ESSB 6037 -
By Senator Fairley
Strike everything after the enacting clause and insert the following:
Sec. 101 RCW 19.31.020 and 1998 c 228 s 1 are each amended to
read as follows:
Unless a different meaning is clearly required by the context, the
following words and phrases, as hereinafter used in this chapter, shall
have the following meanings:
(1) "Employment agency" is synonymous with "agency" and shall mean
any business in which any part of the business gross or net income is
derived from a fee received from applicants, and in which any of the
following activities are engaged in:
(a) The offering, promising, procuring, or attempting to procure
employment for applicants;
(b) The giving of information regarding where and from whom
employment may be obtained; or
(c) The sale of a list of jobs or a list of names of persons or
companies accepting applications for specific positions, in any form.
In addition the term "employment agency" shall mean and include any
person, bureau, employment listing service, employment directory,
organization, or school which for profit, by advertisement or
otherwise, offers, as one of its main objects or purposes, to procure
employment for any person who pays for its services, or which collects
tuition, or charges for service of any nature, where the main object of
the person paying the same is to secure employment. It also includes
any business that provides a resume to an individual and provides that
person with a list of names to whom the resume may be sent or provides
that person with preaddressed envelopes to be mailed by the individual
or by the business itself, if the list of names or the preaddressed
envelopes have been compiled and are represented by the business as
having job openings. The term "employment agency" shall not include
labor union organizations, temporary service contractors, proprietary
schools operating within the scope of activities for which the school
is licensed under chapter 28C.10 RCW, nonprofit schools and colleges,
career guidance and counseling services, employment directories that
are sold in a manner that allows the applicant to examine the directory
before purchase, theatrical agencies, farm labor contractors, or the
Washington state employment agency.
(2) "Temporary service contractors" shall mean any person, firm,
association, or corporation conducting a business which consists of
employing individuals directly for the purpose of furnishing such
individuals on a part time or temporary help basis to others.
(3) "Theatrical agency" means any person who, for a fee or
commission, procures on behalf of an individual or individuals,
employment or engagements for circus, vaudeville, the variety field,
the legitimate theater, motion pictures, radio, television, phonograph
recordings, transcriptions, opera, concert, ballet, modeling, or other
entertainments, exhibitions, or performances. The term "theatrical
agency" does not include any person charging an applicant a fee prior
to or in advance of:
(a) Procuring employment for the applicant;
(b) Giving or providing the applicant information regarding where
or from whom employment may be obtained;
(c) Allowing or requiring the applicant to participate in any
instructional class, audition, or career guidance or counseling; or
(d) Allowing the applicant to be eligible for employment through
the person.
(4) "Farm labor contractor" means any person, or his agent, who,
for a fee, employs workers to render personal services in connection
with the production of any farm products, to, for, or under the
direction of an employer engaged in the growing, producing, or
harvesting of farm products, or who recruits, solicits, supplies, or
hires workers on behalf of an employer engaged in the growing,
producing, or harvesting of farm products or who provides in connection
with recruiting, soliciting, supplying, or hiring workers engaged in
the growing, producing, or harvesting of farm products, one or more of
the following services: Furnishes board, lodging, or transportation
for such workers, supervises, times, checks, counts, sizes, or
otherwise directs or measures their work; or disburses wage payments to
such persons.
(5) "Employer" means any person, firm, corporation, partnership, or
association employing or seeking to enter into an arrangement to employ
a person through the medium or service of an employment agency.
(6) "Applicant"((, except when used to describe an applicant for an
employment agency license,)) means any person, whether employed or
unemployed, seeking or entering into any arrangement for his employment
or change of his employment through the medium or service of an
employment agency.
(7) "Person" includes any individual, firm, corporation,
partnership, association, company, society, manager, contractor,
subcontractor, bureau, agency, service, office, or an agent or employee
of any of the foregoing.
(8) (("Director" shall mean the director of licensing.)) "Resume" means a document of the applicant's employment
history that is approved, received, and paid for by the applicant.
(9)
(((10))) (9) "Fee" means anything of value. The term includes
money or other valuable consideration or services or the promise of
money or other valuable consideration or services, received directly or
indirectly by an employment agency from a person seeking employment, in
payment for the service.
(((11))) (10) "Employment listing service" means any business
operated by any person that provides in any form, including written or
verbal, lists of specified positions of employment available with any
employer other than itself or that holds itself out to applicants as
able to provide information about specific positions of employment
available with any employer other than itself, and that charges a fee
to the applicant for its services and does not set up interviews or
otherwise intercede between employer and applicant.
(((12))) (11) "Employment directory" means any business operated by
any person that provides in any form, including written or verbal,
lists of employers, does not provide lists of specified positions of
employment, that holds itself out to applicants as able to provide
information on employment in specific industries or geographical areas,
and that charges a fee to the applicant for its services.
(((13))) (12) "Career guidance and counseling service" means any
person, firm, association, or corporation conducting a business that
engages in any of the following activities:
(a) Career assessment, planning, or testing through individual
counseling or group seminars, classes, or workshops;
(b) Skills analysis, resume writing, and preparation through
individual counseling or group seminars, classes, or workshops;
(c) Training in job search or interviewing skills through
individual counseling or group seminars, classes, or workshops:
PROVIDED, That the career guidance and counseling service does not
engage in any of the following activities:
(i) Contacts employers on behalf of an applicant or in any way
intercedes between employer and applicant;
(ii) Provides information on specific job openings;
(iii) Holds itself out as able to provide referrals to specific
companies or individuals who have specific job openings.
Sec. 102 RCW 19.31.030 and 1993 c 499 s 2 are each amended to
read as follows:
Each employment agency shall keep records of all services rendered
employers and applicants. These records shall contain the name and
address of the employer by whom the services were solicited; the name
and address of the applicant; kind of position ordered by the employer;
dates job orders or job listings are obtained; subsequent dates job
orders or job listings are verified as still being current; kind of
position accepted by the applicant; probable duration of the
employment, if known; rate of wage or salary to be paid the applicant;
amount of the employment agency's fee; dates and amounts of refund if
any, and reason for such refund; and the contract agreed to between the
agency and applicant. An employment listing service need not keep
records pertaining to the kind of position accepted by applicant and
probable duration of employment.
An employment directory shall keep records of all services rendered
to applicants. These records shall contain: The name and address of
the applicant; amount of the employment directory's fee; dates and
amounts of refund if any, and reason for the refund; the contract
agreed to between the employment directory and applicant; and the dates
of contact with employers made pursuant to RCW 19.31.190(((11))) (10).
The ((director)) attorney general, independently or under civil
investigative authority contained in RCW 19.86.110, shall have
authority to demand and to examine, at the employment agency's regular
place of business, all books, documents, and records in its possession
for inspection. ((Unless otherwise provided by rules or regulation
adopted by the director, such)) Records shall be maintained for a
period of ((three)) four years from the date in which they are made.
Sec. 103 RCW 19.31.070 and 2002 c 86 s 269 are each amended to
read as follows:
(1) ((The director shall administer the provisions of this chapter
and shall issue from time to time reasonable rules and regulations for
enforcing and carrying out the provisions and purposes of this chapter.)) Upon receiving a complaint against any
employment agency, the ((
(2) The director shall have supervisory and investigative authority
over all employment agencies.director)) attorney general shall have the
right to examine all books, documents, or records in its possession.
In addition, the ((director)) attorney general, independently or under
civil investigative authority contained in RCW 19.86.110, may examine
the office or offices where business is or shall be conducted by such
agency. The authority granted in this section is in addition to the
authority granted by RCW 19.31.030.
(2) When there is probable cause to believe that books, documents,
records, or property related to any complaint are in the possession or
control of any person other than the employment agency, any judge of
the superior or district court in the county in which the property is
located or jurisdiction is proper, may, upon the request of the
attorney general, issue a warrant directed to the person commanding the
search or seizure of the property described in the request for warrant.
(3) Application for, issuance, and execution and return of the
warrant authorized by this section and for return of any property
seized must be in accordance with the criminal rules of the superior
court and the justice court.
(4) The attorney general shall levy execution upon property seized
under this section as provided by law.
(5) Nothing in this section may require the application for and
issuance of any warrant not otherwise allowed by law.
Sec. 104 RCW 19.31.090 and 1977 ex.s. c 51 s 4 are each amended
to read as follows:
(1) Before conducting any business as an employment agency each
((licensee)) employment agency shall file with the ((director))
attorney general and maintain a surety bond in the sum of ((two))
twenty thousand dollars running to the state of Washington, for the
benefit of any person injured or damaged as a result of any violation
by the ((licensee)) employment agency or his or her agent of any of the
provisions of this chapter ((or of any rule or regulation adopted by
the director pursuant to RCW 19.31.070(1))).
(2) ((In lieu of the surety bond required by this section the
license applicant may file with the director a cash deposit or other
negotiable security acceptable to the director: PROVIDED, HOWEVER, If
the license applicant has filed a cash deposit, the director shall
deposit such funds with the state treasurer. If the license applicant
has deposited cash or other negotiable security with the director, the
same shall be returned to the licensee at the expiration of one year
after the employment agency's license has expired or been revoked, if
no legal action has been instituted against the licensee or the surety
deposit at the expiration of the year.)) Any person having a claim against an employment agency for
any violation of the provisions of this chapter ((
(3)or any rule or
regulation promulgated thereunder)) may bring suit upon such bond or
deposit in an appropriate court of the county where the office of the
employment agency is located or of any county in which jurisdiction of
the employment agency may be had. Action upon such bond or deposit
shall be commenced by serving and filing of the complaint within one
year from the date of ((expiration of the employment agency license in
force at the time)) the act for which the suit is brought occurred.
((A copy of the complaint shall be served by registered or certified
mail upon the director at the time the suit is started, and the
director shall maintain a record, available for public inspection, of
all suits so commenced. Such service on the director shall constitute
service on the surety and the director shall transmit the complaint or
a copy thereof to the surety within five business days after it shall
have been received.)) The surety upon the bond shall not be liable in
an aggregate amount in excess of the amount named in the bond, but in
case claims pending at any one time exceed the amount of the bond,
claims shall be satisfied in the order of judgment rendered. ((In the
event that any final judgment shall impair the liability of the surety
upon bond so furnished or the amount of the deposit so that there shall
not be in effect a bond undertaking or deposit in the full amount
prescribed in this section, the director shall suspend the license of
such employment agency until the bond undertaking or deposit in the
required amount, unimpaired by unsatisfied judgment claims, shall have
been furnished.))
(4) In the event of a final judgment being entered against the
deposit or security referred to in subsection (2) of this section, the
director shall, upon receipt of a certified copy of the final judgment,
order said judgment to be paid from the amount of the deposit or
security.
Sec. 105 RCW 19.31.160 and 1969 ex.s. c 228 s 16 are each amended
to read as follows:
Any employment agency which collects, receives, or retains a fee or
other payment contrary to the provisions of this chapter ((or to the
rules and regulations adopted pursuant to this chapter)) shall return
the excessive portion of the fee ((within seven days after receiving a
demand therefor from the director)).
Sec. 106 RCW 19.31.180 and 1969 ex.s. c 228 s 18 are each amended
to read as follows:
Each ((licensee)) employment agency shall post the following in a
conspicuous place in each office in which it conducts business: (1)
The substance of RCW 19.31.150 through 19.31.170; and (2) a ((name and
address provided by the director, in a form prescribed by him, of a
person to whom)) notice that complaints concerning possible violation
of this chapter may be made to the consumer protection unit of the
attorney general's office. All words required to be posted pursuant to
this section shall be printed in ten point bold face type.
Sec. 107 RCW 19.31.190 and 1993 c 499 s 7 are each amended to
read as follows:
In addition to the other provisions of this chapter the following
rules shall govern each and every employment agency:
(1) ((Every license or a verified copy thereof shall be displayed
in a conspicuous place in each office of the employment agency;)) No fee shall be solicited or accepted as an application or
registration fee by any employment agency solely for the purpose of
being registered as an applicant for employment;
(2)
(((3))) (2) No ((licensee)) employment agency or agent of ((the
licensee)) an employment agency shall solicit, persuade, or induce an
employee to leave any employment in which the ((licensee)) employment
agency or agent of ((the licensee)) an employment agency has placed the
employee; nor shall any ((licensee)) employment agency or agent of
((the licensee)) an employment agency persuade or induce or solicit any
employer to discharge any employee;
(((4))) (3) No employment agency shall ((knowingly)) cause to be
printed or published a false, deceptive, unfair, or ((fraudulent))
misleading notice or advertisement for obtaining work or employment.
All advertising by ((a licensee)) an employment agency shall signify
that it is an employment agency solicitation except an employment
listing service shall advertise it is an employment listing service;
(((5))) (4) An employment directory shall include the following on
all advertisements:
"Directory provides information on possible employers and general
employment information but does not list actual job openings.";
(((6))) (5) No ((licensee)) employment agency shall fail to state
in any advertisement, proposal or contract for employment that there is
a strike or lockout at the place of proposed employment, if ((he)) it
has knowledge that such condition exists;
(((7))) (6) No ((licensee)) employment agency or agent of ((a
licensee)) an employment agency shall directly or indirectly split,
divide, or share with an employer any fee, charge, or compensation
received from any applicant who has obtained employment with such
employer or with any other person connected with the business of such
employer;
(((8))) (7) When an applicant is referred to the same employer by
two ((licensees)) employment agencies, the fee shall be paid to the
((licensee)) employment agency who first contacted the applicant
concerning the position for that applicant: PROVIDED, That the
((licensee)) employment agency has given the name of the employer to
the applicant and has within five working days arranged an interview
with the employer and the applicant was hired as the result of that
interview;
(((9))) (8) No ((licensee)) employment agency shall require in any
manner that a potential employee or an employee of an employer make any
contract with any lending agency for the purpose of fulfilling a
financial obligation to the ((licensee)) employment agency;
(((10))) (9) All job listings must be bona fide job listings. To
qualify as a bona fide job listing the following conditions must be
met:
(a) A bona fide job listing must be obtained from a representative
of the employer that reflects an actual current job opening;
(b) A representative of the employer must be aware of the fact that
the job listing will be made available to applicants by the employment
listing service and that applicants will be applying for the job
listing;
(c) All job listings and referrals must be current. To qualify as
a current job listing the employment listing service shall contact the
employer and verify the availability of the job listing no less than
once per week;
(((11))) (10) All listings for employers listed in employment
directories shall be current. To qualify as a current employer, the
employment directory must contact the employer at least once per month
and verify that the employer is currently hiring((;)).
(12) Any aggrieved person, firm, corporation, or public officer may
submit a written complaint to the director charging the holder of an
employment agency license with violation of this chapter and/
NEW SECTION. Sec. 108 A new section is added to chapter 19.31
RCW to read as follows:
The legislature finds that the practices governed by this chapter
are matters vitally affecting the public interest for the purpose of
applying the consumer protection act, chapter 19.86 RCW. Any violation
of this chapter is not reasonable in relation to the development and
preservation of business and is an unfair and deceptive act or practice
and unfair method of competition in the conduct of trade or commerce in
violation of RCW 19.86.020. Remedies provided by chapter 19.86 RCW are
cumulative and not exclusive.
