Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-08-005.

     Title of Rule: Chapter 308-56A WAC, Certificates of title -- Motor vehicles, etc.

     Purpose: 1. To meet the criteria set forth in Governor Locke's Executive Order 97-02.

     2. To clarify rules and help make them more comprehensible.

     Statutory Authority for Adoption: RCW 46.01.110.

     Summary: Amending WAC 308-56A-500 Definitions and 308-56A-460 Destroyed or wrecked vehicle rebuilt; and new WAC 308-56A-530 Vehicle brands and comments.

     Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02 and chapter 245, Laws of 2002. Implementation of the requirements of SB 6530.

     Name of Agency Personnel Responsible for Drafting: Katherine Iyall Vasquez, 1125 Washington Street S.E., Olympia, (360) 902-3718; Implementation and Enforcement: Jim Booker, 1125 Washington Street S.E., Olympia, (360) 902-3680.

     Name of Proponent: , governmental.

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

     Explanation of Rule, its Purpose, and Anticipated Effects: 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 business in an industry.

     RCW 34.05.328 does not apply to this rule adoption. The contents of the proposed rules are explicitly and specifically dictated by statute.

     Hearing Location: Highways-Licenses Building, Conference Room 107, 1125 Washington Street S.E., Olympia, WA 98507, on August 27, 2002, at 10:00 a.m.

     Assistance for Persons with Disabilities: Contact Katherine Iyall Vasquez by August 26, 2002, TTY (360) 664-8885, or (360) 902-3718.

     Submit Written Comments to: Katherine Iyall Vasquez, Rules Manager, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by August 26, 2002.

     Date of Intended Adoption: September 9, 2002.

July 11, 2002

D. McCurley, Administrator

Title and Registration Services

OTS-5310.6

AMENDATORY SECTION(Amending WSR 00-13-083, filed 6/20/00, effective 7/21/00)

WAC 308-56A-500   Definitions.   The definitions set forth in RCW 65.20.020 shall apply to WAC 308-56A-505. Terms used in chapters 46.12 and 46.16 RCW and this chapter shall have the following meanings except where otherwise defined, and unless where used the context thereof clearly indicates to the contrary:

     (1) "Affixed" means attached.

     (2) "Brands" means a notation on the certificate of ownership and vehicle registration certificate that records a special circumstance or condition involving a vehicle that stays with the vehicle registration or certificate of ownership.

     (3) "Certificate of ownership" (or "title") is a legal document indicating proof of ownership.

     (((3))) (4) "Comment" means an indication on the certificate of ownership, vehicle title/registration application or vehicle registration certificate that relates to tax liability, type of ownership, title transaction type or a previous condition of the vehicle.

     (5) "Commercial parking company" means any business directly engaged in providing vehicle parking upon property owned or controlled by the business and approved for public parking of vehicles.

     (((4))) (6) "Department" means the same as described in RCW 46.04.162.

     (((5))) (7) "Department temporary permit" is a permit temporarily issued in lieu of permanent registration and license plates when required documentation is unavailable.

     (((6))) (8) "Involuntary divestiture" means a change in vehicle ownership without the registered owner's involvement.

     (((7))) (9) "Joint tenancy with rights of survivorship" means owners who own a vehicle in joint tenancy with the right to own individually if one of them dies.

     (((8))) (10) "Jurisdiction code" means an abbreviation assigned by the department generally based on the U.S. Postal Service designation that indicates state, province, district, or country.

     (11) "Legal owner" means the same as described in RCW 46.04.270.

     (((9))) (12) "Not eligible for road use" (NEFRU) means a vehicle that does not meet Federal Motor Vehicle Safety standards, other federal and/or state standards for public road use as adopted, applied, and enforced by the Washington state patrol described in RCW 46.37.005.

     (13) "Person" means the same as described in RCW 46.04.405.

     (((10))) (14) "Personal representative" means:

     (a) An individual appointed by the court; or

     (b) An individual named in the last will and testament and confirmed by the court to manage the estate of a deceased person.

     Personal representative may also include executor, administrator, special administrator, and guardian or limited guardian and special representative as defined in RCW 11.02.005(1).

     (((11))) (15) "Registered owner" means the same as described in RCW 46.04.460.

