WSR 03-03-054

PERMANENT RULES

DEPARTMENT OF LICENSING


[ Filed January 13, 2003, 2:10 p.m. ]

Date of Adoption: January 13, 2003.

Purpose: Chapter 308-420 WAC, regulating camping resorts, to amend, repeal or retain current rules, which may no longer be needed or need further written clarification as per the governor's directive on state rules review.

Citation of Existing Rules Affected by this Order: Amending WAC 308-420-020, 308-420-050, 308-420-060, 308-420-070, 308-420-090, 308-420-100, 308-420-140, 308-420-190, 308-420-200, 308-420-210 and 308-420-230; and repealing WAC 308-420-010, 308-420-080, and 308-420-130.

Statutory Authority for Adoption: RCW 19.105.530(1), 43.24.023.

Adopted under notice filed as WSR 02-24-073 on December 3, 2002.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 11, Repealed 3.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 11, Repealed 3.
Effective Date of Rule: Thirty-one days after filing.

January 13, 2003

Trudie Touchette

Acting Administrator

OTS-5886.2


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-020   Definitions.   (1) Words and terms used in these rules shall have the same meaning as each has in the Camping Resorts Act, (chapter 19.105 RCW).

(2) "Agency" means the department of licensing in the state of Washington.

(3) "Camping resort" shall be synonymous with "camping club," or "camp resort" whether or not structured as or involved with a common-interest entity, provided the method of structuring the project meets the definition of "camping resort" in RCW 19.105.300(1).

(4) "Camping resort program" means the rights and obligations of a purchaser and the methods and procedures for occupying or using camping resort facilities and properties, as established by the purchase contract and other written instruments, such as covenants, declarations, bylaws or rules.

(5) "Camping resort project" shall mean a camping resort and all of its parks, sites, properties and facilities, that are part of the program in which a purchaser receives use, occupancy, membership, or ownership rights.

(6) "Public offering statement" shall mean the written disclosures referred to in RCW 19.105.320 (1)(b) and 19.105.370.

(7) "Statement of record" shall mean all materials, not exclusive of others, including application forms, documents, exhibits, statements, the public offering statement, correspondence, and affidavits, filed with the agency, for registration purposes.

(8) (("Resale camping resort contract" shall mean a camping resort contract offered or sold which is not the original offer, transfer or sale of such contract, and not a forfeited contract being reoffered by an operator.

(9) "Start-up camping resort contract" means a camping resort contract that is being offered or sold for the first time or a forfeited contract being resold by a camping resort operator.

(10))) "Advance fees" shall mean fees, funds, or consideration of any description, collected for any purpose from buyers or sellers of resale camping resort contracts, prior to the time of settlement of a purchase transaction.

(((11))) (9) "Prospective purchaser" shall mean any person attending a sales presentation or touring a camping resort when such attendance results from an operator's solicitation or advertising.

(((12))) (10) "Right to use or multiple use camping resort" shall mean a camping resort where the fee title or leasehold interest to the land remains with the operator and memberships are sold in excess of one membership to each camping site and usage is subject to operator established rules.

(((13))) (11) "Common-interest camping resort" shall mean a member-owned entity which has the fee title or leasehold interest to the land in its own name and the memberships of the common interest entity are sold one membership to a specific camping site and the site usage is exclusive to the member.

(((14))) (12) "Undivided interest camping resort" shall mean a camping resort entity which conveys the fee title or leasehold interest to the land to the member, and the memberships are sold in excess of one membership to each camping site and their usage is subject to the operator's established rules.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-020, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-015.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-050   Exemptions from registration -- Noncommercial resale contract offerings.   As provided in RCW 19.105.325(2), the director exempts from the registration requirements of chapter 19.105 RCW the offering and selling of resale camping resort contracts by a common interest entity, entirely owned and operated by the purchasers of the camping resort contracts, which markets no more than ten resale camping resort contracts during any one ((registration)) calendar year period, provided that any such offering or selling is noncommercial in nature and that registration is not necessary for the protection of purchasers. Noncommercial shall mean that the common-interest entity is not primarily in the business of offering or selling camping resort contracts.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-050, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-022.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-060   Statement of record -- Filings and information required upon application for registration of start-up camping resort projects and contract offerings.   (1) An application for registration of a start-up contract offering shall be made by completing forms prepared for such purpose by the agency.

(2) The application, documents and information filed for registration purposes shall be referred to as the statement of record.

