AN ACT Relating to certificates of title; amending RCW 46.12.530, 46.12.540, 46.12.555, 46.17.160, 46.68.025, 46.12.675, 88.02.515, 88.02.540, 88.02.640, and 88.02.640; providing an effective date; and providing an expiration date.

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

Sec. 1. RCW 46.12.530 and 2019 c 232 s 18 are each amended to read as follows:

(1) The application for a certificate of title of a vehicle must be made by the owner or owner's representative to the department, county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

(a) A description of the vehicle, including make, model, vehicle identification number, type of body, and the odometer reading at the time of delivery of the vehicle;

(b) The name and address of the person who is to be the registered owner of the vehicle and, if the vehicle is subject to a security interest, the name and address of the secured party; and

(c) Other information the department may require.

(2) The department may require additional information and a physical examination of the vehicle or of any class of vehicles, or either.

(3) The application for a certificate of title must be signed by the person applying to be the registered owner and be sworn to by that person in the manner described under chapter 5.50 RCW. The department shall keep the application in the original, computer, or photostatic form.

(4) The application for an original certificate of title must be accompanied by:

(a) A draft, money order, certified bank check, or cash for all fees and taxes due for the application for certificate of title; and

(b) The most recent certificate of title or other satisfactory evidence of ownership.

(5) Once issued, a certificate of title is not subject to renewal.

(6) Whenever any person, after applying for or receiving a certificate of title, moves from the address named in the application or in the certificate of title issued to him or her, or changes his or her name of record, the person shall, within ((ten))10 days thereafter, notify the department of the name or address change as provided in RCW 46.08.195.

Sec. 2. RCW 46.12.540 and 2010 c 161 s 305 are each amended to read as follows:

(1) The department shall issue ((an electronic record of ownership or a written))a certificate of title if the department is satisfied from the statements on the application that the applicant is the legal owner of the vehicle or otherwise entitled to have a certificate of title in the applicant's name.

(2) Each certificate of title issued by the department must contain:

(a) The date of application;

(b) The certificate of title number assigned to the vehicle;

(c) The name and address of the registered owner and legal owner;

(d) The vehicle identification number;

(e) The mileage reading, if required, as provided by the odometer disclosure statement submitted with the application involving a transfer of ownership;

(f) A notation that the recorded mileage is actual, not actual, or exceeds mechanical limits;

(g) A blank space on the face of the certificate of title for the signature of the registered owner;

(h) Information on whether the vehicle was ever registered and operated as an exempt vehicle or taxicab;

(i) A brand conspicuously shown across its front if indicating that the vehicle has been rebuilt after becoming a salvage vehicle;

(j) The director's signature and the seal of the department; and

(k) Any other description of the vehicle and facts the department may require.

(3) The department shall deliver the registration certificate to the registered owner and the certificate of title to the legal owner, or both to the person who is both the registered owner and legal owner. The certificate of title must be issued as an electronic record of ownership unless the applicant applies for a paper title under the process described in RCW 46.12.555.

Sec. 3. RCW 46.12.555 and 2019 c 232 s 19 are each amended to read as follows:

(1) The application for a ((quick))paper title of a vehicle must be submitted by the owner or the owner's representative to the department, ((participating)) county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

(a) A description of the vehicle, including make, model, vehicle identification number, type of body, and the odometer reading at the time of delivery of the vehicle, when required;

(b) The name and address of the person who is to be the registered owner of the vehicle and, if the vehicle is subject to a security interest, the name and address of the secured party; and

(c) Other information as may be required by the department.

(2) The application for a ((quick))paper title must be signed by the person applying to be the registered owner and be sworn to by that person in the manner described under chapter 5.50 RCW. The department must keep a copy of the application.

(3) The application for a ((quick))paper title must be accompanied by:

(a) All fees and taxes due for an application for a certificate of title, including a ((quick))paper title service fee under RCW 46.17.160; and

(b) The most recent certificate of title or other satisfactory evidence of ownership.

(4) All applications for ((quick))a paper title must meet the requirements established by the department.

(5) For the purposes of this section, "((quick))paper title" means a paper certificate of title. The paper certificate of title must be printed at the time of application((.

(6) The quick title process authorized under this section may not be used to obtain)), except that a paper title is subject to a processing period before a paper title may be issued when the title is the first title issued to a vehicle previously designated as a salvage vehicle as defined in RCW 46.04.514 or as otherwise restricted or prohibited by the department.

(((7)))(6) A subagent may process a ((quick))paper title under this section in accordance with rules adopted by the department.

