AN ACT Relating to automotive repair shop registration; adding a new chapter to Title 18 RCW; prescribing penalties; making an appropriation; and providing an effective date.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter. (1) "Automotive repair shop" means a business which for compensation engages in automotive repairing and/or diagnosing malfunctions of motor vehicles subject to RCW 46.16.010.

(2) "Automotive repairs" includes but is not limited to:

(a) All repairs to vehicles subject to RCW 46.16.010 that are commonly performed in a repair shop by a motor vehicle mechanic including the installation, exchange, or repair of mechanical parts or units for any vehicle or the performance of any electrical or mechanical adjustment to any vehicle; and

(b) All work in repair shops that perform one or more specialties within the automotive repair trade including but not limited to body, frame, front-end, brake repair, transmission, tune-up, electrical repair work, and muffler installation. (3) "Person" includes every natural person, firm, copartnership, corporation, association, or organization.

(4) "Established place of business" is a permanent enclosed building or a mobile repair shop within the state of Washington that is accessible and open to the public at reasonable times and in which automotive repairs may be lawfully carried on in accordance with terms of all applicable building codes, zoning, and other land use regulatory laws.

(5) "Subagency" is any place of business of an automotive repair shop that is physically and geographically separated from the principal place of business of the repair shop, or any place of business of an automotive repair shop under which the repair shop does business under a name other than the principal name of the firm, or both.

(6) "Compensation" means that which is given in money or in other things or services of value in lieu of money in exchange for services rendered.

NEW SECTION. Sec. 2. It is a misdemeanor for any automotive repair shop to offer to provide estimates, do work, or perform any work without being registered as required by this chapter.

NEW SECTION. Sec. 3. The following persons are exempt from the requirement of obtaining a registration certificate under this chapter:

(1) An employee of an automotive repair shop if the employee repairs motor vehicles only as an employee of a repair shop properly registered under this chapter;

(2) A person who is employed by and who repairs only the motor vehicles owned or operated by a single commercial, industrial, or governmental establishment, or two or more such establishments related by common ownership or corporate affiliation;

(3) A person who repairs motor vehicles only during a course of study at a school properly registered or exempted from registration under chapter 28B.05 RCW, the educational services registration act;

(4) An individual repairing a motor vehicle without compensation; and

(5) Those defined as motor vehicle dealers under RCW 46.70.011(3)(a) who sell cars or trucks and are properly licensed under chapter 46.70 RCW and maintain a bond and insurance sufficient to cover requirements under this chapter.

NEW SECTION. Sec. 4. An applicant for registration as an automotive repair shop shall submit an application to the department of licensing upon a form to be prescribed by the director of the department of licensing and which shall include the following information, if applicable, pertaining to the applicant:

(1) Employer social security number;

(2) Industrial insurance number;

(3) Employment security department number;

(4) State excise tax registration number; and

(5) The name and address of each partner if the applicant is a firm or partnership, or the name and address of the owner if the applicant is an individual proprietorship, or the name and address of the corporate officers and statutory agent, if any, if the applicant is a corporation. The information contained in this application shall be a matter of public record and open to public inspection.

The application shall be accompanied by the appropriate fee as set forth in this chapter.

NEW SECTION. Sec. 5. (1) Each applicant shall, at the time of applying for or renewing a certificate of registration, file with the department of licensing a surety bond issued by a surety insurer who meets the requirements of chapter 48.28 RCW in a form acceptable to the department of licensing, running to the state of Washington, in the sum of two thousand dollars to pay all amounts that may be adjudged against the automotive repair shop by reason of negligent or improper work or breach of contract in the conduct of the automotive repair business. A change in the name of a business or a change in the type of business entity does not impair a bond for the purposes of this section as long as one of the original applicants for the bond maintains partial ownership in the business covered by the bond.

(2) Any person, firm, or corporation having a claim against the automotive repair shop for any of the items referred to in this section may institute an action for recovery against the automotive repair shop and the surety upon such bond in the county in which the work is done or of any county in which jurisdiction of the automotive repair shop may be had. Action upon the bond shall be commenced by filing a complaint with the clerk of the appropriate court within one year from the date the claimed work was performed.

(3) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed under this chapter for an infraction. The surety upon the bond may, upon notice to the department of licensing and the parties, tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments, if any, previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending at any one time exceed the amount of the bond then unimpaired, claims shall be satisfied from the bond in the following order:

(a) Claims for breach of contract by a party to the repair agreement or estimate;

(b) Any court costs, interest, and attorney's fees plaintiff may be entitled to recover.

(4) If any final judgment impairs the liability of the surety upon the bond so furnished so that there is not in effect a bond undertaking in the full amount prescribed in this section, the department of licensing shall suspend the registration of the automotive repair shop until the bond liability in the required amount unimpaired by unsatisfied judgment claims has been furnished. If the bond becomes fully impaired, a new bond must be furnished.

