AN ACT Relating to odometer regulation; amending RCW 46.12.030, 46.12.040, 46.12.050, 46.12.101, 46.12.120, 46.12.125, 46.37.010, 46.70.070, 46.70.170, 46.70.180, 46.70.220, and 46.90.300; adding new sections to chapter 46.12 RCW; adding new sections to chapter 46.37 RCW; adding new sections to chapter 46.70 RCW; repealing RCW 46.37.590; prescribing penalties; and providing an effective date.

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

Sec. 1. Section 46.12.030, chapter 12, Laws of 1961 as last amended by section 8, chapter 25, Laws of 1975 and RCW 46.12.030 are each amended to read as follows:

The application for certificate of ownership shall be upon a blank form to be furnished by the department and shall contain:

(1) A full description of the vehicle, which said description shall contain the proper vehicle identification number((~~, the number of miles indicated on the odometer at the time of delivery of the vehicle, and any distinguishing marks of identification~~)) and an odometer disclosure statement attached as part of the application which shall include the following:

(a) The name of the person making the odometer reading disclosure;

(b) The date of the odometer reading disclosure;

(d) The reading of the odometer of the vehicle and whether the reading is expressed in miles or kilometers;

(e) Whether to the best of the knowledge of the person, the odometer reading disclosure reflects the actual mileage of the vehicle;

(f) Whether to the best of the knowledge of the person, the odometer reading disclosure reflects an amount of mileage in excess of the designed mechanical limit of ninety-nine thousand nine hundred ninety-nine miles or kilometers on the odometer of the vehicle;

(g) Whether to the best of the knowledge of the person, the odometer reading disclosure is not the actual mileage of the vehicle and should not be relied upon;

(h) Whether to the best of the knowledge of the person, the odometer was altered, set backward, or disconnected while in the possession of the person or while in possession of another;

(i) If the odometer was altered for repair or replacement while in the possession of the person and whether the mileage registered on the repaired or replaced odometer was identical to that shown before such service;

(j) If the odometer was repaired or replaced and was incapable of registering the same mileage as before such service, whether the odometer was reset, and the reading on the reset odometer and the reading on the odometer before such service;

(k) If the odometer was altered to reflect miles instead of kilometers, and, if so, the reading, in both kilometers and miles at the time the odometer was altered as well as whether the conversion from kilometers to miles was accurate; and

(l) Any other information the director of licensing by rule requires;

(2) The name and address of the person who is to be the registered owner of the vehicle and, if the vehicle is subject to a security interest, the name and address of the secured party;

(3) Such other information as the department may require: PROVIDED, That the department may in any instance, in addition to the information required on said application, require additional information and a physical examination of the vehicle or of any class of vehicles, or either: PROVIDED FURTHER, That a physical examination of the vehicle is mandatory if it previously was registered in any other state or country. The inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the foreign title and registration certificate. If the vehicle is from a jurisdiction that does not issue titles, the inspection must verify that the vehicle identification number is genuine and agrees with the number shown on the registration certificate. The inspection must also confirm that the license plates on the vehicle are those assigned to the vehicle by the jurisdiction in which the vehicle was previously licensed. The inspection must be made by a member of the Washington state patrol or other person authorized by the department to make such inspections.

Such application shall be subscribed by the registered owner and be sworn to by that person ((before a notary public or other officer authorized by law to take acknowledgments of deeds, or other person authorized by the director to certify to the signature of the applicant upon such application)) in the manner described by RCW 9A.72.085, and such application shall be retained by the department either in the original, computer, or photostatic form.

Sec. 2. Section 46.12.040, chapter 12, Laws of 1961 as last amended by section 1, chapter 138, Laws of 1975 1st ex. sess. and RCW 46.12.040 are each amended to read as follows:

The application accompanied by a draft, money order, or certified bank check for one dollar and twenty-five cents, together with the last preceding certificates or other satisfactory evidence of ownership, shall be forwarded to the director.

The fee shall be in addition to any other fee for the license registration of the vehicle. The certificate of ownership shall not be required to be renewed annually, or at any other time, except as by law provided.

In addition to the application fee and any other fee for the license registration of a vehicle, there shall be collected from the applicant an inspection fee of ten dollars whenever physical examination of the vehicle is required as a part of the vehicle licensing or titling process.

