AN
ACT Relating to licensing and regulation of consumer loan companies; amending
RCW 31.04.015, 31.04.025, 31.04.045, 31.04.055, 31.04.075, 31.04.085,
31.04.093, 31.04.105, 31.04.145, 31.04.155, 31.04.165, and 31.04.175; adding
new sections to chapter 31.04 RCW; and prescribing penalties.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
31.04.015 and 1994 c 92 s 161 are each amended to read as follows:
The
definitions set forth in this section apply throughout this chapter unless the
context clearly requires a different meaning.
(1)
"Person" includes individuals, partnerships, associations, limited
liability companies, limited liability partnerships, trusts, corporations,
and all other legal entities.
(2)
"License" means a single license issued under the authority of this
chapter with respect to a single place of business.
(3)
"Licensee" means a person to whom one or more licenses have been
issued.
(4)
"Director" means the director of financial institutions.
(5)
"Insurance" means life insurance, disability insurance, property
insurance, involuntary unemployment insurance, and such other insurance as may
be authorized by the insurance commissioner.
(6)
"Add-on method" means the method of precomputing interest payable on
a loan whereby the interest to be earned is added to the principal balance and
the total plus any charges allowed under this chapter is stated as the loan
amount, without further provision for the payment of interest except for
failure to pay according to loan terms. The director may adopt by rule a more
detailed explanation of the meaning and use of this method.
(7)
"Simple interest method" means the method of computing interest payable
on a loan by applying the annual percentage interest rate or its periodic
equivalent to the unpaid balances of the principal of the loan outstanding for
the time outstanding with each payment applied first to any unpaid penalties,
fees, or charges, then to accumulated interest, and the remainder of the
payment applied to the unpaid balance of the principal until paid in full. In
using such method, interest shall not be payable in advance nor compounded,
except that on a loan secured by real estate, a licensee may collect at the
time of the loan closing up to but not exceeding forty-five days of prepaid
interest. The director may adopt by rule a more detailed explanation of
the meaning and use of this method.
(8)
"Applicant" means a person applying for a license under this chapter.
(9)
"Borrower" means any person who consults with or retains a licensee
or person subject to this chapter in an effort to obtain or seek information
about obtaining a loan, regardless of whether that person actually obtains such
a loan.
(10)
"Loan" means a sum of money lent at interest or for a fee or other
charge and includes both open‑end and closed‑end loan transactions.
(11)
"Loan originator" means a person employed, either directly or
indirectly, or retained as an independent contractor by a licensee, to make or
assist a person in applying to obtain a loan.
(12)
"Making a loan" means closing a loan in a person's name, or
advancing, offering to advance, or making a commitment to advance funds to a
borrower for a loan.
(13)
"Mortgage broker" means the same as defined in RCW 19.146.010, except
that for purposes of this chapter, a licensee or person subject to this chapter
cannot receive compensation as both a consumer loan licensee making the loan
and as a mortgage broker in the same loan transaction.
(14)
"Officer" means an official appointed by the company for the purpose
of making business decisions or corporate decisions.
(15)
"Principal" means any person who controls, directly or indirectly
through one or more intermediaries, alone or in concert with others, a ten
percent or greater interest in a partnership; company; association or
corporation; or a limited liability company, and the owner of a sole
proprietorship.
(16)
"Senior officer" means an officer of a licensee at the vice-president
level or above.
(17)
"Third party service provider" means any person other than the
licensee or a mortgage broker who provides goods or services to the licensee or
borrower in connection with the preparation of the borrower's loan and
includes, but is not limited to, credit reporting agencies, real estate brokers
or salespersons, title insurance companies and agents, appraisers, structural
and pest inspectors, or escrow companies.
Sec.
