wa-law.org > bill > 2025-26 > HB 1464 > Original Bill
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Agreed home value" means the value of the property at the time of origination, as agreed to by both the homeowner and the home equity sharing agreement originator and does not include any discount or risk adjustment.
"Annualized cost" means the annualized cost of a home equity sharing agreement, expressed as a percentage and calculated as follows: (((home equity sharing agreement settlement payment / investment amount)^(365 / term days))-1).
"Beginning home equity" means the unencumbered equity in a homeowner's property after the home equity sharing agreement is consummated, expressed as a percentage and calculated as follows: (1-((Senior secured debt + investment amount)/ agreed home value)).
"Department" means the department of financial institutions as established under chapter 43.320 RCW.
"Director" means the director of the department of financial institutions.
"Home equity sharing agreement" means any nonrecourse obligation in which an advance sum of money is extended to a homeowner in exchange for an interest or future share of equity in the homeowner's primary dwelling or a future obligation to pay a sum upon the occurrence of an agreed-upon event. A home equity sharing agreement is not a residential mortgage loan or other form of loan as defined in RCW 31.04.015.
"Home equity sharing agreement application" means the submission of a homeowner's financial and property information for purposes of entering a home equity sharing agreement.
"Home equity sharing agreement holder" means, with respect to a home equity sharing agreement, the person or persons that are entitled to receive the settlement payment under such agreement.
"Home equity sharing agreement originator" means a person who for compensation or gain or with the expectation of compensation or gain, either takes a home equity sharing agreement application or offers or negotiates terms of a home equity sharing agreement. "Home equity sharing agreement originator" does not include a person engaged solely as a processor or underwriter for home equity sharing agreements.
"Homeowner" means the owner of the property that applies for or enters into a home equity sharing agreement.
"Investment amount" means the gross proceeds of a home equity sharing agreement that is provided to the homeowner, before any deduction of third-party fees or amounts charged by the home equity sharing agreement originator.
"Licensee" means a person to whom a license under this chapter has been issued.
"Person" means an individual, partnership, association, limited liability company, limited liability partnership, trust, corporation, and any other legal entity.
"Senior secured debt" means any obligation secured by a lien on the property that would be senior to the lien securing obligations under the home equity sharing agreement after application of any proceeds from the home equity sharing agreement at closing to reduce the amount of any such senior obligations.
"Service" means performing administrative functions and collecting settlement payments on behalf of the home equity sharing agreement holder or home equity sharing agreement originator.
"Settle" or "settlement" means the process by which a homeowner terminates a home equity sharing agreement, as set out in the terms of the home equity sharing agreement.
"Settlement payment" means the dollar amount that the homeowner will pay to settle a home equity sharing agreement, excluding any amounts paid by the homeowner pursuant to the terms of the home equity sharing agreement as reimbursement for payments made on behalf of the homeowner or administrative fees charged to the homeowner during the term of the home equity sharing agreement or interest required not otherwise prohibited by law.
"Term days" means the exact number of days that passed between the effective date and the settlement date of the home equity sharing agreement.
Any home equity sharing agreement made concerning a homeowner's primary dwelling physically located in this state by a licensee, or persons subject to this chapter, is subject to the authority and restrictions of this chapter.
Notwithstanding any other provision of law, home equity sharing agreements offered and provided by a licensee in accordance with this chapter are not a mortgage loan, residential mortgage loan, residential mortgage loan modification, or a reverse mortgage loan.
Beginning July 1, 2026:
No person may conduct business as a home equity sharing agreement originator and may not offer or originate a home equity sharing agreement in this state without first obtaining and maintaining a license in accordance with this chapter.
Any person licensed as a home equity sharing agreement originator in accordance with this chapter, or as a consumer loan company in accordance with chapter 31.04 RCW, may also service home equity sharing agreements.
A person subject to this chapter shall apply for a license required under this chapter by submitting an application in the form prescribed by the director. The application must contain at least the following information:
The name and the business addresses of the applicant;
If the applicant is a partnership, limited liability company, or association, the application must include the names of every member;
If the applicant is a corporation, the application must include the names, residential addresses, and telephone numbers of each officer and director;
The street address, county, and municipality from which business is to be conducted or a statement that the business is to be conducted entirely online; and
Other information as the director may require by rule, necessary to fulfill the purpose of this section.
[Empty]
As part of or in connection with an application for any license under this section, or periodically upon license renewal, each officer, director, and owner applicant must furnish identifying information, including:
Fingerprints for submission to the Washington state patrol, the federal bureau of investigation, or any governmental agency or entity authorized to receive this information for a state and national criminal history background check;
Personal history;
Experience;
Business record;
Purposes; and
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 license fee in an amount determined by rule by the director to be sufficient to cover the director's costs in administering this chapter.
