WSR 98-06-080

PROPOSED RULES

DEPARTMENT OF LICENSING

[Filed March 4, 1998, 8:58 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 98-03-023.

Title of Rule: General provisions, chapter 308-04 WAC.

Purpose: (1) Clarify instructions and update monetary increase for reasonable handling fee for dishonored checks; and (2) to meet the criteria set forth in Governor Locke's Executive Order 97-02.

Statutory Authority for Adoption: RCW 46.01.110 and 43.24.023.

Summary: Clarify WAC 308-04-010 Requirements for checks in payment of licenses, certificates, etc.--Penalty and 308-04-020 Reasonable handling fee for dishonored checks in payment of vehicle licenses, etc.

Reasons Supporting Proposal: Meet criteria supporting Governor Locke's Executive Order 97-02.

Name of Agency Personnel Responsible for Drafting: Patrick Zlateff, 1125 Washington Street S.E., Olympia, (360) 902-3718; Implementation and Enforcement: Walt Fahrer, 1125 Washington Street S.E., Olympia, (360) 902-3640.

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

Explanation of Rule, its Purpose, and Anticipated Effects: The rule explains what is required on drafts made to the department for vehicle and vessel registration and certificates of ownership as well as what happens when a check is dishonored by the bank. The purpose is to make clear to those that use the WAC to understand the procedures involved when accepting a check and what happens when that check has been dishonored as well as the maximum amount that may be charged and kept by the receiving party for the handling fee for the dishonored check. Make more clear the procedures and show the increase in handling charges for dishonored checks.

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.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The content of the proposed rules are explicitly and specifically dictated by statute.

Hearing Location: Highways-Licenses Building, Conference Room 406, 1125 Washington Street, Olympia, WA 98507, on April 9, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Pat Zlateff by April 8, 1998, TDD (360) 664-8885, or (360) 902-3718.

Submit Written Comments to: Patrick Zlateff, Rules Coordinator, Title and Registration Services, P.O. Box 2957, Olympia, WA 98507-2957, FAX (360) 664-0831, by April 8, 1998.

Date of Intended Adoption: April 22, 1998.

February 23, 1998

Nancy S. Kelly, Administrator

Title and Registration Services

AMENDATORY SECTION (Amending Order 86-1, filed 4/1/86)

WAC 308-04-010 Requirements for checks in payment of ((licenses, certificates, etc.--Penalty)) department of licensing transactions. (((1) All checks must be made payable to the state treasurer or department of licensing, except those checks written in payment for transactions through the department's vehicle and vessel licensing agents may be made payable to the county auditor, who is acting as the agent.

(2) State warrants which bear a reasonable relationship to the amount of license fee due shall be accepted when tendered for payment of license fees. Proper identification will be required.

(3) Checks must be for the exact amount of the license fee due and the purpose for which the check is intended should be noted on its face.

(4) The drawer's name (licensee) and address should appear upon each check. All NSF checks will be redeposited once. If they fail to clear at the time of the second deposit, the following action will be taken:

(a) The drawer (licensee) will be sent a letter by certified mail advising him or her that the license will be canceled unless a money order or cashier's check for the amount due is received within fifteen days.

(b) Upon the failure to receive said moneys the state patrol or other appropriate law enforcement agency will be notified.

(c) The failure to pay a license fee or tax due after notice of dishonor has been given will result [in] cancellation of any service, license, permit, or registration provided.

(d) In cases where a dishonored check is given for professional, securities or real estate fee the field representative of said agency will first contact the party and their license will be surrendered.

[(5)][(e)] No checks written on foreign banks (outside of the United States) will be accepted and only those foreign postal money orders made payable in U.S. dollars at the Olympia Post Office will be acceptable for payment of any license fees[,] provided, however, that Canadian checks marked "Payable in U.S. funds," shall be an exception and will be acceptable for payment.)) (1) Checks shall be made payable to the state treasurer or department of licensing. Checks written in payment for transactions through the department's vehicle and vessel licensing agents appointed under RCW 46.01.140(1) may be made payable to the county auditor.

(2) State warrants equal to or less than the amount of license fees due shall be accepted when tendered for payment of a department of licensing transaction. If the warrant is for vehicle or vessel license, title or permit fees or taxes and is less than the amount due, the applicant shall pay the difference by cash, check, or money order.

(3) Checks may not be for more than the amount due for the transaction being processed. The purpose for which the check is intended should be noted on the face.

(4) The drawer's (licensee's) name and address shall be shown on the check.

(5) Checks written on foreign banks and foreign postal money orders (outside of the United States) shall be payable in U.S. funds and so indicated.

(6) Proper identification shall be required of all applicants for vehicle and vessel transactions.

[Statutory Authority: RCW 46.01.230. 86-08-069 (Order 86-1), 308-04-010, filed 4/1/86; 80-13-002 (Order DOL 592), 308-04-010, filed 9/4/80; 78-04-040 (Order 487-DOL), 308-04-010, filed 3/20/78; Rule 1, filed 6/29/67.]

NOTES:

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules, and deems ineffectual changes not filed by the agency in this manner. The bracketed material in the above section does not appear to conform to the statutory requirement.

AMENDATORY SECTION (Amending Order TL/RG 38, filed 10/9/87)

WAC 308-04-020 ((Reasonable handling fee for)) Requirements for processing dishonored checks ((in payment of vehicle licenses, etc)). ((Whenever registrations, licenses, or permits relating to the licensing or registration of vehicles or vessels have been paid for by checks to county auditors, agents, and subagents appointed or approved by the director pursuant to RCW 46.01.140, if the check has been dishonored by nonacceptance or nonpayment, a handling fee, in an amount not to exceed fifteen dollars may be assessed for each such instrument. County auditors, agents, and subagents, may collect restitution, and where they have collected restitution may retain the reasonable handling fee.)) (1) In cases where a dishonored check is given for professional or real estate fees, the field representative of said agency will first contact the party and their license will be surrendered.

(2) In cases where a check given for a vehicle or vessel transaction is subsequently dishonored:

(a) The check may be redeposited once.

(b) If the check fails to clear the second time, the department, its agent or subagent will send the drawer (licensee) a letter by first class mail advising the drawer that the license or permit is subject to cancellation due to a dishonored check. Cancellation will not proceed if the amount due, including the handling fee, payable by cash, money order, certified check, or cashier's check, is received and receipted within fifteen days.

(c) Failure to make restitution of a dishonored check used to pay for a department of licensing transaction will result in cancellation of any service, license, permit or registration provided. If the dishonored check is for a vehicle or vessel transaction, the dishonored check will be referred to a collection agency for collection.

(3) The handling fee for dishonored checks written for vehicle and vessel transactions shall not exceed twenty-five dollars. The office that collects restitution may retain the handling fee.