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S1241.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE BROKERS - Amends existing law relating to licensure of real
estate brokers to specify continuing education requirements; and to define
additional grounds for withdrawal or cancellation of provider certification
and of instructor's certification.
01/28 Senate intro - 1st rdg - to printing
01/29 Rpt prt - to Com/HuRes
02/16 Rpt out - rec d/p - to 2nd rdg
02/17 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen,
Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Hill, Richardson
Floor Sponsor - Goedde
Title apvd - to House
02/25 House intro - 1st rdg - to Bus
03/04 Rpt out - rec d/p - to 2nd rdg
03/05 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 66-0-4
AYES -- Andersen, Barraclough, Bauer, Bayer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kellogg, Kulczyk, Langford, Langhorst, Martinez, McGeachin,
McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Mr.
Speaker
NAYS -- None
Absent and excused -- Barrett, Lake, Wills, Wood
Floor Sponsor - Snodgrass
Title apvd - to Senate
03/10 To enrol
03/11 Rpt enrol - Pres signed
03/12 Sp signed
03/15 To Governor
03/19 Governor signed
Session Law Chapter 120
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1241
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO LICENSURE OF REAL ESTATE BROKERS AND SALESPERSONS; AMENDING SEC-
3 TION 54-2018, IDAHO CODE, TO SPECIFY REQUIREMENTS FOR LICENSE RENEWAL;
4 AMENDING SECTION 54-2023, IDAHO CODE, TO SPECIFY CONTINUING EDUCATION
5 REQUIREMENTS; AMENDING SECTION 54-2026, IDAHO CODE, TO DEFINE ADDITIONAL
6 GROUNDS FOR WITHDRAWAL OR CANCELLATION OF PROVIDER CERTIFICATION; AND
7 AMENDING SECTION 54-2033, IDAHO CODE, TO DEFINE ADDITIONAL GROUNDS FOR
8 WITHDRAWAL OR CANCELLATION OF INSTRUCTOR'S CERTIFICATION.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 54-2018, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
13 -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
14 license shall be for a period of one (1) year plus the months up to and
15 including the next birth date of the licensee, not to exceed a period of two
16 (2) years, and shall expire on a date to coincide with the last day of the
17 month of the birth date of the licensee. Corporations, partnerships, limited
18 liability companies and other entities defined as "persons" in this chapter
19 shall have established as the equivalent of a birth date, the birth date of
20 its designated broker. Licensed branch offices shall have established as the
21 equivalent of a birth date, the birth date of the real estate designated bro-
22 ker establishing for the branch office.
23 (2) License renewal. Each license shall be renewable for a period of two
24 (2) years by timely submitting a completed application. Applications must be
25 received at the commission office on or before 5 p.m. of the expiration date.
26 (a) If renewing an active license, the application shall include:
27 (i) Evidence of having Certification that the applicant has met the
28 commission's continuing education requirements as set forth in sec-
29 tion 54-2023, Idaho Code;
30 (ii) Proof of meeting Certification that the applicant has met the
31 mandatory errors and omissions insurance requirement for real estate
32 licensees as set forth in section 54-2013, Idaho Code; and
33 (iii) Payment of all renewal fees established by this chapter or by
34 the commission.
35 (b) If renewing an inactive license, the application shall include pay-
36 ment of all renewal fees established by this chapter or by the commission
37 by rule.
38 (3) Late renewal. If the licensee fails to submit a completed application
39 for renewal or pay the renewal fee on or before the expiration date, the com-
40 mission may accept a later application or payment of the fee, subject to such
41 conditions as the commission may require including, but not limited to, the
42 assessment of a late fee; provided that between the license expiration date
43 and the date of renewal of the license, the rights of the licensee under such
2
1 license shall be expired, and during such period of expiration it shall be
2 unlawful for any licensee to do or attempt to offer to do any of the acts of
3 the kind and nature described in the definitions of real estate broker or real
4 estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
5 sation of any kind or expectation thereof. An expired license that is not
6 renewed within one (1) year of the expiration date shall be automatically ter-
7 minated by the commission and may not be renewed.
