WSR 97-03-096

PROPOSED RULES

DEPARTMENT OF LICENSING

[Filed January 17, 1997, 1:25 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-08-029.

Title of Rule: Chapter 308-58 WAC, Reporting destroyed vehicles.

Purpose: To incorporate the effects of SSB 6271, chapter 26, Laws of 1996 into the procedures for reporting destroyed vehicles.

Other Identifying Information: Chapter 26, Laws of 1996 (SSB 6271).

Statutory Authority for Adoption: RCW 46.01.110 and 46.12.075.

Statute Being Implemented: RCW 46.12.005, 46.12.050, and 46.12.075.

Summary: SSB 6271 created a new class of vehicle referred to as a "salvage vehicle." The proposed rule making will incorporate this new class of vehicle into the procedures for reporting and branding the ownership documents of vehicles reported as destroyed.

Reasons Supporting Proposal: The proposed rule making is in support of legislation enacted by the 1996 session of the legislature.

Name of Agency Personnel Responsible for Drafting: Marlene Epp, 1125 Washington Street S.E., Olympia, WA, (360) 902-3823; Implementation: Debra McCurley, 1125 Washington Street S.E., Olympia, WA, (360) 902-4045; and Enforcement: Nancy Kelly, 1125 Washington Street S.E., Olympia, WA, (360) 902-3754.

Name of Proponent: Department of Licensing, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-58-050, instructions for application of certificate of ownership for a vehicle reported destroyed and not rebuilt.

Proposal Changes the Following Existing Rules: WAC 308-58-010, add condition for determining when a vehicle is destroyed; and WAC 308-58-030, amending conditions for perfecting the sale of a vehicle after it has been reported as destroyed.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required pursuant to RCW 19.85.030. The proposed rule making does not impose more than a minor cost on businesses in an industry.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The contents of the proposed rules are explicitly and specifically dictated by statute.

Hearing Location: Highways-Licenses Building, Conference Room 303, 1125 Washington Street S.E., Olympia, WA, on February 25, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Jack Lince by February 21, 1997, TDD (360) 664-8885.

Submit Written Comments to: Jack L. Lince, Contracts Manager, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, FAX (360) 664-0831, by February 21, 1997.

Date of Intended Adoption: February 28, 1997.

January 17, 1997

Nancy Kelly, Administrator

Title and Registration Services

AMENDATORY SECTION (Amending WSR 91-04-025, filed 1/29/91, effective 3/1/91)

WAC 308-58-010 Definitions. (1) For the purpose of RCW 46.12.070, destruction of a vehicle or total loss, less salvage value, shall mean the vehicle is:

(a) Dismantled with the intention of never again operating it as a vehicle; or

(b) Damaged to the extent that the cost of repair exceeds its market value immediately prior to the damage; or

(c) Damaged to the extent that the cost of repairing it plus its salvage value in its damaged condition exceeds or approximately equals the market value in its repaired or restored condition; or

(d) Damaged to the extent that the owner, an insurer, or other person acting on behalf of the owner, has determined that the cost of parts and labor plus the salvage value has made it uneconomical to repair. "Uneconomical to repair" means the cost of repairing the vehicle is greater than the economic value placed on the repaired vehicle by the owner.

(2) For the purpose of RCW 46.12.070, the settlement of an insurance claim as a total loss, less salvage value shall mean the date on which an insurance company actually makes payment to the claimant for the damage.

[Statutory Authority: RCW 46.01.110 and 46.12.070. 91-04-025, 308-58-010, filed 1/29/91, effective 3/1/91; Order MV 142, 308-58-010, filed 8/28/72.]

AMENDATORY SECTION (Amending Order TL/RG 44, filed 9/30/88)

WAC 308-58-030 Sale of salvage. (1) After ((the title has been sent to the department of licensing as a part of the report of destruction, and the owner decides to sell the damaged vehicle, it)) a vehicle has been reported destroyed pursuant to RCW 46.12.070, the vehicle may be sold by the insurer using a bill of sale instead of ((the title)) a release of interest on a certificate of ownership. The bill of sale must ((include the statement that the vehicle's title has been sent to Olympia as a part of the report of destruction. In the case of a registered owner, his signature on the bill of sale must be notarized to convey his interest in the vehicle to a purchaser unless the purchaser is a licensed auto wrecker or dealer in which case a bill of sale need not be notarized. In the case of an insurer, the bill of sale must)) be signed by ((someone authorized by the insurance company to sign on its behalf. The title of the person signing for the insurance company must be shown on the bill of sale)) a representative of the insurer and provide their appellative title. The representative's signature need not be notarized.

((An auto)) (2) After a vehicle has been reported destroyed pursuant to RCW 46.12.070 and the vehicle is retained by the registered owner, the vehicle may be sold in its present condition using a bill of sale. The bill of sale must be signed by the owner.

(3) A motor vehicle wrecker licensed ((under)) pursuant to chapter 46.80 RCW may utilize a bill of sale issued in accordance with ((the preceding paragraph)) subsections (1) and (2) of this section in lieu of a ((title)) certificate of ownership to comply with RCW 46.80.090.

[Statutory Authority: RCW 46.01.110. 88-20-035 (Order TL/RG 44), 308-58-030, filed 9/30/88; Order MV 142, 308-58-030, filed 8/28/72.]

AMENDATORY SECTION (Amending WSR 92-15-022, filed 7/6/92, effective 8/6/92)

WAC 308-58-040 ((Destroyed)) Salvage vehicles rebuilt. ((Certificates of ownership and registration reissued for a)) (1) Rebuilt salvage vehicles ((reported destroyed that is less than four years old will contain the word "rebuilt" in an appropriate location on the)) defined in RCW 46.12.005 whose title has been turned in to the department pursuant to RCW 46.12.070, shall be issued certificates of ownership and ((the certificate of)) registration pursuant to RCW 46.12.075. Certificates of ownership and registration shall prominently display a rebuilt inscription on the face of the document. ((This description)) The inscription will continue to appear on every subsequent certificates of ownership and registration issued ((by the department)) for this vehicle.

(2) The application for certificate of ownership of ((the)) a rebuilt salvage vehicle will be accompanied by a release of interest or a bill of sale transferring ownership to the applicant and a Washington state patrol inspection ((if the vehicle is to be operated in Washington)), as provided in WAC 308-56A-460.

[Statutory Authority: RCW 46.01.110. 92-15-022, 308-58-040, filed 7/6/92, effective 8/6/92; Order MV 142, 308-58-040, filed 8/28/72.]

NEW SECTION

WAC 308-58-050 Destroyed vehicle retitled. The application for certificate of ownership to a vehicle reported destroyed, pursuant to RCW 46.12.070 and not rebuilt, must be accompanied by the following:

(1) A release of interest on the certificate of ownership, a notarized release of interest or notarized bill of sale from the owner of record, or a bill of sale from a licensed vehicle wrecker or insurer; and

(2) A Washington state patrol inspection as provided in WAC 308-56A-460.

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