(3) The statement of record for a registration of a start-up contract offering shall include the following:

(a) The prescribed filing fee.

(b) The completed application forms.

(i) A copy of any criminal conviction, including a guilty plea, within the last ten years, or any conviction that resulted in the applicant having to register as a sex offender regardless of whether the conviction is over ten years old.

(ii) A copy of any civil or administrative judgment or order involving dishonesty, fraud, or violation of any act designed to protect consumers that names the applicant or any of the applicant's affiliates as a party.

(c) The draft of the proposed public offering statement.

(d) A sample or prototype of any documents to be signed or initialed by and that commits purchasers. Such documents shall contain the cancellation notice required in RCW 19.105.390.

(e) Copies of all recorded or unrecorded encumbrances, mortgages, liens, deeds, leases, contracts, and any amendments thereto, that affect camping resort projects.

(f) A preliminary title report, dated within ((ten)) thirty days of application, covering all of the acreages, park sites, and areas on which facilities are located.

(g) Financial statements and information as required by WAC 308-420-110.

(h) If the registrant is other than a natural person, copies of relevant articles of incorporation, bylaws, partnership, or joint venture documentation.

(i) Promotional materials, including advertising and contract forms covering travel programs, discount programs, programs for the use or occupancy of in-park trailers or mobiles and those providing memberships in other recreational programs, if such materials or programs are to be utilized to promote sales of camping resort contracts or are to be offered to contract owners as part of the camping resort programs.

(j) ((Rules and regulations governing the use and occupancy of project parks and facilities.

(k) A statement as required pursuant to RCW 19.105.320 (1)(d).

(l))) Applications for and contracts of affiliation with any outside exchange or reciprocal-use entity.

(((m) Information covering purchaser costs, rules, contract forms, and any fees required for purchaser use of operator-owned trailers, mobiles, tents, or other over-night accommodations, available for purchasers as an alternative to using the purchaser's own mobile units.

(n) A statement describing the operator's, an affiliate's, or successor's right to substitute, change, or withdraw from use all or a portion of the camping resort properties and the extent to which the camping resort operator, affiliates, or successors are obligated to replace the camping resort properties substituted or withdrawn within a reasonable period of time after such action, with substituted properties in the same general area, that are at least as desirable for the purpose of camping and outdoor recreation.

(i) If a nonaffiliate or any other person has the ability through existing agreements to exercise a right of withdrawal of camping resort properties in the program from use by the camping resort members, provide copies of any and all documentation evidencing the ability to exercise such right of withdrawal.

(ii) If a withdrawal becomes effective on a specific date, provide a description of the means and method of withdrawal and state the date.

(o))) (k) Whenever applicable to the structuring of the project, provide a copy or prototype of the following:

(i) Plats, maps, site plans, or surveys.

(ii) Water, sewerage, or land use authorizations or permits, or denial of permits of local jurisdictions.

(iii) ((A copy of any administrative, civil, or criminal proceeding involving theft, fraud, or dishonesty, or violations of any act designed to protect consumers or involving dishonest practices in any industry involving sales to consumers in which the applicant is or has within the past five years been a party.

(iv))) Performance bonds, letters of credit, surety or guaranty agreements affecting the project or the program.

(((v))) (iv) Trust or escrow arrangements affecting the project.

(((vi) Market surveys or feasibility studies, if presently available.

(vii) Appraisals of market value of the project, if presently available.

(viii) Engineering studies or surveys of physical hazards such as earthquakes, floods, beach erosions, landslides, or volcanoes, if presently available.

(ix))) (v) Covenants or declarations affecting camping resort properties.

(((x))) (vi) Agreements for the usage of amenities or facilities owned by persons other than operator.

(((p))) (l) If the project involves a common-interest entity copies or prototypes of the following:

(i) Declaration and bylaws.

(ii) Rules and regulations.

(iii) Membership certificate and proxy forms.

(iv) Evidences of title to any personal property owned or to be owned by the association or purchasers collectively.

(v) Agreements for managing the properties.

(vi) Agreements for payment or subsidizing the payment of project operational expenses during the term of registrant marketing.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-060, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-025.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-070   The public offering statement -- Form, content, and preparation.   (1) The written disclosures provided for in RCW 19.105.320 (1)(b) and 19.105.370 shall be in a document to be known as the public offering statement.

(2) The public offering statement shall be prepared and promulgated in a form prescribed by the agency.