     (((12))) (16) "Transferee" means a person to whom a vehicle is transferred, by purchase, gift, or any means other than by creation of a security interest, and any person who, as agent, signs an odometer disclosure statement for the transferee, when applicable.

     (((13))) (17) "Transferor" means a person who transfers ownership in a vehicle by sale, gift, or any means other than by creation of a security interest and any person who, as agent, signs an odometer disclosure statement for the transferor, when applicable.

[Statutory Authority: RCW 65.20.110. 00-13-083, § 308-56A-500, filed 6/20/00, effective 7/21/00; 00-06-004, § 308-56A-500, filed 2/18/00, effective 3/20/00; 90-11-091, § 308-56A-500, filed 5/18/90, effective 6/18/90.]

     (2) What brands are assigned to vehicles by the department? Brands used by the department include, but are not limited to:

     (a) Former exempt, as defined in RCW 46.16.020;

     (b) Former for hire, as defined in RCW 46.72.010;

     (c) Former taxicab, as described in RCW 46.72.010;

     (d) Rebuilt as required in RCW 46.12.075, when a vehicle reported destroyed under RCW 46.12.070 or 46.80.090 and WAC 308-56A-460 meets the definition of salvage vehicle in RCW 46.12.005;

     (e) Street rod as defined in RCW 46.04.571;

     (f) Nonconformity uncorrected or safety defect uncorrected as defined in RCW 19.118.021 (13) and (18);

     (g) Former rental, designation used on a certificate of ownership when a vehicle is removed from a rental fleet and sold as nonrental;

     (h) Nonconformity corrected or safety defect corrected as defined in RCW 19.118.021 (13) and (18);

     (i) Not eligible for road use as described in RCW 46.09.020.

     The department will carry forward all brands and jurisdiction codes shown on foreign certificates of ownership/titles. Brands that do not match Washington terminology or that are not listed below will be shown as "nonstandard." Brands carried forward from foreign certificates of ownership/titles may use the same terminology as a Washington brand, but may not have the same definition as the Washington brand. Other brands not used in Washington but carried forward from other jurisdictions are:

     (A) Junk;

     (B) Destroyed;

     (C) Salvage.

     Vehicles not reported to DOL as destroyed and then sold using an insurance or wrecker bill of sale in lieu of a certificate of ownership/title will be branded in accordance with RCW 46.12.075 whether or not the vehicle had been reported as destroyed in any other jurisdiction.

     The jurisdiction code will be identified as "XX."

     (3) What brands are carried forward from other jurisdictions? In addition to the brands listed in subsection (2) of this section, the department will apply the following brands assigned by other jurisdictions together with the applicable jurisdiction code: Destroyed, salvage, junk. Any other brands assigned by another jurisdiction will be identified by the words "nonstandard."

     (4) Why is a brand used? A brand is used in the circumstances above for consumer protection. The brand is used to inform any subsequent owners of the current or former condition or use of the vehicle.

     (5) Will the department remove a brand? The department will only remove a brand if:

     (a) The brand was applied in error; or

     (b) A vehicle branded not eligible for road use has been modified according to the manufacturer specifications and federal and state standards in such a way to qualify the vehicle for highway use;

     (c) The lemon law administrator certifies that a vehicle branded nonconformity uncorrected should be branded nonconformity corrected;

     (d) The lemon law administrator certifies that a vehicle branded safety defect uncorrected should be branded safety defect corrected.

     If a former rental brand was applied prior to the effective date of this rule, it will remain on the certificate of ownership and/or vehicle registration unless applied in error.

     (6) Where are brands located on the documents? The brand is located in the comments/brands section of the certificate of ownership and vehicle registration. The "WA REBUILT" will show as a banner across the certificate of ownership.

     (7) What is a comment? For the purposes of this section a comment is an indication on the certificate of ownership, vehicle title/registration application or vehicle registration certificate that relates to tax liability, type of ownership, title transaction type or a previous condition of the vehicle.

     (8) What comments could the department print on certificates of ownership?

     (a) Comments relating to the ownership that include: Bonded, leased, JTWROS.

     (b) Comments relating to tax liability that include: Use tax waived - gift, value code, value year.

