Date Adopted: January 6, 2004.

     Purpose: Meet criteria supporting Governor Locke's Executive Order 97-02.

     Citation of Existing Rules Affected by this Order: Amending WAC 308-56A-640.

     Statutory Authority for Adoption: RCW 46.01.110.

     Other Authority: RCW 46.12.020.

      Adopted under notice filed as WSR 03-23-100 on November 18, 2003.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 1, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Effective Date of Rule: Thirty-one days after filing.

January 9, 2004

Fred Stephens

Director

OTS-6803.2

AMENDATORY SECTION(Amending WSR 00-06-020, filed 2/23/00, effective 3/25/00)

WAC 308-56A-640   Odometer disclosure statement.   (1) When is an odometer disclosure statement required? An odometer disclosure statement ((must be completed and submitted with every application for certificate)) is required on all transfers of ownership as required by RCW 46.12.124 and Title 49 of the Code of Federal Regulations (CFR), unless specifically exempted.

     (2) ((May a power of attorney be used to disclose the mileage of a vehicle? The transferee and/or transferor may give a power of attorney to a disinterested third party for the purpose of odometer disclosure.

     A secure power of attorney, power of attorney designated under chapter 11.94 RCW or other power of attorney approved by the department may be used with an odometer disclosure statement with the following limitations:

     (a) The transferor may not give power of attorney to the transferee of the same vehicle for the purpose of odometer disclosure;

     (b) The transferee may not give a power of attorney to the transferor of the same vehicle for the purpose of odometer disclosure;

     (c) A power of attorney may not be used to complete another power of attorney for the purposes of odometer disclosure.

     (3))) What odometer disclosure statement forms will the department accept? The department will accept odometer disclosure statement forms ((approved by the department include, but are not limited to:

     (a) An odometer disclosure statement on a certificate of ownership issued by any jurisdiction which complies with the Federal Truth in Mileage Act; or

     (b) The odometer disclosure/title extension statement; or

     (c) A form issued/approved by a foreign jurisdiction which satisfies the provisions of RCW 46.12.124 or the Federal Truth in Mileage Act.

     (4))) that comply with the Federal Truth in Mileage Act of 1986, Title 49 CFR, and RCW 46.12.124.

Note:

An odometer power of attorney used in compliance with Part 580, Title 49 of the Code of Federal Regulations (CFR) is acceptable, and will not violate the intention of this rule.

     (3) When is an odometer disclosure/title extension statement used? An odometer disclosure/title extension statement is a form used:

     (a) With a certificate of ownership when an odometer disclosure statement is required; and

     (b) ((If the certificate of ownership is unavailable; or

     (c) If all reassignments on the certificate of ownership are full.

     (5) When must a vehicle dealer process an odometer disclosure statement as a transferee? A vehicle dealer must process an odometer disclosure statement as a transferee and obtain the signature of the transferor when taking a vehicle in on trade, purchase, or otherwise acquiring a vehicle.

     (6) When must a vehicle dealer process an odometer disclosure statement as a transferor? The vehicle dealer must complete an odometer disclosure statement as transferor when selling a vehicle at either wholesale or retail.

     (7) How is mileage disclosed when a vehicle is sold through an auction company? The seller/consignor signs as the transferor and the successful bidder/buyer signs as the transferee.

     (8) How long must vehicle dealers and auction companies maintain odometer disclosure statements? The vehicle dealer or vehicle dealers doing business as an auction company must keep all odometer disclosure statement records for five years.

     (9) Can one vehicle dealer representative sign as transferee and transferor for the same transaction? No. One person cannot represent both the transferor and transferee for the purposes of odometer disclosure.

     (10) When are odometer statements needed for leased vehicles? Odometer statements are needed for leased vehicles when; establishing and terminating or buying out a lease. The lessor of a leased vehicle must notify the lessee in writing that the lessee is required to provide to the lessor a written odometer disclosure statement at the termination of the lease. That notice may be given any time after execution of the lease contract and prior to the termination of the lease or transfer of ownership.

     (a) When establishing a lease, the dealer or other transferor must disclose the mileage to the lessee on a written odometer statement, and the lessee must acknowledge the written odometer statement as the transferee.

