WSR 97-01-027

PERMANENT RULES

DEPARTMENT OF LICENSING

(Real Estate Commission)

[Filed December 10, 1996, 8:55 a.m.]

Date of Adoption: December 6, 1996.

Purpose: The purpose of these rule changes is to correct and update housekeeping portions of the rules, eliminate the "substantive" "nonsubstantive" course approval language and repeal the WAC dealing with agency disclosure (WAC 308-124D-040). Amending WAC 308-124-005 Organization, updates real estate program address to its current location; WAC 308-124A-020 Application for license--Fingerprinting, condenses rule language and indicates persons convicted of crimes may be required to submit fingerprint information prior to getting a license; WAC 308-124A-422 Application for broker license examination--Clock hour requirements, eliminates references to "substantive/nonsubstantive" real estate course distinction; WAC 308-124A-570 Reinstatement of a cancelled license for nonpayment of renewal fee, corrects WAC reference to real estate law course; WAC 308-124A-600 Continuing education clock hour requirements, eliminates references to "substantive/nonsubstantive" real estate course distinction; WAC 308-124H-025 Application for course approval, eliminates references to "substantive/nonsubstantive" real estate course distinction; and repealing WAC 308-124D-040 Disclosure of agency representation, this WAC is no longer necessary with the creation of new chapter 18.86 RCW which addresses agency disclosure requirements for brokers and salespersons.

Citation of Existing Rules Affected by this Order: Repealing WAC 308-124D-040; and amending WAC 308-124-005, 308-124A-020, 308-124A-422, 308-124A-570, 308-124A-600, and 308-124H-025.

Statutory Authority for Adoption: RCW 18.85.040 and chapter 18.86 RCW.

Adopted under notice filed as WSR 96-21-113 on October 22, 1996.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 1.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, amended 6, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, amended 6, repealed 1; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: Thirty-one days after filing.

December 9, 1996

Kathy Baros Friedt

Director

AMENDATORY SECTION (Amending WSR 95-03-012, filed 1/5/95, effective 2/5/95)

WAC 308-124-005 Organization. The principal location of the Real Estate Program is at ((2424 Bristol Court SW)) 2000 4th Avenue West, Olympia, Washington 98502. A Spokane office is at 11530 East Sprague Avenue, Spokane, Washington 99206.

The department of licensing administers the Washington real estate license law, chapter 18.85 RCW. The real estate commission, composed of the director of the department of licensing and six commission members, appointed by the governor from the real estate industry, prepares or reviews and approves examination questions for license applicants, holds real estate education conferences, advises the director as to the issuance of rules and regulations governing the activities of real estate brokers and salespersons and performs such other duties and functions as prescribed by chapter 18.85 RCW. Submissions and requests for information regarding real estate licenses, the real estate commission, or the real estate program, may be sent in writing to the Real Estate Program, Department of Licensing, P.O. Box 9015, Olympia, Washington 98507-9015.

[Statutory Authority: RCW 18.85.040 and SB 6284. 95-03-012, 308-124-005, filed 1/5/95, effective 2/5/95. Statutory Authority: RCW 18.85.040. 90-23-039, 308-124-005, filed 11/15/90, effective 12/16/90; 87-20-091 (Order PM 683), 308-124-005, filed 10/7/87; 82-17-039 (Order 130), 308-124-005, filed 8/13/82; 81-05-016 (Order RE 128), 308-124-005, filed 2/10/81; Order RE 114, 308-124-005, filed 7/2/75; Rules (part), filed 8/24/67.]

AMENDATORY SECTION (Amending Order PM 774, filed 9/30/88, effective 1/1/89)

WAC 308-124A-020 Application for a license--Fingerprinting. ((All)) Persons who have been convicted of a crime within ten years of application ((must)) may be required to submit fingerprint identification, on a form provided by the department prior to issuance of a license ((for:

(1) A real estate salesperson license;

(2) An individual broker license;

(3) A corporation or partnership broker license;

(4) An associate real estate broker license; or

(5) A land development representative registration)).

[Statutory Authority: RCW 18.85.040. 88-20-036 (Order PM 774), 308-124A-020, filed 9/30/88, effective 1/1/89; 87-20-091 (Order PM 683), 308-124A-020, filed 10/7/87; 81-05-016 (Order RE 128), 308-124A-020, filed 2/10/81; Order RE 120, 308-124A-020, filed 9/20/77; Order RE 114, 308-124A-020, filed 7/2/75.]

