Date of Adoption: March 16, 2000.

Purpose: Most of these rule changes are a result of regulatory improvement initiatives in compliance with the Governor's Executive Order 97-02. Also defines prospect procurement to clarify statutory definitions, and revises the broker's "pooled interest bearing" trust account rule to comply with 1999 legislation increasing deposit amounts.

Citation of Existing Rules Affected by this Order: Amend WAC 308-124-021 Definitions, adds new subsection to define statutory term "prospect procurement" as it relates to real estate licensees standards of practice.

Amend WAC 308-124E-013 Administration of funds held in trust -- Real estate and business opportunity transactions, revises broker's "pooled interest bearing" trust account deposit threshold to conform with 1999 legislative action enacted under SB 5442.

Amend WAC 308-124H-011 Course approval required, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations.

New WAC 308-124H-012 Course titles reserved for prescribed curriculum courses, this section has been moved and proposed as a new section to enhance understanding of process.

New WAC 308-124H-013 Application process for previously approved courses, this section is proposed to address department's need for processing renewal applications.

Amend title and WAC 308-124H-025 General requirements for course approval, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations, and changing educational standards.

New WAC 308-124H-026 Secondary education provider course content approval application, proposed rule needed to address and clarify current department operating policies and procedures.

New WAC 308-124H-027 Distance education delivery methods -- Defined, this section is needed to address new education course delivery technologies and changing education standards and practices.

New WAC 308-124H-028 Interactive -- Defined, this section is needed to address and define new education course delivery standards and practices.

New WAC 308-124H-029 Distance education delivery method approval required, this section is needed to describe course requirements for new education course delivery technologies and changing education standards and practices.

New WAC 308-124H-031 Distance education delivery methods certified by the Association of Real Estate License Law Officials (ARELLO), this section provides a course approval alternative for interested education providers and course developers.

New WAC 308-124H-034 Courses completed in other jurisdictions, this section has been moved and proposed as a new section to enhance understanding of process, and to address changing educational and regulatory standards.

New WAC 308-124H-039 Changes and updates in approved courses, portions of this new section contain language moved from previous sections, and also reflect amendatory changes to address changing department policy considerations.

Amend title and WAC 308-124H-041 Certificate of course completion, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations, and changing educational standards.

New WAC 308-124H-042 Courses offered in symposium or conference format, proposed rule needed to address and clarify department's policies regarding changing industry standards and practices.

Amend WAC 308-124H-051 Disciplinary action -- Procedures -- Investigation, proposed change deletes subsection (3) as it is duplicative of provisions in WAC 308-124H-300.

Amend WAC 308-124H-061 Grounds for denial or withdrawal of course approval, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations, and changing educational standards.

Amend WAC 308-124H-062 Hearing procedures, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations, and changes necessitated by previous rule adoptions.

Amend title and WAC 308-124H-210 School and school administrator approval required, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations.

New WAC 308-124H-221 Application process for previously approved schools, this section is proposed to address department's need for processing renewal applications.

Amend WAC 308-124H-230 Application for school approval, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations, and changes necessitated by previous rule adoptions.

New WAC 308-124H-245 Administrator responsibilities, this section has been moved and proposed as a new section to address enhanced requirements reflecting changing industry and regulatory standards.

New WAC 308-124H-246 Affiliated representative of an approved school -- Defined -- Tasks and duties described, this proposed section addresses enhanced requirements reflecting changing industry and regulatory standards.

Amend WAC 308-124H-260 Required publication, proposed changes reflect streamlining, reformatting, modernizing, and eliminating changes to address regulatory improvement rule review plan recommendations.

Amend WAC 308-124H-270 Course description, proposed changes reflect streamlining, reformatting, modernizing, and eliminating changes to address regulatory improvement rule review plan recommendations.

Amend WAC 308-124H-290 Change of ownership or circumstances, proposed changes reflect streamlining, reformatting, modernizing, and eliminating changes to address regulatory improvement rule review plan recommendations.

Amend WAC 308-124H-300 Disciplinary action -- Procedures -- Investigation, proposed changes reflect the addition of distance education delivered courses to the requirements.

Amend title and WAC 308-124H-310 Grounds for denial or withdrawal of school or school administrator approval, proposed changes reflect regulatory improvement rule review plan recommendations.

Amend WAC 308-124H-320 Hearing procedure, proposed change necessitated by previous rule adoptions.

Amend WAC 308-124H-510 Instructor approval required, proposed changes reflect streamlining, reformatting, and modernizing to address regulatory improvement rule review plan recommendations.

New WAC 308-124H-525 Application process for previously approved instructors, this section is proposed to address department's need for processing renewal applications.

Amend WAC 308-124H-530 Certificate of instructor approval, proposed change needed to address and clarify department's current policies and practices.

New WAC 308-124H-551 Guest lecturer -- Defined, this section is proposed to address department's current policies and procedures.

Amend WAC 308-124H-580 Hearing procedure, proposed change necessitated by previous rule adoptions.

Amend WAC 308-124H-800 Real estate course, school, and instructor approval fees, proposed changes reflect streamlining, reformatting, modernizing, and eliminating changes to address regulatory improvement rule review plan recommendations.

Repeal WAC 308-124H-021 Approval of courses, 308-124H-220 Approval of schools, 308-124H-240 Administrator qualifications, and 308-124H-520 Approval of instructors, these sections have been moved to other sections and are no longer needed.

Statutory Authority for Adoption: RCW 18.85.040.

Other Authority: The Governor's Order on Regulatory Improvement 97-02.

Adopted under notice filed as WSR 00-03-063 on January 18, 2000.