(3) ((The public offering statement shall consist of two parts:

(a) Part I, written disclosures, to be prepared by the applicant.

(b) Part II, attachments of exhibits provided by applicant in the statement of record, when required by the agency for the protection of purchasers, and a copy or prototype of the purchaser contract form(s).

(4) The applicant's disclosures for Part I of the public offering statement for a start-up camping resort contract offering shall be prepared in sections, captioned in bold print as follows:

(a) The camping resort operator: Information in this section is to include the name, address, and business telephone number of the operator, the common-interest entity and a brief summary of the operator's experience in the camping resort business.

(b) The project. General information: Information in this section shall specify the location and provide a brief description of the park sites and significant facilities and recreation services already available for use by purchasers in each park site and the program.

(c) Facilities, amenities, park sites, and programs that are planned or promised: Information in this section is to cover that required in RCW 19.105.320 (1)(b)(iv) and (vi).

(d) Nature of the interest which you are purchasing: Information in this section is to cover that required in RCW 19.105.320 (1)(b)(iii). If the purchase contract, membership certificate, or project rules and regulations refer to or make use of the term(s) "club," "member," or "membership," describe whether or not any of the following are available to the purchasers:

(i) A membership in any common-interest entity, nonprofit corporation or other form of common-interest community.

(ii) Shares of stock that allow participation in any profits earned by the operator or its affiliates.

(iii) The right to vote for officers and directors.

(iv) The right to make decisions on how the project or program is managed.

(v) The right to vote for or against any proposed rule changes.

(vi) Attendance at membership meetings.

(e) Ownership of project properties and encumbrances, liens, and other conditions affecting ownership: Information provided in this section is to cover that required in RCW 19.105.320 (1)(b)(v).

(f) Purchaser protections -- Assurances of future availability of the promised camping resort sites, facilities, and program. The information in this section is to be provided in bold print and include that information required by RCW 19.105.320 (1)(b)(xii) and (xiv) and a statement describing the operator's, or an affiliate's or successor's right to substitute, change, or withdraw from use all or a portion of the camping resort properties and the extent to which the camping resort operator, affiliates, or successors are obligated to replace the camping resort properties substituted or withdrawn within a reasonable period of time after such action, with substituted properties in the same general area, that are at least as desirable for the purpose of camping and outdoor recreation.

(g) Summary of purchasers rights to and restrictions for use of project sites and facilities: The information in this section is to include that information required pursuant to RCW 19.105.320 (1)(b)(v), (vii), and (xi).

(h) Restrictions on sale, transfer, or assignment of camping resort contracts, memberships, licenses, or deeds: The information in this section is to be provided in bold print, underlined, and to include in summary form, that information required pursuant to RCW 19.105.320 (1)(b)(x) and (xiii).

(i) Purchaser costs: The information in this section is to include that required pursuant to RCW 19.105.320 (1)(b)(ix).

(5) For applicants whose projects are structured as common-interest entities, or that otherwise are involved with memberships in common-interest entities which are to be responsible for management or ownership of camping resort properties, additional information is to be included in the public offering statement, pursuant to the requirements of RCW 19.105.320(vii), in a section headed "Governing documentation -- The ' ' common interest entity."

(6))) Prior to approval of a registration or promulgation of the proposed public offering statement by the applicant, the applicant's draft for the public offering statement shall be reviewed by the agency to determine its completeness and accuracy.

(((7))) (4) If the agency deems that sections or areas of the proposed public offering statement are incomplete, inaccurate, deceptive, or not presented in the proper format, the agency shall reject the proposed public offering statement and return it to the applicant for correction of noted deficiencies.

(((8) Guidelines, instructions, and preprinted materials for preparing the public offering statement may be obtained from the agency.))

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-070, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-027.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-090   The public offering statement -- Delivery to prospective purchasers.   (1) The operator or its agents shall provide all prospective purchasers with the agency-registered ((Part I of the)) public offering statement prior to the completion of a sales presentation or a camping resort tour whether or not such persons purchase a camping resort contract.

(2) ((Part II of the public offering statement shall be provided to actual purchasers.

(3))) Any person who requests of an operator or its agents, a public offering statement, shall be provided ((Part I of)) the public offering statement, whether or not such person has received a solicitation.

(((4))) (3) Any prospective purchaser who attends a sales presentation or tour of a camping resort, upon request of the prospective purchaser, shall be given a copy or prototype of the operator's camping resort contract, which the prospective purchaser may retain, whether or not there has been an actual purchase made. No fee shall be charged for this document.

