46.01 - Department of licensing.

46.01.011 - Purpose.

The legislature finds that the department of licensing administers laws relating to the licensing and regulation of professions, businesses, and other activities in addition to administering laws relating to the licensing and regulation of vehicles and vehicle operators, dealers, and manufacturers. The laws administered by the department have the common denominator of licensing and regulation and are directed toward protecting and enhancing the well-being of the residents of the state.

[ 2010 c 161 § 201; 1994 c 92 § 500; 1979 c 158 § 113; 1977 ex.s. c 334 § 1; ]

46.01.020 - Department created.

A department of the government of this state to be known as the "department of licensing" is hereby created.

[ 1979 c 158 § 114; 1977 ex.s. c 334 § 2; 1965 c 156 § 2; ]

46.01.030 - Administration and improvement of certain motor vehicle laws.

The department is responsible for administering and recommending the improvement of the motor vehicle laws of this state relating to:

  1. Driver examining and licensing;

  2. Driver improvement;

  3. Driver records;

  4. Financial responsibility;

  5. Certificates of title;

  6. Vehicle registration certificates and license plates;

  7. Proration and reciprocity;

  8. Liquid fuel tax collections;

  9. Licensing of dealers, motor vehicle transporters, motor vehicle wreckers, for hire vehicles, and drivers' schools;

  10. General highway safety promotion in cooperation with the Washington state patrol and traffic safety commission; and

  11. Such other activities as the legislature may provide.

[ 2010 c 161 § 1107; 1990 c 250 § 14; 1965 c 156 § 3; ]

46.01.040 - Powers, duties, and functions relating to motor vehicle laws vested in department.

The department is vested with all powers, functions, and duties with respect to and including the following:

  1. The fuel tax and aircraft fuel tax as provided in chapters 82.38 and 82.42 RCW;

  2. The motor vehicle excise tax as provided in chapter 82.44 RCW;

  3. The travel trailers and campers excise tax as provided in chapter 82.50 RCW;

  4. All general powers and duties relating to motor vehicles as provided in chapter 46.08 RCW;

  5. Certificates of title and registration certificates as provided in chapters 46.12 and 46.16A RCW;

  6. The registration of motor vehicles as provided in chapter 46.16A RCW;

  7. Dealers' licenses as provided in chapter 46.70 RCW;

  8. The licensing of motor vehicle transporters as provided in chapter 46.76 RCW;

  9. The licensing of vehicle wreckers as provided in chapter 46.80 RCW;

  10. The administration of the laws relating to reciprocal or proportional registration of motor vehicles as provided in chapter 46.85 RCW;

  11. The licensing of passenger vehicles for hire as provided in chapter 46.72 RCW;

  12. Drivers' licenses as provided in chapter 46.20 RCW;

  13. Commercial driver training schools as provided in chapter 46.82 RCW;

  14. Financial responsibility as provided in chapter 46.29 RCW;

  15. Accident reporting as provided in chapter 46.52 RCW;

  16. Disposition of revenues as provided in chapter 46.68 RCW; and

  17. The administration of all other laws relating to motor vehicles vested in the director of licenses on June 30, 1965.

[ 2013 c 225 § 606; 2011 c 171 § 10; 2010 c 161 § 1108; 1983 c 3 § 117; 1979 c 158 § 115; 1965 c 156 § 4; ]

46.01.070 - Functions performed by state patrol as agent for director of licenses transferred to department.

Functions named in RCW 46.01.030 which have been performed by the state patrol as agent of the director of licenses before June 30, 1965 shall be performed by the department of licensing after June 30, 1965.

[ 1979 c 158 § 118; 1965 c 156 § 7; ]

46.01.100 - Organization of department.

Directors shall organize the department in such manner as they may deem necessary to segregate and conduct the work of the department.

[ 1990 c 250 § 16; 1965 c 156 § 10; ]

46.01.110 - Rule-making authority.

The director may adopt and enforce rules to carry out provisions related to vehicle registrations, certificates of title, and drivers' licenses. These rules must not be based:

  1. Solely on a section of law stating a statute's intent or purpose;

  2. On the enabling provisions of the statute establishing the agency; or

  3. On any combination of subsections (1) and (2) of this section.

[ 2010 c 161 § 202; 1995 c 403 § 108; 1979 c 158 § 120; 1965 c 156 § 11; 1961 c 12 § 46.08.140; 1937 c 188 § 79; RRS § 6312-79; ]

46.01.115 - Rules to implement 1998 c 165.

