SENATE BILL REPORT

HB 255

BYRepresentatives Cooper, Schmidt, Walk, P. King, L. Smith and Dellwo; by request of Department of Licensing

Permitting waiver of penalty assessments for late transfer of vehicle ownership.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 24, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, DeJarnatt, Garrett, Halsan, Johnson, Nelson, Patterson, Sellar, von Reichbauer.

Senate Staff:Cathy Mayo (786-7304)

                  March 25, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 24, 1987

BACKGROUND:

The transfer of ownership of a motor vehicle requires the owner to execute an assignment transfer to the purchaser. Vehicle mileage is recorded on the certificate of title.  The seller must notify the Department of Licensing that the transfer of ownership or sale of the vehicle has taken place and provide the names and addresses of both the seller and purchaser.  The purchaser has fifteen days from the date of the sale to apply for a new certificate of ownership.  If a secured party has an interest in the vehicle, it shall provide the certificate to the Department unless there was a breach in the security agreement with the owner.

If the purchaser fails to transfer the certificate of ownership and license registration within fifteen days after receiving the vehicle, a penalty assessment of twenty-five dollars is levied on the sixteenth day plus an additional two dollars for each additional day.  This penalty is not to exceed one hundred dollars.  Failure to transfer within forty-five days after delivery of the vehicle is a misdemeanor.

The Department will issue a new certificate of title and license registration if all filing requirements are in order. Fees collected by the Department are deposited in the Motor Vehicle Fund.  The Department of Licensing is required periodically to submit to the Department of Revenue a list of seller's reports of which no transfer of title has occurred.

SUMMARY:

References to all persons are made gender neutral.  The Director of the Department of Licensing is authorized to waive late penalty assessments on certificates of ownership and license registration applications for conditions which are beyond the control of the vehicle purchaser.  Conditions for waiving penalty assessments may be established by rule and are to include the Department's request for additional material, hospitalization or illness of the purchaser, failure of legal owner to release interest in the motor vehicle, or fault of the Department or its agents.  Other conditions deemed appropriate may also be included in the rules.

Penalty periods begin when the request for transfer of the certificate of ownership and license registration is not made within fifteen days after the delivery of the vehicle to the purchaser.

Certificates of ownership and license registration replacements will be processed by the Department the same as a reissue.  The Department will specify necessary documentation to be furnished by the applicant for support of a replacement or reissue application.

Fiscal Note:      none requested

Senate Committee - Testified: Nancy Kelly, Department of Licensing