WSR 03-07-076

PERMANENT RULES

DEPARTMENT OF LICENSING


[ Filed March 18, 2003, 2:06 p.m. ]

Date of Adoption: March 4, 2003.

Purpose: Meet criteria supporting Governor Locke's Executive Order 97-02.

Citation of Existing Rules Affected by this Order: Amending WAC 308-93-370, 308-93-380, 308-93-390, and 308-93-440.

Statutory Authority for Adoption: RCW 88.02.070, 88.02.100.

Adopted under notice filed as WSR 03-01-104 on December 18, 2002.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 4, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 4, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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.

March 4, 2003

Fred Stephens

Director

OTS-6106.3


AMENDATORY SECTION(Amending WSR 01-21-071, filed 10/18/01, effective 11/18/01)

WAC 308-93-370   Format required for name and address -- Names separated by the words "and," "or," or the slash symbol (/).   (1) Does the department use the words "and," "or," or the slash symbol (/) when recording multiple interests on a certificate of ownership? No, the department no longer uses these designations when recording ownership interest. For those certificates of ownership ((which)) that have been issued using one of these designations((,)):

(a) Any registered owners shown are considered to have equal registered owner interest in the vessel; and

(b) Any secured parties shown are considered to have equal secured party interest in the vessel.

(2) Will the department use the words "and," "or," or the slash symbol (/) if another jurisdiction has recorded multiple interests on the foreign certificate of ownership using one of these designations? No. The department does not allow the use of these designations when recording ownership interest.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 01-21-071, 308-93-370, filed 10/18/01, effective 11/18/01; 99-22-059, 308-93-370, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-370, filed 11/18/83.]


AMENDATORY SECTION(Amending WSR 01-21-071, filed 10/18/01, effective 11/18/01)

WAC 308-93-380   Format required for name and address -- Ownership in joint tenancy.   (1) What does joint tenancy with rights of survivorship (JTWROS) mean when noted on a certificate of ownership? If a vessel certificate of ownership shows the owners are in joint tenancy with rights of survivorship and one of the named parties dies, ownership vests in the surviving joint owner(s). The department will issue a certificate of ownership in the name of the surviving joint owner(s) upon application supported by a copy of the death certificate issued by a government entity and an application for certificate of ownership signed by the surviving owner(s).

(2) How is joint tenancy with rights of survivorship shown on the application for certificate of ownership? The application for certificate of ownership must show((s)) the name of every owner with the phrase "Joint tenants with rights of survivorship" spelled out. ((The address of only one owner can be accepted on the application. Example 1:

Doe, John

Doe, Jane

Doe, Mary

Joint tenants with rights of survivorship; or

Example 2:

Doe, John

Doe, Jane

Joint tenants with rights of survivorship.))

(3) How is joint tenancy with rights of survivorship shown on the certificate of ownership? The certificate of ownership will be printed showing the abbreviation "JTWROS((.))" in the brands/comments section.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 01-21-071, 308-93-380, filed 10/18/01, effective 11/18/01; 99-22-059, 308-93-380, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-380, filed 11/18/83.]


AMENDATORY SECTION(Amending WSR 01-08-022, filed 3/27/01, effective 4/27/01)

WAC 308-93-390   Vessels held in trust.   (1) How is a trust shown on a certificate of ownership? ((Owners who choose to designate the trust on a certificate of ownership may:

(a) Show the registered owner name with the designation trustee;

(b) Show the registered owner name with the designation trustee followed by the name of the trust as one owner. If necessary, the name of the trust will be abbreviated to comply with the department's data field size constraints on the automated vessel field system and space limitations on the certificate of ownership; or

(c) The name of the trust only.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? You will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees. Trusts established under chapter 23.90 RCW must provide notarized/certified documentation from the secretary of state showing the trust is registered with the state of Washington.

(3) If a vessel is titled in the name of a trust, who represents the trust for title transactions? Any trustee designated in the trust document represents the trust on all vessel transactions with the department unless that trustee is replaced or the trust is terminated.

(4) What is required when the succession of trustees is appointed? If the name of the trustee who has been succeeded is shown on the certificate of ownership, the successor trustee must apply for a new certificate of ownership and provide documentation appointing them as trustee.)) A certificate of ownership may show the name of the trustee(s) or trust in one of the following manners:

(a) The trustee(s) name(s) only followed by the designation trustee, i.e., John Doe, trustee; or

(b) The trustee(s) name(s) followed by the designation trustee and the name of the trust, i.e., John Doe, trustee John Doe Family Trust; or

(c) The name of the trust only, i.e., John Doe Family Trust.

Note: If necessary, the name of the trust will be abbreviated to meet the department's system limitations.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? You will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees.

Note: Massachusetts Trusts described in chapter 23.90 RCW must provide verification that the trust was filed with the Washington secretary of state.