     (c) Comments relating to the type of title transaction, which include duplicate, and reprint.

     (d) Miscellaneous comments that include: Safety defect uncorrected, safety defect corrected, nonconformity uncorrected, nonconformity corrected, return to manufacturer, not eligible for road use.

     (9) What brands and/or comments could the department print on vehicle registration certificates? Brands and/or comments printed on vehicle registration certificates may include, but are not limited to:

     (a) "Vehicle Driver And Owner Subject To Federal Drug Program" Title 49 CFR Part 382;

     (b) "Rebuilt" or "WA REBUILT";

     (c) "CVSEF PAID" or "commercial vehicle safety enforcement fee paid";

     (d) "Because scale weight exceeds gross weight, D.O.T. permit also required";

     (e) "Commercial vehicle safety enforcement fee not paid";

     (f) "Display tab on back license plate" only - front plate is still required;

     (g) "*Check vehicle database record for actual expiration date";

     (h) "Replica";

     (i) "Proof of FHVUT verified";

     (j) "Safety defect";

     (k) "Safety defect corrected";

     (l) "Nonconformity uncorrected";

     (m) "Nonconformity corrected";

     (n) "No title issued" or "no title issued - ownership in doubt";

     (o) "Excise exempt NRM";

     (p) "Excise exempt native American";

     (q) "Excise exempt van pool";

     (r) "Excise exempt rideshare";

     (s) "Registration only";

     (t) "Prorated gross weight to be more than 16,000";

     (u) "Additional owners on record";

     (v) "Not eligible for road use";

     (w) "Perm plt";

     (x) "Use tax waived: Gift";

     (y) "Return to mfg.";

     (z) "Permanent fleet vehicle";

     (aa) "*Perm";

     (bb) "Color";

     (cc) Comments relating to the ownership; bonded, leased, JTWROS, registration only;

     (dd) Tax liability DAV, native American, NRM, value code/year, use tax option, rideshare, POW, tax code 95, double transfer;

     (ee) Title transaction type duplicate, reprint, NTI, dual registration, corrected title data, corrected registration;

     (ff) Miscellaneous gift, ride, previous plate VIN flag, farm vehicle restrictions, Federal Drug Program (Title 49 CFR Part 382) vehicle color, odometer code, RETURN TO MFG, not eligible for road use (NEFRU).

     (10) What comments would the department carry forward from other jurisdictions? The department does not carry forward comments assigned by other jurisdictions.

     (11) Why are comments used? Comments are used for consumer protection, to inform any subsequent owners and vehicle licensing personnel of the current tax liability, type of ownership, or title transaction type.

     (12) Will the department remove a comment? The department will remove a comment if:

     (a) The comment was applied in error; or

     (b) The comment no longer applies.

[]

OTS-5698.4

AMENDATORY SECTION(Amending WSR 01-20-010, filed 9/20/01, effective 10/21/01)

WAC 308-56A-460   Destroyed or wrecked vehicle rebuilt.   (1) What is a destroyed or wrecked vehicle? For the purposes of this section:

     (a) A destroyed vehicle means a vehicle((s)) of any age that ((have)) has been reported wrecked or destroyed by ((the owner)) an insurance company, licensed wrecker, scrap processor or ((insurance company)) the owner and includes a salvage vehicle((s)) as defined in RCW 46.12.005; and

     (b) A wrecked vehicle is defined in RCW 46.80.010(((4)))(6).

     (2) Who may report destroyed or wrecked vehicles and how are those vehicles reported to the department? Destroyed vehicles may be reported to the department by:

     (a) Insurance companies. A vehicle becomes insurance destroyed under RCW 46.12.070 when:

     (i) An insurance company in possession of a certificate of ownership for a vehicle that has been destroyed submits to the department the current certificate of ownership indicating the vehicle is "DESTROYED," the insurance company name and address and the date of loss, and for a vehicle that is six years through twenty years old, a statement whether or not the vehicle meets the market value threshold amount. If this statement is not provided when required, the department will treat the report as if the insurance company indicated that the market value threshold was met; or

     (ii) The Total Loss Claim Settlement form (TD 420 074) completed in its entirety is received by the department (settlement is defined in subsection (4) of this section); and

     (iii) For a vehicle that is six years through twenty years old, a statement whether or not the vehicle meets the market value threshold amount as defined in subsection (3) of this section. If this statement is not provided, the department will treat the report as if the insurance company indicated that the market value threshold was met when required.

