AN ACT Relating to exchanges of interest in vehicles; and amending RCW 46.70.180; reenacting and amending RCW 9.94A.320; and prescribing penalties.

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

Sec. 1. Section 16, chapter 74, Laws of 1967 ex. sess. as last amended by section 20, chapter 415, Laws of 1989 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 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 broker or arrange for the exchange of an interest in a vehicle from the original owner to another party whether by sale, sublease, or lease when liens against the vehicle remain unpaid, and the title is not transferred, after the subsequent purchaser, sublessee, or lessee takes possession of the vehicle. A violation of this subsection is a class C felony.

(6) 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. A violation of this subsection is a class C felony punishable under chapter 9A.20 RCW.

((~~(6)~~)) (7) 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)~~)) (8) To commit any other offense under RCW 46.37.423, 46.37.424, or 46.37.425.

((~~(8)~~)) (9) 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)~~)) (10) 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)~~)) (11) 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)~~)) (12) 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. This paragraph and subsection ((~~(11)~~)) (12)(b) of this section do not apply to new motor vehicle manufacturers governed by chapter 46.96 RCW.

Sec. 2. Section 1, chapter 99, Laws of 1989, section 102, chapter 271, Laws of 1989, section 1, chapter 405, Laws of 1989, section 3, chapter 412, Laws of 1989, and section 3, chapter 1, Laws of 1989 2nd ex. sess. and RCW 9.94A.320 are each reenacted and amended to read as follows:

TABLE 2

CRIMES INCLUDED WITHIN EACH SERIOUSNESS LEVEL

@lb!ix!tu5,10!ih12 !trXIV!tlAggravated Murder 1 (RCW 10.95.020)

!trXIII!tlMurder 1 (RCW 9A.32.030)

!tj1!tlHomicide by abuse (RCW 9A.32.055)

!trXII!tlMurder 2 (RCW 9A.32.050)

!trXI!tlAssault 1 (RCW 9A.36.011)

!trX!tlKidnapping 1 (RCW 9A.40.020)

!tj1!tlRape 1 (RCW 9A.44.040)

!tj1!tlRape of a Child 1 (RCW 9A.44.073)

!tj1!tlDamaging building, etc., by explosion with threat to human being (RCW 70.74.280(1))

!tj1!tlOver 18 and deliver heroin or narcotic from Schedule I or II to someone under 18 (RCW 69.50.406)

!tj1!tlLeading Organized Crime (RCW 9A.82.060(1)(a))

!trIX!tlRobbery 1 (RCW 9A.56.200)

!tj1!tlManslaughter 1 (RCW 9A.32.060)

!tj1!tlExplosive devices prohibited (RCW 70.74.180)

!tj1!tlEndangering life and property by explosives with threat to human being (RCW 70.74.270)

!tj1!tlOver 18 and deliver narcotic from Schedule III, IV, or V or a nonnarcotic from Schedule I-V to someone under 18 and 3 years junior (RCW 69.50.406)

!tj1!tlControlled Substance Homicide (RCW 69.50.415)

!tj1!tlSexual Exploitation, Under 16 (*RCW 9.68A.040(2)(a))

!tj1!tlInciting Criminal Profiteering (RCW 9A.82.060(1)(b))

!trVIII!tlArson 1 (RCW 9A.48.020)

!tj1!tlRape 2 (RCW 9A.44.050)

!tj1!tlRape of a Child 2 (RCW 9A.44.076)

!tj1!tlChild Molestation 1 (RCW 9A.44.083)

!tj1!tlPromoting Prostitution 1 (RCW 9A.88.070)

!tj1!tlSelling heroin for profit (RCW 69.50.410)

!tj1!tlManufacture, deliver, or possess with intent to deliver heroin or cocaine (RCW 69.50.401(a)(1)(i))

!tj1!tlManufacture, deliver, or possess with intent to deliver methamphetamine (RCW 69.50.401(a)(1)(ii))

!tj1!tlVehicular Homicide, by being under the influence of intoxicating liquor or any drug or by the operation of any vehicle in a reckless manner (RCW 46.61.520)

!trVII!tlBurglary 1 (RCW 9A.52.020)

!tj1!tl Vehicular Homicide, by disregard for the safety of others (RCW 46.61.520)

