WSR 14-05-092 PROPOSED RULES DEPARTMENT OF NATURAL RESOURCES [Filed February 19, 2014, 8:56 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 13-15-103.
Title of Rule and Other Identifying Information: Vessel inspection requirements for ownership transfer, after July 1, 2014, owners of vessels more than sixty-five feet in length and more than forty years old must obtain a vessel inspection prior to transferring such vessels. Owners must provide a copy of the vessel inspection documentation to the transferee and the Washington state department of natural resources prior to the ownership transfer. Owners who comply will avoid secondary liability if the vessel is later abandoned by the transferee or becomes derelict prior to a subsequent ownership transfer.
Hearing Location(s): Mount Vernon City Council Chambers, 1805 Continental Place, Mount Vernon, WA 98273, on Tuesday, March 25, 2014, at 6:00 p.m.; at the Vancouver Community Library, 901 C Street, Vancouver, WA 98660, on Wednesday, March 26, 2014, at 6:00 p.m.; and at the Seattle Public Library, Beacon Hill Branch, 2821 Beacon Avenue South, Seattle, WA 98144, on Thursday, March 27, 2014, at 6:00 p.m.
Date of Intended Adoption: May 6, 2014.
Submit Written Comments to: Lisa M. Randlette, Department of Natural Resources, Mailstop 47027, Olympia, WA 98504-7027, e-mail lisa.randlette@dnr.wa.gov, fax (360) 902-1786, by March 28, 2014.
Assistance for Persons with Disabilities: Contact Ms. Megan McKay by March 21, 2014, TTY (360) 902-1125.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule specifies financial liability for prior and current owners of commercial and recreational vessels that are greater than sixty-five feet in length and more than forty years old. This rule specifies how sellers/transferors of such vessels will be released from potential, future secondary liability for subsequent abandonment or dereliction of the vessel, by providing inspection reports to the prospective buyer and the Washington state department of natural resources.
Reasons Supporting Proposal: Compliance with this rule will provide sellers/transferors potential, future protection from secondary liability for subsequent abandonment or dereliction of the vessel.
Statutory Authority for Adoption: RCW 34.05.328.
Statute Being Implemented: RCW 79.100.150.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state department of natural resources, governmental.
Name of Agency Personnel Responsible for Drafting: Lisa M. Randlette, 1111 Washington Street S.E., Olympia, WA 98504-7027, (360) 902-1085; Implementation and Enforcement: Melissa Ferris, 1111 Washington Street S.E., Olympia, WA 98504-7027, (360) 902-1100.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Overall the impact on small business is minimal and no formal small business economic impact statement is required. Vessel inspections by either the buyer or seller are considered normal business costs as part of negotiating a sale price, so the rule will not change buyer or seller behavior in most cases. There will be a small subset of cases where the inspection will be an additional cost, however because this will be a small subset, it is expected that the impact on small business overall will be minimal. There also may be minor costs associated with transmitting inspection documentation if a small business proposes to sell a vessel that is forty years or older, and sixty-five feet or longer.
A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Lisa M. Randlette, Aquatic Resources Division, Department of Natural Resources, Mailstop 47027, Olympia, WA 98504-7027, phone (360) 902-1085, fax (360) 902-1786, e-mail lisa.randlette@dnr.wa.gov.
February 18, 2014
Megan Duffy
Deputy Supervisor
Aquatics and
Environmental Protection
AMENDATORY SECTION (Amending WSR 12-19-035, filed 9/12/12, effective 10/13/12)
WAC 332-08-101 Applicability to department actions under the Derelict and Abandoned Vessel Act, chapter 79.100 RCW.
When is this chapter applicable to department actions relating to the Derelict and Abandoned Vessel Act? This chapter applies when the owner or lien holder of an abandoned or derelict vessel files a challenge to ((the)) a decision or action of ((a state agency)) the department acting as an authorized public entity ((is filed)) with the pollution control hearings board under the Derelict and Abandoned Vessel Act as provided in RCW 79.100.120 (((2)(a))).
AMENDATORY SECTION (Amending WSR 12-19-035, filed 9/12/12, effective 10/13/12)
WAC 332-08-111 Derelict and abandoned vessel—Appeal deadline.
When must ((my)) I file my appeal ((be filed))? The owner or lien holder of an abandoned or derelict vessel may file a notice of appeal regarding ((an agency)) a decision or action of the department under chapter 79.100 RCW ((may be filed)) with the pollution control hearings board ((upon receipt of the department's notice of intent to take custody of a vessel, but the notice of appeal must be filed no later than thirty days after the date the authorized public entity took custody of the vessel, or if the vessel was redeemed before the authorized public entity took custody, no later than thirty days after the date of redemption)). A written request for a hearing related to the decision or action must be filed with the pollution control hearings board and served on the department in accordance with RCW 43.21B.230 (2) and (3) within thirty days of the date the department acquires custody of the vessel under RCW 79.100.040, or if the vessel is redeemed before the department acquires custody, no later than thirty days after the date of redemption.
AMENDATORY SECTION (Amending WSR 12-19-035, filed 9/12/12, effective 10/13/12)
WAC 332-08-121 Derelict and abandoned vessel—Filing location.
