WSR 98-23-083

PROPOSED RULES

DEPARTMENT OF LICENSING

(Vehicle Services)

[Filed November 17, 1998, 2:28 p.m.]

Supplemental Notice to WSR 98-19-109.

Preproposal statement of inquiry was filed as WSR 98-18-002.

Title of Rule: WAC 308-66-190 Transfer of certificate of title by dealer and 308-56A-420 Delivery of vehicle on dealer temporary permit.

Purpose: Amending current rules to define what the department considers to be the commencing date for purposes of title transfer by vehicle dealers. The date that triggers the start of the forty-five day vehicle dealer title transfer period is the date the vehicle is delivered to the purchaser. In addition, WAC 308-66-190 is amended to extend the allowable title transfer period to ninety days to parallel the statutory allowance for vehicles delivered on dealer temporary permits. In that case where a dealer has timely paid off a lien on an acquired vehicle and the lienholder has not released the title, the dealer may issue a second dealer temporary permit.

Statutory Authority for Adoption: RCW 46.70.160 and 46.01.110.

Statute Being Implemented: RCW 46.70.122.

Summary: The proposal is to amend the two related WACs to define the date that the vehicle dealer title transfer period commences. It also extends the period of time to ninety days (from forty-five) that a dealer may transfer title in the sale of a currently registered vehicle. An amendment also expresses the director's discretion in situations where delayed title applications are beyond the control of the dealer.

Reasons Supporting Proposal: The Washington State Auto Dealers Association (WSADA), our stakeholder, has requested that the Department of Licensing (DOL) do a rules promulgation if DOL is going to use delivery as the commencing date for vehicle title transfers to retail purchasers. WSADA does not endorse the concept of delivery as the commencing date.

Name of Agency Personnel Responsible for Drafting: Cal Sanders, Highways-Licenses Building, Olympia, (360) 902-3708; Implementation and Enforcement: Robert Smith, Highways-Licenses Building, Olympia, (360) 902-3703.

Name of Proponent: Department of Licensing, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: To DOL these amendments essentially mean business as usual, with no fiscal impact.

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

Explanation of Rule, its Purpose, and Anticipated Effects: The amendments describe that delivery of a vehicle is the act which commences the forty-five day title transfer period. Also, WAC 308-66-190 is amended to extend the allowable title transfer period to ninety days (for currently registered vehicles) to parallel the limited statutory allowance for title transfers for vehicles delivered on dealer temporary permits (in cases where the dealer has timely paid the lien on an acquired vehicle and that lienholder has not yet released the title - RCW 46.70.180(8).

Proposal Changes the Following Existing Rules: The changes to these existing rules will more clearly define the commencing date for purposes of the vehicle dealer title transfer period. Also the extension of time for title transfer in the case of a currently registered vehicle will equalize the time allowed for transfer of the title to a vehicle delivered on a dealer temporary permit (in the above referenced limited situation).

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposal does not impose additional duties on the industry. There is no discernable impact. Since DOL has historically used the purchase order date as the commencing date for the title transfer period, these amendments will actually benefit the industry to the extent that certain vehicles may be delivered after the purchase order date. The proposed amendments will have a minor or negligible impact, as reflected in an analysis document in the file, which is available by calling Gail Saul at (360) 902-3709.

RCW 34.05.328 does not apply to this rule adoption. This agency is not named in RCW 34.05.328 (5)(a)(i), this section is not being applied voluntarily by the agency and the proposed language clarifies the rule without a measurable effect.

Hearing Location: Department of Licensing, Conference Room 406, 4th Floor, 1125 S.E. Washington Street, Olympia, WA, on December 22, 1998, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact Linda Mason, TDD (360) 664-8885, or (360) 902-3710.

Submit Written Comments to: Gail Saul, Dealer Services, Department of Licensing, P.O. Box 9039, Olympia, WA 98507-9039, fax (360) 586-6703.

Date of Intended Adoption: January 5, 1999.

November 15, 1998

Evelyn P. Yenson

Director

OTS-2534.2

AMENDATORY SECTION (Amending WSR 96-19-025, filed 9/9/96, effective 10/10/96)

WAC 308-66-190  Transfer of certificate of title by dealer. (1) When a vehicle displaying current Washington plates is sold or disposed of by a dealer, the dealer shall make an application for a certificate of title in the purchaser's name within forty-five calendar days ((following)) commencing with the sale or disposal of the vehicle. The date on which the selling dealer physically delivers the vehicle to the customer/purchaser shall commence the forty-five day interval in which the selling dealer must make an application for a certificate of title in the purchaser's name. Under the following conditions a dealer may be granted an additional interval, not to exceed forty-five days in which to apply for title in the customer's name:

(a) The lienholder fails to deliver the vehicle title to the dealer within the required time period; and

(b) The dealer has satisfied the lien; and

(c) The dealer has proof that payment of the lien was made within two calendar days, exclusive of Saturday, Sunday, or a legal holiday after the sales contract has been executed by all parties and all conditions and contingencies in the sales contract have been met or otherwise satisfied; or

(d) The director has discretion to excuse any situations in which applications are delayed for reasons beyond the control of the dealer.

