AN ACT Relating to odometer tampering; amending RCW 46.12.030, 46.12.050, 46.12.101, 46.12.120, 46.37.010, 46.70.180, 46.70.120, and 46.90.300; reenacting and amending RCW 46.63.020; adding new sections to chapter 46.04 RCW; adding new sections to chapter 46.12 RCW; adding new sections to chapter 46.37 RCW; repealing RCW 46.12.125 and 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;

(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~~)) the 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~~)) The 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)) applicant in the manner described by RCW 9A.72.085, and the application shall be retained by the department either in the original, computer, or photostatic form.

Sec. 2. 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 and secure 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 April 1, 1989, shall reflect the odometer reading as provided by the latest odometer disclosure statement submitted with the latest title application involving a change of registered owner.

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. 3. Section 7, chapter 140, Laws of 1967 as last amended by section 1, chapter 127, Laws of 1987 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 or her interest in a vehicle, other than by the creation of a security interest, the owner 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~~)) provide an odometer disclosure statement pursuant to section 5 of this act 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, and such description of the vehicle as may be required in the appropriate form provided for that purpose by the department.

(2) The requirements in subsection (1) of this section to provide an odometer disclosure statement 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 and to vehicles held in a fleet when transferred to a purchaser. However, subsection (1) of this section does not apply to vehicles leased for a period of less than four months.

((~~(2)~~)) (3) Except as provided in RCW 46.12.120 the transferee shall within fifteen days after delivery to the transferee 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)~~)) (4) 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.

((~~(4)~~)) (5) 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)~~)) (6) If the purchaser or transferee fails or neglects to make application to transfer the certificate of ownership and license registration within fifteen days after the date of delivery of the vehicle, he or she 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. The director may by rule establish conditions under which the penalty will not be assessed when an application for transfer is delayed for reasons beyond the control of the purchaser. Conditions for not assessing the penalty may be established for but not limited to delays caused by:

(a) The department requesting additional supporting documents;

(b) Extended hospitalization or illness of the purchaser;

(d) Failure, negligence, or nonperformance of the department, auditor, or subagent.

Failure or neglect to make application to transfer the certificate of ownership and license registration within forty-five days after the date of delivery of the vehicle is a misdemeanor.

((~~(6)~~)) (7) Upon receipt of an application for reissue or replacement of a certificate of ownership and transfer of license registration, accompanied by the endorsed certificate of ownership or 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)~~)) (8) 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. 4. 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:

(1) If the purchaser or transferee is a dealer he or she 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, or failed to provide an odometer disclosure statement to the dealer, the dealer shall ((~~attach a signed statement attesting~~)) attest to the odometer reading as it appeared on the vehicle at the time the vehicle was obtained by the dealer.

((~~Such~~)) (2) The 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.

NEW SECTION. Sec. 5. A new section is added to chapter 46.12 RCW to read as follows:

(1) The department shall adopt an odometer disclosure statement. The statement shall include, at a minimum, the following:

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

(b) The date of the disclosure;

(d) The transferor's name and current address;

(e) The transferee's name and current address;

(f) The odometer reading of the vehicle expressed in miles or kilometers, and a statement to the best of the knowledge of the person:

(i) Whether the odometer reading reflects the actual mileage of the vehicle;

(ii) Whether the odometer reading reflects a reading in excess of ninety-nine thousand nine hundred ninety-nine miles or kilometers;

(iii) Whether the odometer was repaired, replaced, reset, altered, or disconnected while in the possession of the person or while in the possession of another.

(2) The transferor shall sign the disclosure statement, and the transferee shall sign to acknowledge receipt.

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

(a) A vehicle that was not equipped with an odometer at the time of manufacture;

(b) A vehicle over twenty-five years old;

NEW SECTION. Sec. 6. A new section is added to chapter 46.12 RCW to read as follows:

When a dealer sells a used or previously licensed vehicle to a second dealer, the first dealer shall fill out a dealer-to-dealer assignment of interest as prescribed by the department, including an odometer disclosure statement, and deliver it to the second dealer. The second and subsequent dealers shall each complete an assignment of interest as prescribed by the department, including an odometer disclosure statement, and deliver it to the next dealer. The final dealer shall complete the application for transfer pursuant to RCW 46.12.050 and 46.12.120. Each dealer's assignment of interest shall also include the odometer disclosure statement. In the case of a new vehicle, the dealer shall use the manufacturer's statement of origin or an odometer disclosure statement to disclose mileage.

NEW SECTION. Sec. 7. 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 section 6 of this act constitutes an unfair and deceptive trade practice under chapter 19.86 RCW.

Sec. 8. Section 46.37.010, chapter 12, Laws of 1961 as last amended by section 707, chapter 330, Laws of 1987 and RCW 46.37.010 are each amended to read as follows:

(1) Except as provided in sections 10 through 14 of this 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 chief of the Washington state patrol, or which is equipped in any manner in violation of this chapter or the state patrol's regulations, or for any person to do any act forbidden or fail to perform any act required under this chapter or the state patrol's regulations.

