WSR 09-24-034



[ Filed November 23, 2009, 1:34 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-20-001.

Title of Rule and Other Identifying Information: Chapter 46.70 RCW, Dealers and manufacturers.

Hearing Location(s): 2424 Bristol Court S.W., 3rd Floor, C/R 346, Olympia, WA 98502, on January 13, 2010, at 9:30 a.m.

Date of Intended Adoption: February 25, 2010.

Submit Written Comments to: Mary Morris, P.O. Box 9039, Olympia, WA 98507, e-mail, fax (360) 586-6703, by December 30, 2009.

Assistance for Persons with Disabilities: Contact Cathy Bently by December 30, 2009, TTY (360) 664-8885 or (360) 902-3600.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: One amendment will help ensure that temporary subagency licenses will be issued timely. Another amendment would require that the location of a sale be reflected in documents of sale.

Reasons Supporting Proposal: Enforce the law requiring that a temporary subagency license must be issued prior to the sale, and allowing for at least one day between any two offsite sales.

Statutory Authority for Adoption: RCW 46.70.160.

Statute Being Implemented: Not applicable.

Rule is not necessitated by federal law, federal or state court decision.

Name of Agency Personnel Responsible for Drafting and Implementation: Charles R. Coach, 2424 Bristol Court S.W., Olympia, WA 98507, (360) 664-6453; and Enforcement: Daniel N. Devoe, 2424 Bristol Court S.W., Olympia, WA 98507, (360) 664-6451.

No small business economic impact statement has been prepared under chapter 19.85 RCW. No impact to small business.

A cost-benefit analysis is not required under RCW 34.05.328. No financial impact.

November 23, 2009

Walt Fahrer

Rules Coordinator


AMENDATORY SECTION(Amending WSR 04-16-090, filed 8/3/04, effective 9/3/04)

WAC 308-66-140   Place of business and places of business.   Which business names and locations do I need to license?

(1) A dealer must inform the department in writing of each and every:

(a) Name under which the dealer does business, and

(b) Location at which the dealer does business.

The dealer must inform the department in writing within ten days of any addition, deletion or change in the name or location. The dealer must apply for a temporary subagency license at least ten days prior to the sales event that requires that license. There must be at least one day with no sales activity between any two ten day temporary permit periods.

(2) A dealer shall designate one name and one location as the principal name and principal place of business.

(a) All other names under which the dealer does business shall be designated and licensed as subagencies of that dealership;

(b) All other locations that are physically and geographically separated from the principal place of business shall be designated and licensed as subagencies of that dealership;

(c) If a dealer is required to obtain a subagency license under (2)(b) of this section, the dealer shall not be required to obtain an additional subagency license under (2)(a) of this section, unless the dealer does business under more than one name at that subagency location;

(d) The department will not require a subagency license for a name solely due to the use of a ".com" or other URL extension in an internet address; or because a dealership uses a derivative of its licensed "doing business as" name for its internet address. The web site must clearly display the licensed "doing business as" name.

(3) If the dealer ceases to maintain "an established place of business" at that subagency location, the director shall suspend, revoke and/or refuse to renew a subagency license of a dealership.

(4) All temporary subagencies must be covered by the bond of the dealer's principal place of business.

(5) A vehicle dealer, whether franchised or nonfranchised, that is unable to locate the dealer's used vehicle sales facilities adjacent to or at the established place of business need not obtain and hold a subagency license if:

(a) The vehicle sales lot is contained within the same city block, or

(b) Is directly across the street, or

(c) Is within sight, and

(d) Its location is zoned properly, and

(e) The dealer bond covers the sales lot.

(6) If the sales lot referred to in section 5 is in sight of the principal place of business, no sign is required at that sales lot.

(7) The department may require that a dealer provide evidence that each place of business conforms to all zoning and land use ordinances.

(8) Each and every subagency license of a dealership shall automatically be deemed ((cancelled)) canceled upon the termination, for whatever reason, of the principal license of that dealership.

(9) No license shall be issued to any applicant for a vehicle dealer or vehicle manufacturer license under a name that is the same as that of any dealer or manufacturer holding a current license issued pursuant to chapter 46.70 RCW.

(10) The sign at the certified location and the business telephone listing must reflect the "doing business as" (dba) name.

[Statutory Authority: RCW 46.70.160. 04-16-090, 308-66-140, filed 8/3/04, effective 9/3/04; 98-20-039, 308-66-140, filed 9/30/98, effective 10/31/98. Statutory Authority: RCW 46.70.160 and 46.70.023. 91-20-057, 308-66-140, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 1. 87-01-016 (Order DLR 115), 308-66-140, filed 12/9/86; Order MV 170, 308-66-140, filed 7/16/73; Order 69-1, 308-66-140, filed 8/28/69; Order 2, 308-66-140, filed 1/29/68.]

AMENDATORY SECTION(Amending WSR 98-20-039, filed 9/30/98, effective 10/31/98)

WAC 308-66-170   Denial, suspension or revocation of license.   (1) When the license of a vehicle dealer has been suspended or revoked, the department shall post a closure notice at or near the principal entry to the place of business. Such notice shall include a statement that the dealership is closed as to the sale of vehicles because of the suspension or revocation of a license. In case of a suspension, the duration of the suspension shall be stated on the notice. A dealer shall not remove any closure notice without permission from an authorized representative of the director.

(2) Practices inimical to the health and safety of the citizens of the state of Washington pursuant to RCW 46.70.101 (1)(b)(viii) and (2)(k) shall include, but not be limited to, failure to comply with the following federal and state standards, as presently constituted and as hereafter amended, amplified or revised, pertaining to the construction and safety of vehicles:

(a) "Federal motor vehicle safety standards," 49 Code of Federal Regulations, part 571;

(b) "Control of air pollution from new motor vehicles and new motor vehicle engines," 40 Code of Federal Regulations, part 85;

(c) "Vehicle lighting and other equipment," chapter 46.37 RCW;

(d) Rules and regulations adopted by the Washington state patrol pursuant to RCW 46.37.005, TITLE 204 WAC;

(e) "Mobile/manufactured homes, commercial coaches, park trailers, and recreational vehicles," chapter 296-150B WAC;

(f) Housing and Community Development Act of 1974, Public Law 93-383, Title VI Mobile home construction and safety standards, 603, 604, 610, 615, 616, 617.

(3) The department may deny a temporary subagency license if it is not applied for at least ten days prior to the sales event that requires the license.

[Statutory Authority: RCW 46.70.160. 98-20-039, 308-66-170, filed 9/30/98, effective 10/31/98; 96-19-025, 308-66-170, filed 9/9/96, effective 10/10/96. Statutory Authority: RCW 46.70.160 and 46.70.101. 91-20-057, 308-66-170, filed 9/24/91, effective 10/25/91. Statutory Authority: RCW 46.70.160 and 1986 c 199 1. 87-01-016 (Order DLR 115), 308-66-170, filed 12/9/86; Order MV-446, 308-66-170, filed 9/16/77; Order MV 170, 308-66-170, filed 7/16/73; Order 2, 308-66-170, filed 1/29/68.]

Washington State Code Reviser's Office