1998 Legislation
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HOUSE BILL NO. 637 – Vessels, titling

HOUSE BILL NO. 637

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H0637...........................................................by BUSINESS
VESSELS - TITLING - Adds to and amends existing law to provide for the
titling of vessels, to provide authority to the Idaho Transportation
Department to administer the titling of vessels, to provide procedures, to
require licensing of certain persons, to require vessel dealers to procure
and file a bond, to provide application to certain vessels and to provide
for treatment of liens and encumbrances of vessels.

02/06    House intro - 1st rdg - to printing
02/09    Rpt prt - to Transp
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
02/26    3rd rdg - PASSED - 58-6-6
      AYES -- Alltus, Barraclough, Bell, Bieter, Bivens, Black(15),
      Black(23), Boe, Bruneel, Campbell, Chase, Clark, Crow, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley,
      Hansen, Henbest, Hornbeck, Jaquet, Jones(9), Jones(20), Judd,
      Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake, Loertscher, Mader,
      Marley, McKague, Meyer, Miller, Mortensen, Pischner, Pomeroy,
      Reynolds, Richman, Robison, Schaefer, Stevenson, Stubbs, Taylor,
      Tilman, Tippets, Trail, Watson, Wheeler, Zimmermann, Mr Speaker
      NAYS -- Barrett, Callister, Geddes, Ridinger, Sali, Stoicheff
      Absent and Excused -- Crane, Jones(22), Linford, Newcomb, Stone, Wood
    Floor Sponsors - Stubbs, Kjellander
    Title apvd - to Senate
02/27    Senate intro - 1st rdg - to Transp

Bill Text


H0637


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 637

                                  BY BUSINESS COMMITTEE

 1                                        AN ACT
 2    RELATING TO VESSELS; AMENDING SECTION 49-123, IDAHO CODE, TO PROVIDE A  REFER-
 3        ENCE  TO  THE  DEFINITION  OF  "VESSEL" AND TO MAKE TECHNICAL CORRECTIONS;
 4        AMENDING CHAPTER 5, TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
 5        49-501A, IDAHO CODE, TO PROVIDE APPLICATION TO  VESSEL  TITLING;  AMENDING
 6        CHAPTER  70,  TITLE  67,  IDAHO  CODE,  BY  THE  ADDITION OF A NEW SECTION
 7        67-7039, IDAHO CODE, TO ESTABLISH  THE  VESSEL  TITLING  ACT,  TO  PROVIDE
 8        AUTHORITY  TO THE IDAHO TRANSPORTATION DEPARTMENT TO ADMINISTER THE PROVI-
 9        SIONS OF THE ACT, TO PROVIDE FOR TITLING PROCEDURES, TO REQUIRE  LICENSING
10        OF  CERTAIN  PERSONS  AND  TO REQUIRE VESSEL DEALERS TO PROCURE AND FILE A
11        BOND; AMENDING CHAPTER 70, TITLE 67, IDAHO CODE, BY THE ADDITION OF A  NEW
12        SECTION  67-7040, IDAHO CODE, TO PROVIDE APPLICATION OF THE VESSEL TITLING
13        ACT TO CERTAIN VESSELS; AMENDING CHAPTER 70, TITLE 67, IDAHO CODE, BY  THE
14        ADDITION OF A NEW SECTION 67-7041, IDAHO CODE, TO PROVIDE FOR TREATMENT OF
15        LIENS AND ENCUMBRANCES ON VESSELS; AND PROVIDING AN EFFECTIVE DATE.

