SENATE BILL REPORT

SHB 2995

As Reported By Senate Committee On:

Transportation, March 4, 2002

Title:  An act relating to vehicle dealer documentary service fees.

Brief Description:  Allowing vehicle dealers to charge documentary service fees.

Sponsors:  House Committee on Transportation (originally sponsored by Representative Fisher).

Brief History:

Committee Activity:  Transportation:   3/4/02 [DP].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

Signed by Senators Haugen, Chair; Gardner, Vice Chair; Benton, Eide, Finkbeiner, Horn, Jacobsen, Kastama, Keiser, McAuliffe, Prentice, Shin and Swecker.

Staff:  Dean Carlson (786‑7305)

Background:  Under current law, licensed vehicle dealers are required to license and title vehicles they sell, as well as collect a variety of related taxes and fees.  However, current law prohibits vehicle dealers from charging any kind of fee for carrying out their licensing and titling responsibilities.

Summary of Bill:  Auto dealers are authorized to charge a documentary service fee of up to $35 per vehicle sale or lease, to recover costs associated with administrative and documentary services rendered in connection with the sale or lease of a vehicle.

In order to charge the document service fee, vehicle dealers must observe the following conditions:

$the service fee must be disclosed in writing before the execution of a purchase and sale or lease agreement;

$the service fee is not represented to the buyer as a fee or charge required by the state to be paid by either the dealer or the buyer;

$the service fee must be separately designated from the selling price of the vehicle and from any other taxes, fees or charges; and

$dealers must disclose in any advertisement that a document service fee of up to $35 may be added to the sale price of a vehicle.

This bill is null and void if HB 2969 is not ratified by the voters by January 1, 2003.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  There are 15‑50 documents to be prepared for each vehicle.  Washington is the only state in the union that does not allow a document service fee.  There is a lot of flexibility and public interest in this bill.

Testimony Against:  None.

Testified:  Jim Boldt, Washington Auto Dealers Association, (pro).