SENATE BILL NO. 1241

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Bill Status



S1241.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE BROKERS - Amends existing law relating to licensure of real
estate brokers to specify continuing education requirements; and to define
additional grounds for withdrawal or cancellation of provider certification
and of instructor's certification.
                                                                        
01/28    Senate intro - 1st rdg - to printing
01/29    Rpt prt - to Com/HuRes
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
      McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Hill, Richardson
    Floor Sponsor - Goedde
    Title apvd - to House
02/25    House intro - 1st rdg - to Bus
03/04    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 66-0-4
      AYES -- Andersen, Barraclough, Bauer, Bayer, Bedke, Bell, Black,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
      Jones, Kellogg, Kulczyk, Langford, Langhorst, Martinez, McGeachin,
      McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
      Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
      Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Barrett, Lake, Wills, Wood
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
03/10    To enrol
03/11    Rpt enrol - Pres signed
03/12    Sp signed
03/15    To Governor
03/19    Governor signed
         Session Law Chapter 120
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1241
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LICENSURE OF REAL ESTATE BROKERS AND SALESPERSONS;  AMENDING  SEC-
  3        TION  54-2018,  IDAHO  CODE,  TO SPECIFY REQUIREMENTS FOR LICENSE RENEWAL;
  4        AMENDING SECTION 54-2023, IDAHO  CODE,  TO  SPECIFY  CONTINUING  EDUCATION
  5        REQUIREMENTS;  AMENDING  SECTION 54-2026, IDAHO CODE, TO DEFINE ADDITIONAL
  6        GROUNDS FOR WITHDRAWAL OR  CANCELLATION  OF  PROVIDER  CERTIFICATION;  AND
  7        AMENDING  SECTION  54-2033,  IDAHO  CODE, TO DEFINE ADDITIONAL GROUNDS FOR
  8        WITHDRAWAL OR CANCELLATION OF INSTRUCTOR'S CERTIFICATION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 54-2018, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        54-2018.  LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
 13    -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
 14    license  shall  be  for  a  period  of  one (1) year plus the months up to and
 15    including the next birth date of the licensee, not to exceed a period  of  two
 16    (2)  years,  and  shall  expire on a date to coincide with the last day of the
 17    month of the birth date of the licensee. Corporations,  partnerships,  limited
 18    liability  companies  and  other entities defined as "persons" in this chapter
 19    shall have established as the equivalent of a birth date, the  birth  date  of
 20    its  designated  broker. Licensed branch offices shall have established as the
 21    equivalent of a birth date, the birth date of the real estate designated  bro-
 22    ker establishing for the branch office.
 23        (2)  License renewal. Each license shall be renewable for a period of  two
 24    (2)  years  by timely submitting a completed application. Applications must be
 25    received at the commission office on or before 5 p.m. of the expiration date.
 26        (a)  If renewing an active license, the application shall include:
 27             (i)   Evidence of having Certification that the applicant has met the
 28             commission's continuing education requirements as set forth  in  sec-
 29             tion 54-2023, Idaho Code;
 30             (ii)  Proof  of  meeting Certification that the applicant has met the
 31             mandatory errors and omissions insurance requirement for real  estate
 32             licensees as set forth in section 54-2013, Idaho Code; and
 33             (iii) Payment  of  all renewal fees established by this chapter or by
 34             the commission.
 35        (b)  If renewing an inactive license, the application shall  include  pay-
 36        ment  of all renewal fees established by this chapter or by the commission
 37        by rule.
 38        (3)  Late renewal. If the licensee fails to submit a completed application
 39    for renewal or pay the renewal fee on or before the expiration date, the  com-
 40    mission  may accept a later application or payment of the fee, subject to such
 41    conditions as the commission may require including, but not  limited  to,  the
 42    assessment  of  a  late fee; provided that between the license expiration date
 43    and the date of renewal of the license, the rights of the licensee under  such
                                                                        
