WSR 19-21-036
[Filed October 8, 2019, 11:48 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 19-07-030.
Title of Rule and Other Identifying Information: Amending chapter 308-127 WAC; WAC 308-127-040, 308-127-160, 308-127-210 and 308-127-225; and repealing WAC 308-127-310, 308-127-320, and 308-127-330.
Hearing Location(s): On December 3, 2019, at 3:30 p.m., at the Department of Licensing, Business and Professions Division, 405 Black Lake Boulevard, Building #2, Conference Room #2108, Olympia, WA 98502.
Date of Intended Adoption: December 4, 2019.
Submit Written Comments to: Dee Sharp, Department of Licensing, Timeshares Program, P.O. Box 9021, Olympia, WA 98507, email, fax 360-586-0998, by December 2, 2019.
Assistance for Persons with Disabilities: Contact Dee Sharp, phone 360-664-6486, fax 360-586-0998, TTY 711, email, by December 2, 2019.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To amend sections in chapter 308-127 WAC to allow the salesperson license to become inactive when a licensee disassociates from their employer. The license will belong to the licensee and the licensee can be invited to work for timeshare companies.
Reasons Supporting Proposal: The amendment will allow the salesperson license to become "inactive" when the licensee disassociates from their employer. The license will belong to the licensee and the licensee can be "invited" to work for firms.
Statutory Authority for Adoption: RCW 64.36.270 and 43.24.023.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Dee Sharp, 2000 4th Avenue West, Olympia, WA, 360-664-6501.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is not required under RCW 34.05.328. This rule-making effort does not require a cost-benefit analysis because it is not a significant legislative rule and it will not have costs to implement, nor will it impose costs on businesses or licensees.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; and rules adopt, amend, or repeal a procedure, practice, or requirement relating to agency hearings; or a filing or related process requirement for applying to an agency for a license or permit.
Explanation of exemptions: This rule making is making technical changes to the names of fees to align with a technology effort; it will also allow timeshare licensees to place their license in inactive status upon disassociation with an employer. These changes will not have an impact on small businesses and will assist licensees when changing employers.
October 8, 2019
Damon Monroe
Rules Coordinator
AMENDATORY SECTION(Amending WSR 90-07-023, filed 3/14/90, effective 4/14/90)
WAC 308-127-040Materially adverse change.
(1) A materially adverse change means any change in the condition of a promoter or its affiliates which causes or might cause loss or risk of loss to the interests of the timeshare purchasers or prospective purchasers.
A materially adverse change occurs under circumstances which include, but are not limited to, the following:
(a) Any bulk sale of all or a significant portion of the timeshare properties;
(b) Any actual or threatened bankruptcy, receivership, or similar proceeding involving the promoter or its affiliates;
(c) Any lien, encumbrance, or similar circumstance which threatens to affect, or does affect, any of the timeshare properties;
(d) Any sale, lease, substitution of, or addition to the inventory of the timeshare properties by the promoter or its affiliates;
(e) Any amendment or change in the timeshare instruments or the timeshare program;
(f) Any change in the affiliation of the promoter or the association with a timeshare exchange company;
(g) Any change in the promoter's or an affiliate's plan of promotion;
(h) Any change in the status of an escrow, trust, bond, letter of credit, impound or other protective device, being utilized in the timeshare program for purposes of purchaser protection;
(i) Any criminal prosecution, civil lawsuit, or administrative proceeding in which the promoter or its affiliates are parties;
(j) Sell-out of the number of intervals registered to be sold to persons residing in the state of Washington;
(k) Any change in the financial status of the promoter or its affiliates that might adversely affect their ability to pay the timeshare expenses, including reserve accounts, during marketing of the timeshares.
(2) Materially adverse changes shall be reported to the agency for purposes of amending or renewing the registration and the public offering statement at the time they are known or proposed by the promoter or its affiliates. Failure to report such changes within 20 days shall result in the assessing of a $500.00 ((penalty))late fee and shall be cause for suspension, revocation, or denial of a registration.
AMENDATORY SECTION(Amending WSR 04-19-040, filed 9/13/04, effective 11/1/04)
WAC 308-127-160Fees.
The following fees shall be charged under the authority of RCW 64.36.081 and 43.24.086:
Registration application fees:
Start up timeshare program including one project.
Each additional project in program.
Each apartment unit in program.
The first unit of personal property in the timeshare program.
Each additional unit of personal property in the timeshare program.
Businesses of listing or brokering resale intervals.
Interval Fees:
For each interval through one thousand.
Intervals beyond one thousand.
Each monthly filing of listings of resale intervals (in lieu of interval fees for resale intervals).
