WSR 99-15-097

PROPOSED RULES

DEPARTMENT OF LICENSING


[ Filed July 21, 1999, 11:25 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 98-24-004.

Title of Rule: Chapter 308-93 WAC, Vessel registration and certificates of title.

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 88.02.070 and 88.02.100.

Summary: Amending WAC 308-93-079 Government exempt vessels, 308-93-090 Rented or leased vessels and 308-93-160 Excise tax exemptions--Indians; and repealing WAC 308-93-100 Retention of registration certificate for leased or rented vessels and 308-93-340 Commercial fishing vessels.

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, (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 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 107, 1125 Washington Street S.E., Olympia, WA 98507, on August 25, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Patrick J. Zlateff by August 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 August 24, 1999.

Date of Intended Adoption: September 20, 1999.

July 21, 1999

Deborah McCurley, Administrator

Title and Registration Services

OTS-3231.2


AMENDATORY SECTION(Amending Order TL/RG 25, filed 5/7/86)

WAC 308-93-079
Government exempt vessels.

((Any vessel owned by the state of Washington or by any county, city, town or other political subdivision of the state of Washington, clearly identifiable as such and used exclusively by that agency, may obtain a title and valid annual registration upon payment of all fees required under chapter 88.02 RCW but shall be exempt from payment of the excise tax.  The department may assign a registration number and issue a decal, which must be displayed as prescribed under WAC 308-93-140.)) (1) If a government agency chooses to display current vessel decals in addition to being clearly identifiable as a government vessel, what fees are required? Government agencies are required to pay filing and registration fees. Excise tax is not required.

(2) If the department issues a Washington registration number and current decals, is the government agency required to display them? Yes, if a registration number and decals are issued, they must be displayed as prescribed in WAC 308-93-140.

[Statutory Authority: RCW 88.02.030, 88.02.070, 88.02.120, 88.02.130, 88.02.140, 88.02.150 and 88.02.100.  86-10-068 (Order TL/RG 25), § 308-93-079, filed 5/7/86.]


AMENDATORY SECTION(Amending Order TL-RG 8, filed 9/13/84)

WAC 308-93-090
Rented or leased vessels.

((If the owner of the vessel is a Washington resident, and the vessel is leased and operated in Washington, it must be titled and registered in Washington.  If the owner is a resident of another state and the vessel is leased and operated in Washington, the reciprocity provisions in WAC 308-93-640 apply.

(1) Rented and leased vessels must be separately registered and titled and display the registration number and decals assigned to the vessel.  A dealer's registration number does not cover a rented or leased vessel.

(2) If the vessel is leased for a period of less than one year the lessor's name may appear on the certificate of title as the sole registered owner with any secured party being shown as the legal owner.

(3) If the vessel is leased for a period of one year or more or if there is an option to purchase the vessel, the application for certificate of title shall be completed with the name of the lessee as registered owner, followed by the word "lessee." The lessor's name will appear as the legal owner.  If the vessel is subject to a security agreement, the application will be completed with the lessor's name appearing immediately below the lessee's name and will be identified by the word "lessor." The address shown will be the lessee's.  The secured party's name and address will be shown in the legal owner's space.)) (1) How does the department differentiate between rented and leased vessels? For the purposes of this section a vessel lease is for a period of one year or more or there is an option to purchase. A vessel rental is for a period of less than one year with no option to purchase.

(2) When must rented or leased vessels be titled and registered in Washington? A rented or leased vessel must be titled and registered in Washington if:

(a) The owner of the vessel is a Washington resident; and

(b) The vessel is operated in Washington.

(3) Must a Washington resident who rents or leases a vessel from a nonresident and operates the vessel on Washington waters obtain a Washington registration for the vessel? If the owner is a resident of another state and the vessel is operated in Washington by a Washington resident, the reciprocity provisions in WAC 308-93-640 and 308-93-056 apply.

(4) Whose name must be shown on the application for certificate of ownership and registration when the vessel is rented? Rented vessels are titled and registered in the name of the owner not the operator. Any secured party is shown as the legal owner.

(5) What documents must a Washington resident carry with them when they rent or lease a Washington registered vessel and operate the vessel on Washington waters?

(a) When the vessel is less than twenty-six feet and rented or leased for less than seven days, the following documents are required to be carried on the vessel:

(i) A copy of the lease or rental agreement signed by the owner or his authorized representative and by the person leasing or renting the vessel and shall contain at least the vessel registration number, the period of time for which the vessel is leased or rented and the hull identification number; and

(ii) A copy of the current registration certificate.

(b) When the vessel is less than twenty-six feet and rented or leased for seven days or more, the following documents are required to be carried on the vessel:

(i) A copy of the lease or rental agreement signed by the owner or his authorized representative and by the person leasing or renting the vessel and shall contain at least the vessel registration number, the period of time for which the vessel is leased or rented and the hull identification number; and

(ii) The original current registration certificate.

(c) When the vessel is twenty-six feet or more and is rented or leased, the following documents are required to be carried on the vessel:

(i) A copy of the lease or rental agreement signed by the owner or his authorized representative and by the person leasing or renting the vessel and shall contain at least the vessel registration number, the period of time for which the vessel is leased or rented and the hull identification number; and

(ii) The original current registration certificate.

(6) Whose name must be shown on the application for certificate of ownership and registration when the vessel is leased?

