(1) The department, county auditor or other agent, or subagent appointed by the director shall not issue an initial registration certificate for a motor vehicle to a natural person under this chapter unless the natural person at time of application:
(a) Presents an unexpired Washington state driver's license; or
(b) Certifies that he or she is:
(i) A Washington state resident who does not operate a motor vehicle on public roads; or
(ii) Exempt from the requirement to obtain a Washington state driver's license under RCW 46.20.025.
(2) The department must set up procedures to verify that all owners meet the requirements of this section.
(3) A person falsifying residency is guilty of a gross misdemeanor punishable only by a fine of five hundred twenty-nine dollars.
(4) The department may adopt rules necessary to implement this section, including rules under which a natural person applying for registration may be exempt from the requirements of this section if the person provides evidence satisfactory to the department that he or she has a valid and compelling reason for not being able to meet the requirements of this section.