EXPEDITED RULES
Title of Rule: Motor vehicle fuel tax and special fuel tax bonding requirements, chapters 308-72 and 308-77 WAC.
Purpose: To implement the provisions of SHB 1407.
Statutory Authority for Adoption: RCW 82.36.435 and 82.38.260.
Summary: These rules set forth the application process for fuel tax bond waiver and the criteria for approval and disapproval by the Department of Licensing.
Reasons Supporting Proposal: SHB 1407 directs the Department of Licensing to adopt rules setting forth the internal process and criteria for applying for, reviewing, and approving or disapproving applications for fuel tax bond waivers.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jeff Beach, 2424 Bristol Court, Olympia, WA, 664-1844.
Name of Proponent: Department of Licensing, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: These rules will provide instructions and pertinent information to persons applying for a waiver of the requirement to maintain a fuel tax bond with the Department of Licensing. It provides the department with the criteria for approving or disapproving the bond waiver request.
Proposal does not change existing rules.
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Art Farley, Department of Licensing, P.O. Box 9036, Olympia, WA 98507 , AND RECEIVED BY December 4, 2001.
October 1, 2001
Thao Manikhoth
Administrator
OTS-5220.1
NEW SECTION
WAC 308-72-50901
Waiving of bond requirement.
(1) Can the
department waive the requirement to maintain a fuel tax bond?
Yes. The department may waive the bonding requirement of a
licensed distributor if, upon determination by the department,
the licensed distributor has sufficient financial instruments to
extinguish any Washington state fuel tax liability, including
penalties and interest, incurred while acting as a licensed
distributor.
(2) What is considered a financial instrument? For purposes of this rule, a financial instrument is either:
(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability incurred by the distributor; or
(b) Lawful money of the United States, or bonds or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.
(3) How can I qualify to have my bonding requirement waived? You may qualify to have your bonding requirement waived upon:
(a) Filing a notarized statement with the department stating that your line(s) of credit with your financial institution(s) and your fuel supplier(s) is at a sufficient amount to include product cost and state fuel taxes. You must indicate the name of the financial institution(s), the account number(s) and dollar value of your line(s) of credit, and the name(s) of your fuel supplier(s). You must authorize the department to access this information with your financial institution(s) and supplier(s) for verification purposes; or
(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department as security for performance under chapter 82.36 RCW; and
(c) Providing the department with documentation, satisfactory to the department, indicating that the supplier(s) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line(s) of credit, if applicable.
(4) What if the department denies my request for a waiver of the bond requirement? You can appeal this decision as provided in chapters 82.36 RCW and 308-72 WAC.
(5) What if I no longer maintain a line of credit or financial instrument? You must provide a surety bond to the department in the amount required by chapter 82.36 RCW, with a coverage commencement date on or before the date the line of credit or financial instrument was extinguished.
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OTS-5221.1
NEW SECTION
WAC 308-77-04401
Waiving of bond requirements.
(1) Can the
department waive the requirement to maintain a fuel tax bond?
Yes. The department may waive the bonding requirement of a
licensed distributor if, upon determination by the department,
the licensed distributor has sufficient financial instruments to
extinguish any Washington state fuel tax liability, including
penalties and interest, incurred while acting as a licensed
distributor.
(2) What is considered a financial instrument? For purposes of this rule, a financial instrument is either:
(a) A line of credit with a financial institution or supplier covering the cost of product and fuel tax liability incurred by the distributor.
(b) Lawful money of the United States, or bonds or other obligations of the United States, the state, or any county of the state, deposited with the state treasurer.
(3) How can I qualify to have my bonding requirement waived? You may qualify to have your bonding requirement waived upon:
(a) Filing a notarized statement with the department stating that your line(s) of credit with your financial institution(s) and your fuel supplier(s) is at a sufficient amount to include product cost and state fuel taxes. You must indicate the name of the financial institution(s), the account number(s) and dollar value of your line(s) of credit, and the name(s) of your fuel supplier(s). You must authorize the department to access this information with your financial institution(s) and supplier(s) for verification purposes; or
(b) Depositing in a financial institution an amount equal to the estimated monthly fuel tax payments and assigning this deposit to the department, as security for performance under chapter 82.38 RCW; and
(c) Providing the department with documentation, satisfactory to the department, indicating that the supplier(s) will not allow the licensed distributor to incur a liability, including fuel tax, in excess of the line(s) of credit, if applicable.
(4) What if the department denies my request for a waiver of the bond requirement? You can appeal this decision as provided in chapters 82.38 RCW and 308-77 WAC.
(5) What if I no longer maintain a line of credit or financial instrument? You must provide a surety bond to the department in the amount required by chapter 82.38 RCW, with a coverage commencement date on or before the date the line of credit or financial instrument was extinguished.
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