WSR 06-18-047

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed August 30, 2006, 11:03 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 04-01-161.

Title of Rule and Other Identifying Information: Chapter 308-93 WAC, Vessel registration and certificates of title, chapter 308-63 WAC, Wreckers and chapter 308-56A WAC, Certificates of title -- Motor vehicles etc., including WAC 308-93-276 Vessel seller's report of sale, 308-63-090 Vehicle wrecker -- Records and procedures for monthly reports, 308-56A-410 No application required, 308-56A-500 Definitions, and 308-56A-525 Vehicle seller's report of sale.

Hearing Location(s): Department of Licensing, Conference Room 108, 1125 Washington Street S.E., Olympia, WA 98507, on October 10, 2006, at 10:00 a.m.

Date of Intended Adoption: November 7, 2006.

Submit Written Comments to: Dale R. Brown, P.O. Box 2957, Mailstop 48200, 1125 Washington Street S.E., Olympia, WA 98507-2957, e-mail dbrown@dol.wa.gov, fax (360) 902-0140, by October 9, 2006.

Assistance for Persons with Disabilities: Contact Dale R. Brown by October 9, 2006, TTY (360) 664-8885.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Rule making is required under normal review of rules to update and make clearer.

Reasons Supporting Proposal: To clarify language and make the rules easier to understand.

Statutory Authority for Adoption: RCW 46.01.110 and 46.12.101.

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

Name of Proponent: , governmental.

Name of Agency Personnel Responsible for Drafting: Dale R. Brown, 1125 Washington Street S.E., Olympia, WA, (360) 902-4020; Implementation and Enforcement: Sheila Hadden, 1125 Washington Street S.E., Olympia, WA, (360) 902-3673.

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 businesses in the industry.

A cost-benefit analysis is not required under RCW 34.05.328. The contents of the proposed rules are explicitly and specifically dictated by statute.

August 30, 2006.

Scott Black

for Julie Knittle, Administrator

Title and Registration Services

OTS-9199.1


AMENDATORY SECTION(Amending WSR 05-14-092, filed 6/30/05, effective 7/31/05)

WAC 308-56A-410   No application required.   When do I not need to apply for a certificate of ownership? A Washington vehicle dealer need not apply for ((title)) certificate of ownership in his own name when:

(1) A vehicle is acquired that is titled and the title is properly released; or

(2) One vehicle dealer transfers a particular vehicle to another vehicle dealer, unless precluded by other regulations;

(3) The dealer has a properly executed affidavit of loss from the legal owner of record and release of interest from the registered and legal owners of record for a Washington titled vehicle.

(4) An abandoned vehicle/vessel is purchased by a Washington licensed dealer and intended for retail sale.

[Statutory Authority: RCW 46.70.160. 05-14-092, 308-56A-410, filed 6/30/05, effective 7/31/05; Order MV 208, 308-56A-410, filed 7/31/74.]


AMENDATORY SECTION(Amending WSR 05-23-135, filed 11/22/05, effective 1/3/06)

WAC 308-56A-500   Definitions.   The following definitions apply to terms used in chapters 46.12 and 46.16 RCW and chapter 308-56A WAC:

(1) "Affidavit in lieu of title" is a written declaration confirming the certificate of ownership, registration certificate, validation tab are unavailable, lost, stolen, destroyed or mutilated. The affidavit in lieu of title may be used to release interest in the vehicle. The signature of the owner completing the affidavit in lieu of title must be notarized or certified as described in WAC 308-56A-270.

(2) "Affidavit of loss" is a written statement confirming the certificate of ownership, registration certificate, validation tab or decal has been lost, stolen, destroyed or mutilated. The affidavit of loss release of interest form may be used to release interest in the vehicle and transfer gross weight license for that vehicle to a new owner. The signature of the owner completing the affidavit of loss release of interest must be notarized or certified as described in WAC 308-56A-270.

(3) "Affixed" means attached.