Where must ((my)) I file my appeal ((be filed))? ((A)) The owner or lien holder of an abandoned or derelict vessel must file any notice of appeal concerning a decision to take temporary possession or custody of a vessel or the amount owed to ((an authorized public entity)) the department under chapter 79.100 RCW ((must be filed)) with the pollution control hearings board and ((served)) must serve a copy of the appeal on the department at the following addresses:
Pollution Control Hearings Board
Physical Address:
1111 Israel Road S.W., Suite 301
Tumwater, WA 98501
Mailing Address:
((P.O. Box)) MS 40903
Olympia, WA 98504-0903
Department of Natural Resources
Aquatic Resources Division
Derelict Vessel Removal Program
((P.O. Box 47027)) Physical Address:
1111 Washington St. S.E.
Olympia, WA ((98504-7027)) 98501
Mailing Address:
MS 47027
Olympia, WA 98504-7027
NEW SECTION
WAC 332-08-122 Derelict and abandoned vessel—Transfer of certain vessels—Vessel inspection required—Secondary liability.
When is this chapter applicable to the department's derelict vessel removal actions? As directed by RCW 79.100.150, a qualifying vessel owner must provide vessel inspection disclosure documentation specified in WAC 332-30-123 to the department before transferring ownership of a vessel that is:
(1) More than sixty-five feet in length and more than forty years old; and
(2) Either:
(a) Is registered or required to be registered under chapter 88.02 RCW; or
(b) Is listed or required to be registered under chapter 94.40 RCW.
After July 1, 2014, this chapter applies when the department seeks financial reimbursement from any person or entity the department determines has incurred secondary liability under RCW 79.100.150 for all reasonable and auditable costs associated with the removal and disposal of derelict or abandoned vessels. The department may pursue secondary liability if the prior owner(s) did not provide the department copies of a vessel inspection disclosure report, as specified in WAC 332-30-123, before transferring ownership of the vessel.
NEW SECTION
WAC 332-08-123 Derelict and abandoned vessel—Minimum criteria for vessel inspection.
(1) What is the minimum criteria for a vessel inspection? Current U.S. Coast Guard certificates of inspection are acceptable forms of vessel condition determination. Other vessel inspection disclosure reports must document the condition, valuation, and suitability of the vessel for service. The vessel inspection disclosure report may be prepared for either the owner, lien holder, buyer/transferee, vessel broker, or associated financial and insurance provider(s) for the vessel. Vessel inspections must be prepared by a professional marine surveyor who is a third party to the transaction. The vessel inspection must be completed within six months prior to the seller transferring ownership of the vessel. Before transferring ownership of the vessel, the owner must provide the department a hard copy of the vessel inspection disclosure report and department-issued Acknowledgement Form with original, notarized signatures of the vessel owner and the buyer/transferee acknowledging receipt of the vessel inspection disclosure report.
(2) The vessel inspection disclosure report must include the following information, at a minimum if applicable to the vessel:
(a) Cover page describing:
(i) Report title identifying type of survey;
(ii) Date report issued;
(iii) Contact information for surveyor;
(iv) Current photograph of vessel, date and location; and
(v) Official vessel number.
(b) Vessel description:
(i) General description;
(ii) Vessel name;
(iii) Current legal owner;
(iv) Intended use of vessel;
(v) Design; and
(vi) Type of construction.
(c) Vessel particulars:
(i) Builder;
(ii) Displacement;
(iii) Length;
(iv) Breadth;
(v) Draught; and
(vi) Fuel system.
(d) Surveyor's notes and condition rating;
(e) Systems evaluation:
(i) Type of propulsion;
(ii) Auxiliary engines; and
(iii) Electrical systems.
(f) Conditions:
(i) Overall appearance; and
(ii) Hull and superstructure condition.
(g) Surveyor recommendations;
(h) Appraisal of market value;
(i) Replacement value; and
(j) Suitability for service including an estimate of anticipated cost of repairs necessary to return the vessel to seaworthiness.
NEW SECTION
WAC 332-08-124 Derelict and abandoned vessel—Procedure for vessel inspection documentation.
(1) Where must I file my vessel inspection documentation? The vessel owner must file a hard copy vessel inspection disclosure report and supporting documentation at the following address:
Department of Natural Resources
Aquatic Resources Division
Derelict Vessel Removal Program
MS 47027
Olympia, WA 98504-7027
(2) What is the department's procedure for confirming receipt of vessel inspection disclosure documentation? The department will accept hard copies of a vessel inspection disclosure report and completed Acknowledgement Form from qualifying vessel owners.
(a) The department will transmit a hard copy or electronic notice of receipt to the vessel owner within ten business days of receiving the vessel inspection disclosure documentation.
(b) Such department-issued notice of receipt does not constitute concurrence that the vessel inspection disclosure documentation meets the minimum criteria for a vessel inspection disclosure report, specified in WAC 332-30-123 or that the documentation was received prior to ownership transfer of the vessel.
(c) The department will maintain records of vessel inspection disclosure documentation for future determination of potential secondary liability.
(3) What is the department's procedure for determining and asserting secondary liability?
(a) The department will notify a prior owner of a vessel, determined to be derelict or abandoned, that they have secondary liability when cost recovery is sought, if:
(i) An authorized public entity has taken, or is in the process of taking, custody of the derelict or abandoned vessel;
(ii) The current owner cannot be identified or is financially insolvent;
(iii) The department does not have vessel inspection disclosure documentation on record for the derelict or abandoned vessel; and
(iv) The vessel was transferred after July 1, 2014.
(b) The department may provide such notice of secondary liability concurrently with a vessel custody action or after an authorized public entity has obtained custody of the vessel.
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