                                           2
                                                                        
  1    license  shall  be  expired,  and during such period of expiration it shall be
  2    unlawful for any licensee to do or attempt to offer to do any of the  acts  of
  3    the kind and nature described in the definitions of real estate broker or real
  4    estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
  5    sation  of  any  kind  or  expectation thereof. An expired license that is not
  6    renewed within one (1) year of the expiration date shall be automatically ter-
  7    minated by the commission and may not be renewed.
  8        (4)  Active and inactive license status. A licensee who  is  a  designated
  9    broker  or associated with a designated broker shall hold an active license. A
 10    licensee who has paid all applicable fees, who is not associated with a desig-
 11    nated broker and who holds a current license that is not revoked, suspended or
 12    terminated shall hold his license on inactive status. A  licensee  seeking  to
 13    change  from  active  license status to inactive license status shall have the
 14    broker submit a change of status application to the commission in the form and
 15    manner approved by the commission. During the period that his license is inac-
 16    tive, the licensee shall not engage in the business or act in the capacity  of
 17    real  estate  broker,  associate  broker  or salesperson. However, an inactive
 18    licensee may receive a referral fee for any referral made  during  the  period
 19    his license was active. A licensee may reactivate an inactive license by meet-
 20    ing each of the following:
 21        (a)  If  activating  as  a  sales associate, associating with a designated
 22        Idaho broker and having the broker submit an application in the  form  and
 23        manner approved by the commission;
 24        (b)  If  activating  as a designated broker, establishing an office in the
 25        manner required by this chapter and submitting an application in the  form
 26        and manner approved by the commission;
 27        (c)  Paying the required fee;
 28        (d)  Providing  evidence  of  having Obtaining and maintaining a policy of
 29        errors or and omissions insurance in the manner  as  required  by  section
 30        54-2013,  Idaho  Code,  and in accordance with the rules of the commission
 31        and certifying the same; and
 32        (e)  Providing evidence of having sSuccessfully completed  the  completing
 33        any  continuing  education requirements, as prescribed in section 54-2023,
 34        Idaho Code, and certifying the same for the current license period. A con-
 35        tinuing education course taken to make up a deficiency of the requirements
 36        from the previous renewal period may be applied toward the continuing edu-
 37        cation requirements for the current period.
 38        (5)  Change in  personal  information.  An  individual  licensee,  whether
 39    active  or  inactive,  shall  provide written notice to the commission, in the
 40    form and manner approved by the commission, of  any  change  of  his  personal
 41    name, address of personal residence or personal telephone number. Notice shall
 42    be  provided  within  ten (10) days of the change. If the licensee has changed
 43    his personal name, he shall also submit legal proof of the change and the  fee
 44    for  issuing  a  new  license certificate and, if an active licensee, he shall
 45    have the broker submit the written notice of change to  the  commission.  Upon
 46    receipt  of  the new license certificate or upon its effective date, whichever
 47    is later, the broker shall remove from public  view  any  license  certificate
 48    bearing the licensee's former name.
 49        (6)  Signature required. No license shall be valid unless the license cer-
 50    tificate is signed by the licensee.
 51        (7)  Effective dates. A request for licensure or for license changes shall
 52    become  effective when the properly completed application, attachments and any
 53    required fee are received at and approved by the  commission.  An  application
 54    that  is  incomplete or lacking proper fees shall be returned to the applicant
 55    and no license shall be issued until a completed application and  proper  fees
                                                                        
                                           3
                                                                        
  1    are received at and actually approved by the commission.
  2        (8)  Fees  nonrefundable. No licensee shall be entitled to a refund of any
  3    fee after the license or license change has become effective.
                                                                        
