Electric vehicles

AN ACT Relating to advancing transportation electrification by 1
expanding access to electric vehicles already being sold in 2
Washington and increasing associated funding; amending RCW 46.96.010, 3
46.96.185, 46.70.041, 46.70.045, 46.70.101, 46.70.170, and 46.70.180; 4
and prescribing penalties. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 46.96.010 and 1989 c 415 s 1 are each amended to 7
read as follows: 8
The legislature finds and declares that the distribution and sale 9
of motor vehicles in this state vitally affect the general economy of 10
the state and the public interest and public welfare, that provision 11
for warranty service to motor vehicles is of substantial concern to 12
the people of this state, that the maintenance of fair competition 13
among dealers and others is in the public interest, and that the 14
maintenance of strong and sound dealerships is essential to provide 15
continuing and necessary reliable services to the consuming public in 16
this state and to provide stable employment to the citizens of this 17
state. The legislature further finds that there is a substantial 18
disparity in bargaining power between automobile manufacturers and 19
((their)) dealers, and that in order to promote the public interest 20
and the public welfare, and in the exercise of its police power, it 21
S-5350.2
SENATE BILL 6354
State of Washington 69th Legislature 2026 Regular Session
By Senators Liias and King
Read first time 02/19/26. Referred to Committee on Transportation.
p. 1 SB 6354
is necessary to regulate the relationship between motor vehicle 1
dealers and motor vehicle manufacturers, importers, distributors, and 2
their representatives doing business in this state, not only for the 3
protection of dealers but also for the ((benefit for the public )) 4
protection of consumers in assuring the continued availability and 5
servicing of automobiles sold to the public. 6
The legislature recognizes it is in the best interest for 7
manufacturers and dealers of motor vehicles to conduct business with 8
each other in a fair, efficient, and competitive manner. The 9
legislature declares the public interest is best served by dealers 10
being assured of the ability to manage their business enterprises 11
under a contractual obligation with manufacturers where dealers do 12
not experience unreasonable interference and are assured of the 13
ability to transfer ownership of their business without undue 14
constraints. If the legislature authorizes a manufacturer to own or 15
operate a motor vehicle dealership, the legislature intends that such 16
authorization be applied narrowly to prevent erosion of the motor 17
vehicle dealer franchise system and the benefits it provides to 18
communities around the state. It is the intent of the legislature to 19
impose a regulatory scheme and to regulate competition in the motor 20
vehicle industry to the extent necessary to balance fairness and 21
efficiency. These actions will protect consumers, strengthen 22
enforcement, and permit motor vehicle dealers to better serve 23
((consumers and allow dealers to devote their best competitive 24
efforts and resources to the sale and services of the manufacturer's 25
products to consumers)) the public. 26
Sec. 2. RCW 46.96.185 and 2018 c 296 s 2 are each amended to 27
read as follows: 28
(1) Notwithstanding the terms of a franchise agreement, a 29
manufacturer, distributor, factory branch, or factory representative, 30
or an agent, officer, parent company, wholly or partially owned 31
subsidiary, affiliated entity, or other person controlled by or under 32
common control with a manufacturer, distributor, factory branch, or 33
factory representative, shall not: 34
(a) Discriminate between new motor vehicle dealers by selling or 35
offering to sell a like vehicle to one dealer at a lower actual price 36
than the actual price offered to another dealer for the same model 37
similarly equipped; 38
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(b) Discriminate between new motor vehicle dealers by selling or 1
offering to sell parts or accessories to one dealer at a lower actual 2
price than the actual price offered to another dealer;3
(c) Discriminate between new motor vehicle dealers by using a 4
promotion plan, marketing plan, or other similar device that results 5
in a lower actual price on vehicles, parts, or accessories being 6
charged to one dealer over another dealer; 7
(d) Discriminate between new motor vehicle dealers by adopting a 8
method, or changing an existing method, for the allocation, 9
scheduling, or delivery of new motor vehicles, parts, or accessories 10
to its dealers that is not fair, reasonable, and equitable. Upon the 11
request of a dealer, a manufacturer, distributor, factory branch, or 12
factory representative shall disclose in writing to the dealer the 13
method by which new motor vehicles, parts, and accessories are 14
allocated, scheduled, or delivered to its dealers handling the same 15
line or make of vehicles; 16
(e) Discriminate against a new motor vehicle dealer by 17
preventing, offsetting, or otherwise impairing the dealer's right to 18
request a documentary service fee on affinity or similar program 19
purchases. This prohibition applies to, but is not limited to, any 20
promotion plan, marketing plan, manufacturer or dealer employee or 21
employee friends or family purchase programs, or similar plans or 22
programs; 23
(f) Give preferential treatment to some new motor vehicle dealers 24
over others by refusing or failing to deliver, in reasonable 25
quantities and within a reasonable time after receipt of an order, to 26
a dealer holding a franchise for a line or make of motor vehicles 27
sold or distributed by the manufacturer, distributor, factory branch, 28
or factory representative, a new vehicle, parts, or accessories, if 29
the vehicle, parts, or accessories are being delivered to other 30
dealers, or require a dealer to purchase unreasonable advertising 31
displays or other materials, or unreasonably require a dealer to 32
remodel or renovate existing facilities as a prerequisite to 33
receiving a model or series of vehicles; 34
(g) Compete with a new motor vehicle dealer of any make or line 35
by acting in the capacity of a new motor vehicle dealer, or by 36
owning, operating, or controlling, whether directly or indirectly, a 37
motor vehicle dealership in this state. It is not, however, a 38
violation of this subsection for: 39
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(i) A manufacturer, distributor, factory branch, or factory 1
representative to own or operate a dealership for a temporary period, 2
not to exceed two years, during the transition from one owner of the 3
dealership to another where the dealership was previously owned by a 4
franchised dealer and is currently for sale to any qualified 5
independent person at a fair and reasonable price. The temporary 6
operation may be extended for one ((twelve-month)) 12-month period on 7
petition of the temporary operator to the department. The matter will 8
be handled as an adjudicative proceeding under chapter 34.05 RCW. A 9
dealer who is a franchisee of the petitioning manufacturer or 10
distributor may intervene and participate in a proceeding under this 11
subsection (1)(g)(i). The temporary operator has the burden of proof 12
to show justification for the extension and a good faith effort to 13
sell the dealership to an independent person at a fair and reasonable 14
price; 15
(ii) A manufacturer, distributor, factory branch, or factory 16
representative to own or operate a dealership in conjunction with an 17
independent person in a bona fide business relationship for the 18
purpose of broadening the diversity of its dealer body and enhancing 19
opportunities for qualified persons who are part of a group who have 20
historically been underrepresented in its dealer body, or other 21
qualified persons who lack the resources to purchase a dealership 22
outright, and where the independent person: (A) Has made, or within a 23
period of two years from the date of commencement of operation will 24
have made, a significant, bona fide capital investment in the 25
dealership that is subject to loss; (B) has an ownership interest in 26
the dealership; and (C) operates the dealership under a bona fide 27
written agreement with the manufacturer, distributor, factory branch, 28
or factory representative under which he or she will acquire all of 29
the ownership interest in the dealership within a reasonable period 30
of time and under reasonable terms and conditions. The manufacturer, 31
distributor, factory branch, or factory representative has the burden 32
