WSR 01-08-022

PERMANENT RULES

DEPARTMENT OF LICENSING


[ Filed March 27, 2001, 12:36 p.m. ]

Date of Adoption: March 23, 2001.

Purpose: Meet criteria supporting Governor Locke's Executive Order 97-02.

Citation of Existing Rules Affected by this Order: Amending 5 [4 WAC 308-56A-021, 308-56A-065, 308-56A-310, and 308-93-390].

Statutory Authority for Adoption: RCW 46.01.110, 88.02.070.

Other Authority: RCW 88.02,100 [88.02.100].

Adopted under notice filed as WSR 01-03-072 on January 16, 2001.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 5 [4], Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 5 [4], Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.

March 21, 2001

Fred Stephens

Director

OTS-4615.2


AMENDATORY SECTION(Amending WSR 00-20-065, filed 10/3/00, effective 11/3/00)

WAC 308-56A-021   Assessment criteria for penalty fee.   (1) What is the penalty fee? When a used vehicle with a Washington certificate of ownership is sold, the purchaser has fifteen days to transfer the vehicle ownership into their name. If they wait until the 16th day or later from the date of sale, a penalty fee may be assessed as described in RCW 46.16.101(6).

(2) Are there exceptions ((to)) when a penalty fee ((being)) may be assessed ((for late application)) when applying for certificate of ownership ((beginning)) on the 16th day from the date of sale or later as described in RCW 46.12.101(6)? Yes, if:

(a) The vehicle was ((received by)) delivered to the purchaser after the date of sale indicated on the supporting documents;

(b) There are conflicting dates on supporting documents;

(c) There is no date on the certificate of ownership or other supporting documents;

(d) The date on the certificate of ownership has been altered;

(e) The purchaser is incarcerated or sequestered by a judiciary system;

(f) The purchaser files a seller's report of sale thinking they have filed an application to transfer certificate of ownership;

(g) ((A)) The purchaser ((fails to transfer ownership prior to selling the vehicle and the applicant)) of a vehicle sells it before transferring ownership into their name and the new purchaser can prove they ((have)) purchased the vehicle within fifteen days of making application; or

(h) The director determines other reasons are valid.

Note: Subsection (2)(a) through (((h))) (g) of this section require ((the applicant to sign)) an affidavit attesting to the actual date of delivery and reason for exception to the penalty.
(((2))) (3) When are penalty fees for late application for certificate of ownership not assessed? Penalty fees are not assessed for late application for certificate of ownership under the following conditions:

(a) The vehicle is not motorized;

(b) The vehicle is sold by a Washington dealer (dealer report of sale box on the application is completed);

(c) A Washington record cannot be found;

(d) Department of licensing records indicate the vehicle has been destroyed;

(e) The vehicle is being titled as home made or assembled for the first time;

(f) The vehicle is acquired as a result of:

(i) Inheritance or community property;

(ii) Divorce settlement;

(iii) Other legal action affecting ownership of the vehicle;

(iv) Lease buyout;

(g) The vehicle is a snowmobile; or

(h) The director determines other reasons are valid.

[Statutory Authority: RCW 46.01.110 and 46.12.101. 00-20-065, 308-56A-021, filed 10/3/00, effective 11/3/00; 98-12-099, 308-56A-021, filed 6/3/98, effective 7/4/98. Statutory Authority: RCW 46.01.110 and 46.12.101 as amended by 1987 c 127 1. 87-21-012 (Order TL/RG/36), 308-56A-021, filed 10/9/87.]


AMENDATORY SECTION(Amending WSR 99-08-064, filed 4/5/99, effective 5/6/99)

WAC 308-56A-065   Vehicles held in trust.   (1) How is a trust((, established under chapter 11.98 RCW,)) shown on a certificate of ownership? Owners who choose to designate the trust on a certificate of ownership may:

(a) Show the registered owner name with the designation trustee;

(b) Show the registered owner name with the designation trustee followed by the name of the trust as one owner. If necessary, the name of the trust will be abbreviated to comply with the department's data field size constraints on the automated vehicle field system and space limitations on the certificate of ownership; or

(c) The name of the trust only.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? You will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees. Trusts established under chapter 23.90 RCW must also provide notarized/certified documentation from the secretary of state showing the trust is registered with the state of Washington.

(3) If a vehicle is titled in the name of a trust, who represents the trust for title transactions? ((The)) Any trustee ((shown on the certificate of ownership)) designated in the trust document represents the trust on all vehicle transactions with the department ((until such time as the)) unless that trustee is replaced or the trust is terminated.

(4) What is required when a successor trustee is appointed? If the name of the trustee who has been succeeded, is shown on the certificate of ownership the successor trustee must apply for a new certificate of ownership and provide documentation appointing them as trustee.

(5) What is required when a trust is terminated? ((The beneficiary)) The new owner of the vehicle must apply for a new certificate of ownership under chapter 46.12 RCW.

