H-3327              _______________________________________________

                                                   HOUSE BILL NO. 2598

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representative K. Wilson

Read first time 1/17/90 and referred to Committee on Transportation.

AN ACT Relating to the sale or transfer of motor vehicles; and amending RCW 46.12.101 and 46.12.102.

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

        Sec. 1.  Section 7, chapter 140, Laws of 1967 as last amended by section 1, chapter 127, Laws of 1987 and RCW 46.12.101 are each amended to read as follows:

          A transfer of ownership in a motor vehicle is perfected by compliance with the requirements of this section.

          (1) If an owner transfers his or her interest in a vehicle, other than by the creation of a security interest, the owner shall, at the time of the delivery of the vehicle, execute an assignment to the transferee and inscribe in ink the number of miles indicated on the odometer in the respective spaces provided therefor on the certificate of title or as the department prescribes, and cause the certificate of title and assignment to be transmitted to the transferee.  Within five days, exclusive of Saturdays, Sundays, and state and federal holidays, the owner shall notify the department , in writing, on the appropriate form, of the date of the sale or transfer ((giving the date thereof)), the name and address of the owner and of the transferee, and such description of the vehicle , including the vehicle identification number, the license plate number, or both, as may be required ((in the appropriate form provided for that purpose)) by the department.

          (2) Except as provided in RCW 46.12.120 the transferee shall within fifteen days after delivery to the transferee of the vehicle, execute the application for a new certificate of ((ownership)) title in the same space provided therefor on the certificate or as the department prescribes, and cause the certificate((s)) and application to be transmitted to the department.

          (3) Upon request of the owner or transferee, a secured party in possession of the certificate of ((ownership)) title shall, unless the transfer was a breach of its security agreement, either deliver the certificate to the transferee for transmission to the department or, when the secured party receives the owner's assignment from the transferee, it shall transmit the transferee's application for a new certificate, the existing certificate, and the required fee to the department.  Compliance with this section does not affect the rights of the secured party.

          (4) If a security interest is reserved or created at the time of the transfer, the certificate of ((ownership)) title shall be retained by or delivered to the person who becomes the secured party, and the parties shall comply with the provisions of RCW 46.12.170.

          (5) If the purchaser or transferee fails or neglects to make application to transfer the certificate of ((ownership)) title and license registration within fifteen days after the date of delivery of the vehicle, he or she shall on making application for transfer be assessed a twenty-five dollar penalty on the sixteenth day and two dollars additional for each day thereafter, but not to exceed one hundred dollars.  The director may by rule establish conditions under which the penalty will not be assessed when an application for transfer is delayed for reasons beyond the control of the purchaser.  Conditions for not assessing the penalty may be established for but not limited to delays caused by:

          (a) The department requesting additional supporting documents;

          (b) Extended hospitalization or illness of the purchaser;

          (c) Failure of a legal owner to release his or her interest;

          (d) Failure, negligence, or nonperformance of the department, auditor, or subagent.

Failure or neglect to make application to transfer the certificate of ((ownership)) title and license registration within forty-five days after the date of delivery of the vehicle is a misdemeanor.

          (6) Upon receipt of an application for reissue or replacement of a certificate of ((ownership)) title and transfer of license registration, accompanied by the endorsed certificate of ((ownership)) title or other documentary evidence as is deemed necessary, the department shall, if the application is in order and if all provisions relating to the certificate of ((ownership)) title and license registration have been complied with, issue new certificates of title and license registration as in the case of an original issue and shall transmit the fees together with an itemized detailed report to the state treasurer, to be deposited in the motor vehicle fund.

          (7) Once each quarter the department shall report to the department of revenue a list of those vehicles for which a seller's report has been received but no transfer of title has taken place.

        Sec. 2.  Section 2, chapter 39, Laws of 1984 and RCW 46.12.102 are each amended to read as follows:

          An owner who has made a bona fide sale or transfer of a vehicle and has delivered possession of it to a  purchaser shall not by reason of any of the provisions of this title be deemed the owner of the vehicle so as to be subject to civil liability or criminal liability for the operation of the vehicle thereafter by another person when the owner has ((also fulfilled)) both ((of the following requirements)):

          (1) ((When he has)) Made proper endorsement and delivery of the certificate of ((ownership)) title and has delivered the certificate of registration as provided in this chapter; and

          (2) ((When he has)) Delivered to the department either the notice as provided in RCW 46.12.101(1) or appropriate documents for registration of the vehicle pursuant to the sale or transfer.