of proof of establishing that the acquisition of the dealership by 33
the independent person was made within a reasonable period of time 34
and under reasonable terms and conditions. Nothing in this subsection 35
(1)(g)(ii) relieves a manufacturer, distributor, factory branch, or 36
factory representative from complying with (a) through (f) of this 37
subsection; 38
(iii) A manufacturer, distributor, factory branch, or factory 39
representative to own or operate a dealership in conjunction with an 40
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independent person in a bona fide business relationship where the 1
independent person: (A) Has made, or within a period of two years 2
from the date of commencement of operation will have made, a 3
significant, bona fide capital investment in the dealership that is 4
subject to loss; (B) has an ownership interest in the dealership; and 5
(C) operates the dealership under a bona fide written agreement with 6
the manufacturer, distributor, factory branch, or factory 7
representative under which he or she will acquire all of the 8
ownership interest in the dealership within a reasonable period of 9
time and under reasonable terms and conditions. The manufacturer, 10
distributor, factory branch, or factory representative has the burden 11
of proof of establishing that the acquisition of the dealership by 12
the independent person was made within a reasonable period of time 13
and under reasonable terms and conditions. The number of dealerships 14
operated under this subsection (1)(g)(iii) may not exceed four 15
percent rounded up to the nearest whole number of a manufacturer's 16
total of new motor vehicle dealer franchises in this state. Nothing 17
in this subsection (1)(g)(iii) relieves a manufacturer, distributor, 18
factory branch, or factory representative from complying with (a) 19
through (f) of this subsection; 20
(iv) A truck manufacturer to own, operate, or control a new motor 21
vehicle dealership that sells only trucks of that manufacturer's line 22
make with a gross vehicle weight rating of 12,500 pounds or more, and 23
the truck manufacturer has been continuously engaged in the retail 24
sale of the trucks at least since January 1, 1993;25
(v) A manufacturer to own, operate, or control a new motor 26
vehicle dealership trading exclusively in a single line make of the 27
manufacturer if (A) the manufacturer does not own, directly or 28
indirectly, in the aggregate, in excess of ((forty-five)) 45 percent 29
of the total ownership interest in the dealership, (B) at the time 30
the manufacturer first acquires ownership or assumes operation or 31
control of any such dealership, the distance between any dealership 32
thus owned, operated, or controlled and the nearest new motor vehicle 33
dealership trading in the same line make of vehicle and in which the 34
manufacturer has no ownership or control is not less than ((fifteen)) 35
15 miles and complies with the applicable provisions in the relevant 36
market area sections of this chapter, (C) all of the manufacturer's 37
franchise agreements confer rights on the dealer of that line make to 38
develop and operate within a defined geographic territory or area, as 39
many dealership facilities as the dealer and the manufacturer agree 40
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are appropriate, and (D) as of January 1, 2000, the manufacturer had 1
no more than four new motor vehicle dealers of that manufacturer's 2
line make in this state, and at least half of those dealers owned and 3
operated two or more dealership facilities in the geographic 4
territory or area covered by their franchise agreements with the 5
manufacturer; 6
(vi) A final-stage manufacturer to own, operate, or control a new 7
motor vehicle dealership; or 8
(vii) A manufacturer that ((held a vehicle dealer license in this 9
state on January 1, 2014 )) is incorporated in the United States, has 10
never entered into a franchise agreement with a motor vehicle dealer, 11
has operated at least one service facility in this state as of 12
January 1, 2026, and exclusively produces battery electric vehicles 13
of which at least 300 were registered to Washington state residents 14
before January 1, 2026 , to own, operate, or control a new motor 15
vehicle dealership that sells new vehicles that are only of that 16
manufacturer's makes or lines and that are not sold new by a licensed 17
independent franchise dealer, or to own, operate, or control or 18
contract with companies that provide finance, leasing, or service for 19
vehicles that are of that manufacturer's makes or lines , so long as 20
the manufacturer or its subsidiaries do not, after the effective date 21
of this section, distribute vehicles on behalf of a manufacturer 22
prohibited by law from acting in the capacity of a motor vehicle 23
dealer or become subject to the majority ownership or control of a 24
manufacturer prohibited by law from acting in the capacity of a motor 25
vehicle dealer. Regardless of ownership interest, a manufacturer 26
prohibited by law from acting in the capacity of a motor vehicle 27
dealer shall not use its ownership interest in a manufacturer 28
exempted under this subsection (1)(g)(vii) to violate any provisions 29
under (g) of this subsection. Private parties may initiate an action 30
pursuant to RCW 46.96.260 to obtain relief and enjoin further 31
violations of this subsection (1)(g)(vii). For purposes of this 32
subsection (1)(g)(vii):33
(A) "Battery electric vehicle" means any vehicle that operates 34
solely by use of a battery or battery pack, or that is powered 35
primarily through the use of an electric battery or battery pack but 36
uses a flywheel or capacitor that stores energy produced by the 37
electric motor or through regenerative braking to assist in vehicle 38
operation, so long as none of these components rely on power 39
generated by fossil fuels or hydrogen;40
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(B) "Manufacturer prohibited by law from acting in the capacity 1
of a motor vehicle dealer" includes the manufacturer as well as its 2
distributor, factory branch, factory representative, agent, officer, 3
parent company, wholly or partially owned subsidiary, affiliated 4
entity, or other person controlled by or under common control 5
thereof; 6
(h) Compete with a new motor vehicle dealer by owning, operating, 7
or controlling, whether directly or indirectly, a service facility in 8
this state for the repair or maintenance of motor vehicles under the 9
manufacturer's new car warranty and extended warranty. Nothing in 10
this subsection (1)(h), however, prohibits a manufacturer, 11
distributor, factory branch, or factory representative from owning or 12
operating a service facility for the purpose of providing or 13
performing maintenance, repair, or service work on motor vehicles 14
that are owned by the manufacturer, distributor, factory branch, or 15
factory representative; 16
(i) Use confidential or proprietary information obtained from a 17
new motor vehicle dealer to unfairly compete with the dealer. For 18
purposes of this subsection (1)(i), "confidential or proprietary 19
information" means trade secrets as defined in RCW 19.108.010, 20
business plans, marketing plans or strategies, customer lists, 21
contracts, sales data, revenues, or other financial information;22
(j)(i) Terminate, cancel, or fail to renew a franchise with a new 23
motor vehicle dealer based upon any of the following events, which do 24
not constitute good cause for termination, cancellation, or 25
nonrenewal under RCW 46.96.060: (A) The fact that the new motor 26
vehicle dealer owns, has an investment in, participates in the 27
management of, or holds a franchise agreement for the sale or service 28
of another make or line of new motor vehicles; (B) the fact that the 29
new motor vehicle dealer has established another make or line of new 30
motor vehicles or service in the same dealership facilities as those 31
of the manufacturer or distributor; (C) that the new motor vehicle 32
dealer has or intends to relocate the manufacturer or distributor's 33
make or line of new motor vehicles or service to an existing 34
dealership facility that is within the relevant market area, as 35
defined in RCW 46.96.140, of the make or line to be relocated, except 36
that, in any nonemergency circumstance, the dealer must give the 37
manufacturer or distributor at least ((sixty)) 60 days' notice of his 38
or her intent to relocate and the relocation must comply with RCW 39
46.96.140 and 46.96.150 for any same make or line facility; or (D) 40
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the failure of a franchisee to change the location of the dealership 1