(2) Nothing contained in this chapter or the state patrol'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 state patrol's regulations.

(3) The provisions of the chapter and the state patrol'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 state patrol as prescribed in RCW 46.37.005 unless it has been approved by the state patrol.

(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. 9. 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 10 or 12 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 the action is based upon the purchaser's allegation that the odometer on the vehicle had been tampered with contrary to RCW 46.37.540 or 46.37.550 or replaced contrary to RCW 46.37.560, it must be found that the seller of the vehicle or any of the seller's authorized employees or agents knew or had reason to know that the odometer on the vehicle had been so tampered with or replaced and had failed to disclose that 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 11 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 attorneys' fees. Only a single recovery is permitted under this subsection for any single violation of the statute.

NEW SECTION. Sec. 10. 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 the 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 11 of this act.

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

NEW SECTION. Sec. 11. 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 service on the odometer without changing the mileage reading from that shown on the odometer before the service is performed;

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

(i) Adjust the odometer reading to zero; and

(ii) Place a sticker on the left door frame of the vehicle specifying the mileage reading before the service, the date of service, and indicating whether the reading was in miles or kilometers.

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

NEW SECTION. Sec. 12. 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 11 of this act.

(2) A violation of this section is a class C felony punishable according to 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 failure to submit an odometer reading disclosure if:

(a) The person is required to submit an odometer reading disclosure statement and the person fails, with intent to defraud the owner or subsequent purchaser, to submit the required odometer reading disclosure statement; 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 according to 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 submitting a false odometer reading disclosure if the person knowingly makes any false statement or knowingly provides any false information of an odometer reading disclosure described under RCW 46.12.030.

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

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

A violation of RCW 46.37.010, section 10, 11, 12, 13, or 14 of this act constitutes an unfair and deceptive trade practice under chapter 19.86 RCW.

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

(1) The department may conduct any inspection or investigation necessary to enforce RCW 46.37.540 through 46.37.570 and sections 10 through 14 of this act. For purposes of carrying out this section, duly authorized officers or employees of the department, upon stating their purpose and presenting appropriate credentials and written notice, which notice may consist of an administrative inspection warrant or subpoena duces tecum, to the owner, operator, or agent in charge, may at reasonable times and in a reasonable manner:

(a) Enter any factory, warehouse, establishment, or other commercial premises in or on which motor vehicles or items of motor vehicle equipment are manufactured, held for shipment or sale, maintained, or repaired;

(b) Impound, for a period not to exceed seventy-two hours, for purposes of inspection, any motor vehicle or item of motor vehicle equipment that the department reasonably believes to have been the object of RCW 46.37.540 through 46.37.570 or sections 10 through 14 of this act; and

(c) Inspect any factory, warehouse, establishment, premises, vehicle, or equipment referred to in (a) or (b) of this subsection.

(2) Each inspection or impoundment under this section shall be commenced and completed with reasonable promptness. Whenever, under the authority of subsection (1) of this section, the department impounds for the purpose of inspection a motor vehicle or an item of motor vehicle equipment, the department shall pay reasonable compensation to the owner of the vehicle or equipment to the extent that the inspection or impoundment results in the denial of the use of the vehicle or equipment to its owner, or in the reduction of value to the vehicle or equipment.

Sec. 17. Section 3, chapter 186, Laws of 1986 as amended by section 2, chapter 181, Laws of 1987, by section 55, chapter 244, Laws of 1987, by section 6, chapter 247, Laws of 1987 and by section 11, chapter 388, Laws of 1987 and RCW 46.63.020 are each reenacted and amended to read as follows:

Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

(1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

(2) RCW 46.09.130 relating to operation of nonhighway vehicles;

(3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

(4) RCW 46.10.130 relating to the operation of snowmobiles;

(5) Chapter 46.12 RCW relating to certificates of ownership and registration;

(6) RCW 46.16.010 relating to initial registration of motor vehicles;

(7) RCW 46.16.011 relating to permitting unauthorized persons to drive;

(8) RCW 46.16.160 relating to vehicle trip permits;

((~~(8) RCW 46.16.011 relating to permitting unauthorized persons to drive;~~))

(9) RCW 46.16.381(8) relating to unauthorized acquisition of a special decal, license plate, or card for disabled persons' parking;

(10) RCW 46.20.021 relating to driving without a valid driver's license;

(11) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

(12) RCW 46.20.342 relating to driving with a suspended or revoked license;

(13) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

(14) RCW 46.20.416 relating to driving while in a suspended or revoked status;

(15) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

(16) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;

(17) Chapter 46.29 RCW relating to financial responsibility;

(18) Sections 10 through 14 of this act relating to vehicle odometers;

(19) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

((~~(19)~~)) (20) RCW 46.48.175 relating to the transportation of dangerous articles;

((~~(20)~~)) (21) RCW 46.52.010 relating to duty on striking an unattended car or other property;

((~~(21)~~)) (22) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;

