FINAL BILL REPORT

HB 1656

PARTIAL VETO

                                  C 428 L 89

BYRepresentative Crane

Changing land development regulations.

House Committe on Judiciary

Senate Committee on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

The Governor vetoed certain sections of the Washington Condominium Act (SB 5208) and signed the remaining sections into law.  The Condominium Act is a comprehensive and extensive new law governing the development, management and ownership of condominiums.  The Governor vetoed certain sections of article 4, which governs consumer protection issues.

The Governor vetoed the following sections:

Section 4-105.  The Condominium Act requires the declarant to file an extensive public offering statement.  The act as passed the Legislature provided several exceptions to the requirement of filing a public offering statement.  The declarant was relieved from complying with the act's provisions if the declarant had filed a public disclosure document in compliance with the Securities Act, the Land Development Act, the Timeshare Act, or state law on camping resorts.

Section 4-111.  The Condominium Act also contained a provision governing express warranties.  One internal reference in that provision contained a typographical error.

Section 4-114.  The act provided for a four year statute of limitations for civil actions claiming violations of the Condominium Act.

Section 4-118.  The act provides that a contract for sale may be negotiated but that no interest may be conveyed until the declaration is recorded.  The section did not refer to another provision in the act that a declaration may not be recorded until all the units are substantially completed.

Section 4-121.  The act created a statutory committee to continue to review the act and recommend changes to the Legislature.

SUMMARY:

The original provisions of the bill are stricken and certain provisions in article 4 of the Condominium Act (SB 5208) that the Governor vetoed are inserted with some modifications.  The provisions govern consumer protection issues.

Section 1 is vetoed section 4-105.  It is amended to reduce the available exceptions.  A declarant must file a public offering statement in compliance with the act unless the declarant has filed a disclosure document under the Securities Act.

Section 2 is vetoed section 4-111 with a technical correction of a typographical error that caused some confusion regarding the express warranty provisions.

Section 3 is vetoed section 4-114 which establishes a four year statute of limitations and is inserted without change.

Section 4 is vetoed section 4-118 which states that a contract can be negotiated but no interest conveyed until the declaration is recorded and is inserted without change.

Section 5 is vetoed section 4-121 which creates a statutory review committee.  The membership is modified to include designees of the Governor.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    45     0 (Senate amended)

      House 92   0 (House concurred)

EFFECTIVE:July 23, 1989

            July 1, 1990 (Sections 1-4)

Partial Veto Summary:  The provision providing an exception to the public offering statement requirements is vetoed.  The four year statute of limitations is vetoed.  The provision restricting conveyance of an interest until the declaration is recorded is vetoed.  (See VETO MESSAGE)