or to make substantial alterations to the use or number of franchises 2
on the dealership premises or facilities. 3
(ii) Notwithstanding the limitations of this section, a 4
manufacturer may, for separate consideration, enter into a written 5
contract with a dealer to exclusively sell and service a single make 6
or line of new motor vehicles at a specific facility for a defined 7
period of time. The penalty for breach of the contract must not 8
exceed the amount of consideration paid by the manufacturer plus a 9
reasonable rate of interest; 10
(k) Coerce or attempt to coerce a motor vehicle dealer to refrain 11
from, or prohibit or attempt to prohibit a new motor vehicle dealer 12
from acquiring, owning, having an investment in, participating in the 13
management of, or holding a franchise agreement for the sale or 14
service of another make or line of new motor vehicles or related 15
products, or establishing another make or line of new motor vehicles 16
or service in the same dealership facilities, if the prohibition 17
against acquiring, owning, investing, managing, or holding a 18
franchise for such additional make or line of vehicles or products, 19
or establishing another make or line of new motor vehicles or service 20
in the same dealership facilities, is not supported by reasonable 21
business considerations. The burden of proving that reasonable 22
business considerations support or justify the prohibition against 23
the additional make or line of new motor vehicles or products or 24
nonexclusive facilities is on the manufacturer; 25
(l) Require, by contract or otherwise, a new motor vehicle dealer 26
to make a material alteration, expansion, or addition to any 27
dealership facility, unless the required alteration, expansion, or 28
addition is uniformly required of other similarly situated new motor 29
vehicle dealers of the same make or line of vehicles and is 30
reasonable in light of all existing circumstances, including economic 31
conditions. In any proceeding in which a required facility 32
alteration, expansion, or addition is an issue, the manufacturer or 33
distributor has the burden of proof. Except for a program or any 34
renewal or modification of a program that is in effect with one or 35
more new motor vehicle dealers in this state on June 12, 2014, a 36
manufacturer shall not require, coerce, or attempt to coerce any new 37
motor vehicle dealer by program, policy, standard, or otherwise to 38
change the location of the dealership or construct, replace, 39
renovate, or make any substantial changes, alterations, or remodeling 40
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to a new motor vehicle dealer's sales or service facilities, except 1
as necessary to comply with health or safety laws or to comply with 2
technology requirements without which a dealer would be unable to 3
service a vehicle the dealer has elected to sell, before the 4
((tenth)) 10th anniversary of the date of issuance of the certificate 5
of occupancy or the manufacturer's approval, whichever is later, 6
from: 7
(i) The date construction of the dealership at that location was 8
completed if the construction was in substantial compliance with 9
standards or plans provided by a manufacturer, distributor, or 10
representative or through a subsidiary or agent of the manufacturer, 11
distributor, or representative; or 12
(ii) The date a prior change, alteration, or remodel of the 13
dealership at that location was completed if the construction was in 14
substantial compliance with standards or plans provided by a 15
manufacturer, distributor, or representative or through a subsidiary 16
or agent of the manufacturer, distributor, or representative;17
(m) Prevent or attempt to prevent by contract or otherwise any 18
new motor vehicle dealer from changing the executive management of a 19
new motor vehicle dealer unless the manufacturer or distributor, 20
having the burden of proof, can show that a proposed change of 21
executive management will result in executive management by a person 22
or persons who are not of good moral character or who do not meet 23
reasonable, preexisting, and equitably applied standards of the 24
manufacturer or distributor. If a manufacturer or distributor rejects 25
a proposed change in the executive management, the manufacturer or 26
distributor shall give written notice of its reasons to the dealer 27
within ((sixty)) 60 days after receiving written notice from the 28
dealer of the proposed change and all related information reasonably 29
requested by the manufacturer or distributor, or the change in 30
executive management must be considered approved; 31
(n) Condition the sale, transfer, relocation, or renewal of a 32
franchise agreement or condition manufacturer, distributor, factory 33
branch, or factory representative sales, services, or parts 34
incentives upon the manufacturer obtaining site control, including 35
rights to purchase or lease the dealer's facility, or an agreement to 36
make improvements or substantial renovations to a facility. For 37
purposes of this section, a substantial renovation has a gross cost 38
to the dealer in excess of ((five thousand dollars)) $5,000;39
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(o) Fail to provide to a new motor vehicle dealer purchasing or 1
leasing building materials or other facility improvements the right 2
to purchase or lease franchisor image elements of like kind and 3
quality from an alternative vendor selected by the dealer if the 4
goods or services are to be supplied by a vendor selected, 5
identified, or designated by the manufacturer or distributor. If the 6
vendor selected by the manufacturer or distributor is the only 7
available vendor of like kind and quality materials, the new motor 8
vehicle dealer must be given the opportunity to purchase the 9
franchisor image elements at a price substantially similar to the 10
capitalized lease costs of the elements. This subsection (1)(o) must 11
not be construed to allow a new motor vehicle dealer or vendor to 12
gain additional intellectual property rights they are not otherwise 13
entitled to or to impair or eliminate the intellectual property 14
rights of the manufacturer or distributor or to permit a new motor 15
vehicle dealer to erect or maintain signs that do not conform to the 16
reasonable intellectual property usage guidelines of the manufacturer 17
or distributor; 18
(p) Take any adverse action against a new motor vehicle dealer 19
including, but not limited to, charge backs or reducing vehicle 20
allocations, for sales and service performance within a designated 21
area of primary responsibility unless that area is reasonable in 22
light of proximity to relevant census tracts to the dealership and 23
competing dealerships, highways and road networks, any natural or 24
man-made barriers, demographics, including economic factors, buyer 25
behavior information, and contains only areas inside the state of 26
Washington unless specifically approved by the new motor vehicle 27
dealer; 28
(q) Require, coerce, or attempt to coerce any new motor vehicle 29
dealer by program, policy, facility guide, standard, or otherwise to 30
order or accept delivery of any service or repair appliances, 31
equipment, parts, or accessories, or any other commodity not required 32
by law, which the dealer has not voluntarily ordered or which the 33
dealer does not have the right to return unused for a full refund 34
within ((ninety)) 90 days or a longer period as mutually agreed upon 35
by the dealer and manufacturer; or 36
(r) Modify the franchise agreement for any new motor vehicle 37
dealer unless the manufacturer notifies the dealer in writing of its 38
intention to modify the agreement at least ((ninety)) 90 days before 39
the effective date thereof, stating the specific grounds for the 40
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modification, and undertakes the modification in good faith, for good 1
cause, and in a manner that would not adversely and substantially 2
alter the rights, obligations, investment, or return on investment of 3
the franchised new motor vehicle dealer under the existing agreement.4
(2) Subsection (1)(a), (b), and (c) of this section do not apply 5
to sales to a motor vehicle dealer: (a) For resale to a federal, 6
state, or local government agency; (b) where the vehicles will be 7
sold or donated for use in a program of driver's education; (c) where 8
the sale is made under a manufacturer's bona fide promotional program 9
offering sales incentives or rebates; (d) where the sale of parts or 10
accessories is under a manufacturer's bona fide quantity discount 11
