Subject of Possible Rule Making: Uniform commercial code (UCC), WAC 308-391-202 Grounds for refusal, 308-391-203 Procedure upon refusal, and 308-391-101(1) Methods to deliver UCC records -- Time of filing.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 62A.9A-526.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: WAC 308-391-202 and 308-391-203, the UCC program currently has about 18,000 fraudulent filings in the UCC database, with about 4,000 added each year. Fraudulent filings are used to harass or defraud others, and can affect victim's ability to get credit. These records are nonconsensual common law liens, which are stated in RCW 60.70.030. The department of licensing (DOL) has the duty to establish criteria via the rule-making process to reject and remove these lien filings. This proposed rule amendment is supported by industry and meets exemption criteria outlined in Executive Order 10-06.

     WAC 308-391-101(1), eliminate counter hours from this rule, and post hours on the internet site in lieu of.

     Process for Developing New Rule: Communication with the public in general through the DOL/UCC web page and UCC listserv.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kim Summers, P.O. Box 9660, Olympia, WA 98507-9660, fax (360) 570-7052, e-mail ucc@dol.wa.gov.

March 29, 2013

Damon Monroe

Rules Coordinator