Each applicant must file and maintain a surety bond, approved by the director, 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 must not exceed in the aggregate the penal sum of the bond. The penal sum of the bond must be a minimum of $30,000. The bond must 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 must 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. The bond must be continuous and may be canceled by the surety upon the surety giving written notice to the director of its intent to cancel the bond. The cancellation applies 45 days after the notice is received by the director. Instead 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.
The director may waive one or more requirements of this section or permit an applicant to submit other information instead of the required information.
The director shall issue and deliver a license to the applicant to offer and provide home equity sharing agreements in accordance with this chapter if, after investigation, the director finds that:
The applicant has paid all required fees;
The applicant has submitted a complete application in compliance with section 4 of this act;
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;
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
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.
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 90 days from the filing of a complete application with the fees and the approved bond.
The license must display the following information:
The address at which the business is to be conducted or whether the business is to be conducted entirely online;
The full name of the licensee, and if the licensee is a copartnership or association, the names of its members; and
If the licensee is a corporation, the date and place of its incorporation.
The license is not transferable or assignable.
A licensee shall, for each license held, on or before the first day of each March, pay to the director an annual 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 section 4 of this act.
The director shall enforce all laws and rules relating to the licensing and regulation of licensees and persons subject to this chapter.
The director may deny applications for licenses for:
Failure of the applicant to demonstrate within its application for a license that it meets the requirements for licensing in sections 4 and 5 of this act;
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;
Revocation or suspension of a license to offer or provide home equity sharing agreements 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
Filing an incomplete application when that incomplete application has been filed with the department for 60 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 20 days for the applicant to complete the application.
The director may condition, suspend, or revoke a license issued under this chapter if the director finds that:
The licensee has failed to pay any fee due to 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;
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;
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; or
The licensee failed to comply with any directive, order, or subpoena issued by the director under this chapter.
The director may condition, revoke, or suspend the license with respect to which grounds for conditioning, revocation, or suspension may occur or exist.
The director may impose fines of up to $100 per day, per violation, upon the licensee or other person subject to this chapter for:
Any violation of this chapter; or
Failure to comply with any directive, order, or subpoena issued by the director under this chapter.
The director may issue an order directing the licensee or other person subject to this chapter to:
Cease and desist from conducting business in a manner that is injurious to the public or violates any provision of this chapter;
Take such affirmative action as is necessary to comply with this chapter;
Make a refund or restitution to a consumer who is damaged as a result of a violation of this chapter; or
Refund all fees received through any violation of this chapter.
The director may issue an order removing from office or prohibiting from participation in the affairs of any licensee, or both, any officer, principal, or any person subject to this chapter for:
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;
Conviction of a gross misdemeanor involving dishonesty or financial misconduct or a felony;
Suspension or revocation of a license to offer or provide home equity sharing agreements in this state or another state;
Failure to comply with any order or subpoena issued under this chapter; or
Failure to obtain a license for activity that requires a license.
Except to the extent prohibited by another statute, the director may engage in informal settlement of complaints or enforcement actions including, but not limited to, payment to the department for purposes of financial literacy and education programs authorized under RCW43.320.150. If any person subject to this chapter makes a payment to the department under this section, the person may not advertise such payment.
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 becomes effective at the time specified in the order. Every temporary cease and desist order must include a provision that a hearing will be held upon request to determine whether the order will become permanent. Such hearing must be held within 14 days of receipt of a request for a hearing unless otherwise specified in chapter34.05 RCW.
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. The statute of limitations on actions not subject to RCW 4.16.160 that are brought under this chapter by the director is five years.
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 consumer.
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 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.
A license issued under this chapter expires upon the licensee's failure to comply with the annual assessment requirements in section 7 of this act. The department must provide notice of the expiration to the address of record provided by the licensee. On the 15th day after the department provides notice, if the assessment remains unpaid, the license expires. The licensee must receive notice before expiration and have the opportunity to stop the expiration as set forth in rule.
A person required to be licensed under this chapter shall comply with the following requirements:
A person providing a home equity sharing agreement shall provide at least three business days in which the homeowner may rescind their acceptance of the home equity sharing agreement before the home equity sharing agreement becomes effective and binding for the homeowner. The homeowner shall submit the rescission notice in writing to the home equity sharing agreement originator within such designated rescission period.
Except in connection with a home purchase transaction, after application of the investment amount to pay down existing liens secured by the property if applicable, the homeowner's beginning home equity must be equal to or greater than 10 percent.
All appraisals or other valuation reports must meet industry standards and be conducted by an independent third party, unless an affiliated appraisal or valuation is disclosed and consented to in writing by the homeowner. Copies of all valuation reports must be provided to the homeowner.
The annualized cost of a home equity sharing agreement may not exceed 25 percent.
