New law prohibits Washington wholesale vehicle dealers from conducting business outside our state

March 31, 2016

Photo of window sign at a wholesale vehicle dealer location showing 180 separate licenseesThe Washington Legislature recently took action to change our state’s wholesale vehicle dealer license law to stop out-of-state businesses with no connection to Washington from obtaining licenses to conduct vehicle dealer business outside of our state.

The primary changes to this law include requiring wholesale vehicle dealers to only buy vehicles from, and sell to, other Washington state licensed vehicle dealers. It also prohibits more than three wholesale vehicle dealers from sharing a single business location.

Photo of interior of wholesale vehicle dealer license location showing long rows of empty desksRecently, there has been an 800 percent increase in the monthly number of wholesale vehicle dealer licensing applications submitted to the Department of Licensing. These applications are submitted on behalf of out-of-state individuals by Internet-based companies.

These companies advertise the service of taking care of all of the paperwork necessary to set up a Washington business and obtain a Washington wholesale dealer license on behalf of their clients. As a result, these out-of-state business owners are all located at a handful of addresses in our state including a single address in the small town of Wilbur in Eastern Washington used by more than 300 wholesale vehicle dealers as their place of business.

Because these out-of-state wholesale dealers are not located in Washington or doing business here, it is impossible for the Department of Licensing to monitor, investigate or regulate these businesses.

Our state’s wholesale vehicle dealer license law is set up to provide a lot of operational flexibility to companies that only sell buy and sell vehicles at dealer-only auctions or directly to other vehicle dealers. Dealers with this type of license are prohibited from selling vehicles directly to consumers. However, individuals across the country have been taking advantage of our flexible laws and obtaining these licenses in our state with no intention of doing business here.

Other office buildings in Moses Lake, Everett and Spokane Valley also are set up in a similar way to house out-of-state wholesale dealers who are, on paper at least, located together. There is no evidence that any of the hundreds of wholesale dealers have ever stepped foot in any of these facilities. Instead, they pay monthly rent to the owners of these Internet companies and receive mail forwarding services.

This new law (ESSB 6606) takes effect immediately and the Department of Licensing will soon begin notifying current wholesale vehicle dealer licensees of the new requirements.


JBLM will require Real ID compliant driver licenses or IDs beginning April 1

March 1, 2016

Joint Base Lewis-McChord (JBLM) recently announced new ID requirements for unescorted visitor access at that base and the Yakima Training Center (YTC). These facilities will begin complying with the Federal Real ID Act on April 1, 2016, which means a standard Washington driver license or ID card will not be accepted for entry.

Washington residents who plan on visiting a military base in our state must have an Enhanced Driver License, Enhanced ID Card, or another acceptable form of identification to get a visitor’s pass for unescorted access to these bases. According to Fort Lewis officials, the following documents can be used in place of a standard Washington driver license or ID card:

  • Washington State Enhanced Driver License or Enhanced ID Card
  • U.S. Passport or U.S. Passport Card.
  • Permanent resident card or Alien Registration Receipt Card (INS Form I-551).
  • Foreign passport with a temporary I-551 stamp or temporary I-551 printed notation on a machine readable immigrant visa.
  • Foreign passport with a current arrival-departure record or foreign passport with INS Form I-94/I-94A bearing the same names as the passport and containing an endorsement of the alien’s nonimmigrant status, if that status authorizes the alien to work for an employer.
  • Employment authorization document that contains a photograph (INS Form I-776).
  • JBLM-issued Rapid Gate Identification
  • U.S. Coast Guard Merchant Mariner Card
  • Transportation Worker ID Card (TWIC) issued by DHS
  • Native American tribal document.
  • U.S. Government issued, authenticated Federal PIV credentials.
  • For anyone under 18, a school identification card with a photograph.

This change affects companies with employees who need unescorted access to JBLM or YTC. It also impacts people who need visitor passes for unescorted base access to visit friends, family, the museums, hospital or other locations.

Washington is one of five states whose standard driver license is not in compliance with the federal law. Washington’s Enhanced Driver Licenses and Enhanced ID Cards are Real ID Act compliant and require proof of U.S. citizenship, identity and Washington state residence. Learn more about obtaining an Enhanced License or ID at the Department of Licensing website.

Learn more about the new requirement by contacting the Lewis Visitor Center at (253) 967-4794, McChord Field Visitor Center at (253) 982-2588, or YTC Police Desk at (509) 577-3236.

Visit the Department of Homeland Security Website for information about the Real ID Act.