[Statutory Authority: RCW 46.01.110. 99-08-064, 308-56A-065, filed 4/5/99, effective 5/6/99. Statutory Authority: RCW 46.01.110 and 46.12.030. 97-03-076, 308-56A-065, filed 1/15/97, effective 2/15/97; Order MV 208, 308-56A-065, filed 7/31/74.]


AMENDATORY SECTION(Amending WSR 99-13-150, filed 6/21/99, effective 7/22/99)

WAC 308-56A-310   Personal property lien -- Chattel, landlord.   (1) What is a chattel lien? For the purposes of this section a "chattel lien" means: A lien obtained by any person, firm or company who provides services or materials for a vehicle at the owner's request, in the event of nonpayment by the owner. A person or firm that provides services or material for a vehicle at the owner's request may obtain a lien on such vehicle. In the event of nonpayment the lien may be foreclosed as provided by law.

(2) What documents does the department require to issue a certificate of ownership for a vehicle which has been processed through the chattel lien procedure? The department requires, in addition to other documents required by chapters 46.01 and 46.12 RCW:

(a) A copy of a court order. The court order must state specifically that the lien shall be removed((; or

(b))). The court order is required to complete subsection (3) of this section. If the court order does not indicate removal of the security interest, the new owner may:

(i) Negotiate with a secured party to obtain either a release of interest or a new security agreement; or

(ii) Petition the original court that issued the order, or higher court, to have the matter of the secured interest resolved; or

(((c))) (b) An affidavit of sale chattel/landlord lien form provided or approved by the department.

((If there is a lienholder, we require a release of interest from the lienholder. If no release of interest is obtained the lien will be shown on the new certificate of ownership.

(2))) (3) When does the department require a court order to issue a certificate of ownership as a result of a chattel lien? A court order is required when:

(a) The vehicle is no longer in the possession of the person/business who is claiming the chattel/landlord lien; or

(b) Someone other than the owner requested the services; or

(c) There is an existing lien holder on record; or

(d) There is more than one lien claimed against the vehicle.

(((3))) (4) What is a landlord lien? For the purposes of vehicle licensing and titling, a landlord lien is an encumbrance on a vehicle as security for the payment of moneys owing for rent.

(5) What documents does the department require to issue a certificate of ownership for a vehicle, which has been processed through the landlord lien procedure? The department requires, in addition to other documents required by chapters 46.01 and 46.12 RCW:

(a) A copy of a court order; or

(b) An affidavit of sale chattel/landlord lien form provided or approved by the department.

(((4))) (6) When does the department require a court order to issue a certificate of ownership as a result of a landlord lien? A court order is required when:

(a) The vehicle is no longer in the possession of the person/business who is claiming the landlord lien; or

(b) There is more than one lien claimed against the vehicle; or

(c) There is more than one lien claimed against the vehicle.

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, 308-56A-310, filed 6/21/99, effective 7/22/99; Order MV 208, 308-56A-310, filed 7/31/74.]

OTS-4614.2


AMENDATORY SECTION(Amending WSR 99-22-059, filed 11/1/99, effective 12/2/99)

WAC 308-93-390   Vessels held in trust.   (1) How is a trust((, established under chapter 11.98 RCW,)) shown on a certificate of ownership? Owners who choose to designate the trust on a certificate of ownership may:

(a) Show the registered owner name with the designation trustee;

(b) Show the registered owner name with the designation trustee followed by the name of the trust as one owner. If necessary, the name of the trust will be abbreviated to comply with the department's data field size constraints on the automated vessel field system and space limitations on the certificate of ownership; or

(c) The name of the trust only.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? ((In addition to documents required by chapters 88.02 RCW and 308-93 WAC)) You will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees. Trusts established under chapter 23.90 RCW must provide notarized/certified documentation from the secretary of state showing the trust is registered with the state of Washington.

(3) If a vessel is titled in the name of a trust, who represents the trust for title transactions? ((The)) Any trustee ((shown on the certificate of ownership or named)) designated in the trust document(((s))) represents the trust on all vessel transactions with the department ((until such time as the)) unless that trustee is replaced or the trust is terminated.

(4) What is required when the succession of trustees ((changes)) is appointed? ((When there is a change in the succession of trustees, the successor trustee shall do one of the following:

(a) If the certificate of ownership shows the registered owner name with the designation trustee or the registered owner name with the designation trustee followed by the name of the trust as one owner, the new trustee must apply for a new certificate of ownership and provide documentation appointing the new or successor trustee.

(b) If the certificate of ownership is in the name of the trust only, the department does not require a new application for certificate of ownership provided the current trust documents indicate the new succession of trustees.)) If the name of the trustee who has been succeeded is shown on the certificate of ownership, the successor trustee must apply for a new certificate of ownership and provide documentation appointing them as trustee.

(5) What is required when a trust is terminated? ((The beneficiary)) If the termination of the trust results in a change of ownership for the vessel, the new owner must apply for a new certificate of ownership under chapter 88.02 RCW.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-390, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-390, filed 11/18/83.]

Washington State Code Reviser's Office