Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-05-017.

     Title of Rule: Chapter 308 [308-56A] WAC, Certificates of tile [title] -- Motor vehicles, etc.

     Purpose: 1. To meet the criteria set forth in Governor Locke's Executive Order 97-02.

     2. To clarify rules and help make them more comprehensible.

     Statutory Authority for Adoption: RCW 46.01.110, 46.12.020.

     Summary: Amending WAC 308-56A-640 Odometer disclosure statement.

     Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02.

     Name of Agency Personnel Responsible for Drafting: Katherine Iyall Vasquez, 1125 Washington Street S.E., Olympia, (360) 902-3718; Implementation and Enforcement: Eric Andersen, 1125 Washington Street S.E., Olympia, (360) 902-4045.

     Name of Proponent: None.

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

     Explanation of Rule, its Purpose, and Anticipated Effects: The anticipated effects will be a clarification of the above-mentioned requirements.

     Proposal Changes the Following Existing Rules: Clarify sections needed and repeal those no longer required.

     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 (1)(a). The proposed rule making does not impose more than a minor cost on business in an industry.

     RCW 34.05.328 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 107, 1125 Washington Street S.E., Olympia, WA 98507, on June 2, 2003, at 10:00 a.m.

     Assistance for Persons with Disabilities: Contact Katherine Iyall Vasquez by May 30, 2003, TTY (360) 664-8885 or (360) 902-3718.

     Submit Written Comments to: Katherine Iyall Vasquez, Rules Manager, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by May 30, 2003.

     Date of Intended Adoption: June 24, 2003.

April 7, 2003

Eric R. Andersen

for Deborah McCurley, Administrator

Title and Registration Services

OTS-6305.1

AMENDATORY SECTION(Amending WSR 00-06-020, filed 2/23/00, effective 3/25/00)

WAC 308-56A-640   Odometer disclosure statement.   (1) When is an odometer disclosure statement required? An odometer disclosure statement must be completed and submitted with every application for certificate of ownership as required by RCW 46.12.124 and 49 Code of Federal Regulations (CFR), unless specifically exempted.

     (2) May a power of attorney be used to disclose the mileage of a vehicle? The transferee and/or transferor may give a power of attorney to a disinterested third party for the purpose of odometer disclosure.

     A ((secure)) power of attorney((, power of attorney)) designated under chapter 11.94 RCW ((or other power of attorney approved by the department)) may be used with an odometer disclosure statement with the following limitations:

     (a) The transferor may not give a power of attorney to the transferee of the same vehicle for the purpose of odometer disclosure unless the power of attorney is on a secure form and the conditions described in 49 CFR part 580.13 are met;

     (b) The transferee may not give a power of attorney to the transferor of the same vehicle for the purpose of odometer disclosure unless the power of attorney is on a secure form and the conditions described in 49 CFR part 580.13 are met;

     (c) A power of attorney may not be used to complete another power of attorney for the purposes of odometer disclosure.

     (3) Can a secure power of attorney described in 49 CFR part 580.13 be used by the transferee and transferor to complete the odometer statement? Yes, the secure power of attorney may be used to transfer the mileage information onto the secure vehicle odometer disclosure statement be either transferee or transferor.

     (4) What odometer disclosure statement forms will the department accept? Odometer disclosure statement forms approved by the department include, but are not limited to:

     (a) An odometer disclosure statement on a certificate of ownership issued by any jurisdiction which complies with the Federal Truth in Mileage Act; or

     (b) The odometer disclosure/title extension statement; or

     (c) A form issued/approved by a foreign jurisdiction which satisfies the provisions of RCW 46.12.124 or the Federal Truth in Mileage Act.

     (((4))) (5) When is an odometer disclosure/title extension statement used? An odometer disclosure/title extension statement is a form used:

     (a) With a certificate of ownership when an odometer disclosure statement is required and:

     (i) All reassignments on the certificate of ownership are full; or

     (ii) The certificate of ownership does not contain a section for the odometer disclosure information; or

     (b) If ((the)) a certificate of ownership has not been issued or is unavailable; or

     (c) If all reassignments on the certificate of ownership are full.

