SENATE BILL REPORT

SB 5419

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Transportation, February 18, 2019

Title: An act relating to the adjustment of vehicle service fees.

Brief Description: Providing an adjustment of vehicle service fees.

Sponsors: Senators Hobbs, Warnick, Brown, Bailey, Rivers, Walsh, Keiser, Fortunato, Das, Wagoner, Honeyford, Wilson, L., Sheldon, Becker, Cleveland, Dhingra, Kuderer, Liias and Schoesler.

Brief History:

Committee Activity: Transportation: 1/30/19, 2/18/19 [DPS, w/oRec].

Brief Summary of First Substitute Bill

  • Increases the service fee for changes in a vehicle title certificate and related transactions from $12 to $14.

  • Increases the service fee for a registration renewal and certain other transactions from $5 to $7.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report: That Substitute Senate Bill No. 5419 be substituted therefor, and the substitute bill do pass.

Signed by Senators Hobbs, Chair; Saldaña, Vice Chair; King, Ranking Member; Sheldon, Assistant Ranking Member; Cleveland, Das, Lovelett, Nguyen, Padden, Randall, Takko, Wilson, C. and Zeiger.

Minority Report: That it be referred without recommendation.

Signed by Senator O'Ban.

Staff: Bryon Moore (786-7726)

Background: The Department of Licensing (DOL), a county auditor or other agent, or subagent appointed by the DOL director collects a service fee of:

When the ownership of a vehicle changes, a new registration is required by the new vehicle owner. Exceptions to this include:

The service fees collected by DOL, a county auditor, or other agent appointed by the DOL director must be deposited into the Capital Vessel Replacement Account. The service fees collected by subagents are self-retained.

Summary of Bill (First Substitute): The service fee for changes in a vehicle title certificate or for verification of record and preparation of an affidavit of lost title is increased to $14. The service fee for a registration renewal, issuing a transit permit, accepting a vessel registration, accepting a report of sale, or accepting a transitional ownership record is increased to $7.

EFFECT OF CHANGES MADE BY TRANSPORTATION COMMITTEE (First Substitute): The increase in the service fee for changes in a vehicle title certificate and related transactions is $2 rather than $12. The increase in the service fee for a registration renewal and certain other transactions is $2 rather than $5.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: The bill takes effect on October 1, 2019.

Staff Summary of Public Testimony on Original Bill: The committee recommended a different version of the bill than what was heard. PRO:  The subagents perform a valuable function and serve the public in convenient locations and times.  Subagents collect a great deal of revenue for local governments and the state.  In many cases, these are family owned and locally owned business providing exceptional customer service.  The minimum wage,  health care, rents, and other business costs have increased dramatically since the last fee increase in 2010.  The volume of workload, the stress, and training requirements have also increased dramatically.  The fee increases will allow us to recruit and retain workers in competitive job markets throughout the state.

Persons Testifying: PRO: Senator Steve Hobbs, Prime Sponsor; Shane Cox, WAVS; April Flint, Tri Cities Licensing; Kevin David, WAVS.

Persons Signed In To Testify But Not Testifying: No one.