Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-05-014.

     Title of Rule: Chapter 308-56A WAC, Certificates of title -- Motor vehicles, etc.

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

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

     Statutory Authority for Adoption: RCW 46.01.110, 46.12.101.

     Summary: Amending WAC 308-56A-070 Leased vehicles, 308-56A-300 Application for certificate of ownership for abandoned vehicles, 308-56A-305 Law enforcement sale, 308-56A-315 Name change, 308-56A-320 Transfer by court order, 308-56A-325 Owner incompetent, and 308-56A-330 Owner bankrupt.

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

     Name of Agency Personnel Responsible for Drafting: Katherine Iyall Vasquez, 1125 Washington Street S.E., Olympia, (360) 902-3718; Implementation and Enforcement: Eric Andersen, 1125 Washington Street S.E., Olympia, (360) 902-4045.

     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 business 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 May 7, 2003, at 1:30 p.m.

     Assistance for Persons with Disabilities: Contact Katherine Iyall Vasquez by TTY (360) 664-8885 or (360) 902-3718.

     Submit Written Comments to: Katherine Iyall Vasquez, Rules Manager, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by May 6, 2003.

     Date of Intended Adoption: June 3, 2003.

April 1, 2003

D. McCurley, Administrator

Title and Registration Services

by Katherine Vasquez

OTS-6277.1

AMENDATORY SECTION(Amending WSR 99-08-064, filed 4/5/99, effective 5/6/99)

WAC 308-56A-070   Leased vehicles.   (1) How are the lessee and lessor designated on Washington certificates of ownership?

     (a) The ((application for)) certificate of ownership ((shall)) will show the name of the lessee as registered owner, followed by ((the word lessee)) LSE. The name of the lessor ((shall)) will be shown as the secured party or legal owner, followed by ((the word lessor)) LSR.

     (b) If the vehicle is subject to a security agreement((, the application shall be completed as above with)) the certificate of ownership will show the lessor's name immediately below the lessee's name as ((second)) a subsequent registered owner ((and shall be)) followed by ((the word lessor)) LSR. The address shown ((shall)) will be the lessee's. The secured party's name and address ((shall)) will be shown as the legal owner.

     (c) Dealers and persons engaged in the business of vehicle leasing may simply ((show the lessor)) be shown as sole registered owner if a copy of the lease or rental agreement is attached to the application. This does not apply if the lease contains an option to purchase or if it is for more than one year.

     (2) How ((is a lessee and sublessee designated on the Washington certificate of ownership?

     (a) Lessees who enter into a lease agreement with another party will be shown on a certificate of ownership as the registered owner followed by the designation LESSEE. The sublessee will be shown on a certificate of ownership as the registered owner followed by the designation SUBLESSEE. Only the sublessee must sign the application for certificate of ownership.

     (b) The name of the lessor shall be shown as either:

     (i) The secured party or legal owner, followed by the word lessor; or

     (ii) If the vehicle is subject to a security agreement, the application shall be completed as above with the lessor's name immediately below the lessee's name as third registered owner and shall be followed by the word lessor. The address shown shall be the sublessee's. The secured party's name and address shall be shown as the legal owner.

     (3))) does a lien holder release interest on a leased vehicle? To release a lien on a vehicle that is being leased the lien holder must follow procedures outlined in WAC 308-56A-265.

     (3) What if a sublessee is to be shown on the Washington certificate of ownership?

     (a) Sublessees will be shown on the certificate of ownership as first registered owner, followed by SUBLSE. Lessees, lessor, and secured parties will be shown successively as described in subsection (1) of this section.

     (b) The address of the registered owner will be that of the sublessee.

     (c) Any person to be shown on the certificate of ownership as a registered owner as described in subsections (1) and (3)(a) of this section must sign the application for certificate of ownership.

     (4) Do I need to surrender my out-of-state certificate of ownership to the department when I register my leased vehicle in Washington? If the out-of-state certificate of ownership shows lessee and lessor designations as required by Washington state law or rule, the certificate of ownership need not be surrendered. A certificate of registration will be issued, however, a Washington certificate of ownership will not. If the out-of-state certificate of ownership is not in name agreement or does not show lessee and lessor designations as required by Washington law or rule, the out-of-state certificate of ownership ((shall)) must be surrendered and a Washington certificate of ownership will be issued to the lessor/legal owner.

[Statutory Authority: RCW 46.01.110. 99-08-064, § 308-56A-070, filed 4/5/99, effective 5/6/99. Statutory Authority: RCW 46.01.110 and 46.12.030. 97-03-076, § 308-56A-070, filed 1/15/97, effective 2/15/97; Order MV 208, § 308-56A-070, filed 7/31/74.]

