Original Notice.

Preproposal statement of inquiry was filed as WSR 00-24-110.

Title of Rule: Chapter 308-93 WAC, Vessel registration and certificate of title and 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 88.02.070, 88.02.100.

Summary: Amending WAC 308-93-370 Format required for name and address -- Names separated by the words "and," or "or" or the slash symbol (/), 308-93-380 Format required for name and address -- Ownership in joint tenancy, 308-93-400 Multiple security interests, 308-93-445 Personal property lien -- Chattel, landlord, 308-93-500 Name change, 308-93-510 Transfer by court order and 308-56A-310 Personal property lien -- Chattel, landlord; and new WAC 308-93-490 Law enforcement sale.

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.

Name of Proponent: , governmental.

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 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 September 27, at 10:30 a.m.

Assistance for Persons with Disabilities: Contact Katherine Iyall Vasquez by September 26, 2001, 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 September 26, 2001.

Date of Intended Adoption: October 18, 2001.

August 17, 2001

Deb McCurley, Administrator

Title and Registration Services

by Katherine Iyall Vasquez

OTS-5065.1

AMENDATORY SECTION(Amending WSR 01-08-022, filed 3/27/01, effective 4/27/01)

WAC 308-56A-310   Personal property lien -- Chattel, landlord.   (1) What is a chattel lien? For the purposes of this section a "chattel lien" means: A lien obtained by any person, firm or company who provides services or materials for a vehicle at the owner's request, in the event of nonpayment by the owner. A person or firm that provides services or material for a vehicle at the owner's request may obtain a lien on such vehicle. In the event of nonpayment the lien may be foreclosed as provided by law.

(2) What document((s)) does the department require to issue a certificate of ownership for a vehicle ((which has been processed)) obtained through the chattel lien ((procedure)) process? ((The department requires,)) In addition to other documents required by ((chapters 46.01 and 46.12 RCW)) law or rule the department requires:

(a) A completed affidavit of sale chattel/landlord lien form provided or approved by the department; or

(b) A copy of a court order awarding the vehicle to the claimant. ((The court order must state specifically that the lien shall be removed. The court order is required to complete subsection (3) of this section. If the court order does not indicate removal of the security interest, the new owner may:

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

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

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

(3) When ((does the department require)) is a court order required by the department 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 of record requested the services; or

(c) There is an existing lien holder on record; or

(i) In order to remove an existing lien holder from record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

(A) Negotiate with the lien holder to obtain either a release of interest or a new security agreement; or

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

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

(i) In order to remove an existing lien holder from record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

(A) Negotiate with the lien holder to obtain either a release of interest or a new security agreement; or

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

(4) What is a landlord lien? For the purposes of vehicle licensing and titling, a landlord lien is an encumbrance on a vehicle as security for the payment of moneys owing for rent.

(5) What documents does the department require to issue a certificate of ownership for a vehicle, ((which has been processed)) obtained through the landlord lien ((procedure)) process? ((The department requires,)) In addition to other documents required by ((chapters 46.01 and 46.12 RCW)) law or rule the department requires:

(a) A completed affidavit of sale chattel/landlord lien form provided or approved by the department; or

(b) A copy of a court order((; or

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

(6) 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; or

(c) There is more than one lien claimed against the vehicle.)) The vehicle owner of record is someone other than the person owing for rent; or

(c) There is an existing lien holder on record.

(i) In order to remove an existing lien holder from record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

(A) Negotiate with the lien holder to obtain either a release of interest or a new security agreement; or

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

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

(i) In order to remove any existing lien holders from the record, the court order must specifically authorize the removal of any lien. If it does not, the claimant may:

(A) Negotiate with the lien holders to obtain either a release of interest or a new security agreement; or

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

(7) Why is a court order required for a landlord lien if there is a lien holder on the existing record? In order to record a secured interest on a Washington certificate of ownership, there must be a security agreement between the registered owner and the legal owner except for government liens as provided in law. The security agreement on record was not established between the legal owner and the new applicant.

[Statutory Authority: RCW 46.01.110, 88.02.070 and 88.02,100 [88.02.100]. 01-08-022, 308-56A-310, filed 3/27/01, effective 4/27/01. Statutory Authority: RCW 46.01.110 and 46.12.101. 99-13-150, 308-56A-310, filed 6/21/99, effective 7/22/99; Order MV 208, 308-56A-310, filed 7/31/74.]

