WSR 16-11-118
[Filed May 18, 2016, 11:59 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 16-03-003.
Title of Rule and Other Identifying Information: WAC 308-66-210 Statement of change in business structure, ownership interest or control.
Hearing Location(s): Department of Licensing, Business and Professions Division, 405 Black Lake Boulevard, Conference Room 2105, Olympia, WA 98502, on June 21, 2016, at 9:30 a.m.
Date of Intended Adoption: June 23, 2016.
Submit Written Comments to: Sirena Walters, Transportation Services, P.O. Box 9039, Olympia, WA 98507-9039, e-mail, fax (360) 586-6703, by June 20, 2016.
Assistance for Persons with Disabilities: Contact transportation services, TTY (360) 664-0116 or (360) 664-6455.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposal will eliminate the fingerprint requirement for business principals when there is a change in motor vehicle dealer business structure or ownership. This change will streamline the application process without compromising public protection, because the department is able to identify and qualify applicants through other means. Motor vehicle dealers reporting a change in business structure or ownership will avoid the time and expense required to get and submit fingerprint cards for any new principals, corporate officers, directors, managing partners, members or trustees.
In addition, this proposal replaces outdated wording "and legal and financial history" with the words "a personal and criminal history statement." The intent is to use the same words in rule as are used to describe the form used by the department.
Reasons Supporting Proposal: The proposed change will save time and expense for licensees and department staff. The changed wording is consistent with wording on the departmental form, and will help avoid confusion as to the license application and update requirements.
Statutory Authority for Adoption: RCW 46.70.160 Rules and regulations; RCW 46.01.110 Rule-making authority.
Statute Being Implemented: RCW 46.70.041 Application for licenseContents.
Rule is not necessitated by federal law, federal or state court decision.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The department of licensing has full regulatory authority over motor vehicle dealers. The department of revenue and local authorities have an interest in the licensing of qualified individuals as dealers. Simplifying the process and reducing the cost of vehicle dealer license application and update will benefit licensees and the department. Applicant qualifications are effectively ascertained using comprehensive personal and financial record screening processes, making fingerprinting unnecessary. The department of licensing will communicate this proposed change to the department of revenue and local jurisdictions and invite their consideration and input during this rule making.
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Derek Goudriaan, Department of Licensing, Business and Professions Division, 405 Black Lake Boulevard, Olympia, WA 98507, (360) 664-6453.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule making does not impose any new requirements. This rule change will eliminate a requirement for fingerprint cards.
A cost-benefit analysis is not required under RCW 34.05.328. No costs are incurred. This rule change eliminates the requirement for fingerprint cards.
May 18, 2016
Damon G. Monroe
Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-03-119, filed 1/22/07, effective 2/22/07)
WAC 308-66-210 Statement of change in business structure, ownership interest or control.
When do I report such a change? (1) With the exception of a corporation any person licensed as a dealer under chapter 46.70 RCW must, within ten days following any change in its business structure, file a new application and pay original licensing fees under the new entity.
(2) In addition, any new principals including, but not limited to, new corporate officers, directors, managing partners, members or trustees, must, within ten days of assuming such function, file ((an application including fingerprint cards and legal and financial history)) a personal and criminal history statement.
(3) Any person licensed as a vehicle manufacturer pursuant to chapter 46.70 RCW must inform the department in writing within ten days of the change to:
(a) The business structure of the licensee company and must file a new application and pay original licensing fees under the new entity;
(b) The mailing address of the licensee;
(c) The name and address of employees or agents designated pursuant to RCW 46.70.041 and 46.70.101 to provide service or repairs to vehicles located within the state of Washington. However, if the licensee requires warranty service to be performed by all of its dealers pursuant to current service agreements on file with the department, it need not advise the department of changes in such employees or agents.
(4) Any and all changes affecting the applicability of a surety bond shall be reflected by appropriate endorsement to such bond.