WSR 22-06-031
EXPEDITED RULES
DEPARTMENT OF LICENSING
[Filed February 23, 2022, 11:55 a.m.]
Title of Rule and Other Identifying Information: WAC 308-56A-460 Destroyed or wrecked.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To update WAC 308-56A-460 with the following changes: Subsection (3) should read: "The current market value threshold amount is eight thousand two hundred thirty dollars [$10,430]."
Reasons Supporting Proposal: RCW 46.12.600 requires the department to determine the market value threshold each year according to information provided in the United States Department of Labor (USDOL) Consumer Price Index Report. An increase in the threshold that exceeds $50.00 requires the department to document the new amount by updating the rule, which will become effective July 1, 2022.
Statutory Authority for Adoption: RCW 46.12.600.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Agency Personnel Responsible for Drafting: Dora Calle, 1125 Washington Street S.E., Olympia, WA 98504, 360-902-3798; Implementation and Enforcement: Ellis Starrett, 1125 Washington Street S.E., Olympia, WA 98504, 360-902-3846.
This notice meets the following criteria to use the expedited adoption process for these rules:
Content is explicitly and specifically dictated by statute.
Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: RCW 46.12.600 (4)(a) requires the department of licensing to update the market value threshold when the bureau of labor statistics at USDOL shows an annual average increase over the previous year.
NOTICE
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Dora Calle, Washington State Department of Licensing, P.O. Box 9030, Olympia, WA 98507, phone 360-902-3798, email dcalle@dol.wa.gov, AND RECEIVED BY May 2, 2022.
February 23, 2022
Ellis Starrett
Rules and Policy Manager
OTS-3632.1
AMENDATORY SECTION(Amending WSR 22-02-056, filed 1/4/22, effective 2/4/22)
WAC 308-56A-460Destroyed 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 46.12.600 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 46.12.600 by the vehicle's owner;
(c) A salvage vehicle as defined in RCW 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 online reporting system. Insurers must destroy ownership documents for a vehicle reported this way; or
(ii) By submitting the certificate of title or affidavit in lieu of title indicating the vehicle is "DESTROYED"; or
(iii) By submitting a completed total loss claim settlement form.
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 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 20 years old a statement whether or not the vehicle meets the market value threshold amount as defined in RCW 46.12.600 is also required.
(3) What is the current market value threshold amount? The current market value threshold amount is (($8,230))$10,430.
(4) How is the market value threshold amount determined? Using the current market value threshold amount described in RCW 46.12.600 each year the department will add the increased value if the increase is equal to or greater than $50.
(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 46.12.600 has been met. The certificate of title will be branded according to WAC 308-56A-530.
(6) What documentation is required to obtain a certificate of 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 title:
(a) Application for certificate of title as described in RCW 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 46.16A.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."