Motor vehicle dealers

AN ACT Relating to motor vehicle dealer license requirements; and 1
amending RCW 46.70.023. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 46.70.023 and 2021 c 201 s 4 are each amended to 4
read as follows: 5
(1) An "established place of business" requires a permanent, 6
enclosed commercial building located within the state of Washington 7
easily accessible at all reasonable times. The business of a vehicle 8
dealer must be lawfully carried on at an established place of 9
business in accordance with the terms of all applicable building 10
code, zoning, and other land-use regulatory ordinances. A vehicle 11
dealer may display a vehicle for sale only at its established place 12
of business, licensed subagency, or temporary subagency site, except 13
at auction, however a vehicle dealer may deliver a vehicle for 14
inspection, a test drive, lease, or purchase and have a customer sign 15
agreements over the internet or at a location other than the vehicle 16
dealer's established place of business or licensed or temporary 17
subagency. The dealer shall keep the building open to the public so 18
that the public may contact the vehicle dealer or the dealer's 19
salespersons at all reasonable times. The books, records, and files 20
necessary to conduct the business shall be kept and maintained at 21
S-3734.3
SENATE BILL 6288
State of Washington 69th Legislature 2026 Regular Session
By Senators King and Liias
Read first time 01/22/26. Referred to Committee on Transportation.
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that place. The established place of business shall display an 1
exterior sign with the business name and nature of the business, such 2
as auto sales, permanently affixed to the land or building, with 3
letters clearly visible to the major avenue of traffic. A room or 4
rooms in a hotel, rooming house, or apartment house building or part 5
of a single or multiple-unit dwelling house may not be considered an 6
"established place of business" unless the ground floor of such a 7
dwelling is devoted principally to and occupied for commercial 8
purposes and the dealer offices are located on the ground floor. A 9
mobile office or mobile home may be used as an office if it is 10
connected to utilities and is set up in accordance with state law. A 11
statewide trade association representing manufactured housing dealers 12
shall be permitted to use a manufactured home as an office if the 13
office complies with all other applicable building code, zoning, and 14
other land-use regulatory ordinances. This subsection does not apply 15
to auction companies that do not own vehicle inventory or sell 16
vehicles from an auction yard. 17
(2) An auction company shall have office facilities within the 18
state. The books, records, and files necessary to conduct the 19
business shall be maintained at the office facilities. All storage 20
facilities for inventory shall be listed with the department, and 21
shall meet local zoning and land use ordinances. An auction company 22
shall maintain a telecommunications system. 23
(3) Auction companies shall post their vehicle dealer license at 24
each auction where vehicles are offered, and shall provide the 25
department with the address of the auction at least three days before 26
the auction. 27
(4) If a dealer maintains a place of business at more than one 28
location or under more than one name in this state, he or she shall 29
designate one location as the principal place of business of the 30
firm, one name as the principal name of the firm, and all other 31
locations or names as subagencies. A subagency license is required 32
for each and every subagency: PROVIDED, That the department may grant 33
an exception to the subagency requirement in the specific instance 34
where a licensed dealer is unable to locate their used vehicle sales 35
facilities adjacent to or at the established place of business. This 36
exception shall be granted and defined under the promulgation of 37
rules consistent with the administrative procedure act.38
(5) All vehicle dealers shall maintain ownership or leasehold 39
throughout the license year of the real property from which they do 40
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business. The dealer shall provide the department with evidence of 1
ownership or leasehold whenever the ownership changes or the lease is 2
terminated. 3
(6) A subagency shall comply with all requirements of an 4
established place of business, except that subagency records may be 5
kept at the principal place of business designated by the dealer. 6
Auction companies shall comply with the requirements in subsection 7
(2) of this section. 8
(7) A temporary subagency shall meet all local zoning and 9
building codes for the type of merchandising being conducted. The 10
dealer license certificate shall be posted at the location. No other 11
requirements of an established place of business apply to a temporary 12
subagency. Auction companies are not required to obtain a temporary 13
subagency license. 14
(8) A wholesale vehicle dealer shall have office facilities in a 15
commercial building within this state, with no more than two other 16
wholesale or retail vehicle dealers in the same building, and all 17
storage facilities for inventory shall be listed with the department, 18
and shall meet local zoning and land use ordinances. A wholesale 19
vehicle dealer shall maintain a telecommunications system. An 20
exterior sign visible from the nearest street shall identify the 21
business name and the nature of business. When two or more vehicle 22
dealer businesses share a location, all records, office facilities, 23
and inventory, if any, must be physically segregated and clearly 24
identified. 25
(9)(a) A retail vehicle dealer shall be open during normal 26
business hours, maintain office and display facilities in a 27
commercially zoned location or in a location complying with all 28
applicable building and land use ordinances, and maintain a business 29
telephone listing in the local directory. ((When two or more))30
(b) No more than two vehicle dealer businesses may share a 31
location((, all records, office facilities, and inventory shall be 32
physically segregated and clearly identified )). Until July 1, 2026, 33
two or more vehicle dealer businesses may share a location where all 34
records, office facilities, and inventory are physically segregated 35
and clearly identified. Beginning July 1, 2026, vehicle dealer 36
businesses sharing such a location may renew their licenses one time. 37
After the one-time renewal, more than two vehicle dealer businesses 38
may not share a location. This subsection (9)(b) does not apply to 39
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franchise new motor vehicle dealers, as defined in RCW 46.96.020, or 1
dealers of new recreational vehicles. 2
(10) A subagency license is not required for a mobile home dealer 3
to display an on-site display model, a consigned mobile home not 4
relocated from its site, or a repossessed mobile home if sales are 5
handled from a principal place of business or subagency. A mobile 6
home dealer shall identify on-site display models, repossessed mobile 7
homes, and those consigned at their sites with a sign that includes 8
the dealer's name and telephone number. 9
(11) Every vehicle dealer shall advise the department of the 10
location of each and every place of business of the firm and the name 11
or names under which the firm is doing business at such location or 12
locations. If any name or location is changed, the dealer shall 13
notify the department of such change within ((ten)) 10 days. The 14
license issued by the department shall reflect the name and location 15
of the firm and shall be posted in a conspicuous place at that 16
location by the dealer. 17
(12) A vehicle dealer's license shall upon the death or 18
incapacity of an individual vehicle dealer authorize the personal 19
representative of such dealer, subject to payment of license fees, to 20
continue the business for a period of six months from the date of the 21
death or incapacity. 22
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