vessel is not removed from the premises or other arrangements are not made within ten days of sale, title to the vessel will revert to the moorage facility operator.
     (6) The rules authorized under this section shall be enforceable only if the moorage facility has had its tariff containing such rules conspicuously posted at its moorage facility at all times.

Sec. 104   RCW 88.26.020 and 2013 c 291 s 41 are each amended to read as follows:
     (1) Any private moorage facility operator may take reasonable measures, including the use of chains, ropes, and locks, or removal from the water, to secure vessels within the private moorage facility so that the vessels are in the possession and control of the operator and cannot be removed from the facility. These procedures may be used if an owner mooring or storing a vessel at the facility fails, after being notified that charges are owing and of the owner's right to commence legal proceedings to contest that such charges are owing, to pay charges owed or to commence legal proceedings. Notification shall be by two separate letters, one sent by first-class mail and one sent by registered mail to the owner and any lienholder of record at the last known address. In the case of a transient vessel, or where no address was furnished by the owner, the operator need not give notice prior to securing the vessel. At the time of securing the vessel, an operator shall attach to the vessel a readily visible notice. The notice shall be of a reasonable size and shall contain the following information:
     (a) The date and time the notice was attached;
     (b) A statement that if the account is not paid in full within ninety days from the time the notice is attached the vessel may be sold at public auction to satisfy the charges; and
     (c) The address and telephone number where additional information may be obtained concerning release of the vessel.
     After a vessel is secured, the operator shall make a reasonable effort to notify the owner and any lienholder of record by registered mail in order to give the owner the information contained in the notice.
     (2) A private moorage facility operator, at his or her discretion, may move moored vessels ashore for storage within properties under the operator's control or for storage with a private person under their control as bailees of the private moorage facility, if the vessel is, in the opinion of the operator, a nuisance, in danger of sinking or creating other damage, or is owing charges. The costs of any such procedure shall be paid by the vessel's owner.
     (3) If a vessel is secured under subsection (1) of this section or moved ashore under subsection (2) of this section, the owner who is obligated to the private operator for charges may regain possession of the vessel by:
     (a) Making arrangements satisfactory with the operator for the immediate removal of the vessel from the facility or for authorized moorage; and
     (b) Making payment to the operator of all charges, or by posting with the operator a sufficient cash bond or other acceptable security, to be held in trust by the operator pending written agreement of the parties with respect to payment by the vessel owner of the amount owing, or pending resolution of the matter of the charges in a civil action in a court of competent jurisdiction. After entry of judgment, including any appeals, in a court of competent jurisdiction, or after the parties reach agreement with respect to payment, the trust shall terminate and the operator shall receive so much of the bond or other security as agreed, or as is necessary, to satisfy any judgment, costs, and interest as may be awarded to the operator. The balance shall be refunded immediately to the owner at the last known address.
     (4) If a vessel has been secured by the operator under subsection (1) of this section and is not released to the owner under the bonding provisions of this section within ninety days after notifying or attempting to notify the owner under subsection (1) of this section, the vessel is conclusively presumed to have been abandoned by the owner.
     (5) If a vessel moored or stored at a private moorage facility is abandoned, the operator may authorize the public sale of the vessel by authorized personnel, consistent with this section, to the highest and best bidder for cash as follows. However, the operator does not have to sell the vessel to a person or company included on the database maintained by the department of licensing under section 102 of this act even if that person or company is the highest and best bidder:
     (a) Before the vessel is sold, the vessel owner and any lienholder of record shall be given at least twenty days' notice of the sale in the manner set forth in subsection (1) of this section if the name and address of the owner is known. The notice shall contain the time and place of the sale, a reasonable description of the vessel to be sold, and the amount of charges owed with respect to the vessel. The notice of sale shall be published at least once, more than ten but not more than twenty days before the sale, in a newspaper of general circulation in the county in which the facility is located. This notice shall include the name of the vessel, if any, the last known owner and address, and a reasonable description of the vessel to be sold. The operator may bid all or part of its charges at the sale and may become a purchaser at the sale.
     (b) Before the vessel is sold, any person seeking to redeem an impounded vessel under this section may commence a lawsuit in the superior court for the county in which the vessel was impounded to contest the validity of the impoundment or the amount of charges owing. This lawsuit must be commenced within sixty days of the date the notification was provided under subsection (1) of this section, or the right to a hearing is deemed waived and the owner is liable for any charges owing the operator. In the event of litigation, the prevailing party is entitled to reasonable attorneys' fees and costs.
     (c) The proceeds of a sale under this section shall be applied first to the payment of any liens superior to the claim for charges, then to payment of the charges, then to satisfy any other liens on the vessel in the order of their priority. The balance, if any, shall be paid to the owner. If the owner cannot in the exercise of due diligence be located by the operator within one year of the date of the sale, the excess funds from the sale shall revert to the department of revenue under chapter 63.29 RCW. If the sale is for a sum less than the applicable charges, the operator is entitled to assert a claim for deficiency, however, the deficiency judgment shall not exceed the moorage fees owed for the previous six-month period.
     (d) In the event no one purchases the vessel at a sale, or a vessel is not removed from the premises or other arrangements are not made within ten days of sale, title to the vessel will revert to the operator.
     (e) Either a minimum bid may be established or a letter of credit may be required from the buyer, or both, to discourage the future abandonment of the vessel.
     (6) The rights granted to a private moorage facility operator under this section are in addition to any other legal rights an operator may have to hold and sell a vessel and in no manner does this section alter those rights, or affect the priority of other liens on a vessel.