Sec. 109 RCW 19.31.250 and 1969 ex.s. c 228 s 25 are each amended
to read as follows:
(((1) The provisions of this chapter relating to the regulation of
private employment agencies shall be exclusive.)) This chapter shall not be construed to affect or reduce the
authority of any political subdivision of the state of Washington to
provide for the licensing of private employment agencies ((
(2)solely for
revenue purposes)).
NEW SECTION. Sec. 110 The following acts or parts of acts are
each repealed:
(1) RCW 19.31.050 (Approval of contract, fee schedule) and 1969
ex.s. c 228 s 5;
(2) RCW 19.31.080 (License required -- Penalty) and 1969 ex.s. c 228
s 8;
(3) RCW 19.31.100 (Application -- Contents -- Filing -- Qualifications of
applicants and licensees -- Waiver -- Exceptions) and 1993 c 499 s 4, 1982
c 227 s 14, 1977 ex.s. c 51 s 5, & 1969 ex.s. c 228 s 10;
(4) RCW 19.31.110 (Expiration date of license -- Reinstatement) and
1977 ex.s. c 51 s 6 & 1969 ex.s. c 228 s 11;
(5) RCW 19.31.120 (Transfer of license) and 1969 ex.s. c 228 s 12;
(6) RCW 19.31.130 (License sanction -- Grounds -- Support order,
noncompliance) and 2002 c 86 s 270, 1997 c 58 s 848, & 1969 ex.s. c 228
s 13;
(7) RCW 19.31.140 (Fees for licensees) and 1985 c 7 s 84, 1975 1st
ex.s. c 30 s 92, & 1969 ex.s. c 228 s 14;
(8) RCW 19.31.210 (Enforcement) and 1969 ex.s. c 228 s 21;
(9) RCW 19.31.245 (Registration or licensing prerequisite to suit
by employment agency -- Action against unregistered or unlicensed
employment agency) and 1993 c 499 s 8, 1990 c 70 s 2, & 1977 ex.s. c 51
s 10;
(10) RCW 19.31.270 (Uniform regulation of business and professions
act) and 2002 c 86 s 271; and
(11) RCW 19.31.910 (Effective date -- 1969 ex.s. c 228) and 1969
ex.s. c 228 s 28.
Sec. 201 RCW 79A.60.400 and 2000 c 11 s 104 are each amended to
read as follows:
The purpose of RCW 79A.60.440 through ((79A.60.480)) 79A.60.470 is
to further the public interest, welfare, and safety by providing for
the protection and promotion of safety in the operation of vessels
carrying passengers for hire on the whitewater rivers of this state.
Sec. 202 RCW 79A.60.420 and 2000 c 11 s 106 are each amended to
read as follows:
((Except as provided in RCW 79A.60.480,)) The commission of a
prohibited act or the omission of a required act under RCW 79A.60.430
through ((79A.60.480)) 79A.60.470 constitutes a misdemeanor, punishable
as provided under RCW 9.92.030.
Sec. 203 RCW 79A.60.430 and 1997 c 391 s 4 are each amended to
read as follows:
(1) While carrying passengers for hire on whitewater rivers in this
state, ((the licensed)) a whitewater river outfitter must carry proof
of liability insurance for a minimum of three hundred thousand dollars
per claim for occurrences by the whitewater river outfitter and the
whitewater river outfitter's employees that result in bodily injury or
property damage and shall comply with the following requirements at the
beginning of every trip:
(a) If using inflatable vessels, use only vessels with three or
more separate air chambers;
(b) Ensure that all passengers are wearing a securely fastened
United States coast guard-approved type V personal flotation device of
the proper size, and that all guides are wearing a securely fastened
United States coast guard-approved type III or type V personal
flotation device;
(c) Ensure that a spare United States coast guard-approved type III
or type V personal flotation device in good repair is accessible to all
vessels on each trip;
(d) Ensure that each vessel has on it a bagged throwable line with
a floating line and bag;
(e) Ensure that each vessel has accessible an adequate first-aid
kit;
(f) Ensure that each vessel has a spare propelling device;
(g) Ensure that a repair kit and air pump are accessible to
inflatable vessel;
(h) Ensure that equipment to prevent and treat hypothermia is
accessible to all vessels on a trip; and
(i) Ensure that each vessel is operated by a guide who has complied
with the requirements of subsection (2) of this section.
(2) No person may act as a guide unless the individual is at least
eighteen years of age and has:
(a) Successfully completed a lifesaving training course meeting
standards adopted by the commission;
(b) Completed a program of guide training on whitewater rivers,
conducted by a guide instructor, which program must run for a minimum
of fifty hours on a whitewater river and must include at least the
following elements:
(i) Equipment preparation and boat rigging;
(ii) Reading river characteristics including currents, eddies,
rapids, and hazards;
(iii) Methods of scouting and running rapids;
(iv) River rescue techniques, including emergency procedures and
equipment recovery; and
(v) Communications with clients, including paddling and safety
instruction; and
(c) Completed at least one trip on an entire section of whitewater
river before carrying passengers for hire in a vessel on any such
section of whitewater river.
(3) A guide instructor must have traveled at least one thousand
five hundred river miles, seven hundred fifty of which must have been
while acting as a guide.
(4) Any person conducting guide training on whitewater rivers
shall, upon request of a guide trainee, issue proof of completion to
the guide completing the required training program.
Sec. 204 RCW 79A.60.440 and 2000 c 11 s 107 are each amended to
read as follows:
(1) No person may operate any vessel carrying passengers for hire
on whitewater rivers in a manner that interferes with other vessels or
with the free and proper navigation of the rivers of this state.
(2) Every operator of a vessel carrying passengers for hire on
whitewater rivers shall at all times operate the vessel in a careful
and prudent manner and at such a speed as to not endanger the life,
limb, or property of any person.
(3) No vessel carrying passengers for hire on whitewater rivers may
be loaded with passengers or cargo beyond its safe carrying capacity
taking into consideration the type and construction of the vessel and
other existing operating conditions. In the case of inflatable
vessels, safe carrying capacity in whitewater shall be considered as
less than the United States coast guard capacity rating for each
vessel. This subsection shall not apply in cases of an unexpected
emergency on the river.
(4) Individuals licensed under chapter 77.32 RCW and acting as
fishing guides are exempt from RCW 79A.60.420 ((and)), 79A.60.460
((through 79A.60.480)), and 79A.60.470.
Sec. 205 RCW 79A.60.450 and 1997 c 391 s 5 are each amended to
read as follows:
(1) Whitewater river outfitters and guides on any trip carrying
passengers for hire on whitewater rivers of the state shall not allow
the use of alcohol during the course of a trip on a whitewater river
section in this state.
(2) Any vessel carrying passengers for hire on any whitewater river
section in this state must be accompanied by at least one other vessel
being operated by a ((licensed)) whitewater river outfitter or a guide
under the direction or control of a ((licensed)) whitewater river
outfitter.
NEW SECTION. Sec. 206 The following acts or parts of acts are
each repealed:
(1) RCW 79A.60.410 (Vessels carrying passengers for hire on
whitewater rivers -- Whitewater river outfitter's license required) and
2000 c 11 s 105 & 1997 c 391 s 2;
(2) RCW 79A.60.480 (Vessels carrying passengers for hire on
whitewater rivers -- Whitewater river outfitter's license -- Application --
Fees -- Insurance -- Penalties -- State immune from civil actions arising
from licensure) and 2002 c 86 s 327, 2000 c 11 s 109, 1997 c 391 s 7,
1995 c 399 s 216, & 1986 c 217 s 11;
(3) RCW 79A.60.485 (Vessels carrying passengers for hire on
whitewater rivers -- Rules to implement RCW 79A.60.480 -- Fees) and 2000 c
11 s 110 & 1997 c 391 s 9;
(4) RCW 79A.60.490 (Vessels carrying passengers for hire on
whitewater rivers -- License sanction for certain convictions) and 2002
c 86 s 328, 2000 c 11 s 111, & 1997 c 391 s 8; and
(5) RCW 79A.60.498 (Uniform regulation of business and professions
act) and 2002 c 86 s 329.
Sec. 301 RCW 19.138.010 and 1994 c 237 s 1 are each amended to
read as follows:
The legislature finds and declares that advertising, sales, and
business practices of certain sellers of travel have worked financial
hardship upon the people of this state; that the travel business has a
significant impact upon the economy and well-being of this state and
its people; that problems have arisen regarding certain sales of
travel; and that the public welfare requires ((registration))
regulation of sellers of travel in order to eliminate unfair
advertising, sales and business practices. The legislature further
finds it necessary to establish standards that will safeguard the
people against financial hardship and to encourage fair dealing and
prosperity in the travel business.
Sec. 302 RCW 19.138.021 and 2001 c 44 s 1 are each amended to
read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) (("Department" means the department of licensing.)) "Sale of travel-related benefits" means the sale of travel
services if the travel services are not identified at the time of the
sale with respect to dates, price, or location and includes:
(2) "Director" means the director of licensing or the director's
designee.
(3)
(a) Sales of travel club memberships;
(b) Sales of vacation certificates or other documents that purport
to grant the holder of the certificate or other document the ability to
obtain future travel services, with or without additional
consideration; or
(c) Sales of travel-industry member benefits including those
through either or both the issuance and sale or the consulting with or
advising for consideration of persons in connection with the obtaining
of international airlines travel agent network identification cards or
memberships.
(((4))) (2) "Travel club" means a seller of travel that sells
memberships to consumers, where the initial membership or maintenance
dues are at least twice the amount of the annual membership or
maintenance dues.
(((5))) (3) "Seller of travel-related benefits" means a person,
firm, or corporation that transacts business with Washington consumers
for the sale of travel-related benefits.
(((6))) (4) "Seller of travel" means a person, firm, or corporation
both inside and outside the state of Washington, who transacts business
with Washington consumers.
(a) "Seller of travel" includes a travel agent and any person who
is an independent contractor or outside agent for a travel agency or
other seller of travel whose principal duties include consulting with
and advising persons concerning travel arrangements or accommodations
in the conduct or administration of its business. ((If a seller of
travel is employed by a seller of travel who is registered under this
chapter, the employee need not also be registered.))
(b) "Seller of travel" does not include:
(i) An air carrier;
(ii) An owner or operator of a vessel, including an ocean common
carrier as defined in 46 U.S.C. App. 1702(18), an owner or charterer of
a vessel that is required to establish its financial responsibility in
accordance with the requirements of the federal maritime commission, 46
U.S.C. App. 817 (e), and a steamboat company whether or not operating
over and upon the waters of this state;
(iii) A motor carrier;
(iv) A rail carrier;
(v) A charter party carrier of passengers as defined in RCW
81.70.020;
(vi) An auto transportation company as defined in RCW 81.68.010;
(vii) A hotel or other lodging accommodation;
(viii) An affiliate of any person or entity described in (i)
through (vii) of this subsection (((6))) (4)(b) that is primarily
engaged in the sale of travel services provided by the person or
entity. For purposes of this subsection (((6))) (4)(b)(viii), an
"affiliate" means a person or entity owning, owned by, or under common
ownership, with "owning," "owned," and "ownership" referring to equity
holdings of at least eighty percent;
(ix) Direct providers of transportation by air, sea, or ground, or
hotel or other lodging accommodations who do not book or arrange any
other travel services.
(((7))) (5) "Travel services" includes transportation by air, sea,
or ground, hotel or any lodging accommodations, package tours, or
vouchers or coupons to be redeemed for future travel or accommodations
for a fee, commission, or other valuable consideration.
(((8))) (6) "Advertisement" includes, but is not limited to, a
written or graphic representation in a card, brochure, newspaper,
magazine, directory listing, or display, and oral, written, or graphic
representations made by radio, television, or cable transmission that
relates to travel services.
(((9))) (7) "Transacts business with Washington consumers" means to
directly offer or sell travel services or travel-related benefits to
Washington consumers, including the placement of advertising in media
based in the state of Washington or that is primarily directed to
Washington residents. Advertising placed in national print or
electronic media alone does not constitute "transacting business with
Washington consumers." Those entities who only wholesale travel
services are not "transacting business with Washington consumers" for
the purposes of this chapter.
Sec. 303 RCW 19.138.140 and 2003 c 38 s 1 are each amended to
read as follows:
(1) A seller of travel shall deposit in a trust account maintained
in a federally insured financial institution located in Washington
state((, or other account approved by the director,)) all sums held for
more than five business days that are received from a person or entity,
for retail travel services offered by the seller of travel. This
subsection does not apply to travel services sold by a seller of
travel, when payments for the travel services are made through the
airlines reporting corporation.
(2) The trust account ((or other approved account)) required by
this section shall be established and maintained for the benefit of any
person or entity paying money to the seller of travel. The seller of
travel shall not in any manner encumber the amounts in trust and shall
not withdraw money from the account except the following amounts may be
withdrawn at any time:
(a) Partial or full payment for travel services to the entity
directly providing the travel service;
(b) Refunds as required by this chapter;
(c) The amount of the sales commission;
(d) Interest earned and credited to the trust account ((or other
approved account));
(e) Remaining funds of a purchaser once all travel services have
been provided or once tickets or other similar documentation binding
upon the ultimate provider of the travel services have been provided;
or
(f) Reimbursement to the seller of travel for agency operating
funds that are advanced for a customer's travel services.
(3) The seller of travel may deposit noncustomer funds into the
trust account as needed in an amount equal to a deficiency resulting
from dishonored customer payments made by check, draft, credit card,
debit card, or other negotiable instrument.
(4) ((At the time of registration, the seller of travel shall file
with the department the account number and the name of the financial
institution at which the trust account or other approved account is
held as set forth in RCW 19.138.110. The seller of travel shall notify
the department of any change in the account number or location within
one business day of the change.)) The seller of travel need not comply with the requirements of
this section if all of the following apply, except as exempted in
subsection (1) of this section:
(5) The director, by rule, may allow for the use of other types of
funds or accounts only if the protection for consumers is no less than
that provided by this section.
(6)
(a) The payment is made by credit card;
(b) The seller of travel does not deposit, negotiate, or factor the
credit card charge or otherwise seek to obtain payment of the credit
card charge to any account over which the seller of travel has any
control; and
(c) If the charge includes transportation, the carrier that is to
provide the transportation processes the credit card charge, or if the
charge is only for services, the provider of services processes the
credit card charges.
(((7))) (5) The seller of travel need not maintain a trust account
nor comply with the trust account provisions of this section if the
seller of travel:
(a)(((i) Files and)) Maintains ((a)) an adequate surety bond
((approved by the director in an amount of not less than ten thousand
nor more than fifty thousand dollars, as determined by rule by the
director based on the gross income of business conducted for Washington
state residents by the seller of travel during the prior year. The
bond shall be executed by the applicant as obligor by a surety company
authorized to transact business in this state naming the state of
Washington as obligee for the benefit of any person or persons who have
suffered monetary loss by reason of the seller of travel's violation of
this chapter or a rule adopted under this chapter. The bond shall be
conditioned that the seller of travel will conform to and abide by this
chapter and all rules adopted under this chapter, and shall reimburse
any person or persons who suffer monetary loss by reason of a violation
of this chapter or a rule adopted under this chapter.)); or
(ii) The bond must be continuous and may be canceled by the surety
upon the surety giving written notice to the director of the surety's
intent to cancel the bond. The cancellation is effective thirty days
after the notice is received by the director.
