S-3828               _______________________________________________

                                                   SENATE BILL NO. 4608

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senator Owen

Read first time 1/17/86 and referred to Committee on Transportation.

AN ACT Relating to motor vehicle dealers, salesmen, and manufacturers licenses; amending RCW 46.70.051; and adding new sections to chapter 46.70 RCW.

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

        Sec. 1.  Section 7, chapter 74, Laws of 1967 ex. sess. as last amended by section 6, chapter 132, Laws of 1973 1st ex. sess. and RCW 46.70.051 are each amended to read as follows:

          After the application has been filed, the fee paid, and security has been provided under section 2 of this 1986 act, or the bond posted, ((if required)) the department shall, if no denial order is in effect and no proceeding is pending under RCW 46.70.180 or 46.70.200, issue the appropriate license, which license, in the case of a vehicle dealer, shall designate the classification of the dealer((:  PROVIDED, That)).  Nothing ((shall)) prohibits a vehicle dealer from obtaining licenses for more than one classification, and((:  PROVIDED FURTHER, That)) nothing ((shall)) prevents any vehicle dealer from dealing in other classes of vehicles on an isolated basis.

NEW SECTION. Sec. 2.     In lieu of the bond required under RCW 46.70.070 or 46.70.075, the department may accept one or a combination of the following, made payable to the director of licensing and having a total value equal to the amount of the bond that would otherwise be required:

          (1) A deposit of cash or securities;

          (2) Assignment of an account with a financial institution;

          (3) A lien against real property; or

          (4) Other security acceptable to the department.

NEW SECTION. Sec. 3.     The director of licensing shall order payment from the bond, or security received under section 2 of this act, upon receipt of an order from a court having jurisdiction in the state.  The amount paid by the department from security received under section 2 of this act shall not exceed the amounts specified in RCW 46.70.070 or 46.70.075.

          If the security is diminished as a result of payment of a judgment, the department may, at the request of the licensee, use all or any portion of the proceeds of the security to restore the principal to the amounts specified in RCW 46.70.070 or 46.70.075.

          Unless the proceeds derived from the security have been used to restore the principal following payment of a judgment, the proceeds shall be returned to the licensee upon termination or expiration of the license.

NEW SECTION. Sec. 4.     The department shall return or release its interest in the security:

          (1) One year after expiration of the license, unless an unsatisfied court judgment or claim, affecting the security, is outstanding; or

          (2) Upon receipt of a surety bond conforming to RCW 46.70.070 or 46.70.075, or other security as provided in section 2 of this act.

NEW SECTION. Sec. 5.     The department may adopt rules necessary for the administration of this chapter.

NEW SECTION. Sec. 6.     Sections 2 through 5 of this act are added to chapter 46.70 RCW.