Sec. 105   RCW 79.100.050 and 2002 c 286 s 6 are each amended to read as follows:
     (1) After taking custody of a vessel, the authorized public entity may use or dispose of the vessel in any appropriate and environmentally sound manner without further notice to any owners, but must give preference to uses that derive some monetary benefit from the vessel, either in whole or in scrap. If no value can be derived from the vessel, the authorized public entity must give preference to the least costly, environmentally sound, reasonable disposal option. Any disposal operations must be consistent with the state solid waste disposal provisions provided for in chapter 70.95 RCW.
     (2) If the authorized public entity chooses to offer the vessel at a public auction, either a minimum bid may be set or a letter of credit may be required, or both, to discourage future reabandonment of the vessel. The authorized public entity does not have to sell the vessel to a person or company included on the database maintained by the department of licensing under section 102 of this act even if that person or company is the highest and best bidder.
     (3) Proceeds derived from the sale of the vessel must first be applied to any administrative costs that are incurred by the authorized public entity during the notification procedures set forth in RCW 79.100.040, removal and disposal costs, and costs associated with environmental damages directly or indirectly caused by the vessel. If the proceeds derived from the vessel exceed all administrative costs, removal and disposal costs, and costs associated with environmental damages directly or indirectly caused by the vessel, the remaining moneys must be applied to satisfying any liens registered against the vessel.
     (4) Any value derived from a vessel greater than all liens and costs incurred reverts to the derelict vessel removal account established in RCW 79.100.100.

Sec. 106   RCW 79.100.150 and 2013 c 291 s 38 are each amended to read as follows:
     (1) A vessel owner must obtain a vessel inspection under this section prior to transferring a vessel that is:
     (a) More than sixty-five feet in length and more than forty years old; and
     (b) Either:
     (i) Is registered or required to be registered under chapter 88.02 RCW; or
     (ii) Is listed or required to be listed under chapter 84.40 RCW.
     (2) If the vessel inspection determines that the vessel is not seaworthy and that the value of the vessel is less than the anticipated costs required to return the vessel to seaworthiness, then the vessel owner may not sell or transfer ownership of the vessel unless:
     (a) The vessel is repaired to a seaworthy state prior to the transfer of ownership; or
     (b) The vessel is being sold for scrap, salvage, or another use that will remove the vessel from state waters.
     (3) Where required under subsection (1) of this section, a vessel owner must provide a copy of the vessel inspection documentation to the transferee and, if the department did not conduct the inspection, to the department prior to the transfer.
     (((3))) (4) Unless rules adopted by the department provide otherwise, the vessel inspection required under this section must be contained in a formal marine survey conducted by a third party to the transaction. The survey must include, at a minimum, a conclusion relating to the seaworthiness of the vessel, an estimate of the vessel's fair market value, and, if applicable, an estimate as to the anticipated cost of repairs necessary to return the vessel to seaworthiness.
     (5) The department may, by rule, allow other forms of vessel condition determinations, such as United States coast guard certificate of inspection, to replace the requirements for a formal marine survey under this section.
     (6) Failure to comply with the requirements of ((subsections (1) and (2) of)) this section will result in the transferor having secondary liability under RCW 79.100.060 if the vessel is later abandoned by the transferee or becomes derelict prior to a subsequent ownership transfer.
     (7) Nothing in this section prevents a vessel owner from removing, dismantling, and lawfully disposing of any vessel lawfully under the vessel owner's control.

Sec. 201   RCW 79.100.130 and 2013 c 291 s 4 are each amended to read as follows:
     (1) A private moorage facility owner, as those terms are defined in RCW 88.26.010, may contract with the department or a local government for the purpose of participating in the derelict vessel removal program.
     (2) If a contract is completed under this section, the department or local government shall serve as the authorized public entity for the removal of a derelict or abandoned vessel from the property of the private moorage facility owner. The contract must provide for the private moorage facility owner to be financially responsible for the removal and disposal costs that are not reimbursed by the department as provided under RCW 79.100.100, and any additional reasonable administrative costs incurred by the department or local government during the removal of the derelict or abandoned vessel.
     (3) Prior to the commencement of any removal ((which)) under this section for which a local government serves as the authorized public entity and that will seek reimbursement from the derelict vessel removal program, the contract and the proposed vessel removal shall be submitted to the department for review and approval. The local government shall use the procedure specified under RCW 79.100.100(((6))).
     (4) If the private moorage facility owner has already seized the vessel under chapter 88.26 RCW and title has reverted to the moorage facility, the moorage facility is not considered the owner under this chapter for purposes of cost recovery for actions taken under this section.
     (5)(a) The department and all local governments have the discretion as to whether to enter into contracts to serve as the authorized public entity under this section for vessels located at a private moorage facility.
     (b) The department may not enter into a contract to serve as the authorized public entity under this section for vessels located at a private moorage facility if the private moorage facility is not in compliance with the mandatory insurance requirements of section 202 of this act.

NEW SECTION.  Sec. 202   A new section is added to chapter 88.26 RCW to read as follows:
     (1) Every private moorage facility operator must:
     (a) Obtain and maintain insurance coverage for the private moorage facility;
     (b) Require, as a condition of moorage, all vessels other than transient vessels to display proof of marine insurance.
     (2) Unless rules adopted by the department require otherwise, insurance maintained by private moorage facility operators and required of moored vessels must:
     (a) Provide coverage of at least three hundred thousand dollars; and
     (b) Include, at a minimum, general, legal, and pollution liability coverage.
     (3) The purchaser of marine insurance under this section may satisfy the requirements of this section through the purchase of multiple policies as necessary.
     (4) Any private moorage facility operator who fails to satisfy the requirements of this section incurs secondary liability under RCW 79.100.060 for any vessel located at the private moorage facility that meets the definition of derelict vessel or abandoned vessel as those terms are defined in RCW 79.100.010.