(iii) The applicant may obtain the bond directly from the surety or
through other bonding arrangement as approved by the director.
(iv) In lieu of a surety bond, the applicant may, upon approval by
the director, file with the director a certificate of deposit, an
irrevocable letter of credit, or such other instrument as is approved
by the director by rule, drawn in favor of the director for an amount
equal to the required bond.
(v) Any person or persons who have suffered monetary loss by any
act which constitutes a violation of this chapter or a rule adopted
under this chapter may bring a civil action in court against the seller
of travel and the surety upon such bond or approved alternate security
of the seller of travel who committed the violation of this chapter or
a rule adopted under this chapter or who employed the seller of travel
who committed such violation. A civil action brought in court pursuant
to the provisions of this section must be filed no later than one year
following the later of the alleged violation of this chapter or a rule
adopted under this chapter or completion of the travel by the
customer
(b) Is a member in good standing in a professional association,
such as the United States tour operators association or national tour
association, that ((is approved by the director and that)) provides or
requires a member to provide a minimum of one million dollars in errors
and professional liability insurance and provides a surety bond or
equivalent protection in an amount of at least two hundred fifty
thousand dollars for its member companies.
(((8))) (6) If the seller of travel maintains its principal place
of business in another state and maintains a trust account or other
approved account in that state consistent with the requirement of this
section, and if that seller of travel has transacted business within
the state of Washington in an amount exceeding five million dollars for
the preceding year, the out-of-state trust account or other approved
account may be substituted for the in-state account required under this
section.
(7) Any person or persons who have suffered monetary loss by an act
which constitutes a violation of this chapter may bring a civil action
in court against the seller of travel and the surety upon such bond of
the seller of travel who committed the violation of this chapter or who
employed the seller of travel who committed the violation. A civil
action brought in court under this section must be filed no later than
one year following the later of the alleged violation of this chapter
or completion of the travel by the customer.
Sec. 304 RCW 19.138.160 and 2001 c 44 s 5 are each amended to
read as follows:
(1) A nonresident seller of travel soliciting business or selling
travel in the state of Washington, by mail, telephone, or otherwise,
either directly or indirectly, is deemed, absent any other appointment,
to have appointed the ((director)) secretary of state to be the seller
of travel's true and lawful attorney upon whom may be served any legal
process against that nonresident arising or growing out of a
transaction involving travel services or the sale of travel-related
benefits. That solicitation signifies the nonresident's agreement that
process against the nonresident that is served as provided in this
chapter is of the same legal force and validity as if served personally
on the nonresident seller of travel.
(2) Service of process upon a nonresident seller of travel shall be
made by leaving a copy of the process with the ((director)) secretary
of state. The fee for the service of process shall be determined by
the ((director)) secretary of state by rule. That service is
sufficient service upon the nonresident if the plaintiff or plaintiff's
attorney of record sends notice of the service and a copy of the
process by certified mail before service or immediately after service
to the defendant at the address given by the nonresident in a
solicitation furnished by the nonresident, and the sender's post office
receipt of sending and the plaintiff's or plaintiff's attorney's
affidavit of compliance with this section are returned with the process
in accordance with Washington superior court civil rules.
Notwithstanding the foregoing requirements, however, once service has
been made on the ((director)) secretary of state as provided in this
section, in the event of failure to comply with the requirement of
notice to the nonresident, the court may order that notice be given
that will be sufficient to apprise the nonresident.
Sec. 305 RCW 19.138.270 and 1994 c 237 s 24 are each amended to
read as follows:
(1) Each person who knowingly violates this chapter or who
knowingly gives false or incorrect information to the ((director,))
attorney general((,)) or county prosecuting attorney in filing
statements required by this chapter, whether or not the statement or
report is verified, is guilty of a gross misdemeanor punishable under
chapter 9A.20 RCW.
(2) A person who violates this chapter or who gives false or
incorrect information to the ((director,)) attorney general((,)) or
county prosecuting attorney in filing statements required by this
chapter, whether or not the statement or report is verified, is guilty
of a misdemeanor punishable under chapter 9A.20 RCW.
NEW SECTION. Sec. 306 The following acts or parts of acts are
each repealed:
(1) RCW 19.138.100 (Registration -- Number posting, use -- Duplicates -- Fee -- Assignment, transfer -- New owner -- Exemption) and 2001 c 44 s 4,
1999 c 238 s 3, 1996 c 180 s 4, & 1994 c 237 s 3;
(2) RCW 19.138.110 (Registration -- Application -- Form -- Rules -- Report)
and 1996 c 180 s 5 & 1994 c 237 s 4;
(3) RCW 19.138.120 (Registration -- Renewal -- Refusal -- Notice--Hearing) and 2002 c 86 s 277, 1999 c 238 s 4, & 1994 c 237 s 5;
(4) RCW 19.138.130 (Unprofessional conduct -- Grounds -- Registration -- Revocation and reinstatement -- Support order, noncompliance) and 2002 c
86 s 278, 1999 c 238 s 5, 1997 c 58 s 852, 1996 c 180 s 6, & 1994 c 237
s 6;
(5) RCW 19.138.170 (Director -- Powers and duties) and 2002 c 86 s
279, 1999 c 238 s 7, & 1994 c 237 s 13;
(6) RCW 19.138.1701 (Reimbursement of appropriated funds -- Fees) and
1994 c 237 s 30;
(7) RCW 19.138.180 (Director -- Investigations -- Publication of
violation) and 2002 c 86 s 280 & 1994 c 237 s 15;
(8) RCW 19.138.200 (Director or individuals acting on director's
behalf -- Immunity) and 2002 c 86 s 281 & 1994 c 237 s 20;
(9) RCW 19.138.240 (Violations -- Civil penalties -- Failure to pay)
and 2002 c 86 s 282 & 1994 c 237 s 21;
(10) RCW 19.138.250 (Violation -- Restitution assessed by director)
and 1994 c 237 s 22;
(11) RCW 19.138.260 (Registration prerequisite to suit) and 1994 c
237 s 23;
(12) RCW 19.138.310 (Filing public records -- Making information
public for public interest) and 1994 c 237 s 26;
(13) RCW 19.138.330 (Uniform regulation of business and professions
act) and 2002 c 86 s 283; and
(14) RCW 19.138.904 (Implementation -- 1994 c 237) and 1994 c 237 s
35.
Sec. 401 RCW 19.158.020 and 2003 c 39 s 12 are each amended to
read as follows:
Unless the context requires otherwise, the definitions in this
section apply throughout this chapter.
(1) A "commercial telephone solicitor" is any person who engages in
commercial telephone solicitation, including service bureaus.
(2) "Commercial telephone solicitation" means:
(a) An unsolicited telephone call to a person initiated by a
salesperson and conversation for the purpose of inducing the person to
purchase or invest in property, goods, or services;
(b) Other communication with a person where:
(i) A free gift, award, or prize is offered to a purchaser who has
not previously purchased from the person initiating the communication;
and
(ii) A telephone call response is invited; and
(iii) The salesperson intends to complete a sale or enter into an
agreement to purchase during the course of the telephone call;
(c) Other communication with a person which misrepresents the
price, quality, or availability of property, goods, or services and
which invites a response by telephone or which is followed by a call to
the person by a salesperson;
(d) For purposes of this section, "other communication" means a
written or oral notification or advertisement transmitted through any
means.
(3) A "commercial telephone solicitor" does not include any of the
following:
(a) A person engaging in commercial telephone solicitation where:
(i) The solicitation is an isolated transaction and not done in the
course of a pattern of repeated transactions of like nature; or
(ii) Less than sixty percent of such person's prior year's sales
were made as a result of a commercial telephone solicitation as defined
in this chapter. Where more than sixty percent of a seller's prior
year's sales were made as a result of commercial telephone
solicitations, the service bureau contracting to provide commercial
telephone solicitation services to the seller shall be deemed a
commercial telephone solicitor;
(b) A person making calls for religious, charitable, political, or
other noncommercial purposes;
(c) A person soliciting business solely from purchasers who have
previously purchased from the business enterprise for which the person
is calling;
(d) A person soliciting:
(i) Without the intent to complete or obtain provisional acceptance
of a sale during the telephone solicitation; and
(ii) Who does not make the major sales presentation during the
telephone solicitation; and
(iii) Who only makes the major sales presentation or arranges for
the major sales presentation to be made at a later face-to-face meeting
between the salesperson and the purchaser;
(e) A person selling a security which is exempt from registration
under RCW 21.20.310;
(f) A person licensed under RCW ((18.85.090)) 18.85.101 when the
solicited transaction is governed by that law;
(g) A person registered under RCW 18.27.060 when the solicited
transaction is governed by that law;
(h) A person licensed under RCW 48.17.150 when the solicited
transaction is governed by that law;
(i) Any person soliciting the sale of a franchise who is registered
under RCW 19.100.140;
(j) A person primarily soliciting the sale of a newspaper of
general circulation, a magazine or periodical, or contractual plans,
including book or record clubs: (i) Under which the seller provides
the consumer with a form which the consumer may use to instruct the
seller not to ship the offered merchandise; and (ii) which is regulated
by the federal trade commission trade regulation concerning "use of
negative option plans by sellers in commerce";
(k) Any supervised financial institution or parent, subsidiary, or
affiliate thereof. As used in this section, "supervised financial
institution" means any commercial bank, trust company, savings and loan
association, mutual savings banks, credit union, industrial loan
company, personal property broker, consumer finance lender, commercial
finance lender, or insurer, provided that the institution is subject to
supervision by an official or agency of this state or the United
States;
(l) A person soliciting the sale of a prearrangement funeral
service contract registered under RCW 18.39.240 and 18.39.260;
(m) A person licensed to enter into prearrangement contracts under
RCW 68.05.155 when acting subject to that license;
(n) A person soliciting the sale of services provided by a cable
television system operating under authority of a franchise or permit;
(o) A person or affiliate of a person whose business is regulated
by the utilities and transportation commission or the federal
communications commission;
(p) A person soliciting the sale of agricultural products, as
defined in RCW 20.01.010 where the purchaser is a business;
(q) An issuer or subsidiary of an issuer that has a class of
securities that is subject to section 12 of the securities exchange act
of 1934 (15 U.S.C. Sec. 781) and that is either registered or exempt
from registration under paragraph (A), (B), (C), (E), (F), (G), or (H)
of subsection (g) of that section;
(r) A commodity broker-dealer as defined in RCW 21.30.010 and
registered with the commodity futures trading commission;
(s) A business-to-business sale where:
(i) The purchaser business intends to resell the property or goods
purchased, or
(ii) The purchaser business intends to use the property or goods
purchased in a recycling, reuse, remanufacturing or manufacturing
process;
(t) A person licensed under RCW 19.16.110 when the solicited
transaction is governed by that law;
(u) A person soliciting the sale of food intended for immediate
delivery to and immediate consumption by the purchaser;
(v) A person soliciting the sale of food fish or shellfish when
that person is licensed pursuant to the provisions of Title 77 RCW.
(4) "Purchaser" means a person who is solicited to become or does
become obligated to a commercial telephone solicitor.
(5) "Salesperson" means any individual employed, appointed, or
authorized by a commercial telephone solicitor, whether referred to by
the commercial telephone solicitor as an agent, representative, or
independent contractor, who attempts to solicit or solicits a sale on
behalf of the commercial telephone solicitor.
(6) "Service bureau" means a commercial telephone solicitor who
contracts with any person to provide commercial telephone solicitation
services.
(7) "Seller" means any person who contracts with any service bureau
to purchase commercial telephone solicitation services.
(8) "Person" includes any individual, firm, association,
corporation, partnership, joint venture, sole proprietorship, or any
other business entity.
(9) "Free gift, award, or prize" means a gratuity which the
purchaser believes of a value equal to or greater than the value of the
specific product, good, or service sought to be sold to the purchaser
by the seller.
(10) "Solicit" means to initiate contact with a purchaser for the
purpose of attempting to sell property, goods or services, where such
purchaser has expressed no previous interest in purchasing, investing
in, or obtaining information regarding the property, goods, or services
attempted to be sold.
Sec. 402 RCW 19.158.040 and 2002 c 86 s 284 are each amended to
read as follows:
((In addition to the unprofessional conduct described in RCW
18.235.130, the director of the department of licensing may take
disciplinary action for any of the following conduct, acts, or
conditions:))
(1) It shall be unlawful for any person to engage in unfair or
deceptive commercial telephone solicitation.
(2) A commercial telephone solicitor shall not place calls to any
residence which will be received before 8:00 a.m. or after 9:00 p.m. at
the purchaser's local time.
(3) A commercial telephone solicitor may not engage in any conduct
the natural consequence of which is to harass, intimidate, or torment
any person in connection with the telephone call.
Sec. 403 RCW 19.158.070 and 1989 c 20 s 7 are each amended to
read as follows:
Each commercial telephone solicitor shall appoint the ((director of
the department of licensing)) secretary of state as an agent to receive
civil process under this chapter if the commercial telephone solicitor
has no ((properly registered)) agent, if the agent has resigned, or if
the agent cannot, after reasonable diligence, be found.
Sec. 404 RCW 19.158.090 and 1989 c 20 s 9 are each amended to
read as follows:
((The director of the department of licensing may refer such
evidence as may be available concerning violations of this chapter or
of any rule or order hereunder to)) The attorney general or the proper
prosecuting attorney((, who)) of the county wherein an alleged
violation arose may ((in his or her discretion, with or without such a
reference)), in addition to any other action they might commence, bring
an action in the name of the state against any person to restrain and
prevent the doing of any act or practice herein prohibited or declared
unlawful: PROVIDED, That this chapter shall be considered in
conjunction with chapters 9.04 and 19.86 RCW and the powers and duties
of the attorney general and the prosecuting attorney as they may appear
in chapters 9.04 and 19.86 RCW shall apply against all persons subject
to this chapter.
Sec. 405 RCW 19.158.110 and 1989 c 20 s 11 are each amended to
read as follows:
(1) Within the first minute of the telephone call, a commercial
telephone solicitor or salesperson shall:
(a) Identify himself or herself, the company on whose behalf the
solicitation is being made, the property, goods, or services being
sold; and
(b) Terminate the telephone call within ten seconds if the
purchaser indicates he or she does not wish to continue the
conversation.
(2) If at any time during the telephone contact, the purchaser
states or indicates that he or she does not wish to be called again by
the commercial telephone solicitor or wants to have his or her name and
individual telephone number removed from the telephone lists used by
the commercial telephone solicitor:
(a) The commercial telephone solicitor shall not make any
additional commercial telephone solicitation of the called party at
that telephone number within a period of at least one year; and
(b) The commercial telephone solicitor shall not sell or give the
called party's name and telephone number to another commercial
telephone solicitor: PROVIDED, That the commercial telephone
solicitor may return the list, including the called party's name and
telephone number, to the company or organization from which it received
the list.
