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WSIADA
Legislative Summary
2008
Session
This session there were lots of news reports about a variety
of issues; but there was nothing
reported about a very high priority bill for WSIADA. However,
the Association was watching out for
your best interest in future sales
of used cars in Washington State. Hopefully, you received the
Call to Action from WSIADA
regarding SB 6768, an act relating
to used vehicle purchases, and responded accordingly.
SB 6768 would have dramatically
changed your business practices
if it had been enacted into law.
Please familiarize yourself (and
sales staff too) with its provisions
now and discuss it with your legislators
running for reelection…because
it could be re-introduced next
session.
It would require before
executing a sales contract that
you disclose in writing the description
and price of each add-on item the buyer
is charged for, including service
contracts, insurance products, debt cancellation agreements, theft
deterrent devices, and contract
cancellation option agreements.
If
you arrange financing, the
dealer may not state or imply that
the financing offered is the best
that the buyer qualifies for. Dealers
arranging financing must also disclose
in writing:
The
amount of the installment payments if add-on items are not
included, and
the amount of the payments if add-ons are included;
Provide
notice that the buyer doesn’t have to finance through
the dealer; and
Itemize
any compensation, points, or reimbursement that the dealer
receives
from the lender. |
The disclosures and any other document related to a used vehicle transaction
must be written in the same language in which the vehicle deal was actually negotiated.
So if your sales person spoke in Spanish to the customer, then all the documents
must be in Spanish.
If you don’t comply with the requirements above, then
the customer can
back out of the deal at any time.
Bill requirements also would have put you
in the car rental agency business
by requiring you to offer buyers
a three-day contract cancellation option on
all
used vehicles purchased for $40,000 or less.
Even worse, you would have to
charge less than a car rental agency
charges. The legislation would
set a maximum price…based on the price of the vehicle…that
you could charge for the cancellation option. You could charge $75 for a vehicle
with a purchase price of $5,000 or less; and, the maximum charge for a vehicle
costing between $30,000 and $40,000 would be 1 percent of the purchase price.
Even
though the bill allowed for a restocking
fee, it didn’t even
begin to cover the cost of vehicle
depreciation or detailing the used vehicle for resale.
For example, on a $5,000 vehicle a dealer may charge up to $175; for a vehicle
purchased for $10,000 or more, the fee may not be more than $500. Then you
have to credit the price paid for
the cancellation option toward the restocking fee.
It did require
that the used vehicle
be returned in the same condition
and can’t
be driven more than the mileage limit specified in the cancellation option
agreement. Can you imagine the
disputes that would arise between you and the purchaser if
there was an issue regarding whether the car was returned in the same condition?
Oh,
and by the way. Had this been
enacted, these provisions would
have become effective July 1st this year.
Following is just a few
of the
legislative bills that WSIADA
tracked this year. This is why
being a member is so important.
As you can see there are many different areas of your business that
can be negatively impacted by a piece of legislation.
Whether it be mandating you provide health care to your employees at your
expense
or adding more documents to sell an automobile, WSIADA must be aware of
every
piece of legislation introduced and respond accordingly, after all that
is why you pay your membership
dues for the security of knowing that someone
is watching
out for your businesses best interest.
SSB 6768 Providing for certain requirements and restrictions on
purchases of used vehicles. Used Car Buyer Bill Of Rights. This
is definitely thanks to the 40+ dealers that traveled to Olympia
for the public hearing to oppose this legislation. Great Job!
Status: Died
HB 1923 Modifying
requirements for motor vehicle
transporter license applications. An applicant
for a transporter's license is
required to indicate if the license
will be used to recover disabled vehicles from a public road or
highway for compensation. If so,
the applicant will also be required
to indicate if the applicant is a registered tow truck operator.
Status: Governor Signed, Effective
date 6/12/2008.
HB 1924 Increasing
deficiency claim limits for impoundment
services provided by registered tow truck
operators.
Status: Died
HB 2048 Modifying
the requirements for executing
assignment and warranty of title when the purchaser or
transferee is a dealer.
Status: Died
HB 2165 Requiring
verification of special endorsements
before renewing vehicle licenses for motorcycles.
Status: Died
HB 2208 Modifying
window tint requirements and penalties.
Status: Died
HB 2243 Addressing
the replacement of motor vehicle
keys.
Status: Died
2SHB 2537 An act relating
to modifications to the health
insurance partnership statute necessary for timely implementation
of the health insurance partnership.
Requires small employers participating
in the Partnership to attest to
the fact that they do not currently
offer health insurance to their
employees, and that at least 50
percent of
their employees are low-wage workers.
Makes a technical correction
to the reference to health savings
accounts that are linked to high
deductible health plans. The Board
must offer up to five health benefit
plans, instead of four, and one
must be a health savings account.
Status: Governor Signed
SHB 2560 Defining small employers for purposes
of health insurance coverage. The definition of "small
employer" or "small group" is modified to reflect
the federal definition, requiring
a group to have employed an average of at least two but not more
than 50 employees during the previous
calendar year, and to have employed
at least two employees on the first day of the plan year. The income
test for a self-employed
individual or sole proprietor to
qualify for the small group insurance is removed.
