WSR 11-17-082

EMERGENCY RULES

DEPARTMENT OF LICENSING


[ Filed August 17, 2011, 12:14 p.m. , effective August 17, 2011, 12:14 p.m. ]


Effective Date of Rule: Immediately.

Purpose: According to RCW 46.12.005 and 46.12.600 - If, for any year beginning with 2002, the Consumer Price Index (CPI) for All Urban Consumers, compiled by the Bureau of Labor Statistics, United States Department of Labor, or its successor, for the West Region, in the expenditure category "used cars and trucks," shows an increase in the annual average for that year compared to that of the year immediately prior, the department shall, by rule, increase the then market value threshold amount by the same percentage as the percentage increase of the annual average, with the increase of the market value threshold amount to be effective on July 1 of the year immediately after the year with the increase of the annual average. The CPI showed an increase this previous year and the market value threshold amount was increased from $6790 to $7660. For this reason, WAC 308-56A-460 needs to be changed (and should have been changed effective July 1, 2011) to reflect this increase in the market value threshold amount.

Citation of Existing Rules Affected by this Order: Amending WAC 308-56A-460.

Statutory Authority for Adoption: RCW 46.01.110.

Under RCW 34.05.350 the agency for good cause finds that state or federal law or federal rule or a federal deadline for state receipt of federal funds requires immediate adoption of a rule.

Reasons for this Finding: State law requires that any changes in the market value threshold amount be accurately noted in rule by July 1, 2011, of each year. The market value threshold amount changed in 2011 and the WAC which assists in determining if total loss vehicles meet the market value threshold amount needs to be accurate in order to accurately determine if a vehicle's title needs to indicate "insurance destroyed" on it.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

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

Date Adopted: August 17, 2011.

Ben T. Shomshor

Agency Rules Coordinator

OTS-4215.1


AMENDATORY SECTION(Amending WSR 10-19-045, filed 9/13/10, effective 10/14/10)

WAC 308-56A-460   Destroyed or wrecked vehicle -- Reporting -- Rebuilt.   (1) What are total loss, destroyed, salvage, and wrecked vehicles? For the purposes of this section:

(a) A total loss vehicle is one whose destruction has been reported to the department as described in RCW ((46.12.070)) 46.12.600 by an insurer (insurance companies and self-insurers as described in RCW 46.29.630);

(b) A destroyed vehicle is one whose destruction has been reported to the department as described in RCW ((46.12.070)) 46.12.600 by the vehicle's owner;

(c) A salvage vehicle as defined in RCW ((46.12.005)) 46.04.514;


Note: When used in this section, the terms "destroyed" and "destroyed vehicle" include total loss, destroyed, and salvage vehicles.

(d) A wrecked vehicle as defined in RCW 46.80.010(6).


Note: A vehicle may be considered destroyed or wrecked when the evidence of ownership is a salvage certificate/title, insurance company bill of sale, or wrecker bill of sale from any jurisdiction, or when the evidence of ownership indicates the vehicle may be a destroyed vehicle not reported to the department.

(2) How are vehicles reported to the department as total loss, destroyed, salvage, or wrecked?

(a) Insurers may report total loss vehicles to the department:

(i) Electronically through the department's on-line reporting system. Insurers must destroy ownership documents for a vehicle reported this way; or

(ii) By submitting the certificate of ((ownership)) title or affidavit in lieu of title indicating the vehicle is "DESTROYED"; or

(iii) By submitting a completed total loss claim settlement form (TD 420-074).


Note: Reports of total loss vehicles must include the insurer's name, address, and the date of loss.

(b) Registered or legal owners report a vehicle as destroyed by submitting the certificate of ((ownership)) title or affidavit in lieu of title indicating the vehicle is "DESTROYED," and must include the registered owner's name, address, and date of loss.

(c) Licensed wreckers report wrecked vehicles as required in RCW 46.80.090.

(d) For vehicles six through twenty years old a statement whether or not the vehicle meets the market value threshold amount as defined in RCW ((46.12.005)) 46.12.600 is also required.

(3) What is the current market value threshold amount? The current market value threshold amount is ((six thousand seven hundred ninety dollars)) seven thousand six hundred sixty dollars.