     (b) When terminating a lease, the lessee as the transferor must disclose the mileage to the lessor and provide the lessor with a copy of the odometer disclosure statement.

     (c) The lessor shall retain each odometer disclosure statement for five years following the date they terminate a lease or transfer ownership of the leased vehicle.

     (11) Who discloses the mileage on the odometer disclosure statement on a lease buyout? The lessee shall disclose the mileage on the odometer disclosure statement as transferee if the lessee purchases the vehicle at the termination of the lease. A transferor signature is not required on the odometer disclosure statement when submitted with the application for certificate of ownership.

     (12) Is an odometer statement required when there is involuntary divestiture? Yes. If the interest of an owner in a vehicle passes to another through involuntary divestiture, an odometer disclosure statement must be completed under RCW 46.12.124 and the rules under 49 Code of Federal Regulations.

     (13) When a vehicle is acquired by involuntary divestiture, are there any circumstances that may allow odometer disclosure statements to be completed by transferee only? Yes. Circumstances that may allow odometer disclosure statements to be completed by only the transferee include, but are not limited to:

     (a) Auction sale of an abandoned vehicle by a registered tow truck operator;

     (b) Chattel/landlord lien;

     (c) Court order;

     (d) Divorce;

     (e) Estate liquidation;

     (f) Repossession;

     (g) Seized vehicle;

     (h) Sheriff sale.)) If all reassignments on the certificate of ownership are full; or

     (c) If the certificate of ownership is unavailable.

     (4) What are the odometer disclosure requirements for dealer transactions? Dealers are required to obtain an odometer disclosure statement from the selling owner (transferor), and acknowledge the disclosure as transferee, when taking a vehicle in on trade, purchase, or otherwise acquiring a vehicle. Dealers must complete an odometer disclosure statement as transferor when selling a vehicle either wholesale or retail.

     (5) What are the odometer disclosure requirements for vehicles sold through an auction company? The seller/consignor completes an odometer disclosure statement as transferor and the successful bidder/buyer acknowledges the disclosure as transferee.

     (6) How long must dealers and auction companies maintain odometer disclosure statement records? Dealers and auction companies must keep odometer disclosure statement records for five years.

     (7) What are the odometer disclosure requirements for leased vehicles? Odometer disclosure is required when establishing, terminating, or buying out a lease.

     (a) When establishing a lease, the lessor must complete an odometer disclosure statement as transferor, and the lessee must acknowledge the disclosure as transferee.

     (b) When terminating or buying out a lease, the lessee must complete an odometer disclosure statement as transferor, and the lessor must acknowledge the disclosure as transferee. Prior to the termination of the lease or any transfer of ownership, the lessor must notify the lessee in writing that the lessee must provide an odometer disclosure statement to the lessor.

     (c) Only the former lessee needs to submit a completed odometer disclosure statement with an application for certificate of ownership following a lease buyout. The former lessee must complete the odometer disclosure statement as transferee. No transferor signature is required.

     (8) May a power of attorney be used to complete an odometer disclosure statement? Yes, with the following restrictions:

     (a) The transferor cannot authorize or give power of attorney to the transferee or dealer to complete the odometer disclosure statement.

     (b) The transferee cannot authorize or give power of attorney to the transferor or dealer to complete the odometer disclosure statement.

     (c) No person may sign an odometer disclosure statement as both the transferor and transferee in the same transaction.

Note:

An odometer power of attorney used in compliance with Part 580, Title 49 of the Code of Federal Regulations (CFR) is acceptable, and will not violate the intention of this rule.

     (9) Is an odometer disclosure statement required when involuntary divestiture occurs? Yes. The seller, although not the owner of record, must complete an odometer disclosure statement as transferor, and the buyer must acknowledge the disclosure as transferee. The department may approve disclosure by the transferee only in extenuating circumstances.

[Statutory Authority: RCW 46.01.110 and 46.12.030. 00-06-020, § 308-56A-640, filed 2/23/00, effective 3/25/00. Statutory Authority: RCW 46.01.110 and 46.12.124. 97-14-034, § 308-56A-640, filed 6/25/97, effective 7/26/97. Statutory Authority: RCW 46.12.030 and 46.01.110. 89-16-074 (Order TL/RG 49), § 308-56A-640, filed 7/31/89, effective 8/31/89.]