Status: Governor Signed
HB 2620 Securing credit and debit card
information. Adds debit cards to law.
Status: Died
E2SHB 2703 Encouraging
energy efficiency.
Status: Died
HB 2802 Prohibiting
the use of personal credit histories
and credit scores.
Status: Died
HB 2806 Giving hiring
preferences to children of deceased
veterans and children of veterans with disabilities.
Status: Died
E2SHB 2815 Regarding
greenhouse gases emissions and
providing for green collar jobs. Ecology is required
to submit a greenhouse gas reduction
plan for review and approval to
the Legislature by December 1,
2008. Ecology must develop and
implement a system for monitoring
and reporting GHG emissions. The
reporting must allow for a comprehensive
inventory of emissions of GHG from
all significant sectors of the
Washington economy, including identifying
a mechanism to report an aggregate
estimate of the annual GHG emissions
from otherwise unreported on-road motor
vehicles.
Status: Governor Signed
E2SHB 2817 Concerning motor vehicles, vehicles,
and vessels contaminated with methamphetamines. A city or
county in which a vehicle or vessel
contaminated by hazardous chemicals
is located must prohibit its use,
occupancy, or removal, and require
its demolition, disposal, or decontamination.
This requirement arises when a
local health officer issues an
order declaring the vehicle or
vessel unfit and prohibiting
its use due to contamination. The
city, county, or local law enforcement
agency may impound the vehicle
or vessel. Provisions governing
impoundment of vehicles in the
Motor Vehicle Code do not apply.
Property owners are responsible
for demolition, disposal, or decontamination
costs and costs incurred by local
health officers or law enforcement
agencies…with exceptions.
Status: Delivered to the Governor
for signature.
SHB 2858 A new category
of metal property is created
called private metal property. It is defined as
meaning catalytic converters,
either singly or in bundles, bales, or
bulk, that have been removed
from vehicles for sale as a specific
commodity. Scrap metal businesses
entering into a transaction to
purchase or receive private metal
property from a member of the
general public or a commercial enterprise
are subject to the same record
keeping requirements and
penalties as those required for
transactions involving non-ferrous
metal property and commercial
metal property.
Status: Delivered to the Governor
for signature.
SHB 2902 Conditioning
the collection of the lemon law
arbitration fee upon initial registration
of new motor vehicles in Washington
State. Vehicle dealers and
lessors are not required to collect the $3
arbitration fee if the new
motor vehicle will be registered outside
of the State of Washington.
Status: Governor Signed effective
date 6/12/2008.
HB 2965 Developing
a feasibility plan for authorizing
state administration and collection
of local business and occupation
taxes.
Status: Died
SHB 3029 Requiring
the provision of a secure internet-based
system to generate temporary
permits to operate vehicles.
The DOL must provide access to
a secure system that allows temporary
vehicle permits to be generated
by licensed vehicle dealers
by July 1, 2009. By July 1,
2011, all temporary vehicle permits must be generated
using this system.
Status: Governor Signed
Effective date 6/12/2008.
HB
3056 Requiring disclosure of
nonoriginal repair parts.
Status: Died
2SHB 3104 Expanding
rights and responsibilities
for domestic partnerships.
Rights and responsibilities
granted to spouses in various
areas of law are extended to
state registered domestic partners. The
amended statutes generally
involve: dissolutions; community
property; estate planning;
taxes; court process; service
to indigent veterans and other
public assistance; conflicts of interest
for public officials;
and guardianships.
Status: Governor Signed
Effective date 6/12/2008;
except section 1043,
which reinstates prior law
related to mediation in family
law cases after a scheduled
expiration which takes effect
January 1, 2009; and section
1047, relating to family court
programs, which takes
effect July 1, 2009.
SHB
3126 Clarifying the interaction
of the streamlined sales and
use tax legislation and the power of
local governments to license
and tax. A variety
of municipal taxing statutes
are amended to specify that businesses
do not need to be licensed for
city business tax purposes, if the firm
is merely registered or in
compliance with the SSUTA. This assures
that remote sellers are not
liable for city business taxes, if they
only report local sales
taxes to the jurisdictions.
(If the firm actually has nexus within
the city, then it is still potentially
subject to registration
for local business tax purposes.)
Status: Governor Signed
SHB 3144 Creating a consumer protection
web site and information
line. The Department of Information
Services (DIS)
must coordinate among state
agencies to develop a consumer
protection website,
which will serve as a one-stop
website for consumer information.
At a minimum, the website
must provide
information or links to information
regarding a list
of items to include licensing
information
provided
by the Department
of Licensing.
Status: Governor
Signed
HB 3154 Establishing goals to reduce
vehicle miles
traveled. (See
HB 2815)
Status: Died
SSB 5217 Allowing
counties
to increase funding for properties
acquired
through conservation futures.
