WSR 08-09-031

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed April 9, 2008, 8:18 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-20-035.

Title of Rule and Other Identifying Information: WAC 308-93-010 Definitions, 308-93-055 Vessels from out-of-state operating in this state--Identification document required, 308-93-056 Out-of-country vessel operating in this state -- Identification documents required, and 308-93-230 Procedure for perfecting security interest.

Hearing Location(s): Department of Licensing, Conference Room 108, 1125 Washington Street S.E., Olympia, WA 98507, on May 28, 2008, at 1:30 p.m.

Date of Intended Adoption: June 24, 2008.

Submit Written Comments to: Dale R. Brown, P.O. Box 2957, Mailstop 48205, 1125 Washington Street S.E., Olympia, WA 98507-2957, e-mail dbrown@dol.wa.gov, fax (360) 902-7821 or 902-7822, by May 27, 2008.

Assistance for Persons with Disabilities: Contact Dale R. Brown by May 27, 2008, TTY (360) 664-8885.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Rule making is required to bring them into compliance with current law and update language to make it more understandable.

Reasons Supporting Proposal: Language was unclear and laws had changed.

Statutory Authority for Adoption: RCW 88.02.070, 88.02.100, and 88.02.030.

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

Name of Proponent: None.

Name of Agency Personnel Responsible for Drafting: Dale Brown, 1125 Washington Street S.E., Olympia, WA, (360) 902-4020; Implementation and Enforcement: Gary VanCamp, 1125 Washington Street S.E., Olympia, WA, (360) 902-0122.

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.

April 7, 2008

Mykel D. Gable

Assistant Director

Vehicle Services

OTS-1440.1


AMENDATORY SECTION(Amending WSR 06-21-025, filed 10/9/06, effective 11/9/06)

WAC 308-93-010   Definitions.   The following definitions apply to the rules in this chapter:

(1) "Bare boat" means a vessel rented without a captain or crew.

(2) "Carpenter certificate" means a certificate issued by a manufacturer describing the vessel and certifying the first conveyance of the vessel after its manufacture.

(3) "Certificate of ownership" means the ownership document issued by the department or other jurisdiction, sometimes referred to as a title.

(4) "Charter vessel" means a vessel rented with a crew.

(5) "Commercial fishing vessel" means a vessel primarily used for commercial or charter fishing.

(6) "Conveyance" means transfer of title of a vessel from one person to another.

(7) "Declaration of value form" means the department of licensing form used to declare the value for purposes of assessing excise tax when a vessel is acquired by lease, trade, gift, is homemade, or the most recent purchase price is not known.

(8) "Director" means the director of the department of licensing.

(9) "Display permit" means the document issued by the department, its agents or subagents, for display on the vessel for which it was issued under the authority of WAC 308-93-055 or 308-93-056.

(10) "Docking hull" means vessels that are powered by one or more personal watercrafts and are designed for use with personal watercraft.

(11) "Documented vessel" means a vessel that is documented by the United States Coast Guard and is issued a valid marine certificate.

(12) "Exclusively" means solely and without exception.

(13) (("Foreign vessel" means a vessel registered in accordance with the laws of another state or jurisdiction. Also referred to as "out-of-country."

(14))) "Houseboat" means any vessel as defined in RCW 88.02.010(1). For registration and certificate of ownership purposes, a houseboat does not include any building on a float used in whole or in part for human habitation as a single-family dwelling which is not powered by self-propulsion by mechanical means or wind.

(((15))) (14) "Identification documents" means the vessel registration receipt and display permit issued under the authority of WAC 308-93-055 or 308-93-056.

(((16))) (15) "Issuing authority" means the number system has not been approved by the Coast Guard or it is a state or other jurisdiction that has a vessel identification numbering system approved by the Coast Guard. (Also see definition for out-of-country vessel.)

(((17))) (16) "Legal owner/secured party" means a person, business, or institution having a security interest in a vessel perfected in accordance with RCW 88.02.070.

(((18))) (17) "Lifeboat" means watercraft used exclusively for lifesaving purposes.

(((19))) (18) "Manufacturer's certificate of origin" (MCO) or "Manufacturer's statement of origin" (MSO) means a certificate issued by a manufacturer describing the vessel and certifying the first conveyance of the vessel after manufacture.