These fees shall be certified to the state treasurer and deposited to the credit of the motor vehicle fund.

In addition to other fees under this section, there shall be a fee of twenty-five cents per title application to cover the costs of administering and enforcing odometer laws and rules in this state. This fee shall be deposited in a dedicated fund within the motor vehicle fund for the purpose of administering and enforcing odometer rules and laws in this state.

Sec. 3. Section 46.12.050, chapter 12, Laws of 1961 as last amended by section 9, chapter 25, Laws of 1975 and RCW 46.12.050 are each amended to read as follows:

The department, if satisfied from the statements upon the application that the applicant is the legal owner of the vehicle or otherwise entitled to have the certificate of ownership thereof in the applicant's name, shall thereupon issue an appropriate certificate of ownership, over the director's signature, authenticated by seal, and a new certificate of license registration if certificate of license registration is required.

Both the certificate of ownership and the certificate of license registration shall contain upon the face thereof, the date of application, the registration number assigned to the registered owner and to the vehicle, the name and address of the registered owner and legal owner, the vehicle identification number, and such other description of the vehicle and facts as the department shall require, and in addition thereto, if the vehicle described in such certificates shall have ever been licensed and operated as an exempt vehicle or a taxicab, or if it is less than four years old and has been rebuilt after having been totaled out by an insurance carrier, such fact shall be clearly shown thereon. All certificates of ownership to motor vehicles issued after the effective date of this 1986 act shall reflect the odometer reading as provided by the odometer disclosure statement at the time of titling.

A blank space shall be provided on the face of the certificate of license registration for the signature of the registered owner.

Upon issuance of the certificate of license registration and certificate of ownership and upon any reissue thereof, the department shall deliver the certificate of license registration to the registered owner and the certificate of ownership to the legal owner, or both to the person who is both the registered owner and legal owner.

Sec. 4. Section 7, chapter 140, Laws of 1967 as last amended by section 1, chapter 39, Laws of 1984 and RCW 46.12.101 are each amended to read as follows:

A transfer of ownership in a motor vehicle is perfected by compliance with the requirements of this section.

(1) If an owner with other than a security interest in the vehicle transfers his interest in a vehicle, other than by the creation of a security interest, he shall, at the time of the delivery of the vehicle, execute an assignment to the transferee and ((~~inscribe in ink the number of miles indicated on the odometer in the respective spaces provided therefor~~)) also execute an odometer disclosure statement on the certificate or as the department otherwise prescribes, and cause the certificate and assignment to be transmitted to the transferee. Within five days the owner shall notify the department of the sale or transfer giving the date thereof, the name and address of the owner and of the transferee, the odometer disclosure statement, and such description of the vehicle as may be required in the appropriate form provided for that purpose by the department. This provision is applicable in all instances, regardless of whether the transferee or owner is a dealer. The above-stated provisions of this section shall also apply to the transfer of vehicles held for lease when transferred to a lessee and then to the lessor at the end of the leasehold, to vehicles held in a fleet when transferred to a purchaser, and to vehicles transferred in the context of an auto auction: PROVIDED, That this subsection shall not apply to vehicles leased for a period of less than six months.

(2) Except as provided in RCW 46.12.120 the transferee shall within fifteen days after delivery to him of the vehicle, execute the application for a new certificate of ownership ((~~in the same space provided therefor on the certificate or~~)) as the department prescribes, and cause the certificates and application to be transmitted to the department.

(3) Upon request of the owner or transferee, a secured party in possession of the certificate of ownership shall, unless the transfer was a breach of its security agreement, either deliver the certificate to the transferee for transmission to the department or, when the secured party receives the owner's assignment from the transferee, it shall transmit the transferee's application for a new certificate, the existing certificate, and the required fee to the department. Compliance with this section does not affect the rights of the secured party under his security agreement.

(4) If a security interest is reserved or created at the time of the transfer, the certificate of ownership shall be retained by or delivered to the person who becomes the secured party, and the parties shall comply with the provisions of RCW 46.12.170.

(5) If the purchaser or transferee fails or neglects to transfer such certificate of ownership and license registration within fifteen days after date of delivery of the vehicle to him, he shall on making application for transfer be assessed a twenty-five-dollar penalty on the sixteenth day and two dollars additional for each day thereafter, but not to exceed one hundred dollars: PROVIDED, That failure or neglect to transfer within forty-five days after date of delivery of the vehicle is a misdemeanor.

