WSR 15-15-015
PROPOSED RULES
DEPARTMENT OF LICENSING
[Filed July 6, 2015, 11:47 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 13-08-050.
Title of Rule and Other Identifying Information: Uniform Commercial Code (UCC), WAC 308-391-101(1) Methods to deliver UCC recordsTime of filing, 308-391-202 Grounds for refusal, and 308-391-203 Procedure upon refusal.
Hearing Location(s): Department of Licensing (DOL), Business and Professions Division, 405 Black Lake Boulevard S.W., Building 2, 1st Floor, Room 2105, Olympia, WA 98502, on August 25, 2015, at 10:00 a.m.
Date of Intended Adoption: August 26, 2015.
Submit Written Comments to: Jessica Parraz, P.O. Box 9660, Olympia, WA 98507-9660, e-mail UCC@dol.wa.gov, fax (360) 570-7052, by August 24, 2015.
Assistance for Persons with Disabilities: Contact Jessica Parraz by August 24, 2015, TTY (360) 664-0116 or (360) 664-1530.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 308-391-101(1), eliminate counter hours from this rule, and post hours on the internet in lieu of WAC 308-391-202 and 308-391-203.
The UCC program currently has about eighteen thousand fraudulent filings in the UCC database, with about four thousand added each year. Fraudulent filings are used to harass or defraud others, and can affect victim's ability to get credit. These records are nonconsensual common law liens, which are stated in RCW 60.70.030. DOL has the duty to establish criteria via the rule-making process to reject and remove these lien filings. The proposed rule amendment is supported by industry and meets exemption criteria outlines [outlined] in Executive Order 10-06.
Statutory Authority for Adoption: RCW 62A.9A-526.
Statute Being Implemented: Chapter 62A.9A RCW.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Kim Summers, Olympia, (360) 334-1530.
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 19.85.025(3) and 34.05.310 (4)(b).
A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 does not apply to this proposed rule under the provisions or [of] RCW 34.05.328 (5)(a)(i).
July 6, 2015
Damon Monroe
Rules Coordinator
AMENDATORY SECTION (Amending WSR 09-12-067, filed 5/29/09, effective 6/29/09)
WAC 308-391-101 Methods to deliver UCC recordsTime of filing.
UCC records may be tendered for filing at the filing office as follows:
(1) Personal delivery at the filing office's street address. Delivery is accepted ((between 8:00 a.m. and 5:00 p.m.)) Monday through Friday except state holidays. Hours are posted on the filing office's web site on the internet. The file time for a UCC record delivered by this method is when the UCC record is first examined by a filing officer for processing, even though the UCC record may not yet have been accepted for filing and subsequently may be rejected.
(2) Courier delivery at the filing office's street address. Delivery by courier is considered personal delivery under subsection (1) of this section and the same rules apply.
(3) Postal service delivery to the filing office's mailing address. The file time for a UCC record delivered by this method is when the UCC record is first examined by a filing officer for processing, even though the UCC record may not yet have been accepted for filing and subsequently may be rejected.
(4) Electronic mail and telefacsimile delivery are not accepted.
(5) Electronic filing. UCC records may be transmitted electronically using the XML format prescribed by the filing office. The time of filing of a UCC record delivered by this method is the time the filing office's information management system determines that all the required elements of the transmission have been received in the required format.
(6) Direct web page data entry. UCC records may be delivered by online data entry using the filing office's web site on the internet. The file time for a UCC record delivered by this method is the time the entry of all required elements of the UCC record in the proper format is acknowledged by the online entry system.
(7) Means of communication. Regardless of the method of delivery, information in UCC records communicated to the filing office must be machine readable and only in the form of characters included in the American National Standards Institute (ANSI) character set 0-255. Handwriting is not an acceptable means of completing any UCC form.
(8) Transmitting utility. The only means to indicate to the filing office that an initial financing statement is being filed against a debtor that is a transmitting utility, in order to affect the filing office's determination of lapse date, is to check the appropriate box on a UCC1 ((Addendum filed with the initial financing statement)) or by transmitting the information in the proper field in an electronic filing of the initial financing statement.
AMENDATORY SECTION (Amending WSR 09-12-067, filed 5/29/09, effective 6/29/09)
WAC 308-391-202 Grounds for refusal.
In determining under RCW 62A.9A-516 whether or not there is one or more grounds to refuse a UCC record, the filing office will refuse a record for any of the following reasons:
(1) The financing statement does not provide an address that meets the minimum requirements for an address as set forth in these filing office rules.
(2) The information on the financing statement form is not machine-printed. However, attachments to the form may be handwritten.
(3) The financing statement form contains illegible information. Labels and imprints from ink stamps are considered illegible.
(4) The ((named debtor(s) is a public official)) record is a nonconsensual common law lien, as provided in RCW 60.70.030.
(5) The record is outside the scope of UCC as provided in RCW 62A.9A-109.
(6) The debtor does not meet the definition of a transmitting utility as provided in RCW 62A.9A-102(80).
(7) The filer is not entitled to file under RCW 62A.9A-509.
AMENDATORY SECTION (Amending WSR 09-12-067, filed 5/29/09, effective 6/29/09)
WAC 308-391-203 Procedure upon refusal.
(1) If the filing office finds grounds to refuse a UCC record, the filing office communicates the reason(s) for the refusal and other related information to the name and address provided in box ((B)) C on the financing statement. The refusal notice will be communicated within two business days after the refused UCC record was received by the filing office, by mail or more expeditious means as the filing office shall determine. Records of refusal, including a copy of the refused UCC record and the ground(s) for refusal, are maintained until the first anniversary of the lapse date that applies or would have applied to the related financing statement, assuming that the refused record had been accepted and filed.
(2) If the filing office finds grounds to remove a UCC record, the filing office communicates the reason(s) for the removal and other related information to the name and address provided in box C on the financing statement. We will also send notification to the debtor(s) named on the financing statement and all bulk data purchasers.