(2) The dealer shall in every case sign or type his/her name on the dealer's report of sale on the title application accompanying the transfer. If an authorized agent signs for the dealer, he/she shall give his/her title.

(3) ((The name and address of the previous registered owner shall be shown on the application for transfer of title.

(4))) The dealer shall provide a vehicle odometer disclosure statement with the title application as required by RCW 46.12.124.

[Statutory Authority: RCW 46.70.160. 96-19-025, § 308-66-190, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.124. 94-21-055, § 308-66-190, filed 10/13/94, effective 11/13/94. Statutory Authority: RCW 46.70.160, 46.12.120 and [46.12].124. 91-20-057, § 308-66-190, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160. 90-24-054, § 308-66-190, filed 12/3/90, effective 1/3/91; 90-10-013, § 308-66-190, filed 4/20/90, effective 5/21/90; Order MV 170, § 308-66-190, filed 7/16/73; Order 2, § 308-66-190, filed 1/29/68.]

OTS-2535.2

AMENDATORY SECTION (Amending WSR 94-21-055, filed 10/13/94, effective 11/13/94)

WAC 308-56A-420  Delivery of vehicle on dealer temporary permit. (1) A vehicle dealer properly licensed pursuant to chapter 46.70 RCW may deliver a vehicle not currently registered or that does not bear valid Washington state license plates or tabs by utilizing a dealer temporary license permit.

(2) The application for title portion of the permit form must be properly and completely filled out by the selling dealer, ((detailing all fees collected,)) including the dealer's report of sale and the date ((of sale)) on which the vehicle is physically delivered to the customer/purchaser. If license based on gross weight is required, the amount of gross weight purchased must be clearly shown. The application must be signed by the registered owner(s).

(3) The dealer shall collect all fees required for titling and registration of a vehicle.

(4) The dealer shall detach the hard copy of the dealer permit and shall record the date of expiration in dark, bold letters and numbers on the permit side of that copy. Date of expiration will be forty-five calendar days after date ((of sale of the vehicle)) on which the vehicle is physically delivered to the customer/purchaser.

(5) The application copies shall be used by the dealer to apply for title ((application)) and to complete licensing of the vehicle. Except as provided in RCW 46.70.180(8), the selling dealer must submit the application and all title/licensing fees to the department of licensing or an authorized licensing agent within forty-five calendar days from the date ((of sale of the vehicle)) on which the vehicle is physically delivered to the customer/purchaser. The date on which the selling dealer physically delivers the vehicle to the customer/purchaser shall commence the forty-five day interval in which the selling dealer must make an application for a certificate of title in the purchaser's name. Additionally, the director has discretion to excuse late applications only in situations where applications are delayed, for reasons beyond the control of the dealer.

(6) The hard copy of the permit and a purchase order identifying the vehicle and ((date of sale)) the date on which the vehicle is physically delivered to the customer/purchaser must be carried in the vehicle or the towing vehicle at all times the vehicle is operated on the temporary permit.

(7) The hard copy of the dealer temporary license permit shall be displayed on the inside of the rear window in the lower left corner, or enclosed in a moisture proof protective case securely attached in the rear license plate holder, with the expiration date visible to one standing or following at the rear of the vehicle.

(8) The dealer temporary license permit is valid for not more than forty-five calendar days ((following)) commencing with the date ((of vehicle sale)) on which the vehicle is physically delivered to the customer/purchaser.

(9) The dealer temporary license permit shall not:

(a) Be issued for a dealer inventoried or a dealer or dealer-employee operated vehicle;

(b) Be issued as a demonstration permit;

(c) Be issued for a vehicle processed as a courtesy delivery.

(10) Fees paid for dealer temporary license permit application forms are not refundable unless the dealer ceases doing business as a vehicle dealer. A credit, in the amount of the permit form fee, will be provided when the permit is used by the vehicle dealer to make application for a vehicle title.

(11) The dealer shall maintain a record of each dealer temporary permit form acquisition and distribution including the following:

(a) Vehicle purchaser's names;

(b) Vehicle identification;

(c) Dates of vehicle sales and deliveries; and

(d) Date and location of purchase of each permit form and the permit number.

[Statutory Authority: RCW 46.70.160 and 46.70.124. 94-21-055, § 308-56A-420, filed 10/13/94, effective 11/13/94. Statutory Authority: RCW 46.01.110. 93-14-084, § 308-56A-420, filed 6/30/93, effective 7/31/93. Statutory Authority: RCW 46.70.160. 90-10-013, § 308-56A-420, filed 4/20/90, effective 5/21/90; Order MV 208, § 308-56A-420, filed 7/31/74.]