Original Notice.

Preproposal statement of inquiry was filed as WSR 98-24-007.

Title of Rule: Certificate 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-300 Application for certificate of ownership for abandoned vehicles, 308-56A-305 Law enforcement sale, 308-56A-310 Personal property lien--Chattel, landlord, 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: Patrick J. Zlateff, 1125 Washington Street S.E., Olympia, 902-3718; Implementation and Enforcement: Eric Andersen, 1125 Washington Street S.E., Olympia, 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 businesses 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 303, 1125 Washington Street S.E., Olympia, WA 98507, on May 25, 1999, at 10:00.

Assistance for Persons with Disabilities: Contact Patrick J. Zlateff by May 24, 1999, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Patrick J. Zlateff, Rules Coordinator, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, fax (360) 664-0831, by May 24, 1999.

Date of Intended Adoption: June 19, 1999.

April 16, 1999

Deborah McCurley

Acting Administrator

Title and Registration Services

OTS-3043.1

AMENDATORY SECTION(Amending Order TL/RG/36, filed 10/9/87)

WAC 308-56A-300
Application for ((title)) certificate of ownership for abandoned vehicles.

((An application for title for any abandoned vehicle, as defined in RCW 46.55.010(1), sold by a registered tow truck operator, as defined in RCW 46.55.010(6), must be accompanied by a copy of the properly completed abandoned vehicle report - affidavit of sale submitted and processed in accordance with RCW 46.55.130 (2)(h).)) What ownership document does the department require to issue a certificate of ownership for a vehicle which has been abandoned? A properly completed, department required, abandoned vehicle report - affidavit of sale form, as provided in chapter 46.55 RCW.

[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.]

(((1) An application for title for a vehicle sold by a sheriff pursuant to Washington state law transfers only the interests of the person shown on the bill of sale, or if the former owner is not shown, only the interests of the registered owner of record, and shall be accompanied by:

(a) The sheriff's bill of sale; and

(b) A copy of the court order directing the sale, if any.

(2) The vehicle must be titled in the name of the purchaser shown on the bill of sale.)) (1) What ownership document does the department require to issue a certificate of ownership for a vehicle which has been purchased at a sheriff sale? The department requires, in addition to other documents required by law:

(a) The current certificate of ownership, if it is available; and

(b) A bill of sale from the sheriff 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 the sheriff to sell the vehicle.

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

[Order MV 208, § 308-56A-305, filed 7/31/74.]

((The application for title for any vehicle sold under a personal property lien shall transfer only the registered owner's interest and shall be accompanied by the seller's bill of sale and

(1) Court decree directing sale; or

(2) Affidavit from the seller

(a) In a form approved by the department, and

(b) A statement explaining how the lien was acquired supported by documentation satisfactory to the department.)) (1) What documents does the department require to issue a certificate of ownership for a vehicle which has been processed through the chattel lien procedure? The department requires, in addition to other documents required by law:

(a) A copy of a court order; or

(b) An affidavit of sale chattel/landlord lien form provided or approved by the department.

If there is a lienholder, we require a release of interest from the lienholder. If no release of interest is obtained the lien will be shown on the new certificate of ownership.

(2) When does the department require a court order to issue a certificate of ownership as a result of a chattel lien? A court order is required when:

(a) The vehicle is no longer in the possession of the person/business who is claiming the chattel/landlord lien; or

(b) Someone other than the owner requested the services.

(3) What documents does the department require to issue a certificate of ownership for a vehicle, which has been processed through the landlord lien procedure? The department requires, in addition to other documents required by law:

(a) A copy of a court order; or

(b) An affidavit of sale chattel/landlord lien form provided or approved by the department.

(4) When does the department require a court order to issue a certificate of ownership as a result of a landlord lien? A court order is required when:

(a) The vehicle is no longer in the possession of the person/business who is claiming the landlord lien; or

(b) There is more than one lien claimed against the vehicle.

[Order MV 208, § 308-56A-310, filed 7/31/74.]

((On any application for reissue of title where the name of the registered owner has been changed by court action, a certified copy of the court order authorizing the name change shall be attached to the application.)) What documentation does the department require to change my name shown on the certificate of ownership? In addition to other documents required by law the department requires:

(1) A court order if the name was changed by a court order; or

(2) An 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.

[Order MV 208, § 308-56A-315, filed 7/31/74.]

((Any application for certificate of title, where a change of legal or registered owner of a vehicle is the result of the order of a court, shall be accompanied by a certified copy of the order or a certification from the clerk of court on a department approved form confirming the court's action.  If the last issued certificate of title is not attached to the application, an affidavit of lost or destroyed title or an affidavit explaining the nonavailability of the title document shall also be attached to the application.)) (1) What does the department require if ownership of a vehicle is awarded by court order? In addition to other documents required by law, the department requires:

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

(b) 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;

(c) 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;

(d) In lieu of (b) and (c) of this subsection, the owner of a vehicle may obtain a certificate of ownership in their name from a foreign jurisdiction.

(2) What information needs to be on the court order for the department to accept it? The department requires at minimum, the court order to contain:

(a) The 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? No, the department requires only copies of pages of the final court order containing:

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

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

(c) The page of the order actually signed by the judge/commissioner.

(4) Does the copy of the court order need to be certified? The copy of the court order does not need to be certified.

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

(6) Does the court order remove the security interest recorded on the current certificate of ownership? Unless specifically directed to do so in the court order, the department will not remove a security interest from a certificate of ownership. The security interest will not be transferred to the new owner. The new owner may:

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

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

[Order MV 208, § 308-56A-320, filed 7/31/74.]

((On any application for certificate of title where the former owner of record of the vehicle has been declared legally incompetent, the incompetent's interest in the vehicle shall be released by signature of the court appointed guardian.  A certified copy of the court order appointing the guardian shall be attached to the application.)) (1) How is the interest of a person who has been declared incompetent 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. Example: John Doe GDN, Estate of Mary Smith.

(2) What documentation does the department require to show guardianship has been appointed for a person who has been declared incompetent? The department requires a copy of an order from any district or superior court of competent jurisdiction.

(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 vehicle owned by an individual who has been declared incompetent. 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.

[Order MV 208, § 308-56A-325, filed 7/31/74.]

((On any application for certificate of title where the prior owner's interest has been terminated through bankruptcy proceedings, the interest of the bankrupt in the vehicle may be released by his/her trustee.  If the release is by his/her trustee, a certified copy of the court order appointing the trustee shall be attached to the application.)) Who releases interest in a vehicle when an owner has been declared bankrupt? The owner or a trustee appointed by the court has the authority to release interest on a vehicle certificate of ownership when the owner has been declared bankrupt. The release of interest shall be accompanied by a copy of the court order appointing the trustee.

[Order MV 208, § 308-56A-330, filed 7/31/74.]

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