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S1048..........................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE - LICENSE - Amends existing law to revise the minimum requirements
for individual primary Idaho licenses.
01/31 Senate intro - 1st rdg - to printing
02/03 Rpt prt - to Com/HuRes
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/21 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt, Bunderson, Burkett, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai(Ellis), Marley,
McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Schroeder,
Sorensen, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Bailey
Floor Sponsor - Goedde
Title apvd - to House
02/24 House intro - 1st rdg - to Bus
02/28 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/04 3rd rdg - PASSED - 63-0-7
AYES -- Andersen, Barraclough, Bauer, Bedke, Bell, Bieter, Black, Block,
Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Deal, Denney,
Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Gagner, Garrett, Henbest, Kellogg, Kulczyk, Lake, Langford, Langhorst,
Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch,
Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30),
Smith(24), Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Mr.
Speaker
NAYS -- None
Absent and excused -- Barrett, Crow, Cuddy, Harwood, Jaquet, Jones, Wood
Floor Sponsor - Cannon
Title apvd - to Senate
03/05 To enrol
03/06 Rpt enrol - Pres signed
03/07 Sp signed
03/10 To Governor
03/13 Governor signed
Session Law Chapter 66
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE SENATE
SENATE BILL NO. 1048
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2012, IDAHO
3 CODE, TO REVISE MINIMUM REQUIREMENTS FOR INDIVIDUAL PRIMARY IDAHO
4 LICENSES; AMENDING SECTIONS 54-2015, 54-2017 AND 54-2026, IDAHO CODE, TO
5 PROVIDE CORRECT CODE CITATIONS; AND AMENDING SECTION 54-2033, IDAHO CODE,
6 TO PROVIDE CORRECT CODE CITATIONS AND TO MAKE A TECHNICAL CORRECTION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 54-2012, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 54-2012. MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE.
11 (1) Requirements for all individual primary licenses. Unless a qualification
12 is waived or modified by the commission for good cause and upon special con-
13 sideration, and except as provided in section 54-2015, Idaho Code, each person
14 seeking a primary Idaho real estate license as a salesperson, associate broker
15 or designated broker shall meet all of the following minimum qualifications:
16 (a) Be an individual;
17 (b) Be eighteen (18) years of age or older;
18 (c) Furnish satisfactory proof that the applicant graduated from an
19 accredited high school or its equivalent or holds a certificate of general
20 education;
21 (d) Not have had a real estate or other professional or occupational
22 license revoked, suspended, or surrendered, or the renewal refused, for a
23 disciplinary violation involving fraud, misrepresentation or dishonest or
24 dishonorable dealing, in Idaho or any other jurisdiction, within five (5)
25 years immediately prior to the date the application for license is submit-
26 ted to the commission;
27 (e) Not have been convicted, issued any fine, placed on probation,
28 received a withheld judgment or completed any sentence of confinement for
29 or on account of any felony, or any misdemeanor involving fraud, misrepre-
30 sentation or dishonest or dishonorable dealing, in a state or federal
31 court, within five (5) years immediately prior to the date the application
32 for license is submitted to the commission;
33 (f) Not have been convicted of any felony in a state or federal court;
34 provided that after a period of five (5) years from the date the person
35 was convicted or completed any term of probation, sentence or confinement
36 or period of parole, whichever is later, the applicant may make written
37 request to the commission for an exemption review to determine the
38 applicant's suitability for licensure, which the commission shall deter-
39 mine in accordance with the following:
40 (i) The exemption review shall consist of a review of any documents
41 relating to the felony and any supplemental information provided by
42 the applicant bearing upon his suitability for licensure. The commis-
43 sion may, at its discretion, grant an interview of the applicant.
2
1 (ii) During the review, the commission shall consider the following
2 factors or evidence:
3 1. The severity or nature of the felony;
4 2. The period of time that has passed since the felony under
5 review;
6 3. The number or pattern of felonies or other similar inci-
7 dents;
8 4. The circumstances surrounding the crime that would help
9 determine the risk of repetition;
10 5. The relationship of the crime to the licensed practice of
11 real estate; and
12 6. The applicant's activities since the crime under review,
13 such as employment, education, participation in treatment, pay-
14 ment of restitution, or any other factors which may be evidence
15 of current rehabilitation.
