Original Notice.

Preproposal statement of inquiry was filed as WSR 98-22-031.

Title of Rule: Chapter 308-93 WAC, Vessel registration and certificates of title.

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

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

Statutory Authority for Adoption: RCW 88.02.070 and 88.02.100.

Summary: Amending WAC 308-93-370 format required for name and address--Names separated by the words "and," or "or," or the slash symbol (/), 308-93-380 Format required for name and address--Ownership in joint tenancy, 308-93-390 Vessels held in trust, 308-93-400 Multiple security interests, 308-93-490 Law enforcement sale, 308-93-500 Name change, and 308-93-510 Transfer by court order.

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

Name of Proponent:

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 107, 1125 Washington Street S.E., Olympia, WA 98507, on October 11, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Patrick J. Zlateff by October 8, 1999, 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 October 8, 1999.

Date of Intended Adoption: October 30, 1999.

September 1, 1999

Deborah McCurley

Administrator

Title and Registration Services

OTS-3356.1

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

WAC 308-93-370
((Form)) Format required for name and address--((Owners in common)) Names separated by the words "and," "or," or the slash symbol (/).

((If more than one person is shown on the application for title or its addendum as registered owner of the vessel, those persons will be treated as owners in common of the vessel whether or not the names are joined by the word "and" or the word "or.")) (1) Does the department use the words "and," "or," or the slash symbol (/) when recording multiple interests on a certificate of ownership? The department no longer uses these designations when recording ownership interest. For those certificates of ownership which may have been issued using one of these designations, any registered owners so shown are considered to have equal registered owner interest in the vessel and any secured parties so shown are considered to have equal secured party interest in the vessel.

(2) Will the department use the words "and," "or," or the slash symbol (/) if another jurisdiction has recorded multiple interests on the foreign certificate of ownership using one of these designations? The department does not use these designations when recording ownership interest.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-370, filed 11/18/83.]

((If more than one person is shown on the title application as registered owner, and the intention of the parties is to create ownership in joint tenancy, it is necessary to use the following language on the application for certificate of title:

(1) "John Doe and Jane Doe and Mary Doe as joint tenants with right of survivorship"; or

(2) "John Doe and Jane Doe and Mary Doe as joint tenants with right of survivorship and not as tenants in common" on the reissue title.

The ownership of the vessel in joint tenancy will be indicated on the certificate issued by the department in the following manner: "J.T.W.R.O.S."

A certified copy of the death certificate will be required upon the death of a party named on such a title.  An application for title in the name(s) of the remaining party will be required.)) (1) What does joint tenancy with rights of survivorship mean when noted on a certificate of ownership? If a vessel certificate of ownership shows the owners are in joint tenancy with rights of survivorship and one of the named parties dies, ownership vests in the surviving joint owner(s). The department will issue a certificate of ownership in the name of the surviving joint owner(s) upon application supported by a copy of the death certificate.

(2) How is joint tenancy with rights of survivorship shown on the application for certificate of ownership? The application for certificate of ownership shall show the name of every owner with the phrase "Joint tenants with rights of survivorship" spelled out. The address of only one owner can be accepted on the application. Example 1:

Doe, John

Doe, Jane

Doe, Mary

Joint tenants with rights of survivorship; or

Example 2:

Doe, John

Doe, Jane

Joint tenants with rights of survivorship.

(3) How is joint tenancy with rights of survivorship shown on the certificate of ownership? The certificate of ownership will be printed showing the abbreviation "JTWROS."

(4) If one of the owners dies, what additional documentation does the department require to transfer the certificate of ownership into the name(s) of the surviving owner(s)? The department requires a copy of the death certificate.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-380, filed 11/18/83.]

(1) ((The trustee shall be shown on any application for certificate of title as registered owner if a vessel is held in trust for the benefit of another.  There is no requirement that the word "trustee" be placed after the name of any such owner.

(2) If the application and subsequently issued title includes the word "trustee" after the name of the registered owner, any signature releasing interest in the vessel by that owner shall include that designation.