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

(20) "Normal course of business" means a business practice specific to the purpose of the business by a legitimate, licensed business or its agents, employees, or contractors; and

(a) To verify the accuracy of personal information submitted by the individual to the business or its agencies, employees, or contractors; and

(b) If such information submitted is not correct or is no longer correct, to obtain correct information, but only for the purposes of preventing fraud by, pursuing legal remedies against, or recovering on a debt or security interest against the individual. If acting as agent of lien holder, requestor must submit proof of contract with lien holder.

(21) "Out-of-country vessel" means a vessel registered or numbered by the laws of another country or has a valid United States ((Customs Service)) Cruising ((License)) Permit.

(((21))) (22) "Overall length" means a straight-line measurement of the overall distance from the foremost point of the vessel to the aftermost part of the vessel, measured parallel to the centerline. Bowsprits, bumpkins or boomkins, rudders, outboard motor brackets, outdrive units, propellers, Stern Castles and similar fittings or attachments are not included in the measurement.

(((22))) (23) "Paperless title" means electronic ownership record.

(((23))) (24) "Person" includes every natural person, firm, copartnership, corporation, association or organization.

(((24))) (25) "Personal watercraft" for the purpose of this rule has the same meaning as in RCW 79A.60.010, such as Jet Ski or Wet Bike.

(((25))) (26) "Primarily" means the principal purpose for which a vessel is used when considered in conjunction with all of its uses.

(((26))) (27) "Principal use" means when a vessel is used on waters of this state for one hundred eighty-three days or more.

(((27))) (28) "Private investigator" means a person who is licensed under chapter 18.165 RCW and is employed by a private investigator agency for the purpose of investigation, escort or bodyguard services, or property loss prevention activities.

(29) "Propulsion machinery/mechanical power" means any device providing motion to a vessel through such means as combustion, steam, or electric machinery.

(((28))) (30) "Racing vessel" is a vessel used exclusively in racing events.

(((29))) (31) "Release of interest" means the act of signing over any ownership in a vessel. A notarized or certified release of interest is also a document relinquishing interest in a vessel.

(((30))) (32) "Renewal notice" and "special mailer" means the notice to renew a vessel registration mailed by the department to the owner.

(((31))) (33) "Tender" means watercraft used exclusively to furnish transportation from a larger vessel to shore and return.

(((32))) (34) "Time share charters" means leased vessels where none of the parties leasing the vessel under a "time share" option agreement is acquiring an equity in the vessel and there is no option to buy.

(((33))) (35) "United States ((Customs Service)) Cruising ((License)) Permit" also known as a "Cruising License" means an annual certificate issued by U.S. Customs Service under 19 C.F.R. Sec. 4.94, ((which)) that exempts pleasure boats from certain countries from formal entry and clearance procedures, from payment of tonnage tax and clearance fees at all but the first port of entry.

(((34))) (36) "Use of waters" means to navigate, operate, employ, or moor any vessel upon the waters.

(((35))) (37) "Unsolicited business contact" means (for public disclosure rules) a contact that is intended to result in or promote the sale of any goods or services to a person named in the disclosure information. The term does not apply to situations where the requesting party and such person have been involved in a business transaction prior to the date of the disclosure request and where the request is made in connection with the transaction.

(38) "Valid marine document" means a document issued by the Coast Guard which declares it to be a United States documented vessel.

(((36))) (39) "Vessel data form" means the form, approved by the department, completed by the applicant describing the vessel.

(((37))) (40) "Vessel seller's report of sale." A vessel seller's report of sale is a document that protects the seller 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.

(((38))) (41) "Washington vehicle licensing office" means a vehicle and vessel licensing office as an agent or subagent appointed under RCW 46.01.140.

(42) "Waters of this state" means any waters within the territorial limits of this state as defined in U.S. Code: Title 43, Section 1312.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 06-21-025, 308-93-010, filed 10/9/06, effective 11/9/06; 01-21-072, 308-93-010, filed 10/18/01, effective 11/18/01; 01-03-128, 308-93-010, filed 1/23/01, effective 2/23/01; 00-11-131, 308-93-010, filed 5/23/00, effective 6/23/00; 98-16-029, 308-93-010, filed 7/29/98, effective 7/30/98. Statutory Authority: RCW 88.02.100 and United States v Washington, Subproceeding No. 88-1. 96-16-038, 308-93-010, filed 8/1/96, effective 9/1/96. Statutory Authority: RCW 88.02.070 and 88.02.100. 92-24-035, 308-93-010, filed 11/25/92, effective 12/26/92. Statutory Authority: RCW 88.02.120 and 88.02.100. 90-08-018, 308-93-010, filed 3/28/90, effective 4/28/90; 87-09-073 (Order TL/RG-32), 308-93-010, filed 4/22/87. Statutory Authority: RCW 88.02.030, 88.02.070, 88.02.120, 88.02.130, 88.02.140, 88.02.150 and 88.02.100. 86-10-068 (Order TL/RG 25), 308-93-010, filed 5/7/86. Statutory Authority: RCW 88.02.070 and 88.02.100. 84-19-026 (Order TL-RG 8), 308-93-010, filed 9/13/84. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-010, filed 11/18/83.]


