SB 5832

In Committee

Senate

Motor vehicle arb. fee

Updating the arbitration fee collected for the new motor vehicle arbitration account.

Introduced (completed)
2
Committee (current stage)
3
Floor Vote (not started)
4
Opposite Chamber (not started)
5
Governor (not started)
6
Signed (not started)

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?

Introduced: The bill is filed and assigned a number.
Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
Governor: The Governor reviews the bill and decides whether to sign or veto it.
Signed: The bill has been signed into law.

Introduced: January 11, 2026

Last Action: March 12, 2026

Status: S Rules 3

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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.

People & CommunitiesBalancedCorporate & Wealthy Interests

This bill raises the arbitration fee for new vehicle purchases and leases in Washington from $3 to $6 per transaction and removes past authority to divert unused funds to the state’s general fund. It also requires the Attorney General to publish annual reports on the program’s finances.

Increases the arbitration fee from $3 to $6 for each new vehicle sold or leased in Washington.
Requires the fee to be collected by the new motor vehicle dealer or vehicle lessor at the time of sale or lease and submitted to the Department of Licensing.
Directs all collected fees to the New Motor Vehicle Arbitration Account in the state treasury for use in the arbitration program, subject to legislative appropriation.
Requires the Attorney General to publish an annual report detailing revenue generated and expenses incurred by the arbitration program.
Removes authority for the legislature to transfer unused funds from the arbitration account to the state general fund (previously allowed in 1995–97 and 2017–19 biennia).

Who is affected

New vehicle buyers and lessees — Consumers purchasing or leasing new vehicles in Washington will pay an increased arbitration fee at the time of purchase or lease.
New vehicle dealers and leasing companies — Dealers and lessors must collect the fee from consumers and submit it to the Department of Licensing.
Office of the Attorney General — The Attorney General must produce an annual report on the program’s revenue and expenses.
Department of Licensing — The Department of Licensing collects and deposits the fee into the state treasury and manages related administrative tasks.

Effective: July 1, 2026Fiscal impact: The fee increase from $3 to $6 per new vehicle transaction is expected to generate additional revenue for the New Motor Vehicle Arbitration Account, which funds the state’s arbitration program for new vehicle disputes. The bill removes previous restrictions allowing transfers of unused funds to the state general fund, meaning all collected fees must be used for the arbitration program.

Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026, 9:21 PM

Pro/Con Analysis

Potential Benefits (2)

Increases dedicated funding for the state’s new motor vehicle arbitration program, which resolves disputes between consumers and dealers over warranty claims and other covered issues — improving access to timely, low-cost dispute resolution for Washington consumers.
Public SafetyPeopleRef: Sec. 1 (fee increase dedicated to arbitration program)
Mandates annual public reporting of program revenue and expenses, increasing transparency and accountability for how arbitration funds are used — helping consumers and stakeholders assess program effectiveness and efficiency.
Public SafetyPeopleRef: Sec. 1 (annual transparency reporting by Attorney General)

Potential Concerns (3)

Consumers purchasing or leasing new vehicles will pay an additional $3 per transaction starting July 1, 2026 — a $3 increase that adds $30–$60+ over the life of multiple vehicle purchases/leases for typical buyers, with no offsetting benefit.
FinancialRef: Sec. 1 (fee increase from $3 to $6)
Eliminates a fiscal flexibility mechanism that allowed unused arbitration funds to support general state services — reducing the state’s ability to redirect surplus funds during budget shortfalls, though this has not been used since 2019.
FinancialRef: Sec. 1 (removal of transfer authority to general fund)
Imposes a new annual reporting duty on the Attorney General’s office without additional funding, potentially diverting staff time and resources from other legal priorities.
Local GovernmentRef: Sec. 1 (annual reporting requirement on Attorney General)

Who Is Most Affected

New vehicle buyers and lesseesMixed Impact
New vehicle buyers and lessees will pay $3 more per transaction — a direct out-of-pocket cost with no compensating benefit. However, they may benefit from improved dispute resolution access due to increased program funding.
New vehicle dealers and leasing companiesMixed Impact
Dealers and lessors must collect and remit the fee — a minor administrative cost — but face no liability for noncompliance beyond standard enforcement. The fee is collected from consumers, so their net financial impact is neutral.
Office of the Attorney GeneralMixed Impact
The Attorney General gains new transparency responsibilities but no additional funding; however, increased program visibility may strengthen consumer trust in the arbitration process.
Department of LicensingMixed Impact
The Department of Licensing gains a small increase in collection and deposit responsibilities, but no new statutory duties beyond existing ones.
Consumers in vehicle warranty disputesPositive Impact
Consumers involved in warranty or other covered disputes may benefit from a better-funded arbitration program, improving access to fair, low-cost resolution.