H-4080.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2772

          _______________________________________________

State of Washington      53rd Legislature     1994 Regular Session

By House Committee on Commerce & Labor (originally sponsored by Representatives Heavey and King)

Read first time 02/04/94.

Creating a joint task force to study real estate licensing exemptions.

    AN ACT Relating to exemptions from real estate licensing requirements; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature finds that it has been a common practice for home builders to sell the homes that they have built.  In some cases, this has included sales activities by employees of builders.  Many home builders have been unaware that the law requires a real estate broker's or salesperson's license for this type of activity.  Recent steps taken by the department of licensing to enforce this law have caused alarm and fear in the home builder industry.  Therefore, home builders are seeking an exemption from the real estate licensing laws for themselves and for their employees when engaged in certain activities.

    The legislature further finds that the real estate licensing laws were enacted primarily for the protection of consumers.  It is the policy of the legislature that exceptions to this kind of licensing law be narrowly crafted in order to prevent harm to the citizens of the state.  Therefore, the real estate industry has expressed concern that the state act deliberately when creating categories of exemptions from the real estate licensing law.

NEW SECTION. Sec. 2.  (1) There is hereby created a joint task force on real estate licensing composed of the following members:

    (a) Two members of the house of representatives commerce and labor committee, one from each of the major caucuses, to be appointed by the speaker of the house of representatives;

    (b) Two members of the senate labor and commerce committee, one from each of the major caucuses, to be appointed by the president of the senate; and

    (c) Four members appointed jointly by the president of the senate and the speaker of the house of representatives representing the real estate industry and the home builders' industry in equal numbers.

    (2) The department of licensing real estate and escrow section of the business and professions division shall provide advice to the task force.

    (3) The senate committee services and the office of program research shall provide the staff support as mutually agreed by the cochairs of the task force.  The task force shall designate the cochairs.

    (4) The members of the task force shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

    (5) The task force shall study the feasibility of creating an exemption from the real estate licensing laws for home building companies and their employees who sell homes built and owned by the companies.  If the task force finds that such an exemption is advisable, the task force shall propose draft legislation to the legislature for possible introduction during the 1995 regular legislative session.

    (6) The task force shall report its findings and recommended legislation, if any, to the legislature by December 31, 1994.

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