S-0983.2  _______________________________________________

 

                         SENATE BILL 5685

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senators Long, Haugen, Wood, Kohl, Prince, Fraser, Owen, Schow, Sellar, Heavey, Rasmussen, Winsley and Sheldon

 

Read first time 01/31/95.  Referred to Committee on Transportation.

 

Updating regulation of salvaged vehicles.



    AN ACT Relating to salvaged vehicles; amending RCW 46.12.050, 46.12.310, 46.80.005, 46.80.010, 46.80.020, 46.80.040, 46.80.050, 46.80.060, 46.80.070, 46.80.080, 46.80.090, 46.80.100, 46.80.110, 46.80.130, 46.80.150, 46.80.160, 46.80.170, and 46.80.900; adding a new section to chapter 46.12 RCW; adding new sections to chapter 46.80 RCW; creating a new section; repealing RCW 46.80.055; and prescribing penalties.

 

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

 

    NEW SECTION.  Sec. 1.  (1) The legislature recognizes that (a) some significantly damaged vehicles are being rebuilt and sold to the public in an unsafe condition; (b) buyers of used vehicles have a right to know if a vehicle has sustained significant damage as the result of a collision or other occurrence; (c) vehicle and part numbers from significantly damaged vehicles are being used to market stolen vehicles and parts; and (d) the federal government may require states to conform to a uniform system of titling and registration under the federal Anti-Car Theft Act of 1992.

    (2) The department of licensing, in cooperation with the state patrol, representatives of the insurance industry, representatives of industries engaged in selling or buying significantly damaged vehicles, and representatives of other appropriate groups, shall develop a plan for unique titling and registration of significantly damaged vehicles and propose any other measures that are consistent with federal requirements and address the issues identified in subsection (1) of this section.  The plan and any legislation necessary to implement the plan shall be submitted to the office of financial management and the legislative transportation committee by October 1, 1995.

 

    Sec. 2.  RCW 46.12.050 and 1993 c 307 s 1 are each amended to read as follows:

    The department, if satisfied from the statements upon the application that the applicant is the legal owner of the vehicle or otherwise entitled to have a certificate of ownership thereof in the applicant's name, shall issue an appropriate electronic record of ownership or a written certificate of ownership, over the director's signature, authenticated by seal, and if required, a new written certificate of license registration if certificate of license registration is required.

    The certificates of ownership and the certificates of license registration shall contain upon the face thereof, the date of application, the registration number assigned to the registered owner and to the vehicle, the name and address of the registered owner and legal owner, the vehicle identification number, and such other description of the vehicle and facts as the department shall require, and in addition thereto, if the vehicle described in such certificates shall have ever been licensed and operated as an exempt vehicle or a taxicab, or if it ((is less than four years old and)) has been ((rebuilt after having been totaled out by an insurance carrier)) reported to the department as a total loss, such fact shall be clearly shown thereon.  For vehicles reported as a total loss, the certificates must include the month and year the vehicle was declared a total loss.

    All certificates of ownership of motor vehicles issued after April 30, 1990, shall reflect the odometer reading as provided by the odometer disclosure statement submitted with the title application involving a transfer of ownership.

    A blank space shall be provided on the face of the certificate of license registration for the signature of the registered owner.

    Upon issuance of the certificate of license registration and certificate of ownership and upon any reissue thereof, the department shall deliver the certificate of license registration to the registered owner and the certificate of ownership to the legal owner, or both to the person who is both the registered owner and legal owner.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 46.12 RCW to read as follows:

    It is a class C felony for a person to sell or convey a vehicle certificate of ownership except in conjunction with the sale or transfer of the vehicle for which the certificate was originally issued.

 

    Sec. 4.  RCW 46.12.310 and 1975-'76 2nd ex.s. c 91 s 2 are each amended to read as follows:

    (1) Any vehicle, watercraft, camper, or any component part thereof, from which the manufacturer's serial number or any other distinguishing number or identification mark has been removed, defaced, covered, altered, obliterated, or destroyed, ((there being reasonable grounds to believe that such was done for the purpose of concealing or misrepresenting identity, shall)) may be impounded and held by the seizing law enforcement agency for the purpose of conducting an investigation to determine the identity of the article or articles, and to determine whether it had been reported stolen.

