S-0536.1 _______________________________________________
SENATE BILL 5246
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State of Washington 56th Legislature 1999 Regular Session
By Senators Kline, Costa, Patterson, Fraser and McAuliffe
Read first time 01/18/1999. Referred to Committee on Transportation.
AN ACT Relating to the amount of bond for motor vehicle dealers; and amending RCW 46.70.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 46.70.070 and 1996 c 194 s 2 are each amended to read as follows:
(1) Before issuing a vehicle dealer's license, the department shall require the applicant to file with the department a surety bond in the amount of:
(a)
((Fifteen)) Forty-five thousand dollars for motor vehicle
dealers;
(b) Thirty thousand dollars for mobile home, park trailer, and travel trailer dealers: PROVIDED, That if such dealer does not deal in mobile homes or park trailers such bond shall be fifteen thousand dollars;
(c) Five thousand dollars for miscellaneous dealers,
running to the state, and executed by a surety company authorized to do business in the state. Such bond shall be approved by the attorney general as to form and conditioned that the dealer shall conduct his business in conformity with the provisions of this chapter.
Any retail purchaser, consignor who is not a motor vehicle dealer, or a motor vehicle dealer who has purchased from, sold to, or otherwise transacted business with a wholesale dealer, who has suffered any loss or damage by reason of any act by a dealer which constitutes a violation of this chapter shall have the right to institute an action for recovery against such dealer and the surety upon such bond. However, under this section, motor vehicle dealers who have purchased from, sold to, or otherwise transacted business with wholesale dealers may only institute actions against wholesale dealers and their surety bonds. Successive recoveries against said bond shall be permitted, but the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond. Upon exhaustion of the penalty of said bond or cancellation of the bond by the surety the vehicle dealer license shall automatically be deemed canceled.
(2) The bond for any vehicle dealer licensed or to be licensed under more than one classification shall be the highest bond required for any such classification.
(3) Vehicle dealers shall maintain a bond for each business location in this state and bond coverage for all temporary subagencies.
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