HOUSE BILL REPORT

                  HB 1878

                       As Passed House

                       March 12, 1991

Title:  An act relating to motor vehicle dealer license plates.

Brief Description:  Establishing minimum requirements for dealers' plates.

Sponsor(s):  Representatives Cooper, Betrozoff, R. Meyers, Day, Prince and Haugen.

Brief History:

  Reported by House Committee on:

Transportation, February 27, 1991, DP;

Passed House, March 12, 1991, 96-0.

HOUSE COMMITTEE ON

TRANSPORTATION

Majority Report: Do pass.  Signed by 24 members:  Representatives R. Fisher, Chair; R. Meyers, Vice Chair; Betrozoff, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Basich; Cantwell; Cooper; Day; G. Fisher; Forner; Haugen; Heavey; Horn; P. Johnson; Jones; Mitchell; Nelson; Orr; Prentice; Prince; Schmidt; Wilson; Wood; and Zellinsky.

Staff:  Brad Lovaas (786-7307).

Background:  The Department of Licensing (DOL) is responsible for issuing vehicle dealer license plates to vehicle dealers and manufacturers who are licensed with DOL.

There are limitations on the use of dealer plates.  However, there are no minimum vehicle sales limits established for vehicle dealers in order to qualify for dealer plates.

Summary of Bill:  The Department of Licensing (DOL) shall not issue a dealer plate to any vehicle dealer selling fewer than five vehicles annually.

DOL shall limit the number of dealer plates to 6 percent of the vehicles sold during the previous license period.

Criteria are added for the use of manufacturers' license plates.

Dealers and manufacturers are to report the number of vehicles sold in the previous year.

Fiscal Note:  Requested February 14, 1991.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The possibility of people becoming dealers to avoid paying vehicle license fees by using dealer plates is eliminated.

Testimony Against:  None.

Witnesses:  Heather Hamilton, Department of Licensing; and Janet Cunningham, Washington State New Car and Truck Dealers.