Senate Bill Report EHB 1049 — Committee on Business, Financial Services & Trade (As of March 10, 2021)

Summary

This Senate Bill Report on EHB 1049, as of March 10, 2021, concerns the off-site delivery of a vehicle by a vehicle dealer licensed under chapter 46.70 RCW. It lists House passage on 1/27/21 by 96-0 and committee activity before Business, Financial Services & Trade on 3/11/21. The bill permits motor vehicle dealers to deliver vehicles for inspection, test drive, lease, or purchase, to have customers sign agreements over the Internet, and to provide an electronic statement of consumer rights under the Motor Vehicle Warranty Act. It removes the right to cancel off-site retail installment transactions for motor vehicles and modifies required disclosures. The report lists no appropriation and says a fiscal note was not requested.

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Full text

                             SENATE BILL REPORT
                                  EHB 1049

                                       As of March 10, 2021

Title: An act relating to the off-site delivery of a vehicle by a vehicle dealer licensed under
     chapter 46.70 RCW.

Brief Description: Concerning the off-site delivery of a vehicle by a vehicle dealer licensed
     under chapter 46.70 RCW.

Sponsors: Representatives Kirby, Vick, Kloba, Leavitt, Ryu, Morgan, Ramel, Springer and
    Stokesbary.

Brief History: Passed House: 1/27/21, 96-0.
     Committee Activity: Business, Financial Services & Trade: 3/11/21.


                                      Brief Summary of Bill
           • Permits motor vehicle dealers to deliver vehicles for inspection, test
             drive, lease, or purchase; to have customers sign agreements over the
             Internet; and to provide an electronic statement of consumer rights under
             the Motor Vehicle Warranty Act.
           • Removes the right to cancel off-site retail installment transactions for
             motor vehicles.
           • Modifies required disclosures in retail installment contracts.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Motor Vehicle Dealers. Motor vehicle dealers must be licensed in
     Washington to sell vehicles. To qualify for a license they must meet certain requirements
     such as have a business site that meets local and state dealer licensing laws, carry a bond,
     and provide certain information such as on the manufacturer when selling new vehicles, the




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                        EHB 1049
     business's finances, and personal criminal history. The Department of Licensing is
     responsible for licensing motor vehicle dealers.

     Besides laws governing their license and place of business, motor vehicle dealers must
     adhere to certain laws and rules regarding motor vehicle warranties, retail installment
     contracts, emissions requirements, and those regarding consumer rights such as the Lemon
     Law.

     Retail Installment Contracts. A retail installment sales contract may be used for several
     kinds of goods or services. For motor vehicles, it is used when a buyer purchases a motor
     vehicle from a dealer, and the buyer requests that the dealer provide financing for the
     vehicle. The dealer then assigns or sells these contracts to a financial institution as soon as
     the purchase transaction for the vehicle is complete. For retail installment contracts signed
     somewhere other than the seller's place of business, the consumer has three business days
     after signing the contract to cancel the contract by certified mail. The seller must then
     refund the buyer within ten days and reclaim the goods under the contract.

     Summary of Bill: Motor Vehicle Dealers. In addition to other requirements, a motor
     vehicle dealer may:
        • provide a consumer with a written statement, in paper or electronic form, that
           explains the consumer's rights under the Motor Vehicle Warranty Act;
        • deliver a vehicle to a consumer for inspection, a test drive, lease, or purchase; and
        • have the customer sign agreements over the Internet, or at a location other than the
           vehicle dealer's established place of business or licensed or temporary subagency.

     Retail Installment Contracts. Retail installment contracts used for the sale of a motor
     vehicle by a licensed vehicle dealer and signed at a place other than the seller's place of
     business are excluded from the three-day cancellation by certified mail period for the buyer,
     and are exempt from the right to cancel procedure otherwise applicable to buyers under
     retail installment contracts.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                              -2-                                       EHB 1049


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