SENATE BILL REPORT
SB 6614
BYSenators Warnke and Lee
Permitting vessel dealers to file security in lieu of bond for registration purposes.
Senate Committee on Economic Development & Labor
Senate Hearing Date(s):February 4, 1988
Majority Report: That Substitute Senate Bill No. 6614 be substituted therefor, and the substitute bill do pass.
Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, McMullen, Saling, Smitherman, Warnke, West.
Senate Staff:Steve Boruchowitz (786-7429)
February 10, 1988
AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 4, 1988
BACKGROUND:
Recent changes to vessel dealer registration requirements included a $5,000 security to be filed by the dealer. Some dealers have indicated that this is too costly a process and have asked for an alternative method of providing protection for claimants in cases of violations on the part of dealers.
SUMMARY:
A dealer may deposit cash or other security in the amount of $5,000 in lieu of a bond.
EFFECT OF PROPOSED SUBSTITUTE:
Only cash deposits are allowed. Specific methods of making a claim against the cash, issuing notices, and making payments are provided. Failure to maintain the cash will result in the registration being revoked. Cash deposits may not be used for any other security purpose.
Appropriation: none
Revenue: none
Fiscal Note: available
Senate Committee - Testified: John Woodring, NW Mooring Trade Association; Jerry Husted, Nordic Tugs, Inc.; Marv Ryser, Department of Licensing