    (2) Within five days of the impounding of any vehicle, watercraft, camper, or component part thereof, the law enforcement agency seizing the article or articles shall send written notice of such impoundment by certified mail to all persons known to the agency as claiming an interest in the article or articles.  The seizing agency shall exercise reasonable diligence in ascertaining the names and addresses of those persons claiming an interest in the article or articles.  Such notice shall advise the person of the fact of seizure, the possible disposition of the article or articles, the requirement of filing a written claim requesting notification of potential disposition, and the right of the person to request a hearing to establish a claim of ownership.  Within five days of receiving notice of other persons claiming an interest in the article or articles, the seizing agency shall send a like notice to each such person.

    (3) If reported as stolen, the seizing law enforcement agency shall promptly release such vehicle, watercraft, camper, or parts thereof as have been stolen, to the person who is the lawful owner or the lawful successor in interest, upon receiving proof that such person presently owns or has a lawful right to the possession of the article or articles.

 

    Sec. 5.  RCW 46.80.005 and 1977 ex.s. c 253 s 1 are each amended to read as follows:

    The legislature finds and declares that the distribution and sale of vehicle parts in the state of Washington vitally affects the general economy of the state and the public interest and the public welfare, and that in order to promote the public interest and the public welfare and in the exercise of its police power, it is necessary to regulate and license ((motor)) vehicle wreckers and dismantlers, the buyers-for-resale, and the sellers of second-hand vehicle components doing business in Washington, in order to prevent the sale of stolen vehicle parts, to prevent frauds, impositions, and other abuses, and to preserve the investments and properties of the citizens of this state.

 

    Sec. 6.  RCW 46.80.010 and 1977 ex.s. c 253 s 2 are each amended to read as follows:

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

    (1) "((Motor)) Vehicle wrecker((,))" ((whenever used in this chapter, shall)) 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 licensed under the laws of this state, for the purpose of wrecking, dismantling, disassembling, or substantially changing the form of ((any motor)) a vehicle, or who buys or sells integral second-hand parts of component material thereof, in whole or in part, or who deals in second-hand ((motor)) vehicle parts.  (2) "Established place of business((,))" ((whenever used in this chapter, shall)) means a building or enclosure which the ((motor)) vehicle wrecker occupies either continuously or at regular periods and where his books and records are kept and business is transacted and which must conform with zoning regulations.

    (3) "Major component part"((, whenever used in this chapter, shall)) 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; ((and)) (l) bumper; (m) fender; and (n) airbag.  The director may supplement this list by rule.

    (4) "Wrecked vehicle"((, whenever used in this chapter, shall)) 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. 7.  RCW 46.80.020 and 1979 c 158 s 192 are each amended to read as follows:

    It ((shall be)) is unlawful for ((any motor vehicle wrecker, as defined herein,)) a person to engage in the business of wrecking ((motor)) vehicles ((or trailers)) without having first applied for and received a license ((from the department of licensing authorizing him so to do)).  A person or firm engaged in the unlawful activity is guilty of a gross misdemeanor.  A second or subsequent offense is a class C felony.

 

    Sec. 8.  RCW 46.80.040 and 1971 ex.s. c 7 s 3 are each amended to read as follows:

    ((Such)) The application, together with a fee of twenty-five dollars, and a surety bond as ((hereinafter)) provided in RCW 46.80.070, shall be forwarded to the department.  Upon receipt of the application the department shall, if the application ((be)) is in order, issue a ((motor)) vehicle wrecker's license authorizing ((him)) the wrecker to do business as such and forward the fee((, together with an itemized and detailed report,)) to the state treasurer, to be deposited in the motor vehicle fund.  Upon receiving the certificate the owner shall cause it to be prominently displayed in ((his)) the place of business, where it may be inspected by an investigating officer at any time.

 

    Sec. 9.  RCW 46.80.050 and 1985 c 109 s 7 are each amended to read as follows:

    A license issued on this application ((shall)) remains in force until suspended or revoked and may be renewed annually upon reapplication according to RCW 46.80.030 and upon payment of a fee of ten dollars.  ((Any motor)) A vehicle wrecker who fails or neglects to renew ((his)) the license before the assigned expiration date shall ((be required to)) pay the fee for an original ((motor)) vehicle wrecker license as provided in this chapter.

    Whenever a ((motor)) vehicle wrecker ceases to do business as such or ((his)) the license has been suspended or revoked, ((he)) the wrecker shall immediately surrender ((such)) the license to the department.

