SSB 5050 -
By Committee on Commerce & Labor
ADOPTED 04/09/2007
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 19.118.041 and 1998 c 298 s 4 are each amended to
read as follows:
(1) If the manufacturer, its agent, or the new motor vehicle dealer
is unable to conform the new motor vehicle to the warranty by repairing
or correcting any nonconformity after a reasonable number of attempts,
the manufacturer, within forty calendar days of a consumer's written
request to the manufacturer's corporate, dispute resolution, zone, or
regional office address shall, at the option of the consumer, replace
or repurchase the new motor vehicle.
(a) The replacement motor vehicle shall be identical or reasonably
equivalent to the motor vehicle to be replaced as the motor vehicle to
be replaced existed at the time of original purchase or lease,
including any service contract, undercoating, rustproofing, and factory
or dealer installed options. Where the manufacturer supplies a
replacement motor vehicle, the manufacturer shall be responsible for
sales tax, license, registration fees, and refund of any incidental
costs. Compensation for a reasonable offset for use shall be paid by
the consumer to the manufacturer in the event that the consumer accepts
a replacement motor vehicle.
(b) When repurchasing the new motor vehicle, the manufacturer shall
refund to the consumer the purchase price, all collateral charges, and
incidental costs, less a reasonable offset for use. When repurchasing
the new motor vehicle, in the instance of a lease, the manufacturer
shall refund to the consumer all payments made by the consumer under
the lease including but not limited to all lease payments, trade-in
value or inception payment, security deposit, all collateral charges
and incidental costs less a reasonable offset for use. The
manufacturer shall make such payment to the lessor and/or lienholder of
record as necessary to obtain clear title to the motor vehicle and upon
the lessor's and/or lienholder's receipt of that payment and payment by
the consumer of any late payment charges, the consumer shall be
relieved of any future obligation to the lessor and/or lienholder.
(c) The reasonable offset for use shall be computed by multiplying
the number of miles that the vehicle traveled directly attributable to
use by the consumer during the time between the original purchase,
lease, or in-service date and the date beginning the first attempt to
diagnose or repair a nonconformity which ultimately results in the
repurchase or replacement of the vehicle multiplied times the purchase
price, and dividing the product by one hundred twenty thousand, except
in the case of a motor home, in which event it shall be divided by
ninety thousand. However, the reasonable offset for use calculation
total for a motor home is subject to modification by the board by
decreasing or increasing the offset total up to a maximum of one-third
of the offset total. The board may modify the offset total in those
circumstances where the board determines that the wear and tear on
those portions of the motor home designated, used, or maintained
primarily as a mobile dwelling, office, or commercial space are
significantly greater or significantly less than that which could be
reasonably expected based on the mileage attributable to the consumer's
use of the motor home. Except in the case of a motor home, where a
manufacturer repurchases or replaces a vehicle solely due to
accumulated days out of service by reason of diagnosis or repair of one
or more nonconformities, "the number of miles that the vehicle traveled
directly attributable to use by the consumer" shall be limited to the
period between the original purchase, lease, or in-service date and the
date of the fifteenth cumulative calendar day out of service. Where
the consumer is a second or subsequent purchaser, lessee, or transferee
of the motor vehicle and the consumer selects repurchase of the motor
vehicle, "the number of miles that the vehicle traveled" directly
attributable to use by the consumer shall be ((calculated from))
limited to the period between the date of purchase ((or)), lease by, or
transfer to the consumer and the date of the consumer's initial attempt
to obtain diagnosis or repair of a nonconformity which ultimately
results in the repurchase or replacement of the vehicle or which adds
to thirty or more cumulative calendar days out of service. Where the
consumer is a second or subsequent purchaser, lessee, or transferee of
the motor vehicle and the consumer selects replacement of the motor
vehicle, "the number of miles that the vehicle traveled" directly
attributable to use by the consumer shall be calculated from the date
of the original purchase, lease, or in-service date and the first
attempt to diagnose or repair a nonconformity which ultimately results
in the replacement of the vehicle. Except in the case of a motor home,
where the consumer is a second or subsequent purchaser, lessee, or
transferee of the motor vehicle and the manufacturer replaces the
vehicle solely due to accumulated days out of service by reason of
diagnosis or repair of one or more nonconformities, "the number of
miles that the vehicle traveled" directly attributable to use by the
consumer shall be calculated from the date of the original purchase,
lease, or in service date and the date of the fifteenth cumulative
calendar day out of service.