Changes Other than Editing from Proposed to Adopted Version: All the proposed amendatory changes to WAC 308-124H-270(10) were eliminated, except deleting the word "substantive" in line three of the subsection.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 15, Amended 18, Repealed 4.

Number of Sections Adopted Using Negotiated Rule Making: New 15, Amended 20, Repealed 4; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: July 1, 2000.

March 28, 2000

Fred Stephens

Director

OTS-3710.1

AMENDATORY SECTION(Amending WSR 99-03-042, filed 1/14/99, effective 2/14/99)

WAC 308-124-021
Definitions.

Words and terms used in these rules shall have the same meaning as each has under chapter 18.85 RCW unless otherwise clearly provided in these rules, or the context in which they are used in these rules clearly indicates that they be given some other meaning.

(1) "Designated broker" is the natural person designated by a corporation, limited liability company, limited liability partnership or partnership to act as a broker on behalf of the corporation, limited liability company, limited liability partnership or partnership.      The designated broker must be an officer of the corporation, manager or member of the limited liability company, partner of the limited liability partnership or a general partner of the partnership and must be separately qualified for licensure as a real estate broker.

(2) "Principal owner" is a person who owns or controls, directly or indirectly, ten percent or more of a real estate brokerage, regardless of whether such interest stands in the person's true name or in the name of a nominee.

(3) "Individual broker" is the natural person who owns a sole proprietorship brokerage company and is the licensed broker of the firm.

(4) "Affiliated licensees" are the natural persons licensed as salespersons, associate brokers, and/or branch managers employed by a real estate broker and who are licensed to represent a broker in the performance of any of the acts specified in chapter 18.85 RCW.

(5) "Prospect procurement" is initiating contact with a prospective buyer, seller, landlord or tenant for the purpose of engaging in a sale, lease or rental of real estate or a business opportunity, and the contact is initiated under a promise of compensation.

[Statutory Authority: RCW 18.85.040 and the Governor's Executive Order on Regulatory Improvement 97-02.      99-03-042, § 308-124-021, filed 1/14/99, effective 2/14/99.      Statutory Authority: RCW 18.85.040.      98-01-107, § 308-124-021, filed 12/17/97, effective 1/17/98; 90-23-039, § 308-124-021, filed 11/15/90, effective 12/16/90; 88-24-059 (Order PM 811), § 308-124-021, filed 12/7/88; 87-20-091 (Order PM 683), § 308-124-021, filed 10/7/87; 81-05-016 (Order RE 128), § 308-124-021, filed 2/10/81; 78-11-052 (Order RE 125), § 308-124-021, filed 10/23/78; Order RE 120, § 308-124-021, filed 9/20/77; Order RE 114, § 308-124-021, filed 7/2/75; Order RE-102, § 308-124-021, filed 10/28/71.]

OTS-3711.1

AMENDATORY SECTION(Amending WSR 91-23-006, filed 11/7/91, effective 12/8/91)

WAC 308-124E-013
Administration of funds held in trust -- Real estate and business opportunity transactions.

The procedures in this section are applicable to funds received by the broker in connection with real estate sales or business opportunity transactions or options thereon.      These procedures are in addition to the requirements of the general trust account procedures contained in WAC 308-124E-012.

(1) Bank accounts shall be designated as trust accounts in the firm or DBA name of the real estate broker as licensed.      Trust bank accounts for real estate sales or business opportunity transactions shall be interest bearing demand deposit accounts.      These accounts shall be established as described in RCW 18.85.310 and this section.

(a) The broker shall maintain a pooled interest bearing trust account identified as housing trust fund account for deposit of trust funds which are ((five)) ten thousand dollars or less.

Interest income from this account will be paid to the department by the depository institution in accordance with RCW 18.85.310(7) after deduction of reasonable bank service charges and fees, which shall not include check printing fees or fees for bookkeeping systems.      The department shall remit the funds to the state treasurer.

(b) The agent shall disclose in writing to the party depositing more than ((five)) ten thousand dollars that the party has an option between (i) and (ii) below;

(i) All trust funds not required to be deposited in the account specified in (a) of this subsection shall be deposited in a separate interest-bearing trust account for the particular party or party's matter on which the interest will be paid to the party(ies); or

(ii) In the pooled interest-bearing account specified in (a) of this subsection if the parties to the transaction agree in writing.

(c)(i) For accounts established as specified in (a) of this subsection, the broker will maintain an additional ledger card with the heading identified as "Housing trust account interest." As the monthly bank statements are received, indicating interest credited, the broker will post the amount to the pooled interest ledger card. When the bank statement indicates that the interest was paid to the state or bank fees were charged, the broker will debit the ledger card accordingly.

(ii) For accounts established as specified in (b)(i) of this subsection, the interest earned or bank fees charged will be posted to the individual ledger card.

(d) When the bank charges/fees exceed the interest earned, causing the balance to be less than trust account liability, the broker shall within one banking day after receipt of such notice, deposit funds from the brokers business account or other non-trust account to bring the trust account into balance with outstanding liability.      The broker may be reimbursed by the party depositing the funds for these charges for accounts established as specified in (b)(i) of this subsection, if the reimbursement is authorized in writing by the party depositing the funds.      For accounts established under (a) of this subsection, the broker will absorb the excess bank charges/fees as a business expense.

(2) A separate check shall be drawn on the real estate trust bank account, payable to the broker as licensed, for each commission earned, after the final closing of the real estate or business opportunity transaction.      Each commission check shall be identified to the transaction to which it applies.

