Original Notice.

Preproposal statement of inquiry was filed as WSR 00-06-031.

Title of Rule: Chapter 308-65 WAC, Hulk haulers/scrap processors.

Purpose: To review the current rules to ensure necessity, effectiveness, efficiency, clarity, intent, coordination with other jurisdictions and agencies, cost benefits and fairness in accordance with Governor Gary Locke's Executive Order 97-02.

Statutory Authority for Adoption: RCW 46.79.080.

Summary: Review of current rules governing hulk haulers and scrap processors.

Reasons Supporting Proposal: Governor's Executive Order 97-02 for WAC review.

Name of Agency Personnel Responsible for Drafting: Cal Sanders, Highways-Licenses Building, Olympia, Washington 98507, (360) 902-3708; Implementation and Enforcement: Robert Smith, Highways-Licenses Building, Olympia, Washington 98507, (360) 902-3704.

Name of Proponent: , governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: To review current rules to ensure necessity, effectiveness, efficiency, clarity, intent, coordination with other jurisdictions and agencies, cost benefits and fairness in accordance with Governor Gary Locke's Executive Order 97-02.

Proposal Changes the Following Existing Rules: Several sections have been changed in light of the review for necessity, effectiveness, clarity, intent, coordination with other agencies, cost benefits and fairness.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposal does not impose additional duties on the industry.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.

Hearing Location: Department of Licensing, Conference Room 406, 4th Floor, 1125 S.E. Washington Street, Olympia, WA 98504, on May 24, 2000, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact Gail Saul by May 15, 2000, TDD (360) 664-8885, or (360) 902-3709.

Submit Written Comments to: Gail Saul, Dealer Services, Dealer and Manufacturer Services, P.O. Box 9039, Olympia, WA 98507-9039, fax (360) 586-6703, by May 22, 2000.

Date of Intended Adoption: June 10, 2000.

April 12, 2000

Fred Stephens

Director

OTS-3962.1

AMENDATORY SECTION(Amending WSR 93-08-076, filed 4/6/93, effective 5/7/93)

WAC 308-65-020
Definitions.

(1) Bill of sale for acquiring vehicles.      A bill of sale shall include the names and addresses of the seller and purchaser; a description of the vehicle or part being sold, including the make, model and identification or serial number; the date of sale; and the purchase price of the vehicle.      Bills of sale are acceptable in lieu of title in the cases of:

(a) Vehicles from nontitle jurisdictions;

(b) When an insurance company or private owner has turned in the title to a vehicle previously destroyed as provided under WAC ((308-58-030)) 308-56A-460; or

(c) For vehicles of the type to which titles are not issued.

(2) In the case of vehicle parts a bill of sale from the seller describing the specific part and giving the full name, address and verification of the seller's identity, plus date of sale.      In addition, if a major component part is acquired the vehicle identification number from which it came must also be set forth on the bill of sale.      A copy of each bill of sale shall be maintained on acquired parts for a period of three years.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-020, filed 4/6/93, effective 5/7/93.]

What must I do for a place of business? (1) Hulk hauler.      A hulk hauler's established place of business is an address at which ((he/she)) the hulk hauler receives mail and can normally be reached.

(2) Scrap processor.      A scrap processor's established place of business is a place where (a) vehicles may be stored lawfully, (b) hydraulic balers, shears or shredders or other equipment for recycling vehicle salvage may be used lawfully, and (c) there is a building in which the scrap processor's license is conspicuously displayed and where all records required of the scrap processor are available for inspection.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-030, filed 4/6/93, effective 5/7/93.]

How must I apply for the hulk hauler license? The application for a hulk hauler's license shall be made on the form provided by the department and shall include, in addition to any other information the department may require, and in addition to the provisions of RCW 46.79.030:

(1) A statement regarding whether or not the applicant has ever previously had a license as a hulk hauler denied, suspended, or revoked and on what dates and what grounds.

(2) A certification from a member of the Washington state patrol that his/her vehicle(s) are properly identified in accordance with WAC 308-65-070(5).

The license may be renewed prior to the expiration date by filing a renewal application, securing a signature of the appropriate member of the Washington state patrol on his/her application, and paying a renewal fee of ten dollars.

[Statutory Authority: RCW 46.79.080.      94-12-052, § 308-65-040, filed 5/27/94, effective 6/27/94.      Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-040, filed 4/6/93, effective 5/7/93.]

When will my license expire? (1) A hulk hauler's license shall expire twelve consecutive months from the date of issuance for purposes of staggered licensing.