Renewal fees:
Timeshare program including one project.
Late renewal fee for timeshare program.
Each additional project to a maximum of five projects.
Each apartment unit - to maximum of twenty-five apartment units.
Consolidation fees:
Each additional project added.
Each additional apartment unit.
The first additional unit of personal property being consolidated.
Each additional unit of personal property added in one consolidation.
Exemption fees:
Programs consisting of a single apartment unit in a single project with fifty-two or fewer intervals.
All other types of programs.
Impound fees:
Initial establishment of an impound, escrow, trust, or other arrangement requiring a depositary.
Each required periodic report.
Advertising fees:
Each initial submission of advertisement whether or not submitted in a timely manner, and whether or not in use at the time of payment.
Examination of advertisement which are for the purpose of marketing surveys and not involving an examination of project or program instruments.
Fees for persons in the business of offering commercial promotional programs:
Registration of individual.
Salespersons fees:
((Registration))Initial application, including first timeshare company association.
((Renewal))Each timeshare company association after the first.
25.00 per timeshare company association
Fees for amendment of registration:
For a timely submission of an amendment filing.
((Penalty))Late fee for failure to file an amendment within twenty days of the occurrence of a materially adverse change.
Inspection fees:
Applicants and registrants shall pay the cost of inspections conducted pursuant to chapter 64.36 RCW. The inspection fees shall be paid prior to the granting of a registration or consolidation. The inspection fee shall be the actual cost to the department for conducting of the inspection.
AMENDATORY SECTION(Amending WSR 90-07-023, filed 3/14/90, effective 4/14/90)
WAC 308-127-210Relationship of timeshare promoters and salespersons and real estate brokers and salespersons.
(1) ((A))An active timeshare salesperson registration shall be ((registered to a specific))associated with one or more timeshare promoters who ((has))have one or more timeshare offerings registered in this state. The promoter shall have full responsibility for all activities of the promoter's timeshare salesperson which relate to offering timeshares for sale.
(2) An active real estate broker or salesperson may act as the brokerage agent of one or more timeshare promoters without registering as a timeshare salesperson. However, this exemption from registration as a timeshare salesperson applies only when the exempted person is performing real estate brokerage in compliance with chapter 18.85 RCW. Further, this exemption only pertains to the timeshare salesperson registration requirement. All other provisions of the Timeshare Act apply to real estate brokers and salespersons offering timeshares for sale.
(3) A natural person may be registered as a timeshare salesperson while licensed as a real estate broker or salesperson. However, the salesperson shall conduct timeshare activities and maintain associated business records separate and apart from his or her real estate broker or salesperson activities and records. The term "separate and apart" shall not preclude location of timeshare salesperson and real estate brokerage activities at the same office.
(4) Any individual who is registered as a timeshare salesperson and licensed as a real estate broker or salesperson shall disclose in writing to the recipient of a timeshare sales offer whether he or she is acting as the timeshare salesperson of a promoter or a real estate broker or salesperson at the time he or she presents the public offering statement.
AMENDATORY SECTION(Amending WSR 04-08-003, filed 3/24/04, effective 4/24/04)
WAC 308-127-225Original application, renewal, ((termination))inactivity, and fees for a timeshare salesperson registration.
(1) An individual shall apply for registration as a timeshare salesperson on a form prescribed by the agency. The registration application for a timeshare salesperson shall identify the specific promoter responsible for the business activities of the salesperson and shall be valid for a period of one year.
(2) When a timeshare salesperson ceases to be employed by a timeshare promoter, the salesperson's registration shall be ((terminated))set to an inactive status. Written notice of this ((termination))cessation shall be given by the promoter to the ((director. A terminated))department. An individual with an inactive timeshare salesperson license who desires to work for the same or another promoter shall ((apply for and receive registration as a timeshare salesperson))register a new association with the department before engaging in further timeshare sales activities.
(3) An individual may renew his timeshare salesperson registration for one year if the agency receives the individual's request and renewal fee on or before the expiration of the individual's existing registration. The effective date of the renewal shall be the anniversary date of the previous registration. If the registration is not renewed before the expiration date reregistration is required before timeshare sales activity may be continued.
(4) An application for registration or a renewal of registration is not complete unless it is accompanied by the proper fee. Payment of the fee with a check which is subsequently dishonored is a deficient application. Upon notification to the promoter by the agency, the promoter shall cease employment of the applicant as a timeshare salesperson.
The following sections of the Washington Administrative Code are repealed:
WAC 308-127-310
Application of brief adjudicative proceedings.
WAC 308-127-320
Preliminary record in brief adjudicative proceedings.
WAC 308-127-330
Conduct of brief adjudicative proceedings.