SENATE BILL REPORT
SB 5378
As Reported by Senate Committee On:
Business, Financial Services & Trade, February 11, 2021
Title: An act relating to real estate brokers and managing brokers license renewal requirements.
Brief Description: Concerning real estate brokers and managing brokers license renewal requirements.
Sponsors: Senators Das, Nobles, Hasegawa, Lovelett, Randall, Salda?a and Wilson, C..
Brief History:
Committee Activity: Business, Financial Services & Trade: 2/09/21, 2/11/21 [DPS-WM, w/oRec].
Brief Summary of First Substitute Bill
  • Specifies course instruction in fair housing and consumer protection issues within existing continuing education requirements related to obtaining and maintaining real estate brokers licenses.
  • Directs the Department of Licensing to provide more specific training concepts within fair housing education after receiving input from select stakeholder groups.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Majority Report: That Substitute Senate Bill No. 5378 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.
Signed by Senators Mullet, Chair; Hasegawa, Vice Chair; Frockt and Hobbs.
Minority Report: That it be referred without recommendation.
Signed by Senators Dozier, Ranking Member; Brown and Wilson, L.
Staff: Clinton McCarthy (786-7319)
Background:

Real estate brokers and managing real estate brokers are licensed by the Department of Licensing in the state of Washington.  Under existing statute, real estate brokers and managing brokers must fulfill the following criteria in order to obtain a real estate broker's license:

  • be at least 18 years old;
  • have a high school diploma or equivalent; and
  • complete 90 hours of approved real estate education within two years before applying for the exam, including a 60-hour course in real estate fundamentals, and a 30-hour course in real estate practices.


The real estate education requirements are waived for qualified applicants currently licensed in another state.

 

To maintain and renew a broker's license, a real estate broker or managing real estate broker must complete an education requirement.  Prior to renewing a broker's license for the first time, a broker must complete 90 hours of education with the following requirements prior to licensure renewal:

  • 30 hours of an advanced practices course;
  • 30 hours of a real estate law course;
  • 3 hours of a current trends and issues in residential/commercial real estate in Washington (CORE) course; and
  • 27 hours of elective continuing education courses.

 

For subsequent renewals, a broker must complete 30 hours of required education in the following:

  • 3 hours of CORE education; and
  • 27 hours of elective continuing education.

 

A broker's license must be renewed once every two years.
Summary of Bill:

The bill as referred to committee not considered.
Summary of Bill (First Substitute):

Individuals completing the 90 hours of instruction in real estate prior to obtaining their broker's license, and licensed brokers renewing their license for the first time, must complete three hours of instruction on fair housing and consumer protection issues.  Active licensed brokers making subsequent renewals to their license, must complete six hours of instruction on fair housing and consumer protection issues.

 

The Department of Licensing is directed to provide more specific training concepts within fair housing education after receiving input from the following entities:

  • associations that represent real estate brokers and agents;
  • Washington State Commission on African American Affairs;
  • Washington State Commission on Hispanic Affairs;
  • Governor's Office of Indian Affairs;
  • Washington State Commission on Asian Pacific American Affairs;
  • Washington State Human Rights Commission;
  • Governor's Committee on Disability Issues and Employment;
  • Washington State LGBTQ Commission; and
  • Washington State Housing Finance Commission.
Appropriation: None.
Fiscal Note: Requested on February 5, 2020.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill takes effect on June 1, 2022.
Staff Summary of Public Testimony on First Substitute:

PRO:  In the last year, we have seen a lot in the news about the disparities in home buying.  Real estate brokers engage in helping people make the biggest purchase of their lives.  Members in our community have been discriminated against while in pursuit of buying a home as a first step towards creating generational wealth.  The approach used in this bill is consistent with best practices.  Education and outreach is the best way to prevent housing discrimination.  Enforcement of fair housing is enforced by multiple entities.
 
CON:  This bill is entirely redundant which makes it seem like the current education program does not address these issues, which is not true.  The CORE curriculum is required of all brokers.  The curriculum is already in place. 
Persons Testifying: PRO: Senator Mona Das, Prime Sponsor; Mary Hull-Drury, Washington Realtors.
CON: Natalie Danielson, Professional Direction, Inc.
Persons Signed In To Testify But Not Testifying: No one.