(3) The utilities and transportation commission shall by rule
ensure that telecommunications companies inform their residential
customers of the provisions of this section. The notification may be
made by:
(a) Annual inserts in the billing statements mailed to residential
customers; or
(b) Conspicuous publication of the notice in the consumer
information pages of local telephone directories.
(4) If a sale or an agreement to purchase is completed, the
commercial telephone solicitor must inform the purchaser of his or her
cancellation rights as enunciated in this chapter((, state the
registration number issued by the department of licensing,)) and give
the street address of the seller.
(5) ((If, at any time prior to sale or agreement to purchase, the
commercial telephone solicitor's registration number is requested by
the purchaser, it must be provided.)) All oral disclosures required by this section shall be made
in a clear and intelligible manner.
(6)
Sec. 406 RCW 19.158.120 and 1989 c 20 s 12 are each amended to
read as follows:
(1) A purchase of property, goods, or services ordered as a result
of a commercial telephone solicitation as defined in this chapter, if
not followed by a written confirmation, is not final. The confirmation
must contain an explanation of the consumer's rights under this section
and a statement indicating where notice of cancellation should be sent.
The purchaser may give notice of cancellation to the seller in writing
within three business days after receipt of the confirmation. If the
commercial telephone solicitor has not provided an address for receipt
of such notice, cancellation is effective by mailing the notice to the
((department of licensing)) attorney general.
(2) Notice of cancellation shall be given by certified mail, return
receipt requested, and shall be effective when mailed. Notice of
cancellation given by the purchaser need not take a particular form and
is sufficient if it indicates by any form of written expression the
name, address, and telephone number of the purchaser and the
purchaser's stated intention not to be bound by the sale.
(3) If a commercial telephone solicitor or a seller, if different,
violates this chapter in making a sale, or fails to deliver an item
within forty-two calendar days, the contract is voidable by giving
written notice to the seller and the purchaser is entitled to a return
from the seller within fourteen days of all consideration paid. Upon
receipt by the purchaser of the consideration paid to the seller, the
purchaser shall make available to the seller, at a reasonable time and
place, the items received by the purchaser. Any cost of returning the
items received by the purchaser shall be borne by the seller, by
providing or guaranteeing payment for return shipping. If such payment
is not provided or guaranteed, the purchaser may keep without further
obligation the items received.
(4) Any contract, agreement to purchase, or written confirmation
executed by a seller which purports to waive the purchaser's rights
under this chapter is against public policy and shall be unenforceable:
PROVIDED, That an agreement between a purchaser and seller to extend
the delivery time of an item to more than forty-two days shall be
enforceable if the seller has a reasonable basis to expect that he or
she will be unable to ship the item within forty-two days and if the
agreement is included in the terms of the written confirmation.
(5) Where a contract or agreement to purchase confers on a
purchaser greater rights to cancellation, refund, or return than those
enumerated in this chapter, such contract shall be enforceable, and not
in violation of this chapter: PROVIDED, That all rights under such a
contract or agreement to purchase must be specifically stated in a
written confirmation sent pursuant to this section.
(6) The provisions of this section shall not reduce, restrict, or
eliminate any existing rights or remedies available to purchasers.
NEW SECTION. Sec. 407 The following acts or parts of acts are
each repealed:
(1) RCW 19.158.050 (Registration requirements -- Unprofessional
conduct -- Suspension of license or certificate for noncompliance with
support order -- Reinstatement) and 2002 c 86 s 285, 1997 c 58 s 853, &
1989 c 20 s 5;
(2) RCW 19.158.080 (Duties of director) and 1989 c 20 s 8;
(3) RCW 19.158.150 (Registration required -- Penalty) and 1989 c 20
s 15;
(4) RCW 19.158.170 (Uniform regulation of business and professions
act) and 2002 c 86 s 286; and
(5) RCW 19.158.901 (Effective date -- 1989 c 20) and 1989 c 20 s 20.
Sec. 501 RCW 19.105.300 and 1988 c 159 s 1 are each amended to
read as follows:
As used in this chapter, unless the context clearly requires
otherwise:
(1) "Camping resort" means any enterprise, other than one that is
tax exempt under section 501(c)(3) of the Internal Revenue Code of
1986, as amended, that has as its primary purpose the ownership,
operation, or promotion of campgrounds that includes or will include
camping sites.
(2) "Camping resort contract" means an agreement evidencing a
purchaser's title to, estate or interest in, or right or license to use
for more than thirty days the campground of a camping resort.
(3) "Camping site" means a space designed and promoted for the
purpose of locating a trailer, tent, tent trailer, pick-up camper, or
other similar device used for land-based portable housing.
(4) "Purchaser" means a person who enters into a camping resort
contract and thereby obtains title to, an estate or interest in, or
license or the right to use the campground of a camping resort.
(5) "Person" means any individual, corporation, partnership, trust,
association, or other organization other than a government or a
subdivision thereof.
(6) (("Director" means the director of licensing.)) "Camping resort operator" means any person who establishes,
promotes, owns, or operates a camping resort.
(7)
(((8))) (7) "Advertisement" means any offer, written, printed,
audio, or visual, by general solicitation, including all material used
by an operator in a membership referral program.
(((9))) (8) "Offer" means any solicitation reasonably designed to
result in the entering into of a camping resort contract.
(((10))) (9) "Sale" or "sell" means entering into, or other
disposition, of a camping resort contract for value, but the term value
does not include a reasonable fee to offset the ministerial costs of
transfer of a camping resort contract if, in transferring the contract
or membership, the terms of the original contract or membership are not
changed by the camping resort operator.
(((11))) (10) "Salesperson" means any individual, other than a
camping resort operator, who is engaged in obtaining commitments of
persons to enter into camping resort contracts by making a sales
presentation to, or negotiating sales with, the persons, but does not
include members of a camping resort engaged in the referral of persons
without making a sales presentation to the persons.
(((12))) (11) "Affiliate" means any person who, directly or
indirectly through one or more intermediaries, controls or is
controlled by or is under common control of a registrant or camping
resort operator.
(((13))) (12) "Campground" means real property owned or operated by
a camping resort that is available for camping or outdoor recreation by
purchasers of camping resort contracts.
(((14) "Department" means the department of licensing.)) (13) "Resale camping resort contract" means 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.
(15)
(((16))) (14) "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.
(((17))) (15) "Blanket encumbrance" means any mortgage, deed of
trust, option to purchase, vendor's lien or interest under a contract
or agreement of sale, or other material financing lien or encumbrance
granted by the camping resort operator or affiliate that secures or
evidences the obligation to pay money or to sell or convey any
campgrounds made available to purchasers by the camping resort operator
or any portion thereof and that authorizes, permits, or requires the
foreclosure or other disposition of the campground affected.
(((18))) (16) "Nondisturbance agreement" means an instrument by
which the holder of a blanket encumbrance agrees that: (a) Its rights
in any campground made available to purchasers, prior or subsequent to
the agreement, by the camping resort operator shall be subordinate to
the rights of purchasers from and after the recording of the
instrument; (b) the holder and all successors and assignees, and any
person who acquires the campground through foreclosure or by deed in
lieu of foreclosure of such blanket encumbrance, shall take the
campground subject to the use rights of purchasers; and (c) the holder
or any successor acquiring the campground through the blanket
encumbrance shall not discontinue use, or cause the campground to be
used, in a manner which would materially prevent purchasers from using
or occupying the campground in a manner contemplated by the purchasers'
camping resort contracts. However, the holder has no obligation or
liability to assume the responsibilities or obligations of the camping
resort operator under camping resort contracts.
Sec. 502 RCW 19.105.336 and 1988 c 159 s 7 are each amended to
read as follows:
(1) With respect to every campground located within the state which
was not made available to purchasers of camping resort contracts prior
to June 20, 1988, and with respect to any new blanket encumbrance
placed against any campground in this state or any prior blanket
encumbrance against any campground in this state with respect to which
the underlying obligation is refinanced after June 20, 1988, the
camping resort operator shall not represent any such campground to be
available to purchasers of its camping resort contracts until one of
the following events has occurred with regard to each such blanket
encumbrance:
(a) The camping resort operator obtains and records as covenants to
run with the land a nondisturbance agreement from each holder of the
blanket encumbrance. The nondisturbance agreement shall be executed by
the camping resort operator and by each holder of the blanket
encumbrance and shall include the provisions set forth in RCW
19.105.300(((18))) (16) and the following:
(i) The instrument may be enforced by individual purchasers of
camping resort contracts. If the camping resort operator is not in
default under its obligations to the holder of the blanket encumbrance,
the agreement may be enforced by the camping resort operator.
(ii) The agreement shall be effective as between each purchaser and
the holder of the blanket encumbrance despite any rejection or
cancellation of the purchaser's contract during any bankruptcy
proceedings of the camping resort operator.
(iii) The agreement shall be binding upon the successors in
interest of both the camping resort operator and the holder of the
blanket encumbrance.
(iv) A holder of the blanket encumbrance who obtains title or
possession or who causes a change in title or possession in a
campground by foreclosure or otherwise and who does not continue to
operate the campground upon conditions no less favorable to members
than existed prior to the change of title or possession shall either:
(A) Offer the title or possession to an association of members to
operate the campground; or
(B) Obtain a commitment from another entity which obtains title or
possession to undertake the responsibility of operating the campground.
(b) The camping resort operator ((posts)) maintains a bond or
irrevocable letter of credit ((with the director in a form satisfactory
to the director)) in the amount of the aggregate principal indebtedness
remaining due under the blanket encumbrance.
(c) The camping resort operator ((delivers)) has entered into an
encumbrance trust agreement ((in a form satisfactory to the director)),
as provided in subsection (2) of this section.
(((d) The camping resort operator delivers other financial
assurances reasonably acceptable to the director.))
(2) With respect to any campground located within the state other
than a campground described in subsection (1) of this section, the
camping resort operator shall not represent the campground to be
available to purchasers of camping resort contracts after June 20,
1988, until one of the following events has occurred with regard to
each blanket encumbrance:
(a) The camping resort operator obtains and records a
nondisturbance agreement to run with the land pursuant to subsection
(1) of this section from each holder of the blanket encumbrance.
(b) The camping resort operator ((posts)) maintains a surety bond
or irrevocable letter of credit ((with the director in a form
satisfactory to the director)) in the amount of the aggregate principal
indebtedness remaining due under the blanket encumbrance.
(c) The camping resort operator ((delivers to the director, in a
form satisfactory to the director,)) enters into an encumbrance trust
agreement ((among)) between the camping resort operator((,)) and a
trustee (which can be either a corporate trustee licensed to act as a
trustee under Washington law, licensed escrow agent, or a licensed
attorney)((, and the director)).
(d) The camping resort operator ((delivers evidence to the director
that any)) has obtained a hypothecation loan from a financial
institution that has ((made a hypothecation loan to the camping resort
operator (the "hypothecation lender") shall have)) a lien on, or
security interest in, the camping resort operator's interest in the
campground, and the hypothecation lender ((shall have)) has executed
and recorded a nondisturbance agreement in the real estate records of
the county in which the campground is located. Each person holding an
interest in a blanket encumbrance superior to the interest held by the
hypothecation lender shall have executed and recorded an instrument
stating that such person shall give the hypothecation lender notice of,
and at least thirty days to cure, any default under the blanket
encumbrance before the person commences any foreclosure action
affecting the campground. For the purposes of this subsection, a
hypothecation loan to a camping resort operator is a loan or line of
credit secured by the camping resort contracts receivable arising from
the sale of camping resort contracts by the camping resort operator,
which exceeds in the aggregate all outstanding indebtedness secured by
blanket encumbrances superior to the interest held by the hypothecation
lender.
(((e) The camping resort operator delivers other financial
assurances reasonably acceptable to the director.))
(3) Any camping resort operator which does not comply at all times
with subsection (1) or (2) of this section with regard to any blanket
encumbrance in connection with any applicable campground is prohibited
from offering any camping resort contracts for sale in Washington
during the period of noncompliance.
Sec. 503 RCW 19.105.340 and 1988 c 159 s 8 are each amended to
read as follows:
(1) In addition to other remedies authorized by chapter 19.86 RCW
if the ((director)) attorney general finds that ((the applicant or
registrant)) a camping resort operator has not by other means assured
future availability to and quiet enjoyment of the campgrounds and
facilities, as required under this chapter, the ((director)) attorney
general may, notwithstanding the provisions of RCW 19.105.336, require
impoundment of the funds or membership receivables, or both, from
camping resort contract sales, including the impoundment of periodic
dues or assessments required of purchasers under the contracts, or
provide other assurances acceptable to the ((director)) attorney
general, until sufficient funds have been impounded or arrangements
made to alleviate the inadequacy. The ((director)) court upon petition
by the attorney general may, upon finding it reasonable and necessary,
for compliance with RCW 19.105.336 ((and 19.105.365)), and not
inconsistent with the protection of purchasers or owners of camping
resort contracts, provide for release to the ((applicant, registrant,))
camping resort operator or others of all or a portion of the impounded
funds, membership receivables, or other assets in the impound. The
((director)) court may take appropriate measures to assure that the
impounded funds will be applied as required by this chapter.
(2) Funds placed in impounds under this section ((or reserve
accounts under RCW 19.105.350)) are not subject to lien, attachment, or
the possession of lenders or creditors of the operator, trustees in
bankruptcy, receivers, or other third parties. In instances of
bankruptcy, foreclosure, attachment, or other contingency where the
ownership or beneficiary status of funds in depositories, or the
receivables and funds to be collected from receivables, may be at
issue, the purchasers of contracts under this chapter, as a class,
shall be deemed the beneficiary. No individual purchaser or group of
purchasers, other than the purchasers as a class, have any right to
possession, attachment, lien, or right of partition of funds or
receivables in the impound or reserve.
(3) It is unlawful for an operator or other person to assign,
hypothecate, sell, or pledge any contract or other asset placed into an
impound ((or reserve)) under this chapter without the express written
approval of the ((director)) attorney general or a court of competent
jurisdiction.