2. RCW
31.04.025 and 1991 c 208 s 4 are each amended to read as follows:
Each
loan made to a resident of this state by a licensee is subject to the authority
and restrictions of this chapter, unless such loan is made under the authority
of another license issued pursuant to a law of this state or under other
authority of a law of this state. This chapter shall not apply to any
person doing business under and as permitted by any law of this state or of the
United States relating to banks, savings banks, trust companies, savings and
loan or building and loan associations, or credit unions, nor to any
pawnbroking business lawfully transacted under and as permitted by any law of
this state regulating pawnbrokers, nor to any loan of credit made pursuant to a
credit card plan ((including but not restricted to plans having all of the
following characteristics:
(1)
Where credit cards are issued pursuant to a plan whereby the organization
issuing such cards shall be enabled to acquire those certain obligations which
its members in good standing incur with those persons with whom the
organization has entered into agreements setting forth said plan, and where the
obligations are incurred pursuant to such agreements; or whereby the
organization issuing such cards shall be enabled to extend credit to its
members;
(2)
Any fee for such credit cards is designed to cover only the administrative
costs of the plan and does not exceed twenty-five dollars per year;
(3)
Any charges, discounts, or fees resulting from the acquisition of such charges
shall be paid to the organization issuing said credit cards (or to such other
organizations as may be authorized by the issuing organization) by the persons,
corporations, or associations with whom the organization has entered into such
written agreements)).
NEW
SECTION. Sec. 3. A
new section is added to chapter 31.04 RCW to read as follows:
It
is a violation of this chapter for a licensee, its officers, directors,
employees, or independent contractors, or any other person subject to this
chapter to:
(1)
Directly or indirectly employ any scheme, device, or artifice to defraud or
mislead any borrower, to defraud or mislead any lender, or to defraud or
mislead any person;
(2)
Directly or indirectly engage in any unfair or deceptive practice toward any
person;
(3)
Directly or indirectly obtain property by fraud or misrepresentation;
(4)
Solicit or enter into a contract with a borrower that provides in substance
that the consumer loan company may earn a fee or commission through the
consumer loan company's best efforts to obtain a loan even though no loan is
actually obtained for the borrower;
(5)
Solicit, advertise, or enter into a contract for specific interest rates,
points, or other financing terms unless the terms are actually available at the
time of soliciting, advertising, or contracting;
(6)
Fail to make disclosures to loan applicants as required by section 9 of this
act and any other applicable state or federal law;
(7)
Make, in any manner, any false or deceptive statement or representation with
regard to the rates, points, or other financing terms or conditions for a
residential mortgage loan or engage in bait and switch advertising;
(8)
Negligently make any false statement or knowingly and willfully make any
omission of material fact in connection with any reports filed with the
department by a licensee or in connection with any investigation conducted by
the department;
(9)
Make any payment, directly or indirectly, to any appraiser of a property, for
the purposes of influencing the independent judgment of the appraiser with
respect to the value of the property; or
(10)
Advertise any rate of interest without conspicuously disclosing the annual
percentage rate implied by that rate of interest or otherwise fail to comply
with any requirement of the truth in lending act, 15 U.S.C. Sec. 1601 and
regulation Z, 12 C.F.R. Sec. 226, the real estate settlement procedures act, 12
U.S.C. Sec. 2601 and regulation X, 24 C.F.R. Sec. 3500, or the equal credit
opportunity act, 15 U.S.C. Sec. 1691 and regulation B, Sec. 202.9, 202.11, and
202.12, or any other applicable federal statute, as now or hereafter amended,
in any advertising of residential mortgage loans or any other consumer loan
company activity.
Sec.
4. RCW
31.04.045 and 1994 c 92 s 162 are each amended to read as follows:
(1)
Application for a license under this chapter must be in writing and in the form
prescribed by the director. The application must contain at least the
following information:
(a)
The name and the business ((and the residence)) addresses of the
applicant;
(b)
If the applicant is a partnership or association, the name of every member;
(c)
If the applicant is a corporation, the name, residence address, and
telephone number of each officer and director;
(d)
The street address, county, and municipality ((where)) from which
business is to be conducted; and
(e)
Such other information as the director may require by rule.
(2)
At the time of filing an application for a license under this chapter, each
applicant shall pay to the director an investigation fee and the ((initial
year's)) license fee in an amount determined by rule of the director to be
sufficient to cover the director's costs in administering this chapter.
(3)
Each applicant shall file and maintain a surety bond, approved by the director,
((in the penal sum of one hundred thousand dollars,)) executed by the
applicant as obligor and by a surety company authorized to do a surety business
in this state as surety, whose liability as such surety shall not exceed in
the aggregate the penal sum ((in the aggregate)) of the bond.
The penal sum of the bond shall be one hundred thousand dollars for each
licensed location up to and including five licensed locations, and an
additional ten thousand dollars for each licensed location in excess of five
licensed locations, except that a licensee who makes a loan secured by real
property shall maintain at a minimum a surety bond with a penal sum of not less
than four hundred thousand dollars. The bond shall run to the state of
Washington as obligee for the use and benefit of the state and of any person or
persons who may have a cause of action against the obligor under this chapter.