!tj1!tlIntroducing Contraband 1 (RCW 9A.76.140)

!tj1!tlIndecent Liberties (with forcible compulsion) (RCW 9A.44.100(1)(a))

!tj1!tlSexual Exploitation, Under 18 (*RCW 9.68A.040(2)(b))

!tj1!tlDealing in depictions of minor engaged in sexually explicit conduct (RCW 9.68A.050)

!tj1!tlSending, bringing into state depictions of minor engaged in sexually explicit conduct (RCW 9.68A.060)

!tj1!tlInvolving a minor in drug dealing (RCW 69.50.401(f))

!trVI!tlBribery (RCW 9A.68.010)

!tj1!tlManslaughter 2 (RCW 9A.32.070)

!tj1!tlChild Molestation 2 (RCW 9A.44.086)

!tj1!tlIntimidating a Juror/Witness (RCW 9A.72.110, 9A.72.130)

!tj1!tlDamaging building, etc., by explosion with no threat to human being (RCW 70.74.280(2))

!tj1!tlEndangering life and property by explosives with no threat to human being (RCW 70.74.270)

!tj1!tlIndecent Liberties (without forcible compulsion) (RCW 9A.44.100(1)(b) and (c))

!tj1!tlIncest 1 (RCW 9A.64.020(1))

!tj1!tlSelling for profit (controlled or counterfeit) any controlled substance (except heroin) (RCW 69.50.410)

!tj1!tlManufacture, deliver, or possess with intent to deliver narcotics from Schedule I or II (except heroin or cocaine) (RCW 69.50.401(a)(1)(i))

!tj1!tlIntimidating a Judge (RCW 9A.72.160)

!tj1!tlBail Jumping with Murder 1 (RCW 9A.76.170(2)(a))

!trV !tlCriminal Mistreatment 1 (RCW 9A.42.020)

!tj1!tlRape 3 (RCW 9A.44.060)

!tj1!tlKidnapping 2 (RCW 9A.40.030)

!tj1!tlExtortion 1 (RCW 9A.56.120)

!tj1!tlIncest 2 (RCW 9A.64.020(2))

!tj1!tlPerjury 1 (RCW 9A.72.020)

!tj1!tlExtortionate Extension of Credit (RCW 9A.82.020)

!tj1!tlAdvancing money or property for extortionate extension of credit (RCW 9A.82.030)

!tj1!tlExtortionate Means to Collect Extensions of Credit (RCW 9A.82.040)

!tj1!tlRendering Criminal Assistance 1 (RCW 9A.76.070)

!tj1!tlBail Jumping with class A Felony (RCW 9A.76.170(2)(b))

!tj1!tlDelivery of imitation controlled substance by person eighteen or over to person under eighteen (RCW 69.52.030(2))

!trIV!tlTheft of Livestock 1 (RCW 9A.56.080)

!tj1!tlRobbery 2 (RCW 9A.56.210)

!tj1!tlAssault 2 (RCW 9A.36.021)

!tj1!tlEscape 1 (RCW 9A.76.110)

!tj1!tlArson 2 (RCW 9A.48.030)

!tj1!tlRape of a Child 3 (RCW 9A.44.079)

!tj1!tlBribing a Witness/Bribe Received by Witness (RCW 9A.72.090, 9A.72.100)

!tj1!tlMalicious Harassment (RCW 9A.36.080)

!tj1!tlThreats to Bomb (RCW 9.61.160)

!tj1!tlWillful Failure to Return from Furlough (RCW 72.66.060)

!tj1!tlHit and Run -- Injury Accident (RCW 46.52.020(4))

!tj1!tlVehicular Assault (RCW 46.61.522)

!tj1!tlManufacture, deliver, or possess with intent to deliver narcotics from Schedule III, IV, or V or nonnarcotics from Schedule I-V (except marijuana or methamphetamines) (RCW 69.50.401(a)(1)(ii) through (iv))

!tj1!tlInfluencing Outcome of Sporting Event (RCW 9A.82.070)

!tj1!tlUse of Proceeds of Criminal Profiteering (RCW 9A.82.080 (1) and (2))

!tj1!tlKnowingly Trafficking in Stolen Property (RCW 9A.82.050(2))