AMENDATORY SECTION(Amending WSR 06-21-025, filed 10/9/06, effective 11/9/06)

WAC 308-93-055   Vessels from out-of-state operating in this state -- Identification document required.   (1) What documentation must be carried aboard a vessel from another state ((or out-of-country)) when being operated upon the waters of this state? The current ((foreign vessel)) out-of-state registration is valid for the first sixty consecutive days of operation. ((In addition the following must apply:

(a))) The vessel must have been issued a valid number or registration under federal law or by an approved issuing authority of the state of principal operation, if the vessel is remaining in this state for personal use or enjoyment.

(((b))) On or before the sixty-first consecutive day of use, the ((foreign vessel)) out-of-state owner must obtain a vessel sixty-day temporary identification document ((issued by the department, its agents or subagents)) from any Washington vehicle licensing office. This identification document is good for sixty consecutive days.

(((c))) A second sixty-day temporary identification document must be purchased on or before the one hundred twenty-first day of use in this state.

An out-of-state use permit issued by a vessel dealer under chapters 82.08, 88.02, and 82.12 RCW.

(2) What must I provide to obtain a vessel sixty-day temporary identification document?

(a) Proof of nonresidency by showing the vessel owner's out-of-state driver's license or out-of-state photo identification;

(b) A copy of the current ((foreign)) out-of-state vessel registration or current United States Coast Guard certificate of documentation;

(c) Date the vessel first came into the state;

(d) A nonrefundable identification document fee ((of twenty-five dollars plus a filing fee and subagent fee, if applicable,)) described in RCW 88.02.030 and other applicable fees per vessel sixty-day temporary identification document.

(3) How many vessel sixty-day temporary identification documents may be obtained? Not more than two may be obtained in any continuous twelve-month period for any single vessel. The twelve months begins on the date the vessel first entered this state.

(4) How do I display the vessel sixty-day temporary identification document?

(a) Keep aboard at all times when moored and during operation;

(b) Displayed in the windshield, side window, cockpit or operation area of the vessel, so that it is visible to law enforcement from either the dock or from the water;

(c) Protected from the weather.

(5) If the vessel owner is not available, how do I obtain a vessel sixty-day temporary identification document? The person applying for the vessel sixty-day temporary identification document must have a:

(a) Notarized/certified power of attorney from a registered owner of the vessel;

(b) Copy of the vessel owner's out-of-state driver's license or photo identification; and

(c) Copy of the out-of-state ((or out-of-country)) registration certificate.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 06-21-025, 308-93-055, filed 10/9/06, effective 11/9/06; 01-03-128, 308-93-055, filed 1/23/01, effective 2/23/01; 98-16-029, 308-93-055, filed 7/29/98, effective 7/30/98.]


AMENDATORY SECTION(Amending WSR 01-03-128, filed 1/23/01, effective 2/23/01)

WAC 308-93-056   Out-of-country vessel operating in this state -- Identification document required.   (1) What documentation must be carried aboard an out-of-country vessel when being operated upon the waters of this state?

(a) The current out-of-country vessel registration or a United States ((Customs Service)) Cruising ((License)) Permit is valid for the first sixty days of operation when the vessel is remaining in this state for personal use or enjoyment.

(b) The foreign vessel must have been issued a valid number or registration issued by a country other than the United States or a United States ((Customs Service)) Cruising ((License)) Permit.

(c) On or before the sixty-first consecutive day of use, the out-of-country vessel owner must obtain a vessel out-of-country permanent identification document issued by ((the department, its agents or subagents)) any Washington vehicle licensing office; or

(d) An out-of-state use permit issued by a vessel dealer under chapters 82.08, 88.02, and 88.12 RCW.

(2) What must I provide to obtain a vessel out-of-country permanent identification document? You must provide the following:

(a) Proof of identification as described in WAC 308-56A-275(2);

(b) A copy of the current foreign vessel registration or current United States Coast Guard certificate of documentation;

(c) Date the vessel first came into the state;

(d) A nonrefundable identification document fee ((of twenty-five dollars plus a filing fee and subagent fee, if applicable)) described in RCW 88.02.030 and other applicable fees.