Sec. 504 RCW 19.105.370 and 1988 c 159 s 13 are each amended to
read as follows:
((Except in a transaction exempt under RCW 19.105.325,)) Any
operator who offers or sells camping resort contracts in this state
shall provide the prospective purchaser with ((the)) a written
((disclosures required to be filed under RCW 19.105.320(1)(b) in a form
that is materially accurate and complete before the prospective
purchaser signs a camping resort contract or gives any item of value
for the purchase of a camping resort contract. The department may
provide its own disclosures, supplementing those of the operator, in
any format it deems appropriate. The department shall not be held
liable for any alleged failure to disclose information or for
deficiencies in the content of its disclosures when such disclosures
are based upon information provided by the operator or a registrant.))
disclosure document before the prospective purchaser signs a camping
resort contract or gives any item of value for the purchase of a
camping resort contract. The disclosures must include:
(1) The name and address of the camping resort operator and any
material affiliate and, if the operator is other than a natural person,
the identity of each person owning a ten percent or greater share or
interest;
(2) A brief description of the camping resort operator's experience
in the camping resort business;
(3) A brief description of the nature of the purchaser's title to,
estate or interest in, or right to use the camping resort property or
facilities and whether or not the purchaser will obtain an estate,
title to, or interest in specified real property;
(4) The location and a brief description of the significant
facilities and recreation services then available for use by purchasers
and those which are represented to purchasers as being planned,
together with a statement whether any of the resort facilities or
recreation services will be available to nonpurchasers or the general
public;
(5) A brief description of the camping resort's ownership of or
other right to use the camping resort properties or facilities
represented to be available for use by purchasers, together with a
brief description of any material encumbrance, the duration of any
lease, real estate contract, license, franchise, reciprocal agreement,
or other agreement entitling the camping resort operator to use the
property, and any material provisions of the agreements which restrict
a purchaser's use of the property;
(6) A summary of any local or state health, environmental,
subdivision, or zoning requirements or permits that have not been
complied with for the resort property or facility represented to
purchasers as in or planned for the campground;
(7) A copy of the articles, bylaws, rules, restrictions, or
covenants regulating the purchaser's use of each property, the
facilities located on each property, and any recreation services
provided;
(8) A statement of whether and how the articles, declarations,
bylaws, rules, restrictions, or covenants used in structuring the
project may be changed and whether and how the members may participate
in the decision on the changes;
(9) A brief description of all payments of a purchaser under a
camping resort contract, including initial fees and any further fees,
charges, or assessments, together with any provisions for changing the
payments;
(10) A description of any restraints on the transfer of camping
resort contracts;
(11) A brief description of the policies relating to the
availability of camping sites and conditions under which reservations
are required and the availability of the sites to guests and family
members;
(12) A disclosure covering the right of the camping resort operator
and their heirs, assigns, and successors in interest to change,
substitute, or withdraw from use all or a portion of the camping resort
properties or facilities and the extent to which the operator is
obligated to replace camping resort facilities or properties withdrawn;
(13) A brief description of any grounds for forfeiture of a
purchaser's camping resort contract;
(14) A statement concerning the effect upon membership camping
resort contracts if there is a foreclosure affecting any of the
operator's properties, a bankruptcy, or creditor or lienholder action
affecting the operator or the camping resort properties; and
(15) A statement of the total number of camping resort contracts
then in effect, both within and without this state; and a statement of
the total number of camping resort contracts intended to be sold, both
within and without this state.
Sec. 505 RCW 19.105.390 and 1988 c 159 s 15 are each amended to
read as follows:
Any camping resort contract may be canceled at the option of the
purchaser, if the purchaser sends notice of the cancellation by
certified mail (return receipt requested) to the camping resort
operator at the address contained in the camping resort contract and if
the notice is postmarked not later than midnight of the third business
day following the day on which the contract is signed. ((In addition
to this cancellation right, any purchaser who signs a camping resort
contract of any description required to be registered with the
department without having received the written disclosures required by
this chapter has cancellation rights until three business days
following eventual receipt of the written disclosures.)) Purchasers
shall request cancellation of contracts by sending the notice of
cancellation by certified mail (return receipt requested), postmarked
not later than midnight of the third business day following the day on
which the contract is signed ((or the day on which the disclosures were
actually received, whichever event is later to)), the camping resort
operator at the address contained in the camping resort contract. In
computing the number of business days, the day on which the contract
was signed shall not be included as a "business day," nor shall
Saturday, Sunday, or legal holidays be included. Within three business
days following receipt of timely and proper notice of cancellation from
the purchaser, the camping resort operator shall provide evidence that
the contract has been cancelled. Thereafter, any money or other
consideration paid by the purchaser shall be promptly refunded.
Every camping resort contract, other than those being offered ((and
registered)) as resales, shall include the following statement in at
least ten-point bold-face type immediately prior to the space for the
purchaser's signature:
"Purchaser's right to cancel: You may cancel this contract without
any cancellation fee or other penalty, or stated reason for doing so,
by sending notice of cancellation by certified mail, return receipt
requested, to . . . . . . (insert name and address of camping resort
operator). The notice must be postmarked by midnight of the third
business day following the day on which the contract is signed. In
computing the three business days, the day on which the contract is
signed shall not be included as a "business day," nor shall Saturday,
Sunday, or legal holidays be included."
If the purchaser has not inspected a camping resort property or
facility at which camping resort sites are located or planned, the
notice must contain the following additional language:
"If you sign this contract without having inspected a property at
which camping sites are located or planned, you may cancel this
contract by giving this notice within six (6) business days following
the day on which you signed the contract."
Sec. 506 RCW 19.105.400 and 1988 c 159 s 16 are each amended to
read as follows:
(1) Any camping resort contract entered into in violation of this
chapter may be voided by the purchaser and the purchaser's entire
consideration recovered at the option of the purchaser, but no suit
under this section may be brought after two years from the date the
contract is signed.
(2) In the event the operator sells or otherwise permanently
withdraws a camping resort from use by purchasers, those purchasers who
are then current in their obligations under resort contracts may, at
purchaser's option and in writing, elect to cancel their contracts and
receive fifty percent of the principal portion of the purchase price
they have already paid for the camping resort contract. If the
purchaser's camping resort contract entitles the purchaser to use of
multiple camping resorts located in Washington and operated by the
promoter named in purchaser's contract, the refund must be reduced to
forty percent if there are two remaining resorts, to thirty percent if
there are three remaining resorts, or to twenty percent if there are
four or more remaining resorts. Interest paid on purchase contracts
and annual dues and assessments may not be included in the calculation
of principal price paid.
(3) Purchasers who have paid the purchase price of their contract
in full and are then current in annual dues and assessments may cancel
their contracts. Cancellation must be in writing and sent to the
promoter's last known address by certified mail, return receipt
requested.
Sec. 507 RCW 19.105.470 and 2002 c 86 s 275 are each amended to
read as follows:
(((1) Whenever it appears to the director that any person has
engaged or is about to engage in any act or practice constituting a
violation of any provision of this chapter, any withdrawal of a camping
resort property in violation of RCW 19.105.380(1)(o), or any rule,
order, or permit issued under this chapter, the director may in his or
her discretion issue an order directing the person to cease and desist
from continuing the act or practice. The procedures in RCW 18.235.150
apply to these cease and desist orders. However, the director may
issue a temporary order pending the hearing which shall be effective
immediately upon delivery to the person affected and which shall remain
in effect until ten days after the hearing is held and which shall
become final if the person to whom notice is addressed does not request
a hearing.)) If it appears necessary in order to protect the interests of
members and purchasers, ((
(2)whether or not the director has issued a
cease and desist order, the attorney general in the name of the state,
the director, the proper prosecuting attorney,)) an affiliated members'
common-interest association, or a group of members as a class, may
bring an action in any court of competent jurisdiction to enjoin any
((such)) acts or practices constituting a violation of this chapter and
to enforce compliance with this chapter ((or any rule, order, or permit
under this chapter)). Upon a proper showing, a permanent or temporary
injunction, restraining order, or writ of mandamus shall be granted and
a receiver or conservator may be appointed for the defendant, for the
defendant's assets, or to protect the interests or assets of a members'
common-interest association or the members of a camping resort as a
class. ((The state, the director,)) A members' common-interest
association, or members as a class shall not be required to post a bond
in such proceedings.
Sec. 508 RCW 19.105.480 and 2003 c 53 s 152 are each amended to
read as follows:
(1) ((Any person who willfully fails to register an offering of
camping resort contracts under this chapter is guilty of a gross
misdemeanor.)) It is a gross misdemeanor for any person in connection with
the offer or sale of any camping resort contracts willfully and
knowingly:
(2)
(a) To make any untrue or misleading statement of a material fact,
or to omit to state a material fact necessary in order to make the
statements made, in the light of the circumstances under which they are
made, not misleading;
(b) To employ any device, scheme, or artifice to defraud;
(c) To engage in any act, practice, or course of business which
operates or would operate as a fraud or deceit upon any person;
(d) ((To file, or cause to be filed, with the director any document
which contains any untrue or misleading information;)) To breach any impound, escrow, trust, or other security
arrangement provided for by this chapter;
(e)
(((f))) (e) To cause the breaching of any trust, escrow, impound,
or other arrangement placed in a registration for compliance with RCW
19.105.336; or
(((g))) (f) To ((employ unlicensed salespersons or)) permit
salespersons or employees to make misrepresentations or violate this
chapter.
(((3))) (2) No indictment or information may be returned under this
chapter more than five years after the date of the event alleged to
have been a violation.
Sec. 509 RCW 19.105.490 and 1982 c 69 s 20 are each amended to
read as follows:
((The director may refer such evidence as may be available
concerning violations of this chapter or of any rule or order under
this chapter to)) The attorney general or the proper prosecuting
attorney ((who)) of the county wherein an alleged violation arose may
((in his discretion, with or without such a reference,)) institute the
appropriate civil or criminal proceedings under this chapter.
Sec. 510 RCW 19.105.500 and 1982 c 69 s 21 are each amended to
read as follows:
((For the purposes of application of the consumer protection act,
chapter 19.86 RCW, any material violation of the provisions of this
chapter shall be construed to constitute an unfair or deceptive act or
practice or unfair method of competition in the conduct of trade or
commerce.)) The legislature finds that the practices governed by this
chapter are matters vitally affecting the public interest for the
purpose of applying the consumer protection act, chapter 19.86 RCW.
Any violation of this chapter is not reasonable in relation to the
development and preservation of business and is an unfair and deceptive
act or practice and unfair method of competition in the conduct of
trade or commerce in violation of RCW 19.86.020. Remedies provided by
chapter 19.86 RCW are cumulative and not exclusive.
NEW SECTION. Sec. 511 The following acts or parts of acts are
each repealed:
(1) RCW 19.105.310 (Unlawful to offer or sell contract unless
contract registered -- Exemptions) and 2005 c 112 s 1, 1988 c 159 s 2, &
1982 c 69 s 2;
(2) RCW 19.105.320 (Registration -- Filings required upon
application -- Waiver) and 1988 c 159 s 3 & 1982 c 69 s 3;
(3) RCW 19.105.325 (Exemptions from chapter) and 2005 c 112 s 2 &
1988 c 159 s 4;
(4) RCW 19.105.330 (Registration -- Effective, when -- Completed form
of application required) and 2000 c 171 s 68, 1988 c 159 s 5, & 1982 c
69 s 4;
(5) RCW 19.105.333 (Signature of operator, trustee, or holder of
power of attorney required on application documentation) and 1988 c 159
s 6;
(6) RCW 19.105.345 (Persons licensed under chapter 18.85 RCW exempt
from salesperson registration requirements) and 1988 c 159 s 9;
(7) RCW 19.105.350 (Director may require reserve fund by order -- Actions against a registration) and 2002 c 86 s 272, 1988 c 159 s 10,
& 1982 c 69 s 6;
(8) RCW 19.105.360 (Filing of sales literature, contract form,
disclosure supplements) and 1988 c 159 s 11 & 1982 c 69 s 7;
(9) RCW 19.105.365 (Advertising promises of free gifts, awards, or
prizes -- Provision of gift or substitute -- Security arrangements after
violation -- Advance fees placed in trust -- Membership referral programs
considered promotional programs) and 1991 c 227 s 9 & 1988 c 159 s 12;
(10) RCW 19.105.380 (Unprofessional conduct/disciplinary action -- Grounds -- Liability for administrative and legal costs -- Assurances of
discontinuance -- Support order, noncompliance) and 2005 c 25 s 3, 2002
c 86 s 273, 1997 c 58 s 850, 1988 c 159 s 14, & 1982 c 69 s 9;
(11) RCW 19.105.411 (Fees) and 1988 c 159 s 18;
(12) RCW 19.105.420 (Resort contracts -- Registration, duration -- Renewal, amendment -- Renewal of prior permits) and 1988 c 159 s 19 &
1982 c 69 s 13;
(13) RCW 19.105.430 (Unlawful to act as salesperson without
registering -- Exemptions) and 1988 c 159 s 20 & 1982 c 69 s 14;
(14) RCW 19.105.440 (Registration as salesperson -- Application -- Unprofessional conduct -- Assurances of discontinuance -- Renewal of
registration--Support order, noncompliance) and 2002 c 86 s 274, 1997
c 58 s 851, 1988 c 159 s 21, & 1982 c 69 s 15;
(15) RCW 19.105.450 (Investigations -- Scope -- Publishing information)
and 1988 c 159 s 22 & 1982 c 69 s 16;
(16) RCW 19.105.520 (Unlawful to represent director's
administrative approval as determination as to merits of resort -- Penalty) and 2003 c 53 s 153, 1988 c 159 s 26, & 1982 c 69 s 24;
(17) RCW 19.105.530 (Rules, forms, orders -- Administration of
chapter) and 1988 c 159 s 27 & 1982 c 69 s 25;
(18) RCW 19.105.540 (Administrative procedure act application) and
1982 c 69 s 26;
(19) RCW 19.105.550 (Administration) and 1982 c 69 s 27;
(20) RCW 19.105.560 (Uniform regulation of business and professions
act) and 2002 c 86 s 276; and
(21) RCW 19.105.930 (Effective date -- 1982 c 69) and 1982 c 69 s 32.
Sec. 601 RCW 18.11.050 and 1986 c 324 s 2 are each amended to
read as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Auctioneer" means an individual who calls bids at an auction.
(2) "Auction" means a transaction conducted by means of exchanges
between an auctioneer and the members of his or her audience,
constituting a series of invitations for offers for the purchase of
goods or real property made by the auctioneer, offers by members of the
audience, and the acceptance of the highest or most favorable offer.
(3) "Auction mart" means any fixed or established place designed,
intended, or used for the conduct of auctions.
(4) "Auction company" means a sole proprietorship, partnership,
corporation, or other legal or commercial entity that sells or offers
to sell goods or real estate at auction or arranges, sponsors, or
manages auctions. The term "auction company" shall exclude any sole
proprietorship owned by an auctioneer licensed under this chapter whose
gross annual sales do not exceed twenty-five thousand dollars.
(5) (("Department" means the department of licensing.)) "Person" means an individual, partnership, association,
corporation, or any other form of business enterprise.
(6) "Director" means the director of licensing.
(7)
(((8))) (6) "Goods" mean wares, chattels, merchandise, or personal
property owned or consigned, which may be lawfully kept or offered for
sale.
(((9) "License" means state authority to operate as an auctioneer
or auction company, which authority is conferred by issuance of a
certificate of registration subject to annual renewal.))
(10) "Licensee" means an auctioneer or auction company registered
under this chapter.
