HOUSE BILL REPORT
HB 2430
BYRepresentatives P. King, Vekich, Walker, Prentice, Winsley, Jones and Kremen; by request of Attorney General
Revising provisions for motor vehicle warranties.
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; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, O'Brien, Prentice, Walker and Wolfe.
House Staff:Jim Kelley (786-7166)
AS REPORTED BY COMMITTEE ON COMMERCE & LABOR JANUARY 19, 1990
BACKGROUND:
In 1987, the Legislature made substantial changes in the law governing enforcement of warranties on new motor vehicles (the "lemon law"). The lemon law specifically exempts from its coverage vehicles purchased or leased by a business as a part of a fleet of 10 or more vehicles, larger trucks, and motorcycles.
One provision of the lemon law is that if a manufacturer or new motor vehicle dealer is unable to conform the vehicle to the warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the consumer may elect to receive a replacement vehicle or to have the manufacturer or dealer repurchase the vehicle. In the case of a replacement, the consumer must pay to the manufacturer a reasonable offset for use. In the case of a repurchase, the manufacturer must refund the purchase price, all collateral charges, and incidental costs, less a reasonable offset for use. The reasonable offset for use is computed by multiplying the number of miles that the consumer was responsible for putting on the vehicle times the purchase price, and dividing the product by 100,000.
SUMMARY:
SUBSTITUTE BILL: New motorcycles that have an engine displacement of at least 750 cubic centimeters are covered by the lemon law.
The reasonable offset for use for a motorcycle is computed by multiplying the number of miles that the vehicle traveled before repurchase or replacement times the purchase price, and dividing the product by 25,000.
The definition of "manufacturer" is amended to clearly exclude any person engaged in the business of set-up of motorcycles as an agent of a new motor vehicle dealer who does not otherwise construct or assemble motorcycles.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The substitute bill amends existing statutory language. The original bill was drafted to amend previous statutory language. The substitute bill also makes three substantive changes to the original bill: 1) The minimum size requirement for coverage of motorcycles under the lemon law is increased from 700 cubic centimeters to 750 cubic centimeters; 2) The substitute bill clarifies that only new motorcycles are to be covered by the bill; and 3) The formula for calculating the reasonable offset for use for motorcycles is changed. In the original bill, the reasonable offset for use is arrived at by multiplying the number of miles that the vehicle traveled before repurchase or replacement times the purchase price, and dividing the product by 50,000. The formula in the substitute bill is the number of miles that the vehicle traveled before repurchase or replacement multiplied by the purchase price, and then divided by 25,000.
Fiscal Note: Requested January 13, 1990.
House Committee ‑ Testified For: Mike Grant and Dick Hubbard, Washington State Attorney General's Office.
House Committee - Testified Against: Dean Morgan, Motorcycle Industry Council.
House Committee - Testimony For: Motorcycles are getting more expensive. They are worth up to $15,000. The Attorney General's Office does get complaints about new motorcycles. Therefore, motorcycles should be covered by the lemon law.
House Committee - Testimony Against: The minimum size requirement for coverage of motorcycles under the lemon law should be increased from 700 to 750 cubic centimeters, in order to exclude off-road bikes. The bill should clearly indicate that only new motorcycles are to be covered. The reasonable offset for use should be adjusted to reflect the fact that owners of motorcycles usually do not drive as many miles as do car owners.