(3) How many vessel out-of-country permanent identification document((s)) certificates may be obtained? One((,)). The vessel out-of-country permanent identification document is valid as long as the vessel continues to be registered in a country other than the United States or has a United States ((Customs Service)) Cruising ((License)) Permit. New owners may apply for a corrected vessel out-of-country permanent identification document listing the new owner's name and address. The new owner shall pay a nonrefundable fee of three dollars plus a filing fee and subagent fee, if applicable. If the original out-of-country identification document is lost or destroyed, the owner must apply for a replacement.

(4) How do I display the vessel out-of-country permanent identification document? The vessel out-of-country permanent identification document must be:

(a) Kept aboard the vessel at all times when moored and during operation;

(b) Displayed in the windshield, side window, cockpit or operation area of the vessel, so that it is visible to law enforcement from either the dock or from the water;

(c) Protected from the weather.

(5) If the vessel owner is not available, how do I obtain a vessel out-of-country permanent identification document? If the vessel owner is not available, the person applying for the vessel out-of-country permanent identification document must have a:

(a) Notarized/certified power of attorney from a registered owner of the vessel;

(b) Copy of the valid registration numbers issued by a country other than the United States or a United States ((Customs Service)) Cruising ((License)) Permit.

[Statutory Authority: RCW 88.02.070, 88.02.100. 01-03-128, 308-93-056, filed 1/23/01, effective 2/23/01; 98-16-029, 308-93-056, filed 7/29/98, effective 7/30/98.]


AMENDATORY SECTION(Amending WSR 03-15-019, filed 7/8/03, effective 8/8/03)

WAC 308-93-230   Procedure for perfecting security interest.   (1) How is the security interest in a vessel perfected?

A security interest in a vessel is perfected when the requirements similar to RCW 46.12.095 for vehicles is followed. Security interest in a vessel (other than one held as inventory by a manufacturer or a dealer and for which a certificate of ownership is required) is perfected only by completing the requirements of RCW 46.12.103 for vessels under the circumstances provided for in this section:

(a) The existing certificate and application for certificate of ownership containing the name and address of the secured party is received by the department with required fees; or

(b) The secured interest is perfected as of the time of its creation if the secured party's name and address appear on the outstanding certificate of ownership when received in (a) of this subsection with appropriate fees; or

(c) The vessel is subject to a security interest when brought into this state. The perfection of the security interest is determined by the jurisdiction in which the vessel was either purchased, registered and/or titled and the security interest is attached.

If perfected through the laws of another jurisdiction, the following applies:

(i) If the name of the secured party is shown on the existing certificate of ownership issued by that jurisdiction, the security interest continues perfected in this state.

(ii) If the security interest was not perfected under the law of the jurisdiction where the vessel was when the security interest was attached, it may be perfected in this state, in that case perfection dates from the time of perfection in this state.

The application must be in the same manner as provided for vehicles and WAC 308-93-069 and 308-93-070 as provided for vessels.

(2) When would the department of licensing not issue a certificate of ownership?

(a) Vessels that are documented in compliance with federal regulations are issued a registration and are not issued a certificate of ownership; or

(b) When ownership in doubt; or

(c) The out-of-state lien holder retains title.

(3) What fees are charged for adding, deleting or changing a secured party?

An application fee and filing fee are due for each transaction. Some Washington vehicle licensing offices charge an additional service fee ((is charged if a licensing subagent processes the transaction as)) referenced in RCW 88.02.070.

(4) What is the secured party's obligation when the lien has been satisfied?

When a certificate of ownership is required, the secured party must comply with RCW 46.12.170 as provided for vehicles, and WAC 308-93-069 and 308-93-070 as provided for vessels and pay the required fees.

Requirements for application for certificate of ownership:

(a) New vessels:

(i) Application for certificate of ownership to a vessel never before licensed or titled shall be accompanied by a manufacturer's statement of origin, carpenter's certificate, or a copy of the factory invoice.

(ii) The manufacturer's statement of origin, carpenter's certificate, or factory invoice must reflect the model year, make, length and hull identification number of the vessel.

(iii) The department will not accept any manufacturer's statement of origin, carpenter's certificate, or factory invoice for the issuance of a certificate of ownership unless all persons named on the manufacturer's statement of origin, including dealers, have released or assigned their interest, or on a release of interest form approved by the department.