The bond shall be conditioned that the obligor as licensee will faithfully
conform to and abide by this chapter and all the rules adopted under this
chapter. The bond will pay to the state and any person or persons having a
cause of action against the obligor all moneys that may become due and owing to
the state and those persons under and by virtue of this chapter. In lieu of a
surety bond, if the applicant is a Washington business corporation, the
applicant may maintain unimpaired capital, surplus, and long-term subordinated
debt in an amount that at any time its outstanding promissory notes or other
evidences of debt (other than long-term subordinated debt) in an aggregate sum
do not exceed three times the aggregate amount of its unimpaired capital,
surplus, and long-term subordinated debt. The director may define qualifying
"long-term subordinated debt" for purposes of this section.
Sec.
5. RCW
31.04.055 and 1994 c 92 s 163 are each amended to read as follows:
(1)
The director shall issue and deliver a license to the applicant to make loans
in accordance with this chapter at the location specified in the application
if, after investigation, the director finds that:
(a)
The applicant has paid all required fees((, has complied));
(b)
The applicant has submitted a complete application in compliance with RCW
31.04.045((, and that));
(c)
Neither the applicant nor its officers or principals have had a license issued
under this section or any other section, in this state or another state,
revoked or suspended within the last five years of the date of filing of the
application;
(d)
Neither the applicant nor any of its officers or principals have been convicted
of a gross misdemeanor involving dishonesty or financial misconduct or a felony
or a violation of the banking laws of this state or of the United States within
seven years of the filing of an application; and
(e)
The financial responsibility, experience, character, and general fitness of
the applicant are such as to command the confidence of the community and to
warrant a belief that the business will be operated honestly, fairly, and
efficiently within the purposes of this chapter.
(2)
If the director does not find the conditions of subsection (1) of this section
have been met, the director shall not issue the license. The director shall
notify the applicant of the denial and return to the applicant the bond posted
and the sum paid by the applicant as a license fee, retaining the investigation
fee to cover the costs of investigating the application. The director shall
approve or deny every application for license under this chapter within ((sixty))
ninety days from the filing of a complete application with the fees and
the approved bond.
Sec.
6. RCW
31.04.075 and 1994 c 92 s 164 are each amended to read as follows:
The
licensee may not maintain more than one place of business under the same
license, but the director may issue more than one license to the same licensee
upon application by the licensee in a form and manner established by the
director. ((A licensee who has five licensed locations shall not be
required to maintain a bond in a penal sum exceeding ten thousand dollars for
each additionally licensed location.))
Whenever
a licensee wishes to change the place of business to a street address other
than that designated in the license, the licensee shall give written notice to
the director as required by rule, pay the license fee, and ((shall))
obtain the director's approval.
Sec.
7. RCW
31.04.085 and 1994 c 92 s 165 are each amended to read as follows:
A
licensee shall, for each license held by any person, on or before the ((twentieth))
first day of each ((December)) March, pay to the director
an annual ((license fee)) assessment as determined by rule by the
director. The licensee shall be responsible for payment of the annual
assessment for the previous calendar year if the licensee had a license for any
time during the preceding calendar year, regardless of whether they surrendered
their license during the calendar year or whether their license was suspended
or revoked. At the same time the licensee shall file with the director the
required bond or otherwise demonstrate compliance with RCW 31.04.045.
Sec.
8. RCW
31.04.093 and 1994 c 92 s 166 are each amended to read as follows:
(1)
The director shall enforce all laws and rules relating to the licensing and
regulation of licensees and persons subject to this chapter.
(2)
The director may deny applications for licenses for:
(a)
Failure of the applicant to demonstrate within its application for a license
that it meets the requirements for licensing in RCW 31.04.045 and 31.04.055;
(b)
Violation of an order issued by the director under this chapter or another
chapter administered by the director, including but not limited to cease and
desist orders and temporary cease and desist orders;
(c)
Revocation or suspension of a license to conduct lending, or to provide
settlement services associated with lending, by this state, another state, or
by the federal government within five years of the date of submittal of a
complete application for a license; or
(d)
Filing an incomplete application when that incomplete application has been
filed with the department for sixty or more days, provided that the director has
given notice to the licensee that the application is incomplete, informed the
applicant why the application is incomplete, and allowed at least twenty days
for the applicant to complete the application.
