AN ACT Relating to manufacturers and vehicle dealers;
Bill Description
Concerning manufacturers and vehicle dealers.
What this bill does Powered by Legitron
House Bill 1721 would add a new chapter to Title 46 RCW and amend multiple existing motor vehicle dealer and manufacturer statutes. It creates a limited direct-sales authorization for "qualified zero emissions vehicle (ZEV) manufacturers" (entities that exclusively manufacture ZEVs and have no existing franchise agreements) to sell directly to consumers if they meet conditions: establish at least two in-state service centers, provide mobile service before starting direct sales, deliver online sales through designated service or delivery centers or partnered licensed dealerships, provide warranties meeting chapter 19.118 RCW that cover repairs at designated service centers, and comply with chapter 19.86 RCW. The act also requires annual review reporting beginning July 1, 2026 and a specific report by July 1, 2034 recommending whether to retain, modify, or repeal the direct-sales authorization.
The bill also makes substantive changes to dealer-manufacturer law across several RCWs. It creates a Department of Commerce grant program (subject to appropriations) to help traditional franchised dealers with ZEV technician training and publicly available charging infrastructure, including one-time awards for dealers that partner as service or delivery sites and an additional 50% award for dealers that achieve at least 50% ZEV sales (per Department of Ecology standards) through July 1, 2030. It modifies dealer and consumer protections and procedures: revising definitions, expanding and clarifying unlawful dealer/manufacturer practices, authorizing and limiting documentary service fees (with higher allowed fees for ZEV sales and further increase if a dealer meets Ecology standards), setting market-area radii and 60-day notice rules for manufacturer openings/relocations, requiring timely payment and audit limits for warranty and manufacturer incentive claims (approved claims paid within 30 days; a dealer has one year after program expiration to submit incentive claims; limits on charge-backs after one year except for fraud), and creating a variety of prohibitions on manufacturer coercion, unfair discrimination, competing with dealers, misuse of confidential dealer information, and unreasonable facility or relocation demands.
The bill also changes penalties and specific offenses in existing law as described in the amended sections: certain odometer-related offenses are made unlawful and are identified as class C felonies under chapter 9A.20 RCW; other procedural deadlines and remedies for dealers and manufacturers are established or clarified (for example, warranty claim submission and payment timelines, conditions for issuing a second temporary license permit, and dealer rights to alternative vendors). Several provisions and subsection texts are incomplete or not present in the extracted facts (including the full text of many amended RCWs, the identity of the department charged with the annual review/reporting in one section, and the full conditions for some exceptions and the DC fast charging provisions), so some details and the full scope of amendments cannot be confirmed from the provided excerpts.
Why it matters Powered by Legitron
If enacted, the bill would let companies that only make zero emissions vehicles start selling directly to Washington consumers once they build at least two in-state service centers and offer mobile service, and as a practical matter those direct sales would need to flow through authorized service or delivery points and include warranty coverage and consumer protections. Traditional franchise dealers would be offered one-time state grants for public charging equipment and technician training, and dealers that push ZEVs to at least 50% of sales could receive an extra 50% on their award through July 1, 2030; manufacturers and dealers would also face clearer rules on warranty pay timelines, incentive payments and limits on certain manufacturer practices, which should make revenue and cost expectations more predictable.
The groups most affected are exclusive ZEV manufacturers (who gain a new sales route but must invest in service centers, warranties, and comply with consumer protection rules), traditional dealers (who can get grant money and potentially more if they ramp ZEV sales but may need to invest in charging and staff training), and the Departments of Commerce and Ecology (which must set program rules, standards, and reporting). Grant funding and many program details are subject to appropriations and administrative rulemaking, and several implementation details referenced in the bill text (exact grant amounts, definitions of designated delivery/service centers, and which department handles annual review) are not specified in the provided excerpts.