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S1340.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE - Amends existing law to revise continuing education
requirements for licensees seeking renewal of licenses and changes of
licenses from inactive to active status.
01/30 Senate intro - 1st rdg - to printing
01/31 Rpt prt - to Com/HuRes
02/13 Rpt out - rec d/p - to 2nd rdg
02/14 2nd rdg - to 3rd rdg
02/18 3rd rdg - PASSED - 30-2-3
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Frasure, Geddes,
Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, Little, Lodge, Marley,
Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner, Thorne,
Wheeler
NAYS -- Noh, Stennett
Absent and excused -- Dunklin, King-Barrutia, Williams
Floor Sponsor - Hill
Title apvd - to House
02/19 House intro - 1st rdg - to Bus
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 60-5-5
AYES -- Aikele, Barraclough, Bell, Black, Block, Boe, Bolz, Bradford,
Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal, Denney,
Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould,
Hadley, Hammond, Harwood, Henbest, Hornbeck, Jones, Kellogg(Duncan),
Kendell, Kunz, Lake, Loertscher, Mader, Martinez, McKague, Meyer,
Montgomery, Mortensen, Pearce, Pischner, Pomeroy, Raybould, Ridinger,
Roberts, Robison, Schaefer, Sellman, Shepherd, Smith(33), Smith(23),
Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young
NAYS -- Barrett, Jaquet, Langford, Moyle, Sali
Absent and excused -- Bedke, Bieter, Bruneel, Higgins, Mr. Speaker
Floor Sponsor - Gagner
Title apvd - to Senate
03/07 To enrol
03/08 Rpt enrol - Pres signed
03/11 Sp signed
03/12 To Governor
03/26 Governor signed
Session Law Chapter 280
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1340
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2004, IDAHO
3 CODE, TO DEFINE "CORE COURSE" AND TO PROVIDE CORRECT REFERENCES; AMENDING
4 SECTION 54-2023, IDAHO CODE, TO REVISE CONTINUING EDUCATION REQUIREMENTS
5 FOR LICENSEES SEEKING RENEWAL OF LICENSES AND CHANGES OF LICENSES FROM
6 INACTIVE TO ACTIVE STATUS AND TO MAKE A TECHNICAL CORRECTION; AND AMENDING
7 SECTION 54-2036, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY, TO PROVIDE
8 THAT EACH CONTINUING EDUCATION COURSE MUST CONTAIN AT LEAST TWO CLASSROOM
9 HOURS, TO PROVIDE FOR A CONTINUING EDUCATION COURSE EXAM, TO REMOVE A CODE
10 REFERENCE AND TO PROVIDE THAT THE COMMISSION SHALL ESTABLISH TOPICS FOR
11 COURSE CONTENT FOR PRELICENSE COURSES AND CONTINUING EDUCATION COURSES.
12 Be It Enacted by the Legislature of the State of Idaho:
13 SECTION 1. That Section 54-2004, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 54-2004. DEFINITIONS. As used in this chapter:
16 (1) "Associate broker" means an individual who has qualified personally
17 as a real estate broker in Idaho under this chapter, but is licensed under,
18 associated with and represents a designated broker in the performance of any
19 act described in subsection (256) of this section.
20 (2) "Branch office" means an office operated by a licensed real estate
21 broker or licensed legal business entity, separate and apart from the main
22 office. A branch office may be licensed or unlicensed, in accordance with this
23 chapter.
24 (3) "Brokerage agreement" means a written contract between a buyer,
25 seller, or both, and a real estate brokerage for agency representation in a
26 regulated real estate transaction.
27 (4) "Brokerage company" means a real estate business, whether a sole pro-
28 prietorship, a legal entity, or any other licensed person engaged in acts
29 requiring a real estate license in Idaho, and which is conducting or holding
30 itself out as conducting the business of real estate through a designated bro-
31 ker.
32 (5) "Business name" means the name that appears on the real estate
33 broker's license issued by the commission.
34 (6) "Business opportunity" means and includes an established business,
35 good will of an established business, or any interest therein, or any one (1)
36 or combination thereof, where a sale or transfer of an interest in land
37 including, but not limited to, an assignment of a lease, is involved in the
38 transaction.
39 (7) "Commission" means the Idaho real estate commission, unless the con-
40 text clearly indicates a different meaning.
41 (8) "Convicted" means a plea of nolo contendere or guilty, a jury verdict
42 of guilty or a court decision of guilt whether or not a judgment or sentence
43 has been imposed, withheld or suspended.
2
1 (9) "Cooperative sale" means a transaction involving two (2) or more bro-
2 kers.