     (((5))) (6) When must a vehicle dealer process an odometer disclosure statement as a transferee? A vehicle dealer must process an odometer disclosure statement as a transferee and obtain the signature of the transferor when taking a vehicle in on trade, purchase, or otherwise acquiring a vehicle.

     (((6))) (7) When must a vehicle dealer process an odometer disclosure statement as a transferor? The vehicle dealer must complete an odometer disclosure statement as transferor when selling a vehicle at either wholesale or retail unless exempt under RCW 46.12.124 (3)(a) through (e).

     (((7))) (8) How is mileage disclosed when a vehicle is sold through an auction company? The seller/consignor signs as the transferor and the successful bidder/buyer signs as the transferee.

     (((8))) (9) How long must vehicle dealers and auction companies maintain odometer disclosure statements? The vehicle dealer or vehicle dealers doing business as an auction company must keep all odometer disclosure statement records for five years.

     (((9))) (10) Can ((one)) vehicle dealer representative(s) sign as transferee and transferor for the same transaction? No((. One person)), unless accompanied by a secure Power of Attorney form. The same entity or representatives cannot ((represent)) act on behalf of both the transferor and transferee for the purposes of odometer disclosure.

     (((10))) (11) When are odometer statements needed for leased vehicles? Odometer statements are needed for leased vehicles when((;)) establishing and terminating or buying out a lease. The lessor of a leased vehicle must notify the lessee in writing that the lessee is required to provide to the lessor a written odometer disclosure statement at the termination of the lease. That notice may be given any time after execution of the lease contract and prior to the termination of the lease or transfer of ownership.

     (a) When establishing a lease, the dealer or other transferor must disclose the mileage to the lessee on a written odometer statement, and the lessee must acknowledge the written odometer statement as the transferee.

     (b) When terminating a lease, the lessee as the transferor must disclose the mileage to the lessor and provide the lessor with a copy of the odometer disclosure statement.

     (c) The lessor shall retain each odometer disclosure statement for five years following the date ((they)) the lessor terminates a lease or transfers ownership of the leased vehicle.

     (((11))) (12) Who discloses the mileage on the odometer disclosure statement on a lease buyout? The lessee shall disclose the mileage on the odometer disclosure statement as transferee if the lessee purchases the vehicle at the termination of the lease. A transferor signature is not required on the odometer disclosure statement when submitted with the application for certificate of ownership.

     (((12))) (13) Is an odometer statement required when there is involuntary divestiture? Yes. If the interest of an owner in a vehicle passes to another through involuntary divestiture, an odometer disclosure statement must be completed under RCW 46.12.124 and the rules under 49 Code of Federal Regulations.

     (((13))) (14) When a vehicle is acquired by involuntary divestiture, are there any circumstances that may allow odometer disclosure statements to be completed by transferee only? Yes. Circumstances that may allow odometer disclosure statements to be completed by only the transferee include, but are not limited to:

     (a) Auction sale of an abandoned vehicle by a registered tow truck operator;

     (b) Chattel/landlord lien;

     (c) Court order;

     (d) Divorce;

     (e) Estate liquidation;

     (f) Repossession;

     (g) Seized vehicle;

     (h) Sheriff sale.

[Statutory Authority: RCW 46.01.110 and 46.12.030. 00-06-020, § 308-56A-640, filed 2/23/00, effective 3/25/00. Statutory Authority: RCW 46.01.110 and 46.12.124. 97-14-034, § 308-56A-640, filed 6/25/97, effective 7/26/97. Statutory Authority: RCW 46.12.030 and 46.01.110. 89-16-074 (Order TL/RG 49), § 308-56A-640, filed 7/31/89, effective 8/31/89.]

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