Status: Died
SB 5600 Modifying
sales tax
exemptions and remittances
for nonresidents.
Status:
Died
SB
5840 Providing temporary
permits
for salvage
vehicles awaiting
inspection.
Status:
Died
SB 5924 Establishing
licensing
requirements for certain
vehicle
dealers.
Status:
Died
SB 6031 Concerning
the
funding
of certain regional transportation
investment
district
projects.
Status:
Died
SB 6072 Providing for the
funding of certain high- capacity transportation
systems.
Status:
Died
SB
6097 Exempting from
use taxation motor vehicles
used solely in this state for
commuting to and from a place of employment
located in
a contiguous state or foreign
country.
Status:
Died
SSB
6309 Requiring disclosure
of greenhouse
gas tailpipe emissions. The Department
of Ecology (Ecology) must develop
and
implement a greenhouse gas emissions
disclosure labeling
program. Disclosure
labels must
be conspicuously affixed to new
passenger cars,
light duty trucks,
and medium duty passenger
vehicles offered for
sale beginning with the 2010 model
year.
Disclosure labels
should use
an index or rating system that
compares
the vehicle's greenhouse gas emission
levels
with the
average greenhouse gas
emissions levels of all vehicles
offered
for sale
in the same model year. In addition,
the index
or rating
system should identify the vehicle
model with
the lowest
greenhouse gas
emission levels for the model
year. An emissions disclosure label
that
complies with
the requirements
of the California vehicle labeling
program
must be deemed to meet the
requirements of this act.
Status:
Governor Signed
ESSB
6333 Establishing
a citizens' work group
on health care. The Legislature
must contract with a consultant
to
evaluate a number
of health
care reform proposals. After
January
30, 2009,
the Governor
must make
appointments to the Washington
Citizens' Work
Group on Health Care Reform.
The work group must review
the analysis of the health reform
proposals and
engage in
a public process that
may include
public forums, invitational
meetings
with community
leaders or
other interested individuals
and organizations,
and web-based communication.
The
work group must
submit a final report by November
1, 2009,
with a
summary of
the public engagement process
and
the work group recommendations
to the Governor and the Legislature.
Status:
Delivered to
the Governor for signature.
SSB
6341 Concerning electronic
data recorders
in motor vehicles.
Status:
Died
E2SSB
6502 Reducing
the release of mercury
into the environment.
Status:
Died
SSB
6527 Addressing the
failure to transfer
motor
vehicle
title
and registration
on a private party
sale.
It
is added that for a private
party
to fail
or neglect to make
application
to
transfer the certificate
of ownership
and
license registration
within
45 days after the vehicle's
delivery
date
is a
continuing offense
for each
day
during which the
purchaser or transferee
does
not make such
application. It is clarified
that
despite
the continuing
nature of this
offense, it must be
considered
a single offense,
regardless of
the number
of days
that have elapsed following
the 45 day
time period.
This is for private
party transactions
and does not effect
automobiles
sold by
licensed automobile
dealers.
Status:
Delivered to
the Governor for
signature.
ESSB
6580 addressing
the impacts of climate
change through the
growth
management act.
The Department
of Community,
Trade and Economic
Development
(CTED)
must: (1) develop
and
provide
counties
and
cities with
a range of advisory
climate
change
response
methodologies, a computer
modeling
program,
and estimates of
greenhouse
gas
emissions reductions
which must reflect
regional
and local
variations of the
county
or
city
by December
1, 2009;
(2) work
with the Department
of Transportation
to reduce
vehicle miles
traveled; (3) administer
a local
government global
warming mitigation
and adaptation
program, which must
conclude by June
30,
2010.
Counties
and cities
are selected
for the program
through a
competitive process;
(4)
provide
grants and technical
assistance
to
aid the selected
counties and
cities in their
efforts
to
anticipate,
mitigate,
and adapt
to global warming
and its
associated problems;
(5)
prepare
a report
of program
findings and recommendations
to the Governor
and
Legislature by January
1,
2011;
and
(6) prepare an additional
report
including
descriptions of
actions that counties
and cities
are taking
to address climate
change,
among
other items,
by December
1, 2008.
Status:
Delivered to
the Governor
for signature.
SB 6900 Establishing vehicle engine displacement and emissions
fees.
Status: Died
HB 1112 Requiring disclosure
of nonoriginal repair parts.
Status: Died
HB 1113 Prohibiting
insurers from having a financial
interest in automotive repair facilities.
Status: Died
HB 1316 Authorizing
police officers to impound vehicles
operated by drivers without specially endorsed
licenses.
Status: Died
HB 1564 Creating a
sales and use tax exemption to
encourage the purchase of motor vehicles
that reduce air pollution.
Status: Died
HB 1788 Addressing
vehicle registrations for deployed
military personnel.
Status: Died
E3SHB 1873 Changing
the requirements for, and recoveries
under, a wrongful injury or death cause
of action, or a survival action.
Status: Died. |