16 (iii) The applicant shall bear the burden of establishing his current
17 suitability for licensure.
18 (g) Complete all prelicense education requirements as provided for in
19 section 54-2022, Idaho Code, for a salesperson's or broker's license;
20 (gh) Pass the commission-approved real estate licensing exam for a sales
21 or broker license in the time and manner stated in section 54-2014, Idaho
22 Code, and pay the required exam fees;
23 (hi) Be fingerprinted by an authorized law enforcement agency, and file
24 the fingerprints with the commission for the purpose of determining a
25 national criminal history check to determine whether the qualifications
26 applicant is qualified for licensure. are fulfilled. The fingerprints
27 will be forwarded to the federal bureau of investigation or the Idaho
28 department of law enforcement. If the fingerprints are returned to the
29 commission as illegible the applicant shall, upon request from the commis-
30 sion, be fingerprinted again and file the new fingerprints with the com-
31 mission. All fees charged by the commission and the law enforcement agency
32 for fingerprint services shall be paid by the applicant;
33 (ij) Sign and file with the commission an irrevocable consent to service,
34 appointing the commission's executive director to act as the licensee's
35 agent upon whom all judicial and other process or legal notices directed
36 to such licensee may be served, and consenting that any lawful process
37 against the licensee that is served upon the executive director shall be
38 of the same legal force and validity as if served upon the licensee and
39 that the authority shall continue in force so long as any liability
40 remains outstanding in this state. Upon receipt of any such process or
41 notice, the executive director shall immediately mail a copy of the same
42 by certified mail to the last known business address of the licensee. All
43 licensees shall provide the commission a full and current mailing address
44 and shall immediately notify the commission in writing of any change in
45 mailing address;
46 (jk) If licensing as an active salesperson or associate broker, provide
47 the name and physical address of the main business location of the desig-
48 nated broker with whom the applicant will be licensed, and the signature
49 of that broker; or, if licensing as a designated broker, provide the name
50 and physical address of the main business location. No Idaho sales associ-
51 ate may be licensed under or associated with more than one (1) Idaho bro-
52 ker at a time;
53 (kl) Submit a properly completed application and all license, application
54 and other fees listed in section 54-2020, Idaho Code, or as otherwise
55 required by statute or rule; and
3
1 (lm) Provide satisfactory proof of meeting the mandatory errors and omis-
2 sions insurance requirement for real estate licensees, as stated in sec-
3 tion 54-2013, Idaho Code.
4 (2) Additional requirements for broker and associate broker licenses.
5 Applicants seeking a primary Idaho license as a broker or associate broker
6 shall meet the additional following qualifications:
7 (a) Provide satisfactory evidence of having been actively engaged, on a
8 full-time basis, for two (2) years as a licensed real estate salesperson
9 within five (5) years immediately prior to the date upon which the indi-
10 vidual makes application. Such evidence shall demonstrate the
11 productiveness of the licensed activity to have been generally commensu-
12 rate with that of other licensees practicing in a similar capacity. List-
13 ings, sales, options or other licensed activities may be considered by the
14 commission in determining whether the applicant meets this qualification.
15 (i) A broker or associate broker applicant may be required to fur-
16 nish a report of listings and sales accomplished by the applicant
17 during two (2) or more years within the last five (5) years of licen-
18 sure immediately prior to the application date;
19 (ii) This report shall be certified as correct by the broker or bro-
20 kers with whom the applicant has been associated, provided however,
21 that upon preapproval by the commission, the applicant may verify
22 that the report is correct in an alternative manner;
23 (iii) The broker experience requirement may be modified or reduced,
24 in whole or in part, at the discretion of the commission, based upon
25 the applicant's educational background, or experience in related or
26 affiliated business activities;
27 (iv) The commission in its discretion may make such additional
28 investigation and inquiry relative to the applicant as it shall deem
29 advisable;
30 (b) Designate a physical office location and a business name. The commis-
31 sion may refuse to issue a license to any person if the business name is
32 the same as that of any person whose license has been suspended or revoked
33 or is so similar as to be easily confused with another licensee's name by
34 members of the general public. However, nothing in this subsection shall
35 restrict an individual from obtaining a license in his or her own legal
36 name.