 

    Sec. 10.  RCW 46.80.060 and 1961 c 12 s 46.80.060 are each amended to read as follows:

    The ((motor)) vehicle wrecker shall obtain a special set of license plates in addition to the regular licenses and plates required for the operation of such vehicles ((which shall)).  The special plates must be displayed on vehicles owned and/or operated by ((him)) the wrecker and used in the conduct of ((his)) the business.  The fee for these plates shall be five dollars for the original plates and two dollars for each additional set of plates bearing the same license number.

 

    Sec. 11.  RCW 46.80.070 and 1977 ex.s. c 253 s 5 are each amended to read as follows:

    Before issuing a ((motor)) vehicle wrecker's license, the department shall require the applicant to file with ((said)) the department a surety bond in the amount of one thousand dollars, running to the state of Washington and executed by a surety company authorized to do business in the state of Washington.  ((Such)) The bond shall be approved as to form by the attorney general and conditioned ((that such)) upon the wrecker ((shall conduct his)) conducting the business in conformity with the provisions of this chapter.  Any person who ((shall have)) has suffered any loss or damage by reason of fraud, carelessness, neglect, violation of the terms of this chapter, or misrepresentation on the part of the wrecking company, ((shall have the right to)) may institute an action for recovery against ((such motor)) the vehicle wrecker and surety upon ((such)) the bond((:  PROVIDED, That)).  However, the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond.

 

    Sec. 12.  RCW 46.80.080 and 1977 ex.s. c 253 s 6 are each amended to read as follows:

    (1) Every ((motor)) vehicle wrecker shall maintain books or files in which ((he)) the wrecker shall keep a record and a description of:

    (a) Every vehicle wrecked, dismantled, disassembled, or substantially altered by ((him)) the wrecker; and

    (b) Every major component part acquired by ((him)) the wrecker; together with a bill of sale signed by a seller whose identity has been verified and the name and address of the person, firm, or corporation from whom ((he)) the wrecker purchased the vehicle or part((:  PROVIDED, That)).  Major component parts shall be further identified by the vehicle identification number of the vehicle from which the part came.

    (2) ((Such)) The record shall also contain the following data regarding the wrecked or acquired vehicle or vehicle ((which)) that is the source of a major component part:

    (a) The certificate of title number (if previously titled in this or any other state);

    (b) Name of state where last registered;

    (c) Number of the last license number plate issued;

    (d) Name of vehicle;

    (e) Motor or identification number and serial number of the vehicle;

    (f) Date purchased;

    (g) Disposition of the motor and chassis;

    (h) Yard number assigned by the licensee to the vehicle or major component part, which shall also appear on the identified vehicle or part; and

    (i) Such other information as the department may require.

    (3) ((Such)) The records shall also contain a bill of sale signed by the seller for other minor component parts acquired by the licensee, identifying the seller by name, address, and date of sale.

    (4) ((Such)) The records shall be maintained by the licensee at his or her established place of business for a period of three years from the date of acquisition.

    (5) ((Such record shall be)) The record is subject to inspection at all times during regular business hours by members of the police department, sheriff's office, members of the Washington state patrol, or officers or employees of the department.

    (6) A ((motor)) vehicle wrecker shall also maintain a similar record of all disabled vehicles that have been towed or transported to the motor vehicle wrecker's place of business or to other places designated by the owner of the vehicle or his or her representative.  This record shall specify the name and description of the vehicle, name of owner, number of license plate, condition of the vehicle and place to which it was towed or transported.

    (7) Failure to comply with this section is a gross misdemeanor.

 

    Sec. 13.  RCW 46.80.090 and 1979 c 158 s 194 are each amended to read as follows:

    Within thirty days after acquiring a vehicle ((has been acquired by the motor vehicle wrecker it shall be the duty of such motor)), the vehicle wrecker ((to)) shall furnish a written report to the department ((on forms furnished by the department)).  This report shall be in such form as the department shall prescribe and shall be accompanied by ((the certificate of title, if the vehicle has been last registered in a state which issues a certificate, or a record of registration if registered in a state which does not issue a certificate of title)) evidence of ownership as determined by the department.  No ((motor)) vehicle wrecker ((shall)) may acquire a vehicle without first obtaining ((such record or title.  It shall be the duty of the motor)) evidence of ownership as determined by the department.  The vehicle wrecker ((to)) shall furnish a monthly report of all acquired vehicles ((wrecked, dismantled, disassembled, or substantially changed in form by him)).  This report shall be made on forms prescribed by the department and contain such information as the department may require.  This statement shall be signed by the ((motor)) vehicle wrecker or ((his)) an authorized representative and the facts therein sworn to before a notary public, or before an officer or employee of the department ((of licensing)) designated by the director to administer oaths or acknowledge signatures, pursuant to RCW 46.01.180.