3 (10) "Core course" means, in reference to a real estate course offering, a
4 course containing curriculum, identified by the commission, that stresses cur-
5 rent trends in real estate practices and changes in laws in real estate
6 related industries. A core course must contain no more than four (4) classroom
7 hours of instruction.
8 (11) "Council" means the Idaho real estate education council.
9 (112) "Dealer in options" means any person, firm, partnership, association
10 or corporation who shall directly or indirectly take, obtain or use options to
11 purchase, exchange, lease option or lease purchase real property or any inter-
12 est therein for another or others whether or not the options shall be in his
13 or its name and whether or not title to the property shall pass through the
14 name of the person, firm, partnership, association or corporation in connec-
15 tion with the purchase, sale, exchange, lease option or lease purchase of the
16 real property, or interest therein.
17 (123) "Designated broker" means an individual who is licensed as a real
18 estate broker in Idaho and who is designated by the brokerage company to be
19 responsible for the supervision of the brokerage company and the activities of
20 any associated licensees in accordance with this chapter.
21 (134) "Distance learning course" means, in relation to a real estate
22 course offering, a real estate course that is delivered, not as a live course,
23 but through a medium in which the instructor and student are separated by dis-
24 tance or time.
25 (145) "Double contract" means two (2) or more written or unwritten con-
26 tracts of sale, purchase and sale agreements, loan applications, or any other
27 agreements, one (1) of which is not made known to the prospective loan under-
28 writer or the loan guarantor, to enable the buyer to obtain a larger loan than
29 the true sales price would allow, or to enable the buyer to qualify for a loan
30 which he or she otherwise could not obtain. An agreement or loan application
31 is not made known unless it is disclosed in writing to the prospective loan
32 underwriter or loan guarantor.
33 (156) "Executive director" means the executive director of the Idaho real
34 estate commission.
35 (167) "Fee or commission" means a payment, actual, promised or expected,
36 as compensation for the performance of any act requiring a real estate
37 license.
38 (178) "Legal business entity" means and includes any type of corporation,
39 partnership, limited liability company or limited liability partnership, a
40 governmental entity, trust or other entity capable of conducting business.
41 (189) "Licensee" means any person who is licensed in accordance with this
42 chapter to engage in the business or act in the capacity of real estate bro-
43 ker, associate broker or real estate salesperson.
44 (1920) "Limited broker" means a broker individually qualified to do busi-
45 ness in Idaho, but who may not have associate brokers or salespersons licensed
46 with that broker.
47 (201) "Live presentation" means, in reference to a real estate course
48 offering, a real estate course that is personally presented by the instructor
49 and personally attended by the student at the same facility.
50 (212) "Main office" means the principal location where the real estate
51 broker is licensed to transact business.
52 (223) "Person" means and includes an individual, or any legal business
53 entity.
54 (234) "Primary Idaho license" means an Idaho real estate license that is
55 not contingent upon continuance of a license in another state or jurisdiction.
3
1 (245) "Provisional license" means an extension of the period of active
2 licensure, beyond the licensee's expiration date, granted by the commission
3 for the purpose of allowing the licensee to complete the continuing education
4 requirements set forth in section 54-2023, Idaho Code, or for any other pur-
5 pose allowed by this chapter.
6 (256) "Real estate broker" means and includes:
7 (a) Any person other than a real estate salesperson, who, directly or
8 indirectly, while acting for another, for compensation or a promise or an
9 expectation thereof, engages in any of the following: sells, lists, buys,
10 or negotiates, or offers to sell, list, buy or negotiate the purchase,
11 sale, option or exchange of real estate or any interest therein or busi-
12 ness opportunity or interest therein for others;
13 (b) Any actively licensed broker while, directly or indirectly, acting on
14 the broker's own behalf;
15 (c) Any person who represents to the public that the person is engaged in
16 any of the above activities;
17 (d) Any person who directly or indirectly engages in, directs, or takes
18 any part in the procuring of prospects, or in the negotiating or closing
19 of any transaction which does or is calculated to result in any of the
20 acts above set forth;
21 (e) A dealer in options as defined in this section.
22 (267) "Real estate salesperson" or "salesperson" means any person who has
23 qualified and is licensed as a real estate salesperson in Idaho under this
24 chapter, and is licensed under, associated with, and represents a designated
25 broker in the performance of any act described in subsection (256) of this
26 section.
27 (278) "Reciprocal license" means an Idaho real estate license that is
28 issued pursuant to the terms of a specific, written reciprocal agreement
29 between Idaho and another state or jurisdiction, and that is contingent upon
30 the licensee's maintaining a license in the other state or jurisdiction.