(2) Motor vehicle hulk hauler license plates shall expire on the same date as the expiration of the license.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-050, filed 4/6/93, effective 5/7/93.]

How must I display the hulk hauler license plates? All vehicles used by hulk haulers on the highways of this state shall bear regular license plates and in addition, special hulk hauler's plates.      Each vehicle shall display both special plates assigned to it, provided that when any vehicle being towed does not have valid license plates, the hulk hauler plates may be split, with one being displayed on the front of the towing vehicle and the other on the rear of the vehicle being towed.      The plates serve in lieu of a trip permit or current license plates for the vehicle(s) being transported.

The plates may be obtained at a fee of six dollars for the first set, and three dollars for each additional set which charges include the reflectorization fee required by RCW 46.16.237.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-060, filed 4/6/93, effective 5/7/93.]

On what ownership documents may I buy and sell vehicles/hulks? (1) Supporting acquisition for transport, resale.      The hulk hauler may acquire vehicles or hulks for transport and resale to a licensed motor vehicle wrecker or scrap processor upon obtaining ownership documents in the form of a certificate of title properly endorsed, from a state issuing a title, or a certificate of registration and notarized bill of sale from a jurisdiction issuing only a registration certificate or other approved ownership documents as follows:

(a) Affidavit of lost or stolen title signed by the owner on record with the department, and release of interest from the owner.

(b) Affidavit of sale of a junk vehicle from the landowner who has complied with RCW 46.55.230.

(c) Affidavit of sale from a registered tow truck operator.

(d) A court order.

(e) Acquisition from wreckers licensed by the department may be supported by obtaining the wrecker's invoice or bill of sale listing each vehicle by the wrecker's "yard number." Such invoice or bill of sale shall be given to the scrap processor or vehicle wrecker purchasing the vehicles listed therein.

(f) Bills of sale pursuant to WAC 308-63-020 for vehicles from nontitle jurisdictions that have had their titles surrendered to a state after having been declared a total loss and for vehicles of the type to which titles are not issued.

(2) Must possess supporting documentation.      Before a hulk hauler may transport any vehicle for resale, he/she shall have in his/her possession ownership documents to support lawful acquisition or possession, as enumerated in subsection (1) of this section.      Such documentation shall be in his/her possession at all times while the vehicle is transported.

(3) Handling vehicles.      A hulk hauler may not operate as a wrecker or remove parts from vehicles, provided that ((he/she)) the hulk hauler may remove the parts necessary to sell vehicle salvage to a licensed scrap processor, e.g., the upholstery, gasoline tank, and tires, so long as such parts are removed on the premises of a licensed wrecker or scrap processor where prior permission is granted or at a location approved by the department.

(4) May sell to licensed wreckers and scrap processors.      Vehicles in the possession of a licensed hulk hauler may only be sold to a licensed wrecker or scrap processor.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-080, filed 4/6/93, effective 5/7/93.]

How must I apply for a scrap processor license? The application for a scrap processor's license shall contain, in addition to any other information the department may require, evidence the application is approved by the local government planning and zoning authorities pursuant to the provisions of the State Environmental [Policy] Act, chapter 43.21C RCW.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-090, filed 4/6/93, effective 5/7/93.]

When does my license expire? (1) A scrap processor's license shall expire twelve consecutive months from the date of issuance ((for purposes of staggered licensing)).

(2) Any special license plates issued to a scrap processor shall expire on the same date as the expiration of the license.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-100, filed 4/6/93, effective 5/7/93.]

What special license plates are available? Vehicles owned or operated on the highways of this state by a scrap processor and used by ((him/her)) the scrap processor in gathering vehicle hulks or salvage shall bear regular license plates and, in addition, hulk hauler plates.      Such plates serve in lieu of a trip permit or current license for any vehicle being transported.      Each vehicle shall display all plates issued to it.

The plates may be obtained at a fee of six dollars for the first set, and three dollars for each additional set including the reflectorization fee required by RCW 46.16.237; they expire simultaneously with the scrap processor's license.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-110, filed 4/6/93, effective 5/7/93.]

On what ownership documents may I acquire vehicles? Supporting acquisition.      A scrap processor may acquire vehicles for demolition if the transferor can furnish ownership documents, in the form of a certificate of title properly endorsed, from a state issuing a title, or a certificate of registration and notarized bill of sale from a jurisdiction issuing a registration certificate only or other approved ownership documents as follows:

(1) Affidavit of lost or stolen title and release of interest from the owner.

