SENATE BILL REPORT

 

 

                                   SHB 1013

 

 

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives P. King, Anderson, Jacobsen, Todd and K. Wilson) 

 

 

Including motorcycles in the Lemon Law.

 

 

House Committe on Commerce & Labor

 

 

Senate Committee on Economic Development & Labor

 

      Senate Hearing Date(s):March 22, 1989

 

      Senate Staff:Charles A. Woods (786-7452)

 

 

                             AS OF MARCH 15, 1989

 

BACKGROUND:

 

By enacting Chapter 240, Section 5, Laws of 1983, the Legislature enacted a "lemon law" governing enforcement of warranties on new motor vehicles.  "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, motorcycles were excluded.

 

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:

 

Motorcycles with an 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.

 

Appropriation:    none

 

Revenue:    yes

 

Fiscal Note:      available