DEPARTMENT OF LICENSING

[Filed August 29, 2018, 8:52 a.m.]

Preproposal statement of inquiry was filed as WSR 18-11-078.

Title of Rule and Other Identifying Information: WAC 308-124A-815 Prohibited firm and assumed names.

Hearing Location(s): On October 16, 2018, at 1:00 p.m., at the Department of Licensing, Black Lake Building #3, 2nd Floor, Conference Room 3204, 2000 4th Avenue West, Olympia, WA 98502.

Date of Intended Adoption: October 17, 2018.

Submit Written Comments to: Jerry McDonald, Department of Licensing, Real Estate Programs, P.O. Box 9021, Olympia, WA 98507-9021, email jmcdonald@dol.wa.gov, by October 15, 2018.

Assistance for Persons with Disabilities: Contact Jerry McDonald, phone 360-664-6525, TTY 711, email jmcdonald@dol.wa.gov, by October 15, 2018.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Amend the rule to more clearly define naming requirements for real estate firm and assumed names, and to clarify the basis under which the department may deny, suspend, or reject a real estate firm or assumed name.

Reasons Supporting Proposal: The amended rule will reduce the liability of the agency in deciding how a licensee may conduct real estate business.

Statutory Authority for Adoption: RCW 18.85.041.

Statute Being Implemented: Chapter 18.85 RCW.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of licensing, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Jerry McDonald, 2000 4th Avenue West, Olympia, WA 98502, 360-664-6525.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. The department is exempt under RCW 34.05.328 and this rule making does not qualify as a significant legislative rule or other rule requiring a cost-benefit analysis.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.020(3).

Explanation of exemptions: This rule affects only individual applicants or licensees.

AMENDATORY SECTION(Amending WSR 13-14-077, filed 7/1/13, effective 8/1/13)

WAC 308-124A-815Prohibited firm and assumed names.

(1) The department can deny, suspend, or reject a firm name((s)) or assumed name((s that are in the department's opinion:))if it:

(a) Is derogatory((,));

(b) Is similar or the same as ((other))another licensed firm name((s,));

(d) Implies ((nonprofit or))the firm is a not-for-profit organization;

(e) Implies it is a research organization.

(2) The following are nonexclusive examples of language that are deemed to be similar when used individually or in combination:

(a) The use of a different corporate designator, for example, Corp., Co., Inc., Ltd., and the like.

(b) The addition or deletion of an article or conjunction from the name, such as "the," "a," or "and."

(d) The use of a geographic designator after the association's name. In the case of affiliates using the same name with a geographic or other designator, written consent will be required from the parent or affiliate.

(e) The abbreviation of a word in the same name.

(f) The substitution of a symbol for a word or vice versa.

(g) The use of the terms "realty," "real estate," "group," "realtors," or "firm."

(3) A real estate firm shall not ((be issued a license nor)) advertise in any manner using a name which ((is in the department's opinion similar to currently issued firm or assumed name licenses or imply that either the real estate firm is a nonprofit organization, research organization, public bureau or public group))has not been licensed by the department. A bona fide franchisee may be licensed using the name of the franchisor with the firm name of the franchisee.