(4) "Brands" means a permanent notation on the certificate of ownership and vehicle registration certificate that records a circumstance or condition involving a vehicle.

(5) "Brands incident date" is the date that a brand was first applied to a vehicle. For states/jurisdictions participating in the National Motor Vehicle Title Information System (NMVTIS), it's the date the brand was first reported. For all other states/jurisdictions, it is established by using the date the current title was issued. Brands on Washington records prior to the effective date of this rule will reflect a brand incident date equal to the date the last Washington certificate of ownership was issued.

(6) "Certificate of ownership" (also referred to as "certificate of title" or "title") is a legal document indicating proof of ownership and will establish a fact or sustain a judgment unless contradictory evidence is produced. A certificate of ownership may be a document other than a title when a title document is not issued by a jurisdiction. For example, for Canadian vehicles, the certificate of ownership is the registration.

(7) "Comment" means an indication on the certificate of ownership, vehicle title/registration application or vehicle registration certificate that relates to tax liability, type of ownership, title transaction type or a previous condition of the vehicle.

(8) "Commercial parking company" means any business directly engaged in providing vehicle parking upon property owned or controlled by the business and approved for public parking of vehicles.

(9) "Current license plate registration" means the current registration or one that has been expired less than one year.

(10) "Declaration in lieu of title" is a written statement confirming the certificate of ownership, registration certificate, validation tab is unavailable, lost, stolen, destroyed, or mutilated. The declaration in lieu of title may be used to release interest in the vehicle. The signature of the owner completing the declaration in lieu of title must be signed under penalty of perjury, as described in WAC 308-56A-270.

(11) "Declaration of loss" is a written statement confirming the certificate of ownership, registration certificate, validation tab or decal has been lost, stolen, destroyed, or mutilated. The declaration of loss release of interest form may be used to release interest in the vehicle and transfer gross weight license for that vehicle to a new owner. The signature of the owner completing the declaration of loss release of interest must be signed under penalty of perjury, as described in WAC 308-56A-270.

(12) "Department" means the same as described in RCW 46.04.162.

(13) "Department temporary permit" is a permit issued temporarily in lieu of permanent registration and license plates when required documentation is unavailable.

(14) "Electronic filing" is the use of an electronic method to transmit information to the department that may include, but is not limited to, the use of the internet and facsimile.

(15) "Involuntary divestiture" means a change in vehicle ownership without the registered owner's involvement.

(16) "Joint tenancy with rights of survivorship" (JTWROS) means two or more people who own a vehicle in joint tenancy with the right to own individually if one of them dies.

(17) "Jurisdiction code" means an abbreviation assigned by the department generally based on the U.S. Postal Service designation that indicates state, province, district, or country.

(18) "Legal owner" means the same as described in RCW 46.04.270.

(19) "Lien holder" means a person or entity that has a legal right or interest in another's property until a debt or duty that it secures is satisfied.

(20) "Natural person" means a human being.

(21) "Not eligible for road use" (NEFRU) means a vehicle that does not meet Federal Motor Vehicle Safety standards, other federal and/or state standards for public road use as adopted, applied, and enforced by the Washington state patrol described in RCW 46.37.005.

(22) "A declaration under penalty of perjury" means a statement signed by the applicant to the effect - "I declare under penalty of perjury under the laws of the state of Washington that the information I have provided on this form is true and correct. Anyone who knowingly makes a false statement may be guilty of a crime under state law.

(23) "Person" means the same as described in RCW 46.04.405.

(24) "Personal representative" means:

(a) An individual appointed by the court; or

(b) An individual named in the last will and testament and confirmed by the court to manage the estate of a deceased person.

Personal representative may also include executor, administrator, special administrator, and guardian or limited guardian and special representative as defined in RCW 11.02.005(1).

(25) "Registered owner" means the same as described in RCW 46.04.460.

