WSR 98-05-068

PROPOSED RULES

DEPARTMENT OF LICENSING

[Filed February 17, 1998, 10:11 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 97-21-105.

Title of Rule: Chapter 308-93 WAC, Vessel registration and certificate of title.

Purpose: (1) To clarify the requirements for the general provisions for signatures; and (2) to meet the criteria set forth in Governor Locke's Executive Order 97-02.

Statutory Authority for Adoption: RCW 88.02.070.

Summary: Repealing WAC 308-93-430 Release of interest and 308-93-480 Certification of signature--Departmental employees; and clarifying WAC 308-93-440 Lack of proper release, 308-93-450 Signature of registered owner on application--Exceptions, 308-93-460 Releasing interest, and 308-93-470 Certification of signature.

Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting: Patrick Zlateff, 1125 Washington Street S.E., Olympia, (360) 902-3718; Implementation: Nancy Kelly, 1125 Washington Street S.E., Olympia, (360) 902-3754; and Enforcement: Eric Anderson, 1125 Washington Street S.E., Olympia, (360) 902-4045.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Chapter 308-93 WAC provides requirements for signature purposes when applying or transferring ownership in a vessel. The purpose is to ensure proper documentation when applying for certificate of ownership and/or transferring interest in a vessel. The anticipated effects will be a clarification of the above mentioned requirements.

Proposal Changes the Following Existing Rules: Clarify sections needed and repeal those no longer required.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required pursuant to RCW 19.85.030 (1)(a). The proposed rule making does not impose more than a minor cost on businesses in an industry.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The content of the proposed rules are explicitly and specifically dictated by statute.

Hearing Location: Highways-Licenses Building, Conference Room 303, 1125 Washington Street, Olympia, WA 98507, on March 26, 1998, at 2:00 p.m.

Assistance for Persons with Disabilities: Contact Pat Zlateff by March 25, 1998, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Patrick Zlateff, Rules Coordinator, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, FAX (360) 664-0831, by March 25, 1998.

Date of Intended Adoption: April 8, 1998.

February 17, 1998

Nancy S. Kelly, Administrator

Title and Registration Services

AMENDATORY SECTION (Amending WSR 96-03-046, filed 1/11/96, effective 2/11/96)

WAC 308-93-440 ((Lack of proper release.)) Ownership in doubt. ((If the registered or legal owner(s), as shown in the records of the department or a foreign state issuing the last certificate of ownership and/or registration of a vessel, has not released his/her interest in the vessel, by endorsement on the certificate of ownership or by a satisfactory release of interest, the following must be attached to an application for Washington certificate of ownership:

(1) Proper documentation authorized in WAC 308-93-430 to be used in lieu of a release by the registered or legal owner; or

(2) A bond in accordance with WAC 308-93-210; or

(3) The following, if satisfactory to the department:

(a) An affidavit by the applicant stating the reasons the person is unable to obtain a release of interest from the registered and/or legal owner(s) of record; and

(b) Evidence of ownership of the vessel by the applicant such as, but not limited to, a bill of sale; and

(c) Evidence of attempts to locate the owner(s) of record such as, but not limited to, copies of correspondence sent by registered or certified mail, return receipt requested to the last known address of the owner.

(4) For purposes of this section, an individual purchaser or transferee of a vessel may request the name and address of the owner(s) of record for that vessel by satisfying subsection (3)(a) and (b) of this section and completing a form provided by the department. When satisfied the request is for obtaining proper release of interest, the department may disclose the name(s) and address of the last owner(s) of record for that vessel.)) When an applicant is unable to provide an acceptable release of interest as defined in WAC 308-93-460 from the owner(s) of record for a vessel, the applicant may:

(1) Petition any district or superior court of any county of this state to receive a judgment awarding ownership of the vessel. Such judgment is required if ownership of the vessel is contested after the applicant makes application for ownership in doubt and before the three-year ownership in doubt period has lapsed; or

(2) Apply for registration only or bonded certificate of ownership as described in this rule if a judgment is unnecessary as described in subsection (1) of this section. The applicant shall:

(a) Provide evidence of ownership of the vessel such as, but not limited to, a bill of sale;

(b) Make a reasonable effort to determine ownership of the vessel by writing to the agency that issued the last known certificate of ownership or registration. For purposes of this section, an individual purchaser or transferee of a vessel may request the name and address of the owner(s) of record for that vessel from the department by satisfying (b)(i) or (ii) of this subsection and completing a form approved by the department. When satisfied the request is for obtaining proper release of interest, the department may disclose the name(s) and address of the last owner(s) of record for that vessel.