     (2) Certificate of ownership application and other documents required by RCW 46.12.030(3).

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, § 308-56A-300, filed 6/21/99, effective 7/22/99. Statutory Authority: RCW 46.01.110 and 46.12.101 as amended by 1987 c 127 § 1. 87-21-012 (Order TL/RG/36), § 308-56A-300, filed 10/9/87; Order MV 208, § 308-56A-300, filed 7/31/74.]

     (a) Documents required by chapters 46.01 and 46.12 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 vehicle was sold in accordance with chapter 63.32, 63.35 or 63.40 RCW; ((or))

     (c) A copy of an order from any district or superior court of any county of this state authorizing law enforcement to sell the vehicle; or

     (d) The current certificate of ownership, if it is available.

     (2) Does the sale of a vehicle at a law enforcement sale remove any previous security interest? Yes, the security interests are released ((upon)) at the time of sale ((of a vehicle at a law enforcement sale)).

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, § 308-56A-305, filed 6/21/99, effective 7/22/99; Order MV 208, § 308-56A-305, filed 7/31/74.]

     (1) Documents required by chapters 46.01 and 46.12 RCW((, the department requires:

     (1) A court order)); and

     (2) If the name was changed by a court order, a copy of that order; or

     (((2) An)) (3) A notarized/certified 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 46.01.110 and 46.12.101. 99-13-150, § 308-56A-315, filed 6/21/99, effective 7/22/99; Order MV 208, § 308-56A-315, filed 7/31/74.]

     (a) A copy of the Washington state court order, or certification from the clerk of the court confirming the courts action((, for vehicles titled in Washington state)); or

     (b) Finding of fact, conclusion of law and decision from the Washington state office of administrative hearings per RCW 46.12.330 for vehicles titled in Washington state; or

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

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

     (((d) Obtain)) (e) A certificate of ownership from a foreign jurisdiction in ((their)) the applicant's name ((from a foreign jurisdiction)).

     (2) What information ((needs to be)) does the department require on the court order ((for the department to accept it)) or legal decision as defined in RCW 46.12.330? ((The department requires)) At a minimum, the court order ((to)) or legal decision must contain:

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

     (b) A description of the vehicle(s) awarded((, including the vehicle identification number or Washington license plate, 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 or legal decision as defined in RCW 46.12.330? No, the department requires only copies of pages of the final court order ((containing)) or legal decision that contain:

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

     (b) If the court order or legal decision identifies any collateral agreements, ((those portions of the collateral agreement identifying the vehicle and its disposition,)) include the first page ((and)), the signature page ((of that collateral agreement)), and vehicle description; and

     (c) The page of the order or decision actually signed by the judge((/commissioner)) or legal official.

     (4) Does the copy of the court order or legal decision need to be certified? ((The copy of the court order does not need to be certified.)) No.

     (5) What does the department require if the court order or legal decision does not describe the vehicle by vehicle identification number (VIN) or Washington license plate number? The department requires a certified or notarized statement from the owner describing the vehicle in the court order or legal decision by year, make and VIN or vehicle license plate number.

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

     (a))) will remove the security interest only if the court order or legal decision specifically directs the department to do so.

     (((b) Not remove the security interest if not specified to do so in the court order.)) (7) How do I get the security interest removed if the court order or legal decision does not specifically direct the department to do so? The new owner may:

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

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

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, § 308-56A-320, filed 6/21/99, effective 7/22/99; Order MV 208, § 308-56A-320, filed 7/31/74.]

     (2) How is the interest of a person who has been declared incompetent by the court recorded on the certificate of ownership issued by the department? The department will record ((on the certificate of ownership)) the name of the court appointed guardian(s) followed by the designation GDN and the name of the estate of the person declared incompetent on the certificate of ownership. Example: John Doe GDN, Estate of Mary Smith.

     (3) Who releases interest on a vehicle ownership document if the owner is declared incompetent? Only the court appointed guardian may release interest in ((a)) the vehicle ((owned by an individual who has been declared incompetent)). If guardianship is not recorded on the current certificate of ownership, a copy of the court order appointing the guardian must accompany the release of interest ((must be accompanied by a copy of the court order appointing the guardian if guardianship is not recorded on the current certificate of ownership)). The guardian may not appoint any person through power of attorney to release interest.

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, § 308-56A-325, filed 6/21/99, effective 7/22/99; Order MV 208, § 308-56A-325, filed 7/31/74.]

[Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, § 308-56A-330, filed 6/21/99, effective 7/22/99; Order MV 208, § 308-56A-330, filed 7/31/74.]

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