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S1339.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE - Amends existing law to provide that the commission of certain
felonies may disqualify persons from licensure as a real estate broker.
01/30 Senate intro - 1st rdg - to printing
01/31 Rpt prt - to Com/HuRes
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1339
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO REAL ESTATE BROKERS; AMENDING SECTION 54-2012, IDAHO CODE, TO
3 DELETE A CODE REFERENCE, TO PROVIDE THAT THE COMMISSION OF CERTAIN FELO-
4 NIES MAY DISQUALIFY PERSONS FROM LICENSURE AND TO PROVIDE CORRECT TERMI-
5 NOLOGY; AMENDING SECTIONS 54-2015 AND 54-2017, IDAHO CODE, TO PROVIDE COR-
6 RECT CODE REFERENCES; AMENDING SECTION 54-2026, IDAHO CODE, TO PROVIDE
7 CORRECT CODE REFERENCES AND TO MAKE A TECHNICAL CORRECTION; AND AMENDING
8 SECTION 54-2033, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 54-2012, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 54-2012. MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE.
13 (1) Requirements for all individual primary licenses. Unless a qualification
14 is waived or modified by the commission for good cause and upon special con-
15 sideration, and except as provided in section 54-2015, Idaho Code, each person
16 seeking a primary Idaho real estate license as a salesperson, associate broker
17 or designated broker shall meet all of the following minimum qualifications:
18 (a) Be an individual;
19 (b) Be eighteen (18) years of age or older;
20 (c) Furnish satisfactory proof that the applicant graduated from an
21 accredited high school or its equivalent or holds a certificate of general
22 education;
23 (d) Not have had a real estate or other professional or occupational
24 license revoked, suspended, or surrendered, or the renewal refused, for a
25 disciplinary violation involving fraud, misrepresentation or dishonest or
26 dishonorable dealing, in Idaho or any other jurisdiction, within five (5)
27 years immediately prior to the date the application for license is submit-
28 ted to the commission;
29 (e) Not have been convicted, issued any fine, placed on probation,
30 received a withheld judgment or completed any sentence of confinement for
31 or on account of any felony, or any misdemeanor involving fraud, misrepre-
32 sentation or dishonest or dishonorable dealing, in a state or federal
33 court, within five (5) years immediately prior to the date the application
34 for license is submitted to the commission;
35 (f) Not have been convicted, issued any fine, placed on probation,
36 received a withheld judgment or completed any sentence of confinement for
37 or on account of any felony in a state or federal court, provided:
38 (i) If the felony was not an offense involving actual or threatened
39 violence against any person, including any offense specified in sec-
40 tion 19-5307(2), Idaho Code, or any offense committed in another
41 state, territory, commonwealth or other jurisdiction of the United
42 States that is substantially similar to an offense specified in sec-
43 tion 19-5307(2), Idaho Code, and at least five (5) years have passed
2
1 since the date the applicant was convicted, issued a fine, placed on
2 probation, received a withheld judgment or completed any sentence of
3 confinement, whichever is later, the qualification shall be deemed
4 satisfied; and
5 (ii) If the felony was an offense involving actual or threatened
6 violence against any person, including any offense specified in sec-
7 tion 19-5307(2), Idaho Code, or any offense committed in another
8 state, territory, commonwealth or other jurisdiction of the United
9 States that is substantially similar to an offense specified in sec-
10 tion 19-5307(2), Idaho Code, the applicant shall not qualify for
11 licensure; provided however, that after a period of at least five (5)
12 years from the date the applicant was convicted, issued a fine,
13 placed on probation, received a withheld judgment or completed any
14 sentence of confinement, whichever is later, the applicant may peti-
15 tion the commission for a hearing to determine whether the applicant
16 presents a risk to the public safety. Upon clear and convincing evi-
17 dence that the applicant is not at risk to commit a new violation for
18 any violent offense, the commission shall find that the qualification
19 is satisfied.
