S-3552.1  _______________________________________________

                         SENATE BILL 6435

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Senators Wood, Prentice and Winsley

Read first time 01/19/98.  Referred to Committee on Transportation.

Updating vehicle dealer license requirements.

    AN ACT Relating to vehicle dealer license requirements; and reenacting and amending RCW 46.70.041.

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

    Sec. 1.  RCW 46.70.041 and 1993 c 307 s 6 and 1993 c 175 s 2 are each reenacted and amended to read as follows:

    (1) Every application for a vehicle dealer license shall contain the following information to the extent it applies to the applicant:

    (a) Proof as the department may require concerning the applicant's identity, including but not limited to his fingerprints, the honesty, truthfulness, and good reputation of the applicant for the license, or of the officers of a corporation making the application;

    (b) The applicant's form and place of organization including if the applicant is a corporation, proof that the corporation is licensed to do business in this state;

    (c) The qualification and business history of the applicant and any partner, officer, or director;

    (d) The applicant's financial condition or history including a bank reference and whether the applicant or any partner, officer, or director has ever been adjudged bankrupt or has any unsatisfied judgment in any federal or state court;

    (e) Whether the applicant has been adjudged guilty of a crime which directly relates to the business for which the license is sought and the time elapsed since the conviction is less than ten years, or has suffered any judgment within the preceding five years in any civil action involving fraud, misrepresentation, or conversion and in the case of a corporation or partnership, all directors, officers, or partners;

    (f) A business telephone with a listing in the local directory;

    (g) The name or names of new vehicles the vehicle dealer wishes to sell;

    (h) The names and addresses of each manufacturer from whom the applicant has received a franchise;

    (i) A certificate by a representative of the department, that the applicant's principal place of business and each subagency business location in the state of Washington meets the location requirements as required by this chapter.  The certificate shall include proof of the applicant's ownership or lease of the real property where the applicant's principal place of business is established;

    (j) A copy of a current service agreement with a manufacturer, or distributor for a foreign manufacturer, requiring the applicant, upon demand of any customer receiving a new vehicle warranty to perform or arrange for, within a reasonable distance of his established place of business, the service repair and replacement work required of the manufacturer or distributor by such vehicle warranty.  This requirement ((applies only)) does not apply to applicants seeking to ((sell, to exchange, to)) offer, ((to auction,)) to solicit, ((to advertise,)) or to broker new or current-model vehicles ((with factory or distributor warranties)) that are sold by a franchised dealer having a valid written service agreement as required by this chapter;

    (k) The class of vehicles the vehicle dealer will be buying, selling, listing, exchanging, offering, brokering, leasing with an option to purchase, auctioning, soliciting, or advertising, and which classification or classifications the dealer wishes to be designated as;

    (l) Any other information the department may reasonably require.

    (2) If the applicant is a manufacturer the application shall contain the following information to the extent it is applicable to the applicant:

    (a) The name and address of the principal place of business of the applicant and, if different, the name and address of the Washington state representative of the applicant;

    (b) The name or names under which the applicant will do business in the state of Washington;

    (c) Evidence that the applicant is authorized to do business in the state of Washington;

    (d) The name or names of the vehicles that the licensee manufactures;

    (e) The name or names and address or addresses of each and every distributor, factory branch, and factory representative;

    (f) The name or names and address or addresses of resident employees or agents to provide service or repairs to vehicles located in the state of Washington only under the terms of any warranty attached to new or unused vehicles manufactured, unless such manufacturer requires warranty service to be performed by all of its dealers pursuant to a current service agreement on file with the department;

    (g) Any other information the department may reasonably require.

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