H-1206              _______________________________________________

                                                    HOUSE BILL NO. 754

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Bristow, Zellinsky, Smitherman, Chandler, Kremen, Tilly, Day, Van Luven, Doty, Prince, Braddock, Betrozoff and K. Wilson

Read first time 2/8/85 and referred to Committee on Commerce & Labor.

AN ACT Relating to motor vehicles; amending RCW 46.70.005; adding a new section to chapter 46.70 RCW; and creating a new section.

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

NEW SECTION. Sec. 1.     The legislature finds and declares that vehicle manufacturers and distributors who own vehicle dealerships, and sell vehicles directly to the public, substantially lessen competition among privately owned, franchise dealers.

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

          A licensed vehicle manufacturer or distributor may not apply for or hold a license to engage in business as a vehicle dealer or salesman.  A vehicle manufacturer or distributor who holds a vehicle dealer's or salesman's license on the effective date of this act shall be given a reasonable time, as determined by the department, to sell or otherwise dispose of the license.

        Sec. 3.  Section 1, chapter 74, Laws of 1967 ex. sess. as amended by section 1, chapter 132, Laws of 1973 1st ex. sess. and RCW 46.70.005 are each amended to read as follows:

          The legislature finds and declares that the distribution and sale of  vehicles in the state of Washington vitally affects the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and the public welfare, and in the exercise of its police power, it is necessary to regulate  and license vehicle manufacturers, distributors or wholesalers and factory or distributor representatives, and to regulate and license dealers, and salesmen of  vehicles doing business in Washington, in order to prevent frauds, impositions and other abuses upon its citizens, to promote competition between dealers, and to protect and preserve the investments and properties of the citizens of this state.