Original Notice.

     Preproposal statement of inquiry was filed as WSR 01-19-002.

     Title of Rule: Chapter 308-90 WAC, Vessel dealer registration.

     Purpose: Further review of current rules to ensure necessity, effectiveness, efficiency, clarity, intent, coordination with other jurisdictions and agencies, cost benefits and fairness in accordance with Governor Gary Locke's Executive Order 97-02.

     Statutory Authority for Adoption: RCW 88.02.100.

     Summary: Review of current rules governing vessel dealers.

     Reasons Supporting Proposal: Governor's Executive Order 97-02 for WAC review.

     Name of Agency Personnel Responsible for Drafting: Cal Sanders, 2000 West 4th, Olympia, (360) 664-6459; Implementation: Charles Coach, 2000 West 4th, Olympia, (360) 664-6453; and Enforcement: Mykel Gable, 2000 West 4th, Olympia, (360) 664-6451.

     Name of Proponent: , governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: Review of WAC governing vessel dealers in accordance with Executive Order 97-02.

     Proposal Changes the Following Existing Rules: Several sections are changed in light of the review for necessity, effectiveness, clarity, intent, coordination with other agencies, cost benefits and fairness.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposal does not impose additional duties on the vessel dealer industry.

     RCW 34.05.328 does not apply to this rule adoption.

     Hearing Location: Department of Licensing, Dealer Services, Large Conference Room, 2000 West 4th, Olympia, WA 98502, on February 6, 2002, at 11:00 a.m.

     Assistance for Persons with Disabilities: Contact Linda Mason by February 4, 2002, TDD (360) 664-8885, or (360) 664-6455.

     Submit Written Comments to: Cal Sanders, Dealer Services, Department of Licensing, P.O. Box 9039, Olympia, WA 98507-9039, fax (360) 586-6703, by February 4, 2002.

     Date of Intended Adoption: February 20, 2002.

December 19, 2001

Fred Stephens

Director

OTS-5280.1

AMENDATORY SECTION(Amending Order DLR-162, filed 1/19/88)

WAC 308-90-040   Dealer registration application form.   How do I apply for a vessel dealer registration?

     (1) Any firm making application for registration as a vessel dealer under chapter 88.02 RCW shall, on a form provided by the department, provide the following information:

     (a) The name and business address of the firm and a list of additional business addresses of the firm, if any.

     (b) The name of all owners of ten percent or more of the assets of the firm and title(s) of office held, if any.

     (c) The firm's business structure and place of organization.

     (d) The ((business registration)) uniform business identification number issued by the department of ((revenue)) licensing.

[Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-040, filed 1/19/88. Statutory Authority: 1983 c 7. 83-14-061 (Order 722 DOL), § 308-90-040, filed 7/1/83.]

     (1) The department shall assign a registration number to each firm registered as a dealer. In addition, the department shall issue a registration card, as ordered by the dealer, indicating the dealer number and separate suffix letters. The registration number shall be consistent with the standard numbering system for vessels set forth in volume 33, part 174, of the Code of Federal Regulations. (Example: WN 7XXX -- )

     (2) Dealer registration numbers may be displayed on vessels owned by the dealer when being operated on the water pursuant to RCW 88.02.023. No two vessels may display the same dealer registration number at the same time. The dealer registration card corresponding to the displayed registration number must be kept inside the vessel during such operation.

     (3) Dealer registration numbers shall be displayed in three inch block numbers/letters on both sides of the forward one-half of the vessel. Dealer registration numbers may be affixed to a removable display fixture. The numbers/letters shall be displayed in a single line.

[Statutory Authority: RCW 88.02.100. 96-24-042, § 308-90-070, filed 11/27/96, effective 12/28/96. Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-070, filed 1/19/88. Statutory Authority: 1983 c 7. 83-14-061 (Order 722 DOL), § 308-90-070, filed 7/1/83.]

     (1) Any firm desiring to be a dealer must include with the application the required registration fee of one hundred twenty dollars.

     (2) Vessel dealers ((will)) must reapply for a registration on or before the expiration of their registration.

     (3) The annual registration renewal fee of sixty dollars must be paid on or before each renewal date. If an application for renewal is not received by the department on or before the last day of the expiration month the registration is expired. The registration may be reinstated at any time within the next succeeding thirty days if renewal application and payment of the annual renewal fee, then in default ((is)), are received by the department. Registrations not renewed within thirty days of the renewal date ((then in default)) shall be cancelled. A new registration may be obtained by satisfying the procedures and qualifications for initial registration.

     (4) If no department denial action is pending, the department shall issue a vessel dealer registration and renewal decals depicting the expiration of the registration upon receipt of a dealer's renewal fee and renewal application. The dealer shall affix the decal as a prefix to the dealer registration number on any vessels operated on the waters pursuant to RCW 88.02.023. The fee for the initial decal shall be forty dollars. Additional decals may be issued for a fee of twenty dollars for each set.