Before entering into a home equity sharing agreement, a home equity sharing agreement originator shall provide a disclosure to the homeowner in a form prescribed by the director. The disclosure shall contain at least the following information:
A clear and conspicuous statement that (i) by entering into the home equity sharing agreement, a lien will be placed on the property and that failure to comply with the terms of the home equity sharing agreement or an inability to settle the home equity sharing agreement may result in the homeowner losing their property, and (ii) that the homeowner should obtain the advice of an attorney before proceeding with the transaction;
A summary of the terms of the home equity sharing agreement including:
The investment amount;
An itemization of any charges and payments to third parties and any fees paid to the home equity sharing agreement originator that are deducted from the investment amount;
The net proceeds to be delivered to the homeowner at closing;
The maximum term of the home equity sharing agreement;
How the homeowner can settle the home equity sharing agreement together with an explanation of how the settlement cost will be calculated; and
A summary of the types of fees that may be charged in connection with settling the home equity sharing agreement;
[Empty]
The agreed home value without adjustment and the method used to determine the agreed home value; and
If the agreed home value is adjusted for any discounts, risk adjustments, or enhancements for purposes of the home equity sharing agreement, the amount of the adjustments and the value of the property used for purposes of calculating the share of appreciation or equity;
The method of determining the final value of the property that is the subject of the home equity sharing agreement upon settlement of the home equity sharing agreement;
The maximum share of appreciation or equity in the property that the home equity sharing agreement originator may receive under the terms of the home equity sharing agreement or an explanation of any other limits on the amount that the home equity sharing agreement originator may receive under the home equity sharing agreement;
Any other amounts charged in connection with the home equity sharing agreement;
Settlement examples for the home equity sharing agreement after three years, five years, 10 years, 15 years, and 30 years, in each case up to the maximum term of the applicable home equity sharing agreement.
(A) No change in the value of the property;
(B) A total depreciation of 10 percent;
(C) Annual appreciation of 3.5 percent;
(D) Annual appreciation of 5.5 percent; and
(E) The actual annualized change in value of residential real property in Washington over the prior five-year period, measured from the most recent available data point in the all-transactions house price index as published by the federal reserve bank of St. Louis.
ii. For each combination of settlement time frame and property change in value specified in (g)(i) of this subsection, the home equity sharing agreement originator shall provide the homeowner with:
(A) The projected final value of the property;
(B) The share of appreciation or equity that the home equity sharing agreement originator would be entitled to receive expressed as a percentage of projected final property value;
(C) The dollar value of such share of appreciation or equity, and if any cap applies, the capped dollar value required to settle the home equity sharing agreement; and
(D) An annual percentage rate equivalent based on the investment amount, the gross estimated cost of settlement, and the number of days from closing to settlement.
A person required to be licensed under the authority of this chapter is prohibited from engaging in any of the following:
Charging any penalty for settling a home equity sharing agreement before the end of the home equity sharing agreement's specified term;
Preventing the homeowner from renting or using the property as the homeowner chooses, provided that such use complies with applicable law. Nothing in this subsection prohibits a home equity sharing agreement from:
Requiring that the homeowner notify the home equity sharing agreement holder or their designee of a change in use;
Requiring the homeowner to obtain commercially appropriate property insurance in connection with any use of the property; or
Imposing risk-based pricing adjustments for properties other than the owner's principal residence;
Requiring the use of an appraisal or valuation report prepared or managed by an appraiser, appraisal management company, or other valuation service provider affiliated with the home equity sharing agreement originator, except the homeowner and home equity sharing agreement originator may agree to the use of an affiliated appraiser or appraisal management company to the extent that such affiliation is disclosed and consented to in writing by the homeowner;
Agreeing to a valuation that differs from the value obtained by the appraisal or other third-party means unless:
At least one third-party valuation report is obtained and shared with the homeowner to provide an indication of market value; and
The value that differs from the appraisal or third-party valuation report is fully disclosed to the homeowner and the homeowner agrees to the alternative value in writing;
Including provisions in the home equity sharing agreement that prohibit the homeowner from refinancing a mortgage or lien on the primary dwelling, provided that:
Nothing in this subsection obligates a home equity sharing agreement holder to subordinate their lien to any other lien holder; and
If the homeowner is seeking a cash out refinancing, the home equity sharing agreement may require that the proceeds of such refinancing be used to settle the home equity sharing agreement;
Charging an amount to settle a home equity sharing agreement that exceeds the amount permitted under the annualized cost limit, plus reimbursement for payments made on behalf of the homeowner or administrative fees charged to the homeowner during the term of the home equity sharing agreement; and
Taking any action in violation of RCW 19.86.020 in connection with a home equity sharing agreement.