(6) Upon receipt of an application for the reissue of or an application for the replacement of a certificate of ownership and transfer of license registration, accompanied by the endorsed certificate of ownership ((~~and~~)) or such other documentary evidence as is deemed necessary, the department shall, if the application is in order and if all provisions relating to the certificate of ownership and license registration have been complied with, issue new certificates of title and license registration as in the case of an original issue and shall transmit the fees together with an itemized detailed report to the state treasurer, to be deposited in the motor vehicle fund.

(7) Once each quarter the department shall report to the department of revenue a list of those vehicles for which a seller's report has been received but no transfer of title has taken place.

Sec. 5. Section 46.12.120, chapter 12, Laws of 1961 as last amended by section 11, chapter 25, Laws of 1975 and RCW 46.12.120 are each amended to read as follows:

If the purchaser or transferee is a dealer he shall, on selling or otherwise disposing of the vehicle, promptly execute the assignment and warranty of title, in such form as the director shall prescribe, including recording on the ((application the odometer reading as recorded by the previous owner on the title at the time the dealer obtained the vehicle or, if the previous owner failed to record the mileage on the title, the dealer shall attach a signed statement attesting to the odometer reading as it appeared on the vehicle at the time the vehicle was obtained by the dealer)) form attached to the application an odometer reading disclosure statement. Such assignment and warranty shall show any secured party holding a security interest created or reserved at the time of resale, to which shall be attached the assigned certificates of ownership and license registration received by the dealer, and mail or deliver them to the department with the transferee's application for the issuance of new certificates of ownership and license registration: PROVIDED, That the title certificate issued for a vehicle possessed by a dealer and subject to a security interest shall be delivered to the secured party who upon request of the dealer's transferee shall, unless the transfer was a breach of his security agreement, either deliver the certificate to the transferee for transmission to the department, or upon receipt from the transferee of the owner's bill of sale or sale document, the transferee's application for a new certificate and the required fee, mail or deliver to the department: AND PROVIDED FURTHER, That failure of a dealer to deliver the title certificate to the secured party does not affect perfection of the security interest.

Sec. 6. Section 4, chapter 99, Laws of 1972 ex. sess. and RCW 46.12.125 are each amended to read as follows:

In any case in which the transferor to the dealer is from out of state and has not recorded the mileage at the time of transfer, or a car was in inventory prior to May 23, 1972, the dealer, when mailing or delivering the assigned certificates of ownership and license registration to the department, shall attach a certificate indicating to the best of his knowledge or belief the mileage on the vehicle at the time it was placed into inventory. If the dealer has possession of any prior odometer information, including any prior odometer reading disclosures made pursuant to 49 C.F.R. Sec. 580, the dealer shall deliver that information to the department.

NEW SECTION. Sec. 7. A new section is added to chapter 46.12 RCW to read as follows:

The director of licensing shall adopt rules that:

(1) Establish any requirements the department determines will help protect consumers from fraudulent odometer readings;

(2) Require information on odometer reading disclosure forms that discloses penalties relating to odometer readings and odometer alteration; and

(3) Conform odometer reading disclosures to federal law in a manner that will allow the state's odometer reading disclosure requirements to be used for purposes of federal odometer reading disclosure requirements established by the motor vehicles information and cost savings act, 15 U.S.C. Sec. 1988, or rules adopted thereunder.

NEW SECTION. Sec. 8. A new section is added to chapter 46.12 RCW to read as follows:

The following vehicles are not subject to odometer reading disclosure at the time of ownership transfer:

(1) Any vehicle that is not a motor vehicle;

(2) Any vehicle that is not equipped with an odometer at time of manufacture; and

(3) Any other vehicle the department determines by rule should not be subject to odometer reading disclosures because the disclosures are not necessary to protect consumers.

NEW SECTION. Sec. 9. A new section is added to chapter 46.12 RCW to read as follows:

A violation of RCW 46.12.030, 46.12.101, or 46.12.125, constitutes an unfair and deceptive trade practice under chapter 19.86 RCW.

