AN ACT Relating to escrows on the sale of manufactured homes; creating new sections; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that housing is a fundamental need of Washington residents and manufactured homes are the housing choice for a significant number of state residents, often being their largest asset. The legislature also finds that problems with the sale of a manufactured home may cause extreme hardship on purchasers of a manufactured home, sometimes resulting in loss of the home and financial ruin. These problems may be the result of, among other things, a lack of information or knowledge on the part of the purchaser, mistakes by the seller, and, occasionally, fraud or improper business practices on the part of the seller. These issues are complicated by the fact that manufactured homes are titled as vehicles unless they are converted to real property under chapter 65.20 RCW. The legislature intends to explore alternatives to better protect purchasers of manufactured homes, particularly ways to improve the closing of manufactured home sales.

NEW SECTION. Sec. 2. (1) The joint task force on manufactured home sales shall consist of the following members or their designees:

(a) The following four members of the house of representatives appointed by the co-speakers: (i) Two members of the committee on financial institutions and insurance, one from each major caucus; and (ii) two members of the committee on economic development, housing and trade, one from each caucus;

(b) The following four members of the senate appointed by the president of the senate: (i) Two members of the committee on commerce, trade, housing and financial institutions, one from each major caucus; and (ii) two other senators, one from each major caucus;

(c) The following members appointed by the governor: (i) Three citizens representing purchasers of manufactured homes; (ii) one member each from the following industries: Manufactured home manufacturers, manufactured home dealers, manufactured home installers, lenders, and escrow agents or title companies; and (iii) a representative of local governments; and

(d) The co-chairs of the joint task force shall request that a representative of the attorney general, the department of licensing, the department of community, trade, and economic development, and the department of financial institutions serve on the joint task force as nonvoting members, and may appoint other experts and advisors as nonvoting members.

(2) The nonlegislative members of the joint task force on manufactured home sales shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060. Legislative members of the joint task force shall be reimbursed for travel expenses as provided in RCW 44.04.120. The staff of senate committee services and the office of program research of the house of representatives shall provide administrative and clerical assistance to the joint task force.

(3) The joint task force on manufactured home sales shall be co-chaired by one senator, chosen by the task force, and one state representative, chosen by the task force, from opposite parties. A quorum for any meeting or hearing shall be six members. Any final findings, conclusions, or recommendations of the joint task force must be agreed to by at least eight members, however, minority findings, conclusions, or recommendations may be included that are submitted by any member or group of members. The open public meetings act shall apply to all meetings and hearings of the joint task force. Rules of procedure shall be established at the first meeting of the joint task force.

(4) The joint task force on manufactured home sales shall review the sales practices, transfer of ownership, land-home packages offered by dealers, installation, and other practices related to the purchase, closing, and installation of a manufactured home, and shall make recommendations for legislation and policy regarding methods to provide better protection for purchasers of manufactured homes. The joint task force shall consider, among other things, the following: (a) What types of complaints are being made by purchasers of manufactured homes? (b) Should the closing of a manufactured home sale be more formal, such as requiring that all manufactured home sales be closed in escrow? (c) Should a notice be designed and provided to purchasers of manufactured homes that provides consumer protection information, including such things as: (i) A summary of the rights of the consumer regarding warranties and installation; (ii) examples of improper sales activities such as secret side agreements, delivering a different home than the one purchased and pressuring the purchaser to accept the delivered home, and providing the seller with a power of attorney? (d) Should funds not be disbursed to the dealer until the terms of the sale have been satisfied, including delivery of the manufactured home? and (e) What other methods should be considered to better protect purchasers of manufactured homes?

(5) The co-chairs of the joint task force on manufactured home sales shall convene the first meeting and develop a work plan and meeting schedule. The joint task force shall present a final report, including recommendations and a legislative bill draft, if general consensus is reached on a bill draft, to the legislative committees represented on the joint task force by December 15, 2000.

NEW SECTION. Sec. 3. This act expires December 31, 2000.