HOUSE BILL REPORT

HB 1860

BYRepresentatives Betrozoff, Walk, Schmidt, Patrick, S. Wilson, Ferguson, Silver and Miller

Penalizing fraudulent failure to register vehicles, boats, or airplanes.

House Committe on Transportation

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (25)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cantwell, Cooper, Day, Doty, Fisher, Fox, Gallagher, Hankins, Haugen, Heavey, Jones, Meyers, Patrick, Prince, Schmidt, D. Sommers, Todd, Vekich, J. Williams, K. Wilson, S. Wilson and Zellinsky.

House Staff:Louise Bray (786-7322)

AS REPORTED BY COMMITTEE ON TRANSPORTATION FEBRUARY 3, 1988

BACKGROUND:

Under current law failure to renew your vehicle registration is a traffic infraction and failure to make the initial registration is a misdemeanor. The minimum fine is $165, no part of which may be suspended or deferred. Failure to renew or to initially register a boat is a misdemeanor, with a fine not to exceed $100/vessel for the first offense, $200/vessel for the second offense, and $400/vessel for the third and subsequent offenses. Failure to renew or initially register an airplane is also a misdemeanor with a fine not to exceed $100.

The Department of Revenue has the authority to collect unpaid sales/use tax and Motor Vehicle Excise Tax relating to motor vehicles, aircraft and boats. The Department may assess a 9% penalty upon assessment of the unpaid tax, 10% penalty upon a tax warrant being issued, and an additional 50% penalty if the Department can prove the individual intended to evade the tax.

License fraud is a serious problem in this state.  In King County alone, one trooper working license fraud part-time referred cases to the Department of Revenue which resulted in collection of $411,674 and an additional $300,560 on appeal at the Department of Revenue.

A stronger criminal sanction may help in deterring license fraud and enhance collection and enforcement actions.

SUMMARY:

SUBSTITUTE BILL:  The fine for failing to initially register a motor vehicle is increased to $330, no part of which may be suspended or deferred.  This provision takes effect September 1, 1988.  All penalties imposed by the Department of Revenue associated with delinquent motor vehicle excise taxes are waived until September 1, 1988 in order to encourage voluntary compliance with the motor vehicle registration laws of this state.

All current and delinquent motor vehicle excise tax due for failing to initially register a motor vehicle, and, beginning September 1, 1988, all penalties imposed, are placed in the State Patrol Highway Account.

The State Patrol is directed to develop a program to encourage residents to provide information on initial vehicle registration violators.  The program shall include payment of fifty dollars to any person providing information that leads to the conviction of a person for violating initial registration requirements.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill would have created a Class C felony for failing to initially register motor vehicles, vessels or aircraft, and would have provided an appropriation to the State Patrol for a license fraud investigation team in King County.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.  (Representatives of the Department of Licensing, Department of Revenue, and the Washington State Patrol responded to questions.)

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.