FINAL BILL REPORT

SHB 1221

PARTIAL VETO

                                  C 301 L 89

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives McLean, Vekich, Nealey, P. King, Todd and Silver)

Easing licensing requirements for vehicle auctioneers.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Persons selling vehicles, including auctioneers, must obtain a vehicle dealer's license.  A licensed dealer must maintain an established place of business, which is an office in a commercial building, with a display area, and a permanently affixed exterior sign.  A temporary subagency license is required to sell a vehicle at a location other than the principal place of business.  A vehicle dealer must also obtain a license for each classification of vehicle sold.  There are separate bonding requirements for each classification.

SUMMARY:

Auction companies selling vehicles are exempt from the established place of business requirements for vehicle dealers.  The exemption does not apply to auction companies which own vehicle inventory or sell vehicles from an auction yard.

An auction company selling vehicles must have an office within the state, maintain books and files at the office, meet local zoning and land use ordinances, maintain a telecommunications system, and list storage facilities for inventory with the Department of Licensing.  The auction company must display its vehicle dealer license at each auction where vehicles are offered.  The department must be given three days' notice of the address of each auction.

An auction company selling vehicles is exempt from the requirement of obtaining a temporary subagency license.

An auction company may sell all classifications of vehicles under a motor vehicle dealer's license.  A license for each separate classification of vehicle is not required.  The auction company must maintain a $15,000 bond.

VOTES ON FINAL PASSAGE:

      House 95   0

      Senate    44     1 (Senate amended)

      House 97   0 (House concurred)

EFFECTIVE:July 23, 1989

Partial Veto Summary:  The Governor vetoed the section clarifying that the bond amount for an auction company is $15,000.  (See VETO MESSAGE)