(26) "Security interest" means a property interest created by agreement or by operation of law to secure performance of an obligation (repayment of a debt).

(27) "Security interest holders" means in this instance, the same as "lien holder" as defined in subsection (16) of this section.

(28) "Secured party" means in this instance the same as "lien holder" as defined in subsection (16) of this section.

(29) "Standard brand" is a brand found on the brands list maintained by the National Motor Vehicle Title Information System (NMVTIS) program.

(30) "Transferee" means a person to whom a vehicle is transferred, by purchase, gift, or any means other than by creation of a security interest, and any person who, as agent, signs an odometer disclosure statement for the transferee, when applicable.

(31) "Transferor" means a person who transfers ownership in a vehicle by sale, gift, or any means other than by creation of a security interest and any person who, as agent, signs an odometer disclosure statement for the transferor, when applicable.

(32) "Unique brand" means a brand issued by a state that is not participating in the National Motor Vehicle Title Information System (NMVTIS) program and does not appear on the brands list maintained by NMVTIS.

(33) "Vehicle seller's report of sale" is a document or electronic record transaction that protects the seller of a vehicle from certain criminal and civil liabilities arising from use of the vehicle by another person after the vehicle has been sold or a change of ownership has occurred.

(34) A "vehicle" is a device by which any person or property may be propelled, moved, or drawn upon a highway, excepting a device moved exclusively by human power or used exclusively upon stationary rails or tracks.

(35) "Washington vehicle licensing office" means an office that is operated by the department or an agent or subagent appointed under RCW 46.01.140 for the purpose of carrying out the vehicle titling and registration provisions in Title 46 RCW.

[Statutory Authority: RCW 46.16.010. 05-23-135, 308-56A-500, filed 11/22/05, effective 1/3/06. Statutory Authority: RCW 46.01.110. 05-07-152, 308-56A-500, filed 3/23/05, effective 5/15/05; 04-08-081, 308-56A-500, filed 4/6/04, effective 5/7/04; 02-19-016, 308-56A-500, filed 9/9/02, effective 10/10/02. Statutory Authority: RCW 65.20.110. 00-13-083, 308-56A-500, filed 6/20/00, effective 7/21/00; 00-06-004, 308-56A-500, filed 2/18/00, effective 3/20/00; 90-11-091, 308-56A-500, filed 5/18/90, effective 6/18/90.]


AMENDATORY SECTION(Amending WSR 02-24-014, filed 11/25/02, effective 12/26/02)

WAC 308-56A-525   Vehicle seller's report of sale.   (1) ((What is a vehicle seller's report of sale? A vehicle seller's report of sale is a document or electronic record transaction that protects the seller of a vehicle from certain criminal and civil liabilities arising from use of the vehicle by another person after the vehicle has been sold or a change in ownership has occurred.

(2))) Who must file a vehicle seller's report of sale? With the exception of certain vehicle transfers by registered Washington vehicle dealers, and vehicles disposed of by licensed vehicle wreckers, Washington law (RCW 46.12.101) requires ((submission of)) filing a vehicle seller's report of sale by any person or business that transfers their interest in a Washington titled vehicle to anyone else. For the purposes of this rule, transferring interest includes, but is not limited to, selling, gifting, trading or disposing of your vehicle, but does not include the creation, deletion or change of a security interest.

(((3))) (2) When must a completed vehicle seller's report of sale be filed? Vehicle seller's report of sale must be ((submitted)) received by the department within five days of the date of sale, gift, trade or other disposition of the vehicle, excluding Saturdays, Sundays, and state and federal holidays.

(((4))) (3) Who is the seller? The seller is the current registered owner of record according to the computer file kept by the department. The seller is a person (individual or business) who transfers their right of ownership of a vehicle to another person or business.

(4) Who is the purchaser? The purchaser is a person (individual or business) who takes a vehicle into their possession, by voluntary acquisition.

