BILL REQ. #: H-3711.1
| State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/17/12. Referred to Committee on Business & Financial Services.
AN ACT Relating to common interest community managers; amending RCW 18.85.151; and adding a new chapter to Title 64 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Common interest community association" means real estate
described in a declaration with respect to which a person, by virtue of
the person's ownership of a unit, is obligated to pay for a share of
real estate taxes, insurance premiums, maintenance, or improvement of,
or services or other expenses related to, common elements, other units,
or other real estate described in the declaration.
(2) "Common interest community manager" means a natural person who,
in an advisory capacity, for compensation or in expectation of
compensation, whether acting as an independent contractor to, employee
of, general manager or executive director of, or agent of a common
interest development, provides management or financial services,
negotiates an agreement to provide management or financial services, or
represents himself or herself to act in the capacity of providing
management or financial services to an association governed under
chapter 64.32, 64.34, or 64.38 RCW.
(3) "Department" means the Washington state department of
licensing.
(4) "Director" means the director of the Washington state
department of licensing.
NEW SECTION. Sec. 2 The power of the director is as authorized
under RCW 18.235.040.
NEW SECTION. Sec. 3 To perform services as a common interest
community manager in the state of Washington, a natural person must
fulfill the qualifications for registration as a common interest
community manager and submit a registration and accurate information to
the department. The natural person must meet each of the following
registration requirements:
(1) Be at least eighteen years of age and a citizen or legal
permanent resident of the United States;
(2) Not have been convicted of or pled guilty to a felony or other
similar offense or offenses that involve issues of honesty, financial
matters, or other matters that address moral turpitude within the past
ten years;
(3) Hold, in good standing, an active certified manager of
community associations, administered by the national board of
certification for community association managers; certified property
manager, administered by the institute of real estate management;
association management specialist, administered by community
associations institute; or professional manager of community
associations, administered by community associations institute;
(4) Agree, in writing, to abide by the standards of professional
and ethical conduct as prescribed by the organization conferring the
professional credential that qualifies for the common interest
community manager registration, and to fully cooperate with any
investigation into alleged breaches of the standards of professional
and ethical conduct by the applicant; and
(5) Not have failed to cooperate with any law enforcement or
regulatory agency in any investigation of any law enforcement or
regulatory complaint within the past ten years.
NEW SECTION. Sec. 4 (1) Common interest community managers must
comply with the standards of professional and ethical conduct as
prescribed by the organization conferring the professional credential
that qualifies them for the common interest community manager
registration. Sanctions against the registrant must follow the process
outlined in RCW 18.235.110, in which the director has disciplinary
authority.
NEW SECTION. Sec. 5 This chapter does not apply to the
following:
(1) Any director, officer, or resident of a common interest
community association providing one or more of the services of a common
interest community manager without compensation for such services;
(2) Any person employed or retained by, for, or on behalf of the
common interest community management company or a registered common
interest community manager, assisting in the performance of common
interest community management functions by carrying out administrative,
clerical, financial, or maintenance tasks;
(3) A reserve study professional acting solely as a service
provider in conjunction with the practice of performing a reserve study
as described in chapters 64.34 and 64.38 RCW;
(4) A licensed practicing attorney acting solely as an incident to
the practice of law;
(5) A licensed practicing certified public accountant acting solely
as an incident to the practice of accounting;
(6) A real estate broker or salesperson selling, leasing, renting,
or managing lots within a common interest community;
(7) Any person acting as a receiver, trustee in bankruptcy,
administrator, executor, or guardian acting under a court order or
under the authority of a will or a trust instrument; or
(8) A declarant.
NEW SECTION. Sec. 6 A common interest community manager
registration expires once every two years and may be renewed upon
compliance of all initial qualifications for registration as a common
interest community manager.
NEW SECTION. Sec. 7 Managers of common interest communities in
the state of Washington must fully comply with this chapter within
eighteen months after the effective date of this section.
NEW SECTION. Sec. 8 The uniform regulation of business and
professions act, chapter 18.235 RCW, governs unlicensed practice, the
issuance and denial of registrations, and the discipline of registrants
under this chapter.
Sec. 9 RCW 18.85.151 and 2008 c 23 s 16 are each amended to read
as follows:
This chapter shall not apply to:
(1) Any person who purchases or disposes of property and/or a
business opportunity for that individual's own account, or that of a
group of which the person is a member, and their employees;
(2) Any duly authorized attorney-in-fact acting under a power of
attorney without compensation;
(3) An attorney-at-law in the performance of the practice of law;
(4) Any receiver, trustee in bankruptcy, executor, administrator,
guardian, personal representative, or any person acting under the order
of any court, selling under a deed of trust, or acting as trustee under
a trust;
(5) Any secretary, bookkeeper, accountant, or other office
personnel who does not engage in any conduct or activity specified in
any of the definitions under RCW 18.85.011;
(6) Employees of towns, cities, counties, or governmental entities
involved in an acquisition of property for right-of-way, eminent
domain, or threat of eminent domain;
(7) Only with respect to the rental or lease of individual storage
space, any person who owns or manages a self-service storage facility
as defined under chapter 19.150 RCW;
(8) Any person providing referrals to licensees who is not involved
in the negotiation, execution of documents, or related real estate
brokerage services, and compensation is not contingent upon receipt of
compensation by the licensee or the real estate firm;
(9) Certified public accountants if they do not promote the
purchase, listing, sale, exchange, optioning, leasing, or renting of a
specific real property interest;
(10) Any natural persons or entities including title or escrow
companies, escrow agents, attorneys, or financial institutions acting
as escrow agents if they do not promote the purchase, listing, sale,
exchange, optioning, leasing, or renting of a specific real property
interest;
(11) Investment counselors if they do not promote the purchase,
listing, sale, exchange, optioning, leasing, or renting of a specific
real property interest; ((and))
(12) Common interest community managers as defined in section 1 of
this act; and
(13) Any person employed or retained by, for, or on behalf of the
owner or on behalf of a designated or managing broker if the person is
limited in property management to any of the following activities:
(a) Delivering a lease application, a lease, or any amendment
thereof to any person;
(b) Receiving a lease application, lease, or amendment thereof, a
security deposit, rental payment, or any related payment for delivery
to and made payable to the real estate firm or owner;
(c) Showing a rental unit to any person, or executing leases or
rental agreements, and the employee or retainee is acting under the
direct instruction of the owner or designated or managing broker;
(d) Providing information about a rental unit, a lease, an
application for lease, or a security deposit and rental amounts to any
prospective tenant; or
(e) Assisting in the performance of property management functions
by carrying out administrative, clerical, financial, or maintenance
tasks.
NEW SECTION. Sec. 10 Sections 1 through 8 of this act constitute
a new chapter in Title