BILL REQ. #:  H-0131.1 

Read first time 01/19/11.   Referred to Committee on Transportation.

     AN ACT Relating to the title and registration advisory committee; amending RCW 46.01.325; reenacting RCW 46.01.140; and adding a new section to chapter 46.01 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 46.01 RCW to read as follows:
     The title and registration advisory committee is created within the department. The committee consists of the director or a designee, who serves as chair, the assistant director for vehicle services, the administrator of title and registration services, two members from each of the house of representatives and senate transportation committees, two county auditors nominated by the Washington association of county officials, and two representatives of subagents nominated by an association of vehicle subagents. The committee shall meet at least twice a year and may meet as often as necessary. The committee's purpose is to foster communication between the legislature, the department, county auditors, and subagents. The committee shall make recommendations about revisions to fee structures, implications of fee revisions on cost sharing, and the development of standard contracts provided for in RCW 46.01.140 (1)(a) and (4)(a).

Sec. 2   RCW 46.01.140 and 2010 c 161 s 204 are each reenacted to read as follows:
     (1) County auditor/agent duties. A county auditor or other agent appointed by the director shall:
     (a) Enter into a standard contract provided by the director, as developed in consultation with the advice of the title and registration advisory committee;
     (b) Provide all services authorized by the director for vehicle certificates of title and vehicle registration applications and issuance under the direction and supervision of the director including, but not limited to:
     (i) Processing reports of sale;
     (ii) Processing transitional ownership transactions;
     (iii) Processing mail-in vehicle registration renewals until directed otherwise by legislative authority;
     (iv) Issuing registrations and temporary ORV use permits for off-road vehicles as required under chapter 46.09 RCW;
     (v) Issuing registrations for snowmobiles as required under chapter 46.10 RCW; and
     (vi) Collecting fees and taxes as required.
     (2) County auditor/agent assistants and subagents. A county auditor or other agent appointed by the director may, with approval of the director:
     (a) Appoint assistants as special deputies to accept applications for vehicle certificates of title and to issue vehicle registrations; and
     (b) Recommend and request that the director appoint subagencies within the county to accept applications for vehicle certificates of title and vehicle registration application issuance.
     (3) Appointing subagents. A county auditor or other agent appointed by the director who requests a subagency shall, with approval of the director:
     (a) Use an open competitive process including, but not limited to, a written business proposal and oral interview to determine the qualifications of all interested applicants; and
     (b) Submit all proposals to the director with a recommendation for appointment of one or more subagents who have applied through the open competitive process. If a qualified successor who is an existing subagent's sibling, spouse, or child, or a subagency employee has applied, the county auditor shall provide the name of the qualified successor and the name of one other applicant who is qualified and was chosen through the open competitive process.
     (4) Subagent duties. A subagent appointed by the director shall:
     (a) Enter into a standard contract with the county auditor or agent provided by the director, as developed in consultation with the title and registration advisory committee; and
     (b) Provide all services authorized by the director for vehicle certificates of title and vehicle registration applications and issuance under the direction and supervision of the county auditor or agent and the director including, but not limited to:
     (i) Processing reports of sale;
     (ii) Processing transitional ownership transactions;
     (iii) Mailing out vehicle registrations and replacement plates to internet payment option customers until directed otherwise by legislative authority;
     (iv) Issuing registrations and temporary ORV use permits for off-road vehicles as required under chapter 46.09 RCW;
     (v) Issuing registrations for snowmobiles as required under chapter 46.10 RCW; and
     (vi) Collecting fees and taxes as required.
     (5) Subagent successorship. A subagent appointed by the director who no longer wants his or her appointment may recommend a successor who is the subagent's sibling, spouse, or child, or a subagency employee. The recommended successor must participate in the open competitive process used to select an applicant. In making successor recommendations and appointment determinations, the following provisions apply:
     (a) If a subagency is held by a partnership or corporate entity, the nomination must be submitted on behalf of, and agreed to by, all partners or corporate officers;
     (b) A subagent may not receive any direct or indirect compensation or remuneration from any party or entity in recognition of a successor nomination. A subagent may not receive any financial benefit from the transfer or termination of an appointment; and
     (c) The appointment of a successor is intended to assist in the efficient transfer of appointments to minimize public inconvenience. The appointment of a successor does not create a proprietary or property interest in the appointment.
     (6) Standard contracts. The standard contracts provided by the director in this section may include provisions that the director deems necessary to ensure that readily accessible and acceptable service is provided to the citizens of the state, including the full collection of fees and taxes. The standard contracts must include provisions that:
     (a) Describe responsibilities and liabilities of each party related to service expectations and levels;
     (b) Describe the equipment to be supplied by the department and equipment maintenance;
     (c) Require specific types of insurance or bonds, or both, to protect the state against any loss of collected revenue or loss of equipment;
     (d) Specify the amount of training that will be provided by each of the parties;
     (e) Describe allowable costs that may be charged for vehicle registration activities as described in subsection (7) of this section; and
     (f) Describe causes and procedures for termination of the contract, which may include mediation and binding arbitration.
     (7) County auditor/agent cost reimbursement. A county auditor or other agent appointed by the director who does not cover expenses for services provided by the standard contract may submit to the department a request for cost-coverage moneys. The request must be submitted on a form developed by the department. The department shall develop procedures to standardize and identify allowable costs and to verify whether a request is reasonable. Payment must be made on those requests found to be allowable from the licensing services account.
     (8) County auditor/agent revenue disbursement. County revenues that exceed the cost of providing services described in the standard contract, calculated in accordance with the procedures in subsection (7) of this section, must be expended as determined by the county legislative authority during the process established by law for adoption of county budgets.
     (9) Appointment authority. The director has final appointment authority for county auditors or other agents or subagents.
     (10) Rules. The director may adopt rules to implement this section.

Sec. 3   RCW 46.01.325 and 2010 1st sp.s. c 7 s 138 are each amended to read as follows:
     (1) The director shall prepare, with the advice of the title and registration advisory committee, an annual comprehensive analysis and evaluation of agent and subagent fees. The director shall make recommendations for agent and subagent fee revisions approved by the title and registration advisory committee to the senate and house transportation committees by January 1st of every third year starting with 1996. Fee revision recommendations may be made more frequently when justified by the annual analysis and evaluation, and as requested by the title and registration advisory committee.
     (2) The annual comprehensive analysis and evaluation must consider, but is not limited to:
     (a) Unique and significant financial, legislative, or other relevant developments that may impact fees;
     (b) Current funding for ongoing operating and maintenance automation project costs affecting revenue collection and service delivery;
     (c) Future system requirements including an appropriate sharing of costs between the department, agents, and subagents;
     (d) Beneficial mix of customer service delivery options based on a fee structure commensurate with quality performance standards;
     (e) Appropriate indices projecting state and national growth in business and economic conditions prepared by the United States department of commerce, the department of revenue, and the revenue forecast council for the state of Washington.