Sec. 10. Section 46.37.010, chapter 12, Laws of 1961 as last amended by section 69, chapter 136, Laws of 1979 ex. sess. and RCW 46.37.010 are each amended to read as follows:

(1) Except as provided in sections 12 through 16 of this 1986 act, it is a traffic infraction for any person to drive or move or for the owner to cause or knowingly permit to be driven or moved on any highway any vehicle or combination of vehicles which is in such unsafe condition as to endanger any person, or which does not contain those parts or is not at all times equipped with such lamps and other equipment in proper condition and adjustment as required in this chapter or in regulations issued by the state commission on equipment, or which is equipped in any manner in violation of this chapter or the commission's regulations, or for any person to do any act forbidden or fail to perform any act required under this chapter or the commission's regulations.

(2) Nothing contained in this chapter or the commission's regulations shall be construed to prohibit the use of additional parts and accessories on any vehicle not inconsistent with the provisions of this chapter or the commission's regulations.

(3) The provisions of the chapter and the commission's regulations with respect to equipment on vehicles shall not apply to implements of husbandry, road machinery, road rollers, or farm tractors except as herein made applicable.

(4) No owner or operator of a farm tractor, self-propelled unit of farm equipment, or implement of husbandry shall be guilty of a crime or subject to penalty for violation of RCW 46.37.160 as now or hereafter amended unless such violation occurs on a public highway.

(5) It is a traffic infraction for any person to sell or offer for sale vehicle equipment which is required to be approved by the commission on equipment as prescribed in RCW 46.37.005 unless it has been approved by the state commission on equipment.

(6) The provisions of this chapter with respect to equipment required on vehicles shall not apply to motorcycles or motor-driven cycles except as herein made applicable.

NEW SECTION. Sec. 11. A new section is added to chapter 46.37 RCW to read as follows:

(1) The owner or subsequent purchaser of a vehicle may bring an action in an appropriate court of the state against any person who violates section 12 or 14 of this act and may recover from the person an amount of one thousand dollars or treble the actual damages caused by the violation, whichever is greater, plus costs and reasonable attorneys' fees. If such action is based upon the purchaser's allegation that the odometer on such vehicle had been tampered with contrary to RCW 46.37.540 and 46.37.550 or replaced contrary to RCW 46.37.560, it must be found that the seller of such vehicle or any of the seller's employees or agents knew or had reason to know that the odometer on such vehicle had been so tampered with or replaced and had failed to disclose such knowledge to the purchaser before the time of sale. Only a single recovery may be permitted under this subsection for any single violation of this section.

(2) The owner or any subsequent purchaser may bring an action in an appropriate court of this state against any person who violates section 13 of this act and may recover from that person in an amount of five hundred dollars or twice the actual damages caused by the violation, whichever is greater, plus costs and reasonable attorney's fees. Only a single recovery is permitted under this subsection for any single violation of the statute.

NEW SECTION. Sec. 12. A new section is added to chapter 46.37 RCW to read as follows:

(1) A person commits an offense of illegal odometer tampering if that person:

(a) Violates RCW 46.37.540, 46.37.550, 46.37.560, or 46.37.570; or

(b) With the intent to defraud, operates a motor vehicle on any street or highway knowing that the odometer of such vehicle is disconnected or nonfunctional.

(2) This section does not apply to a person who is servicing, repairing, or replacing an odometer in compliance with section 13 of this act.

(3) A violation of this section is a class C felony punishable under RCW 9A.20.021.

NEW SECTION. Sec. 13. A new section is added to chapter 46.37 RCW to read as follows:

(1) A person commits the offense of unlawful repair of an odometer if the person services, repairs, or replaces the odometer on any vehicle and, with an intent to defraud the owner or subsequent purchaser of the vehicle, the person does not comply with the following:

(a) Whenever possible, the person shall perform the work on the odometer without changing the mileage reading from that shown on the odometer before the work is performed;

(b) If it is not possible to perform the work without changing the mileage reading the person must:

(i) Adjust the odometer reading to zero;

(ii) Place a notice on the left door frame of the vehicle specifying the mileage reading before the work on the date the work was performed. A notice under this subsection must be in writing and must be in a form established by the department by rule; and

(iii) Make an odometer reading disclosure, as prescribed by the department and submit the odometer reading disclosure to the department within ten days of completing the work.

(2) A violation of this section is a class C felony punishable under RCW 9A.20.021.