(5) Why complete and file a vehicle seller's report of sale? It is in the seller's best interest to file the properly completed vehicle seller's report of sale to protect the seller in the event the buyer does not make application for ownership and then accumulates parking tickets, or towing charges, is involved in an uninsured accident or used in illegal activity, etc.

Vehicle seller's report of sale received by the department of licensing that are incomplete will be filed with the department; however, those that do not meet the requirements of the law may not protect the seller from any civil or legal action if the vehicle is subsequently abandoned or involved in illegal activity.

(6) ((Who is the purchaser? The purchaser is the person who bought, received as a gift, obtained through a trade or received a disposed vehicle.

(7) What information is required on the vehicle seller's report of sale? You are required to provide information contained in RCW 46.12.101.

(8))) How do I file my vehicle seller's report of sale? You may file your seller's report of sale ((in the following ways)) through:

(a) ((Through)) Your local vehicle/vessel licensing office; or

(b) ((Mail it to)) The department by mail; or

(c) ((Through)) The internet.

(((9))) (7) What information is required on the vehicle report of sale? You are required to provide information contained in RCW 46.12.101 that includes:

(a) The date of sale or transfer;

(b) Name(s) and address of seller;

(c) Name(s) and address of transferee (buyer);

(d) Description of vehicle; and

(e) Purchase price.

When you mail a vehicle seller's report of sale to the department, you will not receive a confirmation or receipt. You may wish to make a photocopy of the report of sale for your records prior to sending it to the department.

(8) Is there a fee for recording a vehicle seller's report of sale? Yes. It applies when a report of sale is filed through your local vehicle licensing office as authorized by RCW 46.01.140 (5)(b).

(((10))) (9) May a vehicle seller's report of sale be removed from my vehicle record? Yes. As a registered owner, you may have a vehicle seller's report of sale removed from your vehicle record through your local vehicle licensing office, or by notifying the department in writing. You will need to provide the reason you are removing the vehicle seller's report of sale from your vehicle record.

(((11))) (10) How will I ((prove)) show that I filed a completed vehicle seller's report of sale?

(((a))) When you file a vehicle seller's report of sale at any Washington vehicle licensing office, you will be provided with a receipt ((showing:)).

(((i))) When you file a vehicle report of sale on the internet, you will have the option of printing your receipt. Both receipts will show the following information:

(a) Date the report of sale was filed;

(((ii))) (b) Description of vehicle;

(((iii))) (c) Name and address of agent/subagent where filed (not included when filing through the internet);

(((iv))) (d) Date of sale;

(((v))) (e) Purchase price if provided;

(((vi))) (f) Name(s) and address of seller;

(((vii))) (g) Name(s) and address of transferee (buyer if provided).

(((b) When you file a vehicle seller's report of sale on line, you will be provided a receipt showing:

(i) Date the report of sale was filed;

(ii) Description of vehicle;

(iii) Date of sale;

(iv) Purchase price;

(v) Name(s) and address of seller;

(vi) Name(s) and address of transferee (buyer).

When you mail a vehicle seller's report of sale to the department, you will not receive a confirmation or receipt. You may wish to make a photocopy of the report of sale for your records prior to sending it to the department.))

Washington law makes it clear that it is a felony to knowingly make a false statement of fact. The penalty, upon conviction, ((shall)) must be a fine of not more than five thousand dollars or imprisonment of not more than ten years, or both the fine and imprisonment. (RCW 46.12.210.)

[Statutory Authority: RCW 46.01.110 and 46.12.101. 02-24-014, 308-56A-525, filed 11/25/02, effective 12/26/02.]