  4        SECTION 2.  That Section 54-2023, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
                                                                        
  6        54-2023.  CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
  7    of  an  Idaho  real  estate  license on active status, and each Idaho licensee
  8    seeking to change from inactive to active license status, shall submit  satis-
  9    factory  proof to the commission of having successfully completed the required
 10    number of classroom hours of commission-approved or certified continuing  edu-
 11    cation  coursework  as  provided  in  this  section,  plus one (1) commission-
 12    approved core course. Failure to provide proof of meeting meet the  continuing
 13    education  requirements as set forth in this section constitutes an incomplete
 14    application for a renewal of an active license or for a change in license sta-
 15    tus from inactive to active, and, as such, constitutes grounds for  denial  of
 16    the application.
 17        (1)  Required  number of classroom hours. The required number of classroom
 18    hours are is as follows:
 19        (a)  Renewing active license on active  status.  A  licensee  renewing  on
 20        active  status effective prior to July 1, 2003, must successfully complete
 21        at least eight (8) classroom hours of continuing education, plus  one  (1)
 22        commission-approved  core course, on or before the current license expira-
 23        tion date. A licensee renewing on active status effective on or after July
 24        1, 2003, must successfully complete at least sixteen (16) classroom  hours
 25        of  continuing education, plus one (1) commission-approved core course, on
 26        or before the current license expiration date.
 27        (b)  Change from inactive to active. A licensee changing from inactive  to
 28        active  license  status effective prior to July 1, 2003, must successfully
 29        meet the continuing education requirements for an active license  for  the
 30        current  licensing period. If the inactive licensee renewed his license on
 31        or after July 1, 2003, he shall complete sixteen (16) classroom  hours  of
 32        continuing education, plus one (1) commission-approved core course, before
 33        he can change to active license status. If the inactive licensee is within
 34        a  license  renewal period that began prior to July 1, 2003, he shall com-
 35        plete at least eight (8) classroom hours of  continuing  education  during
 36        the  current inactive license period. A licensee changing from inactive to
 37        active status effective on or after July 1, 2003, must  successfully  com-
 38        plete at least sixteen (16) classroom hours of continuing education during
 39        the  current inactive license period plus one (1) commission-approved core
 40        course, before he can change to active license  status.  If  the  inactive
 41        licensee  is  within his initial licensing period, no continuing education
 42        is required to change to active license status.
 43        (2)  No duplicate credit. No  licensee  may  obtain  continuing  education
 44    credit for completing:
 45        (a)  Any  core course curriculum for which he has previously received con-
 46        tinuing education credit; or
 47        (b)  Any course curriculum for which he has received continuing  education
 48        credit in the same license period.
 49        (3)  Excess credits. The classroom hours shall apply to the license period
 50    in which such course is completed; hours completed in excess of those required
 51    for the license period shall not accumulate or be credited for the purposes of
 52    subsequent license renewal periods.
 53        (4)  Commission-ordered  education.  No  licensee  shall obtain continuing
                                                                        
                                           4
                                                                        
  1    education credit for education ordered by the commission as part of  a  disci-
  2    plinary action.
  3        (5)  Obtaining  continuing  education  classroom hours. In order to obtain
  4    continuing  education classroom hours, a licensee may:
  5        (a)  Successfully  complete  a  commission-approved  continuing  education
  6        course;
  7        (b)  Successfully  complete  a  commission-approved  continuing  education
  8        challenge exam;
  9        (c)  Attend an entire regularly-scheduled meeting of the  commission.  The
 10        licensee shall provide at least seven (7) days' advance notice to the edu-
 11        cation  section  of  the  commission  of his intent to attend the meeting.
 12        Failure to provide advance notice shall result in no continuing  education
 13        hours being credited. A maximum of three (3) hours for this activity shall
 14        be credited for any one (1) meeting in any one (1) license period;
 15        (d)  Successfully complete a commission-approved broker prelicense course,
 16        or  a commission-approved continuing education challenge exam, in advanced
 17        real estate study. Continuing education credit may be obtained for  retak-
 18        ing  the same broker prelicense course or challenge exam only if completed
 19        after five (5) years of completing the previous course or challenge  exam;
 20        or
 21        (e)  Provide  to the commission a transcript or course completion certifi-
 22        cate of successful completion of any of the following courses,  in  accor-
 23        dance  with  all of the continuing education requirements of this section,
 24        without  commission  preapproval  of  the   curriculum,   instructors   or
 25        providers:
 26             (i)   Courses  developed  by national professional organizations that
 27             are required in  order  to  earn  professional  designations  from  a
 28             national  organization  in  specialized areas of licensed real estate
 29             practice; and
 30             (ii)  Courses approved by and offered in satisfaction of another pro-
 31             fessional or occupational licensing  authority's  education  require-
 32             ments,  if within the approved topic areas established by the commis-
 33             sion.
 34        (f)  If a certified course instructor, teach a live course for which  con-
 35        tinuing education credit may be obtained. Credits shall be granted for the
 36        number of classroom hours taught.
 37        (6)  Provisional  license -- Extension of time. A three-month extension of
 38    time for completing the education requirements may be obtained  by  submitting
 39    with  the  renewal  application, or application to activate, satisfactory evi-
 40    dence showing that the applicant was unable  to  comply  with  such  education
 41    requirements. Such evidence may be:
 42        (a)  Bona   fide  hardship  preventing  completion  of  the  reinstatement
 43        requirements of an inactive license;
 44        (b)  Health reasons preventing attendance or completion;
 45        (c)  Active duty in the military service with assignment  to  a  permanent
 46        duty  station outside of the state during the last twelve (12) months of a
 47        license period; or
 48        (d)  Other compelling cause beyond the  control  of  the  applicant  while
 49        engaged in the real estate business.
 50    If  such  an  extension  is  granted, the licensee shall receive a provisional
 51    license for a period of time not to exceed three (3) months. No further exten-
 52    sion of time may be granted. A license issued or renewed after an extension of
 53    time has been granted shall retain the original license expiration date. Fail-
 54    ure to satisfy the continuing education requirement within  the  time  granted
 55    shall result in the automatic inactivation of the license.
                                                                        
