Purpose: To meet the criteria set forth in Governor Locke's Executive Order 97-02; and to clarify the requirements for application for vehicle ownership.

Citation of Existing Rules Affected by this Order: Repealing 3 [WAC 308-56A-005, 308-56A-080 and 308-56A-085]; and amending 7 [WAC 308-56A-010, 308-56A-015, 308-56A-020, 308-56A-021, 308-56A-022, 308-56A-023, and 308-56A-090].

Statutory Authority for Adoption: RCW 46.01.110.

Other Authority: RCW 46.12.101.

Adopted under notice filed as WSR 98-08-049 on March 26, 1998.

Changes Other than Editing from Proposed to Adopted Version: Minor modifications have been made based upon written testimony submitted by some stakeholders.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, amended 0, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 7, repealed 3.

Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 7, repealed 3; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: Thirty-one days after filing.

June 3, 1998

John Swannack

Deputy Director

for Evelyn P. Yenson

AMENDATORY SECTION (Amending WSR 92-15-024, filed 7/6/92, effective 8/6/92)

WAC 308-56A-010  Title purpose only. ((Certificates of title may be issued without certificates of registration including but not limited to the following vehicles:)) The department may issue a certificate of ownership for a vehicle without a certificate of registration for:

(1) Vehicles required to display valid vehicle number license plates prior to operating on the public highway pursuant to chapter 46.16 RCW;

(2) Farm tractors or farm equipment;

(3) Off-road vehicles (ORV) whether or not required to obtain an ORV use permit;

(4) Golf carts and dune buggies whether or not equipped for legal highway use;

(5) Off highway equipment that may be moved upon public highways by special permits.

[Statutory Authority: RCW 46.01.110. 92-15-024, § 308-56A-010, filed 7/6/92, effective 8/6/92; Order MV 208, § 308-56A-010, filed 7/31/74.]

AMENDATORY SECTION (Amending Order MV 208, filed 7/31/74)

WAC 308-56A-015  No title issued. ((Vehicles may be registered without issuing a Washington certificate of title. Such registration will be accepted when:

(1) An out-of-state secured party will not release an out-of-state title;

(2) A nonresident is required to register his/her vehicle in this state but is also required to maintain his/her home state title and registration.)) The department may register vehicles without issuing Washington certificates of ownership when:

(1) A secured party will not surrender an out-of-state certificate of ownership; or

(2) Registration is required in Washington state and title and registration are required by another state.

[Order MV 208, § 308-56A-015, filed 7/31/74.]

AMENDATORY SECTION (Amending Order MV 208, filed 7/31/74)

WAC 308-56A-020  Application for title required. ((An application for certificate of title is required:

(1) Whenever the ownership of a vehicle changes;

(2) When there is a legal change of name of the registered or legal owner of a vehicle;

(3) When there is a change of name of a business entity owning a vehicle; provided that, an application is not required for each vehicle when a financial institution which is the legal owner of a number of vehicles merges with or is sold to another institution and continues to do business in the name of the surviving institution, if the department is notified in writing of the merger or sale.

(4) When a proprietorship or partnership forms a corporation whether or not a business name is changed;

(5) When a proprietorship or partnership purchases a corporation which will no longer be operated as a corporation whether or not the business name is changed;

(6) Whenever there is no outstanding secured obligation and no commitment to make advances and incur obligations or otherwise give value;

(7) Whenever a vehicle has been reported destroyed by an insurance company and the owner wishes to operate it on the public highways;

(8) Whenever a vehicle has been assembled;

(9) Whenever a glider kit has been installed;

(10) Whenever a replacement engine has been installed in a motorcycle;

(11) Whenever there has been a structural change in the vehicle;

(12) Whenever the vehicle identification number has changed;

(13) Whenever a former nonresident owner of a vehicle requiring a certificate of title becomes a Washington resident as defined in chapter 308-92 WAC as now or hereafter amended;

(14) Whenever a second legal owner is to be added to the certificate of title. The application shall show the address of only the first named legal owner;

(15) Whenever the engine of a vehicle has been changed or modified to accept a fuel other than that shown on the outstanding title.)) An application for certificate of ownership is required when:

(1) A person purchases a new vehicle;

(2) There is a change of ownership due to:

(a) Sale;

(b) Gift;

(c) Inheritance;

(d) Trade;

(e) Addition or deletion of a registered owner;

(f) Proprietorship, partnership or individuals forming a corporation, whether or not the business name is changing;

(g) Proprietorship, partnership or individuals purchasing a corporation which will no longer be operated as a corporation, whether or not the business name is changed;

(h) Court order; or

(i) Repossession.