(3) No disbursements from the real estate trust bank account shall be made in advance of closing of a real estate or business opportunity transaction or before the happening of a condition set forth in the earnest money agreement, to any person or for any reason, without a written release from both the purchaser and seller; except that

(i) If the agreement terminates according to its own terms prior to closing, disbursement of funds shall be made as provided by the agreement without a written release; and

(ii) Funds may be disbursed to the escrow agent designated in writing by the purchaser and seller to close the transaction, reasonably prior to the date of closing in order to permit checks to clear.

(4) When a transaction provides for the earnest money deposit/note or other instrument to be held by a party other than the broker, the broker shall deliver the deposit to the party designated to hold the funds, unless the parties to the transaction instruct otherwise in writing.      The delivery shall be made within one banking day after all parties to the transaction have signed the agreement.      A dated receipt will be obtained and placed in the transaction file.

[Statutory Authority: RCW 18.85.040.      91-23-006, § 308-124E-013, filed 11/7/91, effective 12/8/91; 90-23-039, § 308-124E-013, filed 11/15/90, effective 12/16/90; 88-20-037 (Order PM 775), § 308-124E-013, filed 9/30/88.      Statutory Authority: RCW 18.85.310.      88-16-102 (Order 755), § 308-124E-013, filed 8/3/88; 88-06-040 (Order PM 712), § 308-124E-013, filed 3/1/88.]

OTS-3712.2

AMENDATORY SECTION(Amending WSR 95-03-012, filed 1/5/95, effective 7/1/95)

WAC 308-124H-011
Course approval required.

(1) Any ((approved school or approved instructor desiring to offer clock hour courses must receive)) education provider or course developer may submit a course to the department for approval.

(2) Course approval by the department is required prior to the date on which ((it first offers)) the course(((s))) is offered for clock hour credit.

(((2) Any approved school or approved instructor desiring to offer fundamentals, business management, broker management, real estate law, and/or practices shall utilize the most recent course curriculum or course content prescribed by the department.      Approved school administrators shall ensure each student receives the course curriculum or course content and completes a course evaluation form approved by the department.)) (3) Each application for approval of a course shall be submitted to the department on the appropriate application form provided by the department.

(4) The director or designee shall approve, disapprove, or conditionally approve applications based upon criteria established by the commission.

(5) Upon approval, disapproval or conditional approval, the applicant will be so advised in writing by the department.      Notification of disapproval shall include the reasons therefor.

(6) Approval shall expire two years after the effective date of approval.

[Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-011, filed 1/5/95, effective 7/1/95.      Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-011, filed 4/20/90, effective 8/1/90.]

Any approved school desiring to offer fundamentals, business management, broker management, real estate law, and/or real estate practices shall utilize the most recent course curriculum prescribed by the department, and shall include in its title the phrase "real estate fundamentals," "real estate brokerage management," "real estate law," "business management," or "real estate practices" if submitted for approval for clock hours. No other courses shall use these phrases in their titles.

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(1) If there are no changes in course content or in the original course approval application for a previously approved course, the course will be approved upon receipt of a course renewal application and payment of the required fee.

(2) If there are changes in course content or in the original course approval application for a previously approved course, other than updating for changes required by WAC 308-124H-039, the application will not be processed as a renewal, and will require completion of a course approval application and payment of the required fee.

(3) If a course renewal application or a course approval application is submitted at least thirty days prior to the current course expiration date, the previous course approval shall remain in effect until action is taken by the director.

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Courses shall meet the following requirements:(1) Be offered by a private entity approved by the director to operate as a school;

(2) Be offered by a tax-supported, public technical or community college or other institution of higher learning that certifies clock hours as indicated in RCW 18.85.010(9), consistent with the approval standards prescribed by the director and this chapter;

(3) Have a minimum of three hours of ((classroom)) course work or instruction for the student.      A ((classroom)) clock-hour is a period of fifty minutes of actual ((classroom or workshop)) instruction((, exclusive of examination time));

(((2))) (4) Provide practical information related to the practice of real estate in any of the following real estate topic areas: Fundamentals, practices, principles/essentials, real estate law, legal aspects, brokerage management, business management, taxation, appraisal, evaluating real estate and business opportunities, property management and leasing, construction and land development, ethics and standards of practice, ((escrow closing/settlement)) real estate closing practices, current trends and issues, finance, hazardous waste and other environmental issues, commercial, ((advertising (Regulation Z), agent supervision and broker responsibility, selling, listing, and marketing of)) real estate sales and marketing, ((theory and practices of relocation, or)) instructor development or the use of computers and/or other technologies as applied to the practice of real estate;

(((3))) (5) Be under the supervision of an ((approved)) instructor approved to teach the ((course in the classroom at all sessions and offered by an approved school provided that, if the instructional methods include the use of prerecorded audio and/or visual instructional materials, presentation shall be under the supervision of a monitor at all times and an approved instructor who shall, at a minimum, be available to respond to specific questions from students;

(4) Shall not include the following topics for clock hours: Product marketing, personal motivation, sales motivation, personal promotion, stress management, personal improvement, personality profiles, office and personal skills, or sales promotion.)) topic area, who shall, at a minimum, be available to respond to specific questions from students on an immediate or reasonably delayed basis;

(6) The following types of courses will not be approved for clock hours: Course offerings in mechanical office and business skills, such as, keyboarding, speed-reading, memory improvement, language, and report writing; orientation courses for licensees, such as those offered by trade associations; and personal and sales motivation courses or sales meetings held in conjunction with a licensee's general business.      Clock hours will not be awarded for any course time devoted to ((staff meetings, examinations,)) meals or transportation((.));