37 (c) If currently licensed in Idaho as a salesperson and applying for a
38 license as an Idaho broker or associate broker, the individual shall sub-
39 mit a new fingerprint card for processing with the application and pay
40 associated fees.
41 SECTION 2. That Section 54-2015, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 54-2015. INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE OR JURISDICTION
44 SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
45 ely licensed as a real estate broker or salesperson in another state or juris-
46 diction at the time of application for a primary Idaho real estate license
47 shall meet all qualifications listed in section 54-2012, Idaho Code, for the
48 type of license sought, except that the applicant shall not be required to
49 furnish proof of the educational prerequisites described in subsection (1)(fg)
50 of section 54-2012, Idaho Code. In addition, such applicant shall provide a
51 current, certified license history from the other licensing state or jurisdic-
52 tion, which history shall indicate any disciplinary action taken against the
53 applicant's license by the other licensing state or jurisdiction, and the sta-
4
1 tus and standing of the applicant's license in the other state or jurisdic-
2 tion.
3 (2) An individual who holds an active license in good standing in another
4 state or jurisdiction may, upon written request to the commission, obtain a
5 certificate of waiver of the national portion of the exam required for Idaho
6 licensure. A request for waiver shall indicate the individual's mailing
7 address to which the commission is to deliver the certificate of waiver. The
8 certificate of waiver shall be submitted with the application for exam as pro-
9 vided in subsection (4) of section 54-2014, Idaho Code.
10 (3) An individual who is currently and actively licensed in another state
11 or jurisdiction that administers a real estate exam may be issued a primary
12 Idaho license without further exam or proof of educational prerequisites pur-
13 suant to written agreement between Idaho and the other state or jurisdiction,
14 provided that such other state or jurisdiction allows the issuance of real
15 estate licenses in substantially the same manner as set forth in this subsec-
16 tion.
17 SECTION 3. That Section 54-2017, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 54-2017. RECIPROCAL IDAHO LICENSES. The commission may issue a reciprocal
20 Idaho real estate license to a qualified person who holds an active primary
21 license in another state or jurisdiction if a written reciprocal licensing
22 agreement exists between Idaho and the other state or jurisdiction. Each
23 reciprocal license issued shall be limited to and governed by the terms of the
24 applicable written agreement between Idaho and the other jurisdiction.
25 (1) Any reciprocal licensing agreement with Idaho shall require that the
26 person seeking an Idaho reciprocal license make proper application, pay all
27 required fees, and:
28 (a) Be currently and actively licensed as a designated broker in the
29 applicant's primary state or jurisdiction, or be licensed under a desig-
30 nated broker who holds a current, active Idaho reciprocal license;
31 (b) Provide satisfactory proof of holding an active license, in good
32 standing, as defined in the agreement, at the time of application;
33 (c) File an irrevocable consent to service as described in section
34 54-2012(1)(ij), Idaho Code, on the form approved and furnished by the
35 Idaho real estate commission;
36 (d) Provide satisfactory proof of errors and omissions insurance covering
37 the applicant's licensed activities in Idaho; and that
38 (2) A reciprocal license shall be issued and maintained as the same type
39 and status as the licensee's primary license.
40 SECTION 4. That Section 54-2026, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 54-2026. CERTIFICATION OF COURSE PROVIDERS. (1) Degree-granting institu-
43 tions. Degree-granting, accredited colleges and universities in any state or
44 jurisdiction shall be deemed to be approved course providers in Idaho. How-
45 ever, course content must still be approved for the real estate education
46 course to receive credit toward prelicense or continuing education licensing
47 requirements in Idaho.