NEW SECTION.  Sec. 203   A new section is added to chapter 53.08 RCW to read as follows:
     (1) Every moorage facility operator must:
     (a) Obtain and maintain insurance coverage for the moorage facility;
     (b) Require, as a condition of moorage, all vessels other than transient vessels to display proof of marine insurance.
     (2) Unless rules adopted by the department require otherwise, insurance maintained by moorage facility operators and required of moored vessels must:
     (a) Provide coverage of at least three hundred thousand dollars; and
     (b) Include, at a minimum, general, legal, and pollution liability coverage.
     (3) The purchaser of marine insurance under this section may satisfy the requirements of this section through the purchase of multiple policies as necessary.
     (4) Any moorage facility operator who fails to satisfy the requirements of this section incurs secondary liability under RCW 79.100.060 for any vessel located at the moorage facility that meets the definition of derelict vessel or abandoned vessel as those terms are defined in RCW 79.100.010.

Sec. 204   RCW 53.08.310 and 1986 c 260 s 1 are each amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this section, section 203 of this act, and RCW 53.08.320.
     (1) "Port charges" mean charges of a moorage facility operator for moorage and storage, and all other charges owing or to become owing under a contract between a vessel owner and the moorage facility operator, or under an officially adopted tariff including, but not limited to, costs of sale and related legal expenses.
     (2) "Vessel" means every species of watercraft or other artificial contrivance capable of being used as a means of transportation on water and which does not exceed two hundred feet in length. "Vessel" includes any trailer used for the transportation of watercraft.
     (3) "Moorage facility" means any properties or facilities owned or operated by a moorage facility operator which are capable of use for the moorage or storage of vessels.
     (4) "Moorage facility operator" means any port district, city, town, metropolitan park district, or county which owns and/or operates a moorage facility.
     (5) "Owner" means every natural person, firm, partnership, corporation, association, or organization, or agent thereof, with actual or apparent authority, who expressly or impliedly contracts for use of a moorage facility.
     (6) "Transient vessel" means a vessel using a moorage facility and which belongs to an owner who does not have a moorage agreement with the moorage facility operator. Transient vessels include, but are not limited to: Vessels seeking a harbor of refuge, day use, or overnight use of a moorage facility on a space-as-available basis.

NEW SECTION.  Sec. 301   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of vessel deconstruction performed at:
     (a) A qualified vessel deconstruction facility; or
     (b) An area over water that has been permitted under section 402 of the clean water act of 1972 (33 U.S.C. Sec. 1342) for vessel deconstruction.
     (2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a)(i) "Vessel deconstruction" means permanently dismantling a vessel, including: Abatement and removal of hazardous materials; the removal of mechanical, hydraulic, or electronic components or other vessel machinery and equipment; and either the cutting apart or disposal, or both, of vessel infrastructure. For the purposes of this subsection, "hazardous materials" includes fuel, asbestos, polychlorinated biphenyls, and oils.
     (ii) "Vessel deconstruction" does not include vessel modification or repair.
     (b) "Qualified vessel deconstruction facility" means structures, including floating structures, that are permitted under section 402 of the clean water act of 1972 (33 U.S.C. Sec. 1342) for vessel deconstruction.
     (3) Sellers making tax-exempt sales under this section must obtain from the purchaser an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files. In lieu of an exemption certificate, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.

NEW SECTION.  Sec. 302   Section 301 of this act takes effect October 1, 2014.

NEW SECTION.  Sec. 401   (1) The legislature finds that:
     (a) Derelict and abandoned vessels are a threat to the safety of the public waterways, an environmental hazard for humans and marine life, and an occupational danger for persons that make their living on the waters of this state;
     (b) Derelict vessel removal fees are imposed when recreational vessels are registered with the department of licensing. The accumulation of these fees is sufficient for the removal and disposal of recreational vessels that become derelict or abandoned;
     (c) Derelict vessel removal fees do not apply to commercial vessels. Former commercial vessels are among the most costly to remove from Washington waters and to dispose of in an environmentally responsible manner. The costs for removing and disposing of these vessels far exceeds the funding provided by the derelict vessel removal fees paid by recreational vessels;
     (d) According to the department of natural resources, as of the effective date of this section, there is a significant backlog of abandoned or derelict vessels that are former commercial vessels; and
     (e) The use of general fund revenue to pay for the removal and disposal of derelict or abandoned vessels places an undue burden on the nonboating public and reduces the revenue available to pay for necessary governmental services.
     (2) The legislature intends for either the owners or operators, or both, of commercial vessels to pay their fair share for the removal of abandoned or derelict vessels by imposing a fee for the moorage of commercial vessels.

NEW SECTION.  Sec. 402   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commercial vessel" means a vessel that is required by RCW 84.40.065 to be listed with the department.
     (2) "Department" means the department of revenue.
     (3) "Moorage facility" means a property or facility located in this state that is used for the moorage of commercial vessels and is owned or operated by a moorage provider. The term does not include residential dock owners who do not charge a fee for mooring a vessel.
     (4) "Moorage facility operator" has the same meaning as in RCW 53.08.310.
     (5) "Person" has the same meaning as in RCW 82.04.030 and also includes the state of Washington.
     (6) "Moorage provider" means any public or private entity that owns or operates any moorage facility, including a moorage facility operator, private moorage facility operator, the state of Washington, or any other person.
     (7) "Owner" means every natural person, firm, partnership, corporation, association, or organization, or their agent, with actual or apparent authority, who expressly or impliedly contracts for use of a moorage facility.
     (8) "Private moorage facility" has the same meaning as in RCW 88.26.010.
     (9) "Private moorage facility operator" has the same meaning as in RCW 88.26.010.
     (10) "Vessel" has the same meaning as in RCW 88.02.310.