(3)
The director may suspend or revoke a license issued under this chapter
if the director finds that:
(a)
The licensee has failed to pay any fee due the state of Washington, has failed
to maintain in effect the bond or permitted substitute required under this
chapter, or has failed to comply with any specific order or demand of the
director lawfully made and directed to the licensee in accordance with this
chapter;
(b)
The licensee, either knowingly or without the exercise of due care, has
violated any provision of this chapter or any rule adopted under this chapter;
or
(c)
A fact or condition exists that, if it had existed at the time of the original
application for the license, clearly would have allowed the director to deny
the application for the original license. The director may revoke or suspend
only the particular license with respect to which grounds for revocation or
suspension may occur or exist unless the director finds that the grounds for
revocation or suspension are of general application to all offices or to more
than one office operated by the licensee, in which case, the director may
revoke or suspend all of the licenses issued to the licensee.
(((2)))
(4) The director may impose fines of up to one hundred dollars per day upon
the licensee, its employee or loan originator, or other person subject to this
chapter for:
(a)
Any violation of this chapter; or
(b)
Failure to comply with any order or subpoena issued by the director under this
chapter.
(5)
The director may issue an order directing the licensee, its employee or loan
originator, or other person subject to this chapter to:
(a)
Cease and desist from conducting business in a manner that is injurious to the
public or violates any provision of this chapter;
(b)
Take such affirmative action as is necessary to comply with this chapter; or
(c)
Make restitution to a borrower or other person who is damaged as a result of a
violation of this chapter.
(6)
The director may issue an order removing from office or prohibiting from
participation in the affairs of any licensee, or both, any officer, principal,
employee or loan originator, or any person subject to this chapter for:
(a)
False statements or omission of material information from an application for a
license that, if known, would have allowed the director to deny the original
application for a license;
(b)
Conviction of a gross misdemeanor involving dishonesty or financial misconduct
or a felony;
(c)
Suspension or revocation of a license to engage in lending, or perform a
settlement service related to lending, in this state or another state;
(d)
Failure to comply with any order or subpoena issued under this chapter; or
(e)
A violation of section 3 of this act.
(7)
Whenever the director determines that the public is likely to be substantially
injured by delay in issuing a cease and desist order, the director may
immediately issue a temporary cease and desist order. The order may direct the
licensee to discontinue any violation of this chapter, to take such affirmative
action as is necessary to comply with this chapter, and may include a summary
suspension of the licensee's license and may order the licensee to immediately
cease the conduct of business under this chapter. The order shall become
effective at the time specified in the order. Every temporary cease and desist
order shall include a provision that a hearing will be held upon request to determine
whether the order will become permanent. Such hearing shall be held within
fourteen days of receipt of a request for a hearing unless otherwise specified
in chapter 34.05 RCW.
(8)
A licensee may surrender a license by delivering to the director written notice
of surrender, but the surrender does not affect the licensee's civil or
criminal liability, if any, for acts committed before the surrender,
including any administrative action initiated by the director to suspend or
revoke a license, impose fines, compel the payment of restitution to borrowers
or other persons, or exercise any other authority under this chapter.
(((3)))
(9) The revocation, suspension, or surrender of a license does not
impair or affect the obligation of a preexisting lawful contract between the
licensee and a borrower.
(((4)))
(10) Every license issued under this chapter remains in force and effect
until it has been surrendered, revoked, or suspended in accordance with this
chapter. However, the director may on his or her own initiative reinstate
suspended licenses or issue new licenses to a licensee whose license or
licenses have been revoked if the director finds that the licensee meets all
the requirements of this chapter.
NEW
SECTION. Sec. 9. A
new section is added to chapter 31.04 RCW to read as follows:
Within
three business days following receipt of a loan application, a licensee shall
provide to each borrower a written disclosure containing an itemized estimation
and explanation of all fees and costs that the borrower is required to pay in
connection with obtaining a loan from the licensee. A good faith estimate of a
fee or cost shall be provided if the exact amount of the fee or cost is not
available when the disclosure is provided. Disclosure in a form which complies
with the requirements of the truth in lending act, 15 U.S.C. Sec. 1601 and
regulation Z, 12 C.F.R. Sec. 226, the real estate settlement procedures act and
regulation X, 24 C.F.R. Sec. 3500, and all other applicable federal laws and
regulations, as now or hereafter amended, shall be deemed to constitute
compliance with the disclosure requirements of this section when it is provided
to the borrower within three days of receipt of a loan application. Each
licensee shall comply with all other applicable federal and state laws and
regulations.