!tj1!tlUnlawful Brokering or Arranging for Exchange of Interest in a Vehicle (RCW 46.70.180(5))

!trIII !tlCriminal Mistreatment 2 (RCW 9A.42.030)

!tj1!tlSexual Misconduct with a Minor 1 (RCW 9A.44.093)

!tj1!tlChild Molestation 3 (RCW 9A.44.089)

!tj1!tlExtortion 2 (RCW 9A.56.130)

!tj1!tlUnlawful Imprisonment (RCW 9A.40.040)

!tj1!tlAssault 3 (RCW 9A.36.031)

!tj1!tlCustodial Assault (RCW 9A.36.100)

!tj1!tlUnlawful possession of firearm or pistol by felon (RCW 9.41.040)

!tj1!tlHarassment (RCW 9A.46.020)

!tj1!tlPromoting Prostitution 2 (RCW 9A.88.080)

!tj1!tlWillful Failure to Return from Work Release (RCW 72.65.070)

!tj1!tlIntroducing Contraband 2 (RCW 9A.76.150)

!tj1!tl Communication with a Minor for Immoral Purposes (RCW 9.68A.090)

!tj1!tlPatronizing a Juvenile Prostitute (RCW 9.68A.100)

!tj1!tlEscape 2 (RCW 9A.76.120)

!tj1!tlPerjury 2 (RCW 9A.72.030)

!tj1!tlBail Jumping with class B or C Felony (RCW 9A.76.170(2)(c))

!tj1!tlIntimidating a Public Servant (RCW 9A.76.180)

!tj1!tlTampering with a Witness (RCW 9A.72.120)

!tj1!tlManufacture, deliver, or possess with intent to deliver marijuana (RCW 69.50.401(a)(1)(ii))

!tj1!tlDelivery of a material in lieu of a controlled substance (RCW 69.50.401(c))

!tj1!tlManufacture, distribute, or possess with intent to distribute an imitation controlled substance (RCW 69.52.030(1))

!tj1!tlRecklessly Trafficking in Stolen Property (RCW 9A.82.050(1))

!tj1!tlTheft of livestock 2 (RCW 9A.56.080)

!tj1!tlSecurities Act violation (RCW 21.20.400)

!trII!tlMalicious Mischief 1 (RCW 9A.48.070)

!tj1!tlPossession of Stolen Property 1 (RCW 9A.56.150)

!tj1!tlTheft 1 (RCW 9A.56.030)

!tj1!tlBurglary 2 (RCW 9A.52.030)

!tj1!tlPossession of controlled substance that is either heroin or narcotics from Schedule I or II (RCW 69.50.401(d))

!tj1!tlPossession of phencyclidine (PCP) (RCW 69.50.401(d))

!tj1!tlCreate, deliver, or possess a counterfeit controlled substance (RCW 69.50.401(b))

!tj1!tlComputer Trespass 1 (RCW 9A.52.110)

!tj1!tlReckless Endangerment 1 (RCW 9A.36.045)

!trI!tlTheft 2 (RCW 9A.56.040)

!tj1!tlPossession of Stolen Property 2 (RCW 9A.56.160)

!tj1!tlForgery (RCW 9A.60.020)

!tj1!tl Taking Motor Vehicle Without Permission (RCW 9A.56.070)

!tj1!tlVehicle Prowl 1 (RCW 9A.52.095)

!tj1!tl Attempting to Elude a Pursuing Police Vehicle (RCW 46.61.024)

!tj1!tlMalicious Mischief 2 (RCW 9A.48.080)

!tj1!tlReckless Burning 1 (RCW 9A.48.040)

!tj1!tlUnlawful Issuance of Checks or Drafts (RCW 9A.56.060)

!tj1!tlUnlawful Use of Food Stamps (RCW 9.91.140 (2) and (3))

!tj1!tlFalse Verification for Welfare (RCW 74.08.055)

!tj1!tlForged Prescription (RCW 69.41.020)

!tj1!tlForged Prescription for a Controlled Substance (RCW 69.50.403)

!tj1!tlPossess Controlled Substance that is a Narcotic from Schedule III, IV, or V or Non-narcotic from Schedule I-V (except phencyclidine) (RCW 69.50.401(d))

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