NEW SECTION. Sec. 14. A new section is added to chapter 46.37 RCW to read as follows:

(1) A person commits the offense of unlawfully removing an odometer repair notice if the person removes, with intent to defraud the owner or subsequent purchaser of the vehicle, any notice showing service, repair, or replacement of an odometer with some mileage reading and the date of the work it was placed on the vehicle in compliance with section 13 of this act.

(2) A violation of this section is a class C felony punishable under RCW 9A.20.021.

NEW SECTION. Sec. 15. A new section is added to chapter 46.37 RCW to read as follows:

(1) A person commits the offense of failure to submit an odometer reading disclosure if:

(a) The person is required by 49 C.F.R. Sec. 580 to submit an odometer reading disclosure of the type described by RCW 46.12.030 and the person fails, with intent to defraud the owner or subsequent purchaser, to submit the required odometer reading disclosure; or

(b) The person is required by RCW 46.12.101 to submit an odometer disclosure statement and, with intent to defraud the owner or subsequent purchaser, fails to submit the required statement.

(2) A violation of this section is a class C felony punishable under RCW 9A.20.021.

NEW SECTION. Sec. 16. A new section is added to chapter 46.37 RCW to read as follows:

(1) A person commits the offense of submitting a false odometer reading disclosure if the person knowingly makes any false statement or provides any false information of an odometer reading disclosure described under RCW 46.12.030.

(2) A violation of this section is a class C felony punishable under RCW 9A.20.021.

NEW SECTION. Sec. 17. A new section is added to chapter 46.37 RCW to read as follows:

A violation of RCW 46.37.010, section 12 of this act, section 13 of this act, section 14 of this act, section 15 of this act, or section 16 of this act constitutes an unfair and deceptive trade practice under chapter 19.86 RCW.

Sec. 18. Section 46.70.070, chapter 12, Laws of 1961 as last amended by section 1, chapter 152, Laws of 1981 and RCW 46.70.070 are each amended to read as follows:

(1) Before issuing a vehicle dealer's license, the department shall require the applicant to file with the department a surety bond in the amount of:

(a) Fifteen thousand dollars for motor vehicle dealers;

(b) Thirty thousand dollars for mobile home and travel trailer dealers: PROVIDED, That if such dealer does not deal in mobile homes such bond shall be fifteen thousand dollars;

running to the state, and executed by a surety company authorized to do business in the state. Such bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his business in conformity with the provisions of this chapter. Any retail purchaser who shall have suffered any loss or damage by reason of breach of warranty or by any act by a dealer which constitutes a violation of this chapter, as well as the attorney general and the prosecuting attorney, shall have the right to institute an action for recovery against such dealer and the surety upon such bond. The attorney general and the prosecuting attorney shall apply any recoveries made upon the bond to restitution for retail purchasers who have suffered any loss or damage by reason of breach of warranty or by any act by a dealer which constitutes a violation of this chapter. Successive recoveries against said bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond. Upon exhaustion of the penalty of said bond or cancellation of the bond by the surety the vehicle dealer license shall automatically be deemed canceled.

(2) The bond for any vehicle dealer licensed or to be licensed under more than one classification shall be the highest bond required for any such classification.

Sec. 19. Section 5, chapter 68, Laws of 1965 and RCW 46.70.170 are each amended to read as follows:

It shall be a misdemeanor for any person to violate any of the provisions of this chapter, excluding RCW 46.37.540, 46.37.550, 46.37.560, and sections 12 through 16 of this 1986 act, and the rules and regulations promulgated as provided under this chapter.

Sec. 20. Section 16, chapter 74, Laws of 1967 ex. sess. as last amended by section 13, chapter 472, Laws of 1985 and RCW 46.70.180 are each amended to read as follows:

Each of the following acts or practices is hereby declared unlawful:

(1) To cause or permit to be advertised, printed, displayed, published, distributed, broadcasted, televised, or disseminated in any manner whatsoever, any statement or representation with regard to the sale or financing of a vehicle which is false, deceptive, or misleading, including but not limited to the following:

(a) That no down payment is required in connection with the sale of a vehicle when a down payment is in fact required, or that a vehicle may be purchased for a smaller down payment than is actually required;

(b) That a certain percentage of the sale price of a vehicle may be financed when such financing is not offered in a single document evidencing the entire security transaction;

(c) That a certain percentage is the amount of the service charge to be charged for financing, without stating whether this percentage charge is a monthly amount or an amount to be charged per year;

(d) That a new vehicle will be sold for a certain amount above or below cost without computing cost as the exact amount of the factory invoice on the specific vehicle to be sold;

(e) That a vehicle will be sold upon a monthly payment of a certain amount, without including in the statement the number of payments of that same amount which are required to liquidate the unpaid purchase price.