16    Be It Enacted by the Legislature of the State of Idaho:

17        SECTION  1.  That  Section  49-123, Idaho Code, be, and the same is hereby
18    amended to read as follows:

19        49-123.  DEFINITIONS -- V.
20        (1)  "Variable load suspension axle" means an axle or  axles  designed  to
21    support  a part of the vehicle and load and which can be regulated to vary the
22    amount of load supported by such an axle or axles and which can be deployed or
23    lifted by the operator of the vehicle. See also section 49-117, Idaho Code.
24        (a)  "Fully raised" means that the variable load suspension axle is in  an
25        elevated  position  preventing the tires on such axle from having any con-
26        tact with the roadway.
27        (b)  "Fully deployed" means that the variable load suspension axle is sup-
28        porting a portion of the weight of the loaded vehicle as controlled by the
29        preset pressure regulator valve.
30        (2)  "Vehicle" means:
31        (a)  General. Every device in, upon, or by which any person or property is
32        or may be transported or drawn upon  a  highway,  excepting  devices  used
33        exclusively upon stationary rails or tracks.
34        (b)  Authorized  emergency  vehicle. Vehicles operated by any fire depart-
35        ment or law enforcement agency of the state of Idaho or any political sub-
36        division of the state, ambulances, vehicles belonging to personnel of vol-
37        untary fire departments while in  performance  of  official  duties  only,
38        vehicles belonging to, or operated by EMS personnel certified or otherwise
39        recognized by the EMS bureau of the Idaho department of health and welfare
40        while  in  the performance of emergency medical services, sheriff's search
41        and rescue vehicles which are  under  the  immediate  supervision  of  the
42        county sheriff, wreckers which are engaged in motor vehicle recovery oper-
43        ations  and are blocking part or all of one  (1)  or more lanes


                                          2

 1        of traffic, other emergency vehicles designated by  the  director  of  the
 2        department  of  law enforcement or vehicles authorized by the Idaho trans-
 3        portation board and used in the enforcement of laws specified  in  section
 4        40-510, Idaho Code, pertaining to vehicles of ten thousand (10,000) pounds
 5        or greater.
 6        (c)  Commercial  vehicle  or commercial motor vehicle. For the purposes of
 7        chapter 3 of this title, (driver licenses), a motor vehicle or combination
 8        of motor vehicles designed or used to transport passengers or property  if
 9        the motor vehicle:
10             1.  Has  a  manufacturer's  gross combination weight rating (GCWR) in
11             excess of twenty-six thousand (26,000) pounds inclusive  of  a  towed
12             unit with a manufacturer's gross vehicle weight rating (GVWR) of more
13             than ten thousand (10,000) pounds; or
14             2.  Has a manufacturer's gross vehicle weight rating (GVWR) in excess
15             of twenty-six thousand (26,000) pounds; or
16             3.  Is  designed  to transport sixteen (16) or more people, including
17             the driver; or
18             4.  Is of any size and is used in  the  transportation  of  materials
19             found  to  be  hazardous  for  the purposes of the hazardous material
20             transportation  act  and  which  require  the  motor  vehicle  to  be
21             placarded under the hazardous materials regulations (49 CFR part 172,
22             subpart F).
23        For the purposes of chapter 4 of this title (motor vehicle  registration),
24        a  vehicle or combination of vehicles of a type used or maintained for the
25        transportation of persons for hire, compensation or profit, or the  trans-
26        portation of property for the owner of the vehicle, or for hire, compensa-
27        tion,  or profit, and shall include fixed load specially constructed vehi-
28        cles exceeding the limits imposed by chapter 10, title 49, Idaho Code, and
29        including drilling rigs, construction, drilling and  wrecker  cranes,  log
30        jammers,  log loaders, and similar vehicles which are normally operated in
31        an overweight or oversize condition or both, but shall not  include  those
32        vehicles  registered  pursuant to sections 49-402 and 49-402A, Idaho Code,
33        or exempted by section 49-426, Idaho Code.  A  motor  vehicle  used  in  a
34        ridesharing arrangement that has a seating capacity for not more than fif-
35        teen  (15) persons, including the driver, shall not be a "commercial vehi-
36        cle" under the provisions of this title  relating  to  equipment  require-
37        ments, rules of the road, or registration.
38        (d)  Farm  vehicle. A vehicle or combination of vehicles owned by a farmer
39        or rancher, which are operated over public highways, and used  exclusively
40        to transport unprocessed agricultural, dairy or livestock products raised,
41        owned and grown by the owner of the vehicle to market or place of storage;
42        and  shall  include  the  transportation  by  the farmer or rancher of any
43        equipment, supplies or products purchased by that farmer  or  rancher  for
44        his  own  use,  and used in the farming or ranching operation or used by a
45        farmer partly in transporting agricultural products or livestock from  the
46        farm  of  another farmer that were originally grown or raised on the farm,
47        or when used partly  in  transporting  agricultural  supplies,  equipment,
48        materials  or  livestock to the farm of another farmer for use or consump-
49        tion on the farm but not transported for hire, and shall not include vehi-
50        cles of husbandry or vehicles registered pursuant to sections  49-402  and
51        49-402A, Idaho Code.
52        (e)  Foreign  vehicle.  Every  vehicle of a type required to be registered
53        under the provisions of this title brought into this  state  from  another
54        state,  territory or country other than in the ordinary course of business
55        by or through a manufacturer or dealer and not registered in this state.