8 (4) Active and inactive license status. A licensee who is a designated
9 broker or associated with a designated broker shall hold an active license. A
10 licensee who has paid all applicable fees, who is not associated with a desig-
11 nated broker and who holds a current license that is not revoked, suspended or
12 terminated shall hold his license on inactive status. A licensee seeking to
13 change from active license status to inactive license status shall have the
14 broker submit a change of status application to the commission in the form and
15 manner approved by the commission. During the period that his license is inac-
16 tive, the licensee shall not engage in the business or act in the capacity of
17 real estate broker, associate broker or salesperson. However, an inactive
18 licensee may receive a referral fee for any referral made during the period
19 his license was active. A licensee may reactivate an inactive license by meet-
20 ing each of the following:
21 (a) If activating as a sales associate, associating with a designated
22 Idaho broker and having the broker submit an application in the form and
23 manner approved by the commission;
24 (b) If activating as a designated broker, establishing an office in the
25 manner required by this chapter and submitting an application in the form
26 and manner approved by the commission;
27 (c) Paying the required fee;
28 (d) Providing evidence of having Obtaining and maintaining a policy of
29 errors or and omissions insurance in the manner as required by section
30 54-2013, Idaho Code, and in accordance with the rules of the commission
31 and certifying the same; and
32 (e) Providing evidence of having sSuccessfully completed the completing
33 any continuing education requirements, as prescribed in section 54-2023,
34 Idaho Code, and certifying the same for the current license period. A con-
35 tinuing education course taken to make up a deficiency of the requirements
36 from the previous renewal period may be applied toward the continuing edu-
37 cation requirements for the current period.
38 (5) Change in personal information. An individual licensee, whether
39 active or inactive, shall provide written notice to the commission, in the
40 form and manner approved by the commission, of any change of his personal
41 name, address of personal residence or personal telephone number. Notice shall
42 be provided within ten (10) days of the change. If the licensee has changed
43 his personal name, he shall also submit legal proof of the change and the fee
44 for issuing a new license certificate and, if an active licensee, he shall
45 have the broker submit the written notice of change to the commission. Upon
46 receipt of the new license certificate or upon its effective date, whichever
47 is later, the broker shall remove from public view any license certificate
48 bearing the licensee's former name.
49 (6) Signature required. No license shall be valid unless the license cer-
50 tificate is signed by the licensee.
51 (7) Effective dates. A request for licensure or for license changes shall
52 become effective when the properly completed application, attachments and any
53 required fee are received at and approved by the commission. An application
54 that is incomplete or lacking proper fees shall be returned to the applicant
55 and no license shall be issued until a completed application and proper fees
3
1 are received at and actually approved by the commission.
2 (8) Fees nonrefundable. No licensee shall be entitled to a refund of any
3 fee after the license or license change has become effective.
4 SECTION 2. That Section 54-2023, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
7 of an Idaho real estate license on active status, and each Idaho licensee
8 seeking to change from inactive to active license status, shall submit satis-
9 factory proof to the commission of having successfully completed the required
10 number of classroom hours of commission-approved or certified continuing edu-
11 cation coursework as provided in this section, plus one (1) commission-
12 approved core course. Failure to provide proof of meeting meet the continuing
13 education requirements as set forth in this section constitutes an incomplete
14 application for a renewal of an active license or for a change in license sta-
15 tus from inactive to active, and, as such, constitutes grounds for denial of
16 the application.