(2) To incorporate within the terms of any purchase and sale agreement any statement or representation with regard to the sale or financing of a vehicle which is false, deceptive, or misleading, including but not limited to terms that include as an added cost to the selling price of a vehicle an amount for licensing or transfer of title of that vehicle which is not actually due to the state, unless such amount has in fact been paid by the dealer prior to such sale.

(3) To set up, promote, or aid in the promotion of a plan by which vehicles are to be sold to a person for a consideration and upon further consideration that the purchaser agrees to secure one or more persons to participate in the plan by respectively making a similar purchase and in turn agreeing to secure one or more persons likewise to join in said plan, each purchaser being given the right to secure money, credits, goods, or something of value, depending upon the number of persons joining the plan.

(4) To commit, allow, or ratify any act of "bushing" which is defined as follows: Taking from a prospective buyer of a vehicle a written order or offer to purchase, or a contract document signed by the buyer, which:

(a) Is subject to the dealer's, or his authorized representative's future acceptance, and the dealer fails or refuses within forty-eight hours, exclusive of Saturday, Sunday, or legal holiday, and prior to any further negotiations with said buyer, to deliver to the buyer either the dealer's signed acceptance or all copies of the order, offer, or contract document together with any initial payment or security made or given by the buyer, including but not limited to money, check, promissory note, vehicle keys, a trade-in, or certificate of title to a trade-in; or

(b) Permits the dealer to renegotiate a dollar amount specified as trade-in allowance on a vehicle delivered or to be delivered by the buyer as part of the purchase price, for any reason except substantial physical damage or latent mechanical defect occurring before the dealer took possession of the vehicle and which could not have been reasonably discoverable at the time of the taking of the order, offer, or contract; or

(c) Fails to comply with the obligation of any written warranty or guarantee given by the dealer requiring the furnishing of services or repairs within a reasonable time.

(5) To commit any offense relating to odometers, as such offenses are defined in RCW 46.37.540, 46.37.550, 46.37.560, ((~~and~~)) 46.37.570, and sections 12 through 16 of this 1986 act.

(6) For any vehicle dealer or vehicle salesman to refuse to furnish, upon request of a prospective purchaser, the name and address of the previous registered owner of any used vehicle offered for sale.

(7) To commit any other offense under RCW 46.37.423, 46.37.424, or 46.37.425.

(8) To commit any offense relating to a dealer's temporary license permit, including but not limited to failure to properly complete each such permit, or the issuance of more than one such permit on any one vehicle.

(9) For a dealer, salesman, or mobile home manufacturer, having taken an instrument or cash "on deposit" from a purchaser prior to the delivery of the bargained-for vehicle, to commingle said "on deposit" funds with assets of the dealer, salesman, or mobile home manufacturer instead of holding said "on deposit" funds as trustee in a separate trust account until the purchaser has taken delivery of the bargained-for vehicle. Failure, immediately upon receipt, to endorse "on deposit" instruments to such a trust account, or to set aside "on deposit" cash for deposit in such trust account, and failure to deposit such instruments or cash in such trust account by the close of banking hours on the day following receipt thereof, shall be evidence of intent to commit this unlawful practice: PROVIDED, HOWEVER, That a motor vehicle dealer may keep a separate trust account which equals his customary total customer deposits for vehicles for future delivery.

(10) For a dealer or manufacturer to fail to comply with the obligations of any written warranty or guarantee given by the dealer or manufacturer requiring the furnishing of goods and services or repairs within a reasonable period of time, or to fail to furnish to a purchaser, all parts which attach to the manufactured unit including but not limited to the undercarriage, and all items specified in the terms of a sales agreement signed by the seller and buyer.