(((5))) (7) Courses of thirty clock hours or more which are submitted for approval shall include a comprehensive examination(s) and answer key(s) of no fewer than three questions per clock hour with a minimum of ninety questions, and a requirement of passing course grade of at least seventy percent; essay question examination keys shall identify the material to be tested and the points assigned for each question;

(((6))) (8) Include textbook or instructional materials approved by the director, which shall be kept accurate and current((.      Course materials shall be updated no later than thirty days after the effective date of a change in statute or rules;

(7) Include in its title the phrase "real estate fundamentals," "real estate brokerage management," "real estate law," "business management," or "real estate practices" if submitted for approval for clock hours pursuant to WAC 308-124H-011.      No other courses shall use these phrases in their titles)); and

(((8))) (9) Not have a title which misleads the public as to the subject matter of the course((;

(9) Be offered by a tax-supported, public technical or community college or any other institution of higher learning that may certify clock hours as indicated in RCW 18.85.010(9) or by a private entity approved by the director to operate as a school;

(10) Any change in course content or material other than updating for statute or rule changes, shall be submitted to the department no later than twenty days prior to the date of using the changed course content material, for approval by the director;

(11) Changes in course instructors may be made only if the substitute instructors are currently approved to teach the course pursuant to chapter 308-124H WAC;

(12) A course completed in another jurisdiction may be approved for clock hour credit if:

(a) The course was offered by a tax-supported, public technical or community college, or any other institution of higher learning, or by a national institution with uniform scope and quality of representation, or was approved to satisfy an education requirement for real estate licensing or renewal and offered by an entity approved to offer the course by the real estate licensing agency in that jurisdiction; and

(b) The course satisfies the requirements of subsections (1) through (6) of this section, and includes a comprehensive examination and requirement of a passing course grade of at least seventy percent; and/or

(c) If the director determines that the course substantially satisfies the requirements of the real estate fundamentals course required under RCW 18.85.095 or satisfies the requirements of the law, brokerage management and business management courses required under RCW 18.85.090)).

[Statutory Authority: RCW 18.85.040 and chapter 18.86 RCW.      97-01-027, § 308-124H-025, filed 12/10/96, effective 1/10/97.      Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-025, filed 1/5/95, effective 7/1/95.      Statutory Authority: RCW 18.85.040.      91-23-006, § 308-124H-025, filed 11/7/91, effective 12/8/91.      Statutory Authority: RCW 18.85.040, [18.85].085, [18.85].090 and [18.85].095.      91-07-029, § 308-124H-025, filed 3/14/91, effective 4/14/91.      Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-025, filed 4/20/90, effective 8/1/90.]

(1) An approved school may offer courses that are currently approved for another education provider or course developer provided a secondary provider course content approval application is submitted to the department;

(2) The applicant must also provide written authorization by the original education provider/developer permitting use of the course content by the applicant;

(3) A certificate of course approval will be provided to the secondary education provider;

(4) The applicant must use the course approval number issued by the department on all certificates of course completion;

(5) Course approval is valid only for the dates of the original education provider/course developer's approval; and

(6) Secondary provider course content approval applications may not be used for real estate fundamentals, real estate brokerage management, real estate law, business management, or real estate practices.

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As used in this chapter, a distance education delivery method is one in which instruction takes place in other than a live classroom setting, the instructor and the student are in physically separate locations, and interactive instructional methods such as video-based instruction, computer conferencing, video conferencing, interactive audio, interactive computer software, or internet-based instruction are used.

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(1) As used in this chapter, interactive means the course structure and technologies promote active student involvement with the course content, including the ability to:

(a) Access or bypass optional content, if applicable;

(b) Submit questions or answer test items, and receive direct feedback; and

(c) Communicate with the instructor and/or other students on an immediate or reasonably delayed basis.

(2) Interactive instruction specifically excludes courses that only provide passive delivery of instructional content.

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Applicants are required to submit an application for each separate distance education delivery method for which they propose to offer approved courses for clock hours. When submitting a distance education delivery method application, the following minimum criteria must be provided by the applicant:

(1) Specify the course learning objectives for each learning unit and clearly demonstrate that the learning objectives cover the subject matter. Objectives must be specific to ensure that all content is covered adequately to ensure mastery;

(2) Demonstrate how mastery of the material is provided by:

(a) Dividing the material into major learning units, each of which divides the material into modules of instruction;

(b) Specifying learning objectives for each learning unit or module of instruction. Learning objectives must be comprehensive enough to ensure that if all the objectives are met, the entire content of the course will be mastered;

(c) Specifying an objective, quantitative criterion for mastery used for each learning objective and provide a structured learning method designed to enable students to attain each objective;

(3) Demonstrate that the course includes the same or reasonably similar informational content as a course that would otherwise qualify for the requisite number of clock hours of classroom-based instruction;

(4) Describe consistent and regular interactive events appropriate to the delivery method. The interactive elements must be designed to promote student involvement in the learning process, and must directly support the student's achievement of the course learning objectives. The application must identify the interactive events included in the course and specify how the interactive events contribute to achievement of the stated learning objectives;

(5) Demonstrate how the course provides a mechanism of individual remediation to correct any deficiencies identified during the instruction and assessment process;

(6) Measure, at regular intervals, the student's progress toward completion of the mastery requirement for each learning unit or module. In the case of computer-based instruction, the course software must include automatic shutdown after a period of inactivity;

(7) Demonstrate that approved instructors are available to answer questions regarding course content at reasonable times and by reasonable means, including in-person contact, individual and conference telephone calls, e-mail and FAX;

(8) Demonstrate how reasonable security will be provided to ensure that the student who receives credit for the course is the student who enrolled in and completed the course. Both the approved school and the student must certify in writing that the student has completed the course, and the required number of clock hours;

(9) Provide a complete description of any hardware, software, or other technology to be used by the provider and needed by the student to effectively engage in the delivery and completion of the course material and an assessment of the availability and adequacy of the equipment, software, or other technologies to the achievement of the course's instructional claims; and

(10) Provide an orientation session with the instructor or an affiliated representative of an approved school. Mechanisms must be clearly in place which allow students an early orientation to discuss course specifics.

