On page 9, after line 39, insert the following:

NEW SECTION.  Sec. 7.  "A new section is added to chapter 46.70 RCW to read as follows:

(1)(a) The department shall issue a license to a person, firm, association, corporation, or trust to act as a retail vehicle dealer, as defined in RCW 46.70.011, if the person, firm, association, corporation, or trust meets the requirements of this section.

(b) This section is an alternative to the license application process and requirements that otherwise apply to applicants for a motor vehicle dealer license under this chapter, and is available only for applicants that meet the requirements of this section.

(2) To be eligible for a license as a retail vehicle dealer under this section, a person, firm, association, corporation, or trust must:

(a) Have been licensed as a wholesale vehicle dealer by the department for at least five years preceding the effective date of this section;

(b) Have maintained a physical presence in this state for the entire five-year period in (a) of this subsection; and

(c) Have purchased and sold a majority of the vehicles that the person, firm, association, corporation, or trust has purchased and sold within the five-year period in (a) of this subsection from and to other Washington licensed vehicle dealers.

(3) To be eligible for a license under this section, a person, firm, association, corporation, or trust must:

(a) Submit an application to the department in accordance with RCW 46.70.031;

(b) Meet the qualifications for a motor vehicle dealer license under this chapter, except that the applicant is not required to comply with RCW 46.70.023(9);

(c) Have office facilities in a commercial building within this state, with no more than two other vehicle dealers in the same building;

(d) List all storage facilities for inventory with the department;

(e) Meet all zoning and land use ordinances;

(f) Maintain a telecommunications system; and

(g) Possess an exterior sign visible from the nearest street that identifies the business name and the nature of the business.

(4) If a retail vehicle dealer licensed under this section shares a location with another retail vehicle dealer or dealers, all records, office facilities, and inventory, if any, must be physically segregated and clearly identified.

(5)(a) A license issued under this section is subject to all requirements of this chapter that apply to motor vehicle dealers, except as otherwise provided in this section.

(b) A license issued pursuant to this section may not become effective before July 1, 2019.

(6) As used in this section, "wholesale vehicle dealer" means a vehicle dealer who buys vehicles from or sells vehicles to other Washington licensed vehicle dealers."

Renumber the remaining sections consecutively, correct any internal references accordingly, and correct the title.

On page 10, after line 6, insert the following:

NEW SECTION.  Sec. 9.  "Section 7 of this act takes effect March 1, 2019."

Correct the title.

EFFECT: Establishes that, beginning four months before the wholesale vehicle dealer license category is eliminated, existing wholesale vehicle dealer licensees meeting the following requirements may apply for and qualify for a retail vehicle dealer license without being open during normal business hours, maintaining display facilities, or maintaining a business telephone listing in the local directory (which are requirements for a retail vehicle dealer license but not for a wholesale vehicle dealer license):

(1) The applicant has been licensed as a wholesale vehicle dealer for the previous five years;

(2) The applicant has had a physical presence in the state for the previous five years;

(3) The applicant has sold and purchased a majority of the vehicles that the applicant has sold and purchased within the previous five years to and from other Washington licensed vehicle dealers; and

(4) The applicant meets the commercial office facility requirements that currently apply to wholesale vehicle dealers, which include: (a) Having office facilities in a commercial building within this state, with no more than two other vehicle dealers in the same building; (b) listing all storage facilities for inventory with the department; (c) maintaining a telecommunications system; and (d) possessing an exterior sign visible from the nearest street that identifies the business name and the nature of the business.