Sec. 602 RCW 18.11.070 and 1999 c 398 s 1 are each amended to
read as follows:
(((1) It is unlawful for any person to act as an auctioneer or for
an auction company to engage in any business in this state without a
license.)) This chapter does not apply to:
(2)
(((a))) (1) An auction of goods conducted by an individual who
personally owns those goods and who did not acquire those goods for
resale;
(((b))) (2) An auction conducted by or under the direction of a
public authority;
(((c))) (3) An auction held under judicial order in the settlement
of a decedent's estate;
(((d))) (4) An auction which is required by law to be at auction;
(((e))) (5) An auction conducted by or on behalf of a political
organization or a charitable corporation or association if the person
conducting the sale receives no compensation;
(((f))) (6) An auction of livestock or agricultural products which
is conducted under chapter 16.65 or 20.01 RCW. Auctions not regulated
under chapter 16.65 or 20.01 RCW shall be fully subject to the
provisions of this chapter;
(((g))) (7) An auction held under chapter 19.150 RCW;
(((h))) (8) An auction of an abandoned vehicle under chapter 46.55
RCW; or
(((i))) (9) An auction of fur pelts conducted by any cooperative
association organized under chapter 23.86 RCW or its wholly owned
subsidiary. In order to qualify for this exemption, the fur pelts must
be from members of the association. However, the association, without
loss of the exemption, may auction pelts that it purchased from
nonmembers for the purpose of completing lots or orders, so long as the
purchased pelts do not exceed fifteen percent of the total pelts
auctioned.
Sec. 603 RCW 18.11.100 and 2002 c 86 s 208 are each amended to
read as follows:
(1) Nonresident auctioneers and auction companies are required to
comply with the provisions of this chapter((, chapter 18.235 RCW, and
the rules of the department)) as a condition of conducting business in
the state.
(2) ((The application of)) An auction held by a nonresident ((under
this chapter)) auctioneer or auction company shall constitute the
appointment of the secretary of state as the ((applicant's))
auctioneer's or auction company's agent upon whom process may be served
in any action or proceeding against the ((applicant)) auctioneer or
auction company arising out of a transaction or operation connected
with or incidental to the business of an auctioneer or an auction
company.
Sec. 604 RCW 18.11.121 and 1987 c 336 s 2 are each amended to
read as follows:
(1) ((Except as provided in this section,)) Each auctioneer and
each auction company shall ((as a condition to the granting and
retention of a license have on file with the department an approved))
obtain and maintain a surety bond ((or other security in lieu of a
bond. However, if an auction company is a sole proprietorship or a
partnership and has on file with the department a surety bond or other
security approved by the director in the amount that would otherwise be
required for an auction company to be granted or to retain a license
under this section, then no separate bond or bonds shall be required
for the sole proprietor or any individual partner to act as an
auctioneer for the sole proprietorship or partnership. The bond or
other security of an auctioneer shall be)) in the amount of five
thousand dollars for the benefit of any person injured or damaged as a
result of any violation by the auctioneer or auction company of any of
the provisions of this chapter.
(2) ((The bond or other security of an auction company shall be in
an amount not less than five thousand dollars and not more than twenty-five thousand dollars. The amount shall be based on the value of the
goods and real estate sold at auctions conducted, supervised, arranged,
sponsored, or managed by the auction company during the previous
calendar year or, for a new auction company, the estimated value of the
goods and real estate to be sold at auction during the current calendar
year. The director shall establish by rule the procedures to be used
for determining the amount of auction company bonds or other security.)) Each bond shall comply with all of the following:
(3) In lieu of a surety bond, an auctioneer or auction company may
deposit with the department any of the following:
(a) Savings accounts assigned to the director;
(b) Certificates of deposit payable to the director;
(c) Investment certificates or share accounts assigned to the
director; or
(d) Any other security acceptable to the director.
All obligations and remedies relating to surety bonds authorized by
this section shall apply to deposits filed with the director.
(4)
(a) Be executed by the ((person seeking the license)) auctioneer or
auction company as principal and by a corporate surety licensed to do
business in the state;
(b) Be payable to the state; and
(c) Be conditioned on compliance with all provisions of this
chapter ((and the agency rules adopted pursuant to this chapter,
including payment of any administrative fines assessed against the
licensee; and)).
(d) Remain in effect for one year after expiration, revocation, or
suspension of the license
(((5) If any licensee fails or is alleged to have failed to comply
with the provisions of this chapter or the agency rules adopted
pursuant to this chapter, the director may hold a hearing in accordance
with chapter 34.05 RCW, determine those persons who are proven
claimants under the bond, and, if appropriate, distribute the bond
proceeds to the proven claimants.)) (3) The state or an injured person
may ((also)) bring an action against the bond in superior court for a
violation of this chapter. The liability of the surety shall be only
for actual damages and shall not exceed the amount of the bond.
(((6))) (4) Damages that exceed the amount of the bond may be
remedied by actions against the auctioneer or the auction company under
RCW 18.11.260 or other available remedies at law.
Sec. 605 RCW 18.11.130 and 1986 c 324 s 9 are each amended to
read as follows:
No goods or real estate shall be sold at auction until the
auctioneer or auction company has entered into a written contract or
agreement with the owner or consignor in duplicate which contains the
terms and conditions upon which the ((licensee)) auctioneer or auction
company receives or accepts the property for sale at auction.
((A person who violates this section shall be subject to an
administrative fine in a sum not exceeding five hundred dollars for
each violation.))
Sec. 606 RCW 18.11.140 and 1986 c 324 s 10 are each amended to
read as follows:
Every person engaged in the business of selling goods or real
estate at auction shall keep written records for a period of three
years available for inspection which indicate clearly the name and
address of the owner or consignor of the goods or real estate, the
terms of acceptance and sale, and a copy of the signed written contract
required by RCW 18.11.130. ((A person who violates this section shall
be subject to an administrative fine in a sum not exceeding five
hundred dollars for each violation.))
Sec. 607 RCW 18.11.220 and 1987 c 336 s 3 are each amended to
read as follows:
The client of an auctioneer or auction company has a right to (1)
an accounting for any money that the auctioneer or auction company
receives from the sale of the client's goods, (2) payment of all money
due to the client within twenty-one calendar days unless the parties
have mutually agreed in writing to another time of payment, and (3)
bring an action against the surety bond ((or other security filed in
lieu of the surety bond)) for any violation of this chapter ((or the
rules adopted pursuant to this chapter)).
Sec. 608 RCW 18.11.240 and 1986 c 324 s 22 are each amended to
read as follows:
The following requirements shall apply to bidding at auctions:
(1) An auctioneer conducting an auction and an auction company
where an auction is being held shall not bid on or offer to buy any
goods or real property at the auction unless the auctioneer or the
auction company discloses the name of the person on whose behalf the
bid or offer is being made.
(2) An auctioneer and an auction company shall not use any method
of bidding at an auction that will allow goods or real property to be
purchased in an undisclosed manner on behalf of the auctioneer or
auction company.
(3) At a public auction conducted or supervised by an auctioneer or
auction company, the auctioneer or auction company shall not
fictitiously raise any bid, knowingly permit any person to make a
fictitious bid, or employ or use another person to act as a bidder or
buyer.
(4) All goods or real property offered for sale at an auction shall
be subject to a reserve or a confirmation from the owner or consignor
unless otherwise indicated by the auctioneer or auction company.
Except as provided in this subsection, an auctioneer or auction company
shall not use any method of bidding at an auction that allows the
auctioneer or auction company to avoid selling any property offered for
sale at auction.
(((5) A licensee who violates any provision of this section shall
be subject to an administrative fine in a sum not exceeding five
hundred dollars for each violation.))
Sec. 609 RCW 18.11.260 and 1986 c 324 s 25 are each amended to
read as follows:
((A violation of this chapter is hereby declared to affect the
public interest and to offend public policy. Any violation, act, or
practice by an auctioneer or auction company which is unfair or
deceptive, shall constitute an unfair or deceptive act or practice in
violation of RCW 19.86.020. The remedies and sanctions provided in
this section shall not preclude application of other available remedies
and sanctions.)) The legislature finds that the practices governed by
this chapter are matters vitally affecting the public interest for the
purpose of applying the consumer protection act, chapter 19.86 RCW.
Any violation of this chapter is not reasonable in relation to the
development and preservation of business and is an unfair and deceptive
act or practice and unfair method of competition in the conduct of
trade or commerce in violation of RCW 19.86.020. Remedies provided by
chapter 19.86 RCW are cumulative and not exclusive.
NEW SECTION. Sec. 610 The following acts or parts of acts are
each repealed:
(1) RCW 18.11.060 (Administration of chapter -- Fees) and 1986 c 324
s 3 & 1982 c 205 s 2;
(2) RCW 18.11.075 (Secondhand property, when exempt) and 1993 c 348
s 1;
(3) RCW 18.11.085 (Auctioneer certificate of registration -- Requirements) and 2002 c 86 s 206, 1987 c 336 s 1, & 1986 c 324 s 5;
(4) RCW 18.11.095 (Auction company certificate of registration -- Requirements) and 2002 c 86 s 207, 1987 c 336 s 5, & 1986 c 324 s 6;
(5) RCW 18.11.150 (Display of certificate of registration or
renewal card required -- Penalty) and 1986 c 324 s 11 & 1982 c 205 s 13;
(6) RCW 18.11.160 (License -- Prohibition on issuance -- Disciplinary
action -- License suspension) and 2002 c 86 s 209, 1997 c 58 s 814, 1986
c 324 s 12, & 1982 c 205 s 14;
(7) RCW 18.11.170 (Unauthorized practice -- Penalties) and 1986 c 324
s 13 & 1982 c 205 s 15;
(8) RCW 18.11.180 (Compensation of nonlicensed person -- Penalties)
and 2002 c 86 s 210, 1986 c 324 s 14, & 1982 c 205 s 16;
(9) RCW 18.11.190 (Actions for compensation for services) and 1986
c 324 s 15 & 1982 c 205 s 17;
(10) RCW 18.11.200 (Director -- Authority to adopt rules) and 2002 c
86 s 211, 1986 c 324 s 16, & 1982 c 205 s 18;
(11) RCW 18.11.205 (Director -- Authority to impose administrative
fines) and 1986 c 324 s 17;
(12) RCW 18.11.210 (Newspaper advertisements -- Name and license
number required -- Penalty) and 1986 c 324 s 19 & 1984 c 189 s 1;
(13) RCW 18.11.270 (License, certificate, or registration
suspension -- Nonpayment or default on educational loan or scholarship)
and 1996 c 293 s 4;
(14) RCW 18.11.280 (Uniform regulation of business and professions
act) and 2002 c 86 s 212;
(15) RCW 18.11.901 (Short title) and 1986 c 324 s 1; and
(16) RCW 18.11.903 (Effective date -- 1986 c 324) and 1986 c 324 s
29.
Sec. 701 RCW 18.235.020 and 2009 c 412 s 22 and 2009 c 102 s 5
are each reenacted and amended to read as follows:
(1) This chapter applies only to the director and the boards and
commissions having jurisdiction in relation to the businesses and
professions licensed under the chapters specified in this section.
This chapter does not apply to any business or profession not licensed
under the chapters specified in this section.
(2)(a) The director has authority under this chapter in relation to
the following businesses and professions:
(i) ((Auctioneers under chapter 18.11 RCW;)) Bail bond agents and bail bond recovery agents under chapter
18.185 RCW;
(ii)
(((iii) Camping resorts' operators and salespersons under chapter
19.105 RCW;)) (ii) Cosmetologists, barbers, manicurists, and estheticians
under chapter 18.16 RCW;
(iv) Commercial telephone solicitors under chapter 19.158 RCW;
(v)
(((vi))) (iii) Court reporters under chapter 18.145 RCW;
(((vii))) (iv) Driver training schools and instructors under
chapter 46.82 RCW;
(((viii) Employment agencies under chapter 19.31 RCW;)) (v) For hire vehicle operators under chapter 46.72 RCW;
(ix)
(((x))) (vi) Limousines under chapter 46.72A RCW;
(((xi))) (vii) Notaries public under chapter 42.44 RCW;
(((xii))) (viii) Private investigators under chapter 18.165 RCW;
(((xiii))) (ix) Professional boxing, martial arts, and wrestling
under chapter 67.08 RCW;
(((xiv))) (x) Real estate appraisers under chapter 18.140 RCW;
(((xv))) (xi) Real estate brokers and salespersons under chapters
18.85 and 18.86 RCW;
(((xvi))) (xii) Security guards under chapter 18.170 RCW;
(((xvii) Sellers of travel under chapter 19.138 RCW;)) (xiii) Timeshares and timeshare salespersons under
chapter 64.36 RCW;
(xviii)
(((xix) Whitewater river outfitters under chapter 79A.60 RCW; and)) (xiv) Home inspectors under chapter 18.280 RCW; and
(xx)
(((xxi))) (xv) Body artists, body piercers, and tattoo artists, and
body art, body piercing, and tattooing shops and businesses, under
chapter 18.300 RCW.
(b) The boards and commissions having authority under this chapter
are as follows:
(i) The state board of registration for architects established in
chapter 18.08 RCW;
(ii) The Washington state collection agency board established in
chapter 19.16 RCW;
(iii) The state board of registration for professional engineers
and land surveyors established in chapter 18.43 RCW governing licenses
issued under chapters 18.43 and 18.210 RCW;
(iv) The funeral and cemetery board established in chapter 18.39
RCW governing licenses issued under chapters 18.39 and 68.05 RCW;
(v) The state board of registration for landscape architects
established in chapter 18.96 RCW; and
(vi) The state geologist licensing board established in chapter
18.220 RCW.
(3) In addition to the authority to discipline license holders, the
disciplinary authority may grant or deny licenses based on the
conditions and criteria established in this chapter and the chapters
specified in subsection (2) of this section. This chapter also governs
any investigation, hearing, or proceeding relating to denial of
licensure or issuance of a license conditioned on the applicant's
compliance with an order entered under RCW 18.235.110 by the
disciplinary authority.
Sec. 702 RCW 18.235.020 and 2009 c 412 s 22, 2009 c 370 s 20, and
2009 c 102 s 5 are each reenacted and amended to read as follows:
(1) This chapter applies only to the director and the boards and
commissions having jurisdiction in relation to the businesses and
professions licensed under the chapters specified in this section.
This chapter does not apply to any business or profession not licensed
under the chapters specified in this section.
(2)(a) The director has authority under this chapter in relation to
the following businesses and professions:
(i) ((Auctioneers under chapter 18.11 RCW;)) Bail bond agents and bail bond recovery agents under chapter
18.185 RCW;
(ii)
(((iii) Camping resorts' operators and salespersons under chapter
19.105 RCW;)) (ii) Cosmetologists, barbers, manicurists, and estheticians
under chapter 18.16 RCW;
(iv) Commercial telephone solicitors under chapter 19.158 RCW;
(v)
(((vi))) (iii) Court reporters under chapter 18.145 RCW;
(((vii))) (iv) Driver training schools and instructors under
chapter 46.82 RCW;
(((viii) Employment agencies under chapter 19.31 RCW;)) (v) For hire vehicle operators under chapter 46.72 RCW;
(ix)
(((x))) (vi) Limousines under chapter 46.72A RCW;
(((xi))) (vii) Notaries public under chapter 42.44 RCW;
(((xii))) (viii) Private investigators under chapter 18.165 RCW;
(((xiii))) (ix) Professional boxing, martial arts, and wrestling
under chapter 67.08 RCW;
(((xiv))) (x) Real estate appraisers under chapter 18.140 RCW;
(((xv))) (xi) Real estate brokers and salespersons under chapters
18.85 and 18.86 RCW;
(((xvi))) (xii) Security guards under chapter 18.170 RCW;
(((xvii) Sellers of travel under chapter 19.138 RCW;)) (xiii) Timeshares and timeshare salespersons under
chapter 64.36 RCW;
(xviii)
(((xix) Whitewater river outfitters under chapter 79A.60 RCW; and)) (xiv) Home inspectors under chapter 18.280 RCW; and
(xx)
(((xxi))) (xv) Body artists, body piercers, and tattoo artists, and
body art, body piercing, and tattooing shops and businesses, under
chapter 18.300 RCW.