(((5))) (4) No fee may be charged for the initial copy of the ((Part I of the)) public offering statement provided persons. A fee covering the operator's actual costs for production of the document may be charged for additional copies.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-090, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-032.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-100   Purchaser cancellations of contracts -- Prompt refund of funds and consideration.   (1) "Promptly" with reference to the refund and return of a person's funds and consideration, referred to in RCW 19.105.390 shall be as follows:

(a) For cash, cashiers checks, money orders, credit card slips held and not processed and other similar consideration, the operator or its agents shall make refunds within ten business days of a demand.

(b) For credit card purchases where the operator has processed the credit card slip(s) to the care of the credit card company, the operator shall notify the credit card company of a credit to the account of the purchaser within three business days of a demand.

(c) Promissory notes and similar evidences of debt shall be voided and returned within three business days of demand.

(d) Within ten business days after demand, the operator or its agents shall give the purchaser evidence that the purchase commitment has been voided.

(2) No purchaser camping resort contract, promissory note or other evidences of debt may be sold, transferred, hypothecated or pledged by an operator until at least five business days after the termination of the statutory-prescribed cancellation term.

(3) No fees or charges may be made of a purchaser by an operator for use of written materials or camping resort facilities offered gratuitously prior to the cancellation request; however, nothing in this statement shall preclude an operator from requiring return of materials in the custody of a purchaser not ((constituting either Part I or Part II of)) including the public offering statement.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-100, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-035.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-140   Receipt of written disclosures.   The camping resort operator or salesperson shall obtain from each person that tours a camping resort or attends a sales presentation, a signed statement evidencing receipt of the ((appropriate parts(s) of the)) public offering statement. The operator shall retain each receipt for a period of at least three years from the date of signature thereon.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-140, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-070.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-190   Renewals.   (1) Pursuant to RCW 19.105.420 an application for renewal shall be made ((not less than thirty days prior to the expiration date of a registration,)) on a form to be provided by the agency.

(2) It shall be the applicant's responsibility to procure forms and file them with the agency.

(3) The renewal application shall include the following:

(a) Affidavits by the operator stating whether or not there have been any changes in the information and documentation previously submitted for purposes of registration.

(b) Copies or prototypes of all amended, altered, or new documentation evidencing changes; the changes shall be underlined or referred to by footnotes.

(c) A draft of a proposed amended public offering statement evidencing changes; the changes shall be underlined or referred to by a cover letter calling the agency's attention to the proposed changes, additions to or deletions from the public offering statement previously accepted by the agency.

(d) A copy of all camping resort contract forms marked and underscored to reflect changes, additions or deletions.

(e) Financial statements and information as provided for in WAC 308-420-110 will be required to be submitted once every four years beginning from the original registration approval date or at any other time the department deems necessary to determine the financial stability of the company.

(f) Payment of fees as provided for in RCW 19.105.411.

(4) Failure of the renewal applicant to renew in a timely manner on or before the date of ((permit)) expiration, shall mean that the registration ((and permit have)) has expired. Upon expiration of registration the camping resort contracts are deemed not registered and the operator must register as a new applicant pursuant to the provisions of RCW 19.105.320 and WAC 308-420-060 and 308-420-070.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-190, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-115.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-200   Salesperson registrations.   (1) Each applicant for registration as a camping resort salesperson shall register on a form prescribed by the agency and pay a filing fee as provided by the director.

(2) Registration as a camping resort salesperson shall be renewed annually or at the time the salesperson obtains employment by a camping resort operator subsequent to a termination of a employment by a camping resort operator, by the filing of a form prescribed by the agency and payment of the proscribed fee.

(3) The following information shall be provided on the original application or renewal of a camping resort salesperson's registration:

(a) ((The applicant's date and place of birth.

(b) Proof of identity.

(c) Information covering employment for the prior five years.

(d) Information concerning any administrative action taken against permits, licenses or registrations in other professions, businesses or occupations.)) A copy of any criminal conviction, including a guilty plea, within the last ten years, or any conviction that resulted in the applicant having to register as a sex offender regardless of whether the conviction is over ten years old.

(b) A copy of any civil or administrative judgment or order involving dishonesty, fraud, or violation of any act designed to protect consumers that names the applicant as a party.