 

    Sec. 14.  RCW 46.80.100 and 1977 ex.s. c 253 s 8 are each amended to read as follows:

    If, after issuing a ((motor)) vehicle wrecker's license, the bond is canceled by the surety in a method provided by law, the department shall immediately notify the principal covered by ((such)) the bond ((by registered mail)) and afford ((him)) the principal the opportunity of obtaining another bond before the termination of the original ((and should such)).  If the principal fails, neglects, or refuses to obtain ((such)) a replacement, the director may cancel or suspend the ((motor)) vehicle wrecker's license ((which has been issued to him under the provisions of this chapter)).  Notice of cancellation of the bond may be accomplished by sending a notice by first class mail using the last known address in department records for the principal covered by the bond and recording the transmittal on an affidavit of first class mail.

 

    Sec. 15.  RCW 46.80.110 and 1989 c 337 s 17 are each amended to read as follows:

    (1) The director or a designee may, pursuant to the provisions of chapter 34.05 RCW, by order deny, suspend, or revoke the license of ((any motor)) a vehicle wrecker, or assess a civil fine of up to five hundred dollars for each violation, if the director finds that the applicant or licensee has:

    (((1))) (a) Acquired a vehicle or major component part other than by first obtaining title or other documentation as provided by this chapter;

    (((2))) (b) Willfully misrepresented the physical condition of any motor or integral part of a ((motor)) vehicle;

    (((3))) (c) Sold, had in ((his)) the wrecker's possession, or disposed of a ((motor)) vehicle ((or trailer)) or any part thereof when he or she knows that ((such)) the vehicle or part has been stolen, or appropriated without the consent of the owner;

    (((4))) (d) Sold, bought, received, concealed, had in ((his)) the wrecker's possession, or disposed of a ((motor)) vehicle ((or trailer)) or part thereof having a missing, defaced, altered, or covered manufacturer's identification number, unless approved by a law enforcement officer;

    (((5))) (e) Committed forgery or misstated a material fact on any title, registration, or other document covering a vehicle that has been reassembled from parts obtained from the disassembling of other vehicles;

    (((6))) (f) Committed any dishonest act or omission ((which)) that the director has reason to believe has caused loss or serious inconvenience as a result of a sale of a ((motor)) vehicle((, trailer,)) or part thereof;

    (((7))) (g) Failed to comply with any of the provisions of this chapter or with any of the rules adopted under it, or with any of the provisions of Title 46 RCW relating to registration and certificates of title of vehicles;

    (((8))) (h) Procured a license fraudulently or dishonestly ((or that such license was erroneously issued));

    (((9))) (i) Been convicted of a crime that directly relates to the business of a vehicle wrecker and the time elapsed since conviction is less than ten years, or suffered any judgment within the preceding five years in any civil action involving fraud, misrepresentation, or conversion.  For the purposes of this section, conviction means in addition to a final conviction in either a federal, state, or municipal court, an unvacated forfeiture of bail or collateral deposited to secure a defendant's appearance in court, the payment of a fine, a plea of guilty, or a finding of guilt regardless of whether the sentence is deferred or the penalty is suspended.

    (2) In addition to actions by the department under this section, it is a gross misdemeanor to violate subsection (1) (a), (b), or (h) of this section.

 

    NEW SECTION.  Sec. 16.  A new section is added to chapter 46.80 RCW to read as follows:

    If a person whose vehicle wrecker license has previously been canceled for cause by the department files an application for a license to conduct business as a vehicle wrecker, or if the department is of the opinion that the application is not filed in good faith or that the application is filed by some person as a subterfuge for the real person in interest whose license has previously been canceled for cause, the department may refuse to issue the person a license to conduct business as a vehicle wrecker.

