DEALER ALERTS


DOL Requesting Feedback Concerning the Retention and Maintenance of Auto Dealer Records

The Department of Licensing is seeking feedback on the 2016 session law SB 6326 concerning the retention and maintenance of auto dealers and repair facility records.

The DOL is requesting that auto dealers complete this survey: https://www.surveygizmo.com/s3/4269950/Dealer-electronic-recordkeeping-preferences.

The survey will be available from May 23rd through June 13th.


Pre-Enrollment for Multi-Factor Authentication for License eXpress Starting May 22, 2018

The Department of Licensing is now requiring vehicle/vessel businesses to pre-enroll for multi-factor authentication (MFA) for their License eXpress accounts. Pre-enrollment for vehicle/vessel businesses will begin Tuesday, May 22, 2018.

All businesses that use the DOL License eXpress system will be required to use this new security measure on their account. This new security feature is designed to protect customer identity and data.

Starting on Tuesday, May 22nd, vehicle and vessel business users can pre-enroll for MFA. Please carefully review the below login instructions and FAQs and share them with colleagues who transact business using the Licensing eXpress portal. You must follow the login steps described in the link to pre-enroll for MFA.

The DOL strongly encourages you to pre-enroll when prompted to do so. Pre-enrolling allows you to avoid potential delays in processing transactions once they fully implement MFA for existing DRIVES vehicle/vessel business users on June 25th. Customers who fail to pre-enroll may experience delays and frustration when conducting transactions that may be urgent or important.

The DOL will pre-enroll vehicle and vessel business owners in five groups, organized alphabetically by email address. The first group will receive the pre-enrollment request during login on Tuesday, May 22nd. The second and subsequent groups will receive the request a few days apart. When it is your time to pre-enroll, you will receive a link to follow when you login.

Please read: MFA Frequently Asked Questions and MFA Pre-Enrollment User Guide

If you have questions or need additional assistance please call the DOL's Production Support Unit at (360) 664-9698 or email This email address is being protected from spambots. You need JavaScript enabled to view it..


Changes Coming to Driver License Numbers Starting With Licenses Issued After September 4, 2018

The new change in driver license numbers will be starting later this year with all cards that are issued after September 4, 2018. The new number will be randomly generated and will no longer include a portion of the person's name and date of birth. However, all cards will start with the letters WDL as the first three characters.

This new changes effects standard and enhanced licenses, as well as identification cards and commercial driver licenses.

For more information about this new change, read Driver License Number Changes Fact Sheet. .pdf File


DOL Upgrades Security Measures to Protect User Identity and Data Starting in Late Spring 2018

The Department of Licensing is improving security measures on their website by adding stronger authentication methods. The security upgrades that you will see and experience is Multi-Factor Authentication (MFA). You already experience MFA if you use on-line banking or have a Yahoo or Google account. That is when the system challenges you to use a code sent to you by way of a text message or e- mail message or a telephone call.

MFA makes it about four times more difficult for an attacker to impersonate you or one of your customers on-line and access accounts or other resources.

The change is coming to our on-line interactions starting in late spring. In early May, DOL will send you more details, including enrollment instructions

For more information on these security upgrades, please read DOL Upgrading Security Measures. .pdf File


License Express System Updates on April 9, 2018

Continuous updates to the License Express system adds improvements and visual enhancements. The newest improvements and visual enhancements will be available on April 9, 2018. These updates reflect ongoing efforts to make License Express more efficient and user friendly.

What to expect

Updates to the general navigation in License Express are minimal and mainly visual.

  • A few hyperlinks were moved to different sections.
  • Some screens were revised to provide new or different functionality.
  • Visual changes were made to some screens.

Who will see these updates

  • E-permits
  • Abandoned Vehicles
  • Wrecking Yard Inventory
  • Vehicle Scrap Processors
  • Total Loss Vehicles
  • Plate and Vessel Look-Up

To see all the changes and for more information, please read License Express Updates. .pdf File


Requirements for Altered Title Applications After The Customer Has Signed The Form – Effective April 1, 2018

Alterations made to dealer title applications are increasing the number of title applications rejected by the Department of Licensing in Olympia. The DOL is clarifying what is acceptable and what is required in the event of an alteration.

Alterations

DOL considers a typed dealer title application altered when it contains handwritten or stamped (non-signature) vital or important information.

Here are three examples:

  • Crossing out a lienholder and adding a different lienholder
  • Handwriting or stamping a lienholder on a typed and printed application
  • Handwriting a Lessee or Lessor on a typed and printed application

The following is critical for you to know because it can affect your customer.

If alterations are made to a title application, the dealer must complete a Certificate of Fact (COF) that includes the vehicle or vessel information, an explanation of the alteration, and a signature. If a COF is not included with the title application, DOL will not release the title.

Start Date

Dealers must attach a COF to all altered title applications by April 1, 2018. Vehicle licensing offices will not process these transactions without a COF and DOL will reject title applications from dealers that do not meet this requirement.