17 (1) Required number of classroom hours. The required number of classroom
18 hours are is as follows:
19 (a) Renewing active license on active status. A licensee renewing on
20 active status effective prior to July 1, 2003, must successfully complete
21 at least eight (8) classroom hours of continuing education, plus one (1)
22 commission-approved core course, on or before the current license expira-
23 tion date. A licensee renewing on active status effective on or after July
24 1, 2003, must successfully complete at least sixteen (16) classroom hours
25 of continuing education, plus one (1) commission-approved core course, on
26 or before the current license expiration date.
27 (b) Change from inactive to active. A licensee changing from inactive to
28 active license status effective prior to July 1, 2003, must successfully
29 meet the continuing education requirements for an active license for the
30 current licensing period. If the inactive licensee renewed his license on
31 or after July 1, 2003, he shall complete sixteen (16) classroom hours of
32 continuing education, plus one (1) commission-approved core course, before
33 he can change to active license status. If the inactive licensee is within
34 a license renewal period that began prior to July 1, 2003, he shall com-
35 plete at least eight (8) classroom hours of continuing education during
36 the current inactive license period. A licensee changing from inactive to
37 active status effective on or after July 1, 2003, must successfully com-
38 plete at least sixteen (16) classroom hours of continuing education during
39 the current inactive license period plus one (1) commission-approved core
40 course, before he can change to active license status. If the inactive
41 licensee is within his initial licensing period, no continuing education
42 is required to change to active license status.
43 (2) No duplicate credit. No licensee may obtain continuing education
44 credit for completing:
45 (a) Any core course curriculum for which he has previously received con-
46 tinuing education credit; or
47 (b) Any course curriculum for which he has received continuing education
48 credit in the same license period.
49 (3) Excess credits. The classroom hours shall apply to the license period
50 in which such course is completed; hours completed in excess of those required
51 for the license period shall not accumulate or be credited for the purposes of
52 subsequent license renewal periods.
53 (4) Commission-ordered education. No licensee shall obtain continuing
4
1 education credit for education ordered by the commission as part of a disci-
2 plinary action.
3 (5) Obtaining continuing education classroom hours. In order to obtain
4 continuing education classroom hours, a licensee may:
5 (a) Successfully complete a commission-approved continuing education
6 course;
7 (b) Successfully complete a commission-approved continuing education
8 challenge exam;
9 (c) Attend an entire regularly-scheduled meeting of the commission. The
10 licensee shall provide at least seven (7) days' advance notice to the edu-
11 cation section of the commission of his intent to attend the meeting.
12 Failure to provide advance notice shall result in no continuing education
13 hours being credited. A maximum of three (3) hours for this activity shall
14 be credited for any one (1) meeting in any one (1) license period;
15 (d) Successfully complete a commission-approved broker prelicense course,
16 or a commission-approved continuing education challenge exam, in advanced
17 real estate study. Continuing education credit may be obtained for retak-
18 ing the same broker prelicense course or challenge exam only if completed
19 after five (5) years of completing the previous course or challenge exam;
20 or
21 (e) Provide to the commission a transcript or course completion certifi-
22 cate of successful completion of any of the following courses, in accor-
23 dance with all of the continuing education requirements of this section,
24 without commission preapproval of the curriculum, instructors or
25 providers:
26 (i) Courses developed by national professional organizations that
27 are required in order to earn professional designations from a
28 national organization in specialized areas of licensed real estate
29 practice; and
30 (ii) Courses approved by and offered in satisfaction of another pro-
31 fessional or occupational licensing authority's education require-
32 ments, if within the approved topic areas established by the commis-
33 sion.
34 (f) If a certified course instructor, teach a live course for which con-
35 tinuing education credit may be obtained. Credits shall be granted for the
36 number of classroom hours taught.
37 (6) Provisional license -- Extension of time. A three-month extension of
38 time for completing the education requirements may be obtained by submitting
39 with the renewal application, or application to activate, satisfactory evi-
40 dence showing that the applicant was unable to comply with such education
41 requirements. Such evidence may be:
42 (a) Bona fide hardship preventing completion of the reinstatement
43 requirements of an inactive license;
44 (b) Health reasons preventing attendance or completion;
45 (c) Active duty in the military service with assignment to a permanent
46 duty station outside of the state during the last twelve (12) months of a
47 license period; or
48 (d) Other compelling cause beyond the control of the applicant while
49 engaged in the real estate business.