(11) Being a manufacturer, other than a motorcycle manufacturer governed by chapter 46.94 RCW, to:

(a) Coerce or attempt to coerce any vehicle dealer to order or accept delivery of any vehicle or vehicles, parts or accessories, or any other commodities which have not been voluntarily ordered by the vehicle dealer: PROVIDED, That recommendation, endorsement, exposition, persuasion, urging, or argument are not deemed to constitute coercion;

(b) Cancel or fail to renew the franchise or selling agreement of any vehicle dealer doing business in this state without fairly compensating the dealer at a fair going business value for his capital investment which shall include but not be limited to tools, equipment, and parts inventory possessed by the dealer on the day he is notified of such cancellation or termination and which are still within the dealer's possession on the day the cancellation or termination is effective, if: (i) The capital investment has been entered into with reasonable and prudent business judgment for the purpose of fulfilling the franchise; and (ii) said cancellation or nonrenewal was not done in good faith. Good faith is defined as the duty of each party to any franchise to act in a fair and equitable manner towards each other, so as to guarantee one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party: PROVIDED, That recommendation, endorsement, exposition, persuasion, urging, or argument are not deemed to constitute a lack of good faith.

(c) Encourage, aid, abet, or teach a vehicle dealer to sell vehicles through any false, deceptive, or misleading sales or financing practices including but not limited to those practices declared unlawful in this section;

(d) Coerce or attempt to coerce a vehicle dealer to engage in any practice forbidden in this section by either threats of actual cancellation or failure to renew the dealer's franchise agreement;

(e) Refuse to deliver any vehicle publicly advertised for immediate delivery to any duly licensed vehicle dealer having a franchise or contractual agreement for the retail sale of new and unused vehicles sold or distributed by such manufacturer within sixty days after such dealer's order has been received in writing unless caused by inability to deliver because of shortage or curtailment of material, labor, transportation, or utility services, or by any labor or production difficulty, or by any cause beyond the reasonable control of the manufacturer;

(f) To provide under the terms of any warranty that a purchaser of any new or unused vehicle that has been sold, distributed for sale, or transferred into this state for resale by the vehicle manufacturer may only make any warranty claim on any item included as an integral part of the vehicle against the manufacturer of that item.

Nothing in this section may be construed to impair the obligations of a contract or to prevent a manufacturer, distributor, representative, or any other person, whether or not licensed under this chapter, from requiring performance of a written contract entered into with any licensee hereunder, nor does the requirement of such performance constitute a violation of any of the provisions of this section if any such contract or the terms thereof requiring performance, have been freely entered into and executed between the contracting parties.

Sec. 21. Section 19, chapter 74, Laws of 1967 ex. sess. and RCW 46.70.220 are each amended to read as follows:

The director may refer such evidence as may be available concerning violations of this chapter or of any rule or order hereunder to the attorney general or the proper prosecuting attorney, who may in his discretion, with or without such a reference, in addition to any other action they might commence, bring ((an)) a civil or criminal action in the name of the state against any person ((~~to restrain and prevent the doing of any act or practice herein prohibited or declared unlawful~~)): PROVIDED, That this chapter shall be considered in conjunction with chapter 9.04 RCW, 19.86 RCW and 63.14 RCW and the powers and duties of the attorney general and the prosecuting attorney as they may appear in the aforementioned chapters, shall apply against all persons subject to this chapter: PROVIDED FURTHER, That any action to enforce a claim for civil damages under chapter 19.86 RCW shall be forever barred unless commenced within six years after the cause of action accrues.

NEW SECTION. Sec. 22. A new section is added to chapter 46.70 RCW to read as follows:

The director shall by order deny, suspend, or revoke the license of any vehicle dealer, vehicle manufacturer, or vehicle salesman if the director finds that the applicant or licensee has been convicted of a violation of RCW 46.37.540, 46.37.550, 46.37.560, or sections 12 through 16 of this act and the director has received actual notice of such conviction.

NEW SECTION. Sec. 23. A new section is added to chapter 46.70 RCW to read as follows:

A violation of RCW 46.70.180 constitutes an unfair and deceptive trade practice under chapter 19.86 RCW.

NEW SECTION. Sec. 24. A new section is added to chapter 46.70 RCW to read as follows:

(1) A division of the department may be created to investigate complaints regarding odometer reading disclosures, odometer alterations, or any other violations of odometer disclosure laws. The odometer investigation division's program may include any procedure the department determines appropriate including, but not limited to, the comparison of odometer reading disclosures for individual vehicles with statistical information regarding average mileage for vehicles within a certain period of time.