(4) How is the market value threshold amount determined? Using the current market value threshold amount described in RCW ((46.12.005)) 46.12.600 each year the department will add the increased value if the increase is equal to or greater than fifty dollars.

(5) What if the "market value threshold amount" is not provided as required? If the market value threshold amount is not provided when required, the department would treat the report of destruction as if the market value threshold as described in RCW ((46.12.005)) 46.12.600 has been met. The certificate of ((ownership)) title will be branded according to WAC 308-56A-530.

(6) What documentation is required to obtain a certificate of ((ownership)) title after a vehicle is destroyed? After a vehicle has been reported destroyed or wrecked and is rebuilt, you must submit the following documentation to the department in order to obtain a new certificate of ((ownership)) title:

(a) Application for certificate of ((ownership)) title as described in RCW ((46.12.030)) 46.12.530;

(b) Certificate of vehicle inspection as described in WAC 308-56A-150;

(c) Bill of sale from the insurer, owner, or wrecker who reported the vehicle's destruction to the department.

(i) Bills of sale from insurers must include a representative's signature and title of office;

(ii) Bills of sale from insurers and wreckers do not need to be notarized;

(iii) Bills of sale from owners shown on department records must be notarized or certified;

(iv) A bill of sale is not required when owners shown on department records retain a destroyed vehicle and apply for a new certificate of ownership;

(v) Releases of interest from lien holder(s) or proof of payment such as a canceled check bearing a notation that it has been paid by the bank on which it was drawn or a notarized statement on a receipt from the legal owner that the debt is satisfied are required when the vehicle is retained by the registered owner(s).

(d) Odometer disclosure statement, if applicable.

(7) What is required of a Washington licensed vehicle dealer prior to selling a destroyed or wrecked vehicle? Except as permitted by RCW 46.70.101 (1)(b)(viii), before a dealer may sell a destroyed or wrecked vehicle under their Washington vehicle dealer license, the dealer must:

(a) Rebuild the vehicle to standards set by the state of Washington or the federal government pertaining to the construction and safety of vehicles; and

(b) Obtain a vehicle inspection by the Washington state patrol; and

(c) Apply for and receive a certificate of ownership for the vehicle, issued in the name of the vehicle dealer.

(8) Once a destroyed or wrecked vehicle is rebuilt, do the license plates remain with the vehicle? Whether or not the license plates remain with the vehicle depends on the circumstance:

(a) Standard issue license plates may remain with a destroyed vehicle unless they are severely damaged or the vehicle was issued a department temporary permit described in WAC 308-56A-140;

(b) Replacement license plates are required for wrecked vehicles since Washington licensed wreckers are required by WAC 308-63-070 to remove them;

(c) Special license plates may remain with or be transferred to a destroyed or wrecked vehicle;

(d) Applicants may retain the current license plate number as provided for in RCW ((46.16.233)) 46.16A.200, unless the vehicle was issued a department temporary permit as described in WAC 308-56A-140.

(9) Will the certificate of ownership or registration certificate indicate "WA REBUILT"? Salvage or wrecked vehicles meeting the criteria described in WAC 308-56A-530 will be branded "WA REBUILT."

[Statutory Authority: RCW 46.01.110. 10-19-045, 308-56A-460, filed 9/13/10, effective 10/14/10. Statutory Authority: RCW 46.12.005 and 46.01.110. 09-19-113, 308-56A-460, filed 9/22/09, effective 10/23/09. Statutory Authority: RCW 46.01.110. 04-08-080, 308-56A-460, filed 4/6/04, effective 5/7/04; 02-19-016, 308-56A-460, filed 9/9/02, effective 10/10/02; 01-20-010, 308-56A-460, filed 9/20/01, effective 10/21/01. Statutory Authority: RCW 46.01.110 and 46.12.070. 00-06-025, 308-56A-460, filed 2/23/00, effective 3/25/00. Statutory Authority: RCW 46.01.110. 92-15-024, 308-56A-460, filed 7/6/92, effective 8/6/92. Statutory Authority: RCW 46.01.110 and 46.12.070. 91-04-025, 308-56A-460, filed 1/29/91, effective 3/1/91; Order MV 208, 308-56A-460, filed 7/31/74.]

Washington State Code Reviser's Office