31 (289) "Regulated real estate transaction" means those real estate transac-
32 tions for which a real estate license is required under chapter 20, title 54,
33 Idaho Code.
34 (2930) "Responsible broker" means the designated broker in the regulated
35 real estate transaction who is responsible for the accounting and transaction
36 files for the transaction, in the manner described in section 54-2048, Idaho
37 Code.
38 (301) "Sales associate" means a salesperson or an associate broker
39 licensed under and associated with a designated broker.
40 (312) "State or jurisdiction" means and includes any of the fifty (50)
41 states and any foreign jurisdiction that issue real estate licenses substan-
42 tially similar to those provided for in this chapter.
43 (323) "Successfully completed" means, in reference to a real estate course
44 offering, completing all required course hours and, except where the licensee
45 seeks continuing education credit for having regularly attended the live pre-
46 sentation of a course, passing a commission-approved final examination.
47 (334) "Wall license" means the certificate of license issued by the com-
48 mission.
49 SECTION 2. That Section 54-2023, Idaho Code, be, and the same is hereby
50 amended to read as follows:
51 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
52 of an Idaho real estate license on active status, and each Idaho licensee
53 seeking to change from inactive to active license status, shall submit satis-
4
1 factory proof to the commission of having successfully completed at least
2 twelve (12) the required number of classroom hours of commission-approved and
3 or certified continuing education course work coursework as provided in this
4 section, plus one (1) commission-approved core course. Failure to provide
5 proof of meeting the continuing education requirements as set forth in this
6 chapter section constitutes an incomplete application for a renewal of an
7 active license or for a change in license status from inactive to active, and,
8 as such, constitutes grounds for denial of those the applications.
9 (1) Required number of classroom hours. The required number of classroom
10 hours are as follows:
11 (a) Renewing active license. A lLicensees renewing on active status
12 effective prior to July 1, 2003, must successfully complete the at least
13 eight (8) classroom hours of continuing education requirement on or before
14 the license expiration date., in the manner stated in section 54-2018,
15 Idaho Code A licensee renewing on active status effective on or after July
16 1, 2003, must successfully complete at least sixteen (16) classroom hours
17 of continuing education on or before the license expiration date.
18 (2b) Change from inactive to active. A lLicensees changing from inactive
19 to active status effective prior to July 1, 2003, must successfully com-
20 plete one (1) at least eight (8) classroom hours of continuing education
21 requirement offered during their current inactive license period. A licen-
22 see changing from inactive to active status effective on or after July 1,
23 2003, must successfully complete at least sixteen (16) classroom hours of
24 continuing education during the current inactive license period.
25 (32) No duplicate credit. Credit for completion of any approved continu-
26 ing education course curriculum will not be granted twice within the same
27 license period.
28 (43) Excess credits. The twelve (12) hours of course work classroom hours
29 shall apply to the license period in which such course work is completed;
30 hours completed in excess of those required for the license period shall not
31 accumulate or be credited for the purposes of subsequent license renewal
32 periods.
33 (54) Challenge exams. The commission may substitute all or a portion of
34 the continuing education course work required when a licensee shows evidence
35 of passing an approved challenge exam or of completing equivalent education
36 determined by the commission to be in full compliance with such continuing
37 education requirements Commission-ordered education. No licensee shall obtain
38 continuing education credit for education ordered by the commission as part of
39 a disciplinary action.
40 (65) No exam for live courses. A licensee may receive continuing educa-
41 tion course credit without having to take or pass an exam if the licensee per-
42 sonally attends the entire live presentation of an approved course Obtaining
43 continuing education classroom hours. In order to obtain continuing education
44 classroom hours, a licensee may:
45 (a) Successfully complete a commission-approved continuing education
46 course;
47 (b) Successfully complete a commission-approved continuing education
48 challenge exam;
49 (c) Attend an entire regularly-scheduled meeting of the commission. The
50 licensee shall provide at least seven (7) days' advance notice to the edu-
51 cation section of the commission of his intent to attend the meeting.
52 Failure to provide advance notice shall result in no continuing education
53 hours being credited. A maximum of three (3) hours for this activity shall
54 be credited for any one (1) meeting in any one (1) license period;
55 (d) Successfully complete a commission-approved broker prelicense course,
5
1 or a commission-approved continuing education challenge exam, in advanced
2 real estate study. Continuing education credit may be obtained for retak-
3 ing the same broker prelicense course or challenge exam only if completed
4 after five (5) years of completing the previous course or challenge exam;
5 or
6 (e) Provide to the commission a transcript or course completion certifi-
7 cate of successful completion of any of the following courses, in accor-
8 dance with all of the continuing education requirements of this section,
9 without commission preapproval of the curriculum, instructors or
10 providers:
11 (i) Courses developed by national professional organizations that
12 are required in order to earn professional designations from a
13 national organization in specialized areas of licensed real estate
14 practice; and
15 (ii) Courses approved by and offered in satisfaction of another pro-
16 fessional or occupational licensing authority's education require-
17 ments, if within the approved topic areas established by the commis-
18 sion.