OTS-5047.1

AMENDATORY SECTION(Amending WSR 99-22-059, filed 11/1/99, effective 12/2/99)

WAC 308-93-370   Format required for name and address -- Names separated by the words "and," "or," or the slash symbol (/).   (1) Does the department use the words "and," "or," or the slash symbol (/) when recording multiple interests on a certificate of ownership? The department no longer uses these designations when recording ownership interest. For those certificates of ownership which ((may)) have been issued using one of these designations, any registered owners ((so)) shown are considered to have equal registered owner interest in the vessel and any secured parties ((so)) shown are considered to have equal secured party interest in the vessel.

(2) Will the department use the words "and," "or," or the slash symbol (/) if another jurisdiction has recorded multiple interests on the foreign certificate of ownership using one of these designations? No. The department does not use these designations when recording ownership interest.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-370, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-370, filed 11/18/83.]

(2) How is joint tenancy with rights of survivorship shown on the application for certificate of ownership? The application for certificate of ownership ((shall)) shows the name of every owner with the phrase "Joint tenants with rights of survivorship" spelled out. The address of only one owner can be accepted on the application. Example 1:

Doe, John

Doe, Jane

Doe, Mary

Joint tenants with rights of survivorship; or

Example 2:

Doe, John

Doe, Jane

Joint tenants with rights of survivorship.

(3) How is joint tenancy with rights of survivorship shown on the certificate of ownership? The certificate of ownership will be printed showing the abbreviation "JTWROS."

(((4) If one of the owners dies, what additional documentation does the department require to transfer the certificate of ownership into the name(s) of the surviving owner(s)? The department requires a copy of the death certificate.))

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-380, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-380, filed 11/18/83.]

(2) How are additional security interests shown on the certificate of ownership? Additional security interests are shown on the next name line, directly after the first security interest. Only the address of the first security interest ((shall be)) is shown on the certificate of ownership.

(3) If the lien has been satisfied with one of the secured parties shown on a certificate of ownership, how is their interest released? When the lien has been satisfied with one of the secured parties shown on a certificate of ownership, that secured party's interest ((shall)) will be released on the certificate of ownership or a department approved release of interest form. The remaining secured party(s) shall, within ten days of receiving the properly released certificate of ownership, apply for reissue of the certificate of ownership showing the remaining secured parties' name and address.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-400, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-400, filed 11/18/83.]

(2) What documentation does the department require to issue a certificate of ownership for a vessel obtained through the chattel lien process? In addition to other documents required by law or rule, the department requires:

(a) A completed affidavit of sale chattel/landlord lien form provided or approved by the department.

(b) A copy of a court order awarding the vessel to the claimant.

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

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

(b) Someone other than the owner of record requested the services; or

(c) There is an existing lien holder on record; or

In order to remove an existing lien holder from the record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

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

(ii) Petition either the court that issued the original order, or a higher court to have the matter of secured interest resolved; or

(d) There is more than one lien claimed against the vessel.

In order to remove an existing lien holder from record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

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

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

(4) What is a landlord lien? For the purposes of vessel licensing and titling, a landlord lien is an encumbrance on a vessel as security for the payment of moneys owing for rent.

(5) Can a landlord lien be attached to a vessel adrift? Vessels adrift as defined in RCW 88.26.020 do not qualify for landlord liens.

(6) Can a landlord lien be attached to a vessel moored in a private marina? No, lien foreclosures are defined in RCW 60.10.020 and 61.10.023.

(7) What documents does the department require to issue a certificate of ownership for a vessel obtained through the landlord lien procedure? In addition to other documents required by law or rule the department requires:

(a) A completed affidavit of sale chattel/landlord lien form provided or approved by the department; or

(b) A copy of a court order awarding the vessel to the claimant:

In order to remove an existing lien holder from the record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

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

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

(8) 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 vessel is no longer in the possession of the person/business who is claiming the landlord lien; or

(b) The vessel owner of record is someone other than the person owing for rent; or

(c) There is an existing lien holder on record.

In order to remove an existing lien holder from the record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

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

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

(d) There is more than one lien against the vessel.