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

(b) If the vessel 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 second registered owner and shall be followed by the lessor designation. The address shown for the registered owner shall be the lessee's. The secured party's name and address shall be shown as the legal owner.

(7) Do I need to surrender my out-of-state certificate of ownership to the department when I register my leased vessel in Washington? If there is a secured party on the out-of-state certificate of ownership and 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 does not show a secured party or 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 be surrendered and a Washington certificate of ownership will be issued to the lessor/legal owner.

[Statutory Authority: RCW 88.02.070 and 88.02.100.  84-19-026 (Order TL-RG 8), § 308-93-090, filed 9/13/84.  Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-090, filed 11/18/83.]


AMENDATORY SECTION(Amending Order TL-RG-2, filed 6/21/84)

WAC 308-93-160
Excise tax exemptions--Indians.

(1) What definitions does the department apply to this section? For the purposes of this rule, the following words and terms have the following meanings:

(a) "Indian reservation" means all lands, notwithstanding the issuance of any patent, within the exterior boundaries set aside by the United States for the ((exclusive)) use and occupancy of Indian tribes by treaty, law or executive order and which are areas currently recognized as "Indian reservations" by the United States Department of the Interior.

((The following Washington reservations are the only "Indian reservations" currently recognized as such by the United States Department of the Interior: Chehalis, Colville, Hoh, Kalispell, Lower Elwha, Lummi, Makah, Muckleshoot, Nisqually, Nooksack, Ozette, Port Gamble, Port Madison, Puyallup, Quileute, Quinault, Shoalwater, Skokomish, Spokane, Squaxin Island, Swinomish, Tulalip, and Yakima.))

(b) "Indian tribe" means ((any organized)) an Indian nation, tribe, band, or community recognized as an "Indian tribe" by the United States Department of the Interior.

(c) "Indian" means persons ((duly registered)) on the tribal rolls of the Indian tribe occupying an Indian reservation.

(2) ((Vessels owned by an Indian tribe occupying a recognized Washington Indian reservation are exempt from payment of the excise tax imposed by chapter 82.49 RCW.

(3) Vessels owned by Indians having their principal residence within the recognized Washington Indian reservation, for the tribe in which they are duly registered on the tribal rolls, are exempt from payment of the excise tax imposed by chapter 82.49 RCW.

(4) A properly completed affidavit of exemption on a form supplied by the department must be submitted with each vessel's registration application as a condition precedent to exemption from excise tax.  The department may require such other proof of qualification for exemption as it deems necessary.)) What Indian reservations in Washington are recognized by the United States Department of Interior? The following are the only Washington "Indian reservations" currently recognized as such by the United States Department of the Interior: Chehalis, Clallam (Jamestown Council), Clallam (Port Gamble Council), Colville, Hoh, Kalispell, Lower Elwha, Lummi, Makah, Muckleshoot, Nisqually, Nooksack, Puyallup, Quileute, Quinault, Sauk-Suiattle, Shoalwater, Skagit, Skokomish, Spokane, Squaxin, Stillaguamish, Suquamish, Swinomish, Tulalip, and Yakama.

(3) How does an Indian qualify for a vessel excise tax exemption? To qualify for a vessel excise tax exemption, an Indian shall:

(a) Be enrolled as a tribal member of a recognized Washington tribe;

(b) Have their principal residence within the boundaries of the Indian reservation of the tribe of which they are a member;

(c) Be a registered owner of the vessel for which the exemption is requested.

(4) Are vessels owned by or leased to a governing body of an Indian tribe subject to vessel excise tax? No. Vessels owned by or leased to a governing body of an Indian tribe are not subject to vessel excise tax. However, tribal treaty fishing vessels are exempt excise tax and registration as described in WAC 308-93-700 through 308-93-770.

(5) What documentation does the department require from a tribal member to qualify for a vessel excise tax exemption? The department requires a properly completed affidavit of exemption on a form supplied or approved by the department. An affidavit for each vessel must be submitted at the time the exemption is established and at the time of renewal if there is a change of address. The department may require such other proof of qualification for exemption as it deems necessary.

(6) What information must be contained within the affidavit of exemption described in subsection (5) of this section? At the minimum, the affidavit of exemption must include the following:

(a) Description of the vessel including the year and make and either the Washington registration number or the hull identification number;

(b) The registered owner's name, tribe, reservation and enrollment or Bureau of Indian Affairs number;

(c) The principal address of the registered owner as will be shown on the vessel registration certificate;

(d) Signature of the registered owner;

(e) A certification of an authorized tribal authority representing the Indian reservation of the tribe of which the registered owner is a member. The certification must include a statement that the registered owner is an enrolled tribal member and that the address provided by the registered owner is within the boundaries of their reservation;

(f) The position or title of the tribal authority, their telephone number and their signature.

[Statutory Authority: RCW 88.02.070 and 88.02.100.  84-13-086 (Order TL-RG-2), § 308-93-160, filed 6/21/84.  Statutory Authority: 1983 c 7 § 20 and 1983 2nd ex.s. c 3 § 46.  83-23-076 (Order 736-DOL), § 308-93-160, filed 11/18/83.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 308-93-100 Retention of registration certificate for leased or rented vessels.
WAC 308-93-340 Commercial fishing vessels.

© Washington State Code Reviser's Office