SENATE BILL REPORT

SHB 1883

BYHouse Committee on Transportation (originally sponsored by Representatives Walk and Prince)

Adjusting the scope of vehicle dealer regulations.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 23, 1988; February 24, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Bender, DeJarnatt, McMullen, Metcalf, Owen, Sellar.

Senate Staff:Brad Lovaas (786-7307)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 24, 1988

BACKGROUND:

In 1986, the Legislature revised many of the requirements of vehicle dealers.  The significant changes came in the form of increased requirements upon dealers with respect to place of business and a better definition of who is required to be a licensed dealer.  One requirement states that if you sell more than five vehicles in a year or are involved in dealer activities, you are required to get a dealer's license.

An exemption was created in both the dealer definition and licensing requirements sections allowing financial institutions to sell vehicles.

Prior to the 1986 law, financial institutions had been authorized to sell vehicles which are foreclosed upon or repossessed.

SUMMARY:

The definition of dealer activity is clarified, and the brokering of new vehicles in this state is prohibited.

Language is added that clarifies that financial institutions may continue to sell their own vehicles, repossessions, and vehicles at the end of a lease period.

Language is added to ascertain that financial institutions may cooperate with dealers licensed in Washington in organizing, promoting and financing dealer sales.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Language is clarified that financial institutions may also cooperate in dealer leases.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one