AMENDATORY SECTION (Amending WSR 95-03-012, filed 1/5/95, effective 7/1/95)

WAC 308-124A-422 Application for broker license examination--Clock hour requirements. (1) Applicants for the broker's examination shall have successfully completed one hundred twenty clock hours of approved real estate instruction in addition to any other clock hours completed and used to satisfy requirements of chapter 18.85 RCW. Instruction must include a course in real estate law, a course in real estate brokerage management, a course in business management and one elective course. All courses completed to satisfy this requirement must be ((substantive)) approved real estate subject matter as defined in WAC 308-124H-025(((1))) and be at least thirty clock hours in length and include a comprehensive examination. Courses must be completed within five years prior to applying for the broker's examination.

(2) Courses in real estate law, real estate brokerage management, and business management, used to satisfy continuing education requirements within five years of applying for the broker's examination shall satisfy the requirements of subsection (1) of this section provided the applicant successfully completed a comprehensive examination. Applicants are required to complete one hundred twenty clock hours of approved course work in addition to real estate law, brokerage management, and business management when they are used for continuing education credit or to reactivate an inactive license.

[Statutory Authority: RCW 18.85.040 and SB 6284. 95-03-012, 308-124A-422, filed 1/5/95, effective 7/1/95. Statutory Authority: RCW 18.85.040. 91-23-006, 308-124A-422, filed 11/7/91, effective 12/8/91.]

AMENDATORY SECTION (Amending WSR 91-23-006, filed 11/7/91, effective 12/8/91)

WAC 308-124A-570 Reinstatement of a cancelled license for nonpayment of renewal fee. Any person desiring to be reinstated as a real estate licensee within two years of cancellation may have their license reinstated by satisfying either of the following options:

(1) Submission of an application to the director providing proof of the following:

(a) Successful completion of sixty clock hours of approved real estate course work completed within one year preceding the application for reinstatement. A minimum of thirty clock hours must include the real estate law course specified in WAC ((308-124H-037)) 308-124H-011;

(b) Payment of all back renewal fees with penalty at the current rate; and

(c) Payment of a reinstatement penalty fine of one hundred dollars; or

(2) Satisfy the procedures and qualifications for initial licensing, including the following:

(a) Successful completion of any applicable licensing examinations; and

(b) Successful completion of required courses pursuant to RCW 18.85.090 and/or 18.85.095, whichever applicable, within five years preceding the application for reinstatement.

(3) Former licensees, cancelled for nonpayment of fees for periods in excess of two years will be required to satisfy the requirements of subsection (2) of this section.

[Statutory Authority: RCW 18.85.040. 91-23-006, 308-124A-570, filed 11/7/91, effective 12/8/91.]

AMENDATORY SECTION (Amending WSR 95-03-012, filed 1/5/95, effective 2/5/95)

WAC 308-124A-600 Continuing education clock hour requirements. A licensee shall submit to the department evidence of satisfactory completion of clock hours, pursuant to RCW 18.85.165, in the manner and on forms prescribed by the department.

(1) A licensee applying for renewal of an active license shall submit evidence of completion of at least thirty clock hours of instruction in a course(s) approved by the director and commenced within thirty-six months of a licensee's renewal date. A minimum of fifteen clock hours must be completed within twenty-four months of the licensee's current renewal date; up to fifteen clock hours of instruction beyond the thirty clock hours submitted for a previous renewal date may be carried forward to the following renewal date.

(2) The thirty clock hours ((may)) shall be satisfied by evidence of ((at least twenty clock hours in courses designated by the commission as substantive real estate subject matter and not more than ten clock hours in courses designated by the commission as business skills and management courses)) completion of approved real estate courses as defined in WAC 308-124H-025.

(3) Courses for continuing education clock hour credit shall be commenced after issuance of a first license.

(4) A licensee shall not place a license on inactive status to avoid the continuing education requirement. A licensee shall submit evidence of completion of continuing education clock hours to activate a license if activation occurs within one year after the license had been placed on inactive status and the last renewal of the license had been as an inactive license.

(5) Approved courses may be repeated for continuing education credit in subsequent renewal periods.

(6) Clock hour credit for continuing education shall not be accepted if:

(a) The course is not approved pursuant to chapter 308-124H WAC and chapter 18.85 RCW;

(b) Course(s) was taken to activate an inactive license pursuant to RCW 18.85.215(3);

(c) Course(s) was used to satisfy the requirements of RCW 18.85.095 (1)(b), real estate salesperson's license, RCW 18.85.095 (2)(a), real estate salesperson's practices course, and RCW 18.85.090, broker's license and WAC 308-124A-570, reinstatement.

(7) Instructors shall not receive clock hour credit for teaching or course development.

