Relating to the process and fees associated with the registration and title of vessels, snowmobiles, and all-terrain vehicles

Sponsored by the Senate Ways and Means (successor To Ssb 1122) Committee

Topics:Taxes

Same legislation: HSB 44, SSB 1122, HF 389, SF 281

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 14, 2019
Done: SubcommitteeMarch 11, 2019
Done: Senate committeeFebruary 18, 2019
Done: Passes the SenateApril 18, 201948–1
Skipped: House committeeSkipped
Done: Passes the HouseMarch 12, 2019
Done: To the GovernorApril 29, 2019
Done: Signed into lawMay 3, 2019

HF 389 became law → The same legislation passed as HF 389, so this version was set aside. Go to HF 389 What’s a funnel?

What’s in it

AI summary Boat owners can now renew their vessel registrations and get duplicate documents at any county recorder's office instead of only in their home county. The new rules make it easier to update your address or name and change the deadline for paying late fees. Additionally, people selling boats or snowmobiles must provide the completed title or registration to the new owner at the time of the sale.¹

Read the official explanation

This bill modifies provisions relating to the registration and titling of vessels. The bill provides that a vessel shall initially be registered with the county recorder in the county in which the owner resides, but that registration may subsequently be renewed every three years with any county recorder. To receive the same vessel registration number, an applicant must apply for a registration renewal within days of expiration of the registration, instead of the previous requirement that the application be submitted in a timely fashion. The bill changes the date after which a $5 penalty will be charged for failure to renew registration from May of the last calendar year of the registration period to July of the last calendar year of the registration period. The bill removes the requirement that a registrant who moves notify the county recorder in writing of the registrant’s old and new address. The registrant must simply inform any county recorder of the new address. The county recorder does not have to forward all past records of the vessel to the recorder of the county in which the owner now resides. The bill allows a registrant whose name has changed to inform any county recorder. Under the bill, when a registration certificate is lost, mutilated, or becomes illegible, or when a certificate of title is lost, stolen, mutilated, destroyed, or becomes illegible, the owner (or first lienholder) shall apply for and obtain a duplicate document in any county, rather than applying to the county recorder of original registration for registration certificates and current registration for certificates of title. The bill requires the owner to give the transferee either the title of the vessel under the transferee’s name or, if there is no title, the registration certificate completely filled in at the time of delivery upon a transfer of ownership. Once a vessel is titled, a person must assign and deliver title to a purchaser or transferee upon sale or transfer. Contrary to current law, if the registration of a vessel is expired at the time of transfer, a transfer of number does not need to be awarded in the same manner as provided for in an original registration. Current law also requires, unless otherwise provided in Code chapter 462A, that an owner must provide a purchaser or transferee of a vessel the registration certificate for the vessel with the form on the back filled in completely. The bill requires the department to determine a process for collecting fees and penalties from county recording offices and removes the requirement that a county recorder shall remit to the commission all unused license blanks for the previous registration period. The bill removes the requirement that an application for a certificate of title must be sworn to before a notarial officer. Under the bill, a dealer who buys or acquires a used vessel for resale no longer needs to report the acquisition to the county recorder on the forms the department provides. The dealer may apply for and obtain a certificate of title as provided in Code chapter 462A. The bill removes the requirement that the dealer apply for a certificate of title in the dealer’s name if the dealer acquires an unnumbered vessel. A dealer who transfers ownership of a snowmobile, all-terrain vehicle, or vessel will have days to forward all moneys and applications to the county recorder.

Full bill text · What changed before it passed²

Fiscal note

Less revenue: up to $195,000 Compare with other bills

AI summary This bill changes the boat registration process by moving the renewal deadline from May 1 to July 1. It is estimated to cause a revenue reduction of $195,000 to the Fish and Game Protection Fund in fiscal year 2019. The number of boat owners who will pay late penalties after the new deadline cannot be estimated.³

Read the fiscal note

Description

House File 389 makes changes to the boat registration process. A boat or vessel would be initially registered with the County Recorder in the county where the owner resides; however, the renewal process that occurs every three years could be completed at any county recorder office. To maintain the same vessel registration number, the renewal must be completed within 60 days of the expiration date of the registration. The Bill changes the registration deadline from May 1 to July 1, and late registrants must pay a $5 penalty. The penalty is deposited into the Fish and Game Protection Fund.

Background

The Department of Natural Resources (DNR) completed the statewide recreational vehicle and vessel registration system in 2012. All transactions for recreational vehicles and vessels are processed by county recorders through the statewide system. Boat renewal fees are paid every three years, and renewal fees will be collected in FY 2019.

Assumptions

During the 2016 boat registration renewal process, there were 39,000 boat owners who were charged the $5 late registration fee for a total of $195,000 that was deposited into the Fish and Game Protection Fund. By moving the renewal deadline from May 1 to July 1, the DNR is assuming all registrations will be completed on time and there will be no penalties paid in FY 2019.

Fiscal Impact

The estimated fiscal impact of House File 389 is a revenue reduction of $195,000 to the Fish and Game Protection Fund for FY 2019. The number of boat or vessel owners likely to complete registrations after the new July 1 deadline cannot be estimated but is likely to be significantly reduced. Any late penalties will be deposited in FY 2020 and subsequent fiscal years.