OTS-9200.1


AMENDATORY SECTION(Amending WSR 05-14-093, filed 6/30/05, effective 7/31/05)

WAC 308-63-090   Vehicle wrecker -- Records and procedures for monthly reports.   What records must I keep and how do I handle the monthly report? (1) Wrecker books and files. The wrecker ((shall)) must maintain books and files ((which shall)) that contain the following:

(a) A record of each vehicle or part acquired giving:

(i) A description of the vehicle or part by make, model, year, and for major component parts, except core parts, the vehicle identification number and "yard number" assigned at the time the vehicle or major component part was placed in the wrecking yard;

(ii) The date purchased or acquired by the vehicle wrecker, and the name of the person, firm or corporation from which the vehicle or part was obtained;

(iii) The certificate of ((title)) ownership number if registered in a title state, or registration number if a ((nontitle)) nontitling state; or description of the document used in lieu of title, such as an affidavit of sale ((or)), a bill of sale for a vehicle or vehicle part;

(iv) The name of the state and license number in the state that a vehicle was last registered; and

(v) A statement indicating whether any used car or truck at least six years but not more than twenty years old met the market value threshold amount immediately before it was wrecked, destroyed or damaged, as required by RCW 46.12.070 and WAC 308-56A-460(3). If this statement is not provided, when required, the department will treat the vehicle as if the wrecker indicated that the market value threshold was met when ((required)) wrecked.

(b) A record of the disposition of the motor, body, and major component parts giving the name of the person purchasing the part(s), if any. Sales to scrap processors ((shall)) must be accompanied by an invoice or bill of sale, listing each vehicle by its yard number. The wrecker ((shall)) must retain a copy of ((such)) the invoice or bill of sale for purposes of inspection for three years.

These records will be subject to inspection by authorized representatives of the department and law enforcement officials during regular business hours. The ((foregoing)) information ((shall)) must be entered in the wrecker's records within two business days of the event requiring the entry, such as receipt of a vehicle.

(2) The vehicle wrecker must furnish written reports. By the tenth of the month following acquisition of vehicles entered into the wrecking yard inventory, each wrecker must submit a report on the form prescribed by the department documenting that ((those)) the vehicles were acquired and entered into the wrecking yard inventory during the previous month. Vehicles being held in the segregated storage area awaiting ownership documents, ((pursuant to)) under WAC 308-63-070(8), will not be reported. The report ((shall)) must be made in duplicate. The original ((shall)) must be sent to the department and the duplicate retained for the wrecker's files. If no vehicles were acquired during that month, the monthly report must be sent in stating "none." The report ((shall)) must contain ((such)) information for vehicles only as the wrecker is required to keep by subsection (1)(a)(i), (ii), (iii), (iv), and (v) of this section. The report must be accompanied by properly endorsed certificates of ((title)) ownership or other adequate evidence of ownership and registration certificates((; provided that)). Records on acquisitions and sales of vehicle parts need not be included in reports submitted to the department but records ((shall)) must be kept for three years from date of purchase and made available for inspection.

(3) Identity of vehicles in yard. ((All vehicles placed in the wrecking yard shall be identified by a yard number as)) A yard number must identify all vehicles placed in the wrecking yard. The number must be assigned in the wrecker's records with numerals marked so as to be clearly visible and legible. If a part of a vehicle is sold which has the number on it, the yard number of the vehicle ((shall)) must be remarked in another location on the vehicle.

[Statutory Authority: RCW 46.80.140. 05-14-093, 308-63-090, filed 6/30/05, effective 7/31/05. Statutory Authority: Chapter 46.55 RCW. 02-19-036, 308-63-090, filed 9/10/02, effective 10/11/02. Statutory Authority: RCW 46.80.140. 00-13-019, 308-63-090, filed 6/12/00, effective 7/13/00. Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140. 93-08-076, 308-63-090, filed 4/6/93, effective 5/7/93.]

OTS-9201.1


AMENDATORY SECTION(Amending WSR 02-24-013, filed 11/25/02, effective 12/26/02)

WAC 308-93-276   Vessel seller's report of sale.   (1) ((What is a vessel seller's report of sale? A vessel seller's report of sale is a document or electronic record transaction that protects the seller of a vessel from certain criminal and civil liabilities arising from use of the vessel by another person after the vessel has been sold or a change in ownership has occurred.