In order to remove an existing lien holder from the record, the court order must specifically authorize the removal of the lien. If it does not, the claimant may:

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

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

(9) Why is a court order required for a landlord lien if there is a lien holder on the existing record? In order to record a security interest on a Washington certificate of ownership, there must be a security agreement between the registered owner and the legal owner except for government liens as provided in law. The security agreement on record was not established between the legal owner and the new applicant.

[]

(2))) What ownership documents does the department require to issue a certificate of ownership for a vessel, which has been purchased at a law enforcement sale? ((The department requires,)) In addition to other documents and fees required by chapters 46.01 and 88.02 RCW the department requires:

(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 vessel was sold in accordance with chapter 63.32, 63.35 or 63.40 RCW; or

(c) A copy of an order, describing the vessel, from any district or superior court of any county of this state authorizing law enforcement to sell the vessel.

(((3))) (2) Does the sale of a vessel at a law enforcement sale remove any previous security interest? Yes, security interests are released upon the sale of a ((vehicle)) vessel at a law enforcement sale. No additional releases of interest are required from the secured party.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-490, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-490, filed 11/18/83.]

(1) A copy of a court order from any district or superior court of this state authorizing the change of name if the name was changed by a court action; 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.

(3) What documentation does the department require to change the name of a business or corporation as shown on the certificate of ownership?

(a) If two or more businesses merge and a new UBI number is created, applications for each vessel in the new company name and documentation substantiating the name change and/or merger. All certificates of ownership changing from the previous business name(s) to the new business are processed as transfers.

(b) If two or more businesses merge and one of the UBI numbers is retained for the new business, notarized signatures are required on the new application. The certificate of ownership transactions for the business whose UBI number is retained will be processed as name change transactions; certificate of ownership transactions from the other business will be processed as transfers.

(c) If a business has changed names without a change in ownership, documentation such as a copy of the new business or corporate license must be submitted with the application for certificate of ownership and the existing ownership document or an affidavit in lieu. The certificate of ownership will be reissued in the new business name.

[Statutory Authority: RCW 88.02.070 and 88.02.100. 99-22-059, 308-93-500, filed 11/1/99, effective 12/2/99; 84-13-086 (Order TL-RG-2), 308-93-500, filed 6/21/84. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-500, filed 11/18/83.]

(a) If the vessel is most recently titled in Washington, a copy of the ((Washington)) court order from any district or superior court of any county of this state ((court order)), or certification from the clerk of the court confirming the courts' action. The court order or certification from the clerk must describe the vessel and to whom the vessel is awarded((, provided the vessel is most recently titled in Washington)); or

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

(c) ((The court order to be filed in accordance with RCW 6.36.025)) If the court order and vessel ((certificate of ownership)) for which ownership was most recently established are not from the same jurisdiction, the court order is required to be filed in accordance with RCW 6.36.025 prior to being submitted with the application for certificate of ownership((; or

(d) The applicant obtains 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 the court order to contain, at a minimum:

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

(b) A description of the vessel(s) awarded, including the hull identification number and/or Washington registration number, 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) What does the department require if the court order does not describe the vessel by vessel identification number or Washington registration number? The department requires a certified or notarized statement from the person awarded the vessel. The statement must describe the vessel in the court order by year, make, and hull identification number as a minimum.

(4) 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 vessel 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))) (5) 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 vessel by vessel identification number or Washington registration number? The department requires a certified or notarized statement from the person awarded the vessel. The statement shall describe the vessel in the court order by year, make and hull identification number as a minimum.))

(6) ((Does the court order allow)) Will the department ((to)) remove the security interest recorded on the current certificate of ownership with a court order? The department ((shall)) will:

(a) Remove the security interest if the court order specifically directs the department to do so.

(b) Not remove the security interest if not specified to do so in the court order((. The new owner may:

(i) Negotiate)) unless the new owner has successfully negotiated with a secured party to obtain either a release of interest or a new security agreement((;)) or (((ii))) petition the original court that issued the order, or higher court, to have the matter of the secured interest resolved.

[Statutory Authority: RCW 88.02.070. and 88.02.100. 99-22-059, 308-93-510, filed 11/1/99, effective 12/2/99. Statutory Authority: 1983 c 7 20 and 1983 2nd ex.s. c 3 46. 83-23-076 (Order 736-DOL), 308-93-510, filed 11/18/83.]

Washington State Code Reviser's Office