The department of licensing may adopt rules as necessary to implement chapter 165, Laws of 1998.

[ 1998 c 165 § 14; ]

46.01.130 - Powers and duties of director—Vehicle registration, appointments, branch offices, personnel screening.

The director:

  1. Shall supervise and control the issuing of vehicle certificates of title, vehicle registrations, and vehicle license plates, and has the full power to do all things necessary and proper to carry out the provisions of the law relating to the registration of vehicles;

  2. May appoint and employ deputies, assistants, representatives, and clerks;

  3. May establish branch offices in different parts of the state;

  4. May appoint county auditors in Washington state or, in the absence of a county auditor, the department or an official of county government as agents for applications for and the issuance of vehicle certificates of title and vehicle registrations; and

  5. [Empty]

    1. Shall investigate the conviction records and pending charges of any current employee of or prospective employee being considered for any position with the department who has or will have:

      1. [Empty]

        1. The ability to create or modify records of applicants for enhanced drivers' licenses and identicards issued under RCW 46.20.202; and

        2. The ability to issue enhanced drivers' licenses and identicards under RCW 46.20.202; or

      2. The ability to conduct examinations under RCW 46.25.060; or

      3. Access to information pertaining to vehicle license plates, drivers' licenses, or identicards under RCW 46.08.066, or vessel registrations issued under RCW 88.02.330 that, alone or in combination with any other information, may reveal the identity of an individual, or reveal that an individual is or was, performing an undercover or covert law enforcement, confidential public health work, public assistance fraud, or child support investigative activity.

    2. The investigation consists of a background check as authorized under RCW 10.97.050, 43.43.833, and 43.43.834, and the federal bureau of investigation. The background check must be conducted through the Washington state patrol criminal identification section and may include a national check from the federal bureau of investigation, which is through the submission of fingerprints. The director shall use the information solely to determine the character, suitability, and competence of current or prospective employees subject to this section.

    3. The director shall investigate the conviction records and pending charges of an employee subject to:

      1. Subsection (5)(a)(i) of this section every five years; and

      2. Subsection (5)(a)(ii) of this section as required under 49 C.F.R. Sec. 384.228 as it existed on July 8, 2014, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section.

    4. Criminal justice agencies shall provide the director with information that they may possess and that the director may require solely to determine the employment suitability of current or prospective employees subject to this section.

[ 2013 c 336 § 1; 2013 c 224 § 1; 2010 c 161 § 203; 2009 c 169 § 1; 1979 c 158 § 121; 1973 c 103 § 2; 1971 ex.s. c 231 § 8; 1965 c 156 § 13; 1961 c 12 § 46.08.090; 1937 c 188 § 26; RRS § 6312-26; prior: 1921 c 96 § 3, part; 1917 c 155 § 2, part; 1915 c 142 § 3, part; ]

46.01.135 - Establishment of investigation unit—Use of criminal history information.

  1. There is established an investigation unit within the department for the purpose of detection, investigation, and prosecution of any act prohibited or declared to be unlawful in the programs administered by the department. The director will employ qualified supervisory, legal, and investigative personnel for the program. Program staff must be qualified by training and experience.

  2. The director and the investigation unit are authorized to receive criminal history record information that includes nonconviction data for any purpose associated with an investigation conducted by the investigation unit established under this section. Dissemination or use of nonconviction data for purposes other than that authorized in this section is prohibited.

[ 2008 c 74 § 6; ]

46.01.140 - County auditors, agents, and subagents—Powers and duties—Standard contracts—Rules.

  1. County auditor/agent duties. A county auditor or other agent appointed by the director must:

    1. Enter into a standard contract provided by the director;

    2. Provide all services authorized by the director for vehicle certificates of title and vehicle registration applications and issuance under the direction and supervision of the director including, but not limited to:

      1. Processing reports of sale;

      2. Processing transitional ownership transactions;

      3. Processing mail-in vehicle registration renewals until directed otherwise by legislative authority;

      4. Issuing registrations and temporary ORV use permits for off-road vehicles as required under chapter 46.09 RCW;

      5. Issuing registrations for snowmobiles as required under chapter 46.10 RCW; and

      6. Collecting fees and taxes as required;

    3. If authorized by the director, offer for sale discover passes as provided in chapter 79A.80 RCW.

  2. County auditor/agent assistants and subagents. A county auditor or other agent appointed by the director may, with approval of the director:

    1. Appoint assistants as special deputies to accept applications for vehicle certificates of title and to issue vehicle registrations; and

    2. Recommend and request that the director appoint subagencies within the county to accept applications for vehicle certificates of title and vehicle registration application issuance.

  3. Appointing subagents. A county auditor or other agent appointed by the director who requests a subagency must, with approval of the director:

    1. Use an open competitive process including, but not limited to, a written business proposal and oral interview to determine the qualifications of all interested applicants; and

    2. Submit all proposals to the director with a recommendation for appointment of one or more subagents who have applied through the open competitive process. If a qualified successor who is an existing subagent's sibling, spouse, or child, or a subagency employee has applied, the county auditor must provide the name of the qualified successor and the name of one other applicant who is qualified and was chosen through the open competitive process.

  4. Subagent duties. A subagent appointed by the director must:

    1. Enter into a standard contract with the county auditor or agent provided by the director;

    2. Provide all services authorized by the director for vehicle certificates of title and vehicle registration applications and issuance under the direction and supervision of the county auditor or agent and the director including, but not limited to:

      1. Processing reports of sale;

      2. Processing transitional ownership transactions;

      3. Mailing out vehicle registrations and replacement plates to internet payment option customers until directed otherwise by legislative authority;

      4. Issuing registrations and temporary ORV use permits for off-road vehicles as required under chapter 46.09 RCW;

      5. Issuing registrations for snowmobiles as required under chapter 46.10 RCW; and

      6. Collecting fees and taxes as required; and

    3. If authorized by the director, offer for sale discover passes as provided in chapter 79A.80 RCW.

  5. Subagent successorship. A subagent appointed by the director who no longer wants his or her appointment may recommend a successor who is the subagent's sibling, spouse, or child, or a subagency employee. The recommended successor must participate in the open competitive process used to select an applicant. In making successor recommendations and appointment determinations, the following provisions apply:

    1. If a subagency is held by a partnership or corporate entity, the nomination must be submitted on behalf of, and agreed to by, all partners or corporate officers;

    2. A subagent may not receive any direct or indirect compensation or remuneration from any party or entity in recognition of a successor nomination. A subagent may not receive any financial benefit from the transfer or termination of an appointment;

    3. The appointment of a successor is intended to assist in the efficient transfer of appointments to minimize public inconvenience. The appointment of a successor does not create a proprietary or property interest in the appointment;

    4. A subagent appointee who is planning to retire within twelve months may recommend a successor without resigning his or her appointment by submitting a letter of intent to retire with a successor recommendation to the county auditor or other agent appointed by the director. The county auditor or other agent appointed by the director shall, within sixty days, respond in writing to the subagent appointee indicating if the recommended successor would be considered in the open competitive process. If there are negative factors or deficiencies pertaining to the subagency operation or the recommended successor, the county auditor or other agent appointed by the director must state these factors in writing to the subagent appointee. The subagent appointee may withdraw the letter of intent to retire any time prior to the start of the open competitive process by writing to the county auditor or other agent appointed by the director and filing a copy with the director;

    5. A subagent appointee may name a recommended successor at any time during his or her appointment by notifying the county auditor or other agent appointed by the director in writing and filing a copy with the director. The purpose of this recommendation is for the county auditor or other agent appointed by the director to know the wishes of the subagent appointee in the event of the death or incapacitation of a sole subagent appointee or last remaining subagent appointee that could lead to the inability of the subagent to continue to fulfill the obligations of the appointment; and

    6. If the county auditor or other agent appointed by the director does not select the recommended successor for appointment as a result of the open competitive process, the county auditor or other agent appointed by the director must contact the subagent appointee by letter and explain the decision. The subagent appointee must be provided an opportunity to respond in writing. Any response by the subagent appointee must be included in the open competitive process materials submitted to the department.

  6. Standard contracts. The standard contracts provided by the director in this section may include provisions that the director deems necessary to ensure that readily accessible and acceptable service is provided to the citizens of the state, including the full collection of fees and taxes. The standard contracts must include provisions that:

    1. Describe responsibilities and liabilities of each party related to service expectations and levels;

    2. Describe the equipment to be supplied by the department and equipment maintenance;

    3. Require specific types of insurance or bonds, or both, to protect the state against any loss of collected revenue or loss of equipment;

    4. Specify the amount of training that will be provided by each of the parties;

    5. Describe allowable costs that may be charged for vehicle registration activities as described in subsection (7) of this section; and

    6. Describe causes and procedures for termination of the contract, which may include mediation and binding arbitration.

  7. County auditor/agent cost reimbursement. A county auditor or other agent appointed by the director who does not cover expenses for services provided by the standard contract may submit to the department a request for cost-coverage moneys. The request must be submitted on a form developed by the department. The department must develop procedures to standardize and identify allowable costs and to verify whether a request is reasonable. Payment must be made on those requests found to be allowable from the licensing services account.

  8. County auditor/agent revenue disbursement. County revenues that exceed the cost of providing services described in the standard contract, calculated in accordance with the procedures in subsection (7) of this section, must be expended as determined by the county legislative authority during the process established by law for adoption of county budgets.

  9. Appointment authority. The director has final appointment authority for county auditors or other agents or subagents.

  10. Rules. The director may adopt rules to implement this section.

[ 2013 c 169 § 1; 2012 c 261 § 10; 2011 c 171 § 11; 2010 1st sp.s. c 7 § 139; 2010 c 221 § 1; 2010 c 161 § 204; 2005 c 343 § 1; 2003 c 370 § 3; 2001 c 331 § 1; 1996 c 315 § 1; 1992 c 216 § 1; 1991 c 339 § 16; 1990 c 250 § 89; 1988 c 12 § 1; 1987 c 302 § 1; 1985 c 380 § 12; prior: 1983 c 77 § 1; 1983 c 26 § 1; 1980 c 114 § 2; 1979 c 158 § 122; 1975 1st ex.s. c 146 § 1; 1973 c 103 § 1; 1971 ex.s. c 231 § 9; 1971 ex.s. c 91 § 3; 1965 c 156 § 14; 1963 c 85 § 1; 1961 c 12 § 46.08.100; prior: 1955 c 89 § 3; 1937 c 188 § 27; RRS § 6312-27; ]

46.01.150 - Branch offices.

The department may maintain such branch offices within the state as the director may deem necessary properly to carry out the powers and duties vested in the department.

[ 1965 c 156 § 15; ]

46.01.160 - Forms for applications, certificates of title, registration certificates, etc.

The director shall prescribe and provide suitable forms of applications, certificates of title and registration certificates, drivers' licenses, and all other forms and licenses requisite or deemed necessary to carry out the provisions of this title and any other laws the enforcement and administration of which are vested in the department.

[ 2010 c 161 § 1109; 1965 c 156 § 16; ]

46.01.170 - Seal.

The department shall have an official seal with the words "Department of Licensing of Washington" engraved thereon.

[ 1977 ex.s. c 334 § 4; 1965 c 156 § 17; ]

46.01.180 - Oaths and acknowledgments.

Officers and employees of the department designated by the director are, for the purpose of administering the motor vehicle laws, authorized to administer oaths and acknowledge signatures and shall do so without fee.

[ 1965 c 156 § 18; ]

46.01.190 - Designation of state patrol as agent for surrender of drivers' licenses.

The director of licensing may designate the Washington state patrol as an agent to secure the surrender of drivers' licenses which have been suspended, revoked, or canceled pursuant to law.

[ 1979 c 158 § 123; 1965 c 156 § 19; ]

46.01.230 - Payment by check or money order—Dishonored checks or money orders—Failure to surrender canceled certificate, registration, or permit—Immunity from payment of uncollected fees—Rules.

  1. The department may accept checks and money orders for the payment of drivers' licenses, certificates of title and vehicle registrations, vehicle excise taxes, gross weight fees, and other fees and taxes collected by the department. Whenever registrations, licenses, or permits have been paid for by checks or money orders that have been dishonored by nonacceptance or nonpayment, the department shall:

    1. Cancel the registration, license, or permit;

    2. Send a notice of cancellation by first-class mail using the last known address in department records for the holder of the certificate, license, or permit, and complete an affidavit of first-class mail; and

    3. Assess a handling fee, set by rule.

  2. It is a traffic infraction to fail to surrender a certificate of title, registration certificate, or permit to the department or to an authorized agent within ten days of being notified that the certificate, registration, or permit has been canceled.

