Z-57                  _______________________________________________

                                                    HOUSE BILL NO. 255

                        _______________________________________________

                                                                            C 127 L 87

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Cooper, Schmidt, Walk, P. King, L. Smith and Dellwo; by request of Department of Licensing

Read first time 1/22/87 and referred to Committee on Transportation.

AN ACT Relating to penalty assessments for late transfer of motor vehicle ownership; amending RCW 46.12.101; and prescribing penalties.

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 39, Laws of 1984 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, ((he)) 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 or as the department prescribes, and cause the certificate and assignment to be transmitted to the transferee.  Within five days the owner shall notify the department 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 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 ((him)) the transferee of the vehicle, execute the application for a new certificate of ownership in the same space provided therefor on the certificate or as the department prescribes, and cause the certificates 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 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 ((under his security agreement)).

          (4) If a security interest is reserved or created at the time of the transfer, the certificate of ownership 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 ((such)) the certificate of ownership and license registration within fifteen days after the date of delivery of the vehicle ((to him)), 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((:  PROVIDED, That)).  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 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 ((the)) reissue or replacement of a certificate of ownership and transfer of license registration, accompanied by the endorsed certificate of ownership ((and such)) 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 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.

                                                                                                                           Passed the House March 6, 1987.

                                                                                                                                         Speaker of the House.

                                                                                                                             Passed the Senate April 7, 1987.

                                                                                                                                       President of the Senate.