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An applicant who provides evidence of certification of the distance education delivery method for his or her course by the Association of Real Estate License Law Officials (ARELLO) need not submit an application for approval of the same distance education delivery method when delivering the same course within the state of Washington.

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A course completed in another jurisdiction may be approved for clock hour credit if:

(1) The course was offered by a tax-supported, public technical or community college, or any other institution of higher learning, and the director determines that the course substantially satisfies the general requirements for course approval consistent with the intent of this chapter;

(2) The course was approved to satisfy an education requirement for real estate licensing or renewal and offered by an entity approved to offer the course by the real estate licensing agency in that jurisdiction; or

(3) If the director determines that the course substantially satisfies the general requirements for course approval consistent with the intent of this chapter.

[]

(1) Course materials shall be updated no later than thirty days after the effective date of a change in federal, state, or local statutes or rules.

(2) Any change in course content or material other than updating for statute or rule changes, shall be submitted to the department prior to the date of using the changed course content material, for approval by the director.

(3) Changes in course instructors may be made only if the substitute instructors are currently approved to teach the topic area pursuant to chapter 308-124H WAC.

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Each approved school shall issue a certificate of course completion ((on a form, sample provided by the department,)) to students ((which)) who have satisfactorily completed the course requirements. The certificate shall include the following information:

(1) ((School's identification number issued by the department of licensing;

(2))) Student's name;

(2) School's name and identification number issued by the department;

(3) The course commencement date and completion date;

(4) Course title;

(5) Clock hours for the course;

(6) School administrator's signature;

(7) Course identification number issued by the department;

(8) Instructor name and number; and

(9) Completion of a required examination, if applicable.

[Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-041, filed 1/5/95, effective 2/5/95.      Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-041, filed 4/20/90, effective 8/1/90.]

(1) Approved schools offering courses in a symposium or conference format with two or more modules of independent instruction may issue certificates of course completion for fewer clock hours than approved by the department on their original course approval application; and

(2) Students must complete a minimum of three clock hours of instruction to receive clock hour credit.

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(1) The department shall have the authority on its own motion or upon complaint made to it to investigate or audit any course to determine compliance with chapter 18.85 RCW and with the rules and regulations of this chapter.

(2) Complaints concerning approved courses should be made in writing to the department and contain the following information when appropriate:

(a) The complainant's name, address, and telephone number;

(b) School name, address, and telephone number;

(c) Instructor(s) name;

(d) Nature of complaint and facts detailing dates of attendance, termination date, date of occurrence, names, addresses and positions of school officials contacted, and any other pertinent information;

(e) An explanation of what efforts if any, have been taken to resolve the problem with the school;

(f) Copies of pertinent documents, publications, and advertisements.

(((3) All approved courses shall be subject to periodic visits by an official representative of the department who shall observe classroom activities, evaluate course content and instructor proficiency to ensure that courses are being taught in accordance with the provisions set forth.))

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-051, filed 4/20/90, effective 8/1/90.]

Course approval may be denied or withdrawn if the instructor or any owner, ((employee, or)) administrator or affiliated representative of a school, or a course provider or developer:

(1) ((Has had any disciplinary action taken against his/her professional license in this or any other jurisdiction;

(2) Falsified any student records or clock hour certificates;

(3) Falsified any)) Submits a false or incomplete course application or any other information required to be submitted to the department;

(((4) Attempted in any manner to discover, or to impart to any license candidate, the content of and/or answer to any real estate license examination question(s);

(5) Violated any provision in chapter 18.85 RCW or the rules promulgated thereunder;

(6) Failed to cooperate with the department in any investigation or hearing;

(7) Has been convicted of a crime;

(8) Violated any of the provisions of any local, state, or federal antidiscrimination law;

(9) Continued to teach or offer any real estate subject matter whereby the interests of the public are endangered, after the director, by order in writing, stated objections thereto;

(10) Offered, sold, or awarded any clock hours without requiring the student to successfully complete the clock hours for which the course was approved;

(11) Accepted registration fees and not supplied the service and/or failed to refund the fees within thirty days of not supplying the service;

(12) Represented in any manner that the school is associated with a "college" or "university" unless it meets the standards and qualifications of and has been approved by the state agency having jurisdiction;

(13) Represented that a school is recommended or endorsed by the state of Washington or by the department, provided that a school authorized to offer clock hours under this chapter may state: "This school is approved under chapter 18.85 RCW";

(14) Advertised, published, printed, or distributed false or misleading information;

(15) Solicited, directly or indirectly, information from applicants for a real estate license following the administration of any real estate examination to discover the content of and/or answer to any examination question or questions;

(16) Has failed to meet the requirements of this chapter.)) (2) Includes in its title the phrase "real estate fundamentals," "real estate brokerage management," "real estate law," "business management," and "real estate practice" if the course was not submitted for approval of clock hours pursuant to WAC 308-124H-012;

(3) If the title of the course misleads the public and/or licensees as to the subject matter of the course;

(4) If course materials are not updated within thirty days of the effective date of a change in the statute or rules;

(5) If course content or material changes are not submitted to the department for approval prior to the date of using the changed course content.

[Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-061, filed 1/5/95, effective 2/5/95.      Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-061, filed 4/20/90, effective 8/1/90.]

