HOUSE BILL REPORT

2SSB 5515

As Amended by the House

BYSenate Committee on Ways & Means (originally sponsored by Senators Warnke, Cantu and Moore; by request of Department of Licensing)

Revising vessel dealer registration.

House Committe on Transportation

Majority Report:  Do pass with amendments.  (24)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Brough, Cantwell, Cooper, Day, Dellwo, Doty, Fisch, Gallagher, Hankins, Haugen, Heavey, Kremen, Meyers, Prince, Schmidt, D. Sommers, Spanel, Sutherland, Todd, Vekich and Zellinsky.

Minority Report:  Do not pass.  (1)

      Signed by Representative J. Williams.

House Staff:Terry Michalson (786-7315)

AS PASSED HOUSE APRIL 8, 1987

BACKGROUND:

Watercraft owners are required to register and pay an excise tax based on the value of their vessels.  Vessel dealers must also register and pay a small fee.  Some dealers have misused the dealer decals, placing them on private vessels to avoid paying an excise tax.  The watercraft registration process needs reform to address this problem.

SUMMARY:

A surety bond of $5,000 is required of vessel dealers.  Dealers are required to maintain an office with an exterior sign, pay a $50 registration fee and decal fees, and report sales.  Authorized uses of decals are specified.

Vessel dealers selling fewer than fifteen vessels per year, each of which has a retail value of less than $2,000, are exempt from the $5,000 surety bond requirement and must provide documentation to the Department of Licensing to verify qualifying for this exemption to include providing the highest retail value of any vessel sold in the registration year.  Registration fees are collected for purposes of enforcing the vessel dealer registration act.

Vessel dealers must place funds received from sales into a trust account until the vessel is delivered.  Violations of the trust account requirement or misrepresentation of facts at the time of application for registration subject the dealer to penalties. Penalties for abuse of decals, registration, or trust account violations include revocation of registration, up to $1,000 in civil penalties, and a fine of up to twice the value of the appropriate excise tax.  Upon sale of a vessel the dealer must transfer title to the purchaser.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Heather Hamilton, Department of Licensing; George Prescott, Northwest Marine Trade Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Revisions to existing statutes requiring vessel dealers to register with the Department of Licensing (DOL) should be changed to permit higher registration fees and require a surety bond to protect the consumers of this state.  The additional fees will provide funding levels adequate for DOL to enforce vessel dealer registration laws.

House Committee - Testimony Against:      None Presented.