(3) Upon the death of the trustee, a co-trustee or successor trustee shall make application for transfer of title into his/her own name.  An affidavit that he or she is the successor or co-trustee and a copy of the documents so designating that person shall accompany any such application.)) How is a trust, established under 11.98 RCW, shown on a certificate of ownership? Owners who choose to designate the trust on a certificate of ownership may:

(a) Show the registered owner name with the designation trustee;

(b) Show the registered owner name with the designation trustee followed by the name of the trust as one owner. If necessary, the name of the trust will be abbreviated to comply with the department's data field size constraints on the automated vessel field system and space limitations on the certificate of ownership; or

(c) The name of the trust only.

(2) What trust documents do I need to present to apply for a certificate of ownership in the name of the trust? In addition to documents required by chapters 88.02 RCW and 308-93 WAC you will need to provide a copy of the signed trust documents, showing the name of the trust, trustee(s) and successor trustees.

(3) If a vessel is titled in the name of a trust, who represents the trust for title transactions? The trustee shown on the certificate of ownership or named in the trust document(s) represents the trust on all vessel transactions with the department until such time as the trustee is replaced or the trust is terminated.

(4) What is required when the succession of trustees changes? When there is a change in the succession of trustees, the successor trustee shall do one of the following:

(a) If the certificate of ownership shows the registered owner name with the designation trustee or the registered owner name with the designation trustee followed by the name of the trust as one owner, the new trustee must apply for a new certificate of ownership and provide documentation appointing the new or successor trustee.

(b) If the certificate of ownership is in the name of the trust only, the department does not require a new application for certificate of ownership provided the current trust documents indicate the new succession of trustees.

(5) What is required when a trust is terminated? The beneficiary must apply for a new certificate of ownership under chapter 88.02 RCW.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-390, filed 11/18/83.]

((If one of two legal owners shown on a certificate of title has his/her security interest in the vessel satisfied, that interest in the vessel shall be released in the appropriate manner and the appropriate documentation forms forwarded to the remaining legal owner.  The remaining legal owner shall either (1) retain that documentation and forward it to the department at the time his/her interest is satisfied along with an application for reissue or (2) the documentation shall be immediately presented to the department with an application for reissue of title to show the remaining secured party as the sole legal owner of the vessel.  If the outstanding certificate of title does not show the address of the remaining legal owner, there must be an application for reissue of title in order that the address of the remaining legal owner may be indicated on the outstanding certificate of title.)) (1) Will the department issue a certificate of ownership indicating more than one security interest? Yes, more than one security interest(s) may be shown on the certificate of ownership.

(2) How are additional security interests shown on the certificate of ownership? Additional security interests are shown directly after the first security interest. Only the address of the first security interest shall be shown on the certificate of ownership.

(3) If the lien has been satisfied with one of the secured parties shown on a certificate of ownership, how is their interest released? When the lien has been satisfied with one of the secured parties shown on a certificate of ownership, that secured party's interest shall be released on the certificate of ownership or a department approved release of interest form. The remaining secured party(s) shall, within ten days of receiving the properly released certificate of ownership, apply for reissue of the certificate of ownership showing the remaining secured parties' name and address.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-400, filed 11/18/83.]

(1) ((An application for title for a vessel sold by a sheriff pursuant to Washington state law transfers only the interests of the person(s) shown on the bill of sale, or if the former owner(s) is not shown, only the interests of the registered owner(s) of record, and shall be accompanied by:

(a) The sheriff's bill of sale; and

(b) A copy of the court order directing the sale, if any.

(2) The vessel must be titled in the name of the purchaser shown on the bill of sale.)) What documentation will I receive if I purchase a vessel from law enforcement? You will receive:

(a) A bill of sale from the selling law enforcement agency indicating the vessel was sold in accordance with chapter 63.32, 63.35 or 63.40 RCW; or

(b) A properly released certificate of ownership; or

(c) A notarized release of interest and affidavit in lieu of title.

