HOUSE BILL REPORT

                 ESB 6284

             As Reported By House Committee On:

                      Commerce & Labor

Title:  An act relating to the requirements to obtain a real estate broker's or salesperson's license.

Brief Description:  Obtaining a real estate broker's or salesperson's license.

Sponsors:  Senators Wojahn, Amondson, Pelz, Winsley, Haugen, Quigley, Drew, Erwin, Spanel, Fraser and Ludwig.

Brief History:

  Reported by House Committee on:

Commerce & Labor, February 18, 1994, DPA.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass as amended.  Signed by 8 members:  Representatives G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer and Veloria.

Staff:  Jim Kelley (786-7166).

Background:  An individual seeking a real estate broker's license must have completed 90-clock hours of instruction in real estate, including specific course work in brokerage management and real estate law, within five years prior to applying for the license.

An individual seeking a real estate salesperson's license must have completed 30-clock hours of instruction in real estate fundamentals.  In addition, a licensed salesperson is required to complete an additional 30-clock hours of real estate courses before renewing his or her license.

The Director of Licensing has the authority to waive the 30-clock hour requirement for certain individuals seeking a new license or seeking to reactivate an inactive license based on practical work experience.

Summary of Amended Bill:  An individual seeking a real estate broker's license must complete 120-clock hours of instruction in real estate, including specific course work in brokerage management, real estate law and business management.

Individuals seeking a real estate salesperson's license must complete a 60-clock hour course in real estate fundamentals.  In addition, those seeking their first renewal of a salesperson's license must successfully complete 30 hours of instruction in real estate practices and 30 hours of continuing education courses.

The director no longer has the authority to waive the clock hour education requirement for new and inactive licenses based on work experience. Instead, the director may substitute by rule equivalent educational coursework for the approved broker and salesperson education.

The new requirements do not apply to licensed salespersons or brokers if they were licensed prior to the effective date of the act, unless their license is subsequently canceled or revoked.

Amended Bill Compared to Engrossed Substitute Bill:  The amended bill allows the director to substitute by rule equivalent educational coursework for the approved broker and salesperson education.

Fiscal Note:  Requested February 9, 1994.

Effective Date of Amended Bill:  The bill takes effect July 1, 1995.

Testimony For:  The current education requirements for obtaining a salesperson's or broker's license do not prepare the candidate well enough to protect the consumer. It is currently impossible to adequately educate potential salespersons within a 30-clock hour period.  Washington State has fewer clock hours of education required than Oregon, Idaho and many other states.  

Testimony Against:  None.

Witnesses:  (In favor)  Glen Hudson, Jeff Lyon, Dave Rockwell, and Bridgette Upton, Washington Association of Realtors; and Bob Mitchell, Department of Licensing.