SENATE BILL REPORT

SB 6560

BYSenators Nelson, Madsen and Rasmussen; by request of Department of Licensing

Strengthening odometer disclosure requirements.

Senate Committee on Transportation

Senate Hearing Date(s):January 16, 1990; January 23, 1990

Majority Report:     That Substitute Senate Bill No. 6560 be substituted therefor, and the substitute bill do pass.

     Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; Bender, Benitz, DeJarnatt, Hansen, McMullen, Madsen, Murray, Nelson, Patrick, Sellar.

Senate Staff:Brad Lovaas (786-7307)

                January 30, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, JANUARY 23, 1990

BACKGROUND:

State law requires that the odometer reading be written on the application for certificate of title at the time of sale.  The odometer reading is recorded and maintained on the Department of Licensing microfiche files for reference.  The odometer reading is not displayed upon the title certificate.

In late 1986 Congress enacted a federal odometer act, known as the "Truth in Mileage Act."  It mandates that the odometer reading be displayed upon the title of all vehicles.  Upon the transfer of ownership, the transferee must submit an odometer disclosure from the seller to the state for vehicle registration.  Additionally, the federal act requires the title to be present at the time of sale.

The federal civil penalty for odometer tampering violations is raised from $1,000 to $3,000 per violation, and the criminal penalties raised from a maximum of one year to three years in jail.

SUMMARY:

Every application for title shall contain an odometer reading.  After April 30, 1990 all registration and titles issued by the department will reflect the odometer reading on a secure title.

An odometer disclosure statement must be provided: (1) by the owner when a vehicle is transferred; (2) to fleet vehicle purchasers at the beginning and end of a lease; (3) by a dealer on assignment of title when transferring or selling a vehicle.

A transferee of a vehicle must apply for title within 15 days of vehicle delivery. A dealer must apply on behalf of a new owner, sending assignment of title to the department.  If the previous owner failed to record the mileage on the title a dealer must attach an odometer disclosure statement attesting to the odometer reading as it appeared when the vehicle was obtained.

EFFECT OF PROPOSED SUBSTITUTE:

A secure power of attorney may be used if the title is held by a lienholder at the time of sale of a vehicle.  An increase of 25 cents per title application is provided for, to cover the costs of the new program.  The appropriation of $327,000 from the motor vehicle fund is deleted.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Bob Anderson, DOL; Jim Boldt, Washington Auto Dealers Association