(d) In the case of a motor vehicle that is a motor home, where a
manufacturer repurchases or replaces a motor home from the first
purchaser, lessee, or transferee or from the second or subsequent
purchaser, lessee, or transferee solely due to accumulated days out of
service by reason of diagnosis or repair of one or more
nonconformities, "the number of miles that a motor home traveled
directly attributable to use by the consumer" shall be limited to the
period between the original purchase, lease, or in-service date and the
date of the thirtieth cumulative calendar day out-of-service.
(2) Reasonable number of attempts, except in the case of a new
motor vehicle that is a motor home acquired after June 30, 1998, shall
be deemed to have been undertaken by the manufacturer, its agent, or
the new motor vehicle dealer to conform the new motor vehicle to the
warranty within the warranty period, if: (a) The same serious safety
defect has been subject to diagnosis or repair two or more times, at
least one of which is during the period of coverage of the applicable
manufacturer's written warranty, and the serious safety defect
continues to exist; (b) the same nonconformity has been subject to
diagnosis or repair four or more times, at least one of which is during
the period of coverage of the applicable manufacturer's written
warranty, and the nonconformity continues to exist; or (c) the vehicle
is out of service by reason of diagnosis or repair of one or more
nonconformities for a cumulative total of thirty calendar days, at
least fifteen of them during the period of the applicable
manufacturer's written warranty. For purposes of this subsection, the
manufacturer's written warranty shall be at least one year after the
date of the original delivery to the consumer of the vehicle or the
first twelve thousand miles of operation, whichever occurs first. A
new motor vehicle is deemed to have been "subject to diagnose or
repair" when a consumer presents the new motor vehicle for warranty
service at a service and repair facility authorized, designated, or
maintained by a manufacturer to provide warranty services or a facility
to which the manufacturer or an authorized facility has directed the
consumer to obtain warranty service. A new motor vehicle has not been
"subject to diagnose or repair" if the consumer refuses to allow the
facility to attempt or complete a recommended warranty repair, or
demands return of the vehicle to the consumer before an attempt to
diagnose or repair can be completed.
(3)(a) In the case of a new motor vehicle that is a motor home
acquired after June 30, 1998, a reasonable number of attempts shall be
deemed to have been undertaken by the motor home manufacturers, their
respective agents, or their respective new motor vehicle dealers to
conform the new motor vehicle to the warranty within the warranty
period, if: (i) The same serious safety defect has been subject to
diagnosis or repair one or more times during the period of coverage of
the applicable motor home manufacturer's written warranty, plus a final
attempt to repair the vehicle as provided for in (b) of this
subsection, and the serious safety defect continues to exist; (ii) the
same nonconformity has been subject to repair three or more times, at
least one of which is during the period of coverage of the applicable
motor home manufacturer's written warranty, plus a final attempt to
repair the vehicle as provided for in (b) of this subsection, and the
nonconformity continues to exist; or (iii) the vehicle is out of
service by reason of diagnosis or repair of one or more nonconformities
for a cumulative total of sixty calendar days aggregating all motor
home manufacturer days out of service, and the motor home manufacturers
have had at least one opportunity to coordinate and complete an
inspection and any repairs of the vehicle's nonconformities after
receipt of notification from the consumer as provided for in (c) of
this subsection. For purposes of this subsection, each motor home
manufacturer's written warranty must be at least one year after the
date of the original delivery to the consumer of the vehicle or the
first twelve thousand miles of operation, whichever occurs first.