((~~(22)~~)) (23) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

((~~(23)~~)) (24) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

((~~(24)~~)) (25) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;

((~~(25)~~)) (26) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

((~~(26)~~)) (27) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

((~~(27)~~)) (28) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

((~~(28)~~)) (29) RCW 46.61.022 relating to failure to stop and give identification to an officer;

((~~(29)~~)) (30) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

((~~(30)~~)) (31) RCW 46.61.500 relating to reckless driving;

((~~(31)~~)) (32) RCW 46.61.502 and 46.61.504 relating to persons under the influence of intoxicating liquor or drugs;

((~~(32)~~)) (33) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

((~~(33)~~)) (34) RCW 46.61.522 relating to vehicular assault;

((~~(34)~~)) (35) RCW 46.61.525 relating to negligent driving;

((~~(35)~~)) (36) RCW 46.61.530 relating to racing of vehicles on highways;

((~~(36)~~)) (37) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

((~~(37)~~)) (38) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

((~~(38)~~)) (39) RCW 46.64.020 relating to nonappearance after a written promise;

((~~(39)~~)) (40) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

((~~(40)~~)) (41) Chapter 46.65 RCW relating to habitual traffic offenders;

((~~(41)~~)) (42) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

((~~(42)~~)) (43) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

((~~(43)~~)) (44) Chapter 46.80 RCW relating to motor vehicle wreckers;

((~~(44)~~)) (45) Chapter 46.82 RCW relating to driver's training schools;

((~~(45)~~)) (46) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;

((~~(46)~~)) (47 RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW.

Sec. 18. Section 16, chapter 74, Laws of 1967 ex. sess. as last amended by section 18, chapter 241, Laws of 1986 and RCW 46.70.180 are each amended to read as follows:

Each of the following acts or practices is 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, or a false odometer statement 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 the providing of the false odometer statement; 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 10 through 14 of this act. A violation of this subsection is a class C felony punishable under chapter 9A.20 RCW.

(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. 19. Section 46.70.120, chapter 12, Laws of 1961 as last amended by section 16, chapter 241, Laws of 1986 and RCW 46.70.120 are each amended to read as follows:

A dealer shall complete and maintain for a period of at least five years a record of the purchase and sale of all vehicles purchased or sold by him or her. The records shall consist of:

(1) The license and title numbers of the state in which the last license was issued;

(2) A description of the vehicle;

(3) The name and address of person from whom purchased;

(4) The name of legal owner, if any;

(5) The name and address of purchaser;

(6) If purchased from a dealer, the name, business address, dealer license number, and resale tax number of the dealer;

(7) The price paid for the vehicle and the method of payment;

(8) The odometer disclosure statement given by the seller to the dealer, and the odometer disclosure statement given by the dealer to the purchaser;

(9) The written agreement to allow a dealer to sell between the dealer and the consignor, or the listing dealer and the seller;

(10) Trust account records of receipts, deposits, and withdrawals;

(11) All sale documents, which shall show the full name of dealer employees involved in the sale;

(12) For any vehicle sold at an auction, the auction company that conducts the auction shall establish and maintain the following information:

(a) The name of the most recent owner of the motor vehicle (other than the auction company) and the name of the buyer of the vehicle;

(b) The vehicle identification number of the vehicle; and

(13) Any additional information the department may require.

Such record shall be maintained separate and apart from all other business records of the dealer and shall at all times be available for inspection by the director or his duly authorized agent.

NEW SECTION. Sec. 20. A new section is added to chapter 46.04 RCW to read as follows:

"Transferor" means any person who transfers his or her ownership in a motor vehicle by sale, gift, or any means other than by creation of a security interest.

NEW SECTION. Sec. 21. A new section is added tochapter 46.04 RCW to read as follows:

"Transferee" means any person to whom the ownership in a motor vehicle is transferred by purchase, gift, or any means other than by creation of a security interest.

NEW SECTION. Sec. 22. A new section is added to chapter 46.04 RCW to read as follows:

"Auction company" means any person who takes possession, whether through consignment or bailment or through any other arrangement, of a motor vehicle owned by another person for purposes of selling the motor vehicle at an auction.

Sec. 23. Section 1, chapter 19, Laws of 1985 as last amended by section 1, chapter 30, Laws of 1987 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, 46.16.028, 46.16.030, 46.16.088, 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, 46.20.394, 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, 46.29.605, 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 9 of this 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, ((~~46.52.170, 46.52.180, 46.52.190, 46.52.200,~~)) 46.65.090, 46.79.120, and 46.80.010.

NEW SECTION. Sec. 24. The following acts or parts of acts are each repealed:

(1) Section 4, chapter 99, Laws of 1972 ex. sess. and RCW 46.12.125; and

(2) Section 7, chapter 112, Laws of 1969, section 1, chapter 24, Laws of 1975 and RCW 46.37.590.

NEW SECTION. Sec. 25. This act shall take effect January 1, 1989. The director of licensing shall immediately take such steps as are necessary to ensure that this act is implemented on its effective date.