19 (76) Provisional license -- Extension of time. A three-month extension of
20 time for completing the education requirements may be obtained by submitting
21 with the renewal application, or application to activate, satisfactory evi-
22 dence showing that the applicant was unable to comply with such education
23 requirements. Such evidence may be:
24 (a) Bona fide hardship preventing completion of the reinstatement
25 requirements of an inactive license;
26 (b) Health reasons preventing attendance or completion;
27 (c) Active duty in the military service with assignment to a permanent
28 duty station outside of the state during the last twelve (12) months of a
29 license period; or
30 (d) Other compelling cause beyond the control of the applicant while
31 engaged in the real estate business.
32 If such an extension is granted, the licensee shall receive a provisional
33 license for a period of time not to exceed three (3) months. No further exten-
34 sion of time may be granted. A license issued or renewed after an extension of
35 time has been granted shall be dated effective as of retain the original
36 license expiration date. and not the extended date. Failure to satisfy the
37 continuing education requirement within the time granted shall result in the
38 automatic inactivation of the license.
39 SECTION 3. That Section 54-2036, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 54-2036. CERTIFICATION OF COURSES AND COURSE CONTENT. Every real estate
42 course offered for prelicense or continuing education credit for an Idaho real
43 estate license shall first be certified and accredited by the Idaho real
44 estate commission.
45 (1) An application for course certification must be submitted in the form
46 and manner required by the commission, with proper fees, at least two (2)
47 months prior to contemplated date of the first course offering.
48 (2) Minimum requirements for course certification:
49 (a) Each course must be certified individually, offered only through a
50 provider certified or approved in Idaho, and taught by an instructor cer-
51 tified or approved in Idaho in accordance with this chapter.
52 (b) Each prelicense course must contain at least twenty (20) hours of
53 classroom instruction hours, and each continuing education course must
6
1 contain at least two (2) classroom hours.
2 (c) Exam time shall not be included as approved classroom hours of
3 instruction.
4 (d) A course classroom hour is defined as a period of at least fifty (50)
5 minutes of actual instruction.
6 (e) Distance learning and alternative course delivery. The length of a
7 certified distance learning or other alternative course shall be based
8 upon the same number of hours which would be awarded in an equivalent
9 classroom course, and must include a commission-approved, proctored final
10 exam. The commission may, by motion, adopt national standards and require
11 national certification for the design and delivery of noncommission-
12 produced distance learning courses.
13 (f) Each prelicense course must include a proctored, commission-approved
14 final exam requiring a minimum passing score of seventy percent (70%).
15 (g) Continuing education course exam.
16 (i) A licensee may receive continuing education course credit with-
17 out having to take or pass an exam if the licensee personally attends
18 the entire live presentation of an approved course.
19 (ii) The commission may substitute all or a portion of the continu-
20 ing education coursework required when a licensee shows evidence of
21 passing a commission-approved challenge exam.
22 (ih) Exam retake policy. Each certified course provider may, at its
23 option, allow students who fail the initial course exam one (1) opportu-
24 nity to retake the approved course exam within the following time periods:
25 1.(i) Prelicense course exam retakes must occur within one (1)
26 month of the original course exam;
27 2.(ii) Continuing education course challenge exam retakes must occur
28 within that course's certification period;
29 (iii) If a student fails the retake exam for any prelicense or con-
30 tinuing education course, the student must repeat the entire course
31 and pass the final exam to receive credit.
32 (gi) Challenge exams. A student shall not earn credit for any prelicense
33 course by challenging and passing the course exam without otherwise com-
34 pleting all course requirements. Credit for continuing education courses
35 may be earned by challenge exam only as allowed in section 54-2023(5),
36 Idaho Code.
37 (3) Approved topics. The commission shall establish specific, approved
38 topics for course content for prelicense courses and continuing education
39 courses as it deems appropriate to current real estate practices and laws.
STATEMENT OF PURPOSE
RS 11466 C4
This bill increases the number of hours of continuing education
(CE) required to renew an active real estate license, from twelve
(12) hours every two years, to sixteen (16) hours plus a "core
course" every two years. At the same time, the bill expands the
educational opportunities available to meet the CE requirement.
Given the rapid change in real estate industry and the growing
complexity of the laws affecting it, an increase in the level
of required CE is necessary for the licensee to effectively serve
the public.
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
Phone: 334-3285 x232
Statement of Purpose/Fiscal Impact S 1340