(b) In the case of a new motor vehicle that is a motor home, after
one attempt has been made to repair a serious safety defect, or after
three attempts have been made to repair the same nonconformity, the
consumer shall give written notification of the need to repair the
nonconformity to each of the motor home manufacturers at their
respective corporate, zone, or regional office addresses to allow the
motor home manufacturers to coordinate and complete a final attempt to
cure the nonconformity. The motor home manufacturers each have fifteen
days, commencing upon receipt of the notification, to respond and
inform the consumer of the location of the facility where the vehicle
will be repaired. If the vehicle is unsafe to drive due to a serious
safety defect, or to the extent the repair facility is more than one
hundred miles from the motor home location, the motor home
manufacturers are responsible for the cost of transporting the vehicle
to and from the repair facility. The motor home manufacturers have a
cumulative total of thirty days, commencing upon delivery of the
vehicle to the designated repair facility by the consumer, to conform
the vehicle to the applicable motor home manufacturer's written
warranty. This time period may be extended if the consumer agrees in
writing. If a motor home manufacturer fails to respond to the consumer
or perform the repairs within the time period prescribed, that motor
home manufacturer is not entitled to a final attempt to cure the
nonconformity.
(c) In the case of a new motor vehicle that is a motor home, if the
vehicle is out of service by reason of diagnosis or repair of one or
more nonconformities by the motor home manufacturers, their respective
agents, or their respective new motor vehicle dealers for a cumulative
total of thirty or more days aggregating all motor home manufacturer
days out of service, the consumer shall so notify each motor home
manufacturer in writing at their respective corporate, zone, or
regional office addresses to allow the motor home manufacturers, their
respective agents, or their respective new motor vehicle dealers an
opportunity to coordinate and complete an inspection and any repairs of
the vehicle's nonconformities. The motor home manufacturers have
fifteen days, commencing upon receipt of the notification, to respond
and inform the consumer of the location of the facility where the
vehicle will be repaired. If the vehicle is unsafe to drive due to a
serious safety defect, or to the extent the repair facility is more
than one hundred miles from the motor home location, the motor home
manufacturers are responsible for the cost of transporting the vehicle
to and from the repair facility. Once the buyer delivers the vehicle
to the designated repair facility, the inspection and repairs must be
completed by the motor home manufacturers either (i) within ten days or
(ii) before the vehicle is out of service by reason of diagnosis or
repair of one or more nonconformities for sixty days, whichever time
period is longer. This time period may be extended if the consumer
agrees in writing. If a motor home manufacturer fails to respond to
the consumer or perform the repairs within the time period prescribed,
that motor home manufacturer is not entitled to at least one
opportunity to inspect and repair the vehicle's nonconformities after
receipt of notification from the buyer as provided for in this
subsection (3)(c).
(4) No new motor vehicle dealer may be held liable by the
manufacturer for any collateral charges, incidental costs, purchase
price refunds, or vehicle replacements. Manufacturers shall not have
a cause of action against dealers under this chapter. Consumers shall
not have a cause of action against dealers under this chapter, but a
violation of any responsibilities imposed upon dealers under this
chapter is a per se violation of chapter 19.86 RCW. Consumers may
pursue rights and remedies against dealers under any other law,
including chapters 46.70 and 46.71 RCW. Manufacturers and consumers
may not make dealers parties to arbitration board proceedings under
this chapter."
EFFECT: Clarifies that the calculation when a manufacturer
repurchases or replaces a vehicle solely due to accumulated days out of
service is different for a motor home.
Provides that, for a motor home, when a manufacturer repurchases or
replaces a motor home from either the first or a subsequent owner
solely due to accumulated days out of service, "the number of miles
that a motor home traveled directly attributable to use by the
consumer" shall be limited to the period between the original purchase,
lease, or in-service date and the date of the 30th cumulative calendar
day out-of-service (instead of the 15th cumulative calendar day out-of-
service).