NEW SECTION.  Sec. 403   (1) A fee is imposed for the moorage of commercial vessels at a moorage facility. The fee is equal to twenty cents per vessel foot as measured by extreme length of the vessel, rounded up to the nearest whole foot, for each calendar month or portion of a calendar month, that an owner has secured authorized moorage for a commercial vessel at a moorage facility.
     (2) The fee imposed in this section must be paid by the owner of a commercial vessel to the moorage provider.
     (3)(a) A moorage provider must:
     (i) Collect the full amount of the fee from the owner of a commercial vessel; and
     (ii) Remit the fee to the department in accordance with RCW 82.32.045.
     (b) If a person who owns a moorage facility is not also the operator of the moorage facility, the owner of the moorage facility need not collect the fee imposed by this section. Nothing in this subsection (3)(b) may be construed to relieve the operator of the moorage facility from the obligation to collect the fee imposed by this section.
     (c) A moorage provider is relieved of the responsibility to collect the fee imposed by this section if the owner has previously paid the fee to another moorage provider during the same calendar month and:
     (i) The owner provides proof in a form and manner prescribed by the department that the fee has been paid; and
     (ii) The moorage provider maintains documentation in a form and manner prescribed by the department to verify that the moorage provider was not responsible for collecting the fee.
     (4) All moneys collected under this section must be deposited into the derelict vessel removal account created in RCW 79.100.100.
     (5) The fee imposed in this section must be construed to be a tax only for the purpose of applying the provisions of chapter 82.32 RCW to the fee imposed in this section.

NEW SECTION.  Sec. 404   (1) The fee required by this chapter, to be collected by a moorage provider, is deemed to be held in trust by that person until paid to the department. Any person who appropriates or converts the fee collected to the person's own use or to any use other than the payment of the fee to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a gross misdemeanor.
     (2) In case any person fails to collect the fee imposed in this chapter or, having collected the fee, fails to pay it to the department in the manner prescribed by this chapter, whether the failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, the person will, nevertheless, be personally liable to the state for the amount of the fee.
     (3)(a) If the department has issued a warrant under the authority of RCW 82.32.210 for unpaid fees imposed by this chapter and collected by a limited liability business entity, and that entity has been terminated, dissolved, or abandoned, or is insolvent, then the department may pursue collection of the unpaid fees, including penalties and interest on those unpaid fees, against any or all of the responsible individuals to the same extent and in the same manner as provided in RCW 82.32.145.
     (b) For purposes of this subsection:
     (i) "Limited liability business entity" has the same meaning as defined in RCW 82.32.145; and
     (ii) "Responsible individual" has the same meaning as defined in RCW 82.32.145, except that references to "trust fund tax liability" and "tax warrant" in the RCW 82.32.145 definition of "responsible individual" must be construed as referring respectively to unpaid fees collected by a moorage provider and to a warrant issued under the authority of RCW 82.32.210 for the unpaid fees.
     (4) The amount of the fee, until paid by the owner of the commercial vessel to either the moorage provider or to the department, constitutes a debt from the owner to the moorage provider. Any moorage provider who fails or refuses to collect the fee as required by this chapter with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any owner who refuses to pay any fee due under this chapter, is guilty of a misdemeanor.

NEW SECTION.  Sec. 405   The fee imposed in section 403 of this act does not apply to moorage for a term of less than one day.

NEW SECTION.  Sec. 406   The fee imposed in section 403 of this act applies to the moorage of commercial vessels occurring on or after the effective date of section 403 of this act, regardless of whether the moorage commenced before the effective date of section 403 of this act.

NEW SECTION.  Sec. 407   Sections 402 through 406 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 408   Sections 401 through 406 of this act take effect January 1, 2015.

NEW SECTION.  Sec. 501   A new section is added to chapter 88.02 RCW to read as follows:
     (1) A moorage provider that provides long-term moorage must obtain the following information and documentation from persons entering into long-term moorage agreements with the moorage provider:
     (a) The name of the legal owner of the vessel;
     (b) A local contact person and that person's address and telephone number, if different than the owner;
     (c) The owner's address and telephone number;
     (d) The vessel's hull identification number;
     (e) If applicable, the vessel's coast guard registration;
     (f) The vessel's home port;
     (g) The date on which the moorage began;
     (h) The vessel's country or state of registration and registration number; and
     (i) Proof of vessel registration, a written statement of the lessee's intent to register a vessel, or an affidavit in a form and manner approved by the department certifying that the vessel is exempt from state vessel registration requirements as provided by RCW 88.02.570.
     (2) For moorage agreements entered into effective on or after July 1, 2014, a long-term moorage agreement for vessels not registered in this state must include, in a form and manner approved by the department and the department of revenue, notice of state vessel registration requirements as provided by this chapter and tax requirements as provided by chapters 82.08, 82.12, and 82.49 RCW and listing requirements as provided by RCW 84.40.065.
     (3) A moorage provider must maintain records of the information and documents required under this section for at least two years. Upon request, a moorage provider must:
     (a) Permit any authorized agent of a requesting agency to:
     (i) Inspect the moorage facility for vessels that are not registered as required by this chapter or listed as required under RCW 84.40.065; and
     (ii) Inspect and copy records identified in subsection (1) of this section for vessels that the requesting agency determines are not properly registered or listed as required by law; or
     (b) Provide to the requesting agency:
     (i) Information as provided in subsection (1)(a), (c), (d), and (e) of this section; and
     (ii) Information as provided in subsection (1)(b), (f), (g), (h), and (i) of this section for those vessels that the requesting agency subsequently determines are not registered as required by this chapter, listed as required under RCW 84.40.065.
     (4) Requesting agencies must coordinate their requests to ensure that a moorage provider does not receive more than two requests per calendar year. For the purpose of enforcing vessel registration and vessel listing requirements, requesting agencies may share the results of information requests with each other.
     (5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Long-term moorage" means moorage provided for more than thirty consecutive days.
     (b) "Moorage facility" means any properties or facilities located in this state that are used for the moorage of vessels and are owned or operated by a moorage provider.
     (c) "Moorage facility operator" has the same meaning as defined in RCW 53.08.310.
     (d) "Moorage provider" means any public or private entity that owns or operates any moorage facility, including a moorage facility operator, private moorage facility operator, the state of Washington, or any other person.
     (e) "Private moorage facility operator" has the same meaning as defined in RCW 88.26.010.
     (f) "Requesting agency" means the department, the department of revenue, or the department of natural resources.

