Preproposal statement of inquiry was filed as WSR 98-03-027.

Title of Rule: Vessel registration and certificate of title.

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

Statutory Authority for Adoption: RCW 88.02.070 and 88.02.100.

Summary: Repealing WAC 308-93-110 Vessels previously registered or titled in another state, 308-93-120 Transfer of certificate of title or registration, 308-93-180 Time of renewal of registration--Duration, 308-93-190 Prerequisite to issuance of vessel, 308-93-210 Procedure when department unsatisfied as to ownership, 308-93-215 Validity of certificate of registration and 308-93-290 Transfer of ownership--How perfected; and amending WAC 308-93-200 Assigned certificate of title to be filed by department--Transfer of interest in vessel, 308-93-220 Director may refuse or cancel certification, 308-93-230 Procedure for perfecting security interest, and 308-93-295 Temporary permits to operate vessels.

Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting: Patrick J. Zlateff, 1125 Washington Street Southeast, Olympia, 902-3718; Implementation: Eric Andersen, 1125 Washington Street Southeast, Olympia, 902-4045; and Enforcement: Nancy S. Kelly, 1125 Washington Street Southeast, Olympia, 902-3754.

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 businesses 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 303, 1125 Washington Street Southeast, Olympia, WA 98507, on September 8, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Patrick J. Zlateff by September 7, 1998, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Patrick J. Zlateff, Rules Coordinator, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by September 7, 1998.

Date of Intended Adoption: October 3, 1998.

August 4, 1998

Nancy S. Kelly, Administrator

Title and Registration Services

AMENDATORY SECTION (Amending Order 736-DOL, filed 11/18/83)

WAC 308-93-200  ((Assigned)) Certificate of ((title to be filed by department))--Involuntary transfer of interest in vessel. ((Certificates of title when assigned and returned to the department, together with subsequently assigned reissues thereof, shall be retained by the department and appropriately filed and indexed so that at all times it will be possible to trace ownership to the vessel designated therein:

(1) If the interest of an owner in a vessel passes to another, other than by voluntary transfer, the transferee shall, except as provided in subsection (3) of this section, promptly mail or deliver to the department the last certificate of title if available, and an application for a new certificate in the form the department prescribes.

(2) If the interest of the owner is terminated or the vessel is sold under a security agreement by a secured party named in the certificate of title, the transferee shall promptly mail or deliver to the department the last certificate of title, an application for a new certificate in the form the department prescribes, and an affidavit made by or on behalf of the secured party that the vessel was repossessed and that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement.

(3) If the secured party succeeds to the interest of the owner and holds the vessel for resale, the secured party need not secure a new certificate of title, but, upon transfer to another person, shall promptly mail or deliver to the transferee or to the department the certificate, affidavit and other documents (and articles) required to be sent to the department by the transferee.)) Who is required to make application for certificate of ownership if ownership is transferred involuntarily?

The transferee is required to apply for a certificate of ownership within fifteen days of possession. The entity that commences the involuntary transfer of ownership is not required to apply for certificate of ownership prior to disposing of the vessel.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46. 83-23-076 (Order 736-DOL), § 308-93-200, filed 11/18/83.]

AMENDATORY SECTION (Amending Order 736-DOL, filed 11/18/83)

WAC 308-93-220  ((Director)) Department may refuse or cancel certificate. ((If the director determines at any time that an applicant for certificate of title or for a registration for a vessel is not entitled thereto, the director may refuse to issue such certificate or to register the vessel and the director may, for like reason, after notice, and in the exercise of discretion, cancel the registration already acquired or any outstanding certificate of title. The notice shall be served personally or sent by certified mail, return receipt requested.)) When can the department refuse or cancel certificate of ownership or certificate of registration?

If the department determines at any time that an applicant for certificate of ownership or for a certificate of registration for a vessel is not entitled to certificate of ownership thereto, the department may refuse to issue such certificate or to register the vessel and may, for like reason, after notice, and in the exercise of discretion, cancel the certificate of registration already acquired or any outstanding certificate of ownership. Notice of cancellation may be accomplished by sending a notice by first class mail using the last known address in department records for the registered or legal vessel owner or owners, and recording the transmittal on an affidavit of first class mail. It shall then be unlawful for any person to remove or operate the vessel until a proper certificate of ownership or certificate of registration has been issued, and any person removing or operating such vessel after the refusal of the department to issue certificates or the revocation thereof shall be guilty of a gross misdemeanor.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46. 83-23-076 (Order 736-DOL), § 308-93-220, filed 11/18/83.]

AMENDATORY SECTION (Amending WSR 92-24-035, filed 11/25/92, effective 12/26/92)

WAC 308-93-230  Procedure for perfecting security interest. ((A security interest in a vessel other than one held as inventory by a vessel manufacturer or dealer and for which a certificate of ownership is required is perfected only by compliance with the requirements of RCW 46.12.095 as provided for vehicles. The registered owner or secured party shall present an application to the department, to which shall be attached the certificate of ownership last issued covering the vessel, or such other documentation as may be required by the department upon a form provided by the department which shall be accompanied by a fee of one dollar. The department, if satisfied with the application and documentation shall note such change upon the vessel records and issue to the secured party a certificate of ownership.

Whenever there is no outstanding secured obligation and no commitment to make advances and incur obligations or otherwise give value, the secured party must assign the certificate of ownership to the debtor and transmit the certificate to the department with an accompanying fee of one dollar. The department shall then issue a new certificate of ownership to the owner.)) (1) How is the security interest in a vessel perfected?