[Statutory Authority: RCW 18.85.040 and SB 6284. 95-03-012, 308-124A-600, filed 1/5/95, effective 2/5/95. Statutory Authority: RCW 18.85.040. 91-23-006, 308-124A-600, filed 11/7/91, effective 12/8/91.]

AMENDATORY SECTION (Amending WSR 95-03-012, filed 1/5/95, effective 7/1/95)

WAC 308-124H-025 Application for course approval. Courses shall meet the following requirements:

(1) Have a minimum of three hours of classroom work for the student. A classroom hour is a period of fifty minutes of actual classroom or workshop instruction, exclusive of examination time;

(2) Provide practical information related to the practice of real estate((, and deal with substantive real estate subject matter)) in any of the following real estate topic areas: Fundamentals, Practices, principles/essentials, Real Estate Law, legal aspects, Brokerage Management, Business Management, taxation, appraisal, evaluating real estate and business opportunities, property management and leasing, construction and land development, ethics and standards of practice, escrow closing/settlement practices, current trends and issues, finance, hazardous waste and other environmental issues, commercial ((or;

(3) Provide practical information related to assisting licensees in improving their business skills and business management in order to enable them to better serve and protect the consumer in any of the following topic areas:)), advertising (Regulation Z), agent supervision and broker responsibility, ((cross cultural communication)) selling, listing, and marketing of real estate, theory and practices of relocation, ((and accounting for real estate offices)) or instructor development;

(((4))) (3) Be under the supervision of an approved instructor approved to teach the course in the classroom at all sessions and offered by an approved school provided that, if the instructional methods include the use of prerecorded audio and/or visual instructional materials, presentation shall be under the supervision of a monitor at all times and an approved instructor who shall, at a minimum, be available to respond to specific questions from students;

(4) Shall not include the following topics for clock hours: Product marketing, personal motivation, sales motivation, personal promotion, stress management, personal improvement, personality profiles, office and personal skills, or sales promotion. Clock hours will not be awarded for any time devoted to staff meetings, examinations, meals or transportation.

(5) Courses of thirty clock hours or more which are submitted ((as substantive real estate subject matter courses)) for approval shall include a comprehensive examination(s) and answer key(s) of no fewer than three questions per clock hour with a minimum of ninety questions, and a requirement of passing course grade of at least seventy percent; essay question examination keys shall identify the material to be tested and the points assigned for each question;

(6) Include textbook or instructional materials approved by the director, which shall be kept accurate and current. Course materials shall be updated no later than thirty days after the effective date of a change in statute or rules;

(7) Include in its title the phrase "real estate fundamentals," "real estate brokerage management," "real estate law," "business management," or "real estate practices" if submitted for approval for clock hours pursuant to WAC 308-124H-011. No other courses shall use these phrases in their titles;

(8) Not have a title which misleads the public as to the subject matter of the course;

(9) Be offered by a tax-supported, public ((vocational-technical institution,)) technical or community college or any other institution of higher learning that may certify clock hours as indicated in RCW 18.85.010(9) or by a private entity approved by the director to operate as a school;

(10) Any change in course content or material other than updating for statute or rule changes, shall be submitted to the department no later than twenty days prior to the date of using the changed course content material, for approval by the director;

(11) Changes in course instructors may be made only if the substitute instructors are currently approved to teach the course pursuant to chapter 308-124H WAC;

(12) A course completed in another jurisdiction may be approved for clock hour credit if:

(a) The course was offered by a tax-supported, public ((vocational-technical institution,)) technical or community college, or any other institution of higher learning, or by a national institution with uniform scope and quality of representation, or was approved to satisfy an education requirement for real estate licensing or renewal and offered by an entity approved to offer the course by the real estate licensing agency in that jurisdiction; and

(b) The course satisfies the requirements of subsections (1) through (6) of this section, and includes a comprehensive examination and requirement of a passing course grade of at least seventy percent; and/or

(c) If the director determines that the course substantially satisfies the requirements of the real estate fundamentals course required under RCW 18.85.095 or satisfies the requirements of the law, brokerage management and business management courses required under RCW 18.85.090.

[Statutory Authority: RCW 18.85.040 and SB 6284. 95-03-012, 308-124H-025, filed 1/5/95, effective 7/1/95. Statutory Authority: RCW 18.85.040. 91-23-006, 308-124H-025, filed 11/7/91, effective 12/8/91. Statutory Authority: RCW 18.85.040, [18.85].085, [18.85].090 and [18.85].095. 91-07-029, 308-124H-025, filed 3/14/91, effective 4/14/91. Statutory Authority: RCW 18.85.040. 90-10-010, 308-124H-025, filed 4/20/90, effective 8/1/90.]

REPEALER

The following section of the Washington Administrative Code is repealed: