County Auditor’s contract with DOL terminated
Published 10:30 am Friday, March 20, 2026
The Washington State Department of Licensing (DOL) has issued a Level III Breach of Contract notice to the Grays Harbor County Auditor’s Office, resulting in the termination of the vehicle and vessel licensing contract with the auditor, Joesph R. MacLean (R), the County announced via press release Thursday evening.
The Board of County Commissioners (BOCC), working in conjunction with the DOL, has appointed Sam Kim, Grays Harbor County administrator, as the new vehicle and vessel licensing agent, with a focus on maintaining seamless service for the public and licensing partners. This responsibility is in addition to his current duties as county administrator.
The BOCC emphasizes that subagents will continue their current operations without interruption. Ensuring continuity of service remains the County’s top priority, and all efforts are being made to prevent any disruption during the transition.
“We are focused on a smooth and responsible transition that maintains the level of service our community expects,” said District 1 Commissioner Georgia Miller, chair of the BOCC. “We appreciate the patience and cooperation of our partners and the public as we move through this process.”
The County is working closely with the DOL to meet all audit and compliance requirements throughout this process. In addition, the County is committed to maintaining high operational standards in preparation for the eventual return of these responsibilities to the County Auditor.
In January, MacLean was issued his second breach of contract notice related to DOL vehicle and vessel licensing responsibilities. State law allows the DOL to appoint county auditors (or another county government official) as an “agent” of DOL to perform transactions on behalf of the agency. County auditors can also request the DOL to appoint “subagents” and these subagents report to county auditors. There are two subagents in Grays Harbor County — the Hoquiam Licensing and Transportation Agencies and Timberland Bank.
MacLean was given 15 calendar days from the receipt of the Level II Breach notice to “provide a written response containing acknowledgement of the inappropriate conduct and address a corrective action plan to remedy the items disclosed in this notice.” He was subsequently granted an extension until Jan. 30.
However, a real fear that the 94-year-old Hoquiam Licensing and Transportation Agencies and the Timberland Bank location could close down arose in the wake of these issues. During a February BOCC meeting, the commissioners assured Hoquiam Licensing and Transportation Agencies proprietor deCourcy “Kathi” Hoder that the establishment would be able to continue business as usual.
“I just want you to know that you have no concern at this point that your business will close. You can continue business as usual. … We’re fortunate to have you,” said Vickie Raines, District 3 commissioner, at that time. After an executive session at that meeting, the BOCC voted to send a letter to the DOL.
“Specifically, the letter will recommend an agreement that the County Administrator [Sam Kim] as designated by the Board oversee the functions, subagents, and reporting to the Department of Licensing in the event that the County Auditor is unsuccessful with Option 1,” Miller said. “Option 1 is that the Auditor provide a viable corrective action plan to implement immediately. Option 2 is failing a viable plan [and] that the Board of County Commissioners stands ready to assume oversight and management of functions.”
And now the task has been put to Sam Kim.