  3. County auditors, agents, and subagents appointed by the director may collect restitution for dishonored checks and money orders and keep the handling fee.

  4. A person who has recently acquired a vehicle by purchase, exchange, gift, lease, inheritance, or legal action is not liable or responsible for the payment of uncollected fees and taxes that were paid for by a predecessor's check or money order that was subsequently dishonored. The department may not deny an application to transfer ownership for the uncollected amount.

  5. The director may adopt rules to implement this section. The rules must provide for the public's convenience consistent with sound business practice and encourage annual renewal of vehicle registrations by mail, authorizing checks and money orders for payment.

[ 2010 c 161 § 205; 2003 c 369 § 1; 1994 c 262 § 1; 1992 c 216 § 2; 1987 c 302 § 2; 1979 ex.s. c 136 § 39; 1979 c 158 § 124; 1975 c 52 § 1; 1965 ex.s. c 170 § 44; ]

46.01.235 - Payment by credit or debit card.

The department may adopt necessary rules and procedures to allow use of credit and debit cards for payment of fees and excise taxes to the department and its agents or subagents related to the licensing of drivers, the issuance of identicards, and vehicle and vessel certificates of title and registration. The department may establish a convenience fee to be paid by the credit or debit card user whenever a credit or debit card is chosen as the payment method. The fee must be sufficient to offset the charges imposed on the department and its agents and subagents by credit and debit card companies. In no event may the use of credit or debit cards authorized by this section create a loss of revenue to the state.

The use of a personal credit card does not rely upon the credit of the state as prohibited by Article VIII, section 5 of the state Constitution.

[ 2010 c 161 § 207; 2004 c 249 § 9; 1999 c 271 § 1; ]

46.01.240 - Internet payment option.

  1. The department shall provide on its internet payment option website:

    1. That a filing fee will be collected on all transactions subject to a filing fee;

    2. That a subagent service fee will be collected by a subagent office for mail or pickup licensing services; and

    3. The amount of the filing and subagent service fees.

  2. The filing and subagent service fees must be shown below each office listed.

[ 2010 c 161 § 206; ]

46.01.250 - Certified copies of records—Fee.

The director shall have the power and it shall be his or her duty upon request and payment of the fee as provided herein to furnish under seal of the director certified copies of any records of the department, except those for confidential use only. The director shall charge and collect therefor the actual cost to the department. Any funds accruing to the director of licensing under this section shall be certified and sent to the state treasurer and by him or her deposited to the credit of the highway safety fund.

[ 2010 c 8 § 9001; 1979 c 158 § 125; 1967 c 32 § 3; 1961 c 12 § 46.08.110; 1937 c 188 § 80; RRS § 6312-80; ]

46.01.260 - Destruction of records by director.

  1. Except as provided in subsection (2) of this section, the director may destroy applications for vehicle registrations, copies of vehicle registrations issued, applications for drivers' licenses, copies of issued drivers' licenses, certificates of title and registration or other documents, and records or supporting papers on file in the department that have been microfilmed or photographed or are more than five years old. The director may destroy applications for vehicle registrations that are renewal applications when the computer record of the applications has been updated.

  2. [Empty]

    1. The director shall not destroy records of convictions or adjudications of RCW 46.61.502, 46.61.503, 46.61.504, 46.61.520, and 46.61.522, records of deferred prosecutions granted under RCW 10.05.120, or any other records of a prior offense as defined in RCW 46.61.5055 and shall maintain such records permanently on file.

    2. For purposes of RCW 46.52.101 and 46.52.130, offenses subject to this subsection shall be considered "alcohol-related" offenses.

[ 2016 c 203 § 3; 2015 2nd sp.s. c 3 § 10; 2010 c 161 § 208; 2009 c 276 § 2; 1999 c 86 § 2; 1998 c 207 § 3; 1997 c 66 § 11; 1996 c 199 § 4; 1994 c 275 § 14; 1984 c 241 § 1; 1971 ex.s. c 22 § 1; 1965 ex.s. c 170 § 45; 1961 c 12 § 46.08.120; 1955 c 76 § 1; 1951 c 241 § 1; 1937 c 188 § 77; RRS § 6312-77; ]

46.01.270 - Destruction of records by county auditor or other agent.