Sec. 4. RCW 46.17.160 and 2011 c 326 s 2 are each amended to read as follows:

Before accepting an application for a ((quick))paper title of a vehicle under RCW 46.12.555, the department, participating county auditor or other agent, or subagent appointed by the director shall require the applicant to pay a ((fifty dollar quick))$50 paper title service fee in addition to any other fees and taxes required by law. The ((quick))paper title service fee must be distributed under RCW 46.68.025.

Sec. 5. RCW 46.68.025 and 2015 2nd sp.s. c 1 s 1 are each amended to read as follows:

(1) The ((quick))paper title service fee imposed under RCW 46.17.160 must be distributed as follows:

(a) If the fee is paid to the director, the fee must be deposited to the motor vehicle fund established under RCW 46.68.070.

(b) If the fee is paid to the ((participating)) county auditor or other agent appointed by the director, ((twenty-five dollars))$25 must be deposited to the motor vehicle fund established under RCW 46.68.070. The remainder must be retained by the county treasurer in the same manner as other fees collected by the county auditor.

(c) If the fee is paid to a subagent appointed by the director, ((twenty-five dollars))$25 must be deposited to the motor vehicle fund established under RCW 46.68.070. The remaining ((twenty-five dollars))$25 must be distributed as follows: ((Twelve dollars and fifty cents))$12.50 must be retained by the county treasurer in the same manner as other fees collected by the county auditor and ((twelve dollars and fifty cents))$12.50 must be retained by the subagent.

(2) For the purposes of this section, "((quick))paper title" has the same meaning as in RCW 46.12.555.

Sec. 6. RCW 46.12.675 and 2012 c 74 s 14 are each amended to read as follows:

(1) A security interest in a vehicle other than one held as inventory by a manufacturer or a dealer and for which a certificate of title is required is perfected only by:

(a) Complying with the requirements of RCW 46.12.660 or this section;

(b) Receipt by the department, county auditor or other agent, or subagent appointed by the director of:

(i) The existing certificate of title, if any;

(ii) An application for a certificate of title containing the name and address of the secured party; and

(iii) Payment of the required fees.

(2) A security interest is perfected when it is created if the secured party's name and address appear on the most recently issued certificate of title or, if not, it is created when the department, county auditor or other agent, or subagent appointed by the director receives the certificate of title or an application for a certificate of title and the fees required in subsection (1) of this section.

(3) If a vehicle is subject to a security interest when brought into this state, perfection of the security interest is determined by the law of the jurisdiction where the vehicle was when the security interest was attached, subject to the following:

(a) The security interest continues perfected in this state if the name of the secured party is shown on the existing certificate of title issued by that jurisdiction. The name of the secured party must be shown on the certificate of title issued for the vehicle by this state. The security interest continues perfected in this state when the department issues the certificate of title.

(b) If the security interest was not perfected under the law of the jurisdiction where the vehicle was when the security interest was attached, it may be perfected in this state. Perfection begins when the department receives the information and fees required in subsection (1) of this section.

(4)(a) After a certificate of title has been issued, the registered owner or secured party must apply to the department, county auditor or other agent, or subagent appointed by the director for a new certificate of title when a security interest is granted on a vehicle. Within ((ten))10 days after creating a security agreement, the registered owner or secured party must submit:

(i) An application for a certificate of title;

(ii) The certificate of title last issued for the vehicle, or other documentation required by the department; and

(iii) The fee required in RCW 46.17.100.

(b) If satisfied that a certificate of title should be reissued, the department shall change the vehicle record and issue a new certificate of title to the secured party.

(5) A secured party shall release the security interest when the conditions within the security agreement have been met and there is no further secured obligation. The secured party must either:

(a) Assign the certificate of title to the registered owner or the registered owner's designee and send the certificate of title to the department, county auditor or other agent, or subagent appointed by the director with the fee required in RCW 46.17.100 and the fee required in RCW 46.17.160 if a paper title is requested; or

(b) Assign the certificate of title to the person acquiring the vehicle from the registered owner with the registered owner's release of interest.

(6) The department shall issue a new certificate of title to the registered owner when the department receives the release of interest and required fees as provided in subsection (5)(a) of this section. A subagent appointed by the director may remove liens on electronic records.

(7) A secured party is liable for ((one hundred dollars))$100 payable to the registered owner or person acquiring the vehicle from the registered owner when:

(a) The secured party fails to either assign the certificate of title to the registered owner or to the person acquiring the vehicle from the registered owner or apply for a new certificate of title within ((ten))10 days after proper demand; and

(b) The failure of the secured party to act as described in (a) of this subsection results in a loss to the registered owner or person acquiring the vehicle from the registered owner.