program; or (e) where the sale is made under a manufacturer's bona 12
fide fleet vehicle discount program. For purposes of this subsection, 13
"fleet" means a group of ((fifteen)) 15 or more new motor vehicles 14
purchased or leased by a dealer at one time under a single purchase 15
or lease agreement for use as part of a fleet, and where the dealer 16
has been assigned a fleet identifier code by the department of 17
licensing. 18
(3) The following definitions apply to this section:19
(a) "Actual price" means the price to be paid by the dealer less 20
any incentive paid by the manufacturer, distributor, factory branch, 21
or factory representative, whether paid to the dealer or the ultimate 22
purchaser of the vehicle. 23
(b) "Control" or "controlling" means (i) the possession of, title 24
to, or control of ((ten)) 10 percent or more of the voting equity 25
interest in a person, whether directly or indirectly through a 26
fiduciary, agent, or other intermediary, or (ii) the possession, 27
direct or indirect, of the power to direct or cause the direction of 28
the management or policies of a person, whether through the ownership 29
of voting securities, through director control, by contract, or 30
otherwise, except as expressly provided under the franchise 31
agreement. 32
(c) "Motor vehicles" does not include trucks that are 14,001 33
pounds gross vehicle weight and above or recreational vehicles as 34
defined in RCW 43.22.335. 35
(d) "Operate" means to manage a dealership, whether directly or 36
indirectly. 37
(e) "Own" or "ownership" means to hold the beneficial ownership 38
of one percent or more of any class of equity interest in a 39
dealership, whether the interest is that of a shareholder, partner, 40
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limited liability company member, or otherwise. To hold an ownership 1
interest means to have possession of, title to, or control of the 2
ownership interest, whether directly or indirectly through a 3
fiduciary, agent, or other intermediary. 4
(4) A violation of this section is deemed to affect the public 5
interest and constitutes an unlawful and unfair practice under 6
chapter 19.86 RCW. A person aggrieved by an alleged violation of this 7
section may petition the department to have the matter handled as an 8
adjudicative proceeding under chapter 34.05 RCW. 9
Sec. 3. RCW 46.70.041 and 2001 c 272 s 3 are each amended to 10
read as follows: 11
(1) Every application for a vehicle dealer license shall contain 12
the following information to the extent it applies to the applicant:13
(a) Proof as the department may require concerning the 14
applicant's identity, including but not limited to his or her 15
fingerprints, the honesty, truthfulness, and good reputation of the 16
applicant for the license, or of the officers of a corporation making 17
the application; 18
(b) The applicant's form and place of organization including if 19
the applicant is a corporation, proof that the corporation is 20
licensed to do business in this state; 21
(c) The qualification and business history of the applicant and 22
any partner, officer, or director; 23
(d) The applicant's financial condition or history including a 24
bank reference and whether the applicant or any partner, officer, or 25
director has ever been adjudged bankrupt or has any unsatisfied 26
judgment in any federal or state court; 27
(e) Whether the applicant has been adjudged guilty of a crime 28
which directly relates to the business for which the license is 29
sought and the time elapsed since the conviction is less than ten 30
years, or has suffered any judgment within the preceding five years 31
in any civil action involving fraud, misrepresentation, or conversion 32
and in the case of a corporation or partnership, all directors, 33
officers, or partners; 34
(f) A business telephone with a listing in the local directory;35
(g) The name or names of new vehicles the vehicle dealer wishes 36
to sell; 37
(h) The names and addresses of each manufacturer from whom the 38
applicant has received a franchise; 39
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(i) A certificate by a representative of the department, that the 1
applicant's principal place of business and each subagency business 2
location in the state of Washington meets the location requirements 3
as required by this chapter. The certificate shall include proof of 4
the applicant's ownership or lease of the real property where the 5
applicant's principal place of business is established;6
(j) A copy of a current service agreement with a manufacturer, or 7
distributor for a foreign manufacturer, requiring the applicant, upon 8
demand of any customer receiving a new vehicle warranty to perform or 9
arrange for, within a reasonable distance of his or her established 10
place of business, the service repair and replacement work required 11
of the manufacturer or distributor by such vehicle warranty. This 12
requirement applies only to applicants seeking to sell, to exchange, 13
to offer, to auction, to solicit, to advertise, or to broker new or 14
current-model vehicles with factory or distributor warranties;15
(k) The class of vehicles the vehicle dealer will be buying, 16
selling, listing, exchanging, offering, brokering, leasing, 17
auctioning, soliciting, or advertising, and which classification or 18
classifications the dealer wishes to be designated as;19
(l) Effective July 1, 2002, a certificate from the provider of 20
each education program or test showing that the applicant has 21
completed the education programs and passed the test required under 22
RCW 46.70.079 if the applicant is a dealer subject to the education 23
and test requirements; 24
(m) Any other information the department may reasonably require.25
(2) If the applicant is a manufacturer the application shall 26
contain the following information to the extent it is applicable to 27
the applicant: 28
(a) The name and address of the principal place of business of 29
the applicant and, if different, the name and address of the 30
Washington state representative of the applicant; 31
(b) The name or names under which the applicant will do business 32
in the state of Washington; 33
(c) Evidence that the applicant is authorized to do business in 34
the state of Washington; 35
(d) The name or names of the vehicles that the licensee 36
manufactures; 37
(e) The name or names and address or addresses of each and every 38
distributor, factory branch, and factory representative;39
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(f) The name or names and address or addresses of resident 1
employees or agents to provide service or repairs to vehicles located 2
in the state of Washington only under the terms of any warranty 3
attached to new or unused vehicles manufactured, unless such 4
manufacturer requires warranty service to be performed by all of its 5
dealers pursuant to a current service agreement on file with the 6
department; 7
(g) Any other information the department may reasonably require.8
(3) To own, operate, or control a motor vehicle dealership as 9
authorized under RCW 46.96.185(1)(g)(vii), a qualifying manufacturer 10
must apply for and maintain a vehicle dealer license issued under 11
this chapter and subject to chapter 19.86 RCW and applicable 12
governing rules adopted by the department, not inconsistent with the 13
provisions under RCW 46.96.185(1)(g). When applying for or renewing a 14
vehicle dealer license under this chapter, such a qualifying 15
manufacturer shall submit to the department a sworn affidavit by the 16
manufacturer's authorized agent attesting to the manufacturer's 17
satisfaction of all eligibility criteria set forth in RCW 18
46.96.185(1)(g)(vii).19
Sec. 4. RCW 46.70.045 and 2014 c 214 s 1 are each amended to 20
read as follows: 21
(1) The director may deny a license under this chapter when the 22
application is a subterfuge that conceals the real person in interest 23
whose license has been denied, suspended, or revoked for cause under 24
this chapter and the terms have not been fulfilled or a civil penalty 25
has not been paid, the director finds that the application was not 26
filed in good faith, or the issuance of a new license or subagency 27
would cause a manufacturer, distributor, factory branch, or factory 28
representative, or an agent, officer, parent company, wholly or 29
partially owned subsidiary, affiliated entity, or other person 30
controlled by or under common control with a manufacturer, 31
distributor, factory branch, or factory representative, to be in 32
violation of chapter 46.96 RCW. 33
(2) The director must deny a license issued under RCW 34
46.70.041(3) when the application is found to have met one of the 35
