HOUSE BILL REPORT

HB 1013

BYRepresentatives P. King, Anderson, Jacobsen, Todd and K. Wilson 

Including motorcycles in the lemon law.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.

House Staff:Joan Elgee (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 21, 1989

BACKGROUND:

In 1983, the Legislature enacted a "lemon law" governing enforcement of warranties on new motor vehicles.  After a reasonable number of attempts to conform a vehicle to the warranty, a manufacturer was required to repurchase the vehicle. "Motor vehicle" was defined to mean automobiles, trucks, motorcycles, mopeds, and motor homes, which were used primarily for personal, noncommercial use.

In 1987, the Legislature made substantial modifications to the lemon law. Among other changes, consumers were given the right to choose replacement of the vehicle in addition to repurchase, and the attorney general was directed to contract with private entities to set up arbitration boards to settle disputes between manufacturers and consumers.  "Motor vehicle" as defined in the 1987 law means any self-propelled vehicle primarily designed for the transportation of persons or property over the highway. Motorcycles and trucks with 19,000 pounds or more gross vehicle weight are excluded, as are vehicles purchased or leased by a business as part of fleet of 10 or more vehicles.

Upon replacement or repurchase of a vehicle, the manufacturer is entitled to a "reasonable offset for use."  The offset is calculated by multiplying the number of miles that the vehicle traveled before the manufacturer's acceptance of the vehicle upon repurchase or replacement times the purchase price, and dividing the product by 100,000.

SUMMARY:

SUBSTITUTE BILL:  Motorcycles with a engine displacement of at least 700 cubic centimeters are added to the vehicles covered by the provisions governing enforcement of new motor vehicle warranties (the "lemon law").

The divisor for calculating the reasonable offset for use for a motorcycle is 50,000.

Persons engaged in the business of setup of motorcycles as an agent of a dealer who do not otherwise construct or assemble motorcycles are not manufacturers for purposes of the lemon law.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  A definition of motorcycle is added.  A reasonable offset for use formula for a motorcycle is added, with the divisor stated to be 50,000.  Persons who set up motorcycles as agents of dealers are excluded from the definition of manufacturer.

Fiscal Note:      Requested February 21, 1989.

House Committee ‑ Testified For:    Representative Paul King, Steve Redenbaugh; Robin Torner, ABATE of Washington.

House Committee - Testified Against:      Dean Morgan, Motorcycle Industry Council; Mike Liebold, Washington State Motorcycle Dealers Association.

House Committee - Testimony For:    As a matter of fairness, purchasers of new motorcycles should have the same rights as new car purchasers. The point of sale for motorcycle and car purchases is the same.  A consumer's investment in a motorcycle can be significant.

House Committee - Testimony Against:      The lemon law is designed to fit cars and is inappropriate for motorcycles.  The manufacturer/dealer/consumer relationship is different in the motorcycle setting and the lifetime of a motorcycle is shorter than that for a car.  No need for a motorcycle lemon law has been shown.