Sec. 7. RCW 88.02.515 and 2010 c 161 s 1012 are each amended to read as follows:

(1) The application for a certificate of title of a vessel must be made by the owner or the owner's representative to the department, county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

(a) A description of the vessel, including make, model, hull identification number, and type of body;

(b) The name and address of the person who is to be the registered owner of the vessel and, if the vessel is subject to a security interest, the name and address of the secured party; and

(c) Other information the department may require.

(2) The application for a certificate of title must be signed by the person applying to be the registered owner and be sworn to by that person under penalty of the perjury laws of this state that:

(a) The applicant is the owner or an authorized agent of the owner of the vessel; and

(b) The vessel is free of any claim of lien, mortgage, conditional sale, or other security interest of any person except the person or persons on the application as secured parties.

(3) The application for a certificate of title must be accompanied by:

(a) A draft, money order, certified bank check, or cash for all fees and taxes due for the application for the certificate of title; and

(b) The most recent certificate of title or other satisfactory evidence of ownership.

Sec. 8. RCW 88.02.540 and 2019 c 232 s 27 are each amended to read as follows:

(1) The application for a ((quick))paper title of a vessel must be made by the owner or the owner's representative to the department, ((participating)) county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

(a) A description of the vessel, including make, model, hull identification number, series, and body;

(b) The name and address of the person who is to be the registered owner of the vessel and, if the vessel is subject to a security interest, the name and address of the secured party; and

(c) Other information as may be required by the department.

(2) The application for a ((quick))paper title must be signed by the person applying to be the registered owner and be sworn to by that person in the manner described under chapter 5.50 RCW. The department must keep a copy of the application.

(3) The application for a ((quick))paper title must be accompanied by:

(a) All fees and taxes due for an application for a certificate of title, including a ((quick))paper title service fee under RCW 88.02.640(1); and

(b) The most recent certificate of title or other satisfactory evidence of ownership.

(4) All applications for ((quick))paper title must meet the requirements established by the department.

(5) For the purposes of this section, "((quick))paper title" means a paper certificate of title. The paper certificate of title must be printed at the time of application, except that a paper title is subject to a processing period before a paper title may be issued if restricted or prohibited by the department.

(6) A subagent may process a ((quick))paper title under this section only after (a) the department has instituted a process in which blank certificates of title can be inventoried; (b) the county auditor of the county in which the subagent is located has processed ((quick))paper titles for a minimum of six months; and (c) the county auditor approves a request from a subagent in its county to process ((quick))paper titles.

Sec. 9. RCW 88.02.640 and 2021 c 150 s 2 are each amended to read as follows:

(1) In addition to any other fees and taxes required by law, the department, county auditor or other agent, or subagent appointed by the director must charge the following vessel fees and surcharge:

(2) The ((five dollar))$5 dealer temporary permit fee required in subsection (1) of this section must be credited to the payment of registration fees at the time application for registration is made.

(3) The derelict vessel and invasive species removal fee required in subsection (1) of this section is ((five dollars))$5 and must be distributed as follows:

(a) ((Two dollars))$2 must be deposited in the aquatic invasive species management account created in RCW 77.135.200;

(b) ((One dollar))$1 must be deposited into the aquatic algae control account created in RCW 43.21A.667; and

(c) ((Two dollars))$2 must be deposited in the derelict vessel removal account created in RCW 79.100.100.

(4) In addition to other fees required in this section, an annual derelict vessel removal surcharge of ((one dollar))$1 must be charged with each vessel registration. The surcharge is to address the significant backlog of derelict vessels accumulated in Washington waters that pose a threat to the health and safety of the people and to the environment and must be deposited into the derelict vessel removal account created in RCW 79.100.100.

(5)(a) The amount of the nonresident vessel permit fee is:

(i) For a vessel owned by a nonresident natural person, ((twenty-five dollars))$25; and

(ii) For a nonresident vessel owner that is not a natural person, the fee is equal to:

(A) ((Twenty-five dollars))$25 per foot for vessels between ((thirty))30 and ((ninety-nine))99 feet in length;

(B) ((Thirty dollars))$30 per foot for vessels between ((one hundred))100 and ((one hundred twenty))120 feet in length; and

(C) ((Thirty-seven dollars and fifty cents))$37.50 per foot for vessels between ((one hundred twenty-one))121 and ((two hundred))200 feet in length. The fee must be multiplied by the extreme length of the vessel in feet, rounded up to the nearest whole foot.

(b) The fee must be paid by the vessel owner to the department. Any moneys remaining from the fee after the payment of costs to administer the permit must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.650.

