A bill for an act relating to administrative fees charged by motor vehicle dealers, and making penalties applicable.

2025-2026 Regular Session

SSB 1059 allows motor vehicle dealers to charge unlimited administrative fees, potentially raising costs for consumers while increasing dealer revenue.

Subcommittee reassigned: Lofgren, Dickey, and Townsend.

#automobiledealers #civilprocedure #fees #motorvehicles #vehicles

Bill Information

Bill Number: SSB 1059

Title: A bill for an act relating to administrative fees charged by motor vehicle dealers, and making penalties applicable.

Status: Subcommittee reassigned: Lofgren, Dickey, and Townsend.

Introduced: January 28, 2025

Classification: Proposed bill

Subject Areas: Automobile dealers, Civil Procedure, Fees, Motor Vehicles, Vehicles

Purpose and Intent

The primary purpose of SSB 1059 is to modify the existing regulations surrounding fees that motor vehicle dealers can charge customers. The bill aims to replace the current "documentary fee" structure with a more flexible "administrative fee" system, allowing dealers to charge for services related to the sale of motor vehicles without a specified maximum limit.

Key Provisions

Fee Structure Change:

The bill authorizes motor vehicle dealers to charge an "administrative fee" for services performed on behalf of the customer, replacing the existing "documentary fee" which is capped at $180.
The bill removes the maximum limit on the administrative fee that dealers can charge.

Disclosure Requirements:

Dealers are still required to disclose any fees clearly and conspicuously in motor vehicle purchase agreements and advertisements.
Conforming changes to the required notice regarding fees will be implemented to align with the new fee structure.

Penalties for Violations:

The bill establishes that violations of the new fee regulations will be considered an unlawful practice under existing civil codes.
Remedies for violations include injunctive relief, disgorgement of moneys or property, and civil penalties up to $40,000 per violation.

Impact

Affected Parties:

Motor Vehicle Dealers: The bill provides dealers with greater flexibility in charging fees, potentially increasing their revenue from administrative services.
Consumers: Customers may face higher fees without a cap, which could impact the overall cost of purchasing a vehicle.

Legal and Procedural Aspects:

The bill outlines specific penalties for non-compliance, which may lead to increased scrutiny of dealer practices and greater accountability in fee disclosures.

Legislative Timeline

January 28, 2025: Bill introduced and referred to the Transportation Committee.

January 28, 2025: Initial subcommittee assignment to Lofgren, Bisignano, and Dickey.

February 11, 2025: Subcommittee reassigned to Lofgren, Dickey, and Townsend for further consideration.

This summary provides an overview of SSB 1059, highlighting its intent, key changes, and potential impacts on motor vehicle dealers and consumers.

Bill