     (b) Government or self-insured entities: Any government agency or self-insured entity reports the vehicle is a total loss under RCW 46.12.070 by indicating on the certificate of ownership or affidavit of loss/release of interest that the vehicle is "DESTROYED" ((and)), the date of loss and a statement whether or not the vehicle meets the market value threshold amount as defined in subsection (3) of this section if the vehicle is six years through twenty years old. If this statement is not provided, the department will treat the reports as if the government or self-insured entity stated that the market value threshold was met when required.

     (c) ((Other owners (owner destroyed); and

     A vehicle is considered destroyed by an individual when)) Registered or legal owners:

     (i) The ((individual)) registered or legal owner submits to the department the certificate of ownership under RCW 46.12.070, properly released ((by the registered and/or legal owner(s), when applicable, and indicates)), indicating on the face of the ownership document "DESTROYED," the date and location of destruction ((on the front of the certificate of ownership)) and whether or not the vehicle meets the market value threshold amount as defined in subsection (3) of this section if the vehicle is six years through twenty years old. If this statement is not provided, the department will treat the report as if the owner indicated that the market value threshold was met when required; or

     (ii) The owner submits an affidavit of loss/release of interest with a notation on the document in the same manner as (c)(i) of this subsection((;)) and

     (((iii))) a written statement indicating the vehicle has been destroyed, to include year, make, model, and vehicle identification number.

     (d) Washington licensed vehicle wreckers. A vehicle becomes wrecker destroyed when the Washington licensed wrecker submits a written report to the department as required in RCW 46.80.090 including a statement whether or not the vehicle meets the market value threshold amount as defined in subsection (3) of this section if the vehicle is six years through twenty years old. If this statement is not provided, the department will treat the report as if the report indicated that the market value threshold was met when required.

     (3) What are the "market value threshold amount" and the criteria used to increase the amount? The "market value threshold amount" is six thousand five hundred dollars effective June 13, 2002, as set by RCW 46.12.005. The market value threshold amount will be increased based on any corresponding increase in the expenditure category "used cars and trucks" of the Consumer Price Index for all Urban Consumers compiled by the Bureau of Labor Statistics, United States Department of Labor, or its successor, for the West Region.

     (4) Is the market value threshold applied to all motor vehicles that are reported destroyed, wrecked or damaged? No. The market value threshold is applied to motor vehicles that are at least six years old but not more than twenty years old and are incorporated into the Consumer Price Index expenditure category "used cars and trucks" which includes, but is not limited to, used passenger cars, light-duty trucks with a gross weight of 12,000 pounds or less, and sport utility vehicles (SUVs).

     (((3))) (5) After the certificate of ownership has been surrendered, how do I sell my destroyed vehicle? After the certificate of ownership has been surrendered, you may sell your destroyed vehicle in the following ways:

     (a) After the vehicle has been reported destroyed under RCW 46.12.070, the insurer using a bill of sale instead of a release of interest on a certificate of ownership may sell the vehicle. The bill of sale shall be signed by a representative of the insurer and provide their title of office. The representative's signature need not be notarized or certified.

     (b) After a vehicle has been reported destroyed under RCW 46.12.070 and the registered owner retains the vehicle, the vehicle may be sold in its present condition using a bill of sale. The owner must sign the bill of sale ((must be signed by the owner)) and the owner's signature must be notarized or certified.

     (c) A motor vehicle wrecker licensed under chapter 46.80 RCW may utilize a bill of sale issued in accordance with (a) and (b) of this subsection in lieu of a certificate of ownership to comply with RCW 46.80.090.

     (((4))) (6) When is an insurance claim considered settled? For the purpose of this section, those vehicles described in RCW 46.12.070, the settlement of an insurance claim as a total loss, less salvage value shall mean the date on which an insurance company actually makes payment to the claimant for the damage.