(b) The boards and commissions having authority under this chapter
are as follows:
(i) The state board of registration for architects established in
chapter 18.08 RCW;
(ii) The Washington state collection agency board established in
chapter 19.16 RCW;
(iii) The state board of registration for professional engineers
and land surveyors established in chapter 18.43 RCW governing licenses
issued under chapters 18.43 and 18.210 RCW;
(iv) The funeral and cemetery board established in chapter 18.39
RCW governing licenses issued under chapters 18.39 and 68.05 RCW;
(v) The state board of licensure for landscape architects
established in chapter 18.96 RCW; and
(vi) The state geologist licensing board established in chapter
18.220 RCW.
(3) In addition to the authority to discipline license holders, the
disciplinary authority may grant or deny licenses based on the
conditions and criteria established in this chapter and the chapters
specified in subsection (2) of this section. This chapter also governs
any investigation, hearing, or proceeding relating to denial of
licensure or issuance of a license conditioned on the applicant's
compliance with an order entered under RCW 18.235.110 by the
disciplinary authority.
Sec. 703 RCW 43.24.150 and 2009 c 429 s 4 and 2009 c 370 s 19 are
each reenacted and amended to read as follows:
(1) The business and professions account is created in the state
treasury. All receipts from business or professional licenses,
registrations, certifications, renewals, examinations, or civil
penalties assessed and collected by the department from the following
chapters must be deposited into the account:
(a) ((Chapter 18.11 RCW, auctioneers;)) Chapter 18.16 RCW, cosmetologists, barbers, and manicurists;
(b)
(((c))) (b) Chapter 18.145 RCW, court reporters;
(((d))) (c) Chapter 18.165 RCW, private investigators;
(((e))) (d) Chapter 18.170 RCW, security guards;
(((f))) (e) Chapter 18.185 RCW, bail bond agents;
(((g))) (f) Chapter 18.280 RCW, home inspectors;
(((h))) (g) Chapter 19.16 RCW, collection agencies;
(((i) Chapter 19.31 RCW, employment agencies;)) (h) Chapter 42.44 RCW, notaries public;
(j) Chapter 19.105 RCW, camping resorts;
(k) Chapter 19.138 RCW, sellers of travel;
(l)
(((m))) (i) Chapter 64.36 RCW, timeshares; and
(((n))) (j) Chapter 67.08 RCW, boxing, martial arts, and wrestling.
Moneys in the account may be spent only after appropriation.
Expenditures from the account may be used only for expenses incurred in
carrying out these business and professions licensing activities of the
department. Any residue in the account shall be accumulated and shall
not revert to the general fund at the end of the biennium.
(2) The director shall biennially prepare a budget request based on
the anticipated costs of administering the business and professions
licensing activities listed in subsection (1) of this section, which
shall include the estimated income from these business and professions
fees.
Sec. 704 RCW 43.24.150 and 2009 c 429 s 4, 2009 c 412 s 21, and
2009 c 370 s 19 are each reenacted and amended to read as follows:
(1) The business and professions account is created in the state
treasury. All receipts from business or professional licenses,
registrations, certifications, renewals, examinations, or civil
penalties assessed and collected by the department from the following
chapters must be deposited into the account:
(a) ((Chapter 18.11 RCW, auctioneers;)) Chapter 18.16 RCW, cosmetologists, barbers, and manicurists;
(b)
(((c))) (b) Chapter 18.145 RCW, court reporters;
(((d))) (c) Chapter 18.165 RCW, private investigators;
(((e))) (d) Chapter 18.170 RCW, security guards;
(((f))) (e) Chapter 18.185 RCW, bail bond agents;
(((g))) (f) Chapter 18.280 RCW, home inspectors;
(((h))) (g) Chapter 19.16 RCW, collection agencies;
(((i) Chapter 19.31 RCW, employment agencies;)) (h) Chapter 42.44 RCW, notaries public;
(j) Chapter 19.105 RCW, camping resorts;
(k) Chapter 19.138 RCW, sellers of travel;
(l)
(((m))) (i) Chapter 64.36 RCW, timeshares;
(((n))) (j) Chapter 67.08 RCW, boxing, martial arts, and wrestling;
and
(((o))) (k) Chapter 18.300 RCW, body art, body piercing, and
tattooing.
Moneys in the account may be spent only after appropriation.
Expenditures from the account may be used only for expenses incurred in
carrying out these business and professions licensing activities of the
department. Any residue in the account shall be accumulated and shall
not revert to the general fund at the end of the biennium.
(2) The director shall biennially prepare a budget request based on
the anticipated costs of administering the business and professions
licensing activities listed in subsection (1) of this section, which
shall include the estimated income from these business and professions
fees.
Sec. 705 RCW 7.60.025 and 2006 c 52 s 1 are each amended to read
as follows:
(1) A receiver may be appointed by the superior court of this state
in the following instances, but except in any case in which a
receiver's appointment is expressly required by statute, or any case in
which a receiver's appointment is sought by a state agent whose
authority to seek the appointment of a receiver is expressly conferred
by statute, or any case in which a receiver's appointment with respect
to real property is sought under (b)(ii) of this subsection, a receiver
shall be appointed only if the court additionally determines that the
appointment of a receiver is reasonably necessary and that other
available remedies either are not available or are inadequate:
(a) On application of any party, when the party is determined to
have a probable right to or interest in property that is a subject of
the action and in the possession of an adverse party, or when the
property or its revenue-producing potential is in danger of being lost
or materially injured or impaired. A receiver may be appointed under
this subsection (1)(a) whether or not the application for appointment
of a receiver is combined with, or is ancillary to, an action seeking
a money judgment or other relief;
(b) Provisionally, during the pendency of any action to foreclose
upon any lien against or for forfeiture of any interest in real or
personal property, or after notice of a trustee's sale has been given
under RCW 61.24.040, or after notice of forfeiture has been given under
RCW 61.30.040, on application of any person, when the interest in the
property that is the subject of foreclosure or forfeiture of the person
seeking the receiver's appointment is determined to be probable and
either:
(i) The property or its revenue-producing potential is in danger of
being lost or materially injured or impaired; or
(ii) The appointment of a receiver with respect to the real or
personal property that is the subject of the action, the notice of
trustee's sale or notice of forfeiture is provided for by agreement or
is reasonably necessary to effectuate or enforce an assignment of rents
or other revenues from the property;
(c) After judgment, in order to give effect to the judgment;
(d) To dispose of property according to provisions of a judgment
dealing with its disposition;
(e) To the extent that property is not exempt from execution, at
the instance of a judgment creditor either before or after the issuance
of any execution, to preserve or protect it, or prevent its transfer;
(f) If and to the extent that property is subject to execution to
satisfy a judgment, to preserve the property during the pendency of an
appeal, or when an execution has been returned unsatisfied, or when an
order requiring a judgment debtor to appear for proceedings
supplemental to judgment has been issued and the judgment debtor fails
to submit to examination as ordered;
(g) Upon an attachment of real or personal property when the
property attached is of a perishable nature or is otherwise in danger
of waste, impairment, or destruction, or where the abandoned property's
owner has absconded with, secreted, or abandoned the property, and it
is necessary to collect, conserve, manage, control, or protect it, or
to dispose of it promptly, or when the court determines that the nature
of the property or the exigency of the case otherwise provides cause
for the appointment of a receiver;
(h) In an action by a transferor of real or personal property to
avoid or rescind the transfer on the basis of fraud, or in an action to
subject property or a fund to the payment of a debt;
(i) In an action against any person who is not an individual if the
object of the action is the dissolution of that person, or if that
person has been dissolved, or if that person is insolvent or is not
generally paying the person's debts as those debts become due unless
they are the subject of bona fide dispute, or if that person is in
imminent danger of insolvency;
(j) In accordance with RCW 7.08.030 (4) and (6), in cases in which
a general assignment for the benefit of creditors has been made;
(k) In quo warranto proceedings under chapter 7.56 RCW;
(l) As provided under RCW 11.64.022;
(m) In an action ((by the department of licensing)) under RCW
18.35.220(3) with respect to persons engaged in the business of
dispensing of hearing aids, RCW ((18.85.350)) 18.85.430 in the case of
persons engaged in the business of a real estate broker, associate real
estate broker, or real estate salesperson, or RCW 19.105.470 with
respect to persons engaged in the business of camping resorts;
(n) In an action under RCW 18.44.470 or 18.44.490 in the case of
persons engaged in the business of escrow agents;
(o) Upon a petition with respect to a nursing home in accordance
with and subject to receivership provisions under chapter 18.51 RCW;
(p) Under RCW 19.40.071(3), in connection with a proceeding for
relief with respect to a transfer fraudulent as to a creditor or
creditors;
(q) Under RCW 19.100.210(1), in an action by the attorney general
or director of financial institutions to restrain any actual or
threatened violation of the franchise investment protection act;
(r) In an action by the attorney general or by a prosecuting
attorney under RCW 19.110.160 with respect to a seller of business
opportunities;
(s) In an action by the director of financial institutions under
RCW 21.20.390 in cases involving actual or threatened violations of the
securities act of Washington or under RCW 21.30.120 in cases involving
actual or threatened violations of chapter 21.30 RCW with respect to
certain businesses and transactions involving commodities;
(t) In an action for or relating to dissolution of a business
corporation under RCW 23B.14.065, 23B.14.300, 23B.14.310, or
23B.14.320, for dissolution of a nonprofit corporation under RCW
24.03.270, for dissolution of a mutual corporation under RCW 24.06.305,
or in any other action for the dissolution or winding up of any other
entity provided for by Title 23, 23B, 24, or 25 RCW;
(u) In any action in which the dissolution of any public or private
entity is sought, in any action involving any dispute with respect to
the ownership or governance of such an entity, or upon the application
of a person having an interest in such an entity when the appointment
is reasonably necessary to protect the property of the entity or its
business or other interests;
(v) Under RCW 25.05.215, in aid of a charging order with respect to
a partner's interest in a partnership;
(w) Under and subject to RCW 30.44.100, 30.44.270, and 30.56.030,
in the case of a bank or trust company or, under and subject to RCW
32.24.070 through 32.24.090, in the case of a mutual savings bank;
(x) Under and subject to RCW 31.12.637 and 31.12.671 through
31.12.724, in the case of credit unions;
(y) Upon the application of the director of financial institutions
under RCW 31.35.090 in actions to enforce chapter 31.35 RCW applicable
to agricultural lenders, under RCW 31.40.120 in actions to enforce
chapter 31.40 RCW applicable to entities engaged in federally
guaranteed small business loans, under RCW 31.45.160 in actions to
enforce chapter 31.45 RCW applicable to persons licensed as check
cashers or check sellers, or under RCW 19.230.230 in actions to enforce
chapter 19.230 RCW applicable to persons licensed under the uniform
money services act;
(z) Under RCW 35.82.090 or 35.82.180, with respect to a housing
project;
(aa) Under RCW 39.84.160 or 43.180.360, in proceedings to enforce
rights under any revenue bonds issued for the purpose of financing
industrial development facilities or bonds of the Washington state
housing finance commission, or any financing document securing any such
bonds;
(bb) Under and subject to RCW 43.70.195, in an action by the
secretary of health or by a local health officer with respect to a
public water system;
(cc) As contemplated by RCW 61.24.030, with respect to real
property that is the subject of nonjudicial foreclosure proceedings
under chapter 61.24 RCW;
(dd) As contemplated by RCW 61.30.030(3), with respect to real
property that is the subject of judicial or nonjudicial forfeiture
proceedings under chapter 61.30 RCW;
(ee) Under RCW 64.32.200(2), in an action to foreclose upon a lien
for common expenses against a dwelling unit subject to the horizontal
property regimes act, chapter 64.32 RCW;
(ff) Under RCW 64.34.364(10), in an action by a unit owners'
association to foreclose a lien for nonpayment of delinquent
assessments against condominium units;
(gg) Upon application of the attorney general under RCW
64.36.220(3), in aid of any writ or order restraining or enjoining
violations of chapter 64.36 RCW applicable to timeshares;
(hh) Under RCW 70.95A.050(3), in aid of the enforcement of payment
or performance of municipal bonds issued with respect to facilities
used to abate, control, or prevent pollution;
(ii) Upon the application of the department of social and health
services under RCW 74.42.580, in cases involving nursing homes;
(jj) Upon the application of the utilities and transportation
commission under RCW 80.28.040, with respect to a water company that
has failed to comply with an order of such commission within the time
deadline specified therein;
(kk) Under RCW 87.56.065, in connection with the dissolution of an
irrigation district;
(ll) Upon application of the attorney general or the department of
licensing, in any proceeding that either of them are authorized by
statute to bring to enforce Title 18 or 19 RCW; the securities act of
Washington, chapter 21.20 RCW; the Washington commodities act, chapter
21.30 RCW; the land development act, chapter 58.19 RCW; or under
chapter 64.36 RCW relating to the regulation of timeshares;
(mm) Upon application of the director of financial institutions in
any proceeding that the director of financial institutions is
authorized to bring to enforce chapters 31.35, 31.40, and 31.45 RCW; or
(nn) In such other cases as may be provided for by law, or when, in
the discretion of the court, it may be necessary to secure ample
justice to the parties.
(2) The superior courts of this state shall appoint as receiver of
property located in this state a person who has been appointed by a
federal or state court located elsewhere as receiver with respect to
the property specifically or with respect to the owner's property
generally, upon the application of the person or of any party to that
foreign proceeding, and following the appointment shall give effect to
orders, judgments, and decrees of the foreign court affecting the
property in this state held by the receiver, unless the court
determines that to do so would be manifestly unjust or inequitable.
The venue of such a proceeding may be any county in which the person
resides or maintains any office, or any county in which any property
over which the receiver is to be appointed is located at the time the
proceeding is commenced.
(3) At least seven days' notice of any application for the
appointment of a receiver shall be given to the owner of property to be
subject thereto and to all other parties in the action, and to other
parties in interest as the court may require. If any execution by a
judgment creditor under Title 6 RCW or any application by a judgment
creditor for the appointment of a receiver, with respect to property
over which the receiver's appointment is sought, is pending in any
other action at the time the application is made, then notice of the
application for the receiver's appointment also shall be given to the
judgment creditor in the other action. The court may shorten or expand
the period for notice of an application for the appointment of a
receiver upon good cause shown.
