2002 Legislation
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SENATE BILL NO. 1339 – Real estate brokers/felony/no licns

SENATE BILL NO. 1339

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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

Bill Text


                                                                        
                                                                        
  ||||              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
                                                                        
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  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 / Fiscal Impact


                        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