                                          3

 1        (f)  Glider kit vehicle. Every large truck manufactured from a  kit  manu-
 2        factured  by a manufacturer of large trucks which consists of a frame, cab
 3        complete with wiring, instruments, fenders and hood and  front  axles  and
 4        wheels.  The "glider kit" is made into a complete assembly by the addition
 5        of the engine, transmission, rear axles, wheels and tires.
 6        (g)  Motor vehicle. Every vehicle which is self-propelled and every  vehi-
 7        cle    which is propelled by electric power obtained from overhead trolley
 8        wires but not operated upon rails, except vehicles moved solely  by  human
 9        power and motorized wheelchairs.
10        (h)  Multipurpose  passenger  vehicle  (MPV).  For the purposes of section
11        49-966, Idaho Code, a motor vehicle designed to carry ten  (10)  or  fewer
12        persons  which  is  constructed  either on a truck chassis or with special
13        features for occasional off-road operation.
14        (i)  Noncommercial vehicle. For the purposes of chapter 4 of  this  title,
15        (motor  vehicle  registration),  a noncommercial vehicle shall not include
16        those vehicles  required  to  be  registered  under  sections  49-402  and
17        49-402A, Idaho Code, and means all other vehicles or combinations of vehi-
18        cles which are not commercial vehicles or farm vehicles, but shall include
19        motor homes. A noncommercial vehicle shall include those vehicles having a
20        combined  gross weight not in excess of sixty thousand (60,000) pounds and
21        not held out for hire, used for purposes related to private  use  and  not
22        used  in  the  furtherance of a business or occupation for compensation or
23        profit or for transporting goods for other than the owner.
24        (j)  Passenger car. For the purposes of  section  49-966,  Idaho  Code,  a
25        motor  vehicle,  except  a  multipurpose  passenger vehicle, motorcycle or
26        trailer, designed to carry ten (10) or fewer persons.
27        (k)  Reconstructed or repaired vehicle.   Every  vehicle   that  has  been
28        rebuilt  or  repaired using like make and model parts and visually appears
29        as a vehicle that was originally constructed under a distinctive  manufac-
30        turer. This includes a salvage vehicle which is damaged to the extent that
31        a  "reconstructed  vehicle"  or  "repaired vehicle" brand is required, and
32        other vehicles which have been reconstructed by the use of a kit  designed
33        to be used to construct an exact replica of a vehicle which was previously
34        constructed  under  a distinctive name, make, model or type by a generally
35        recognized manufacturer of vehicles. A glider kit vehicle is not a  recon-
36        structed vehicle.
37        (l)  Salvage vehicle. Any vehicle for which a salvage certificate, salvage
38        bill  of sale or other documentation showing evidence that the vehicle has
39        been declared salvage or which has been damaged to  the  extent  that  the
40        owner,  or  an  insurer,  or  other  person acting on behalf of the owner,
41        determines that the cost of parts and labor minus the salvage value  makes
42        it  uneconomical  to repair or rebuild. When an insurance company has paid
43        money or has made other monetary settlement as compensation  for  a  total
44        loss  of any motor vehicle, such motor vehicle shall be considered to be a
45        salvage vehicle.
46        (m)  Specially constructed vehicle. Every vehicle of a type required to be
47        registered not originally constructed  under  a  distinctive  name,  make,
48        model  or  type by a generally recognized manufacturer of vehicles and not
49        materially altered from its original construction and cannot  be  visually
50        identified  as  a  vehicle  produced  by  a  particular manufacturer. This
51        includes:
52             1.  A vehicle that has been structurally modified so that it does not
53             have the same appearance as a similar vehicle from the same  manufac-
54             turer; or
55             2.  A  vehicle that has been constructed entirely from homemade parts