conditions described under subsection (1) of this section.36
(3) This section does not preclude the department from taking an 37
action against a current licensee. 38
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Sec. 5. RCW 46.70.101 and 2011 c 171 s 91 are each amended to 1
read as follows: 2
The director may by order deny, suspend, or revoke the license of 3
any vehicle dealer or vehicle manufacturer or, in lieu thereof or in 4
addition thereto, may by order assess monetary penalties of a civil 5
nature not to exceed one thousand dollars per violation, if the 6
director finds that the order is in the public interest and that the 7
applicant or licensee: 8
(1) In the case of a vehicle dealer: 9
(a) The applicant or licensee, or any partner, officer, director, 10
owner of ten percent or more of the assets of the firm, or managing 11
employee: 12
(i) Was the holder of a license issued pursuant to this chapter, 13
which was revoked for cause and never reissued by the department, or 14
which license was suspended for cause and the terms of the suspension 15
have not been fulfilled or which license was assessed a civil penalty 16
and the assessed amount has not been paid; 17
(ii) Has been adjudged guilty of a crime which directly relates 18
to the business of a vehicle dealer and the time elapsed since the 19
adjudication is less than ten years, or suffering any judgment within 20
the preceding five years in any civil action involving fraud, 21
misrepresentation, or conversion. For the purposes of this section, 22
"adjudged guilty" means in addition to a final conviction in either a 23
state or municipal court, an unvacated forfeiture of bail or 24
collateral deposited to secure a defendant's appearance in court, the 25
payment of a fine, a plea of guilty, or a finding of guilt regardless 26
of whether the sentence is deferred or the penalty is suspended;27
(iii) Has knowingly or with reason to know made a false statement 28
of a material fact in his or her application for license or any data 29
attached thereto, or in any matter under investigation by the 30
department; 31
(iv) Has knowingly, or with reason to know, provided the 32
department with false information relating to the number of vehicle 33
sales transacted during the past one year in order to obtain a 34
vehicle dealer license plate; 35
(v) Does not have an established place of business as required in 36
this chapter; 37
(vi) Refuses to allow representatives or agents of the department 38
to inspect during normal business hours all books, records, and files 39
maintained within this state; 40
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(vii) Sells, exchanges, offers, brokers, auctions, solicits, or 1
advertises a new or current model vehicle to which a factory new 2
vehicle warranty attaches and fails to have a valid, written service 3
agreement as required by this chapter, or having such agreement 4
refuses to honor the terms of such agreement within a reasonable time 5
or repudiates the same, except for sales by wholesale motor vehicle 6
auction dealers to franchise motor vehicle dealers of the same make 7
licensed under this title or franchise motor vehicle dealers of the 8
same make licensed by any other state; 9
(viii) Is insolvent, either in the sense that their liabilities 10
exceed their assets, or in the sense that they cannot meet their 11
obligations as they mature; 12
(ix) Fails to pay any civil monetary penalty assessed by the 13
director pursuant to this section within ten days after such 14
assessment becomes final; 15
(x) Fails to notify the department of bankruptcy proceedings in 16
the manner required by RCW 46.70.183; 17
(xi) Knowingly, or with reason to know, allows a salesperson 18
employed by the dealer, or acting as their agent, to commit any of 19
the prohibited practices set forth in subsection (1)(a) of this 20
section and RCW 46.70.180; 21
(xii) Fails to have a current certificate or registration with 22
the department of revenue. 23
(b) The applicant or licensee, or any partner, officer, director, 24
owner of ten percent of the assets of the firm, or any employee or 25
agent: 26
(i) Has failed to comply with the applicable provisions of 27
chapter 46.12 or 46.16A RCW or this chapter or any rules and 28
regulations adopted thereunder; 29
(ii) Has defrauded or attempted to defraud the state, or a 30
political subdivision thereof of any taxes or fees in connection with 31
the sale, lease, or transfer of a vehicle; 32
(iii) Has forged the signature of the registered or legal owner 33
on a certificate of title; 34
(iv) Has purchased, sold, disposed of, or has in his or her 35
possession any vehicle which he or she knows or has reason to know 36
has been stolen or appropriated without the consent of the owner;37
(v) Has willfully failed to deliver to a purchaser or owner a 38
certificate of title to a vehicle which he or she has sold or leased;39
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(vi) Has committed any act in violation of RCW 46.70.090 relating 1
to vehicle dealer license plates or manufacturer license plates;2
(vii) Has committed any act in violation of RCW 46.70.180 3
relating to unlawful acts and practices; 4
(viii) Has engaged in practices inimical to the health or safety 5
of the citizens of the state of Washington including but not limited 6
to failure to comply with standards set by the state of Washington or 7
the federal government pertaining to the construction or safety of 8
vehicles, except for sales by wholesale motor vehicle auction dealers 9
to motor vehicle dealers and vehicle wreckers licensed under this 10
title or motor vehicle dealers licensed by any other state;11
(ix) Has aided or assisted an unlicensed dealer or salesperson in 12
unlawful activity through active or passive participation in sales, 13
allowing use of facilities, dealer license number, or by any other 14
means; 15
(x) Converts or appropriates, whether temporarily or permanently, 16
property or funds belonging to a customer, dealer, or manufacturer, 17
without the consent of the owner of the property or funds; or18
(xi) Has sold any vehicle with actual knowledge that:19
(A) It has any of the following brands on the title: "SALVAGE/20
REBUILT," "JUNK," or "DESTROYED"; or 21
(B) It has been declared totaled out by an insurance carrier and 22
then rebuilt; or 23
(C) The vehicle title contains the specific comment that the 24
vehicle is "rebuilt"; 25
without clearly disclosing that brand or comment in writing.26
(c) The licensee or any partner, officer, director, or owner of 27
ten percent or more of the assets of the firm holds or has held any 28
such position in any other vehicle dealership licensed pursuant to 29
this chapter which is subject to final proceedings under this 30
section. 31
(2) In the case of a manufacturer, or any partner, officer, 32
director, or majority shareholder: 33
(a) Was or is the holder of a license issued pursuant to this 34
chapter which was revoked for cause and never reissued by the 35
department, or which license was suspended for cause and the terms of 36
the suspension have not been fulfilled, or which license was assessed 37
a civil penalty and the assessed amount has not been paid;38
(b) Has knowingly or with reason to know, made a false statement 39
of a material fact in his or her application for license, or any data 40
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attached thereto, or in any matter under investigation by the 1
department; 2
(c) Has failed to comply with the applicable provisions of 3
chapter 46.12 or 46.16A RCW or this chapter or any rules and 4
regulations adopted thereunder; 5
(d) Has defrauded or attempted to defraud the state or a 6
political subdivision thereof, of any taxes or fees in connection 7
with the sale, lease, or transfer of a vehicle; 8
(e) Has purchased, sold, leased, disposed of, or has in his or 9
her possession, any vehicle which he or she knows or has reason to 10
know has been stolen or appropriated without the consent of the 11
owner; 12
(f) Has committed any act in violation of RCW 46.70.090 relating 13
to vehicle dealer license plates and manufacturer license plates;14
(g) Has committed any act in violation of RCW 46.70.180 relating 15
to unlawful acts and practices; 16
(h) Sells or distributes in this state or transfers into this 17
state for resale or for lease, any new or unused vehicle to which a 18
warranty attaches or has attached and refuses to honor the terms of 19
such warranty within a reasonable time or repudiates the same;20
(i) Fails to maintain one or more resident employees or agents to 21
provide service or repairs to vehicles located within the state of 22