It is a violation of this chapter for a licensee, its officers, board members, or any other person subject to this chapter to:
Directly or indirectly employ any scheme, device, or artifice to defraud or mislead any person;
Directly or indirectly engage in any unfair or deceptive practice toward any person;
Directly or indirectly obtain property by fraud or misrepresentation;
Solicit or enter into a contract with a homeowner that provides in substance that the home equity sharing agreement originator may earn a fee or commission through the home equity sharing agreement originator's best efforts to obtain a home equity sharing agreement even though no home equity sharing agreement is actually obtained from the homeowner;
Solicit, advertise, or enter into a contract with specific home equity sharing agreement terms unless the terms are generally available at the time of soliciting, advertising, or contracting;
Fail to make disclosures to applicants as required by this chapter and any other applicable state or federal law;
Make, in any manner, any false or deceptive statement or representation with regard to the costs or other terms or conditions of a home equity sharing agreement or engage in bait and switch advertising;
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;
Advertise, print, display, publish, distribute, or broadcast or cause or permit to be advertised, printed, displayed, published, distributed, or broadcast, in any manner whatsoever, any statement or representation with regard to the terms and conditions of home equity sharing agreements that is false, misleading, or deceptive;
Make any payment, directly or indirectly, to any appraiser of a property for the purpose of influencing the independent judgment of the appraiser with respect to the value of the property;
Obtain at the time of closing a waiver or release of future claims for damages or penalties provided by law, including a waiver of the provisions of this chapter;
Violate any applicable state or federal law relating to the activities governed by this chapter; or
Engage in any device, subterfuge, or pretense to evade the requirements of this chapter including, but not limited to, making, offering, or assisting a homeowner to obtain a home equity sharing agreement with a greater cost than is permitted by this chapter.
The director or authorized assistants may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed documents, records, or evidence are located, or in Thurston county. The application must:
State that an order is sought under this section;
Adequately specify the documents, records, evidence, or testimony; and
Include a declaration made under oath that an investigation is being conducted for a lawfully authorized purpose related to an investigation within the department's authority and that the subpoenaed documents, records, evidence, or testimony are reasonably related to an investigation within the department's authority.
When an application under this section is made to the satisfaction of the court, the court must issue an order approving the subpoena. An order under this subsection constitutes authority of law for the agency to subpoena the documents, records, evidence, or testimony.
The director or authorized assistants may seek approval and a court may issue an order under this section without prior notice to any person, including the person to whom the subpoena is directed and the person who is the subject of an investigation. An application for court approval is subject to the fee and process set forth in RCW 36.18.012(3).
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 designees, investigate or examine the home equity sharing agreements and business and, wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of every licensee and of every person subject to this chapter, whether the person acts or claims to act as principal or agent, or under or without the authority of this chapter. The director or designated representative:
Must have free access to the employees, offices, and places of business, books, accounts, papers, documents, other information, records, files, safes, and vaults of all such persons during normal business hours;
May require the attendance of and examine under oath all persons whose testimony may be required about the home equity sharing agreements 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;
May require by directive, subpoena, or any other lawful means 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 of such original books, accounts, papers, records, files, or other information;
May issue a subpoena or subpoena duces tecum requiring attendance by any person identified in this section or compelling production of any books, accounts, papers, records, files, or other documents or information identified in this section.
The director must make such periodic examinations of the affairs, business, office, and records of each licensee as determined by rule.
Every licensee examined or investigated by the director or the director's designee must pay to the director the cost of the examination or investigation of each licensed place of business as determined by rule by the director.
In order to carry out the purposes of this section, the director may:
Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;
Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate the licensee, individual, or person subject to this chapter;
Accept and rely on examination or investigation reports made by other government officials, within or without this state;
Accept audit reports made by an independent certified public accountant for the licensee, individual, or person subject to this chapter in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the director; or
Assess the licensee, individual, or person subject to this chapter the cost of the services in (a) of this subsection.
The licensee shall keep and use in the business such books, accounts, 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, records, papers, documents, files, and other information wherever located. Every licensee shall preserve the books, accounts, records, papers, documents, files, and other information relevant to a home equity sharing agreement for at least three years after making the final entry on any home equity sharing agreement. 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 require concerning the business and operations of each licensed place of business conducted 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 $50 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.
The director has the power, and broad administrative discretion, to administer and interpret this chapter to facilitate the delivery of home equity sharing agreement services to the citizens of this state by persons 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 home equity sharing agreements governed by this chapter.
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.
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.
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.
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 is the person's duty to perform under this chapter and for which no penalty has been prescribed for failure to do so, is guilty of a gross misdemeanor.
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 the director's agent.
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.
The director or designated persons may, at their 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 is 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.
The director may recover the state's costs and expenses for prosecuting violations of this chapter including staff time spent preparing for and attending administrative hearings and reasonable attorneys' fees unless, after a hearing, the director determines no violation occurred.
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. A 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.