                                          4

 1             and materials not obtained from other vehicles; or
 2             3.  A vehicle that has been  constructed  by  using  major  component
 3             parts  from  one    (1)  or more manufactured vehicles and
 4             cannot be identified as a specific make or model; or
 5             4.  A vehicle constructed by the use of a custom kit that  cannot  be
 6             visually identified as a specific make or model.
 7        (n)  Total  loss  vehicle. Every vehicle that is deemed to be uneconomical
 8        to repair due to scrapping, dismantling or destruction. A total loss shall
 9        occur when an insurance company or any other person pays  or  makes  other
10        monetary  settlement  to the owner when it is deemed to be uneconomical to
11        repair the damaged vehicle. The compensation for  total  loss  as  defined
12        herein  shall not include payments by an insurer or other person for medi-
13        cal care, bodily injury, vehicle rental or for  anything  other  than  the
14        amount paid for the actual damage to the vehicle.
15        (3)  "Vehicle  identification  number."  (See  "Identifying  number "
16    , "  section 49-110, Idaho Code)
17        (4)  "Vehicle salesman" means any person who, for a salary, commission  or
18    compensation  of any kind, is employed either directly or indirectly, or regu-
19    larly or occasionally by any dealer to sell, purchase or exchange, or to nego-
20    tiate for the sale, purchase or exchange of  vehicles.  (See  also  "full-time
21    salesman  "  ,  "    section  49-107,  Idaho  Code,  and
22    "part-time salesman " , "  section 49-117, Idaho Code)
23        (5)   "Vessel." (See section 67-7003, Idaho Code)
24        (6)   "Veteran." (See section 65-509, Idaho Code)
25        ( 6  7 )  "Violation" means a conviction of a misde-
26    meanor  charge  involving a moving traffic violation, or an admission or judi-
27    cial determination of the commission of an infraction involving a moving traf-
28    fic infraction, except bicycle infractions.

29        SECTION 2.  That Chapter 5, Title 49, Idaho Code,  be,  and  the  same  is
30    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
31    known and designated as Section 49-501A, Idaho Code, and to read as follows:

32        49-501A.  APPLICATION TO VESSEL TITLING. The procedures provided  in  this
33    chapter  shall  apply to all vessel titling programs referenced in chapter 70,
34    title 67, Idaho Code. Any reference to "vehicle" in this  chapter  shall  also
35    mean "vessel."

36        SECTION  3.  That  Chapter  70,  Title 67, Idaho Code, be, and the same is
37    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
38    known and designated as Section 67-7039, Idaho Code, and to read as follows:

39        67-7039.  VESSEL TITLING ACT. (1)  Sections 67-7039 through 67-7041, Idaho
40    Code, shall be known and cited as the "Vessel Titling Act."
41        (2)  The  Idaho  transportation  department is hereby granted authority to
42    carry out the administration of the provisions of this act and  to  promulgate
43    rules to effectuate that purpose.
44        (3)  All  titling  procedures  for  vessels shall be governed by title 49,
45    Idaho Code. The term "vessel" shall be interchangeable with the term "vehicle"
46    throughout title 49, Idaho Code, for the purposes of vessel titling and vessel
47    dealers and salesmen licensing requirements.
48        (4)  All vessel dealers, wholesalers, manufacturers,  salesmen,  distribu-
49    tors and representatives shall be required to be licensed as required by chap-
50    ter 16, title 49, Idaho Code.
51        (5)  All  vessel  dealers  shall be required to procure and file a bond in


                                          5

 1    the amount required in section 49-1608, Idaho Code.