(3) There is a name change of:

(a) The registered owner;

(b) The lienholder; or

(c) A business entity as shown on the current certificate of ownership.

(4) There is no change in the registered owner of the vehicle but the title needs to be reissued because:

(a) A lien has been satisfied and the lienholder's name needs to be removed;

(b) A lienholder's name needs to be added. If a secondary lienholder is being added, the address of only the primary lienholder will be recorded;

(c) There is a change in lienholders;

(d) The vehicle is assembled or has had a glider kit installed;

(e) The vehicle is a motorcycle and the engine has been replaced;

(f) There has been a structural change, as defined in WAC 308-56A-150 (1)(E), in the vehicle, other than changing the bed of a truck; or

(g) The vehicle identification number needs to be corrected. (5) The vehicle has been reported destroyed by an insurance company. Title procedures are in WAC 308-56A-460.

(6) The vehicle has been reported destroyed by the owner, or a wrecker and is subsequently sold and licensed.

[Order MV 208, § 308-56A-020, filed 7/31/74.]

Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order TL/RG/36, filed 10/9/87)

WAC 308-56A-021  Assessment ((of)) criteria for penalty fee ((for late application for title)). ((When ownership of a Washington titled vehicle changes, the purchaser or transferee must complete and submit to the department or to a vehicle licensing agent an application for certificate of title and license registration within fifteen days after the date of delivery of the vehicle. Penalty fees will be assessed for late application under the following circumstances:

(1) Documents submitted for application for new title indicate more than 15 days have elapsed since date of delivery of the vehicle;

(2) Someone other than the first purchaser shown is making application (unless verification is provided that he/she acquired the vehicle less than 16 days prior to application for title;

(3) The date of delivery is declared to be 15 days prior to date of application. An affidavit of delivery is required when:

(a) Conflicting dates appear on supporting documents;

(b) Dates on title or supporting documents have been altered;

(c) No evidence of the date of delivery is present; or,

(d) An undated title is presented;

(4) Partial ownership has changed more than fifteen days previously.

When a divorce settlement or other legal action affecting ownership of the vehicle takes place after the date that the title is signed off, the date of the final legal action may be used as the date from which penalty fees are computed.)) (1) Penalty fees are assessed beginning on the 16th day from the date of sale as shown on the certificate of ownership, except when:

(a) There is a court order awarding ownership in the vehicle, the department uses the effective date of the court order;

(b) The vehicle was delivered after the date indicated on the supporting documents;

(c) There are conflicting dates on supporting documents;

(d) There is no date on the certificate of ownership or other supporting documents; or

(e) The date on the certificate of ownership has been altered.

(2) Subsection (1)(a) through (e) of this section require the applicant to sign an affidavit attesting to the actual date of delivery.

[Statutory Authority: RCW 46.01.110 and 46.12.101 as amended by 1987 c 127 § 1. 87-21-012 (Order TL/RG/36), § 308-56A-021, filed 10/9/87.]

AMENDATORY SECTION (Amending Order TL/RG/36, filed 10/9/87)

WAC 308-56A-022  Conditions under which penalty fees are not assessed. Penalty fees are not assessed for late application for title under the following conditions:

(1) The vehicle is not motorized;

(2) The vehicle is sold by a Washington dealer (dealer report of sale box on the application is completed);

(((2))) (3) A ((prior)) Washington record cannot be found;

(((3))) (4) Department of licensing records indicate the vehicle ((was totaled by an insurance company or reported)) has been destroyed ((by a wrecking yard));

(((4))) (5) The vehicle is being titled as home made or assembled for the first time;

(((5))) (6) The vehicle is acquired ((by inheritance or community property from the owner of record)) as a result of:

(a) Inheritance or community property;

(b) Divorce settlement;

(c) Other legal action affecting ownership of the vehicle; or

(d) Partial ownership change.