Please contact your local vehicle licensing office for additional details or questions.


All WA State Employers Are Required to Provide Paid Sick Leave – Effective January 1, 2018

On November 8, 2016, Washington voters passed Initiative 1433. The Initiative's intent was to establish fair labor standards and protect the rights of workers by increasing the minimum wage and to balance the needs of the workplace and families by promoting public health, family stability, and economic security. You should already be complying with the minimum wage increase that went into effect early this year, but starting on January 1, 2018 all employers are required to provide paid sick leave to their employees. Are you ready?

1433 allows for the use of paid sick leave as follows:

  • Employees may use paid sick leave to care for themselves or a family member.
  • An employee may use paid sick leave when the employee's work or the employee's child's school or place of care has been closed by order of a public official for any health-related reason.
  • An employee may use paid sick leave for absences that qualify for leave under the state's Domestic Violence Leave Act.

However, employers are not prevented from allowing employees to use paid sick leave for additional purposes.

At a minimum, each employee shall accrue one hour of paid sick leave for every 40 hours worked. The accrued paid sick leave must be made available for use by the employee beginning on the 90th calendar day after the start of employment. Any unused paid sick leave equaling 40 hours or less must be carried over to the following year.

These minimum standards must be met, but employers can also provide more generous accrual and carry over policies that best fit within their business.


2017 WA State Legislation SB 5244 - Specifies the means of communication between a buyer/lessee and dealer during the bushing period.

Bushing is the four-day period that occurs after the buyer or lessee signs a sales or lease contract for financing of a motor vehicle. The dealer is required to inform the buyer or lessee that they accept or reject the terms of the sales or lease contract within this four-day period.

This bill identifies the ways in which an auto dealer may inform a buyer or lessee during the bushing period of the acceptance or rejection of the contract or lease agreement. They include:

  • an email message to the buyer's or lessee's supplied email address;
  • a phone call;
  • a voice message or a text message to a phone number provided by the buyer or lessee;
  • in-person oral communication;
  • a letter by first-class mail if the buyer or lessee expresses that as a preference or does not provide an email and a phone number able to receive free text messages; or
  • by another means agreed to by the buyer or lessee or approved by the Department of Licensing.

This bill goes into effect on July 23, 2017.


2017 WA State Legislation HB 1722 - Eliminating wholesale vehicle dealer licensing.

The wholesale vehicle dealer license is phased out over a two-year period:

  • Effective July 1, 2017, the DOL will not issue any new wholesale vehicle dealer licenses.
  • Effective July 1, 2018, the DOL may not renew any wholesale vehicle dealer licenses.
  • Effective July 1, 2019, the wholesale vehicle dealer license category and all references to wholesale vehicle dealers are removed from law.

What prompted the elimination of the wholesale vehicle dealer license? The DOL has received numerous complaints from other states' law enforcement agencies, as well as federal law enforcement agencies, about different investigations of people who are suspected of criminal activity and who have a Washington wholesale vehicle dealer license or are connected to a vehicle with a Washington wholesale vehicle dealer plate. There are reportedly criminal investigations ongoing in states including Iowa, Wyoming, Colorado, and Illinois. The DOL generally lacks jurisdiction when illegal activity is happening out of state.


FTC Finalizes Changes to the Used Car Rule Effective January 27, 2017

The FTC’s Used Car Rule has been in place since 1985 and it requires Dealers to post a Buyers Guide on the cars that are for sale. The Buyers Guide discloses whether the dealer is offering to sell a used car “as is” or with a warranty. If the sale is with a warranty, the Buyers Guide discloses the warranty’s terms and conditions, including the duration of coverage, the percentage of total repair costs the dealer will pay, and the vehicle systems that the warranty covers.

Back in 2012, the FTC began their systematic review of the Used Car Rule and sought public comments regarding the usefulness of the Rule. In response to the public comments that they received combined with their internal review, the FTC approved final changes to the Buyers Guide effective January 27, 2017.

The FTC is revising the Buyers Guide by:

  • changing the description of an “As Is” sale;
  • placing boxes on the face of the Buyers Guide that dealers can check to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available;
  • providing a box that dealers can check to indicate that an unexpired manufacturer’s warranty applies;
  • adding air bags and catalytic converters to the Buyers Guide’s list of major defects that may occur in used vehicles;
  • adding a statement that directs consumers to obtain a vehicle history report and to check for open recalls;
  • adding a statement, in Spanish, to the English-language Buyers Guide advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish; and
  • providing a Spanish translation of the statement that dealers may use to obtain a consumer’s acknowledgement of receipt of the Buyers Guide.


The amended Rule will permit Dealers to use their remaining stock of Buyers Guides up to one year after the effective date.

To obtain the new Buyers Guide, you may download it in pdf format here: FTC's Buyers Guide. .pdf File