HOUSE BILL REPORT
SHB 1955
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Passed House:
March 9, 2007
Title: An act relating to establishing licensing requirements for certain vehicle dealers.
Brief Description: Establishing licensing requirements for certain vehicle dealers.
Sponsors: By House Committee on Transportation (originally sponsored by Representatives Wood, B. Sullivan, Kristiansen, Condotta, Crouse and Lovick).
Brief History:
Transportation: 2/19/07, 3/1/07 [DPS].
Floor Activity:
Passed House: 3/9/07, 96-0.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON TRANSPORTATION
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 26 members: Representatives Clibborn, Chair; Flannigan, Vice Chair; Jarrett, Ranking Minority Member; Schindler, Assistant Ranking Minority Member; Appleton, Armstrong, Campbell, Curtis, Dickerson, Eddy, Ericksen, Hailey, Hankins, Hudgins, Kristiansen, Lovick, Rodne, Rolfes, Sells, Simpson, Springer, B. Sullivan, Takko, Upthegrove, Wallace and Wood.
Staff: Teresa Berntsen (786-7301).
Background:
The Department of Licensing (DOL) licenses and regulates persons and businesses that sell
motor vehicles, off-road vehicles, and snowmobiles. There are several categories of dealer
licenses, including off-road vehicle dealers, snowmobile dealers, and miscellaneous vehicle
dealers.
Off-Road Vehicle License
Businesses that sell motorized vehicles, other than snowmobiles or watercraft, intended for
use on nonhighway roads, trails, or other natural terrain must hold either an off-road vehicle
license or a miscellaneous vehicle dealer license. The annual fee for the off-road vehicle
dealer license is $25.
Snowmobile Dealer License
Businesses that sell motorized snowmobiles or all-terrain vehicles must hold a snowmobile
dealer license. The annual fee for the snowmobile dealer license is $25.
Miscellaneous Vehicle Dealer License
Businesses that sell motorcycles, off-road vehicles, trailers, and any other vehicle other than a
motor vehicle, mobile home, or travel trailer must hold a miscellaneous vehicle dealer
license. The fee for the original miscellaneous vehicle dealer license is $750, and the annual
renewal fee is $250.
When applying to the DOL for a miscellaneous vehicle dealer license, applicants must
provide a $5,000 surety bond; provide information on business, financial, and criminal
history; provide information on the vehicles to be sold; and maintain an established place of
business.
The DOL may deny, suspend, or revoke a miscellaneous vehicle dealer license, or assess
monetary penalties, for reasons outlined in state law including: failing to honor written
service agreements, making illegal vehicle sales, certain criminal history, falsifying
information, or improper record keeping.
Summary of Substitute Bill:
The off-road vehicle and snowmobile vehicle dealer licenses are removed. Persons or
businesses that sell off-road vehicles or snowmobiles must hold a miscellaneous vehicle
dealer license. The DOL is authorized to suspend a miscellaneous vehicle dealer license for
nonpayment of child support.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) This bill will place off-road vehicle and snowmobile dealers in a category of
vehicle dealers that has more licensing requirements and oversight. This is a consumer
protection issue to deal with an influx of imported, poorly-made off-road vehicles. These
off-road vehicles often have no warranties, and riders cannot find replacement parts.
(Opposed) None.
Persons Testifying: Representative Wood, prime sponsor; and John Jabusch, Washington State Motorsports Dealers Association.