Upon notice of course denial or disapproval or ((issuance of charges)) withdrawal of course approval, a person is entitled to a hearing conducted in accordance with the Administrative Procedure Act, chapter 34.05 RCW, and the provisions of WAC 308-124-025, 308-124-035 and 308-124-045.

To exercise the right to a hearing under this section, a person must request a hearing within twenty days after receipt of the notice of denial, disapproval or ((charges)) withdrawal of course approval.

Any person aggrieved by a final decision of the director is entitled to judicial review under the provisions of the Administrative Procedure Act, chapter 34.05 RCW.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-062, filed 4/20/90, effective 8/1/90.]

((Any school desiring to offer clock hour courses must be approved)) (1) School and school administrator approval by the department is required prior to the date on which ((it first offers)) courses are offered for clock hour credit.

(2) Each application for approval of a school or school administrator shall be submitted to the department on the appropriate application form provided by the department.      The most recent application form shall be obtained from the department prior to submission.

(3) The director or designee shall approve or disapprove applications based upon criteria established by the commission.      The director or designee shall approve only complete applications which meet the requirements of this chapter.

(4) Upon approval or disapproval the applicant will be so advised in writing by the department.      Notification of disapproval shall include the reasons therefor.

(5) No school for which approval is required shall promote a course for clock hour credit prior to approval of the school.

(6) No school shall allow an instructor for whom approval is required to supervise a course for clock hour credit prior to approval of the instructor.

(7) No school shall issue to a student certification for completion of an approved course unless the course had been approved prior to the first day of instruction.

(8) Approval shall expire two years after the effective date of approval.

(9) School names submitted that are similar to those currently approved shall not be granted approval.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-210, filed 4/20/90, effective 8/1/90.]

(1) If there are no changes in the original school or school administrator approval application for a previously approved school or school administrator, the school or school administrator will be approved upon receipt of a school or school administrator renewal application and payment of the required fee.

(2) If there are changes in the original school or school administrator approval application for previously approved schools or school administrators, the application will not be processed as a renewal, and will require completion of a school or school administrator approval application and payment of required fees.

(3) If a school or school administrator renewal application or a school or school administrator approval application is submitted at least thirty days prior to the current school expiration date, the previous school or school administrator approval shall remain in effect until action to approve or disapprove the application is taken by the director.

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An application for school approval shall include the following information attested to by the school's administrator, who shall be responsible for administration of the school:

(1) The complete legal name of the school, current telephone number, current mailing address, the school's administrative office address, and date of establishment;

(2) The form of ownership of the school, whether sole proprietorship, partnership, limited partnership, or corporation, limited liability company or limited liability partnership;

(3) ((The name(s) of the corporation, partnership, limited partnership or sole proprietorship, and the names, addresses and telephone numbers of all directors, with the exception of trade association directors, officers, and all those with ten percent or more ownership interest;

(4))) If the school is a corporation or a subsidiary of another corporation, current evidence of registration with the Washington secretary of state's office and the name, address, and telephone number of the corporation's registered agent;

(((5))) (4) The administrator's name, ((address, telephone number,)) and evidence of previous experience in administration of educational institutions, courses or programs, previous experience in the administration of business activities related to real estate, or administrative experience in the field of real estate;

(((6))) (5) The publication required under WAC 308-124H-260 and the course description required under WAC 308-124H-270.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-230, filed 4/20/90, effective 8/1/90.]

Each school administrator shall be responsible for performing the following:

(1) Ensure that the school, course(s), and instructor(s) are all currently approved before offering clock hour courses;

(2) Ensure that all instructors are approved to teach in the appropriate topic area(s);

(3) Sign and verify all course completion certificates;

(4) Maintain all required records for five years, including attendance records, required publications, and course evaluations;

(5) Safeguard comprehensive examinations;

(6) Ensure the supervision and demonstrate responsibility for the conduct of employees and individuals affiliated with the school;

(7) Periodically review courses and advise department of content currency as required;

(8) Ensure each student is provided a course curriculum; and

(9) Ensure each student is provided a course evaluation form.

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(1) An affiliated representative of an approved school is the natural person employed by or associated with an approved real estate school, and who is authorized by the school administrator to perform the following tasks and duties:

(a) Conduct student orientation sessions;

(b) Provide technical and/or procedural advice regarding course requirements and program operations;

(c) Perform routine or periodic audits of student progress; and

(d) Perform other tasks delegated by the approved school administrator, not requiring the interpretation of course content or subject matter expertise.

(2) Responsibility for an affiliated representative in the performance of the tasks and duties described above shall rest with the approved school administrator.

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Each school shall have available to prospective and enrolled students a publication containing the following information:

(1) Date of publication;

(2) Name and address of school.      The name of the administrator and telephone number(s) of the school's administrative offices;

(3) A list of courses, ((including the clock hours approved for each course and the specific educational requirements under chapter 18.85 RCW that will be met by completion of the course.      Such lists shall be accurate as of the date of publication)) as outlined in WAC 308-124H-270;

(4) Description of all course prerequisites;

(5) The school's policy regarding:

(a) Admission procedure;

(b) Causes for dismissal and conditions for readmission;

(c) Attendance requirements, leave, absences, makeup work, and tardiness;

(d) Standards of progress required of the student, including a definition of the grading system of the school, the minimum grades considered satisfactory, and the conditions for reentrance for those students whose course of study is interrupted;

(e) Refund policy of registration or tuition fees, record retrieval fee, or any other charges, including procedures a student shall follow to cancel enrollment before or after instruction has begun;

(6) The statement that: "This school is approved under chapter 18.85 RCW; inquiries regarding this or any other real estate school may be made to the: Washington State Department of Licensing, Real Estate Program, P.O. Box ((9012)) 9015, Olympia, Washington ((98504)) 98507-9015";

(7) Dated supplements or errata sheets so as to maintain accuracy of the information in the publication, which shall clearly indicate that such information supersedes that which it contradicts and/or replaces elsewhere in the publication.