(2) If the director determines under the odometer investigation division's program that it is likely a vehicle or vehicles have incorrect odometer reading disclosures or have odometers that have been illegally altered, the department shall:

(a) Report the findings of the department to the owners or purchasers of the vehicles; and

(b) Report the findings of the department to the prosecuting attorney and the attorney general's office.

Sec. 25. Section 1, chapter 19, Laws of 1985 and RCW 46.90.300 are each amended to read as follows:

The following sections of the Revised Code of Washington as now or hereafter amended are hereby adopted by reference as a part of this chapter in all respects as though such sections were set forth herein in full: RCW 46.12.070, 46.12.080, 46.12.101, 46.12.102, 46.12.260, 46.12.300, 46.12.310, 46.12.320, 46.12.330, 46.12.340, 46.12.350, 46.12.380, 46.16.010, 46.16.025, 46.16.030, 46.16.135, 46.16.140, 46.16.145, 46.16.170, 46.16.180, 46.16.240, 46.16.260, 46.16.290, 46.16.381, 46.16.390, 46.16.500, 46.16.505, 46.20.011, 46.20.021, 46.20.022, 46.20.025, 46.20.027, 46.20.031, 46.20.041, 46.20.045, 46.20.190, 46.20.220, 46.20.308, 46.20.336, 46.20.342, 46.20.343, 46.20.344, 46.20.391, 46.20.393, 46.20.394, 46.20.410, 46.20.416, 46.20.420, 46.20.430, 46.20.435, 46.20.440, 46.20.500, 46.20.510, 46.20.550, 46.20.599, 46.20.600, 46.29.605, 46.32.060, 46.32.070, 46.37.010, 46.37.020, 46.37.030, 46.37.040, 46.37.050, 46.37.060, 46.37.070, 46.37.080, 46.37.090, 46.37.100, 46.37.110, 46.37.120, 46.37.130, 46.37.140, 46.37.150, 46.37.160, 46.37.170, 46.37.180, 46.37.184, 46.37.185, 46.37.186, 46.37.187, 46.37.188, 46.37.190, 46.37.196, 46.37.200, 46.37.210, 46.37.215, 46.37.220, 46.37.230, 46.37.240, 46.37.260, 46.37.270, 46.37.280, 46.37.290, 46.37.300, 46.37.310, 46.37.340, 46.37.351, 46.37.360, 46.37.365, 46.37.369, 46.37.375, 46.37.380, 46.37.390, 46.37.400, 46.37.410, 46.37.420, 46.37.425, 46.37.430, 46.37.440, 46.37.450, 46.37.460, 46.37.465, 46.37.467, 46.37.480, 46.37.490, 46.37.500, 46.37.510, 46.37.513, 46.37.517, 46.37.520, 46.37.522, 46.37.523, 46.37.524, 46.37.525, 46.37.527, 46.37.528, 46.37.529, 46.37.530, 46.37.535, 46.37.537, 46.37.539, 46.37.540, 46.37.550, 46.37.560, 46.37.570, ((~~46.37.590~~)) section 11 of this 1986 act, 46.37.600, 46.37.610, 46.44.010, 46.44.020, 46.44.030, 46.44.034, 46.44.036, 46.44.037, 46.44.041, 46.44.042, 46.44.047, 46.44.050, 46.44.060, 46.44.070, 46.44.090, 46.44.091, 46.44.092, 46.44.093, 46.44.095, 46.44.096, 46.44.100, 46.44.120, 46.44.130, 46.44.140, 46.44.170, 46.44.173, 46.44.175, 46.44.180, 46.48.170, 46.52.010, 46.52.020, 46.52.030, 46.52.040, 46.52.070, 46.52.080, 46.52.088, 46.52.090, 46.52.100, 46.52.104, 46.52.106, 46.52.108, 46.52.111, 46.52.112, 46.52.113, 46.52.114, 46.52.116, 46.52.117, 46.52.118, 46.52.119, 46.52.1192, 46.52.1194, 46.52.1195, 46.52.1196, 46.52.1198, 46.52.145, 46.52.150, 46.52.160, 46.52.170, 46.52.180, 46.52.190, 46.52.200, 46.52.210, 46.65.090, 46.79.120, and 46.80.010.

NEW SECTION. Sec. 26. Section 7, chapter 112, Laws of 1969, section 1, chapter 24, Laws of 1975 and RCW 46.37.590 are each repealed.

NEW SECTION. Sec. 27. This act shall take effect January 1, 1988.