20 (g) Complete all prelicense education requirements as provided for in
21 section 54-2022, Idaho Code, for a salesperson's or broker's license;
22 (gh) Pass the commission-approved real estate licensing exam for a sales
23 or broker license in the time and manner stated in section 54-2014, Idaho
24 Code, and pay the required exam fees;
25 (hi) Be fingerprinted by an authorized law enforcement agency, and file
26 these fingerprints with the commission for the purpose of determining
27 whether the qualifications for licensure are fulfilled; the fingerprints
28 will be forwarded to the federal bureau of investigation or the Idaho
29 department of law enforcement; all fees charged by the commission and the
30 law enforcement agency for fingerprint services shall be paid by the
31 applicant;
32 (ij) Sign and file with the commission an irrevocable consent to service,
33 appointing the commission's executive director to act as the licensee's
34 agent upon whom all judicial and other process or legal notices directed
35 to such licensee may be served, and consenting that any lawful process
36 against the licensee that is served upon the executive director shall be
37 of the same legal force and validity as if served upon the licensee and
38 that the authority shall continue in force so long as any liability
39 remains outstanding in this state. Upon receipt of any such process or
40 notice, the executive director shall immediately mail a copy of the same
41 by certified mail to the last known business address of the licensee. All
42 licensees shall provide the commission a full and current mailing address
43 and shall immediately notify the commission in writing of any change in
44 mailing address;
45 (jk) If licensing as an active salesperson or associate broker, provide
46 the name and physical address of the main business location of the desig-
47 nated broker with whom the applicant will be licensed, and the signature
48 of that broker; or, if licensing as a designated broker, provide the name
49 and physical address of the main business location. No Idaho sales associ-
50 ate may be licensed under or associated with more than one (1) Idaho bro-
51 ker at a time;
52 (kl) Submit a properly completed application and all license, application
53 and other fees listed in section 54-2020, Idaho Code, or as otherwise
54 required by statute or rule; and
55 (lm) Provide satisfactory proof of meeting the mandatory errors and omis-
3
1 sions insurance requirement for real estate licensees, as stated in sec-
2 tion 54-2013, Idaho Code.
3 (2) Additional requirements for broker and associate broker licenses.
4 Applicants seeking a primary Idaho license as a broker or associate broker
5 shall meet the additional following qualifications:
6 (a) Provide satisfactory evidence of having been actively engaged, on a
7 full-time basis, for two (2) years as a licensed real estate salesperson
8 within five (5) years immediately prior to the date upon which the indi-
9 vidual makes application. Such evidence shall demonstrate the
10 productiveness of the licensed activity to have been generally commensu-
11 rate with that of other licensees practicing in a similar capacity. List-
12 ings, sales, options or other licensed activities may be considered by the
13 commission in determining whether the applicant meets this qualification.
14 (i) A broker or associate broker applicant may be required to fur-
15 nish a report of listings and sales accomplished by the applicant
16 during two (2) or more years within the last five (5) years of licen-
17 sure immediately prior to the application date;
18 (ii) This report shall be certified as correct by the broker or bro-
19 kers with whom the applicant has been associated;
20 (iii) The broker experience requirement may be modified or reduced,
21 in whole or in part, at the discretion of the commission, based upon
22 the applicant's educational background, or experience in related or
23 affiliated business activities;
24 (iv) The commission in its discretion may make such additional
25 investigation and inquiry relative to the applicant as it shall deem
26 advisable;
27 (b) Designate a physical office location and a business name. The commis-
28 sion may refuse to issue a license to any person applicant if the business
29 name is the same as that of any person whose license has been suspended or
30 revoked or is so similar as to be easily confused with another licensee's
31 name by members of the general public. However, nothing in this subsection
32 shall restrict an individual from obtaining a license in his or her own
33 legal name.
34 (c) If currently licensed in Idaho as a salesperson and applying for a
35 license as an Idaho broker or associate broker, the individual shall sub-
36 mit a new fingerprint card for processing with the application and pay
37 associated fees.
