2002 Legislation
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SENATE BILL NO. 1340 – Real estate licensee, education


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Daily Data Tracking History

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,
      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

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                       IN THE SENATE
                                    SENATE BILL NO. 1340
  1                                        AN ACT
 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.
  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.
  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-
  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,
  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
  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 / Fiscal Impact

                          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.   

Name:	Donna Jones
Agency:	Real Estate
Phone:	334-3285 x232

Statement of Purpose/Fiscal Impact             S 1340