 

    Sec. 17.  RCW 46.80.130 and 1971 ex.s. c 7 s 9 are each amended to read as follows:

    (1) It ((shall be)) is unlawful for ((any motor)) a vehicle wrecker to keep ((any motor)) a vehicle or any integral part thereof in any place other than the established place of business, designated in the certificate issued by the department, without permission of the department.

    (2) All premises containing ((such motor)) vehicles or parts thereof shall be enclosed by a wall or fence of such height as to obscure the nature of the business carried on therein, except as provided in subsection (3) of this section.  To the extent reasonably necessary or permitted by the topography of the land, the department ((shall have the right to)) may establish specifications or standards for ((said)) the fence or wall((:  PROVIDED, HOWEVER, That such)).  The wall or fence shall be painted or stained a neutral shade ((which shall)) that blends in with the surrounding premises, and ((that such)) the wall or fence must be kept in good repair.  A living hedge of sufficient density to prevent a view of the confined area may be substituted for such a wall or fence.  Any dead or dying portion of ((such)) the hedge shall be replaced.

    (3) Beginning July 1, 1996, vehicles and parts may be displayed outside the fence or building only during business hours if the display is not in conflict with applicable county or city regulations.

    (4) Violation of subsection (1) or (3) of this section is a gross misdemeanor.

 

    Sec. 18.  RCW 46.80.150 and 1983 c 142 s 9 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 make periodic inspection of the ((motor)) 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((:  PROVIDED, That the above inspection)).  In any instance ((can be made by)), an authorized representative of the department may make the inspection.

 

    Sec. 19.  RCW 46.80.160 and 1961 c 12 s 46.80.160 are each amended to read as follows:

    Any municipality or political subdivision of this state ((which)) that now has or subsequently makes provision for the regulation of ((automobile)) vehicle wreckers shall comply strictly with the provisions of this chapter.

 

    Sec. 20.  RCW 46.80.170 and 1977 ex.s. c 253 s 11 are each amended to read as follows:

    ((It shall be)) Unless otherwise provided by law, it is a ((gross)) misdemeanor for any person to violate any of the provisions of this chapter or the rules ((and regulations promulgated as provided)) adopted under this chapter((, and any person so convicted shall be punished by imprisonment for not less than thirty days or more than one year in jail or by a fine of one thousand dollars)).

 

    NEW SECTION.  Sec. 21.  A new section is added to chapter 46.80 RCW to read as follows:

    (1) If it appears to the director that an unlicensed person has engaged in an act or practice constituting a violation of this chapter, or a rule adopted or an order issued under this chapter, the director may issue an order directing the person to cease and desist from continuing the act or practice.  The director shall give the person reasonable notice of and opportunity for a hearing.  The director may issue a temporary order pending a hearing.  The temporary order remains in effect until ten days after the hearing is held and becomes final if the person to whom the notice is addressed does not request a hearing within fifteen days after receipt of the notice.

    (2) The director may assess a fine of up to one thousand dollars with the final order for each act or practice constituting a violation of this chapter.

 

    NEW SECTION.  Sec. 22.  A new section is added to chapter 46.80 RCW to read as follows:

    The department of licensing or its authorized agent may examine or subpoena any persons, books, papers, records, data, vehicles, or vehicle parts bearing upon the investigation or proceeding under this chapter.

    The persons subpoenaed may be required to testify and produce any books, papers, records, data, vehicles, or vehicle parts that the director deems relevant or material to the inquiry.

    The director or an authorized agent may administer an oath to the person required to testify, and a person giving false testimony after the administration of the oath is guilty of perjury in the first degree.

    A court of competent jurisdiction may, upon application by the director, issue to a person who fails to comply, an order to appear before the director or officer designated by the director, to produce documentary or other evidence touching the matter under investigation or in question.

 

    Sec. 23.  RCW 46.80.900 and 1977 ex.s. c 253 s 13 are each amended to read as follows:

    The provisions of this chapter shall be liberally construed to the end that traffic in stolen vehicle parts may be prevented, and irresponsible, unreliable, or dishonest persons may be prevented from engaging in the business of wrecking ((motor)) vehicles or selling used vehicle parts in this state and reliable persons may be encouraged to engage in businesses of wrecking or reselling vehicle parts in this state.

 

    NEW SECTION.  Sec. 24.  RCW 46.80.055 and 1985 c 109 s 8 are each repealed.

 


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