WA State Legislature EHB 1049: Concerning Off-Site Vehicle Delivery & Retail Installment Contracts - Effective July 25, 2021
The Washington State Legislature passed EHB 1049, concerning the off-site delivery of a vehicle by a licensed motor vehicle dealer and modifies the established place of business and retail installment contract requirements.
Under EHB 1049:
- Dealers are allowed to deliver vehicles for inspection, test drive, lease, or purchase and have customers sign agreements over the Internet or at a location other than the dealer’s established place of business or licensed or temporary subagency.
- The consumer's right to timely cancel certain retail installment transactions is modified to exclude off-site retail installment transactions for the purchase of a motor vehicle. The requirement to include a right-to-cancel notice in certain retail installment contracts is modified to exclude retail installment contracts for the off-site sale of a motor vehicle by a licensed vehicle dealer, however, when a dealer sells a vehicle through a retail installment contract at a place other than the dealer’s established place of business, the dealer must disclose to the purchaser or lessee in writing that there is no statutory right to cancel the contract under RCW 63.14.154.
The Department of Licensing issued guidance on the new regulation:
- The new ability to conduct remote vehicle sales or delivery does not eliminate the requirements for an Established Place of Business and these must continue to be maintained.
- If a sale or lease is conducted off site and a hard copy permit is issued, this information must be submitted into the E-permit system within 24 hours.
- Auto dealers must ensure their bond coverage is adequate for remote sales, leases, or transactions outside of their established place of business.
EHB 1049 goes into effect on July 25, 2021.
For more information, visit Engrossed House Bill 1049 - Final Bill Report.
DOL Updating DRIVES System & License eXpress Will Be Offline July 4th Weekend
The Department of Licensing will be updating their DRIVES system. The update will include enhancements to their License eXpress system with a new look, navigation, and help features.
License eXpress will be down from Saturday, July 2nd through Monday, July 5th. All services are expected to resume normal operation on Tuesday, July 6th.
Dealers are allowed to purchase and use hard copy Vehicle Title Applications & Dealer Temporary Permits during this downtime, but all information from the hard copy application must be entered into the E-permits system when the system comes back online.
In observance of the 4th of July holiday, all vehicle licensing offices will be closed on Monday, July 5th.
L&I Employer Requirements and Guidance for Preventing COVID-19
Our State is fully reopened and businesses are allowed to operate at full capacity; however, there are a few requirements employers must follow to prevent the spread of COVID--19.
L&I requires employers to:
- Ensure unvaccinated employees wear a mask while working indoors.
- Verify vaccination status before lifting employee mask requirements and be able to show the process used for verification.
- Keep employees with possible or confirmed cases of COVID-19 from working around others.
- Provide handwashing facilities and supplies.
- Train employees to recognize and respond to workplace hazards, including COVID-19.
- Assess recognized hazards, including COVID-19, as part of the ongoing requirement to provide a safe and healthful workplace and, where appropriate, take additional steps to protect unvaccinated employees.
- Notify employees in writing within one business day if someone they had close contact with tests positive for COVID-19 and do so without disclosing the person’s identity.
For more detailed information on employer requirements and general guidance, visit L&I Requirements and Guidance for Preventing COVID-19.
Alert from NIADA - PPP Loan Recipients' Information Made Public
The Small Business Administration was required to release public data on all businesses that received loans through the Paycheck Protection Program. The information that was released, including borrower's names, addresses, loan amounts, and lender information was in response to a court order from a Freedom of Information Act lawsuit that was filed by the Center for Public Integrity and 10 other organizations challenging the SBA’s refusal to release records on borrowers and their loan information.
Now third-party businesses can use the disclosed information to target PPP loan recipients with deceptive marketing materials and fraudulent claims. NIADA is urging all businesses who received PPP loans to be aware of any third-party marketing in reference to your PPP loan that may imply an affiliation with the PPP loan program, the Small Business Administration, or your PPP loan lender. NIADA suggests you should check with your lender or the SBA to confirm any claims being made.
NHTSA's Final Rule On Odometer Disclosure Requirements and Electronic Odometer Disclosure Systems
The U.S. Department of Transportation’s National Highway Traffic Safety Administration announced their Final Rule that revises the odometer disclosure requirements and also allows for individual states to implement their own electronic odometer disclosure system.
The average vehicle age is around 12 years and the NHTSA believes that these older vehicles, that are exempt from mileage disclosure, are at risk for odometer fraud. The NHTSA addresses this issue by increasing the odometer disclosure requirements from vehicles that are less than 10 years old to requiring an odometer disclosure for any vehicle that is less than 20 years old beginning with the model year 2011.
The Final Rule also sets requirements and establishes standards for states to implement their own system to accept odometer disclosures in electronic format. By doing so, the NHTSA states that this will remove the last remaining federal obstacle to paperless motor vehicle title transfers.
The Final Rule takes effect on January 1, 2021.
Washington State Supreme Court Ruled Initiative 976 Unconstitutional
On Oct. 15, 2020, the Washington State Supreme Court ruled Initiative 976 (I-976) as unconstitutional.
All provisions in the initiative will not be implemented and the ruling leaves all affected taxes, fees, and charges in place including the collection of the additional 0.3% motor vehicle sales/use tax on all sales and leases of motor vehicles.
To view the Supreme Court decision, visit I-976 Supreme Court Decision.
Dealers Will Be Responsible for Paying Tolls
The Department of Transportation will implement a new billing system that will give them the ability to mail toll bills to dealers for trips made on toll roads while using dealer plates.
The DOT is encouraging all dealers to sign up for a Good to Go! account and purchase a pass. By purchasing a pass, you will pay lower toll rates than without a pass and the toll will automatically be deducted from your account.
If you do not want to purchase a pass, you may just pay the toll fee when you receive the bill in the mail.
To set up an account or to pay a toll bill, visit WSDOT Good to Go! at https://mygoodtogo.com/olcsc/.
If you fail to pay your toll bill, you will be assessed late fees and penalties plus the Department of Licensing may place a hold on your vehicle registration and license, preventing you from renewing tabs or applying for additional licenses.
For more information on setting up an account and purchasing a pass, visit their website at https://mygoodtogo.com/olcsc/ or call DOT's Good To Go! at 1-866-936-8246. Their call center is open Monday through Friday from 7 a.m. to 6 p.m., and on Saturdays from 9 a.m. to 1 p.m.