Sec.
10. RCW
31.04.105 and 1998 c 28 s 1 are each amended to read as follows:
Every
licensee may:
(1)
Lend money at a rate that does not exceed twenty-five percent per annum as
determined by the simple interest method of calculating interest owed;
(2)
In connection with the making of a loan, charge the borrower a nonrefundable,
prepaid, loan origination fee not to exceed four percent of the first twenty
thousand dollars and two percent thereafter of the principal amount of the loan
advanced to or for the direct benefit of the borrower, which fee may be
included in the principal balance of the loan;
(3)
Agree with the borrower for the payment of fees to third parties other than the
licensee who provide goods or services to the licensee in connection with the
preparation of the borrower's loan, including, but not limited to, credit reporting
agencies, title companies, appraisers, structural and pest inspectors, and
escrow companies, when such fees are actually paid by the licensee to a third
party for such services or purposes and may include such fees in the amount of
the loan. However, no charge may be collected unless a loan is made, except
for reasonable fees properly incurred in connection with the appraisal of
property by a qualified, independent, professional, third-party appraiser
selected by the borrower and approved by the lender or in the absence of
borrower selection, selected by the lender;
(4)
In connection with the making of a loan secured by real estate, when the
borrower actually obtains a loan, agree with the borrower to pay a fee to a
mortgage broker that is not owned by the licensee or under common ownership
with the licensee and that performed services in connection with the
origination of the loan. A licensee may not receive compensation as a mortgage
broker in connection with any loan made by the licensee;
(5)
Charge and collect a penalty of ten cents or less on each dollar of any
installment payment delinquent ten days or more;
(((5)))
(6) Collect from the debtor reasonable attorneys' fees, actual expenses,
and costs incurred in connection with the collection of a delinquent debt, a
repossession, or a foreclosure when a debt is referred for collection to an
attorney who is not a salaried employee of the licensee;
(((6)))
(7) Make open-end loans as provided in this chapter;
(((7)))
(8) Charge and collect a fee for dishonored checks in an amount approved
by the director; and
(((8)))
(9) In accordance with Title 48 RCW, sell insurance covering real and
personal property, covering the life or disability or both of the borrower, and
covering the involuntary unemployment of the borrower.
Sec.
11. RCW
31.04.145 and 1995 c 9 s 2 are each amended to read as follows:
(1)
For the purpose of discovering violations of this chapter or securing
information lawfully required under this chapter, the director may at any time,
either personally or by ((a)) designees, investigate or
examine the loans and business and ((examine)), wherever located,
the books, accounts, records, ((and)) papers, documents, files,
and other information used in the business of every licensee and of every
person who is engaged in the business ((described in RCW 31.04.035)) making
or assisting in the making of loans at interest rates authorized by this
chapter, whether the person acts or claims to act as principal or agent, or
under or without the authority of this chapter. For ((that)) these
purposes, the director ((and)) or designated
representatives shall have free access to the offices and places of
business, books, accounts, papers, documents, other information,
records, files, safes, and vaults of all such persons. The director ((and))
or persons designated by the director may require the attendance of and
examine under oath all persons whose testimony may be required about the loans
or the business or the subject matter of any investigation, examination, or
hearing and may require such person to produce books, accounts, papers,
records, files, and any other information the director or designated persons
deem relevant to the inquiry. The director may require the production of
original books, accounts, papers, records, files, and other information; may
require that such original books, accounts, papers, records, files, and other
information be copied; or may make copies himself or herself or by designee of
such original books, accounts, papers, records, files, or other information.
If a licensee or person does not attend and testify, or does not produce the
requested books, accounts, papers, records, files, or other information, then
the director or designated persons may issue a subpoena or subpoena duces tecum
requiring attendance or compelling production of the books, accounts, papers,
records, files, or other information.
(2)
The director shall make such ((an)) periodic examinations
of the affairs, business, office, and records of each licensee as determined by
rule. ((The))
(3)
Every licensee ((so)) examined or investigated by the director or
the director's designee shall pay to the director the ((actual))
cost of ((examining and supervising)) the examination or
investigation of each licensed place of business as determined by rule
by the director.
Sec.