 2        SECTION 4.  That Chapter 70, Title 67, Idaho Code, be,  and  the  same  is
 3    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
 4    known and designated as Section 67-7040, Idaho Code, and to read as follows:

 5        67-7040.  APPLICATION TO CERTAIN VESSELS. (1)  The provisions of the  ves-
 6    sel  titling  act  shall  apply to every 1999 and newer model year vessel upon
 7    transfer of ownership, and optionally to all other vessels  of  a  model  year
 8    prior  to  1999,  effective  on and after January 1, 1999, even though vessels
 9    need not be registered under the provisions of  chapter  4,  title  49,  Idaho
10    Code.  Vessels  shall  be  issued a certificate of registration as provided in
11    section 67-7008, Idaho Code.
12        (2)  The provisions of the vessel titling act shall apply  exclusively  to
13    vessels  with  a  permanently attached mode of propulsion, such as: an inboard
14    motor, sail, personal watercraft, or other propelling machinery, and all  ves-
15    sels over twelve (12) feet regardless of mode of propulsion, except: rowboats,
16    canoes,  kayaks,  inflatable  vessels, rafts, barges, nonmotorized paddle ves-
17    sels, sailboards, tenders, seaplanes, document vessels, and vessels  owned  by
18    the United States or a foreign state or political subdivision.
19        (3)  Once  titled,  the  vessel remains a titled vessel, and is subject to
20    the requirements of chapter 5, title 49, Idaho Code.

21        SECTION 5.  That Chapter 70, Title 67, Idaho Code, be,  and  the  same  is
22    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
23    known and designated as Section 67-7041, Idaho Code, and to read as follows:

24        67-7041.  LIENS AND ENCUMBRANCES -- FILING -- NOTATION ON  CERTIFICATE  --
25    CONSTRUCTIVE  NOTICE.  No  lien  or encumbrance created on or after January 1,
26    1999, on any vessel titled under the laws of this state, shall be perfected as
27    against creditors or subsequent purchasers  or  encumbrancers  without  notice
28    until the holder of the lien or encumbrance, or his successor or assignee, has
29    complied  with  the  requirements of section 49-504, Idaho Code, and has filed
30    the title application and all required supporting  documents  with  the  Idaho
31    transportation department or an agent of that department.

32        SECTION  6.  This act shall be in full force and effect on and after Janu-
33    ary 1, 1999.

Statement of Purpose / Fiscal Impact


REPRINT              REPRINT             REPRINT                 
REPRINT                 REPRINT

                       STATEMENT OF PURPOSE
                             RS0751 0

         PURPOSE
  Vessels (boats) in Idaho are required to be registered but are not
presently required to have titles.  This legislation will require all
new vessels to have a title issued, a document indicating ownership, the
same as motor vehicles.
  The purpose is to protect owners from theft or from buying a stolen
vessel, to assist law enforcement in tracking stolen vessels and to help
protect the security interests of banks and other lending institutions.
  Compliance will be required for new vessels only after 1999.
         FISCAL IMPACT
Revenue:
  There are about 5,000 new boats sold each year, and as many as 23,000
to 25,000 title transactions expected for existing boats.  Revenue
generated from title fees could be as high as $240,000 per year,
depending on the number of individuals that may optionally choose to
title their boats.  Eighty to ninety boat dealers would fall under the
dealer licensing requirements with this legislation, generating about $1
0,000 per year in dealer licensing fees.
  Approximated revenue depending on the number of transactions would be:

                         FY99            FY2000         FY2001
SHA (Titles)          $45,000           $90,000       $180,000(& there
                                                                  After)
SHA (DLR Licensing)    10,000           $ 10,000         10,000 "   "    
                      $55,000          $100,000       $ 190,000

County Exp. Fund       15,000            30,000       $   60,000 " "   
           
         An estimated 400 to 600 hours of programming time are needed to prepare
         systems for boat titling at an expected one-time cost of $17,200 to
         $25,800 (500 hours - $21,500 used in cost estimate.) Two FTE's will be
         needed, plus program related operating and capital funds.

                   FY99         FY2000                    FY2001

         Personnel:                      0      $28,280(1FTE)   $56,560 (Add'l FTE)

         Operating:                $ 3,150            $ 6,300             $12,600     (Tot. On go
                $21,500         $ 500                       $500       (One-time)

         Capital:                        0            $ 2,500             $ 2,500     (One-time)
         Totals                    $24,650            $37,580             $72,160

         CONTACT
Name:    Representative Mark Stubbs (208) 332-1000


H 637