     (((5))) (7) If a vehicle has been reported to the department as destroyed or wrecked, may the license plate(s) remain with the vehicle? Depending on the situation the vehicle license plates may stay with the vehicle:

     (a) If the vehicle has been reported insurance destroyed, regular vehicle license plates may remain with the vehicle unless the license plates assigned to the vehicle are severely damaged.

     (b) If the owner of record has reported the vehicle as destroyed, regular vehicle license plates may remain with the vehicle unless the license plates assigned to the vehicle are severely damaged.

     (c) If the vehicle has been reported destroyed by a Washington licensed wrecker, new vehicle license plates are required since the Washington licensed vehicle wrecker must remove the current license plates as required by WAC 308-63-070(7).

     (((6))) (8) What is required of a Washington licensed vehicle dealer before they can sell a vehicle that has been reported destroyed or wrecked? Except as permitted by RCW 46.70.101 (1)(b)(viii) before a vehicle dealer may sell a destroyed or wrecked vehicle under their Washington vehicle dealer license, the dealer must:

     (a) Rebuild the vehicle to standards set by the state of Washington or the federal government pertaining to the construction and safety of vehicles; and

     (b) Obtain a Washington state patrol inspection; and

     (c) Apply for and receive a certificate of ownership for the vehicle, issued in the name of the vehicle dealer.

     (((7))) (9) What does (("WAREBUILT")) "WA REBUILT" mean on a Washington certificate of ownership? The (("WAREBUILT")) "WA REBUILT" designation, as required by RCW 46.12.075, on a vehicle certificate of ownership means that the vehicle:

     (a) Is of a model year that is less than six years before the calendar year in which the vehicle was wrecked, destroyed, or damaged and has been reported as destroyed under RCW 46.12.070 or ((46.80.010(4))) 46.80.090 and the vehicle has been rebuilt and inspected under RCW 46.12.030; or

     (b) Is a used car or truck with a model year at least six years but not more than twenty years before the calendar year in which the vehicle was wrecked, destroyed, or damaged and has been reported as destroyed under RCW 46.12.070 or 46.80.090 and the vehicle has been rebuilt and inspected under RCW 46.12.030 and the vehicle, just prior to the time it was wrecked, destroyed or damaged, met the value requirements as defined in RCW 46.12.005. If this statement is not provided, the department will treat the report as if the market value threshold was met.

     (((8))) (10) Will the certificate of ownership or vehicle registration always indicate "WA REBUILT" for a vehicle described in subsection (((7))) (9) of this section((, will the certificate of ownership and registration always indicate "WAREBUILT"))? Yes, the certificate of ownership ((and)) or vehicle registration certificate shall prominently display a "WA REBUILT" designation on the front of the document unless the brand was applied in error. This designation will continue to appear on every subsequent certificate of ownership ((and)) or vehicle registration certificate issued for this vehicle.

     (((9))) (11) If I purchase a vehicle that has been reported to the department as wrecked/destroyed/salvaged or a total loss and has not been retitled, what documentation and fees are required to ((get)) obtain a certificate of ownership? The documentation required to obtain a certificate of ownership after the vehicle's destruction is:

     (a) All documents and fees required by chapters 46.01, 46.12, and 46.16 RCW; and

     (b) A notarized/certified release of interest or a notarized/certified bill of sale from the owner of the vehicle transferring ownership, except that a bill of sale from a licensed vehicle wrecker or insurer need not be notarized or certified;

     (c) An inspection by the Washington state patrol or other person authorized by the director to perform vehicle inspection;

Note:

Receipts of all parts used for reconstruction of the vehicle need to be kept and made available upon request at the time of inspection.

     (d) An odometer statement, if applicable.

[Statutory Authority: RCW 46.01.110. 01-20-010, § 308-56A-460, filed 9/20/01, effective 10/21/01. Statutory Authority: RCW 46.01.110 and 46.12.070. 00-06-025, § 308-56A-460, filed 2/23/00, effective 3/25/00. Statutory Authority: RCW 46.01.110. 92-15-024, § 308-56A-460, filed 7/6/92, effective 8/6/92. Statutory Authority: RCW 46.01.110 and 46.12.070. 91-04-025, § 308-56A-460, filed 1/29/91, effective 3/1/91; Order MV 208, § 308-56A-460, filed 7/31/74.]

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