                                           5
                                                                        
  1        SECTION  3.  That  Section 54-2026, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        54-2026.  CERTIFICATION OF COURSE PROVIDERS. (1) Degree-granting  institu-
  4    tions.  Degree-granting,  accredited colleges and universities in any state or
  5    jurisdiction shall be deemed to be approved course providers  in  Idaho.  How-
  6    ever,  course  content  must  still  be approved for the real estate education
  7    course to receive credit toward prelicense or continuing  education  licensing
  8    requirements in Idaho.
  9        (2)  Other  course providers. All other course providers desiring to offer
 10    real estate courses for credit toward Idaho prelicense or continuing education
 11    requirements must first meet the following qualifications and receive certifi-
 12    cation. Each applicant seeking certification as a course provider shall comply
 13    with the following:
 14        (a)  File an application for certification in the form and manner required
 15        by the commission, along with proper fees, at least two (2)  months  prior
 16        to contemplated date of opening or first accredited course offering;
 17        (b)  Designate  a  "director"  or  "individual  in  charge,"  who shall be
 18        responsible for the  course  provider's  operation  and  its  real  estate
 19        courses,  and  with  whom  the  commission  may  communicate.  Unless this
 20        requirement is waived upon special review of the commission in the  manner
 21        stated  below, the individual in charge must not have had a real estate or
 22        other professional or occupational license suspended or revoked for disci-
 23        plinary reasons or have been refused a renewal of a license issued by  the
 24        state of Idaho or any other state or jurisdiction. The designated individ-
 25        ual  in  charge  must  not have been convicted, issued any fine, placed on
 26        probation, received a withheld judgment, or completed any sentence of con-
 27        finement for or on account of any felony or a misdemeanor involving fraud,
 28        misrepresentation, or dishonest or dishonorable  dealing  in  a  court  of
 29        proper jurisdiction. The failure of the provider to have in place a desig-
 30        nated  individual  meeting  the qualifications required by this subsection
 31        shall be grounds for the commission to withdraw or cancel  the  provider's
 32        certificate as provided in section 54-2025(3), Idaho Code;
 33        (c)  File  a properly executed "irrevocable consent to service of process"
 34        in the manner and form prescribed by the  commission  and  in  substantial
 35        accordance  with section 54-2012(1)(j), Idaho Code. The commission, in its
 36        discretion, may make such additional investigation and inquiry relative to
 37        the applicant for provider certification as it  deems  advisable  and,  if
 38        good cause exists, may deny or accept the application for certification.
                                                                        