(2) What ownership documents does the department require to issue a certificate of ownership for a vessel, which has been purchased at a law enforcement sale? The department requires, in addition to other documents and fees required by chapters 46.01 and 88.02 RCW:

(a) The current certificate of ownership, if it is available; and

(b) A bill of sale from law enforcement to the purchaser stating that the vessel was sold in accordance with chapter 63.32, 63.35 or 63.40 RCW; or

(c) A copy of an order, describing the vessel, from any district or superior court of any county of this state authorizing law enforcement to sell the vessel.

(3) Does the sale of a vessel at a law enforcement sale remove any previous security interest? Yes, security interests are released upon the sale of a vehicle at a law enforcement sale. No additional releases of interest are required from the secured party.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-490, filed 11/18/83.]

((On any application for reissue of a certificate of title where the name of the registered owner has been changed by court action, a certified copy of the court order authorizing the name change, if applicable, shall be attached to the application.)) What documentation does the department require to change my name as shown on the certificate of ownership? In addition to other documents required by chapters 88.02 RCW and 308-93 WAC, the department requires:

(1) A court order if the name was changed by a court action; or

(2) An affidavit signed by you stating:

(a) Your previous and current names; and

(b) The reason for the name change; and

(c) That the purpose of the name change is not to defraud creditors.

[Statutory Authority: RCW 88.02.070 and 88.02.100.  84-13-086 (Order TL-RG-2), § 308-93-500, filed 6/21/84.  Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-500, filed 11/18/83.]

((Any application for certificate of title, where a change of legal or registered owner of a vessel is the result of the order of a court, shall be accompanied by a certified copy of the order or a certification from the clerk of court on a department approved form confirming the court's action.  If the last issued certificate of title is not attached to the application, an affidavit of lost or destroyed title or an affidavit explaining the nonavailability of the title document shall also be attached to the application.)) (1) What does the department require if ownership of a vessel is awarded by court order? In addition to other documents required by chapters 88.02 RCW and 308-93 WAC, the department requires:

(a) A copy of the Washington state court order, or certification from the clerk of court confirming the courts' action. The court order or certification from the clerk must describe the vessel and to whom the vessel is awarded, provided the vessel is most recently titled in Washington; or

(b) A copy of the foreign court order if a vessel for which ownership was most recently established, is in the same jurisdiction as the court action, example: California court order and California vessel ownership documents; or

(c) The court order to be filed in accordance with RCW 6.36.025 if the court order and vessel certificate of ownership are not from the same jurisdiction; or

(d) Obtain a certificate of ownership in their name from a foreign jurisdiction.

(2) What information needs to be on the court order for the department to accept it? The department requires the court order to contain, at a minimum:

(a) The name of the person to whom the property is awarded;

(b) A description of the vessel(s) awarded, including the hull identification number or Washington registration number, if available;

(c) Validation that the court order has been filed;

(d) An indication that the court order is the final judgment of the court in this matter; and

(e) A signature of an authorized representative of the court.

(3) Does the department require all pages of the final court order? No, the department requires only copies of pages of the final court order containing:

(a) The information listed in subsection (2) of this section; and

(b) If the court order identifies any collateral agreements, those portions of the collateral agreement identifying the vessel and its disposition, the first page and the signature page of that collateral agreement; and

(c) The page of the order actually signed by the judge/commissioner.

(4) Does the copy of the court order need to be certified? The copy of the court order does not need to be certified.

(5) What does the department require if the court order does not describe the vessel by vessel identification number or Washington registration number? The department requires a certified or notarized statement from the person awarded the vessel. The statement shall describe the vessel in the court order by year, make and hull identification number as a minimum.

(6) Does the court order allow the department to remove the security interest recorded on the current certificate of ownership? The department shall:

(a) Remove the security interest if the court order specifically directs the department to do so.

(b) Not remove the security interest if not specified to do so in the court order. The new owner may:

(i) Negotiate with a secured party to obtain either a release of interest or a new security agreement; or

(ii) Petition the original court that issued the order, or higher court, to have the matter of the secured interest resolved.

[Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-510, filed 11/18/83.]

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