AN ACT Relating to illegal vehicle wrecking operations; amending RCW 46.80.020 and 46.80.150; reenacting and amending RCW 46.80.010; adding a new section to chapter 46.80 RCW; creating a new section; and providing a contingent expiration date.

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

Sec. 2.  RCW 46.80.010 and 2010 c 161 s 1138 and 2010 c 8 s 9097 are each reenacted and amended to read as follows:

The definitions set forth in this section apply throughout this chapter.

(1) "Core" means a major component part received by a vehicle wrecker in exchange for a like part sold by the vehicle wrecker, is not resold as a major component part except for scrap metal value or for remanufacture, and the vehicle wrecker maintains records for three years from the date of acquisition to identify the name of the person from whom the core was received.

(2) "Established place of business" means a building or enclosure which the vehicle wrecker occupies either continuously or at regular periods and where his or her books and records are kept and business is transacted and which must conform with zoning regulations.

(3) "Interim owner" means the owner of a vehicle who has the original certificate of title for the vehicle, which certificate has been released by the person named on the certificate and assigned to the person offering to sell the vehicle to the wrecker.

(4) "Major component part" includes at least each of the following vehicle parts: (a) Engines and short blocks; (b) frame; (c) transmission and/or transfer case; (d) cab; (e) door; (f) front or rear differential; (g) front or rear clip; (h) quarter panel; (i) truck bed or box; (j) seat; (k) hood; (l) bumper; (m) fender; and (n) airbag. The director may supplement this list by rule.

(5) "Motor vehicle" means a vehicle required to be registered in accordance with chapter 46.16A RCW.

(7) "Vehicle wrecker" means every person, firm, partnership, association, or corporation engaged in the business of buying, selling, or dealing in vehicles of a type required to be registered under the laws of this state, for the purpose of wrecking, dismantling, disassembling, or substantially changing the form of a vehicle, or who buys or sells integral secondhand parts of component material thereof, in whole or in part, or who deals in secondhand vehicle parts.

(((6))) (8) "Wrecked vehicle" means a vehicle which is disassembled or dismantled or a vehicle which is acquired with the intent to dismantle or disassemble and never again to operate as a vehicle, or a vehicle which has sustained such damage that its cost to repair exceeds the fair market value of a like vehicle which has not sustained such damage, or a damaged vehicle whose salvage value plus cost to repair equals or exceeds its fair market value, if repaired, or a vehicle which has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state for which the salvage value plus cost to repair exceeds its fair market value, if repaired; further, it is presumed that a vehicle is a wreck if it has sustained such damage or deterioration that it may not lawfully operate upon the highways of this state.

Sec. 3.  RCW 46.80.020 and 2003 c 53 s 253 are each amended to read as follows:

(1) It is unlawful for a person to engage in the business of wrecking vehicles without having first applied for and received a license issued under this chapter.

(2)(a) Except as provided in (b) of this subsection, a person or firm engaged in the unlawful activity described in this section is in violation of chapter 19.86 RCW and is also guilty of a gross misdemeanor.

(b) A second or subsequent offense is a class C felony punishable according to chapter 9A.20 RCW.

Sec. 4.  RCW 46.80.150 and 1995 c 256 s 16 are each amended to read as follows:

((It shall be the duty of the chiefs of police, or)) The Washington state patrol((, in cities having a population of over five thousand persons, and in all other cases the Washington state patrol, to)) shall make periodic inspections of the vehicle wrecker's licensed premises and records provided for in this chapter during normal business hours, and furnish a certificate of inspection to the department in such manner as may be determined by the department. The Washington state patrol may delegate its inspection responsibility to a police chief of a city or the sheriff of a county as long as the state patrol determines that the police chief or sheriff has the same expertise to conduct the inspection as the state patrol. In any instance, an authorized representative of the department may make the inspection.

NEW SECTION.  Sec. 5.  A new section is added to chapter 46.80 RCW to read as follows:

(1) The legislature finds that:

(a) There is a high probability of large-scale illegal vehicle wrecking and illegal sales of used vehicle parts occurring in Washington state by persons, firms, and corporations that are not licensed as required under this chapter;

(b) Illegal wrecking and the illegal sale of used vehicle parts are harming the citizens of Washington state by increasing insurance rates on vehicles due to an excessive number of stolen vehicles that are dismantled and the parts from those stolen vehicles being sold by the vehicle thieves; and

(c) Washington citizens are also being harmed by:

(i) Illegal vehicle wreckers selling used vehicle parts and not collecting or remitting sales taxes or paying other applicable taxes;

(ii) Illegal vehicle wreckers who fail to properly collect waste fluids and gases as required by the state's air quality laws, dangerous waste laws, clean water laws, and soil protection laws, with state taxpayers having to pay for the cleanup of contaminated soils, contaminated waters, and air pollution caused by such illegal operations; and

(iii) The sharp decline of lawful vehicle wrecking operations that keep records about the location and ultimate disposal of wrecked motor vehicles.

(2)(a) Subject to the availability of amounts appropriated for this specific purpose, the department, the Washington state patrol, the department of revenue, and the department of ecology must form a task force to establish a plan to identify, inspect, and stop or minimize illegal vehicle wrecking operations in Washington state.

(b) The task force must solicit input from licensed vehicle wreckers and their representatives on how to identify and locate illegal vehicle wrecking operations.

(c) By November 1, 2017, the task force must provide a written report to the standing transportation committees of the house of representatives and the senate, the standing environment committee of the house of representatives and the standing energy, environment, and telecommunications committee of the senate, the public safety committee of the house of representatives and the law and justice committee of the senate, or their successor committees, on the following:

(i) Its plan to identify illegal vehicle wrecking operations;

(ii) Its plan to investigate illegal vehicle wrecking operations;

(iii) Its plan to stop or minimize illegal vehicle wrecking operations;

(iv) Its schedule and any additional resources needed to implement such plans;

(v) Any recommendations by the task force for changes in state statutes or rules; and

(vi) Any other recommendations by the task force.

(d) By January 1, 2020, the task force must provide a written report to the standing transportation committees of the house of representatives and the senate, the standing environment committee of the house of representatives and the standing energy, environment, and telecommunications committee of the senate, the public safety committee of the house of representatives and the law and justice committee of the senate, or their successor committees, on the following:

(i) The number of illegal vehicle wrecking operations the task force has identified in the previous two calendar years, by year;

(ii) The number of illegal vehicle wrecking operations the task force has investigated in the previous two calendar years, by year;

(iii) The number of illegal vehicle wrecking operations the task force has stopped operating in the previous two calendar years, by year;

(iv) The amount of sales taxes not collected or remitted from such operations to the department of revenue for the previous two calendar years, by year; and

(v) The estimated amount of used oil, used antifreeze, and other substances that are harmful to the environment that have been released into the environment by illegal vehicle wrecking operations for the previous two calendar years, by year.

(3) This section expires July 1, 2020, if the report required in subsection (2)(d) of this section is submitted as required in subsection (2)(d) of this section.

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