 39        SECTION  4.  That  Section 54-2033, Idaho Code, be, and the same is hereby
 40    amended to read as follows:
                                                                        
 41        54-2033.  INSTRUCTOR QUALIFICATIONS. (1) Qualified instructors at  degree-
 42    granting  institutions. A qualified or full-time instructor or professor of an
 43    accredited college or university in any state or jurisdiction and who  teaches
 44    real  estate-related  courses  is  deemed to be an approved instructor of such
 45    courses, in Idaho, for the purposes of this chapter.
 46        (2)  Other instructor applicants. All other individuals wishing  to  teach
 47    real estate courses for credit toward Idaho prelicense or continuing education
 48    requirements  must  first  meet  the  following  additional qualifications and
 49    receive separate certification for each course to be taught:
 50        (a)  Unless this requirement is waived upon special review of the  commis-
 51        sion in the manner stated below, no individual instructor seeking certifi-
 52        cation  may  have  had a real estate or other professional or occupational
                                                                        
                                           6
                                                                        
  1        license suspended or revoked  for    disciplinary  reasons  or  have  been
  2        refused  a  renewal of a license issued by the state of Idaho or any other
  3        state or jurisdiction. Further, the individual  may  not  have  been  con-
  4        victed,  issued  any  fine, placed on probation, received a withheld judg-
  5        ment, or completed any sentence of confinement for or on  account  of  any
  6        felony,  or any misdemeanor involving fraud, misrepresentation, or dishon-
  7        est or dishonorable dealing, in a court of proper jurisdiction. The  fail-
  8        ure  of  a certified instructor to maintain the qualifications required by
  9        this subsection shall be grounds for the commission to withdraw or  cancel
 10        the  instructor's  certificate  as  provided  in section 54-2025(3), Idaho
 11        Code.
 12        (b)  Each applicant for certification shall also:
 13             (i)   Submit a properly completed application for instructor certifi-
 14             cation in the form and manner required by the  commission,  with  all
 15             proper fees;
 16             (ii)  File  a  properly  executed  "irrevocable consent to service of
 17             process" in the manner and form  prescribed  by  the  commission  and
 18             according to section 54-2012(1)(j), Idaho Code;
 19             (iii) Qualify as at least one (1) of the following:
 20                  1.  An  attorney at law actively licensed in any state or juris-
 21                  diction with at least five (5) years of active practice  in  the
 22                  areas  of study proposed to be taught, and who has also success-
 23                  fully completed a commission-approved instructor training course
 24                  or procedure, including a student teaching period;
 25                  2.  An individual currently approved or certified  and  in  good
 26                  standing  as  a  real  estate instructor for the same or similar
 27                  course material in any other state or jurisdiction;
 28                  3.  An individual who is appointed to teach a nationally  recog-
 29                  nized  real  estate  course which is generally accepted in other
 30                  states or jurisdictions; or
 31                  4.  An individual with at  least  five  (5)  years  active  real
 32                  estate-related  experience who has also successfully completed a
 33                  commission-approved instructor training procedure,  including  a
 34                  student teaching period.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                           RS 13470C1
This year's "housekeeping bill" covers matters emerging from the
recent legislative and program development in the Continuing
Education arena.  These are:

a. Provide for Instructors to obtain continuing education credit
hours for the continuing education coursees they teach, (amending
Section 54-2023(5));
b. Codify existing rules concerning proof of compliance with
Continuing Education requirements (amending section 54-2018(2));
c. Correct latent ambiguity within the text of section 54-
2023(1)(b), (added last legislative session), to accurately reflect
legislative intent that the increased continuing education
requirement applies to an active license that is renewed after July
1, 2003; and 
d. Provide that an Instructor's application for re-certification
may be denied if the instructor-applicant fails to meet the
requirements of section 54-2033(2)(a) (pertaining to professional
discipline and criminal conduct).



                         FISCAL  IMPACT
None to the General Fund, as no general fund dollars are used by
IREC.

None to any political subdivisions, as IREC is funded primarily
from license fees.

None to the Agency.      


CONTACT   
Name:     Donna Jones
Agency:   Real Estate Commission
Phone:    334-3284  ext. 232

Statement of Purpose/Fiscal Impact                 S 1241