A security interest in a vessel for which a certificate of ownership is required is perfected only by compliance with the requirements of RCW 46.12.095 as provided for vehicles and WAC 308-93-069 and 308-93-070 as provided for vessels.

(2) What is the application fee for adding, deleting or changing a secured party?

The application fee is one dollar and the appropriate filing fee.

(3) What is the secured party's obligation when the lien has been satisfied?

The secured party shall comply with RCW 46.12.170 as provided for vehicles, except the application fee is one dollar, and WAC 308-93-069 and 308-93-070 as provided for vessels.

(4) What is the secured party's obligation when the lien has been satisfied due to the sale of the vessel?

The secured party shall comply with RCW 46.12.101 as provided for vehicles and WAC 308-93-069 and 308-93-070 as provided for vessels.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 92-24-035, § 308-93-230, filed 11/25/92, effective 12/26/92. Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46. 83-23-076 (Order 736-DOL), § 308-93-230, filed 11/18/83.]

AMENDATORY SECTION (Amending WSR 92-06-009, filed 2/24/92, effective 3/26/92)

WAC 308-93-295  Dealer temporary permits to operate vessels. ((A vessel dealer who holds a proper and valid vessel dealer license issued pursuant to chapter 88.02 RCW may issue, under the following circumstances and procedures, temporary permits to operate vessels:

(1) The vessel has been sold and does not bear a currently valid Washington decal.

(2) The dealer shall fill out the title portion of the permit, detailing all owners and all fees collected, including the dealer's report of sale and date of sale. All registered owners must sign the application.

(3) The dealer shall detach the cardboard copy of the permit and record the date of expiration in dark permanent ink, with bold letters and numbers, on the permit side of that copy. The balance of the copies shall be presented to a license agent by the vessel dealer within thirty calendar days as an application for registration and title.

(4) The cardboard copy of the permit and a purchase order identifying the sale must be carried in the vessel and be readily available upon request.

(5) The dealer must collect title and registration fees required for a June expiration.

(6) The temporary license permit issued by a dealer is valid for thirty calendar days from the date of delivery of the vessel. No more than one thirty-day permit may be issued for a vessel after sale.

(7) A dealer may not use a temporary license permit for a dealer or dealer-employee operated vessel, or as a demonstration permit.

(8) Fees paid by a dealer for temporary license permit applications are not refundable unless the dealer ceases doing business as a vessel dealer. The fee paid for a single application may be taken as a credit on that application when it is presented to a license agent with the balance of the appropriate fees.

(9) Temporary permits are not transferable from one vessel dealer to another.)) (1) If I acquire a new or used vessel from a Washington vessel dealer licensed under chapter 88.02 RCW, what documents do I need to place or use the vessel on the water?

(a) If the vessel has current Washington registration displayed, the vessel may be placed or used on the waters immediately, provided the sale documents are carried on the vessel.

(b) If the vessel does not have current Washington registration displayed, the dealer may issue a thirty-day temporary permit, allowing the vessel to be placed or used on the water. In addition to the permit the sale documents shall be carried on the vessel and made available upon request.

(2) How long does the dealer have to provide me with a new vessel registration?

The dealer must provide you with your new registration within thirty days from the date of purchase. Only one vessel dealer temporary permit may be used.

(3) How does a vessel dealer licensed under chapter 88.02 RCW complete a vessel temporary permit?

A vessel dealer completes a temporary permit as follows:

(a) Fill out the certificate of ownership portion of the permit, detailing all owners and all fees collected, including the dealer's report of sale and date of sale. All registered owners must sign the application.

(b) Detach the cardboard copy of the permit and record the date of expiration in dark permanent ink, with bold letters and numbers, on the permit side of that copy. Present the balance of the copies to a license agent within thirty calendar days as an application for registration and certificate of ownership. The dealer will receive a five-dollar credit for a properly issued permit.

(c) Advise customer to:

(i) Display the cardboard copy of the permit on the vessel;

(ii) Carry the purchase order identifying the sale on the vessel; and

(iii) Make the permit and purchase order readily available upon request.

(d) Collect certificate of ownership and registration fees required for a June expiration.

(4) Can a vessel dealer licensed under chapter 88.02 RCW, use a dealer temporary permit to operate a vessel?

No. The permit may only be used by the purchaser of the vessel. A dealer may not use the permit to operate or demonstrate a vessel.

(5) Under what conditions may a dealer turn in the permits and be eligible for a refund?

Refunds are only allowed when the dealer ceases doing business as a vessel dealer.

(6) May a dealer transfer unused temporary vessel permits to another vessel dealer licensed under chapter 88.02 RCW?

Temporary permits are not transferable from one vessel dealer to another, unless the department specifically authorizes the transfer.

[Statutory Authority: RCW 88.02.100. 92-06-009, § 308-93-295, filed 2/24/92, effective 3/26/92. Statutory Authority: 1987 c 149 § 9. 88-01-011 (Order TL/RG 40), § 308-93-295, filed 12/7/87.]

REPEALER

The following sections of the Washington Administrative Code are repealed:

WAC 308-93-110 Vessels previously registered or titled in another state.

WAC 308-93-120 Transfer of certificate of title or registration.

WAC 308-93-180 Time of renewal of registration--Duration.

WAC 308-93-190 Prerequisite to issuance of vessel registration and decals.

WAC 308-93-210 Procedure when department unsatisfied as to ownership.

WAC 308-93-215 Validity of certificate of registration.

WAC 308-93-290 Transfer of ownership, how perfected.