SENATE BILL REPORT
SB 5968
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 of February 9, 2007
Title: An act relating to expanding lemon law coverage to out-of-state consumers.
Brief Description: Expanding lemon law coverage to out-of-state consumers.
Sponsors: Senators Kilmer, Delvin and Marr.
Brief History:
Committee Activity: Consumer Protection & Housing:
SENATE COMMITTEE ON CONSUMER PROTECTION & HOUSING
Staff: Vanessa Firnhaber-Baker (786-7471)
Background: The Motor Vehicle Warranties Act, commonly called the Lemon law, establishes
the rights and responsibilities for consumers and manufacturers of defective new or nearly new
vehicles. There are three definitions of a lemon: (1) a vehicle with a serious safety defect that
the manufacturer has unsuccessfully attempted to repair at least two times; (2) a vehicle with
some other substantial defect that the manufacturer has unsuccessfully attempted to diagnose or
repair at least four times; or (3) a vehicle that has been out of service for 30 cumulative calendar
days with at least 15 of those days occurring during the warranty period.
If a vehicle is a "lemon," then the manufacturer must either replace or repurchase the vehicle,
whichever remedy the consumer chooses.
The lemon law applies to vehicles that the consumer: (1) purchased or leased in Washington; and
(2) initially registered in Washington.
Vehicle dealers and lessors must collect a three dollar fee for the lemon law arbitration account
from each consumer upon the purchase or lease of a new vehicle. The dealer or lessor then
forwards that fee to the Department of Licensing at the time of the title application.
Summary of Bill: The lemon law applies to vehicles purchased or leased in Washington
regardless of what state the vehicle is initially registered in.
The three dollar lemon law arbitration fee that is collected by vehicle dealers and lessors at the
time of sale or lease must be forwarded to the DOL within 45 days of receiving the fee when the
purchaser or lessee is from out-of-state.
.
Appropriation: None.
Fiscal Note: Not requested.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.