AN ACT Relating to vessel dealer registration; amending RCW 88.02.060 and 88.02.110; adding new sections to chapter 88.02 RCW; and prescribing penalties.

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

Sec. 1. Section 19, chapter 7, Laws of 1983 and RCW 88.02.060 are each amended to read as follows:

(1) Each ((~~dealer of vessels~~)) vessel dealer in this state shall register with the department in the manner and upon forms prescribed by the department((~~. Upon receipt of a dealer's application for registration and the registration fee provided in subsection (2) of this section, the dealer shall be registered and a registration number assigned~~)), in accordance with rules adopted under chapter 34.04 RCW. After the completed vessel dealer application has been satisfactorily filed and the applicant is eligible as determined by the department's rules, the department shall, if no denial proceeding is in effect, issue the vessel dealer's registration on the basis of staggered annual expiration dates.

(2) The registration fee for dealers shall be ((~~twenty-five~~)) fifty dollars per year((, and the fee shall cover all vessels owned by the dealer for sale and not rented on a regular commercial basis by the dealer. Rented vessels shall be registered separately under RCW 88.02.020 through 88.02.050.

~~(3) Dealer registration numbers are nontransferable.~~

(4) RCW 88.02.020 does not apply to any dealer or employee or prospective customer of the dealer with respect to any vessel covered by the dealer's registration number and used for a business purpose of the dealer, such as a demonstration vessel or for purposes of testing or making repairs)) for an original registration, and twenty-five dollars for any subsequent renewal. In addition, a fee of twenty-five dollars shall be collected for each vessel dealer display decal issued, and a fee of ten dollars shall be collected for each vessel dealer display decal replacement. All fees collected under this section shall be deposited with the state treasurer and credited to the general fund.

NEW SECTION. Sec. 2. A new section is added to chapter 88.02 RCW to read as follows:

Vessel dealer display decals may only be used:

(1) To demonstrate vessels held for sale when operated by a prospective customer holding a dated demonstration permit, and shall be carried in the vessel at all times it is being operated by such individual;

(2) On vessels owned or consigned for sale that are in fact available for sale by the firm when demonstrated, by an officer of the corporation, a partner, a proprietor, or by a bona fide employee of the firm if a card so identifying any such individual is carried in the vessel at all times it is so operated;

(3) On vessels being tested for repair or being repaired if the conditions in subsection (2) of this section are met.

NEW SECTION. Sec. 3. A new section is added to chapter 88.02 RCW to read as follows:

Except as otherwise provided in this chapter, the director may by order deny, suspend, or revoke the vessel dealer registration, or in lieu thereof or in addition thereto, may by order confiscate the vessel dealer display decals, in accordance with chapter 34.04 RCW, if the director finds:

(1) The applicant is applying for a dealer's registration or has obtained a dealer's registration for the purpose of evading excise taxes on vessels; or

(2) The applicant has been adjudged guilty of a felony crime that directly relates to marine trade and the time elapsed since the adjudication is less than ten years. For purposes of this section, adjudged guilty means, in addition to a final conviction in court, an unvacated forfeiture of bail or collateral deposited to secure a defendant's appearance in court, the payment of a fine, a plea of guilty, or a finding of guilt regardless of whether the sentence is deferred or the penalty is suspended.

NEW SECTION. Sec. 4. A new section is added to chapter 88.02 RCW to read as follows:

In addition to other penalties imposed by this chapter for such unauthorized use of vessel dealer display decals, the director may confiscate the display decals for such period as the director deems appropriate, and in addition, or in lieu of other sanctions, the director may impose a monetary penalty not exceeding twice the amount of excise tax that should have been paid to register each vessel properly. Such monetary penalty assessment shall be in addition to any fees owing to register each vessel properly. Any monetary penalty imposed or vessel display decals confiscated shall be done in accordance with chapter 34.04 RCW. Any monetary penalty imposed by the director and the delinquent excise taxes collected shall be deposited in the general fund for use of enforcing the provisions of RCW 88.02.060 and sections 3 and 4 of this act.

NEW SECTION. Sec. 5. A new section is added to chapter 88.02 RCW to read as follows:

It shall be a gross misdemeanor for any person to obtain a vessel dealer's registration for the purpose of evading excise tax on vessels under chapter 82.49 RCW.

NEW SECTION. Sec. 6. A new section is added to chapter 88.02 RCW to read as follows:

(1) Rented vessels shall be registered separately under RCW 88.02.020 through 88.02.050.

(2) RCW 88.02.020 does not apply to any registered dealer's vessels held for sale.

(3) Dealer registration numbers are not transferrable.

Sec. 7. Section 22, chapter 7, Laws of 1983 as last amended by section 2, chapter 183, Laws of 1984 and RCW 88.02.110 are each amended to read as follows:

(1) Except as otherwise provided in this chapter, a violation of this chapter, RCW 43.51.400, and the rules adopted by the department and the state parks and recreation commission pursuant to these statutes is a misdemeanor punishable only by a fine not to exceed one hundred dollars per vessel for the first violation. Subsequent violations in the same year are subject to the following fines:

(a) For the second violation, a fine of two hundred dollars per vessel;

(b) For the third and successive violations, a fine of four hundred dollars per vessel.

(2) After subtraction of court costs and administrative collection fees, moneys collected under this section shall be credited to the current expense fund of the arresting jurisdiction.

(3) All law enforcement officers shall have the authority to enforce this chapter, RCW 43.51.400, and the rules adopted by the department and the state parks and recreation commission pursuant to these statutes within their respective jurisdictions: PROVIDED, That a city, town, or county may contract with a fire protection district for such enforcement and fire protection districts are authorized to engage in such activities.