[Statutory Authority: RCW 18.85.040.      90-23-039, § 308-124H-260, filed 11/15/90, effective 12/16/90; 90-10-010, § 308-124H-260, filed 4/20/90, effective 8/1/90.]

Each approved school shall have available for distribution to prospective and enrolled students a course description containing the following information:

(1) Name of approved school;

(2) Date(s) and location of the course;

(3) The course title;

(4) The educational objectives of the course;

(5) The type of instruction (e.g., live classroom((, lecture, audio visual, computer assisted)) or distance education) in the course and the length of time required for completion;

(6) The number of clock hours approved for the course, or, a statement that an application for approval is pending;

(7) Name(s) of instructors when available;

(8) Equipment and supplies which the student must provide;

(9) Fees for the course;

(10) The specific education requirements under chapter 18.85 RCW or chapter 308-124H WAC which will be met upon completion of the course students shall be informed, that for ((substantive)) courses of thirty clock hours or more, a comprehensive examination is available and is mandatory to satisfy the requirements of RCW 18.85.090 and 18.85.095;

(11) Cancellation policy; and

(12) Tuition refund policy.

[Statutory Authority: RCW 18.85.040.      91-23-006, § 308-124H-270, filed 11/7/91, effective 12/8/91; 90-10-010, § 308-124H-270, filed 4/20/90, effective 8/1/90.]

A change in the sole proprietor of a school, in the majority interest of general partners of a partnership owning a school, or in a majority stock ownership of a school shall be deemed a change of ownership.

Upon change of ownership((,)) or administrator ((or address of school)), approval shall continue provided that a new application for approval shall be submitted to the department within twenty days after a change of ownership((,)) or administrator((, or address)).      The administrator must submit a notarized statement of the change asserting that all conditions required in these rules are being met.      The school may continue to offer courses under the prior approval until action is taken on the new application. The school administrator is responsible for notifying the department of address changes.

In case of bankruptcy, a notarized statement reporting the information shall be filed with the department within twenty days.

Unless the above conditions are met, school approval shall be terminated upon a change of ownership.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-290, filed 4/20/90, effective 8/1/90.]

(1) The department shall have the authority, on its own motion or upon complaint made to it, to investigate or audit any school to determine compliance with chapter 18.85 RCW and with the rules and regulations of this chapter.

(2) Complaints concerning approved schools should be made in writing to the department and contain the following information when appropriate:

(a) The complainant's name, address, and telephone number;

(b) School name, address, and telephone number;

(c) Instructor(s) name;

(d) Nature of complaint and facts detailing dates of attendance, termination date, date of occurrence, names, addresses and positions of school officials contacted, and any other pertinent information;

(e) An explanation of what efforts if any, have been taken to resolve the problem with the school;

(f) Copies of pertinent documents, publications, and advertisements.

(3) All approved schools shall be subject to periodic visits by an official representative for the department who ((shall)) may observe classroom and distance education activities, evaluate course content, exams and instructor proficiency to ensure that courses are being taught in accordance with the provisions ((set forth)) of this chapter.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-300, filed 4/20/90, effective 8/1/90.]

Approval may be denied or withdrawn if the instructor or any owner, ((employee, or)) administrator, or affiliated representative of a school:

(1) Has had any disciplinary action taken against his/her professional license in this or any other jurisdiction;

(2) Falsified any student records or clock hour certificates;

(3) Falsified any application or any other information required to be submitted to the department;

(4) Attempted in any manner to discover, or to impart to any license candidate, the content of and/or answer to any real estate license examination question(s);

(5) Violated any provision in chapter 18.85 RCW or the rules promulgated thereunder;

(6) Failed to cooperate with the department in any investigation or hearing;

(7) Has been convicted of a crime within the preceding ten years;

(8) Violated any of the provisions of any local, state, or federal antidiscrimination law;

(9) Continued to teach or offer any real estate subject matter whereby the interests of the public are endangered, after the director, by order in writing, stated objections thereto;

(10) Offered, sold, or awarded any clock hours without requiring the student to successfully complete the clock hours for which the course was approved;

(11) Accepted registration fees and not supplied the service and/or failed to refund the fees within thirty days of not supplying the service;

(12) Represented in any manner that the school is associated with a "college" or "university" unless it meets the standards and qualifications of and has been approved by the state agency having jurisdiction;

(13) Represented that a school is recommended or endorsed by the state of Washington or by the department, provided that a school authorized to offer clock hours under this chapter may state: "This school is approved under chapter 18.85 RCW";

(14) Advertised, published, printed, or distributed false or misleading information;

(15) Advertised the availability of clock hour credit for a course in any manner without affixing the name of the school as approved by the department;

(16) Solicited, directly or indirectly, information from applicants for a real estate license following the administration of any real estate examination to discover the content of and/or answer to any examination question or questions;

(((16))) (17) Has failed to meet the requirements of this chapter;

(((17))) (18) Failed to teach a course consistent with the approved course content or curriculum;

(19) Used a substitute instructor who has not been approved to teach the topic area(s) pursuant to chapter 308-124H WAC.

[Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-310, filed 1/5/95, effective 2/5/95.      Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-310, filed 4/20/90, effective 8/1/90.]