NEW SECTION.  Sec. 502   A new section is added to chapter 82.49 RCW to read as follows:
     (1) An owner of a vessel that is not registered as required by chapter 88.02 RCW and for which watercraft excise tax is due under this chapter is liable for a penalty in the following amount:
     (a) One hundred dollars for the owner's first violation;
     (b) Two hundred dollars for the owner's second violation involving the same or any other vessel; or
     (c) Four hundred dollars for the owner's third and successive violations involving the same or any other vessel.
     (2) The department of revenue may collect this penalty under the procedures established in chapter 82.32 RCW. The penalty imposed under this section is in addition to any other civil or criminal penalty imposed by law.

Sec. 503   RCW 82.49.010 and 2010 c 161 s 1044 are each amended to read as follows:
     (1) An excise tax is imposed for the privilege of using a vessel upon the waters of this state, except vessels exempt under RCW 82.49.020. The annual amount of the excise tax is one-half of one percent of fair market value, as determined under this chapter, or five dollars, whichever is greater. Violation of this subsection is a misdemeanor.
     (2) ((Persons who are)) A person who is required under chapter 88.02 RCW to register a vessel in this state and who fails to register the vessel in this state or registers the vessel in another state or foreign country and avoids the Washington watercraft excise tax ((are)) is guilty of a gross misdemeanor and ((are)) is liable for such unpaid excise tax. The department of revenue may assess and collect the unpaid excise tax under chapter 82.32 RCW, including the penalty imposed in section 502 of this act and penalties and interest provided in chapter 82.32 RCW.
     (3) The excise tax upon a vessel registered for the first time in this state shall be imposed for a twelve-month period, including the month in which the vessel is registered, unless the director of licensing extends or diminishes vessel registration periods for the purpose of staggered renewal periods under RCW 88.02.560. A vessel is registered for the first time in this state when the vessel was not registered in this state for the immediately preceding registration year, or when the vessel was registered in another jurisdiction for the immediately preceding year.

NEW SECTION.  Sec. 601   A new section is added to chapter 79.105 RCW to read as follows:
     (1) Except as provided in subsection (2) of this section, a person may not moor, anchor, or otherwise leave a vessel in the same area on state-owned aquatic lands for a period of more than thirty consecutive days or for more than a total of ninety days in any three hundred sixty-five-day period unless:
     (a) The department or lessee of the state-owned aquatic lands has given express consent for the vessel that is moored, anchored, or otherwise left to exceed this time period and the anchoring, mooring, or leaving the vessel is not otherwise unlawful; or
     (b) The department, the federal government, or a state, local, or port with authority has posted or adopted different time period restrictions.
     (2) A person may not moor, anchor, or otherwise leave a vessel in any location on state-owned aquatic lands for commercial purposes without the express consent of the department unless the mooring, anchoring, or leaving of a nonrecreational vessel on state-owned aquatic lands is incidental to the act of navigation, is required due to an emergency, or is directed by an entity with jurisdiction and authority.
     (3) A violation of this section is a natural resource infraction under chapter 7.84 RCW.
     (4) Any law enforcement officer of the state or its political subdivisions may enforce this section and any rules adopted by the department under this section within the officer's jurisdiction.
     (5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Commercial purposes" means that a vessel is moored, anchored, or otherwise left on aquatic lands in connection with an activity or operation involving the buying, selling, or bartering of goods or services, regardless of whether the use or activity is intended to produce a profit.
     (b) "In the same area" means within a radius of five miles of any location where the vessel was previously moored, anchored, or otherwise left on aquatic lands.