A county auditor or other agent appointed by the director may destroy applications for vehicle registrations and any copies of vehicle registrations or other records issued after those records have been on file in the county auditor's or other agent's office for a period of eighteen months, unless otherwise directed by the director.

[ 2010 c 161 § 209; 1991 c 339 § 18; 1967 c 32 § 4; 1961 c 12 § 46.08.130; 1937 c 188 § 78; RRS § 6312-78; ]

46.01.290 - Director to make annual reports to governor.

The director shall report annually to the governor on the activities of the department.

[ 1977 c 75 § 66; 1967 c 32 § 5; 1965 c 28 § 1; 1961 ex.s. c 21 § 29; ]

46.01.310 - Immunity of director, the state, county auditors, agents, and subagents.

No civil suit or action may ever be commenced or prosecuted against the director, the state of Washington, any county auditor or other agents appointed by the director, any other government officer or entity, or against any other person, by reason of any act done or omitted to be done in connection with the titling or registration of vehicles or vessels while administering duties and responsibilities imposed on the director or as an agent of the director, or as a subagent of an agent of the director. This section does not bar the state of Washington or the director from bringing any action, whether civil or criminal, against any agent, nor shall it bar a county auditor or other agent of the director from bringing an action against the agent.

[ 2010 c 161 § 210; 1987 c 302 § 3; ]

46.01.315 - Immunity of director, the state, licensed driver training schools, and school districts in administering knowledge and driving portions of driver licensing examination.

A civil suit or action may not be commenced or prosecuted against the director, the state of Washington, any driver training school licensed by the department, any other government officer or entity, including a school district or an employee of a school district, or against any other person, by reason of any act done or omitted to be done in connection with administering the portions of the driver licensing examination that test the applicant's knowledge of traffic laws and ability to safely operate a motor vehicle. This section does not bar the state of Washington or the director from bringing any action, whether civil or criminal, against any driver training school licensed by the department.

[ 2011 c 370 § 3; ]

46.01.320 - Title and registration advisory committee.

[ NOTES:; ]

46.01.330 - Facilities siting coordination.

The state patrol and the department of licensing shall coordinate their activities when siting facilities. This coordination shall result in the collocation of driver and vehicle licensing and vehicle inspection service facilities whenever possible.

The department and state patrol shall explore alternative state services, such as vehicle emission testing, that would be feasible to collocate in these joint facilities. The department and state patrol shall reach agreement with the department of transportation for the purposes of offering department of transportation permits at these one-stop transportation centers. All services provided at these transportation service facilities shall be provided at cost to the participating agencies.

In those instances where the community need or the agencies' needs do not warrant collocation this section shall not apply.

[ 1993 sp.s. c 23 § 46; ]

46.01.340 - Database of fuel dealer and distributor license information.

By December 31, 1996, the department of licensing shall implement a PC or server-based database of fuel dealer and distributor license application information.

[ 1996 c 104 § 17; ]

46.01.350 - Fuel tax advisory group.

By July 1, 1996, the department of licensing shall establish a fuel tax advisory group comprised of state agency and petroleum industry representatives to develop or recommend audit and investigation techniques, changes to fuel tax statutes and rules, information protocols that allow sharing of information with other states, and other tools that improve fuel tax administration or combat fuel tax evasion.

[ 1996 c 104 § 18; ]

46.01.360 - Fees—Study and adjustment.

To ensure cost recovery for department of licensing services, the department of licensing shall submit a fee study to the transportation committees of the house of representatives and the senate by December 1, 2003, and on a biennial basis thereafter. Based on this fee study, the Washington state legislature will review and adjust fees accordingly.

[ 2002 c 352 § 27; ]

46.01.370 - Authority to sell and distribute discover passes and day-use permits.

The department may, in coordination with the state parks and recreation commission, offer for sale and distribute discover passes and day-use permits, as provided in chapter 79A.80 RCW, at the department's drivers' licenses offices. Any amounts collected by the department through the sales of discover passes and day-use permits must be deposited in the recreation access pass account created in RCW 79A.80.090.

[ 2012 c 261 § 11; ]

46.01.380 - Cost recovery—Portion of credit card and other financial transaction costs.