(3) What is required when the trustee no longer acts on behalf of a trust? If a trustee no longer acts on behalf of a trust, and the vessel ownership currently shows:

(a) The trustee(s) name(s) only followed by the designation trustee, i.e., John Doe, trustee, application must be made for a new certificate of ownership; or

(b) The trustee(s) name(s) followed by the designation trustee and the name of the trust, i.e., John Doe, trustee John Doe Family Trust, application must be made for a new certificate of ownership; or

(c) The name of the trust only, i.e., John Doe Family Trust application for new certificate of ownership is not required.

Note: New, or successor, trustees must provide documentation showing they are named as such in the trust.

(((5))) (4) What is required when a trust is terminated? If the termination of the trust results in a change of ownership for the vessel, the new owner must apply for a new certificate of ownership under chapter 88.02 RCW.

[Statutory Authority: RCW 46.01.110, 88.02.070 and 88.02,100 [88.02.100]. 01-08-022, 308-93-390, filed 3/27/01, effective 4/27/01. Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-390, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-390, filed 11/18/83.]


AMENDATORY SECTION(Amending WSR 00-23-028, filed 11/7/00, effective 12/8/00)

WAC 308-93-440   Ownership in doubt.   (1) ((What do I do if I am unable to provide an acceptable release of interest as defined in WAC 308-93-460 from the owner(s) of record for a vessel? When you are unable to provide an acceptable release of interest from the owner(s) of record for a vessel, you may:

(a) Petition any district or superior court of any county of this state to receive a judgment awarding ownership of the vessel;

(b) Apply for "registration only" as described in subsection (2) of this section;

(c) Apply for bonded certificate of ownership as described in subsection (3) of this section.

(2) What is "registration only"? It is a term used to describe registration of a vessel when a certificate of ownership is not issued because ownership is in doubt. If ownership is not contested during a three-year registration only period, the registered owner(s) may apply for certificate of ownership at the end of the three-year period.

(3) What is a bonded certificate of ownership? A bonded certificate of ownership is an ownership document issued by the department that carries the brand "bonded" and is secured by a bond for one and one-half times the value of the vessel.

(4) How do I apply for "ownership in doubt"? To apply for ownership in doubt, you must:

(a) Provide evidence of ownership of the vessel, such as but not limited to, a bill of sale or purchase agreement.

(b) Make a reasonable effort to determine ownership of the vessel by writing to the agency that issued the last known certificate of ownership or registration and request the certificate of ownership or other acceptable owner documents and releases of interest.

(5) How do I obtain ownership information from the department for purposes of applying for ownership in doubt? For purposes of this section, an individual purchaser or transferee of a vessel may request the name and address of the owner(s) of record for that vessel from the department by:

(a) Satisfying subsection (4)(a) of this section; and

(b) Completing a public disclosure form provided or approved by the department.

When satisfied, the request is for obtaining proper release(s) of interest, the department may disclose the name and address of the last owner(s) of record for that vessel.

(6) What do I do once I know the name(s) and address(s) of the last known registered and legal owner(s)? If a record of the vessel is found, you must send a certified or registered letter, return receipt requested, to each owner and secured party of record at the address shown on the last record. The letter shall contain information regarding the sender's claim to ownership and a request for the released certificate of ownership or a notarized or certified release of interest on an approved department form.

If the vessel was last registered or titled in another state or jurisdiction you must write to the agency that issued the last known certificate of ownership or registration requesting owners of record, so information may be requested as in subsection (4)(b) of this section.

(7) What do I do if no record of the vessel is found or the previous owner(s) did not respond to the certified or registered letter? You must provide an affidavit or request for bonded title or registration without title form provided or approved by the department explaining how the vessel was acquired if:

(a) No record is found; or

(b) The previous owner did not respond within fifteen days after acknowledged receipt of the letter; or

(c) The letter was returned unclaimed.

(8) When am I required to apply for a bonded certificate of ownership? A bond is required if:

(a) The seller of the vessel is a Washington state vessel dealer (dealer must secure); or

(b) In lieu of the judgment described in subsection (1)(a) of this section and there is evidence of a security agreement on the last record as found in subsection (4)(b) of this section; or

(c) Ownership of the vessel is contested after you make application for ownership in doubt and before the existing three-year ownership in doubt period has ended; or

(d) If you desire to have a certificate of ownership issued for the vessel.

(9) How long is the duration of the bond? A bond shall be for a period of three years from the date of application.

(10) In what amount is the bond issued? The bond must be in the amount of one and one-half times the value of the vessel as determined by one of the following:

(a) Information provided by any guide book or other publication of recognized standing in the vessel industry; or

(b) A value that is agreeable to the applicant and verifiable by authorized department of licensing, department of revenue, Washington vessel licensing agent, subagent or employee.

(11) If I have a bonded certificate of ownership for my vessel, how can I get a certificate of ownership without the bonded notation? To get a certificate of ownership without the bonded notation, you may apply for a certificate of ownership by submitting one of the following, in addition to other required documentation:

(a) A judgment from any district or superior court of any county of this state awarding ownership of the vessel as described in subsection (1) of this section; or

(b) The properly endorsed most previous (current) certificate of ownership or a satisfactory release of interest from the previous registered and legal owner(s); or

(c) An application to remove the bonded notation on the vessel certificate of ownership after the three-year ownership in doubt period has elapsed.