(c) In addition to the applicable fees under this section, vessel owners who obtain a nonresident vessel permit for the purposes of chartering their vessel with a captain or crew are subject to use tax as provided in RCW 82.12.799.

(6) The ((thirty dollar))$30 vessel visitor permit fee must be distributed as follows:

(a) ((Five dollars))$5 must be deposited in the derelict vessel removal account created in RCW 79.100.100;

(b) The department may keep an amount to cover costs for providing the vessel visitor permit;

(c) Any moneys remaining must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.650; and

(d) Any fees required for licensing agents under RCW 46.17.005 are in addition to any other fee or tax due for the titling and registration of vessels.

(7)(a) The ((fifty dollar quick))$50 paper title service fee must be distributed as follows:

(i) If the fee is paid to the director, the fee must be deposited to the general fund.

(ii) If the fee is paid to the participating county auditor or other agent appointed by the director, ((twenty-five dollars))$25 must be deposited to the general fund. The remainder must be retained by the county treasurer in the same manner as other fees collected by the county auditor.

(iii) If the fee is paid to a subagent appointed by the director, ((twenty-five dollars))$25 must be deposited to the general fund. The remaining ((twenty-five dollars))$25 must be distributed as follows: ((Twelve dollars and fifty cents))$12.50 must be retained by the county treasurer in the same manner as other fees collected by the county auditor and ((twelve dollars and fifty cents))$12.50 must be retained by the subagent.

(b) For the purposes of this subsection, "((quick))paper title" has the same meaning as in RCW 88.02.540.

(8) The department, county auditor or other agent, or subagent appointed by the director shall charge the service fee under subsection (1)(m) of this section beginning January 1, 2016.

Sec. 10. RCW 88.02.640 and 2017 3rd sp.s. c 17 s 104 are each amended to read as follows:

(1) In addition to any other fees and taxes required by law, the department, county auditor or other agent, or subagent appointed by the director shall charge the following vessel fees and surcharge:

(2) The ((five dollar))$5 dealer temporary permit fee required in subsection (1) of this section must be credited to the payment of registration fees at the time application for registration is made.

(3) The derelict vessel and invasive species removal fee required in subsection (1) of this section is ((five dollars))$5 and must be distributed as follows:

(a) ((Two dollars))$2 must be deposited in the aquatic invasive species management account created in RCW 77.135.200;

(b) ((One dollar))$1 must be deposited into the aquatic algae control account created in RCW 43.21A.667; and

(c) ((Two dollars))$2 must be deposited in the derelict vessel removal account created in RCW 79.100.100.

(4) In addition to other fees required in this section, an annual derelict vessel removal surcharge of ((one dollar))$1 must be charged with each vessel registration. The surcharge is to address the significant backlog of derelict vessels accumulated in Washington waters that pose a threat to the health and safety of the people and to the environment and must be deposited into the derelict vessel removal account created in RCW 79.100.100.

(5) The ((twenty-five dollar))$25 nonresident vessel permit fee must be paid by the vessel owner to the department for the cost of providing the identification document by the department. Any moneys remaining from the fee after the payment of costs must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.650.

(6) The ((thirty dollar))$30 vessel visitor permit fee must be distributed as follows:

(a) ((Five dollars))$5 must be deposited in the derelict vessel removal account created in RCW 79.100.100;

(b) The department may keep an amount to cover costs for providing the vessel visitor permit;

(c) Any moneys remaining must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.650; and

(d) Any fees required for licensing agents under RCW 46.17.005 are in addition to any other fee or tax due for the titling and registration of vessels.

(7)(a) The ((fifty dollar quick))$50 paper title service fee must be distributed as follows:

(i) If the fee is paid to the director, the fee must be deposited to the general fund.

(ii) If the fee is paid to the participating county auditor or other agent appointed by the director, ((twenty-five dollars))$25 must be deposited to the general fund. The remainder must be retained by the county treasurer in the same manner as other fees collected by the county auditor.

(iii) If the fee is paid to a subagent appointed by the director, ((twenty-five dollars))$25 must be deposited to the general fund. The remaining ((twenty-five dollars))$25 must be distributed as follows: ((Twelve dollars and fifty cents))$12.50 must be retained by the county treasurer in the same manner as other fees collected by the county auditor and ((twelve dollars and fifty cents))$12.50 must be retained by the subagent.

(b) For the purposes of this subsection, "((quick))paper title" has the same meaning as in RCW 88.02.540.

(8) The department, county auditor or other agent, or subagent appointed by the director shall charge the service fee under subsection (1)(m) of this section beginning January 1, 2016.

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