The department must implement cost recovery mechanisms to recoup at least a portion of credit card and other financial transaction costs as part of charges imposed for driver and vehicle fee transactions. The department must develop a method of tracking the amount of credit card and other financial cost recovery revenues. The department must notify the state treasurer of these amounts and the state treasurer must deposit these revenues in the agency financial transaction account created in RCW 46.01.385 on a quarterly basis.

[ 2021 c 32 § 1; ]

46.01.385 - Agency financial transaction account.

The agency financial transaction account is created in the state treasury. Receipts directed by law to the account from cost recovery charges for credit card and other financial transaction fees must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for paying credit card and financial transaction fees, and other related costs incurred by state agencies.

[ 2021 c 32 § 2; ]

46.01.XXX - TBD

**

  1. The state of Washington occupies and preempts the charging of per trip fees on prearranged rides by transportation network company drivers operating in the state of Washington as provided in this section. Local laws and ordinances that are inconsistent with this subsection may not be enacted and are hereby preempted and repealed. However, this subsection does not apply to local laws and ordinances enacted regarding per trip fees enacted prior to January 1, 2021.

  2. Beginning January 1, 2023, the department must charge a 50 cent per trip fee on prearranged and nonprearranged rides by for hire vehicles operating in the state of Washington. However, in a county with a population greater than 2,000,000, the per trip fee is 25 cents.

  3. The director must adopt rules to implement this section. The rules may include, but are not limited to, the:

    1. Administration, enforcement, and collection of the fee in the most efficient manner deemed by the director;

    2. Imposition of audit requirements to ensure compliance;

    3. Establishment of penalties on drivers and companies for noncompliance; and

    4. Implementation of cooperative arrangements with cities, counties, or port districts for the collection and remittance of this fee.

  4. All revenues generated under this section must be deposited into the forward flexible account created in section 702 of this act. Of the amount deposited pursuant to this subsection, 20 percent shall be used to enhance department of transportation, public transportation division programs as follows:

    1. Fifty percent must be for funding the special needs transportation grant program; and

    2. Fifty percent must be for funding the transit coordination grant program.

  5. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

    1. "For hire vehicle" means vehicles used for the transportation of passengers for compensation including, taxicab transportation services provided under chapter 46.72 or 81.72 RCW, or a transportation network company driver providing prearranged trips through a digital network. The term excludes auto stages, school buses operating exclusively under a contract to a school district, ride-sharing vehicles under chapter 46.74 RCW, limousine carriers licensed under chapter 46.72A RCW, vehicles used by nonprofit transportation providers for elderly or persons with disabilities and their attendants under chapter 81.66 RCW, vehicles used by auto transportation companies licensed under chapter 81.68 RCW, vehicles used to provide courtesy transportation at no charge to and from parking lots, hotels, and rental offices, and vehicles used by charter party carriers of passengers and excursion service carriers licensed under chapter 81.70 RCW.

    2. "Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is operating in Washington state and uses a digital network to connect transportation network company riders to transportation network company drivers who provide prearranged rides.

    3. "Transportation network company driver" means an individual who:

      1. Receives connections to potential transportation network company riders and related services from a transportation network company; and

      2. Uses a transportation network company vehicle to offer or provide a prearranged ride to transportation network company riders upon connection through a digital network controlled by a transportation network company in exchange for compensation or payment of a fee.

  6. [Empty]

    1. By August 1, 2021, the department must convene a work group to negotiate and develop a comprehensive framework and recommendations for:

      1. The regulation of transportation network companies within the state of Washington; and

      2. Coordinated linkages with existing systems for taxi and for hire services regulated by state and local governments.

    2. [Empty]

      1. In convening this work group, the department must involve relevant representatives of the utilities and transportation commission, local governments involved in the regulation of transportation network companies and for hire vehicles, entities providing transportation network services, entities providing taxicab services and other for hire services, and other relevant parties. The work group must periodically provide updates to the joint transportation committee and allow opportunities for interested members to attend meetings of the work group and provide feedback.

      2. The work group must attempt to develop a comprehensive framework and recommendations for regulatory fees, the most effective and efficient state and local regulatory structure or structures, the most effective public safety aspects including the type of required background checks, appropriate driver compensation policies, and other ways to improve the consistency and overall effectiveness and competitive fairness of the current regulatory systems.

      3. The department must issue a report of its agreed to framework and recommendations, including draft legislation, to the house and senate transportation committees by December 1, 2022.

[ 2021 c XXX § 511; ]**


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