(12) If my vessel is "registration only" because ownership is in doubt, how can I get a certificate of ownership? You may apply for a certificate of ownership by submitting one of the following, in addition to other required documentation:

(a) A judgment from any district or superior court of any county of this state awarding ownership of the vessel as described in subsection (1) of this section; or

(b) A certificate of ownership properly released or a signature notarized/certified on a release of interest from the most previous registered and legal owner(s); or

(c) An application from the registered owner to remove the registration only notation on the vessel certificate of ownership after the three-year ownership in doubt period has elapsed.

(13) May I sell or release my interest in the vessel during the three-year ownership in doubt period? Yes, upon transferring ownership during the three-year ownership in doubt period, you must provide the new owner(s) with a notarized or certified release of interest. The new owner may:

(a) Provide a judgment as described in subsection (1)(a) of this section; or

(b) Apply to the department for ownership and complete the time remaining on the previous ownership in doubt period.)) What does an applicant do if an acceptable release of interest as defined in WAC 308-93-460 is not available? When an applicant is unable to provide an acceptable release of interest for a vessel, the applicant may:

(a) Petition any district or superior court of any county of this state to receive a judgment awarding ownership of the vessel; such judgment is required if ownership of the vessel is contested after the applicant makes application for ownership in doubt and before the three-year ownership in doubt period has lapsed; or

(b) Apply for "registration only" or bonded certificate of ownership as described in this rule if a judgment is unavailable as described in (a) of this subsection. The applicant must:

(i) Provide evidence of ownership of the vessel including, but not limited to, a bill of sale;

(ii) Make a reasonable effort to determine ownership of the vessel by writing to the agency that issued the last known certificate of ownership or registration. For purposes of this section, an individual purchaser or transferee of a vessel may request the name and address of the owner(s) of record for that vessel from the department by satisfying (b)(i) of this subsection and completing a form approved by the department. When the department is satisfied the request is for obtaining proper release of interest, the department may disclose the name(s) and address of the last owner(s) of record for that vessel.

(A) If a record is found, the applicant must send a certified or registered letter, return receipt requested, to each owner and secured party of record at the address shown on the last record. The letter must contain information regarding the sender's claim to ownership and a request for the released certificate of ownership or a notarized or certified release of interest.

(B) If the previous owner does not respond within fifteen days after acknowledged receipt or the letter was returned unclaimed, the applicant must provide a completed affidavit of request for bonded title or registration, explaining how the vessel was acquired;

If no record is found, the applicant must provide the completed form titled, Affidavit of Request for Bonded Title or Registration Without Title.

(iii) Determine whether to bond the vessel and apply for a certificate of ownership or apply for registration only. A bond is required if the seller of the vessel is a Washington state vessel dealer or in lieu of the judgment described in (a) of this subsection if there is evidence of a security agreement on the last record found. A bond will be for a period of three years from the date of application and be in the amount of one and one-half times the value of the vessel as determined by one of the following:

(A) Information provided by a value guide book or other publication of recognized standing in the vessel industry; or

(B) A value that is agreeable to the applicant and verifiable by the authorized department agent or employee.

(2) If I have a bonded certificate of ownership for my vessel, how can I get a certificate of ownership without the bonded notation? In order to get a certificate of ownership without the bonded notation, you may:

(a) Submit a properly endorsed certificate of ownership or a satisfactory release of interest and make application to the department anytime during the three-year period; or

(b) After the three-year period, make application to the department.

(3) If I have a three-year vessel registration only, how can I obtain a certificate of ownership? In order to receive a certificate of ownership, you may:

(a) Submit the properly endorsed certificate of ownership or a satisfactory release of interest and make application to the department anytime during the three-year period; or

(b) After the three-year period, make application to the department.

(4) May I sell or release my interest in the vessel during the three-year ownership in doubt period? Yes. A bonded certificate of ownership may be released and provided to the buyer in the same way as any other certificate of ownership. The Washington bonded certificate of ownership may not be accepted by another state. If the other state has a similar program, they may issue their own type of bonded certificate of ownership. For registration only, provide the buyer with a notarized or certified release of interest. The new owner may either provide a judgment as described in subsection (1)(a) of this section or wait until the expiration of the time remaining on the previous ownership in doubt period and then make application for the certificate of ownership. If a notarized/certified release of interest cannot be obtained from the current registered owner, the new owner must start over with a new three-year bonded or registration only process.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 00-23-028, 308-93-440, filed 11/7/00, effective 12/8/00. Statutory Authority: RCW 88.02.070. 98-09-023, 308-93-440, filed 4/8/98, effective 5/9/98. Statutory Authority: RCW 88.02.070, 88.02.100 and 46.12.380. 96-03-046, 308-93-440, filed 1/11/96, effective 2/11/96. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-440, filed 11/18/83.]

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