(iv) Dealer-to-dealer transfers may be accomplished either by appropriate endorsement of the manufacturer's statement of origin, carpenter's certificate, or factory invoice, or release of interest form approved by the department. A complete chain of ownership must be reflected from the original dealer named on the manufacturer's statement of origin to the retail selling dealer making the application.

(v) A copy of the factory invoice may be used in lieu of the manufacturer's statement of origin or carpenter's certificate only when such documents are not available and obtaining a replacement from the manufacturer would cause an undue amount of delay in titling the vessel. A certificate of fact describing why the statement of origin or carpenter's certificate is not available must be accompanied by the photocopy of the factory invoice and any necessary releases of interest on a form approved by the department.

(b) Vessels with existing certificate of ownership from a foreign titling jurisdiction:

(i) Excise exemption affidavit;

(ii) A copy of the bill of sale or sales agreement;

(iii) Declaration of value form;

(iv) Previous ownership document properly released;

(v) Proof of sales tax paid;

(vi) Release of interest;

(vii) Other verification of ownership approved by the department, such as:

(A) A judgment from a district or superior court of any county of this state awarding ownership; or

(B) Document from an involuntary divestiture sale or auction; and/or

(C) Copy of certificate of documentation of vessel issued by the United States Coast Guard.

(c) Vessels without existing certificate of ownership or from a nontitling jurisdiction:

(i) Excise exemption affidavit;

(ii) A copy of the bill of sale or sales agreement;

(iii) Declaration of value form;

(iv) Previous ownership document properly released;

(v) The registration, if it is from a nontitle state;

(vi) Proof of sales tax paid;

(vii) Manufacturer's statement of origin, factory invoice, or carpenter's certificate;

(viii) An affidavit in lieu of title;

(ix) Release of interest;

(x) Other verification of ownership approved by the department to include:

(A) A judgment from a district or superior court of any county of this state awarding ownership; or

(B) Document from an involuntary divestiture sale or auction; and/or

(C) Copy of certificate of documentation of vessel issued by the United States Coast Guard; and/or

(D) An affidavit certifying when and where the vessel was acquired or brought into the state.

(5) What is the secured party's obligation when the lien has been satisfied due to the sale of the vessel?

The secured party must comply with RCW 46.12.101 as provided for vehicles and WAC 308-93-069 and 308-93-070 as provided for vessels.

Vessel owners applying for certificate of ownership and/or registration of a vessel must submit an application, which includes, but is not limited to:

(a) Expiration date of the certificate of registration;

(b) The name of each owner of the vessel and if the vessel is subject to security interest, the name of each secured party;

(c) The department-assigned customer account number for each owner of the vessel including secured parties if available;

(d) The address at which one of the owners regularly receives mail;

(e) The mailing address of the first secured party;

(f) The Washington registration number as assigned;

(g) Make and model year;

(h) Length of vessel;

(i) Type of power (gasoline, diesel, etc.);

(j) Primary use (commercial, pleasure, etc.);

(k) Primary method of propulsion (inboard, sail, etc.);

(l) Type of vessel (runabout, cabin, etc.);

(m) Primary vessel construction (fiberglass, wood, etc.);

(n) County of moorage;

(o) Hull identification number, if one has been assigned;

(p) Latest purchase price and purchase year or, if the vessel was not acquired by purchase, a declaration of value and year of declaration.

For the purposes of this section, purchase price or declared value includes the vessel, vessel motor, or engine, and all other equipment and accessories, excluding a boat trailer, purchased or acquired in a single transaction;

(q) United States Coast Guard document number, if applicable.

In addition to the information listed above, upon original application for certificate of ownership and/or registration of a homemade vessel, the owner ((shall)) must complete and sign a declaration of value form. The owner's signature must be notarized/certified in accordance with WAC 308-93-470.

(6) Is the secured party liable for the acts of the vessel owner?

No. The secured party is not liable or responsible for any act or contract made by the vessel owner or by any person representing the vessel owner.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 03-15-019, 308-93-230, filed 7/8/03, effective 8/8/03. Statutory Authority: RCW 46.16.381. 02-04-001, 308-93-230, filed 1/23/02, effective 2/23/02. Statutory Authority: RCW 88.02.070 and 88.02.100. 98-21-001, 308-93-230, filed 10/8/98, effective 11/8/98; 92-24-035, 308-93-230, filed 11/25/92, effective 12/26/92. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-230, filed 11/18/83.]

Washington State Code Reviser's Office