(2))) Who must file a vessel seller's report of sale? With the exception of certain vessel transfers by registered Washington vessel dealers, Washington law (RCW 88.02.070 and 46.12.101) requires ((submission)) filing of a vessel seller's report of sale by any person or business that transfers their interest in a Washington registered/titled vessel to anyone else. For the purposes of this rule, transferring an interest includes, but is not limited to, selling, gifting, trading or disposing of your vessel, but does not include the creation, deletion, or change of a security interest.

(((3))) (2) When must a vessel seller's report of sale be filed? Vessel seller's report of sale must be ((submitted)) received by the department within five days of the date of sale, gift, trade or other disposition of the vessel, excluding Saturdays, Sundays, and state and federal holidays.

(((4))) (3) Who is the seller? The seller is ((the current registered owner of record according to the computer file kept by the department)) a person (individual or business) who transfers their right of ownership of a vessel to another person or business.

(((5) Why complete and file a vessel seller's report of sale? It is in the seller's best interest to file the properly completed vessel seller's report of sale to protect the seller in the event the buyer/new owner does not make application for ownership and then accumulates moorage charges, towing charges, or becomes involved in an uninsured accident or used in illegal activity, etc.

Vessel seller's report of sale received by the department of licensing that are incomplete will be filed with the department; however, those that do not meet the requirements of the law may not protect the seller from any civil or legal action if the vessel is subsequently abandoned or involved in illegal activity.

(6))) (4) Who is the purchaser? The purchaser is ((the person who bought, received as a gift, obtained through a trade or received a disposed vessel)) a person (individual or business) who takes a vessel into their possession, by voluntary acquisition.

(((7))) (5) How do I file my vessel seller's report of sale? You may file your seller's report of sale by mailing it to the department.

(6) What information is required on the vessel seller's report of sale? You are required to provide the following information:

(a) The date of the sale or transfer;

(b) Name(s) and address of seller;

(c) Name(s) and address of transferee (buyer);

(d) Description of vessel including:

(i) Vessel hull identification number; and

(ii) Vessel registration number.

(((8) How do I file my vessel seller's report of sale? You may file your seller's report of sale in the following ways:

(a) Through your local vehicle licensing office;

(b) Mail it to the department.

(9) Is there a fee for recording a vessel seller's report of sale? Yes. It applies when a report of sale is filed through your local vehicle licensing office as authorized by RCW 46.01.140 (5)(b).

(10))) (7) May a vessel seller's report of sale be removed from my vessel record? Yes. As a registered owner, you may have a vessel seller's report of sale removed ((from your vessel record through your local vehicle licensing office, or)) by notifying the department in writing. You will need to provide the reason you are removing the report of sale ((from your vessel record)).

(((11))) (8) How will I ((prove)) show that I filed a vessel seller's report of sale? ((When you file a vessel seller's report of sale at any Washington vehicle licensing office, you will be provided with a receipt showing:

(a) Date the report of sale was filed;

(b) Description of vessel;

(c) Name and address of agent/subagent where filed;

(d) Date of sale;

(e) Purchase price;

(f) Name(s) and address of seller;

(g) Name(s) and address of transferee (buyer).

When you mail a vessel seller's report of sale to the department you will not receive a confirmation or receipt. You may wish to make a photocopy of the report of sale for your records prior to sending it to the department.)) To obtain a copy of the filed seller's report of sale, you must contact the department.

Washington law makes it clear that it is a felony to knowingly make a false statement of fact. The penalty, upon conviction, shall be a fine of not more than five thousand dollars or imprisonment of not more than ten years, or both the fine and imprisonment. (RCW 46.12.210.)

[Statutory Authority: RCW 88.02.070 and 88.02.100. 02-24-013, 308-93-276, filed 11/25/02, effective 12/26/02.]

Washington State Code Reviser's Office