Sec. 602   RCW 79.100.060 and 2013 c 291 s 40 are each amended to read as follows:
     (1) The owner of an abandoned or derelict vessel, or any person or entity that has incurred secondary liability ((under RCW 79.100.150)) for an abandoned or derelict vessel under this chapter or section 202 or 203 of this act, is responsible for reimbursing an authorized public entity for all reasonable and auditable costs associated with the removal or disposal of the owner's vessel under this chapter. These costs include, but are not limited to, costs incurred exercising the authority granted in RCW 79.100.030, all administrative costs incurred by the authorized public entity during the procedure set forth in RCW 79.100.040, removal and disposal costs, and costs associated with environmental damages directly or indirectly caused by the vessel. An authorized public entity that has taken temporary possession of a vessel may require that all reasonable and auditable costs associated with the removal of the vessel be paid before the vessel is released to the owner.
     (2) Reimbursement for costs may be sought from an owner, or any person or entity that has incurred secondary liability under ((RCW 79.100.150)) this chapter or section 202 or 203 of this act, who is identified subsequent to the vessel's removal and disposal.
     (3) If the full amount of all costs due to the authorized public entity under this chapter is not paid to the authorized public entity within thirty days after first notifying the responsible parties of the amounts owed, the authorized public entity or the department may bring an action in any court of competent jurisdiction to recover the costs, plus reasonable attorneys' fees and costs incurred by the authorized public entity.

Sec. 603   RCW 79.100.120 and 2013 c 291 s 32 are each amended to read as follows:
     (1) ((A person)) (a) An owner or lien holder seeking to contest an authorized public entity's decision to take temporary possession or custody of a vessel under this chapter, or to contest the amount of reimbursement owed to an authorized public entity under this chapter, may request a hearing in accordance with this section.
     (b) A transferor with secondary liability under this chapter may commence a lawsuit in the superior court for the county in which custody of the vessel was taken to contest the transferor's liability or the amount of reimbursement owed the authorized public entity under this chapter.
     (2)(a) If the contested decision or action was undertaken by a state agency, a written request for a hearing related to the decision or action must be filed with the pollution control hearings board and served on the state agency in accordance with RCW 43.21B.230 (2) and (3) within thirty days of the date the authorized public entity acquires custody of the vessel under RCW 79.100.040, or if the vessel is redeemed before the authorized public entity acquires custody, the date of redemption, or the right to a hearing is deemed waived and the vessel's owner is liable for any costs owed the authorized public entity. In the event of litigation, the prevailing party is entitled to reasonable attorneys' fees and costs.
     (b) Upon receipt of a timely hearing request, the pollution control hearings board shall proceed to hear and determine the validity of the decision to take the vessel into temporary possession or custody and the reasonableness of any towing, storage, or other charges permitted under this chapter. Within five business days after the request for a hearing is filed, the pollution control hearings board shall notify the vessel owner requesting the hearing and the authorized public entity of the date, time, and location for the hearing. Unless the vessel is redeemed before the request for hearing is filed, the pollution control hearings board shall set the hearing on a date that is within ten business days of the filing of the request for hearing. If the vessel is redeemed before the request for a hearing is filed, the pollution control hearings board shall set the hearing on a date that is within sixty days of the filing of the request for hearing.
     (c) Consistent with RCW 43.21B.305, a proceeding brought under this subsection may be heard by one member of the pollution control hearings board, whose decision is the final decision of the board.
     (3)(a) If the contested decision or action was undertaken by a metropolitan park district, port district, city, town, or county, which has adopted rules or procedures for contesting decisions or actions pertaining to derelict or abandoned vessels, those rules or procedures must be followed in order to contest a decision to take temporary possession or custody of a vessel, or to contest the amount of reimbursement owed.
     (b) If the metropolitan park district, port district, city, town, or county has not adopted rules or procedures for contesting decisions or actions pertaining to derelict or abandoned vessels, then ((a person)) an owner or lien holder requesting a hearing under this section must follow the procedure established in subsection (2) of this section.

Sec. 604   RCW 79.100.100 and 2013 c 291 s 2 are each amended to read as follows:
     (1)(a) The derelict vessel removal account is created in the state treasury. All receipts from RCW 79.100.050 and 79.100.060 and those moneys specified in RCW 88.02.640 must be deposited into the account. The account is authorized to receive fund transfers and appropriations from the general fund, deposits from the derelict vessel removal surcharge under RCW 88.02.640(4), deposits under section 403 of this act, as well as gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of this chapter and expend the same or any income according to the terms of the gifts, grants, or endowments provided those terms do not conflict with any provisions of this section or any guidelines developed to prioritize reimbursement of removal projects associated with this chapter.
     (b) Moneys in the account may only be spent after appropriation. Expenditures from the account may only be used by the department for developing and administering the vessel turn-in program created in RCW 79.100.160 and to reimburse authorized public entities for up to ninety percent of the total reasonable and auditable administrative, removal, disposal, and environmental damage costs of abandoned or derelict vessels when the previous owner is either unknown after a reasonable search effort or insolvent. Reimbursement may not be made unless the department determines that the public entity has made reasonable efforts to identify and locate the party responsible for the vessel, or any other person or entity that has incurred secondary liability ((under RCW 79.100.150)) for the vessel under this chapter or section 202 or 203 of this act, regardless of the title of owner of the vessel.
     (c) Funds in the account resulting from transfers from the general fund or from the deposit of funds from the watercraft excise tax as provided for under RCW 82.49.030 must be used to reimburse one hundred percent of costs and should be prioritized for the removal of large vessels.
     (d) Costs associated with the removal and disposal of an abandoned or derelict vessel under the authority granted in RCW 53.08.320 also qualify for reimbursement from the derelict vessel removal account.
     (e) In each biennium, up to twenty percent of the expenditures from the derelict vessel removal account may be used for administrative expenses of the department of licensing and department of natural resources in implementing this chapter.
     (2) Priority for use of this account is for the removal of derelict and abandoned vessels that are in danger of sinking, breaking up, or blocking navigation channels, or that present environmental risks such as leaking fuel or other hazardous substances. The department must develop criteria, in the form of informal guidelines, to prioritize removal projects associated with this chapter, but may not consider whether the applicant is a state or local entity when prioritizing. The guidelines must also include guidance to the authorized public entities as to what removal activities and associated costs are reasonable and eligible for reimbursement.
     (3) The department must keep all authorized public entities apprised of the balance of the derelict vessel removal account and the funds available for reimbursement. The guidelines developed by the department must also be made available to the other authorized public entities. This subsection (3) must be satisfied by utilizing the least costly method, including maintaining the information on the department's internet web site, or any other cost-effective method.
     (4) An authorized public entity may contribute its ten percent of costs that are not eligible for reimbursement by using in-kind services, including the use of existing staff, equipment, and volunteers.
     (5) This chapter does not guarantee reimbursement for an authorized public entity. Authorized public entities seeking certainty in reimbursement prior to taking action under this chapter may first notify the department of their proposed action and the estimated total costs. Upon notification by an authorized public entity, the department must make the authorized public entity aware of the status of the fund and the likelihood of reimbursement being available. The department may offer technical assistance and assure reimbursement for up to two years following the removal action if an assurance is appropriate given the balance of the fund and the details of the proposed action.