[Statutory Authority: RCW 88.02.060(4). 89-18-028, § 308-90-080, filed 8/29/89, effective 9/29/89. Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-080, filed 1/19/88. Statutory Authority: 1983 c 7. 83-14-061 (Order 722 DOL), § 308-90-080, filed 7/1/83.]

     The dealer ((shall)) must notify the department of any change of the firm's business location or mailing address prior to engaging in business at the new location. Notification shall be made by filing a change of address application on a form provided by the department ((accompanied by the return of the registration issued to the former location or address)). The vessel dealer will be required to provide a list of all business locations of the firm when changing the business address of the firm's office.

[Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-090, filed 1/19/88. Statutory Authority: 1983 c 7. 83-14-061 (Order 722 DOL), § 308-90-090, filed 7/1/83.]

     The registration ((shall)) must be retained at all times by the dealer. When the dealer ceases to do business in the name or at the location ((set forth)) indicated on the registration the dealer ((shall)) must immediately notify the director of the termination and return the registration to the department; attention Dealer/Manufacturer Services.

[Statutory Authority: Chapter 7, Laws of 1983. 83-14-061 (Order 722 DOL), § 308-90-100, filed 7/1/83.]

     Any person, firm, association, limited liability company (L.L.C.), corporation or trust registered as a dealer must, within ten days following any change in its business or ownership structure, file with the department a statement describing with particularity the change ((effected)) in its business structure or the change in its ownership interest. In addition, persons newly assuming executive or control functions, including but not limited to new L.L.C. members, corporate officers, directors, majority stockholders, managing partners, or managing trustees, must file within ten days of assuming such function.

[Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-110, filed 1/19/88. Statutory Authority: 1983 c 7. 83-14-061 (Order 722 DOL), § 308-90-110, filed 7/1/83.]

     (1) All ((purchasers)) funds received from purchasers, including deposits ((or)), payments, or proceeds from the sale of trade-in vessels on a consignment sale, shall be placed in the vessel dealers trust account as required in RCW 88.02.220, and ((said)) those funds shall remain in such trust account until the consignor's and the legal owner's interest, if any, have been fully satisfied.

     (2) If the sale of a consigned vessel ((by a vessel dealer)) is a retail sale ((and)) the vessel dealer is required to transfer title as ((found in section 8, chapter 149, Laws of 1987)) required by RCW 88.02.125.

[Statutory Authority: RCW 88.02.100. 96-24-042, § 308-90-130, filed 11/27/96, effective 12/28/96. Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-130, filed 1/19/88.]

     (1) All ((purchasers)) funds received from purchasers, including deposits ((or)), payments, or proceeds from the sale of trade-in vessels on a listing sale shall be placed in the vessel dealer's trust account as required ((in section 11, chapter 149, Laws of 1987)) by RCW 88.02.220, and ((said)) those funds shall remain in such trust account until the listed vessel sale is completed.

     (2) At the time the sale ((closes)) is completed, and at vessel delivery, the listing dealer shall pay any outstanding liens from trust funds in order to obtain title for transfer.

     (3) If the sale of a listed vessel ((by a vessel dealer)) is a retail sale ((and)) the vessel dealer is required to transfer title as provided ((in section 8, chapter 149, Laws of 1987)) by RCW 88.02.125.

[Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-140, filed 1/19/88.]

     (1) The vessel dealer is required to make application for title in the purchaser's name within thirty days following the retail sale of the vessel.

     (2) The vessel dealer or the dealer's authorized agent shall sign or type ((his/her)) their firm name and vessel dealer number on the purchaser's application for title. ((If)) An authorized agent ((signs for the dealer the agent shall)) must give their title.

[Statutory Authority: RCW 88.02.100. 92-06-009, § 308-90-150, filed 2/24/92, effective 3/26/92. Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-150, filed 1/19/88.]

     (1) Applicants or registered vessel dealers desiring to be exempt from the bonding requirement must provide a statement to the department that they sell fifteen or fewer vessels per year ((having)) none of which has a retail value of ((not)) more than two thousand dollars each.

     (2) Registered vessel dealers who have stated that they qualify for the exemption shall immediately file the required surety bond with the department at the time their sales exceed the statutory exemption number or value. Failure to file the bond will subject the vessel dealer to penalties prescribed in RCW 88.02.188.

[Statutory Authority: RCW 88.02.100. 96-24-042, § 308-90-160, filed 11/27/96, effective 12/28/96. Statutory Authority: 1987 c 149 § 1. 88-03-038 (Order DLR-162), § 308-90-160, filed 1/19/88.]

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