AN ACT Relating to possessory liens on motor vehicles that an auction company stores; amending RCW 46.70.330; creating a new section; and providing an effective date.

(b) Sell only to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state; or

(c) Sell a motor vehicle belonging to the United States government, the state of Washington, or a political subdivision to nonlicensed persons as may be required by the contracting public agency. However, a publicly owned "wrecked vehicle" as defined in RCW 46.80.010 may be sold to motor vehicle dealers and vehicle wreckers licensed under Title 46 RCW by the state of Washington or licensed by any other state.

(2) If the wholesale motor vehicle auction dealer knows that a vehicle is a "wrecked vehicle" as defined by RCW 46.80.010, the dealer must disclose this fact on the bill of sale.

(3) A wholesale motor vehicle auction dealer that makes advances for freight, storage, services, supplies, or labor for services on a motor vehicle at the request of the owner or lawful possessor of the motor vehicle has a lien on the motor vehicle in the possession of the wholesale motor vehicle auction dealer for the reasonable or agreed charges for labor, materials, or services of the wholesale motor vehicle auction dealer, and the wholesale motor vehicle auction dealer may retain possession of the motor vehicle until the charges are paid.

(4)(a) Subject to the requirements of (b) of this subsection, the wholesale motor vehicle auction dealer may title the motor vehicle in the name of:

(i) The wholesale motor vehicle auction dealer, if the motor vehicle has remained unclaimed on the auction company's premises for more than thirty days;

(ii) The insurance company that directs the wholesale motor vehicle auction dealer to take possession of the motor vehicle; or

(iii) An organization with an exemption from taxation under section 501(c)(3) of the internal revenue code that directs the auction company to take possession of the motor vehicle.

(b) An owner of a motor vehicle under this section must be notified by the wholesale motor vehicle auction dealer that the owner's vehicle will be retitled at least thirty days before the wholesale motor vehicle auction dealer retitles the motor vehicle. A failure to respond is deemed an affirmative response and the retitling process may proceed.

(5) For the purposes of this subsection, a wholesale motor vehicle auction dealer means an entity: (a) That operates throughout the United States; (b) that qualifies as a vehicle dealer under RCW 46.70.021; and (c) whose primary activity of which, in this state, consists of disposing of totaled motor vehicles.

NEW SECTION. Sec. 2. This act applies to motor vehicles that a wholesale motor vehicle auction dealer possesses on or after the effective date of this section, and that the wholesale motor vehicle auction dealer stores before, on, or after the effective dates of this section.