48 (2) Other course providers. All other course providers desiring to offer
49 real estate courses for credit toward Idaho prelicense or continuing education
50 requirements must first meet the following qualifications and receive certifi-
51 cation. Each applicant seeking certification as a course provider shall comply
5
1 with the following:
2 (a) File an application for certification in the form and manner required
3 by the commission, along with proper fees, at least two (2) months prior
4 to contemplated date of opening or first accredited course offering;
5 (b) Designate a "director" or "individual in charge," who shall be
6 responsible for the course provider's operation and its real estate
7 courses, and with whom the commission may communicate. Unless this
8 requirement is waived upon special review of the commission in the manner
9 stated below, the individual in charge must not have had a real estate or
10 other professional or occupational license suspended or revoked for disci-
11 plinary reasons or have been refused a renewal of a license issued by the
12 state of Idaho or any other state or jurisdiction. The designated individ-
13 ual in charge must not have been convicted, issued any fine, placed on
14 probation, received a withheld judgment, or completed any sentence of con-
15 finement for or on account of any felony or a misdemeanor involving fraud,
16 misrepresentation, or dishonest or dishonorable dealing in a court of
17 proper jurisdiction.
18 (c) File a properly executed "irrevocable consent to service of process"
19 in the manner and form prescribed by the commission and in substantial
20 accordance with section 54-2012(1)(ij), Idaho Code. The commission, in its
21 discretion, may make such additional investigation and inquiry relative to
22 the applicant for provider certification as it deems advisable and, if
23 good cause exists, may deny or accept the application for certification.
24 SECTION 5. That Section 54-2033, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-2033. INSTRUCTOR QUALIFICATIONS. (1) Qualified instructors at degree-
27 granting institutions. A qualified or full-time instructor or professor of an
28 accredited college or university in any state or jurisdiction and who teaches
29 real estate-related courses is deemed to be an approved instructor of such
30 courses, in Idaho, for the purposes of this chapter.
31 (2) Other instructor applicants. All other individuals wishing to teach
32 real estate courses for credit toward Idaho prelicense or continuing education
33 requirements must first meet the following additional qualifications and
34 receive separate certification for each course to be taught:
35 (a) Unless this requirement is waived upon special review of the commis-
36 sion in the manner stated below, no individual instructor seeking certifi-
37 cation may have had a real estate or other professional or occupational
38 license suspended or revoked for disciplinary reasons or have been refused
39 a renewal of a license issued by the state of Idaho or any other state or
40 jurisdiction. Further, the individual may not have been convicted, issued
41 any fine, placed on probation, received a withheld judgment, or completed
42 any sentence of confinement for or on account of any felony, or any misde-
43 meanor involving fraud, misrepresentation, or dishonest or dishonorable
44 dealing, in a court of proper jurisdiction.
45 (b) Each applicant for certification shall also:
46 (i) Submit a properly completed application for instructor certifi-
47 cation in the form and manner required by the commission, with all
48 proper fees;
49 (ii) File a properly executed "irrevocable consent to service of
50 process" in the manner and form prescribed by the commission and
51 according to section 54-2012(1)(ij), Idaho Code;
52 (iii) Qualify as at least one (1) of the following:
53 1. An attorney at law actively licensed in any state or juris-
6
1 diction with at least five (5) years of active practice in the
2 areas of study proposed to be taught, and who has also success-
3 fully completed a commission-approved instructor training course
4 or procedure, including a student teaching period;
5 2. An individual currently approved or certified and in good
6 standing as a real estate instructor for the same or similar
7 course material in any other state or jurisdiction;
8 3. An individual who is appointed to teach a nationally recog-
9 nized real estate course which is generally accepted in other
10 states or jurisdictions; or
11 4. An individual with at least five (5) years active real
12 estate-related experience who has also successfully completed a
13 commission-approved instructor training procedure, including a
14 student teaching period.
STATEMENT OF PURPOSE
RS 12347
The Commission is seeking statutory authority to review the
applications of persons convicted of a felony, prior to granting a
real estate license. Licensed real estate practitioners typically
have "key box"" privileges through the Multiple Listing Service,
providing access to homes on the market - and their occupants.
Real estate licensees also are entrusted with financial information
about their customers and clients. However, under current law,
convicted felons are allowed a license after waiting a statutory
five-year period, without any further consideration of the
applicant's criminal past or present rehabilitation. To better
protect the public, this bill would require convicted felons to
demonstrate their current suitability for licensure, according to
the criteria specified in the statute, before being granted a real
estate license.
This bill also modifies the existing five-year waiting period, so
that the period begins on the date the person is released from
parole or probation, rather than the date of conviction or release
from prison.
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
Phone: 334-3285 ext 232
Statement of Purpose/Fiscal Impact S 1048