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Senate Bill Report EHB 1049 — Off-Site Delivery of a Vehicle by a Vehicle Dealer (As of March 11, 2021)

Summary

Senate Bill Report EHB 1049 as of March 11, 2021, for the Senate Committee on Business, Financial Services & Trade, on an act relating to the off-site delivery of a vehicle by a vehicle dealer. The brief summary states that the bill permits motor vehicle dealers to deliver vehicles for inspection, test drive, lease, or purchase and to have customers sign agreements over the Internet, and removes the right to cancel off-site retail installment transactions for motor vehicles. The staff summary of public testimony lists Scott Hazlegrove of the Washington State Auto Dealers Association in favor, saying the bill was born out of COVID-19. The appropriation is listed as None.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2021-03-16
Case
2021 03 16 A28696 D231443 Bill Report 1049 E Sbr Bfst Ta 21

Cite this document

“Senate Bill Report EHB 1049 — Off-Site Delivery of a Vehicle by a Vehicle Dealer (As of March 11, 2021).” Original at app.leg.wa.gov, dated 2021-03-16. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-16-2021-03-16-a28696-d231443-bill-report-1049-e-sbr-bfst-ta-21/, SHA-256 db81afd87f20d142e09a106f6087ff95d343b3894c047676a4a09bb3ac6a6b0a.

Full text

                             SENATE BILL REPORT
                                  EHB 1049

                                       As of March 11, 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.

     Staff Summary of Public Testimony: PRO: This bill was born out of COVID-19 and the
     desire of vehicle dealers to adapt and meet customers where they are. During this time,
     dealers discovered some hurdles to selling a vehicle. When a purchase is made from a
     physical location, a consumer does not have the right of rescission available to consumers
     under the law regarding retail installment contracts. This bill language is a result of


Senate Bill Report                              -2-                                       EHB 1049
     extensive work with the Attorney General's Office and vehicle dealers. There is no change
     in the practice with what occurs at the dealership.

     Persons Testifying: PRO: Scott Hazlegrove, Washington State Auto Dealers Association.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                           -3-                                     EHB 1049

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Original
app.leg.wa.gov
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