Washington has created a limited path for certain electric-vehicle manufacturers to sell their own vehicles through company-owned or controlled dealerships—but it has not ended the state’s franchise-dealer framework. A manufacturer must meet specific historical and operational tests and obtain a vehicle dealer license. Senator Marko Liias’s March 24, 2026 announcement names Rivian and Lucid as examples the law is intended to allow; it does not confirm either has started direct sales under the new law.
What Washington’s new law changes
Washington’s prior law generally treated a manufacturer acting as a dealer, or owning, operating, or controlling a dealership that competes with its dealers, as an unfair practice, subject to statutory exceptions. The 2026 law adds a narrow exception for manufacturers that meet all of its conditions. It does not give every automaker permission to bypass franchised dealers. Washington law, RCW 46.96.185.
The distinction matters: qualifying under the statute and receiving a dealer license are separate from actually opening a dealership or beginning sales. The sponsor’s announcement identifies Rivian and Lucid as examples of intended beneficiaries, not as companies confirmed to be selling directly in Washington. Liias’s March 24, 2026 announcement.
Which manufacturers can qualify?
A manufacturer must satisfy every condition in the statutory test:
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- Be incorporated in the United States.
- Never have entered into a franchise agreement with a motor-vehicle dealer.
- Have operated at least one service facility in Washington by January 1, 2026.
- Exclusively produce battery electric vehicles, with at least 300 of its qualifying vehicles registered in Washington before January 1, 2026. The 300-vehicle figure is an eligibility threshold, not a forecast or sales estimate.
- Through the dealership, sell only its own makes or lines, and only vehicles that are not sold new by a licensed independent franchise dealer.
The law also defines the covered battery-electric-vehicle category and bars arrangements intended to get around the restrictions. A qualifying manufacturer cannot distribute vehicles for a manufacturer that is prohibited from acting as a dealer, and prohibited manufacturers cannot use ownership interests to evade the law. Private parties may seek relief, including an injunction, for violations of this exception. RCW 46.96.185.
Licensing is still required
Meeting the eligibility test does not by itself authorize sales. A qualifying manufacturer must apply for and maintain a vehicle dealer license to own, operate, or control a dealership. The Senate report says the application must include a sworn affidavit from an authorized agent attesting that the manufacturer meets the criteria. It also says the Department of Licensing must revoke the license within 30 days if the manufacturer ceases to qualify. Senate bill report.
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Legislative reports describe a $10,000 penalty for each retail sale or lease transaction consummated by a manufacturer prohibited from acting as a dealer, with enforcement by the Department of Licensing and the Attorney General. Senate bill report; House committee report.
What the fee and incentive provisions say
Different legislative reports describe different versions of the bill’s documentary service fee, so those figures should not be treated as interchangeable. The Senate-passed report described a $250 fee through December 31, 2036, with 35% of the first $25 directed to an EV incentive account and 65% to the Multimodal Transportation Account; it described a later reduction to $225. Senate-passed bill report.
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The House committee report on the amended bill instead described a $225 fee through December 31, 2036, with 35% of the first $25 collected directed to the Electric Vehicle Account for an incentive program and 65% to the Multimodal Transportation Account, followed by a reduction to $200 beginning January 1, 2037. Those are descriptions of the amended bill stage. House committee report.
Liias’s announcement separately says that, starting October 1, the certificate-of-title application fee rises from $15 to $40 for dealer purchases and leases, and that 35% of the additional $25 supports instant rebates for lower-income residents. Sponsor’s announcement. These descriptions are not enough to tell a buyer exactly what fee will be collected or who qualifies for a rebate. Check current Department of Licensing guidance and program rules before relying on them for a transaction.
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Why lawmakers supported and opposed the change
Supporters argued that direct sales could make EVs easier to access, give manufacturers a clearer regulatory framework, contribute to emissions reductions, and help fund EV incentives for lower-income buyers. The House report cites an estimate that direct EV sales could raise adoption by as much as 13% by 2030, attributing it to “independent research” without identifying the original publisher in the report passage. The figure should therefore be treated as an estimate cited in the report, not as a fully attributed or verified forecast. House committee report.
Opponents argued that the exception gives newer EV manufacturers a route around the franchise model used by legacy automakers and could create an uneven competitive field. These are stakeholder concerns recorded in the House report, not findings established by the statute. House committee report.
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