(i) If a record is found, the applicant shall send a certified or registered letter, return receipt requested, to each owner and secured party of record at the address shown on the last record. The letter shall contain information regarding the sender's claim to ownership or a notarized or certified release of interest.

(ii) If no record is found, or the previous owner did not respond within fifteen days after acknowledged receipt or the letter was returned unclaimed, the applicant shall provide an affidavit of Request for Bonded Title or Registration without Title form explaining how the vessel was acquired.

(c) Determine whether to bond the vessel and apply for a certificate of ownership or apply for registration only. A bond is required if the seller of the vessel is a Washington state vessel dealer or in lieu of the judgment described in subsection (1) of this section if there is evidence of a security agreement on the last record as found in (b) of this subsection. A bond shall be for a period of three years from the date of application and be in the amount of one and one-half times the value of the vessel as determined by one of the following:

(i) A statement from a vessel dealer showing the average retail value of that year, make and model of the vessel in average condition; or

(ii) Information provided by any guide book or other publication of recognized standing in the vessel industry; or

(iii) An agreement reached between the applicant and an authorized department agent or employee.

(d) Apply to the department after the three-year bond or registration only period has lapsed, or submit the proper endorsement on the certificate of ownership or a satisfactory release of interest. The department shall, upon proper application, issue a certificate of ownership without the bond notation.

(e) Upon transferring ownership during the three-year ownership in doubt period, provide the transferee with a notarized or certified release of interest. The new owner may either provide a judgment as described in subsection (1) of this section or shall apply to the department for ownership in doubt as described in subsection (2) of this section and complete the time remaining on the previous ownership in doubt period.

[Statutory Authority: RCW 88.02.070, 88.02.100 and 46.12.380. 96-03-046, 308-93-440, filed 1/11/96, effective 2/11/96. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-440, filed 11/18/83.]

AMENDATORY SECTION (Amending WSR 92-24-035, filed 11/25/92, effective 12/26/92)

WAC 308-93-450 Signature of ((registered)) owner on application--Exceptions. ((On an)) All vessel owners are required to sign the application for ((an original, reissue, or transfer of)) certificate of ((title, the signature of each registered owner of the vessel is required)) ownership except:

(1) When the application is for the sole purpose of removing a ((legal owner)) secured party of record from the certificate of ((title when that legal owner's security interest has been satisfied in the vessel)) ownership;

(2) When authorized supportive documentation is used in lieu of the signature or signatures;

(3) When the legal owner applies for a duplicate ((title)) certificate of ownership;

(4) When there is a statutory authorized lien filed by a government agency ((to place a lien)) against the vessel ((as a secured party));

(5) ((When ownership is transferred with an affidavit of repossession; or

(6))) When an existing legal owner's perfected security interest is transferred to another party and the new ((legal owner)) secured party is perfecting their security interest ((and removing the existing legal owner. Evidence or documentation of the secured interest transfer must be provided)).

(6) Only one owner's signature is required when:

(a) The last certificate of ownership was issued in another jurisdiction; and

(b) The last certificate of ownership shows multiple registered owners; and

(c) Ownership is not changing.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 92-24-035, 308-93-450, filed 11/25/92, effective 12/26/92. Statutory Authority: 1985 c 258. 85-23-066 (Order TL-RG-19), 308-93-450, filed 11/19/85. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-450, filed 11/18/83.]

AMENDATORY SECTION (Amending WSR 93-14-082, filed 6/30/93, effective 7/31/93)

WAC 308-93-460 ((Releasing)) Release of interest. (((1) Any person releasing legal or registered owner interest in a vessel shall sign the release of interest provided on the certificate of ownership issued by the department or a previous jurisdiction, or a release of interest document approved by the department.

(2) Signatures releasing owner interest on approved documents other than the certificate of ownership must be certified in accordance with WAC 308-93-470.

(3) A release of interest is not required from one identified as a lessee.

(4) A valid marine document, issued by the United State Coast Guard, Documentation Office is acceptable in lieu of release of interest signatures on the certificate of ownership.

(5) When a vessel is removed from being marine documented, a copy of the removal letter from the United States Coast Guard, Documentation Office or a certified copy of the document abstract from the United States Coast Guard, Documentation Office showing removal from being documented and a release of interest document, approved by the department, with notarized signatures of the former owners is acceptable evidence for release of interest by the former owners.)) (1) Vessel owner(s) and secured parties who intend to release interest in a vessel shall:

(a) Sign the release of interest provided on the certificate of ownership issued by the department; or

(b) Sign a release of interest document or form approved by the department.

