Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.36.435 and 82.38.260.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Administrative rules are necessary to administer and clarify the provisions of SHB 2659 regarding the collection of state motor vehicle fuel and special fuel excise taxes. This bill changes the manner in which motor vehicle fuel and special fuel excise tax program is administered by the Department of Licensing including: Changing the point of taxation for motor vehicle fuel and special fuel; creating new reporting requirements; creating new license types and license application requirements; eliminating some existing license types; and creating a dyed special fuel program.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Washington State Patrol (WSP) will develop and administer a dyed special fuel enforcement program. The WSP will be included in the rule-making process as a stakeholder and coordination, as necessary, will be via the WSP commercial vehicle enforcement section.

Process for Developing New Rule: Will coordinate with impacted stakeholders for comment and review prior to development of final draft and filing of proposed rules.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication.

For Questions on Rule Process: Paige Boule, Prorate and Fuel Tax Services, 2424 Bristol Court, Olympia, WA 98504, phone (360) 664-2500, e-mail Pboule@dol.wa.gov, FAX (360) 664-2365.

For Questions on Rule Amendments: Art Farley, Prorate and Fuel Tax Services, 2424 Bristol Court, Olympia, WA 98504, phone (360) 753-6993, FAX (360) 664-2365, e-mail Afarley@dol.wa.gov.

June 2, 1998

Arthur W. Farley

Licensing Services Manager