NEW SECTION. Sec. 6. At the time of registration the applicant shall furnish to the director of licensing satisfactory evidence that the applicant has procured and has in effect reasonable public liability and property damage and garage keepers' legal liability insurance covering the applicant's repair operations.

If this insurance ceases to be effective, the issuer shall immediately notify the department of licensing and the registration of the automotive repair shop shall be suspended until the insurance is reinstated. The department of licensing shall immediately notify the automotive repair shop that state registration has been suspended and will remain suspended until such time as the insurance is reinstated.

NEW SECTION. Sec. 7. (1) A certificate of registration is valid for one year and shall be renewed on or before the expiration date. The department of licensing shall issue to the applicant a certificate of registration upon compliance with the registration requirements of this chapter.

(2) If the department of licensing approves an application, it shall issue a certificate of registration to the applicant. The department of licensing shall develop a scheme for staggering initial registrations and renewals.

(3) An automotive repair shop may supply a short-term bond or insurance policy to bring its registration period to the full one year.

(4) If an automotive repair shop's surety bond has an unsatisfied judgment against it or is canceled, or if the automotive repair shop's insurance policy is canceled, the issuer of the surety bond or insurance shall immediately notify the department of licensing and the automotive repair shop's registration shall be automatically suspended on the effective date of the impairment or cancellation. The department of licensing shall immediately notify the automotive repair shop that state registration has been suspended and will remain suspended until such time as the surety bond or insurance is reinstated.

NEW SECTION. Sec. 8. (1) The fees for an automotive repair shop registration certificate are as follows:

(a) The annual fee is fifty dollars until July 1, 1989; thereafter it is twenty-five dollars;

(b) The processing fee with an original application is twenty-five dollars per applicant;

(d) The penalty fee for late renewals is ten dollars; and

(e) The reissuance fee is five dollars.

(2) All moneys received under this section shall be deposited in the motor vehicle fund and shall be used exclusively for the administration of this chapter.

NEW SECTION. Sec. 9. (1) The automotive repair shop certificate of registration issued by the department of licensing shall be conspicuously posted at the location covered by the certificate of registration.

(2) If the information contained on the certificate becomes outdated through change in name of the registrant or change of address of the registrant, or any other reason, the registrant shall notify the department of licensing within thirty days, and the certificate shall be returned to the department of licensing with an application updating the files of the department of licensing. The department of licensing shall issue a new certificate for the unexpired term upon payment of the reissuance fee.

(3) If the certificate is lost, destroyed, or mutilated, the person to whom it was issued shall obtain a duplicate upon furnishing satisfactory proof of such fact, surrendering the certificate if available, and upon payment of a reissuance fee. Any person who finds the original certificate after having been issued a duplicate shall immediately surrender the original certificate to the department of licensing.

(4) The registration number on the certificate of registration shall be clearly shown on all public correspondence, including, but not limited to estimates and bills.

NEW SECTION. Sec. 10. No person engaged in the business or acting in the capacity of automotive repair shop may bring or maintain any action in any court of this state to collect compensation for performing any work or for breach of any repair agreement or estimate for which registration is required under this chapter without alleging and proving that that person contracted as a registered automotive repair shop and held a current and valid certificate of registration at the time of contracting or entering into a contract for the performance of the work.

A copy of the current automotive repair shop registration certificate, certified by the director of the department of licensing to be a true and correct copy of the original, is prima facie evidence of registration required by this chapter.

NEW SECTION. Sec. 11. Nothing in this chapter prohibits an individual or organization from bringing a civil action against an automotive repair shop.

NEW SECTION. Sec. 12. (1) The director may initiate and conduct investigations as may be reasonably necessary to establish the existence of any alleged violations of or noncompliance with the provisions of this chapter or any rules adopted under it. For the purposes of any investigation or proceeding under this chapter, the director or any officer designated by the director may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any documents or records that the director deems relevant to the investigation.

(2) If any individual fails to obey a subpoena or obeys a subpoena but refuses to give evidence, any court of competent jurisdiction, upon application by the director, may issue to that person an order requiring an appearance before the court to show cause why the person should not be compelled to obey the subpoena and give evidence material to the matter under investigation. Failure to obey an order of the court is punishable as contempt.

NEW SECTION. Sec. 13. The department of licensing shall submit a program report to the legislative transportation committee every four years after the effective date of this act.

NEW SECTION. Sec. 14. Sections 1 through 13 of this act shall constitute a new chapter in Title 18 RCW.

NEW SECTION. Sec. 15. There is appropriated from the motor vehicle fund to the department of licensing for the biennium ending June 30, 1987, the sum of .......... dollars, or so much thereof as may be necessary, to carry out the purposes of this act.

NEW SECTION. Sec. 16. This act shall take effect January 1, 1986, but before that date the director of the department of licensing is authorized to perform duties and conduct activities necessary to implement this act by January 1, 1986.

NEW SECTION. Sec. 17. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.