HOUSE BILL REPORT

HB 2674

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed House:

February 17, 2014

Title: An act relating to the processing of quick titles by subagents.

Brief Description: Concerning the processing of quick titles by subagents.

Sponsors: Representatives Warnick and Sawyer.

Brief History:

Committee Activity:

Transportation: 2/3/14, 2/4/14 [DP].

Floor Activity:

Passed House: 2/17/14, 97-0.

Brief Summary of Bill

Allows a subagent to process a quick title in accordance with rules that are adopted by the Department of Licensing (DOL).
Removes two requirements currently in statute that must occur prior to a subagent processing quick titles.
Removes a requirement that has been completed by the DOL.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report: Do pass. Signed by 31 members: Representatives Clibborn, Chair; Farrell, Vice Chair; Fey, Vice Chair; Moscoso, Vice Chair; Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Overstreet, Assistant Ranking Minority Member; Bergquist, Fitzgibbon, Freeman, Habib, Hawkins, Hayes, Johnson, Klippert, Kochmar, Moeller, Morris, Muri, Ortiz-Self, Pike, Riccelli, Rodne, Ryu, Sells, Shea, Takko, Tarleton, Walkinshaw, Young and Zeiger.

Staff: Jerry Long (786-7306).

Background:

Substitute House Bill 1046 was enacted in 2011 and implemented a process to print a quick title, which is a certificate of ownership printed at the time of application. Presently, there are 37 locations in Washington where quick titles are produced, with 22 county auditor offices and 15 subagent offices providing the quick title service. During the period of July 1, 2012, through June 30, 2013, there were 21,986 vehicle and 476 vessel quick titles produced.

A $50 fee is charged by the participating county auditor or other agent; $25 is retained by the county treasurer in the same manner as other fees collected by the county auditor, and the remaining $25 is deposited into the Motor Vehicle Fund for a vehicle and the State General Fund for a vessel. If the fee is paid directly to the Department of Licensing (DOL), the entire fee of $50 must be deposited into the Motor Vehicle Fund for a vehicle and into the State General Fund for a vessel.

The application for a quick title may not be used to obtain the first title issued to a vehicle previously designated as a salvage vehicle.

The application for a quick title must be submitted by the owner or owner's representative to the DOL, participating county auditor, or other agent appointed by the Director of the DOL on a form furnished or approved by the DOL.

Subagents are allowed to perform quick title transactions providing that:

the county auditor or agent has provided quick title services in the county in which the subagent is located for at least six months;
the county auditor or other agent has selected the subagent to perform quick title services; and
the DOL has instituted a process in which blank certificates of title can be inventoried.

All applications for a quick title must meet the requirements established by the DOL.

The DOL has instituted security standards and a process by which blank certificates of title can be inventoried.

Summary of Bill:

The bill allows a subagent to process a quick title in accordance with rules that are adopted by the DOL, and removes the following requirements, currently in statute, before a subagent may process a quick title:

The county auditor of the county in which the subagent is located has processed quick titles for a minimum of six months.
The county auditor must approve a request from a subagent in its county to process quick titles.

The bill removes the requirement currently in statute for the DOL to institute a process in which blank certificates of title can be inventoried, since the DOL has a process in place.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) The bill allows more subagents to process quick titles, which is faster and available locally to the public.

The bill has been prepared in conjunction with the county auditors and the DOL.

Some county auditors have no desire to offer quick titles at the county auditor's office, so under current law, the subagents in that county also cannot offer the quick title service. This bill would allow those subagents to process quick titles.

(Opposed) None.

Persons Testifying: Representative Warnick, prime sponsor; and Chester Baldwin and Corry Cavin, Washington Association of Vehicle Subagents.

Persons Signed In To Testify But Not Testifying: None.