SENATE BILL REPORT

ESHB 2940

BYHouse Committee on Transportation (originally sponsored by Representatives R. Meyers, S. Wilson and Zellinsky)

Pertaining to vehicle dealer documentary service fees.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 19, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Bender, Benitz, DeJarnatt, Hansen, McMullen, Madsen, Murray, Nelson, Patrick, Sellar.

Senate Staff:Louise Bray Sandison (786-7322)

                  February 20, 1990

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 19, 1990

BACKGROUND:

Motor vehicle dealers perform a variety of services for their customers, including transferring title and licensing of the vehicle in addition to facilitating completion of financing arrangements.

Motor vehicle dealers are prohibited from charging a separate fee for these services.

SUMMARY:

Motor vehicle dealers are authorized to charge up to $25 per vehicle sale or lease for the following documentary services:  licensing, registration, title verification, title transfer, perfecting title, releasing or satisfying a lien or other security interest.  The documentary service fee, for purposes of the Retail Installment Sales Act, is not a service charge as defined in that act.  Dealers must disclose in any advertisement that a documentary service fee of up to $25 may be added to the sale price.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

A technical change is made to correct a drafting error.

Senate Committee - Testified: Jim Boldt, Washington Auto Dealers; Heather Hamilton, DOL