38 SECTION 2. That Section 54-2015, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 54-2015. INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE OR JURISDICTION
41 SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
42 ely licensed as a real estate broker or salesperson in another state or juris-
43 diction at the time of application for a primary Idaho real estate license
44 shall meet all qualifications listed in section 54-2012, Idaho Code, for the
45 type of license sought, except that the applicant shall not be required to
46 furnish proof of the educational prerequisites described in subsection (1)(fg)
47 of section 54-2012, Idaho Code. In addition, such applicant shall provide a
48 current, certified license history from the other licensing state or jurisdic-
49 tion, which history shall indicate any disciplinary action taken against the
50 applicant's license by the other licensing state or jurisdiction, and the sta-
51 tus and standing of the applicant's license in the other state or jurisdic-
52 tion.
53 (2) An individual who holds an active license in good standing in another
4
1 state or jurisdiction may, upon written request from the commission, obtain a
2 certificate of waiver of the national portion of the exam required for Idaho
3 licensure. A request for waiver shall indicate the individual's mailing
4 address to which the commission is to deliver the certificate of waiver. The
5 certificate of waiver shall be submitted with the application for exam as pro-
6 vided in subsection (4) of section 54-2014, Idaho Code.
7 (3) An individual who is currently and actively licensed in another state
8 or jurisdiction that administers a real estate exam may be issued a primary
9 Idaho license without further exam or proof of educational prerequisites pur-
10 suant to written agreement between Idaho and the other state or jurisdiction,
11 provided that such other state or jurisdiction allows the issuance of real
12 estate licenses in substantially the same manner as set forth in this subsec-
13 tion.
14 SECTION 3. That Section 54-2017, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 54-2017. RECIPROCAL IDAHO LICENSES. The commission may issue a reciprocal
17 Idaho real estate license to a qualified person who holds an active primary
18 license in another state or jurisdiction if a written reciprocal licensing
19 agreement exists between Idaho and the other state or jurisdiction. Each
20 reciprocal license issued shall be limited to and governed by the terms of the
21 applicable written agreement between Idaho and the other jurisdiction.
22 (1) Any reciprocal licensing agreement with Idaho shall require that the
23 person seeking an Idaho reciprocal license make proper application, pay all
24 required fees, and:
25 (a) Be currently and actively licensed as a designated broker in the
26 applicant's primary state or jurisdiction, or be licensed under a desig-
27 nated broker who holds a current, active Idaho reciprocal license;
28 (b) Provide satisfactory proof of holding an active license, in good
29 standing, as defined in the agreement, at the time of application;
30 (c) File an irrevocable consent to service as described in section
31 54-2012(1)(ij), Idaho Code, on the form approved and furnished by the
32 Idaho real estate commission;
33 (d) Provide satisfactory proof of errors and omissions insurance covering
34 the applicant's licensed activities in Idaho; and that
35 (2) Whenever a designated broker who holds a reciprocal Idaho license
36 ceases to hold a current active license in the primary licensing jurisdiction,
37 the Idaho reciprocal license of that broker, and the licenses of all persons
38 licensed under that broker, shall immediately be made inactive without further
39 process. If a salesperson who holds a reciprocal Idaho license ceases to hold
40 a current, active license in the primary licensing jurisdiction, that person's
41 Idaho reciprocal sales license shall immediately be made inactive without fur-
42 ther process.
43 SECTION 4. That Section 54-2026, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 54-2026. CERTIFICATION OF COURSE PROVIDERS. (1) Degree-granting institu-
46 tions. Degree-granting, accredited colleges and universities in any state or
47 jurisdiction shall be deemed to be approved course providers in Idaho. How-
48 ever, course content must still be approved for the real estate education
49 course to receive credit toward prelicense or continuing education licensing
50 requirements in Idaho.