(2) In lieu of subsection (1)(a) and (b) of this section, secured parties who intend to release their interest in a vessel may provide:

(a) Their properly completed official lien release form; or

(b) A release of interest on their official letterhead, if the secured party is a business entity.

(3) If the Washington certificate of ownership is a paperless title, the secured party may release their interest electronically or by signing an affidavit in lieu of title. If the affidavit in lieu of title is printed at their business location, the signature need not be notarized.

(4) Signatures releasing owner interest on department approved documents other than the certificate of ownership must be notarized or certified in accordance with WAC 308-93-470. Signatures releasing interest on the certificate of ownership issued by the department or another jurisdiction do not need to be notarized or certified.

(5) Secured parties who are businesses do not need to have their signatures notarized or certified when releasing interest in a vessel in accordance with subsection (2)(a) or (b) of this section if the current certificate of ownership is submitted with an application for a new certificate of ownership.

(6) A release of interest is not required:

(a) From an owner identified as a lessee; or

(b) If a valid marine document has been issued by or applied for from the United States Coast Guard Documentation Office; or

(c) When other appropriate documents are submitted in lieu of the release of interest. Such documents may include, but are not limited to, a certified or notarized: Bill of sale, affidavit in lieu of title with the release of interest portion properly completed, release of interest form, affidavit of loss of title with the release of interest portion properly completed, or letter of release.

(7) If a vessel is documented, a United States Coast Guard abstract may be used to release the interest of the secured party for a vessel registered in Washington.

(8) Secured parties who intend to release interest on a vessel that has a marine document issued by the United States Coast Guard, Documentation Office shall provide:

(a) Their properly completed official lien release form; or

(b) A release of interest on their official letterhead, if the secured party is a business entity;

(c) Provide a certified copy of the satisfaction of Preferred Marine Mortgage;

(d) Provide a certified copy of the document abstract from the United States Coast Guard, Documentation Office showing the lien has been satisfied.

(9) When a vessel is removed from being marine documented, the owner shall provide:

(a) A copy of the removal letter from the United States Coast Guard, Documentation Office; or

(b) Documentation described in subsection (8) of this section; and

(c) If ownership is changing, approved releases of interest as described in this rule.

[Statutory Authority: RCW 88.02.070 and [88.02].100. 93-14-082, 308-93-460, filed 6/30/93, effective 7/31/93. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-460, filed 11/18/83.]

AMENDATORY SECTION (Amending Order 736-DOL, filed 11/18/83)

WAC 308-93-470 Certification of signatures. ((The signature of every applicant to be shown on the certificate of title as the registered owner and of other signatures, as required, shall be subscribed to and sworn to by that person before a notary public, county auditor, deputy auditor, an authorized agent approved by the director of licensing, an agent appointed by the director of licensing, an employee or appointee of either type or agent, or an employee of the department of licensing authorized by the director to certify to an applicant's signature. Approved identification of the person signing shall be required.)) (1) Signatures shall be notarized by a notary public or certified by agents and subagents appointed by the director to conduct vessel title and registration activities on behalf of the department. The certification must include the signature and the county, office, and operator numbers of the person certifying the signature. Signatures may also be certified by one of the following:

(a) Employees authorized by the director to certify signatures. These employees are:

(i) Deputy director; and

(ii) Assistant director for vehicle services; and

(iii) Administrator and managers of the division primarily responsible for vessel title and registration; and

(iv) Persons assigned to liaison duties between the department and its agents and subagents; and

(v) Persons assigned the responsibility of accepting title and registration applications at the department's offices; and

(vi) Persons assigned the responsibility for investigating vessel dealer activities; and

(b) Persons named on a Washington vessel dealer's bond, filed with the department, if the vessel is sold by that licensed vessel dealer. The certification must include the signature, title, and dealer number of the person certifying the signature.

(2) The person certifying the signatures shall require proof of identification. Approved identification is:

(a) Driver's license; or

(b) Any photo identification card; or

(c) Any two of the following:

(i) A nationally or regionally recognized credit card (signed);

(ii) A signed ID card issued by a city, county, state or federal government agency;

(iii) Any certificate or other document issued by a government agency for the purpose of establishing identity; or

(d) Other documentation satisfactory to the person certifying the signature.

[Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-470, filed 11/18/83.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 308-93-430 Release of interest.