H-3314.1  _______________________________________________

 

                          HOUSE BILL 2435

          _______________________________________________

 

State of Washington      53rd Legislature     1994 Regular Session

 

By Representatives Zellinsky and King

 

Read first time 01/14/94.  Referred to Committee on Transportation.

 

Strengthening enforcement and penalties against unlicensed vehicle dealers.


    AN ACT Relating to unlicensed vehicle dealers; amending RCW 46.70.021; adding a new section to chapter 46.70 RCW; and prescribing penalties.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 46.70.021 and 1993 c 307 s 4 are each amended to read as follows:

    It is unlawful for any person, firm, or association to act as a vehicle dealer or vehicle manufacturer, to engage in business as such, serve in the capacity of such, advertise himself, herself, or themselves as such, solicit sales as such, or distribute or transfer vehicles for resale in this state, without first obtaining and holding a current license as provided in this chapter, unless the title of the vehicle is in the name of the seller.  It is unlawful for any person other than a licensed vehicle dealer to display a vehicle for sale unless the registered owner or legal owner is the displayer or holds a notarized power of attorney.  A person or firm engaged in buying and offering for sale, or buying and selling five or more vehicles in a twelve-month period, or in any other way engaged in dealer activity without holding a vehicle dealer license, is guilty of a gross misdemean­or, and upon conviction is subject to a fine of up to five thousand dollars for each violation and up to one year in jail.  A second offense is a class C felony punishable under chapter 9A.20 RCW.  A violation of this section is also a per se violation of chapter 19.86 RCW and is considered a deceptive practice.

    Upon the issuance of a final cease and desist order under RCW 46.70.115, the director may assess a civil monetary penalty of up to one thousand dollars per violation against a person or firm found in violation of this section.  Civil monetary penalties may also be assessed equal to the amount of sales tax and motor vehicle excise tax owed on each vehicle identified in the final order to cease and desist that the person or firm purchased, failed to properly apply for title under chapter 46.12 RCW, and subsequently sold.  Monetary penalties collected under this section shall be deposited in the motor vehicle fund.  If the monetary penalties assessed are not paid to the department within thirty days after service of the final order to cease and desist, the department may not renew the driver's license of the person named in the final order to cease and desist until payment is made.  The department may renew the driver's license of the person named in the final order to cease and desist if the person is abiding by a penalty payment schedule agreed to by the person and the department.

    The department of licensing, the Washington state patrol, the attorney general's office, and the department of revenue shall cooperate in the enforcement of this section.  A distributor, factory branch, or factory representative shall not be required to have a vehicle manufacturer license so long as the vehicle manufac­turer so represented is properly licensed pursuant to this chapter.  Nothing in this chapter prohibits financial institutions from cooperating with vehicle dealers licensed under this chapter in dealer sales or leases.  However, financial institutions shall not broker vehicles and cooperation is limited to organizing, promoting, and financing of such dealer sales or leases.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 46.70 RCW to read as follows:

    (1) In addition to other powers granted by law, the director or the director's designee may enforce RCW 46.70.021 through issuance of criminal citations.  It is the sole duty of law enforcement agencies and officers to make arrests.  The county prosecutor of the county in which the violation occurred shall prosecute all actions under this chapter.

    (2) Any liability or claim that arises out of the exercise or alleged exercise of authority under subsection (1) of this section rests with the department unless the director or the director's designee acts under the direction and control of another agency or unless the liability is otherwise assumed under a written agreement between the department of licensing and another agency.

 

                            --- END ---