(2) Affidavit of sale of a junk vehicle from the landowner who has complied with RCW 46.55.230.

(3) Bills of sale pursuant to WAC 308-63-020 for vehicles from nontitle jurisdictions, for vehicles that have had their titles surrendered to a state after having been declared a total loss, and for vehicles of the type to which titles are not issued.

(4) Affidavit of sale from a registered tow truck operator.

(5) A court order.

(6) Invoice or bill of sale from wrecker.

(7) Scrap processors may acquire vehicle salvage from out-of-state provided that the out-of-state salvage company submits an affidavit certifying ((his/her)) its rightful and true possession of the vehicles or parts contained in the bulk shipment and that he/she has complied with all statutes, rules and regulations relating to such vehicles in the state or province of origin.

(8) Vehicle parts may be acquired by use of an invoice or bill of sale which describes the part and identifies the seller by name and address.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-130, filed 4/6/93, effective 5/7/93.]

How must I file monthly reports to the department? (1) Must maintain books and files.

(a) The scrap processor shall maintain the following books and files of all vehicles, acquired other than from a wrecker or out-of-state salvage company, which shall contain the following:

(i) A description of each vehicle acquired by make, model, year and vehicle identification number;

(ii) The date acquired, name of the person, firm or corporation from which obtained, and the wrecker license numbers if such person is licensed as a wrecker by the department;

(iii) A description of the document evidencing ownership, and if a certificate of title or registration, the title or registration number; and

(iv) The license plate number and name of state in which vehicle was last registered.

(b) For all vehicles acquired from a licensed wrecker, a copy of the wrecker's invoice or bill of sale shall suffice as the record of acquisition and demolition.

(c) For vehicles acquired from out-of-state salvage companies, an invoice listing the vehicles and the affidavit of compliance with the out-of-state jurisdiction.

(d) For vehicle parts, an invoice or bill of sale describing the part and identifying the seller by name and address.      That record will be available for inspection.

(e) Such records shall be maintained for three years and shall be subject to periodic inspection by authorized representatives of the department and appropriate law enforcement officers.

(2) Must furnish written reports.      By the tenth of the month following acquisition of vehicles or hulks for demolition, each scrap processor shall submit a report, on the form prescribed by the department, listing each vehicle, whether or not such vehicles have been demolished.      This report shall be made in duplicate, retaining the duplicate for the scrap processor's files.      The report shall give such information as the scrap processor is required to keep by subsection (1) of this section, provided that the scrap processor need not include copies of a wrecker's invoice or bill of sale in such report so long as he/she retains copies of the invoices and bills of sale for a period of three years.      It shall be accompanied by properly endorsed certificates of title or registration or such other adequate evidence of ownership as may come into the scrap processor's possession when he/she acquires vehicles for salvage from other than wreckers licensed by the department.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-140, filed 4/6/93, effective 5/7/93.]

When must I report a change in business structure or ownership? Any person, firm, association, corporation or trust licensed under chapter 46.79 RCW must, within ten days following any change in its business or ownership structure, file a statement describing with particularity the change in its business structure or the change in ownership interest.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-150, filed 4/6/93, effective 5/7/93.]

What if there is a partial change in ownership of the company? Upon the sale, transfer or other disposition of fifty percent or more of the ownership interest in a noncorporate licensee:

(1) A new application for an appropriate license by the purchaser or transferee is required and the fee will be the same as for an original application.

(2) The former owner must ((turn into)) surrender to the department ((his/her)) all special license plates.      The new owner or transferee must purchase new plates in ((his/her)) its own name.

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-170, filed 4/6/93, effective 5/7/93.]

What if I incorporate while licensed? A licensee which incorporates while licensed((:

(1))) shall file an application for an appropriate license.

(((2) If the transfer involves a change in the business structure only and does not involve the transfer of fifty percent or more of the ownership interest in the firm, the corporation may be considered temporarily licensed until the end of the licensing period or until the application is denied, and during such period:

(a) No additional fees will be required until renewal, at which time an original application for license and fee will be required.

(b) The same special license plates may be used until renewal.))      The firm may request the preincorporation license number ((upon renewal)).

[Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140.      93-08-076, § 308-65-190, filed 4/6/93, effective 5/7/93.]

     The following section of the Washington Administrative Code is repealed:

WAC 308-65-180

Partial sales transfer or disposition of noncorporate licensee.

© Washington State Code Reviser's Office