Date of Adoption: June 13 [5], 2002.

     Purpose: Chapter 245 of the 2002 regular legislative session. Implementation of the requirements of SB 6530.

     Citation of Existing Rules Affected by this Order: Amending WAC 308-56A-460, 308-56A-500, and 308-63-090.

     Statutory Authority for Adoption: RCW 46.12.005.

     Other Authority: RCW 46.12.070.

     Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

     Reasons for this Finding: Implementation of requirements of SB 6530, definition and use of salvage vehicle.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 3, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 3, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
     Effective Date of Rule: June 13, 2002.

June 5, 2002

Fred Stephens

Director

OTS-5698.3

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, 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.

     (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.

     (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; 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 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 report as if the report indicated that the market value threshold was met.

     (3) What is the "market value threshold amount" and what criteria will be used to increase this amount? The "market value threshold amount" is six thousand five hundred dollars effective June 13, 2002, as set by RCW 46.12.005 and will be increased based on 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 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.]

OTS-5310.5

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.

     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).

     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:

     (i) Junk;

     (ii) Destroyed;

     (iii) 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.

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

     (((3))) (4) "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))) (5) "Department" means the same as described in RCW 46.04.162.

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

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

     (((7))) (8) "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))) (9) "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.

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

     (((9))) (11) "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.

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

     (((10))) (13) "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))) (14) "Registered owner" means the same as described in RCW 46.04.460.

     (((12))) (15) "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))) (16) "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 does the department assign to vehicles? Brands used by the department include, but are not limited to: Former exempt, former for hire, former taxicab, rebuilt, street rod, not eligible for road use, nonconformity or safety defect, as defined in WAC 308-56A-500.

     Vehicles not reported to DOL as destroyed and 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 does the department carry 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.

[]

OTS-5718.2

AMENDATORY SECTION(Amending WSR 00-13-019, filed 6/12/00, effective 7/13/00)

WAC 308-63-090   Wreckers -- Records and procedures for monthly reports.   What records must I keep and how do I handle the monthly report? (1) Wrecker books and files. The wrecker shall maintain books and files which shall contain the following:

     (a) A record of each vehicle or part acquired giving:

     (i) A description of the vehicle or part by make, model, year, and for major component parts, except core parts, the vehicle identification number and "yard number" assigned at the time the vehicle or major component part was placed in the wrecking yard;

     (ii) The date purchased or acquired by the wrecker, and the name of the person, firm or corporation from which the vehicle or part was obtained;

     (iii) The certificate of title number if registered in a title state, or registration number if a nontitle state; or description of the document used in lieu of title, such as an affidavit of sale or a bill of sale for a vehicle or vehicle part; ((and))

     (iv) The name of the state and license number in the state that a vehicle was last registered; and

     (v) A statement indicating whether any used car or truck at least six years but not more than twenty years old met the market value threshold amount immediately before it was wrecked, destroyed or damaged, as required by RCW 46.12.070 and WAC 308-56A-460(3). If this statement is not provided, the department will treat the report as if the wrecker indicated that the market value threshold was met.

     (b) A record of the disposition of the motor, body, and major component parts giving the name of the person purchasing the part(s), if any. Sales to scrap processors shall be accompanied by an invoice or bill of sale, listing each vehicle by its yard number. The wrecker shall retain a copy of such invoice or bill of sale for purposes of inspection for three years.

     These records will be subject to inspection by authorized representatives of the department and law enforcement officials during regular business hours. The foregoing information shall be entered in the wrecker's records within two business days of the event requiring the entry, such as receipt of a vehicle.

     (2) Must furnish written reports. By the tenth of the month following acquisition of vehicles entered into the wrecking yard inventory, each wrecker will submit a report on the form prescribed by the department documenting that those vehicles were entered into the wrecking yard inventory during the month. Vehicles being held in the segregated storage area awaiting ownership documents, pursuant to WAC 308-63-070(8), will not be reported. The report shall be made in duplicate. The original shall be sent to the department and the duplicate retained for the wrecker's files. If no vehicles are acquired during the month, the monthly report must be sent in stating "none." The report shall give such information for vehicles only as the wrecker is required to keep by subsection (1)(a)(i), (ii), (iii), ((and)) (iv), and (v) of this section((; it shall)). The report must be accompanied by properly endorsed certificates of title or other adequate evidence of ownership and registration certificates: Provided, That records on acquisitions and sales of vehicle parts need not be included in reports submitted to the department but records shall be kept for three years from date of purchase and available for inspection.

     (3) Identity of vehicles in yard. All vehicles placed in the yard shall be identified by a yard number as assigned in the wrecking records with numerals marked so as to be clearly visible and legible. If a part of a vehicle is sold which has the number on it, the yard number of the vehicle shall be remarked in another location on the vehicle.

[Statutory Authority: RCW 46.80.140. 00-13-019, § 308-63-090, filed 6/12/00, effective 7/13/00. Statutory Authority: RCW 46.55.190, 46.79.080 and 46.80.140. 93-08-076, § 308-63-090, filed 4/6/93, effective 5/7/93.]

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