[Statutory Authority: RCW 46.01.110 and 46.12.101 as amended by 1987 c 127 § 1. 87-21-012 (Order TL/RG/36), § 308-56A-022, filed 10/9/87.]

AMENDATORY SECTION (Amending Order TL/RG/36, filed 10/9/87)

WAC 308-56A-023  Conditions under which penalty fees may be waived. ((Penalty fees for late application for certificate of title and license registration may be waived when the department is presented with proof satisfactory to the department that the delay in submitting the application was due to reasons beyond the control of the purchaser, including one or more of the following circumstances:

(1) A request by the department of licensing for additional required supporting documents;

(2) Extended hospitalization or illness of the purchaser;

(3) Failure of a legal owner to release his/her/their interest;

(4) Department, auditor, agent, or subagent error;

(5) Incarceration of the purchaser by a judiciary system;

(6) A seller's report of sale filed by purchaser thinking it transferred title;

(7) Other reasons which the director may determine are valid.)) (1) In addition to circumstances identified in RCW 46.12.101, the department may waive the penalty fee for late application for certificate of ownership when:

(a) The purchaser is incarcerated by a judiciary system;

(b) The purchaser files a seller's report of sale thinking they have filed an application to transfer certificate of ownership;

(c) The director determines other reasons are valid; or

(d) A purchaser fails to transfer ownership prior to selling it and the applicant can prove he/she has purchased the vehicle within fifteen days of making application.

(2) If the date of sale does not represent the date of delivery, and the customer declares that the date of delivery is within fifteen days prior to date of application for one of the following reasons, the department may waive the penalty fee with a signed affidavit:

(a) Conflicting dates appear on supporting documents;

(b) Dates on title or supporting documents have been altered;

(c) No evidence of the date of delivery is present; or

(d) An undated title is presented.

[Statutory Authority: RCW 46.01.110 and 46.12.101 as amended by 1987 c 127 § 1. 87-21-012 (Order TL/RG/36), § 308-56A-023, filed 10/9/87.]

AMENDATORY SECTION (Amending WSR 96-03-047, filed 1/11/96, effective 2/11/96)

WAC 308-56A-090  Disclosure of individual vehicle owner names and addresses. (((1))) Any business entity requesting the name or address of a vehicle owner pursuant to RCW 46.12.380 shall ((complete)) submit a completed form provided by the department and furnish verification of its identity as a business entity. For purposes of this section, acceptable verification includes:

(((a) A copy of the requesting entity's unexpired Washington master business license; or

(b) For businesses not authorized to do business in this state, a copy of its unexpired business license issued by the out-of-state jurisdiction where the business entity is authorized to do business.

(2) A business entity requesting names or addresses of individual vehicle owners on a continuing basis may execute an agreement with the department giving their full business name and the purpose for requesting the information. If the purpose for the information is not contrary to RCW 46.12.380, the information may be provided without separate written requests for disclosure of owner's name or address on each vehicle of interest.)) (1) Licensed Washington businesses shall provide a copy of their current Washington master business license; or

(2) Businesses not required to be licensed in this state shall provide their Federal Employer Identification Number on their official letterhead with a notarized signature of the owner or their authorized representative; or

(3) Out-of-state businesses not licensed in Washington shall provide:

(a) A copy of their current business license issued by the out-of-state jurisdiction where the business entity is authorized to do business; or

(b) Their Federal Employer Identification Number on their official letterhead with a notarized signature of the owner or their authorized representative.

(4) In addition to the requirements in subsections (1), (2) and (3) of this section:

(a) An attorney shall also provide a copy of their bar card; and

(b) A private investigator shall also provide a copy of their private investigator's license.

(5) A business entity which has entered into a written agreement with the department need not provide a separate written request for each inquiry.

[Statutory Authority: RCW 42.17.250(1), 46.01.110, 46.12.151 and 46.12.380. 96-03-047, § 308-56A-090, filed 1/11/96, effective 2/11/96. Statutory Authority: RCW 46.01.110 and 88.02.070. 91-03-088, § 308-56A-090, filed 1/18/91, effective 2/18/91.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 308-56A-005 Title required.

WAC 308-56A-080 Refusal by department to release title.

WAC 308-56A-085 Error in title issued by department.