Washington only under the terms of any warranty attached to new or 23
unused vehicles manufactured and which are or have been sold or 24
distributed in this state or transferred into this state for resale 25
or for lease unless such manufacturer requires warranty service to be 26
performed by all of its dealers pursuant to a current service 27
agreement on file with the department; 28
(j) Fails to reimburse within a reasonable time any vehicle 29
dealer within the state of Washington who in good faith incurs 30
reasonable obligations in giving effect to warranties that attach or 31
have attached to any new or unused vehicle sold, leased, or 32
distributed in this state or transferred into this state for resale 33
or for lease by any such manufacturer; 34
(k) Engaged in practices inimical to the health and safety of the 35
citizens of the state of Washington including, but not limited to, 36
failure to comply with standards set by the state of Washington or 37
the federal government pertaining to the construction and safety of 38
vehicles; 39
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(l) Is insolvent either in the sense that his or her liabilities 1
exceed his or her assets or in the sense that he or she cannot meet 2
his or her obligations as they mature; 3
(m) Fails to notify the department of bankruptcy proceedings in 4
the manner required by RCW 46.70.183. 5
(3) In the case of a manufacturer issued a vehicle dealer license 6
pursuant to RCW 46.70.041(3) and 46.96.185(1)(g)(vii), and in 7
addition to the grounds enumerated in subsections (1) and (2) of this 8
section, ceases to satisfy all eligibility criteria under RCW 9
46.96.185(1)(g)(vii). The department must revoke such a vehicle 10
dealer license within 30 days. This subsection must be enforced by 11
the department and the office of the attorney general consistent with 12
RCW 46.70.102, 46.70.111, and 46.70.220.13
Sec. 6. RCW 46.70.170 and 1986 c 241 s 17 are each amended to 14
read as follows: 15
(1) It is a misdemeanor for any person to violate any of the 16
provisions of this chapter, except where expressly provided 17
otherwise, and the rules adopted as provided under this chapter.18
(2) A penalty of $10,000 must be assessed for each retail sale or 19
lease transaction consummated in this state after the effective date 20
of this section by a manufacturer that is prohibited by law from 21
acting in the capacity of a motor vehicle dealer and is ineligible 22
for exemption under RCW 46.96.185(1)(g). The department and the 23
office of the attorney general must enforce this subsection 24
consistent with RCW 46.70.102, 46.70.111, and 46.70.220.25
Sec. 7. RCW 46.70.180 and 2022 c 182 s 211 are each amended to 26
read as follows: 27
Each of the following acts or practices is unlawful:28
(1) To cause or permit to be advertised, printed, displayed, 29
published, distributed, broadcasted, televised, or disseminated in 30
any manner whatsoever, any statement or representation with regard to 31
the sale, lease, or financing of a vehicle which is false, deceptive, 32
or misleading((,)) including, but not limited to, the following:33
(a) That no down payment is required in connection with the sale 34
of a vehicle when a down payment is in fact required, or that a 35
vehicle may be purchased for a smaller down payment than is actually 36
required; 37
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(b) That a certain percentage of the sale price of a vehicle may 1
be financed when such financing is not offered in a single document 2
evidencing the entire security transaction; 3
(c) That a certain percentage is the amount of the service charge 4
to be charged for financing, without stating whether this percentage 5
charge is a monthly amount or an amount to be charged per year;6
(d) That a new vehicle will be sold for a certain amount above or 7
below cost without computing cost as the exact amount of the factory 8
invoice on the specific vehicle to be sold; 9
(e) That a vehicle will be sold upon a monthly payment of a 10
certain amount, without including in the statement the number of 11
payments of that same amount which are required to liquidate the 12
unpaid purchase price. 13
(2)(a)(i) To incorporate within the terms of any purchase and 14
sale or lease agreement any statement or representation with regard 15
to the sale, lease, or financing of a vehicle which is false, 16
deceptive, or misleading ((,)) including, but not limited to , terms 17
that include as an added cost to the selling price or capitalized 18
cost of a vehicle an amount for licensing or transfer of title of 19
that vehicle which is not actually due to the state, unless such 20
amount has in fact been paid by the dealer prior to such sale.21
(ii) However, an amount not to exceed (($200)) $250, from the 22
effective date of this section until December 31, 2036, and $225, 23
beginning January 1, 2037, per vehicle sale or lease may be charged 24
by a dealer to recover administrative costs for collecting motor 25
vehicle excise taxes, licensing and registration fees and other 26
agency fees, verifying and clearing titles, transferring titles, 27
perfecting, releasing, or satisfying liens or other security 28
interests, and other administrative and documentary services rendered 29
by a dealer in connection with the sale or lease of a vehicle and in 30
carrying out the requirements of this chapter or any other provisions 31
of state law. 32
(b) A dealer may charge the documentary service fee in (a) of 33
this subsection under the following conditions: 34
(i) The documentary service fee is disclosed in writing to a 35
prospective purchaser or lessee before the execution of a purchase 36
and sale or lease agreement; 37
(ii) The dealer discloses to the purchaser or lessee in writing 38
that the documentary service fee is a negotiable fee. The disclosure 39
must be written in a typeface that is at least as large as the 40
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typeface used in the standard text of the document that contains the 1
disclosure and that is boldfaced, capitalized, underlined, or 2
otherwise set out from the surrounding material so as to be 3
conspicuous. The dealer shall not represent to the purchaser or 4
lessee that the fee or charge is required by the state to be paid by 5
either the dealer or prospective purchaser or lessee;6
(iii) The documentary service fee is separately designated from 7
the selling price or capitalized cost of the vehicle and from any 8
other taxes, fees, or charges; ((and))9
(iv) Dealers disclose in any advertisement that a documentary 10
service fee in an amount up to (($200)) $250, from the effective date 11
of this section until December 31, 2036, and $225, beginning January 12
1, 2037, may be added to the sale price or the capitalized cost; and13
(v) Until December 31, 2036, the dealer transfers 50 percent of 14
any documentary service fee collected in excess of $200 to the 15
department of licensing to be distributed as follows:16
(A) Twenty-five percent to the electric vehicle account created 17
in RCW 82.44.200 for instant rebates for the purchase of used 18
electric vehicles for persons with household incomes at or below 300 19
percent of the federal poverty level; and20
(B) Seventy-five percent to the multimodal transportation 21
account. 22
For the purposes of this subsection (2), the term "documentary 23
service fee" means the optional amount charged by a dealer to provide 24
the services specified in (a) of this subsection. 25
(3) To set up, promote, or aid in the promotion of a plan by 26
which vehicles are to be sold or leased to a person for a 27
consideration and upon further consideration that the purchaser or 28
lessee agrees to secure one or more persons to participate in the 29
plan by respectively making a similar purchase and in turn agreeing 30
to secure one or more persons likewise to join in said plan, each 31
purchaser or lessee being given the right to secure money, credits, 32
goods, or something of value, depending upon the number of persons 33
joining the plan. 34
(4) To commit, allow, or ratify any act of "bushing" which is 35
defined as follows: Entering into a written contract, written 36
purchase order or agreement, retail installment sales agreement, note 37
and security agreement, or written lease agreement, hereinafter 38
collectively referred to as contract or lease, signed by the 39
prospective buyer or lessee of a vehicle, which: 40
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(a) Is subject to any conditions or the dealer's or his or her 1
authorized representative's future acceptance, and the dealer fails 2
or refuses within the "bushing" period, which is four calendar days, 3