51 (2) Other course providers. All other course providers desiring to offer
5
1 real estate courses for credit toward Idaho prelicense or continuing education
2 requirements must first meet the following qualifications and receive certifi-
3 cation. Each applicant seeking certification as a course provider shall comply
4 with the following:
5 (a) File an application for certification in the form and manner required
6 by the commission, along with proper fees, at least two (2) months prior
7 to contemplated date of opening or first accredited course offering;
8 (b) Designate a "director" or "individual in charge," who shall be
9 responsible for the course provider's operation and its real estate
10 courses, and with whom the commission may communicate. Unless this
11 requirement is waived upon special review of the commission in the manner
12 stated below, the individual in charge must not have had a real estate or
13 other professional or occupational license suspended or revoked for disci-
14 plinary reasons or have been refused a renewal of a license issued by the
15 state of Idaho or any other state or jurisdiction. The designated individ-
16 ual in charge must not have been convicted, issued any fine, placed on
17 probation, received a withheld judgment, or completed any sentence of con-
18 finement for or on account of any felony or a misdemeanor involving fraud,
19 misrepresentation, or dishonest or dishonorable dealing in a court of
20 proper jurisdiction or any felony.
21 (c) File a properly executed "irrevocable consent to service of process"
22 in the manner and form prescribed by the commission and in substantial
23 accordance with section 54-2012(1)(ij), Idaho Code. The commission, in its
24 discretion, may make such additional investigation and inquiry relative to
25 the applicant for provider certification as it deems advisable and, if
26 good cause exists, may deny or accept the application for certification.
27 SECTION 5. That Section 54-2033, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 54-2033. INSTRUCTOR QUALIFICATIONS. (1) Qualified instructors at degree-
30 granting institutions. A qualified or full-time instructor or professor of an
31 accredited college or university in any state or jurisdiction and who teaches
32 real estate related courses is deemed to be an approved instructor of such
33 courses, in Idaho, for the purposes of this chapter.
34 (2) Other instructor applicants. All other individuals wishing to teach
35 real estate courses for credit toward Idaho prelicense or continuing education
36 requirements must first meet the following additional qualifications and
37 receive separate certification for each course to be taught:
38 (a) Unless this requirement is waived upon special review of the commis-
39 sion in the manner stated below, no individual instructor seeking certifi-
40 cation may have had a real estate or other professional or occupational
41 license suspended or revoked for disciplinary reasons or have been refused
42 a renewal of a license issued by the state of Idaho or any other state or
43 jurisdiction. Further, the individual may not have been convicted, issued
44 any fine, placed on probation, received a withheld judgment, or completed
45 any sentence of confinement for or on account of any felony, or any misde-
46 meanor involving fraud, misrepresentation, or dishonest or dishonorable
47 dealing, in a court of proper jurisdiction.
48 (b) Each applicant for certification shall also:
49 (i) Submit a properly completed application for instructor certifi-
50 cation in the form and manner required by the commission, with all
51 proper fees;
52 (ii) File a properly executed "irrevocable consent to service of
53 process" in the manner and form prescribed by the commission and
6
1 according to section 54-2012(1)(ij), Idaho Code;
2 (iii) Qualify as at least one (1) of the following:
3 1. An attorney at law actively licensed in any state or juris-
4 diction with at least five (5) years of active practice in the
5 areas of study proposed to be taught, and who has also success-
6 fully completed a commission-approved instructor training course
7 or procedure, including a student teaching period;
8 2. An individual currently approved or certified and in good
9 standing as a real estate instructor for the same or similar
10 course material in any other state or jurisdiction;
11 3. An individual who is appointed to teach a nationally recog-
12 nized real estate course which is generally accepted in other
13 states or jurisdictions; or
14 4. An individual with at least five (5) years active real
15 estate-related experience who has also successfully completed a
16 commission-approved instructor training procedure, including a
17 student teaching period.
STATEMENT OF PURPOSE
RS 11456 C#2
The Commission is requesting authority to review applications of
felons convicted of violent offenses prior to issuing a real estate
license. The current 5-year waiting period for all convicted felons
does not allow individualized consideration of potentially dangerous
convicts and is insufficient to protect the public safety. With this
bill, the violent offenders will be given an opportunity to address
the Commission to demonstrate, affirmatively, that he or she does
not present a significant risk of danger to the public safety.
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 M. Jones
Agency: Real Estate Commission
Phone: 334-3285 ext. 232
Statement of Purpose/Fiscal Impact S 1339