Sec. 605   RCW 43.21B.110 and 2013 c 291 s 33 are each amended to read as follows:
     (1) The hearings board shall only have jurisdiction to hear and decide appeals from the following decisions of the department, the director, local conservation districts, the air pollution control boards or authorities as established pursuant to chapter 70.94 RCW, local health departments, the department of natural resources, the department of fish and wildlife, the parks and recreation commission, the department of licensing, and authorized public entities described in chapter 79.100 RCW:
     (a) Civil penalties imposed pursuant to RCW 18.104.155, 70.94.431, 70.105.080, 70.107.050, 76.09.170, 77.55.291, 78.44.250, 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 90.64.102.
     (b) Orders issued pursuant to RCW 18.104.043, 18.104.060, 43.27A.190, 70.94.211, 70.94.332, 70.105.095, 86.16.020, 88.46.070, 90.14.130, 90.46.250, 90.48.120, and 90.56.330.
     (c) A final decision by the department or director made under chapter 183, Laws of 2009.
     (d) Except as provided in RCW 90.03.210(2), the issuance, modification, or termination of any permit, certificate, or license by the department or any air authority in the exercise of its jurisdiction, including the issuance or termination of a waste disposal permit, the denial of an application for a waste disposal permit, the modification of the conditions or the terms of a waste disposal permit, or a decision to approve or deny an application for a solid waste permit exemption under RCW 70.95.300.
     (e) Decisions of local health departments regarding the grant or denial of solid waste permits pursuant to chapter 70.95 RCW.
     (f) Decisions of local health departments regarding the issuance and enforcement of permits to use or dispose of biosolids under RCW 70.95J.080.
     (g) Decisions of the department regarding waste-derived fertilizer or micronutrient fertilizer under RCW 15.54.820, and decisions of the department regarding waste-derived soil amendments under RCW 70.95.205.
     (h) Decisions of local conservation districts related to the denial of approval or denial of certification of a dairy nutrient management plan; conditions contained in a plan; application of any dairy nutrient management practices, standards, methods, and technologies to a particular dairy farm; and failure to adhere to the plan review and approval timelines in RCW 90.64.026.
     (i) Any other decision by the department or an air authority which pursuant to law must be decided as an adjudicative proceeding under chapter 34.05 RCW.
     (j) Decisions of the department of natural resources, the department of fish and wildlife, and the department that are reviewable under chapter 76.09 RCW, and the department of natural resources' appeals of county, city, or town objections under RCW 76.09.050(7).
     (k) Forest health hazard orders issued by the commissioner of public lands under RCW 76.06.180.
     (l) Decisions of the department of fish and wildlife to issue, deny, condition, or modify a hydraulic project approval permit under chapter 77.55 RCW.
     (m) Decisions of the department of natural resources that are reviewable under RCW 78.44.270.
     (n) Decisions of an authorized public entity under RCW 79.100.010 to take temporary possession or custody of a vessel or to contest the amount of reimbursement owed that are reviewable by the hearings board under RCW 79.100.120.
     (o) Inclusion on the database of individuals or companies created under section 102 of this act to whom certain vessels may not be sold.
     (2) The following hearings shall not be conducted by the hearings board:
     (a) Hearings required by law to be conducted by the shorelines hearings board pursuant to chapter 90.58 RCW.
     (b) Hearings conducted by the department pursuant to RCW 70.94.332, 70.94.390, 70.94.395, 70.94.400, 70.94.405, 70.94.410, and 90.44.180.
     (c) Appeals of decisions by the department under RCW 90.03.110 and 90.44.220.
     (d) Hearings conducted by the department to adopt, modify, or repeal rules.
     (3) Review of rules and regulations adopted by the hearings board shall be subject to review in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW.