exclusive of Saturday, Sunday, or legal holiday, and prior to any 4
further negotiations with said buyer or lessee to inform the buyer or 5
lessee either: (i) That the dealer unconditionally accepts the 6
contract or lease, having satisfied, removed, or waived all 7
conditions to acceptance or performance, including, but not limited 8
to, financing, assignment, or lease approval; or (ii) that the dealer 9
rejects the contract or lease, thereby automatically voiding the 10
contract or lease, as long as such voiding does not negate 11
commercially reasonable contract or lease provisions pertaining to 12
the return of the subject vehicle and any physical damage, excessive 13
mileage after the demand for return of the vehicle, and attorneys' 14
fees authorized by law, and tenders the refund of any initial payment 15
or security made or given by the buyer or lessee, including, but not 16
limited to, any down payment, and tenders return of the trade-in 17
vehicle, key, other trade-in, or certificate of title to a trade-in. 18
Tender may be conditioned on return of the subject vehicle if 19
previously delivered to the buyer or lessee. 20
The provisions of this subsection (4)(a) do not impair, 21
prejudice, or abrogate the rights of a dealer to assert a claim 22
against the buyer or lessee for misrepresentation or breach of 23
contract and to exercise all remedies available at law or in equity, 24
including those under chapter 62A.9A RCW, if the dealer, bank, or 25
other lender or leasing company discovers that approval of the 26
contract or financing or approval of the lease was based upon 27
material misrepresentations made by the buyer or lessee, including, 28
but not limited to, misrepresentations regarding income, employment, 29
or debt of the buyer or lessee, as long as the dealer, or his or her 30
staff, has not, with knowledge of the material misrepresentation, 31
aided, assisted, encouraged, or participated, directly or indirectly, 32
in the misrepresentation. A dealer shall not be in violation of this 33
subsection (4)(a) if the buyer or lessee made a material 34
misrepresentation to the dealer, as long as the dealer, or his or her 35
staff, has not, with knowledge of the material misrepresentation, 36
aided, assisted, encouraged, or participated, directly or indirectly, 37
in the misrepresentation. 38
A dealer may inform a buyer or lessee under this subsection 39
(4)(a) regarding the unconditional acceptance or rejection of the 40
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contract, lease, or financing by sending an email message to the 1
buyer's or lessee's supplied email address, by phone call, by leaving 2
a voice message or sending a text message to a phone number provided 3
by the buyer or lessee, by in-person oral communication, by mailing a 4
letter by first-class mail if the buyer or lessee expresses a 5
preference for a letter or declines to provide an email address and a 6
phone number capable of receiving a free text message, or by another 7
means agreed to by the buyer or lessee or approved by the department, 8
effective upon the execution, mailing, or sending of the 9
communication and before expiration of the "bushing" period;10
(b) Permits the dealer to renegotiate a dollar amount specified 11
as trade-in allowance on a vehicle delivered or to be delivered by 12
the buyer or lessee as part of the purchase price or lease, for any 13
reason except: 14
(i) Failure to disclose that the vehicle's certificate of title 15
has been branded for any reason, including, but not limited to, 16
status as a rebuilt vehicle as provided in RCW 46.12.540 and 17
46.12.560; or 18
(ii) Substantial physical damage or latent mechanical defect 19
occurring before the dealer took possession of the vehicle and which 20
could not have been reasonably discoverable at the time of the taking 21
of the order, offer, or contract; or 22
(iii) Excessive additional miles or a discrepancy in the mileage. 23
"Excessive additional miles" means the addition of 500 miles or more, 24
as reflected on the vehicle's odometer, between the time the vehicle 25
was first valued by the dealer for purposes of determining its trade-26
in value and the time of actual delivery of the vehicle to the 27
dealer. "A discrepancy in the mileage" means (A) a discrepancy 28
between the mileage reflected on the vehicle's odometer and the 29
stated mileage on the signed odometer statement; or (B) a discrepancy 30
between the mileage stated on the signed odometer statement and the 31
actual mileage on the vehicle; or 32
(c) Fails to comply with the obligation of any written warranty 33
or guarantee given by the dealer requiring the furnishing of services 34
or repairs within a reasonable time. 35
(5) To commit any offense relating to odometers, as such offenses 36
are defined in RCW 46.37.540, 46.37.550, 46.37.560, and 46.37.570. A 37
violation of this subsection is a class C felony punishable under 38
chapter 9A.20 RCW. 39
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(6) For any vehicle dealer or vehicle salesperson to refuse to 1
furnish, upon request of a prospective purchaser or lessee, for 2
vehicles previously registered to a business or governmental entity, 3
the name and address of the business or governmental entity.4
(7) To commit any other offense under RCW 46.37.423, 46.37.424, 5
or 46.37.425. 6
(8) To commit any offense relating to a dealer's temporary 7
license permit ((,)) including, but not limited to , failure to 8
properly complete each such permit, or the issuance of more than one 9
such permit on any one vehicle. However, a dealer may issue a second 10
temporary permit on a vehicle if the following conditions are met:11
(a) The lienholder fails to deliver the vehicle title to the 12
dealer within the required time period; 13
(b) The dealer has satisfied the lien; and 14
(c) The dealer has proof that payment of the lien was made within 15
two calendar days, exclusive of Saturday, Sunday, or a legal holiday, 16
after the sales contract has been executed by all parties and all 17
conditions and contingencies in the sales contract have been met or 18
otherwise satisfied. 19
(9) For a dealer, salesperson, or mobile home manufacturer, 20
having taken an instrument or cash "on deposit" from a purchaser or 21
lessee prior to the delivery of the bargained-for vehicle, to 22
commingle the "on deposit" funds with assets of the dealer, 23
salesperson, or mobile home manufacturer instead of holding the "on 24
deposit" funds as trustee in a separate trust account until the 25
purchaser or lessee has taken delivery of the bargained-for vehicle. 26
Delivery of a manufactured home shall be deemed to occur in 27
accordance with RCW 46.70.135(5). Failure, immediately upon receipt, 28
to endorse "on deposit" instruments to such a trust account, or to 29
set aside "on deposit" cash for deposit in such trust account, and 30
failure to deposit such instruments or cash in such trust account by 31
the close of banking hours on the day following receipt thereof, 32
shall be evidence of intent to commit this unlawful practice: 33
PROVIDED, HOWEVER, That a motor vehicle dealer may keep a separate 34
trust account which equals his or her customary total customer 35
deposits for vehicles for future delivery. For purposes of this 36
section, "on deposit" funds received from a purchaser of a 37
manufactured home means those funds that a seller requires a 38
purchaser to advance before ordering the manufactured home, but does 39
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not include any loan proceeds or moneys that might have been paid on 1
an installment contract. 2
(10) For a dealer or manufacturer to fail to comply with the 3
obligations of any written warranty or guarantee given by the dealer 4
or manufacturer requiring the furnishing of goods and services or 5
repairs within a reasonable period of time, or to fail to furnish to 6
a purchaser or lessee, all parts which attach to the manufactured 7
unit including, but not limited to , the undercarriage, and all items 8
specified in the terms of a sales or lease agreement signed by the 9
seller and buyer or lessee. 10
(11) For a vehicle dealer to pay to or receive from any person, 11
firm, partnership, association, or corporation acting, either 12
directly or through a subsidiary, as a buyer's agent for consumers, 13
any compensation, fee, purchase moneys or funds that have been 14
deposited into or withdrawn out of any account controlled or used by 15
any buyer's agent, gratuity, or reward in connection with the 16
purchase, sale, or lease of a new motor vehicle. 17
(12) For a buyer's agent, acting directly or through a 18
subsidiary, to pay to or to receive from any motor vehicle dealer any 19