(4) Upon the occurrence of any material change in the information contained in the registrant's file, each salesperson registrant shall promptly file with the agency an amendment to the salesperson registration file stating the change(s). The following shall be material changes requiring notice to the agency:

(((a) Any termination of employment with a camping resort operator.

(b))) No later than twenty business days, upon being named a defendant or a party in any administrative, civil or criminal proceeding ((involving theft, fraud or dishonesty or violation of any act designed to protect consumers, or involving unethical or dishonest practices in any industry involving sales to consumers or violations of chapter 19.105 RCW)), the salesperson applicant shall promptly provide to the agency a notice of the proceeding and a copy of the complaint.

(((c) A change of name.

(d) A change of residence or mailing address.))

(5) Each operator of a camping resort whose camping resort contracts are registered with the agency, shall upon the termination of employment of a camping resort salesperson provide the department with a notice of termination and to return to the department the salesperson registration within ten days of the termination.

(6) The operator is responsible for posting the salesperson registration ((in a conspicuous location)) visible to the public on the premises where the salesperson is employed.

(7) As a condition of continued registration the salesperson registrant shall comply with the following:

(a) During the entire term of the registration the registrant is to be employed or engaged by an operator that is registered with the agency as an offeror of camping resort contracts, and the salesperson shall be offering contracts on behalf of or in the employment of such operator-registrant. Upon termination of employment with a registered camping resort operator, the salesperson registration is deemed to have expired.

(b) ((The salesperson shall clearly identify himself or herself by full name, by means of a business card, lapel pin or by other means, upon contact with any prospective purchaser.

(c))) The salesperson shall cooperate fully with the agency in any investigation of alleged violations by the registrant, salesperson, or others, of the Camping Resort Act or these rules.

(((d))) (c) It shall not be represented to any prospective purchaser that there is any form of a membership resale program for membership contracts being offered by the operator of the camping resort unless the same be true.

(8) Applications for registration or renewal that are for any reason defective or that are not legible shall be returned and the application shall be deemed not filed until the form is received by the agency with the deficiencies corrected.

(9) An application for renewal of a salesperson registration not filed in a timely manner or not received or acted upon by the agency prior to the expiration date shall be deemed by the agency as having expired. The salesperson must thereafter register as a new applicant for registration. Salespersons who have failed to make timely renewal applications shall not engage in camping resort activities. It is the salesperson's responsibility to secure the necessary forms and renew a registration in a timely manner. ((Applications for renewal should be forwarded to the agency by registered mail at least thirty days prior to expiration of the current registration.)) The agency shall not be responsible for applications lost in the mail or not timely received for other reasons.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-200, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-122.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-210   Request for withdrawal of camping resort property.   A camping resort operator may request ((an order)) written approval from the director for authority to withdraw any substantial camping or recreation portion of any camping resort property devoted to camping or recreational activities pursuant to RCW 19.105.380 (1)(q)(iv) by filing with the director a request ((90)) ninety days before the intended withdrawal date or such lesser time as the director may allow identifying the portion of the property to be withdrawn and stating the reasons for such withdrawal accompanied by copies of any materials or data supporting such reasons or the necessity for such withdrawal.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-210, filed 12/17/90, effective 1/17/91. Formerly WAC 460-90A-130.]


AMENDATORY SECTION(Amending WSR 91-01-082, filed 12/17/90, effective 1/17/91)

WAC 308-420-230   Rainchecks.   (1) In the event rainchecks, in lieu of an offered item are provided to recipients, a report will be due to the agency by the 10th of each month, ((on a form furnished by the agency)) listing all rainchecks outstanding as of the last day of the preceding month and indicating deliveries of any previously reported rainchecked items.

(2) ((In regard to substitute items of greater value which are to be distributed to recipients, documentation establishing the local retail fair market value must be submitted to the agency prior to offering substitute items of greater value which are to be distributed to recipients.

(3))) All gifts, prizes, awards, sweepstakes, premiums, free items or other items, with the exception of the major incentives with odds of 1:1,000 or greater must be available for display to the recipient prior to the sales presentation. In the event rainchecks are to be presented, this fact must be announced prior to the tour or sales presentation.

[Statutory Authority: RCW 19.105.130. 91-01-082, 308-420-230, filed 12/17/90, effective 1/17/91.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 308-420-010 Organization.
WAC 308-420-080 Signing of application and the permit.
WAC 308-420-130 Notice of termination of sales.

Legislature Code Reviser 

Register

Washington State Code Reviser's Office