Sec. 606   RCW 43.21B.110 and 2013 c 291 s 34 are each amended to read as follows:
     (1) The hearings board shall only have jurisdiction to hear and decide appeals from the following decisions of the department, the director, local conservation districts, the air pollution control boards or authorities as established pursuant to chapter 70.94 RCW, local health departments, the department of natural resources, the department of fish and wildlife, the parks and recreation commission, the department of licensing, and authorized public entities described in chapter 79.100 RCW:
     (a) Civil penalties imposed pursuant to RCW 18.104.155, 70.94.431, 70.105.080, 70.107.050, 76.09.170, 77.55.291, 78.44.250, 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 90.64.102.
     (b) Orders issued pursuant to RCW 18.104.043, 18.104.060, 43.27A.190, 70.94.211, 70.94.332, 70.105.095, 86.16.020, 88.46.070, 90.14.130, 90.46.250, 90.48.120, and 90.56.330.
     (c) Except as provided in RCW 90.03.210(2), the issuance, modification, or termination of any permit, certificate, or license by the department or any air authority in the exercise of its jurisdiction, including the issuance or termination of a waste disposal permit, the denial of an application for a waste disposal permit, the modification of the conditions or the terms of a waste disposal permit, or a decision to approve or deny an application for a solid waste permit exemption under RCW 70.95.300.
     (d) Decisions of local health departments regarding the grant or denial of solid waste permits pursuant to chapter 70.95 RCW.
     (e) Decisions of local health departments regarding the issuance and enforcement of permits to use or dispose of biosolids under RCW 70.95J.080.
     (f) Decisions of the department regarding waste-derived fertilizer or micronutrient fertilizer under RCW 15.54.820, and decisions of the department regarding waste-derived soil amendments under RCW 70.95.205.
     (g) Decisions of local conservation districts related to the denial of approval or denial of certification of a dairy nutrient management plan; conditions contained in a plan; application of any dairy nutrient management practices, standards, methods, and technologies to a particular dairy farm; and failure to adhere to the plan review and approval timelines in RCW 90.64.026.
     (h) Any other decision by the department or an air authority which pursuant to law must be decided as an adjudicative proceeding under chapter 34.05 RCW.
     (i) Decisions of the department of natural resources, the department of fish and wildlife, and the department that are reviewable under chapter 76.09 RCW, and the department of natural resources' appeals of county, city, or town objections under RCW 76.09.050(7).
     (j) Forest health hazard orders issued by the commissioner of public lands under RCW 76.06.180.
     (k) Decisions of the department of fish and wildlife to issue, deny, condition, or modify a hydraulic project approval permit under chapter 77.55 RCW.
     (l) Decisions of the department of natural resources that are reviewable under RCW 78.44.270.
     (m) Decisions of an authorized public entity under RCW 79.100.010 to take temporary possession or custody of a vessel or to contest the amount of reimbursement owed that are reviewable by the hearings board under RCW 79.100.120.
     (n) Inclusion on the database of individuals or companies created under section 102 of this act to whom certain vessels may not be sold.
     (2) The following hearings shall not be conducted by the hearings board:
     (a) Hearings required by law to be conducted by the shorelines hearings board pursuant to chapter 90.58 RCW.
     (b) Hearings conducted by the department pursuant to RCW 70.94.332, 70.94.390, 70.94.395, 70.94.400, 70.94.405, 70.94.410, and 90.44.180.
     (c) Appeals of decisions by the department under RCW 90.03.110 and 90.44.220.
     (d) Hearings conducted by the department to adopt, modify, or repeal rules.
     (3) Review of rules and regulations adopted by the hearings board shall be subject to review in accordance with the provisions of the administrative procedure act, chapter 34.05 RCW.

Sec. 607   2013 c 291 s 39 (uncodified) is amended to read as follows:
     (1) By December 31, ((2013)) 2014, the department of natural resources shall adopt by rule procedures and standards for the vessel inspections required under ((section 38 of this act)) RCW 79.100.150. The procedures and standards must identify the public or private entities authorized to conduct inspections, the required elements of an inspection, and the manner in which inspection results must be documented. The vessel inspection required under this section must be designed to:
     (a) Provide the transferee with current information about the condition of the vessel, including the condition of its hull and key operating systems, prior to the transfer;
     (b) Provide the department of natural resources with information under (a) of this subsection for each applicable vessel and, more broadly, to improve the department's understanding of the condition of the larger, older boats in the state's waters;
     (c) Discourage the future abandonment or dereliction of the vessel; and
     (d) Maximize the efficiency and effectiveness of the inspection process, including with respect to the time and resources of the transferor, transferee, and the state.
     (2) The department of natural resources shall work with appropriate government agencies and stakeholders in designing the inspection process and standards under this section.
     (3) This section expires July 31, ((2014)) 2015.

NEW SECTION.  Sec. 608   A new section is added to chapter 44.28 RCW to read as follows:
     (1) This section is the tax preference performance statement for the tax preference contained in section 301 of this act. This performance statement is only intended to be used for subsequent evaluation of this tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
     (2) The legislature categorizes this tax preference as intended to induce certain designated behavior by taxpayers as indicated in RCW 83.32.808(2)(a).
     (3) It is the legislature's specific public policy objective to decrease the number of abandoned and derelict vessels by providing incentives to increase vessel deconstruction in Washington by lowering the cost of deconstruction. It is the legislature's intent to provide businesses engaged in vessel deconstruction a sales tax exemption for sales of vessel deconstruction. This incentive will lower the costs associated with vessel deconstruction and encourage businesses to make investments in vessel deconstruction facilities. Pursuant to chapter 43.136 RCW, the joint legislative audit and review committee must review the sales tax exemption established under section 301 of this act by December 1, 2018.
     (4) If a review finds that the increase in available capacity to deconstruct derelict vessels or a reduction in the average cost to deconstruct vessels has resulted in an increase of the number of derelict vessels removed from Washington's waters as compared to before the effective date of this section, then the legislature intends for the legislative auditor to recommend extending the expiration date of the tax preference.
     (5) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee should refer to data kept and maintained by the department of natural resources.
     (6) This section expires January 1, 2019.

NEW SECTION.  Sec. 609   Section 605 of this act expires June 30, 2019.

NEW SECTION.  Sec. 610   Section 606 of this act takes effect June 30, 2019.

NEW SECTION.  Sec. 611   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.