compensation, fee, gratuity, or reward in connection with the 20
purchase, sale, or lease of a new motor vehicle. In addition, it is 21
unlawful for any buyer's agent to engage in any of the following acts 22
on behalf of or in the name of the consumer: 23
(a) Receiving or paying any purchase moneys or funds into or out 24
of any account controlled or used by any buyer's agent;25
(b) Signing any vehicle purchase orders, sales contracts, leases, 26
odometer statements, or title documents, or having the name of the 27
buyer's agent appear on the vehicle purchase order, sales contract, 28
lease, or title; or 29
(c) Signing any other documentation relating to the purchase, 30
sale, lease, or transfer of any new motor vehicle.31
It is unlawful for a buyer's agent to use a power of attorney 32
obtained from the consumer to accomplish or effect the purchase, 33
sale, lease, or transfer of ownership documents of any new motor 34
vehicle by any means which would otherwise be prohibited under (a) 35
through (c) of this subsection. However, the buyer's agent may use a 36
power of attorney for physical delivery of motor vehicle license 37
plates to the consumer. 38
Further, it is unlawful for a buyer's agent to engage in any 39
false, deceptive, or misleading advertising, disseminated in any 40
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manner whatsoever, including but not limited to making any claim or 1
statement that the buyer's agent offers, obtains, or guarantees the 2
lowest price on any motor vehicle or words to similar effect.3
(13) For a buyer's agent to arrange for or to negotiate the 4
purchase, or both, of a new motor vehicle through an out-of-state 5
dealer without disclosing in writing to the customer that the new 6
vehicle would not be subject to chapter 19.118 RCW. This subsection 7
also applies to leased vehicles. In addition, it is unlawful for any 8
buyer's agent to fail to have a written agreement with the customer 9
that: (a) Sets forth the terms of the parties' agreement; (b) 10
discloses to the customer the total amount of any fees or other 11
compensation being paid by the customer to the buyer's agent for the 12
agent's services; and (c) further discloses whether the fee or any 13
portion of the fee is refundable. 14
(14) Being a manufacturer, other than a motorcycle manufacturer 15
governed by chapter 46.93 RCW, to: 16
(a) Coerce or attempt to coerce any vehicle dealer to order or 17
accept delivery of any vehicle or vehicles, parts or accessories, or 18
any other commodities which have not been voluntarily ordered by the 19
vehicle dealer: PROVIDED, That recommendation, endorsement, 20
exposition, persuasion, urging, or argument are not deemed to 21
constitute coercion; 22
(b) Cancel or fail to renew the franchise or selling agreement of 23
any vehicle dealer doing business in this state without fairly 24
compensating the dealer at a fair going business value for his or her 25
capital investment which shall include , but not be limited to , tools, 26
equipment, and parts inventory possessed by the dealer on the day he 27
or she is notified of such cancellation or termination and which are 28
still within the dealer's possession on the day the cancellation or 29
termination is effective, if: (i) The capital investment has been 30
entered into with reasonable and prudent business judgment for the 31
purpose of fulfilling the franchise; and (ii) the cancellation or 32
nonrenewal was not done in good faith. Good faith is defined as the 33
duty of each party to any franchise to act in a fair and equitable 34
manner towards each other, so as to guarantee one party freedom from 35
coercion, intimidation, or threats of coercion or intimidation from 36
the other party: PROVIDED, That recommendation, endorsement, 37
exposition, persuasion, urging, or argument are not deemed to 38
constitute a lack of good faith; 39
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(c) Encourage, aid, abet, or teach a vehicle dealer to sell or 1
lease vehicles through any false, deceptive, or misleading sales or 2
financing practices including but not limited to those practices 3
declared unlawful in this section; 4
(d) Coerce or attempt to coerce a vehicle dealer to engage in any 5
practice forbidden in this section by either threats of actual 6
cancellation or failure to renew the dealer's franchise agreement;7
(e) Refuse to deliver any vehicle publicly advertised for 8
immediate delivery to any duly licensed vehicle dealer having a 9
franchise or contractual agreement for the retail sale or lease of 10
new and unused vehicles sold or distributed by such manufacturer 11
within ((sixty)) 60 days after such dealer's order has been received 12
in writing unless caused by inability to deliver because of shortage 13
or curtailment of material, labor, transportation, or utility 14
services, or by any labor or production difficulty, or by any cause 15
beyond the reasonable control of the manufacturer;16
(f) To provide under the terms of any warranty that a purchaser 17
or lessee of any new or unused vehicle that has been sold or leased, 18
distributed for sale or lease, or transferred into this state for 19
resale or lease by the vehicle manufacturer may only make any 20
warranty claim on any item included as an integral part of the 21
vehicle against the manufacturer of that item. 22
Nothing in this section may be construed to impair the 23
obligations of a contract or to prevent a manufacturer, distributor, 24
representative, or any other person, whether or not licensed under 25
this chapter, from requiring performance of a written contract 26
entered into with any licensee hereunder, nor does the requirement of 27
such performance constitute a violation of any of the provisions of 28
this section if any such contract or the terms thereof requiring 29
performance, have been freely entered into and executed between the 30
contracting parties. This paragraph and subsection (14)(b) of this 31
section do not apply to new motor vehicle manufacturers governed by 32
chapter 46.96 RCW. 33
(15) Unlawful transfer of an ownership interest in a motor 34
vehicle as defined in RCW 19.116.050. 35
(16) To knowingly and intentionally engage in collusion with a 36
registered owner of a vehicle to repossess and return or resell the 37
vehicle to the registered owner in an attempt to avoid a suspended 38
license impound under chapter 46.55 RCW. However, compliance with 39
chapter 62A.9A RCW in repossessing, selling, leasing, or otherwise 40
p. 27 SB 6354
disposing of the vehicle, including providing redemption rights to 1
the debtor, is not a violation of this section. 2
(17)(a) For a dealer to enter into a new motor vehicle sales 3
contract without disclosing in writing to a buyer of the new motor 4
vehicle, or to a dealer in the case of an unregistered motor vehicle, 5
any known damage and repair to the new motor vehicle if the damage 6
exceeds five percent of the manufacturer's suggested retail price as 7
calculated at the dealer's authorized warranty rate for labor and 8
parts, or $1,000, whichever amount is greater. A manufacturer or new 9
motor vehicle dealer is not required to disclose to a dealer or buyer 10
that glass, tires, bumpers, or cosmetic parts of a new motor vehicle 11
were damaged at any time if the damaged item has been replaced with 12
original or comparable equipment. A replaced part is not part of the 13
cumulative damage required to be disclosed under this subsection.14
(b) A manufacturer is required to provide the same disclosure to 15
a dealer of any known damage or repair as required in (a) of this 16
subsection. 17
(c) If disclosure of any known damage or repair is not required 18
under this section, a buyer may not revoke or rescind a sales 19
contract due to the fact that the new motor vehicle was damaged and 20
repaired before completion of the sale. 21
(d) As used in this section: 22
(i) "Cosmetic parts" means parts that are attached by and can be 23
replaced in total through the use of screws, bolts, or other 24
fasteners without the use of welding or thermal cutting, and includes 25
windshields, bumpers, hoods, or trim panels. 26
(ii) "Manufacturer's suggested retail price" means the retail 27
price of the new motor vehicle suggested by the manufacturer, and 28
includes the retail delivered price suggested by the manufacturer for 29
each accessory or item of optional equipment physically attached to 30
the new motor vehicle at the time of delivery to the new motor 31
vehicle dealer that is not included within the retail price suggested 32
by the manufacturer for the new motor vehicle. 33
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