(4) The order appointing a receiver in all cases shall reasonably
describe the property over which the receiver is to take charge, by
category, individual items, or both if the receiver is to take charge
of less than all of the owner's property. If the order appointing a
receiver does not expressly limit the receiver's authority to
designated property or categories of property of the owner, the
receiver is a general receiver with the authority to take charge over
all of the owner's property, wherever located.
(5) The court may condition the appointment of a receiver upon the
giving of security by the person seeking the receiver's appointment, in
such amount as the court may specify, for the payment of costs and
damages incurred or suffered by any person should it later be
determined that the appointment of the receiver was wrongfully
obtained.
Sec. 706 RCW 36.71.070 and 2009 c 549 s 4124 are each amended to
read as follows:
(1) If any person sells any goods, wares, or merchandise, at
auction or public outcry, or barters goods, wares or merchandise from
traveling boats, wagons, carts or vehicles of any kind, or from any
pack, basket or other package carried on foot without first having
obtained a license therefor from the board of county commissioners of
the county in which such goods are sold or bartered, he or she shall be
guilty of a misdemeanor, and upon conviction shall be fined not less
than five nor more than fifty dollars, and shall stand committed to the
county jail of the county in which the conviction is had until such
fine and cost of prosecution are paid, or discharged by due course of
law: PROVIDED, That this section shall not be construed as to apply to
any seagoing craft or to administrators or executors selling property
of deceased persons, or to private individuals selling their household
property, or furniture, or farming tools, implements, or livestock, or
any produce grown or raised by them, either at public auction or
private sale.
(2) Notwithstanding subsection (1) of this section, counties shall
not license auctioneers that ((are licensed)) maintain a surety bond as
required by the state under chapter 18.11 RCW.
Sec. 707 RCW 46.70.011 and 2006 c 364 s 1 are each amended to
read as follows:
As used in this chapter:
(1) "Vehicle" means and includes every device capable of being
moved upon a public highway and in, upon, or by which any persons or
property is or may be transported or drawn upon a public highway,
excepting devices moved by human or animal power or used exclusively
upon stationary rails or tracks.
(2) "Motor vehicle" means every vehicle which is self-propelled and
every vehicle which is propelled by electric power obtained from
overhead trolley wires, but not operated upon rails, and which is
required to be registered and titled under this title ((46 RCW, Motor
Vehicles)).
(3) "Recreational vehicle" means a travel trailer, motor home,
truck camper, or camping trailer that is primarily designed and used as
temporary living quarters, is either self-propelled or mounted on or
drawn by another vehicle, is transient, is not occupied as a primary
residence, and is not immobilized or permanently affixed to a mobile
home lot.
(4) "Vehicle dealer" means any person, firm, association,
corporation, or trust, not excluded by subsection (5) of this section,
engaged in the business of buying, selling, listing, exchanging,
offering, brokering, leasing with an option to purchase, auctioning,
soliciting, or advertising the sale of new or used vehicles, or
arranging or offering or attempting to solicit or negotiate on behalf
of others, a sale, purchase, or exchange of an interest in new or used
motor vehicles, irrespective of whether the motor vehicles are owned by
that person. Vehicle dealers shall be classified as follows:
(a) A "motor vehicle dealer" is a vehicle dealer that deals in new
or used motor vehicles, or both;
(b) A "mobile home and travel trailer dealer" is a vehicle dealer
that deals in mobile homes, park trailers, or travel trailers, or more
than one type of these vehicles;
(c) A "miscellaneous vehicle dealer" is a vehicle dealer that deals
in motorcycles or vehicles other than motor vehicles or mobile homes
and travel trailers or any combination of such vehicles;
(d) A "recreational vehicle dealer" is a vehicle dealer that deals
in travel trailers, motor homes, truck campers, or camping trailers
that are primarily designed and used as temporary living quarters, are
either self-propelled or mounted on or drawn by another vehicle, are
transient, are not occupied as a primary residence, and are not
immobilized or permanently affixed to a mobile home lot.
(5) The term "vehicle dealer" does not include, nor do the
licensing requirements of RCW 46.70.021 apply to, the following
persons, firms, associations, or corporations:
(a) Receivers, trustees, administrators, executors, guardians, or
other persons appointed by, or acting under a judgment or order of, any
court; or
(b) Public officers while performing their official duties; or
(c) Employees of vehicle dealers who are engaged in the specific
performance of their duties as such employees; or
(d) Any person engaged in an isolated sale of a vehicle in which
that person is the registered or legal owner, or both, thereof; or
(e) Any person, firm, association, corporation, or trust, engaged
in the selling of equipment other than vehicles, subject to
registration, used for agricultural or industrial purposes; or
(f) A real estate broker licensed under chapter 18.85 RCW, or an
affiliated licensee, who, on behalf of another negotiates the purchase,
sale, lease, or exchange of a manufactured or mobile home in
conjunction with the purchase, sale, exchange, rental, or lease of the
land upon which the manufactured or mobile home is, or will be,
located; or
(g) Owners who are also operators of the special highway
construction equipment or of the highway construction equipment for
which a vehicle license and display vehicle license number plate is
required as defined in RCW 46.16.010; or
(h) Any bank, trust company, savings bank, mutual savings bank,
savings and loan association, credit union, and any parent, subsidiary,
or affiliate thereof, authorized to do business in this state under
state or federal law with respect to the sale or other disposition of
a motor vehicle owned and used in their business; or with respect to
the acquisition and sale or other disposition of a motor vehicle in
which the entity has acquired an interest as a lessor, lessee, or
secured party; or
(i) Any person who is regularly engaged in the business of
acquiring leases or installment contracts by assignment, with respect
to the acquisition and sale or other disposition of a motor vehicle in
which the person has acquired an interest as a result of the business.
(6) "Vehicle salesperson" means any person who for any form of
compensation sells, auctions, leases with an option to purchase, or
offers to sell or to so lease vehicles on behalf of a vehicle dealer.
(7) "Department" means the department of licensing, which shall
administer and enforce the provisions of this chapter.
(8) "Director" means the director of licensing.
(9) "Manufacturer" means any person, firm, association,
corporation, or trust, resident or nonresident, who manufactures or
assembles new and unused vehicles or remanufactures vehicles in whole
or in part and further includes the terms:
(a) "Distributor," which means any person, firm, association,
corporation, or trust, resident or nonresident, who in whole or in part
offers for sale, sells, or distributes any new and unused vehicle to
vehicle dealers or who maintains factory representatives.
(b) "Factory branch," which means a branch office maintained by a
manufacturer for the purpose of selling or offering for sale, vehicles
to a distributor, wholesaler, or vehicle dealer, or for directing or
supervising in whole or in part factory or distributor representatives,
and further includes any sales promotion organization, whether a
person, firm, or corporation, which is engaged in promoting the sale of
new and unused vehicles in this state of a particular brand or make to
vehicle dealers.
(c) "Factory representative," which means a representative employed
by a manufacturer, distributor, or factory branch for the purpose of
making or promoting for the sale of their vehicles or for supervising
or contracting with their dealers or prospective dealers.
(10) "Established place of business" means a location meeting the
requirements of RCW 46.70.023(1) at which a vehicle dealer conducts
business in this state.
(11) "Principal place of business" means that dealer firm's
business location in the state, which place the dealer designates as
their principal place of business.
(12) "Subagency" means any place of business of a vehicle dealer
within the state, which place is physically and geographically
separated from the principal place of business of the firm or any place
of business of a vehicle dealer within the state, at which place the
firm does business using a name other than the principal name of the
firm, or both.
(13) "Temporary subagency" means a location other than the
principal place of business or subagency within the state where a
licensed vehicle dealer may secure a license to conduct the business
and is licensed for a period of time not to exceed ten days for a
specific purpose such as auto shows, shopping center promotions, tent
sales, exhibitions, or similar merchandising ventures. No more than
six temporary subagency licenses may be issued to a licensee in any
twelve-month period.
(14) "Wholesale vehicle dealer" means a vehicle dealer who buys and
sells other than at retail.
(15) "Retail vehicle dealer" means a vehicle dealer who may buy and
sell at both wholesale and retail.
(16) "Listing dealer" means a used mobile home dealer who makes
contracts with sellers who will compensate the dealer for obtaining a
willing purchaser for the seller's mobile home.
(17) "Auction" means a transaction conducted by means of exchanges
between an auctioneer and the members of the audience, constituting a
series of oral invitations for offers for the purchase of vehicles made
by the auctioneer, offers to purchase by members of the audience, and
the acceptance of the highest or most favorable offer to purchase.
(18) "Auction company" means a sole proprietorship, partnership,
corporation, or other legal or commercial entity ((licensed)) regulated
under chapter 18.11 RCW that only sells or offers to sell vehicles at
auction or only arranges or sponsors auctions.
(19) "Buyer's agent" means any person, firm, partnership,
association, limited liability company, limited liability partnership,
or corporation retained or employed by a consumer to arrange for or to
negotiate, or both, the purchase or lease of a new motor vehicle on
behalf of the consumer, and who is paid a fee or receives other
compensation from the consumer for its services.
(20) "New motor vehicle" means any motor vehicle that is self-propelled and is required to be registered and titled under Title 46
RCW, has not been previously titled to a retail purchaser or lessee,
and is not a "used vehicle" as defined under RCW 46.04.660.
Sec. 708 RCW 46.70.051 and 2001 c 272 s 4 are each amended to
read as follows:
(1) After the application has been filed, the fee paid, and bond
posted, if required, the department shall, if no denial order is in
effect and no proceeding is pending under RCW 46.70.101, issue the
appropriate license, which license, in the case of a vehicle dealer,
shall designate the classification of the dealer. Nothing prohibits a
vehicle dealer from obtaining licenses for more than one
classification, and nothing prevents any vehicle dealer from dealing in
other classes of vehicles on an isolated basis.
(2) An auction company ((licensed)) regulated under chapter 18.11
RCW may sell at auction all classifications of vehicles under a motor
vehicle dealer's license issued under this chapter including motor
vehicles, miscellaneous type vehicles, and mobile homes and travel
trailers.
(3) At the time the department issues a vehicle dealer license, the
department shall provide to the dealer a current, up-to-date vehicle
dealer manual that may be provided electronically setting forth the
various statutes and rules applicable to vehicle dealers. In addition,
at the time any such license is renewed under RCW 46.70.083, the
department shall provide the dealer with any updates or current
revisions to the vehicle dealer manual. These updates or current
revisions may be provided electronically.
(4) The department may contract with responsible private parties to
provide them elements of the vehicle database on a regular basis. The
private parties may only disseminate this information to licensed
vehicle dealers.
(a) Subject to the disclosure agreement provisions of RCW 46.12.380
and the requirements of Executive Order 97-01, the department may
provide to the contracted private parties the following information:
(i) All vehicle and title data necessary to accurately disclose
known title defects, brands, or flags and odometer discrepancies;
(ii) All registered and legal owner information necessary to
determine true ownership of the vehicle and the existence of any
recorded liens, including but not limited to liens of the department of
social and health services or its successor; and
(iii) Any data in the department's possession necessary to
calculate the motor vehicle excise tax, license, and registration fees
including information necessary to determine the applicability of
regional transit authority excise and use tax surcharges.
(b) The department may provide this information in any form the
contracted private party and the department agree upon, but if the data
is to be transmitted over the Internet or similar public network from
the department to the contracted private party, it must be encrypted.
(c) The department shall give these contracted private parties
advance written notice of any change in the information referred to in
(a)(i), (ii), or (iii) of this subsection, including information
pertaining to the calculation of motor vehicle excise taxes.
(d) The department shall revoke a contract made under this
subsection (4) with a private party who disseminates information from
the vehicle database to anyone other than a licensed vehicle dealer.
A private party who obtains information from the vehicle database under
a contract with the department and disseminates any of that information
to anyone other than a licensed vehicle dealer is guilty of a gross
misdemeanor punishable under chapter 9A.20 RCW.
(e) Nothing in this subsection (4) authorizes a vehicle dealer or
any other organization or entity not otherwise appointed as a vehicle
licensing subagent under RCW 46.01.140 to perform any of the functions
of a vehicle licensing subagent so appointed.
Sec. 709 RCW 50.04.232 and 1995 c 242 s 1 are each amended to
read as follows:
The term "employment" shall not include service performed by an
outside agent who sells or arranges for travel services that are
provided to a travel agent as defined ((and registered)) under RCW
19.138.021, to the extent the outside agent is compensated by
commission.
NEW SECTION. Sec. 710 RCW 35.21.690 (Authority to regulate
auctioneers -- Limitations) and 1984 c 189 s 2 are each repealed.
NEW SECTION. Sec. 711 Sections 701 and 703 of this act expire
July 1, 2010.
NEW SECTION. Sec. 712 Sections 702, 704, and 705 of this act
take effect July 1, 2010."
ESSB 6037 -
By Senator Fairley
On page 1, line 2 of the title, after "professions;" strike the remainder of the title and insert "amending RCW 19.31.020, 19.31.030, 19.31.070, 19.31.090, 19.31.160, 19.31.180, 19.31.190, 19.31.250, 79A.60.400, 79A.60.420, 79A.60.430, 79A.60.440, 79A.60.450, 19.138.010, 19.138.021, 19.138.140, 19.138.160, 19.138.270, 19.158.020, 19.158.040, 19.158.070, 19.158.090, 19.158.110, 19.158.120, 19.105.300, 19.105.336, 19.105.340, 19.105.370, 19.105.390, 19.105.400, 19.105.470, 19.105.480, 19.105.490, 19.105.500, 18.11.050, 18.11.070, 18.11.100, 18.11.121, 18.11.130, 18.11.140, 18.11.220, 18.11.240, 18.11.260, 7.60.025, 36.71.070, 46.70.011, 46.70.051, and 50.04.232; reenacting and amending RCW 18.235.020, 18.235.020, 43.24.150, and 43.24.150; adding a new section to chapter 19.31 RCW; repealing RCW 19.31.050, 19.31.080, 19.31.100, 19.31.110, 19.31.120, 19.31.130, 19.31.140, 19.31.210, 19.31.245, 19.31.270, 19.31.910, 79A.60.410, 79A.60.480, 79A.60.485, 79A.60.490, 79A.60.498, 19.138.100, 19.138.110, 19.138.120, 19.138.130, 19.138.170, 19.138.1701, 19.138.180, 19.138.200, 19.138.240, 19.138.250, 19.138.260, 19.138.310, 19.138.330, 19.138.904, 19.158.050, 19.158.080, 19.158.150, 19.158.170, 19.158.901, 19.105.310, 19.105.320, 19.105.325, 19.105.330, 19.105.333, 19.105.345, 19.105.350, 19.105.360, 19.105.365, 19.105.380, 19.105.411, 19.105.420, 19.105.430, 19.105.440, 19.105.450, 19.105.520, 19.105.530, 19.105.540, 19.105.550, 19.105.560, 19.105.930, 18.11.060, 18.11.075, 18.11.085, 18.11.095, 18.11.150, 18.11.160, 18.11.170, 18.11.180, 18.11.190, 18.11.200, 18.11.205, 18.11.210, 18.11.270, 18.11.280, 18.11.901, 18.11.903, and 35.21.690; providing an effective date; and providing an expiration date."