(1) The department of financial institutions shall establish the covenant homeownership program oversight committee consisting of the following members appointed by the governor, except for the legislative members who must be appointed by the president of the senate or the speaker of the house of representatives as described in this section:
(a) One person who meets the eligibility criteria for the special purpose credit program described in RCW
43.181.040(4) and is from east of the crest of the Cascade mountains;
(b) One person who meets the eligibility criteria for the special purpose credit program described in RCW
43.181.040(4) and is from west of the crest of the Cascade mountains;
(c) One representative of an organization that operates a special purpose credit program, counseling service, or debt relief program that serves persons who were commonly subject to unlawful exclusions contained in racially restrictive real estate covenants as defined in RCW
43.181.010;
(d) One representative of a community-based organization that specializes in the development of permanently affordable housing that serves persons who were commonly subject to unlawful exclusions contained in racially restrictive real estate covenants;
(e) One representative of the real estate sales profession;
(f) One representative of the home mortgage lending profession who has a minimum of five years' lending or underwriting experience;
(g) One representative of the nonprofit affordable housing development industry;
(h) Two senators, one from each of the two largest caucuses, appointed by the president of the senate; and
(i) Two members of the house of representatives, one from each of the two largest caucuses, appointed by the speaker of the house of representatives.
(2)(a) Nonlegislative members shall each serve a three-year term, subject to renewal for no more than one additional three-year term. The oversight committee shall develop rules that provide for the staggering of terms so that, after the first two years of the committee's existence, the terms of one-third of the nonlegislative members expire each year.
(b) Legislative members shall each serve a two-year term, subject to renewal for no more than one additional two-year term.
(c) On the expiration of the term of each member, the governor, president of the senate, or the speaker of the house of representatives, as authorized under subsection (1) of this section, shall appoint a successor to serve for a term of two years if the successor is a legislative member, or three years if the successor is a nonlegislative member.
(d) The governor may remove a nonlegislative member of the oversight committee for cause. The president of the senate may remove a senator serving as a legislative member of the oversight committee for cause, and the speaker of the house of representatives may remove a member of the house of representatives serving as a legislative member of the oversight committee for cause.
(e) Vacancies on the oversight committee for any reason must be filled by appointment as authorized under subsection (1) of this section for the duration of the unexpired term.
(3) The oversight committee:
(a) Shall oversee and review the commission's activities and performance related to the program, including the commission's creation and administration of one or more special purpose credit programs authorized in RCW
43.181.040;
(b) Shall work with the department of financial institutions to convene meetings, create a charter and operating procedures, and to coordinate the oversight committee's ongoing activities;
(c) Shall convene the initial meeting of the oversight committee and select a chair by October 1, 2023;
(d) Shall work with the department of financial institutions to convene a meeting at least once a quarter and may hold additional meetings at the call of the chair or by a majority vote of the members of the committee;
(e) May conduct its meetings by conference telephone call, videoconference, or using similar technology that enables all persons participating in the meeting to hear each other at the same time; and
(f) May, from time to time, make recommendations to the appropriate committees of the legislature regarding the program.
(4)(a) The oversight committee is a class one group under RCW
43.03.220. Except as provided in (b) of this subsection, members of the committee receive no compensation for their services as members of the committee but may be reimbursed for travel and other expenses in accordance with rules adopted by the office of financial management.
(b) As authorized by RCW
43.03.220, the department of financial institutions may provide a stipend to individuals who are low income or have lived experience to support their participation on the oversight committee.
(5)(a) The department of commerce and the commission shall work together to supply the oversight committee and the department of financial institutions with any information requested by the oversight committee or the department of financial institutions that the oversight committee or the department of financial institutions deems necessary for the committee to carry out its duties under this section. This information may include, but is not limited to, books, accounts, records, policies, procedures, files, and information from relevant third parties.
(b) Any information shared among the oversight committee, the department of financial institutions, the department of commerce, and the commission that is confidential and exempt from public disclosure under RCW
42.56.270 shall remain confidential when received by the receiving party.
(6) The department of commerce and the commission must report to the oversight committee on a quarterly basis. The report must address the results of targeted education, homeownership counseling, and outreach efforts by the department of commerce as authorized under this chapter, and the results of any special purpose credit program formed by the commission under this chapter, and down payment and closing cost assistance to program participants.
(7)(a) The department of financial institutions shall:
(i) Provide subject matter expertise, administrative assistance, and staff support to the oversight committee; and
(ii) Work in coordination with the department of commerce and the commission to conduct outreach and financial education to the communities served by this chapter, in accordance with RCW
43.320.150.
(b) The department of financial institutions may:
(i) Have one or more staff present at oversight committee meetings;
(ii) Employ staff necessary to carry out the purposes of this section; and
(iii) Hire outside experts and other professionals it deems necessary to carry out its duties under this section.
(8) The department of commerce shall reimburse the department of financial institutions for costs related to the oversight committee from the moneys that the legislature appropriates to the department of commerce for this purpose from the covenant homeownership account under RCW
43.181.020(1).