WSR 00-05-014

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed February 7, 2000, 11:17 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 00-01-098.

Title of Rule: Dishonored checks.

Purpose: To clarify the collection and handling of dishonored checks for vehicle/title transaction, motor vehicle fuel tax, special fuel tax, aircraft fuel tax and reciprocity and proration.

Statutory Authority for Adoption: RCW 46.01.110, 82.36.435, 82.38.260, 82.42.040, 46.87.010(2).

Summary: Each of these sections clarifies how dishonored checks are handled and what actions the department will take in the event of a dishonored check under each circumstance.

Reasons Supporting Proposal: There has been some confusion surrounding the handling of these issues and clarification was needed.

Name of Agency Personnel Responsible for Drafting: Pat Zlateff, Highways-Licenses Building, Olympia, 902-3718; Implementation and Enforcement: Pat Zlateff and Jeff Beach, Highways-Licenses Building, Bristol Court, Olympia, 902-3718.

Name of Proponent: Department of Licensing, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: WAC 308-04-020, mandatory collection of DHC fee; WAC 308-72-720, clarify DHC procedure for motor vehicle fuel taxes; WAC 308-77-290, clarify DHC procedure for special fuel taxes; WAC 308-78-100, clarify DHC procedure for aircraft fuel taxes; WAC 308-91-150, clarify DHC procedure for proportional registration fees.

Proposal Changes the Following Existing Rules: WAC 308-04-020, changes permissive language to mandatory collection of $25 for a handling fee; and WAC 308-91-150, completely rewritten to improve clarity and to define procedures.

No small business economic impact statement has been prepared under chapter 19.85 RCW. These are not fees for doing business, but penalty charges for dishonored checks. These charges can be avoided by not tendering checks that become dishonored.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Department of Licensing is exempt from RCW 34.05.328.

Hearing Location: Highways-Licenses Building, 1125 Washington Street S.E., Room 107, Olympia, WA 98507-9020, on March 28, 2000, at 10 a.m.

Assistance for Persons with Disabilities: Contact Pat Zlateff by March 23, 2000, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Pat Zlateff, Title and Registration, 1125 Washington Street S.E., Olympia, WA 98507-9020, fax (360) 664-0831, by March 23, 2000.

Date of Intended Adoption: March 28, 2000.

February 7, 2000

Walt Fahrer

Rules Coordinator

OTS-3781.2


AMENDATORY SECTION(Amending WSR 99-01-104, filed 12/17/98, effective 1/17/99)

WAC 308-04-020
((Reasonable)) Handling fee for dishonored checks in payment of vehicle licenses.

Whenever registrations, licenses, or permits relating to the licensing or registration of vehicles or vessels have been paid for by checks to county auditors, agents, and subagents appointed or approved by the director pursuant to RCW 46.01.140, if the check has been dishonored by nonacceptance, stop payment, or nonpayment, a handling fee, in ((an amount not to exceed)) the amount of twenty-five dollars ((may)) shall be assessed for each such instrument. County auditors, agents, and subagents, may collect restitution, and where they have collected restitution may retain the reasonable handling fee.

[Statutory Authority: RCW 46.01.110 and 43.24.023. 99-01-104, 308-04-020, filed 12/17/98, effective 1/17/99. Statutory Authority: RCW 46.01.230(3). 87-21-014 (Order TL/RG 38), 308-04-020, filed 10/9/87.]

OTS-3783.1


NEW SECTION
WAC 308-72-720
Dishonored checks.

(1) What will happen if my check becomes dishonored? A dishonored check represents failure to pay motor vehicle fuel taxes, fees and/or penalties and interest when due, and the department will enforce such motor fuel licensing and taxing laws as are necessary to recover the unpaid taxes and fees when they become due and payable.

(2) What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, or money order.

(3) Are there any additional fees charged for a dishonored check (DHC)? Yes, a handling fee shall be assessed by the department for each check dishonored by the financial institution.

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OTS-3784.1


NEW SECTION
WAC 308-77-290
Dishonored checks.

(1) What will happen if my check becomes dishonored? A dishonored check represents failure to pay special fuel taxes, fees and/or penalties and interest when due, and the department will enforce such special fuel licensing and taxing laws as are necessary to recover the unpaid taxes and fees when they become due and payable.

(2) What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, or money order.

(3) Are there any additional fees charged for a dishonored check (DHC)? Yes, a handling fee shall be assessed by the department for each check dishonored by the financial institution.

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OTS-3785.1


NEW SECTION
WAC 308-78-100
Dishonored checks.

(1) What will happen if my check becomes dishonored? A dishonored check represents failure to pay aircraft fuel taxes, fees and/or penalties and interest when due, and the department will enforce such aircraft fuel licensing and taxing laws as are necessary to recover the unpaid taxes and fees when they become due and payable.

(2) What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, or money order.

(3) Are there any additional fees charged for a dishonored check (DHC)? Yes, a handling fee shall be assessed by the department for each check dishonored by the financial institution.

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OTS-3782.1


AMENDATORY SECTION(Amending WSR 95-05-045, filed 2/10/95, effective 3/13/95)

WAC 308-91-150
((Form of payment required -- ))Dishonored checks.

(((1) Assessments for proportional registration fees/taxes due the state of Washington shall be paid in United States funds unless guaranteed payment is specifically required by the department.

(2) Any registrant who tenders a check that is subsequently dishonored by the bank or other financial institution upon whom it was drawn, may be required to tender all subsequent payments in person by cash or by cashier's check, certified check, traveler's check, or money order.

(3) A handling fee in the amount of fifteen dollars shall be assessed the drawer for each check dishonored by the bank or other financial institution upon whom it was drawn and interest on the amount of each check shall accrue from the date of dishonor at the rate of twelve percent per annum. The interest and handling fee shall be deposited into the highway safety fund.)) (1) What will happen if my check becomes dishonored? A dishonored check represents failure to pay proportional registration, fees and/or penalties and interest when due, and the department will enforce such proportional registration licensing and taxing laws as are necessary to recover the unpaid fees when they become due and payable.

(2) What form of payment does the department require for dishonored checks? Any registrant who tenders a check that is subsequently dishonored by a financial institution upon which it was drawn, may be required to tender all subsequent payments in certified funds, i.e., cash, cashier's check, certified check, traveler's check, or money order.

(3) Are there any additional fees charged for a dishonored check (DHC)? Yes, a handling fee shall be assessed by the department for each check dishonored by the financial institution.

[Statutory Authority: RCW 46.87.010(1) and 46.87.080(7). 95-05-045, 308-91-150, filed 2/10/95, effective 3/13/95. Statutory Authority: RCW 46.87.010(2). 94-13-012, 308-91-150, filed 6/2/94, effective 7/3/94. Statutory Authority: RCW 46.01.110 and 46.87.010(2). 91-06-093, 308-91-150, filed 3/6/91, effective 4/6/91. Statutory Authority: RCW 46.87.010(2), 46.01.110 and chapters 46.87 and 46.85 RCW. 88-06-061 (Order PFT 8803), 308-91-150, filed 3/2/88.]

Washington State Code Reviser's Office