HOUSE BILL REPORT

SHB 1883

BYHouse Committee on Transportation (originally sponsored by Representatives Walk and Prince)

Adjusting the scope of vehicle dealer regulations.

House Committe on Transportation

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (18)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Betrozoff, Cantwell, Cooper, Doty, Fisher, Fox, Gallagher, Heavey, Jones, Meyers, D. Sommers, Sutherland, Vekich, J. Williams, K. Wilson and Zellinsky.

House Staff:Brad Lovaas (786-7307)

AS PASSED HOUSE FEBRUARY 13, 1988

BACKGROUND:

In 1986 the Legislature revised many of the requirements of vehicle dealers.  The significant changes came in the form of increased requirements upon dealers with respect to place of business, and a better definition of who is required to be a licensed dealer.  One requirement states that if you sell more than five vehicles in a year or are involved in dealer activities, you are required to get a dealer's license.

An exemption was created in both the dealer definition and licensing requirements sections allowing financial institutions to sell vehicles.

Prior to the 1986 law, financial institutions had been authorized to sell vehicles which are foreclosed upon or repossessed.

SUMMARY:

The definition of dealer activity is clarified, and the brokering of new vehicles in this state is prohibited.

Language is added that clarifies that financial institutions may continue to sell their own vehicles and repossessions.

EFFECT OF SENATE AMENDMENT(S):  Language is clarified that financial institutions may also cooperate in dealer leases.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jim Boldt, Washington Auto Dealers.

House Committee - Testified Against:      Jim Byrne, Washington Credit Union League.

House Committee - Testimony For:    This is a clarification of what was intended in the 1986 law.  Financial institutions are given authority they had prior to that change.

House Committee - Testimony Against:      Cooperation is restricted between credit unions and dealers.

VOTE ON FINAL PASSAGE:

      Yeas 94; Excused 4

Excused:    Representatives Allen, Fuhrman, Hankins, Williams B