12. RCW
31.04.155 and 1994 c 92 s 170 are each amended to read as follows:
The
licensee shall keep and use in the business such books, accounts, ((and))
records, papers, documents, files, and other information as will enable
the director to determine whether the licensee is complying with this chapter
and with the rules adopted by the director under this chapter. The director
shall have free access to such books, accounts, ((and)) records,
papers, documents, files, and other information wherever located. Every
licensee shall preserve the books, accounts, ((and)) records, papers,
documents, files, and other information relevant to a loan for at least ((two
years)) twenty-five months after making the final entry on any loan
((recorded in them)). No licensee or person subject to examination
or investigation under this chapter shall withhold, abstract, remove, mutilate,
destroy, or secrete any books, accounts, records, papers, documents, files, or
other information.
Each
licensee shall, on or before the first day of March of each year,
file a report with the director giving such relevant information as the
director may reasonably ((may)) require concerning the business
and operations ((during the preceding calendar year)) of each licensed
place of business conducted ((by the licensee within the state)) during
the preceding calendar year. The report must be made under oath and must
be in the form prescribed by the director, who shall make and publish annually
an analysis and recapitulation of the reports. Every licensee that fails to
file a report that is required to be filed by this chapter within the time
required under this chapter is subject to a penalty of fifty dollars per day
for each day's delay. The attorney general may bring a civil action in the
name of the state for recovery of any such penalty.
Sec.
13. RCW
31.04.165 and 1994 c 92 s 171 are each amended to read as follows:
(1)
The director has the power, and broad administrative discretion, to administer
and interpret this chapter to facilitate the delivery of financial services to
the citizens of this state by loan companies subject to this chapter. The
director shall adopt all rules necessary to administer this chapter and to
ensure complete and full disclosure by licensees of lending transactions
governed by this chapter.
(2)
If it appears to the director that a licensee is conducting business in an
injurious manner or is violating any provision of this chapter, the director
may order or direct the discontinuance of any such injurious or illegal
practice.
(3)
For purposes of this section, "conducting business in an injurious
manner" means conducting business in a manner that violates any provision
of this chapter, or that creates the reasonable likelihood of a violation of
any provision of this chapter.
(4)
The director or designated persons, with or without prior administrative
action, may bring an action in superior court to enjoin the acts or practices
that constitute violations of this chapter and to enforce compliance with this
chapter or any rule or order made under this chapter. Upon proper showing,
injunctive relief or a temporary restraining order shall be granted. The
director shall not be required to post a bond in any court proceedings.
Sec.
14. RCW
31.04.175 and 1994 c 92 s 172 are each amended to read as follows:
(1)
((Every licensee that fails to file a report that is required to be filed by
this chapter within the time required under this chapter is subject to a
penalty of fifty dollars per day for each day's delay. The attorney general
may bring a civil action in the name of the state for recovery of any such
penalty.
(2))) A
person who violates, or knowingly aids or abets in the violation of any
provision of this chapter, for which no penalty has been prescribed, and
a person who fails to perform any act that it is ((made)) his or her
duty to perform under this chapter and for which failure no penalty has been
prescribed, is guilty of a gross misdemeanor. ((No person who has been
convicted for the violation of the banking laws of this state or of the United
States may be permitted to engage in the business, or become an officer or
official, of any licensee in this state.
(3))) (2)
No provision imposing civil penalties or criminal liability under this chapter
or rule adopted under this chapter applies to an act taken or omission made in
good faith in conformity with a written notice, interpretation, or examination
report of the director or his or her agent.
NEW
SECTION. Sec. 15. A
new section is added to chapter 31.04 RCW to read as follows:
The
proceedings for denying license applications, issuing cease and desist orders,
suspending or revoking licenses, and imposing civil penalties or other remedies
under this chapter, and any review or appeal of such action, shall be governed
by the provisions of the administrative procedure act, chapter 34.05 RCW.
NEW
SECTION. Sec. 16. A
new section is added to chapter 31.04 RCW to read as follows:
The
director or designated persons may, at his or her discretion, take such action
as provided for in this chapter to enforce this chapter. If the person subject
to such action does not appear in person or by counsel at the time and place
designated for any administrative hearing that may be held on the action, then
the person shall be deemed to consent to the action. If the person subject to
the action consents, or if after hearing the director finds by a preponderance
of the evidence that any grounds for sanctions under this chapter exist, then
the director may impose any sanction authorized by this chapter.
NEW
SECTION. Sec. 17. A
new section is added to chapter 31.04 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.