Upon notice of disapproval or issuance of charges, a person is entitled to a hearing conducted in accordance with the Administrative Procedure Act, chapter 34.05 RCW, and the provisions of WAC 308-124-025, 308-124-035 and 308-124-045.

To exercise the right to a hearing under this section, a person must request a hearing within twenty days after receipt of the notice of disapproval or charges.

Any person aggrieved by a final decision of the director is entitled to judicial review under the provisions of the Administrative Procedure Act, chapter 34.05 RCW.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-320, filed 4/20/90, effective 8/1/90.]

((Any instructor desiring to teach clock hour courses must be approved)) (1) Instructor approval by the department is required prior to the date on which the ((school first offers courses)) course is offered for clock hour credit.

(2) Each application for approval of an instructor shall be submitted to the department on the appropriate application form provided by the department.

(3) The director or designee shall approve or disapprove instructor applications based upon criteria established by the commission.

(4) The director or designee shall approve only complete applications which meet the requirements of this chapter.

(5) Upon approval or disapproval the applicant will be so advised in writing by the department.      Notification of disapproval shall include the reasons therefor.

(6) Approval shall expire two years after effective date of approval.

(7) Applicants shall identify on the application form the specific subject matter topic area or areas he or she proposes to teach.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-510, filed 4/20/90, effective 8/1/90.]

(1) If there are no changes in the original instructor approval application for a previously approved instructor, the instructor will be approved upon receipt of an instructor renewal form and payment of the required fee.

(2) If there are changes in an original instructor approval application for a previously approved instructor, the application will not be processed as a renewal, and will require completion of an instructor approval application and payment of required fees.

(3) If an instructor renewal application or an instructor approval application is submitted at least thirty days prior to the current instructor expiration date, the previous instructor approval shall remain in effect until action to approve or disapprove the application is taken by the director.

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Upon approval an instructor shall be issued a certificate of approval containing the instructor's name, ((address,)) date of approval, ((and)) department identification number, and the subject matter topic areas that the instructor is approved to teach.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-530, filed 4/20/90, effective 8/1/90.]

A topic area expert(s) may be utilized as a guest lecturer to assist an approved instructor teach an approved course. The approved instructor is responsible for supervision of the approved course. Guest lecturer(s) shall not be utilized to circumvent the instructor approval requirements of this chapter.

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Upon notice of disapproval or issuance of charges, a person is entitled to a hearing conducted in accordance with the Administrative Procedure Act, chapter 34.05 RCW, and the provisions of WAC 308-124-025, 308-124-035, and 308-124-045.

To exercise the right to a hearing under this section, a person must request a hearing within twenty days after receipt of the notice of disapproval or charges.

Any person aggrieved by a final decision of the director is entitled to judicial review under the provisions of the Administrative Procedure Act, chapter 34.05 RCW.

[Statutory Authority: RCW 18.85.040.      90-10-010, § 308-124H-580, filed 4/20/90, effective 8/1/90.]

The following fees shall be charged ((by the department of licensing)) for applications for approval of real estate courses, schools ((offering the courses)), and instructors.      These fees shall be effective on and after July 1, ((1995)) 2000.

An application fee shall accompany each application. Approval, if granted, shall be two years from the date of approval. Applications submitted and disapproved may be resubmitted at no additional fee.

(1) Application for course content approval - a fee of $5.00 per clock-hour credit being offered, with a minimum fee of $50.00 per course.      Except, the application fee for approval of the sixty clock-hour course in real estate fundamentals shall be $150.00.

((An application fee shall accompany each application.      Approval, if granted, shall be for two years from the date of approval.))      Courses approved prior to the effective date for this rule, need not apply for re-approval until the expiration of the current two-year approval period.      ((Applications submitted and disapproved may be resubmitted at no additional fee.))

(2) Application for school approval - a fee of $250.00 ((fee provides for two-year approval)).

((An application fee shall accompany each application.      An application for school approval must include application for approval of the school's administrator.      A school will not be approved unless the school's administrator is also approved.      Approval, if granted, shall be for two years from the date of approval.      All schools approved after August 1, 1990 and prior to the effective date of this rule, need not apply for re-approval until expiration of the current two-year approval period.      Applications submitted and disapproved may be resubmitted at no additional fee.))

(3) Application for instructor approvals:

(a) Approval to teach a specific course on one occasion - a fee of $50.00;

(b) Approval to teach as many subject areas as requested at time of initial application - a fee of $75.00.      Approval shall be for two years from the approval date;

(c) Approval to teach additional subject area(s) not requested at time of initial application or renewal - a fee of $25.00 for each application to teach additional subject area(s).      Approval, if granted, shall be for remainder of two-year approval period.

Applications submitted under (a), (b) and (c) above, and disapproved may be resubmitted at no additional fee.

((An application fee shall accompany each application.))      Instructors ((approval)) approved to teach a specific ((course)) topic area prior to the effective date of this rule, need not apply for reapproval until the expiration of the current two-year approval period.      ((However, those instructors who wish approval to teach an additional subject area(s), must file an application and pay the appropriate $25.00 application fee.))

[Statutory Authority: RCW 18.85.040 and SB 6284.      95-03-012, § 308-124H-800, filed 1/5/95, effective 2/5/95.      Statutory Authority: RCW 18.85.040.      91-12-012, § 308-124H-800, filed 5/30/91, effective 6/30/91.]

     The following sections of the Washington Administrative Code are repealed:

WAC 308-124H-021	Approval of courses.
WAC 308-124H-220	Approval of schools.
WAC 308-124H-240	Administrator qualifications.
WAC 308-124H-520	Approval of instructors.

© Washington State Code Reviser's Office