50 If such an extension is granted, the licensee shall receive a provisional
51 license for a period of time not to exceed three (3) months. No further exten-
52 sion of time may be granted. A license issued or renewed after an extension of
53 time has been granted shall retain the original license expiration date. Fail-
54 ure to satisfy the continuing education requirement within the time granted
55 shall result in the automatic inactivation of the license.
5
1 SECTION 3. That Section 54-2026, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 54-2026. CERTIFICATION OF COURSE PROVIDERS. (1) Degree-granting institu-
4 tions. Degree-granting, accredited colleges and universities in any state or
5 jurisdiction shall be deemed to be approved course providers in Idaho. How-
6 ever, course content must still be approved for the real estate education
7 course to receive credit toward prelicense or continuing education licensing
8 requirements in Idaho.
9 (2) Other course providers. All other course providers desiring to offer
10 real estate courses for credit toward Idaho prelicense or continuing education
11 requirements must first meet the following qualifications and receive certifi-
12 cation. Each applicant seeking certification as a course provider shall comply
13 with the following:
14 (a) File an application for certification in the form and manner required
15 by the commission, along with proper fees, at least two (2) months prior
16 to contemplated date of opening or first accredited course offering;
17 (b) Designate a "director" or "individual in charge," who shall be
18 responsible for the course provider's operation and its real estate
19 courses, and with whom the commission may communicate. Unless this
20 requirement is waived upon special review of the commission in the manner
21 stated below, the individual in charge must not have had a real estate or
22 other professional or occupational license suspended or revoked for disci-
23 plinary reasons or have been refused a renewal of a license issued by the
24 state of Idaho or any other state or jurisdiction. The designated individ-
25 ual in charge must not have been convicted, issued any fine, placed on
26 probation, received a withheld judgment, or completed any sentence of con-
27 finement for or on account of any felony or a misdemeanor involving fraud,
28 misrepresentation, or dishonest or dishonorable dealing in a court of
29 proper jurisdiction. The failure of the provider to have in place a desig-
30 nated individual meeting the qualifications required by this subsection
31 shall be grounds for the commission to withdraw or cancel the provider's
32 certificate as provided in section 54-2025(3), Idaho Code;
33 (c) File a properly executed "irrevocable consent to service of process"
34 in the manner and form prescribed by the commission and in substantial
35 accordance with section 54-2012(1)(j), Idaho Code. The commission, in its
36 discretion, may make such additional investigation and inquiry relative to
37 the applicant for provider certification as it deems advisable and, if
38 good cause exists, may deny or accept the application for certification.
39 SECTION 4. That Section 54-2033, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 54-2033. INSTRUCTOR QUALIFICATIONS. (1) Qualified instructors at degree-
42 granting institutions. A qualified or full-time instructor or professor of an
43 accredited college or university in any state or jurisdiction and who teaches
44 real estate-related courses is deemed to be an approved instructor of such
45 courses, in Idaho, for the purposes of this chapter.
46 (2) Other instructor applicants. All other individuals wishing to teach
47 real estate courses for credit toward Idaho prelicense or continuing education
48 requirements must first meet the following additional qualifications and
49 receive separate certification for each course to be taught:
50 (a) Unless this requirement is waived upon special review of the commis-
51 sion in the manner stated below, no individual instructor seeking certifi-
52 cation may have had a real estate or other professional or occupational
6
1 license suspended or revoked for disciplinary reasons or have been
2 refused a renewal of a license issued by the state of Idaho or any other
3 state or jurisdiction. Further, the individual may not have been con-
4 victed, issued any fine, placed on probation, received a withheld judg-
5 ment, or completed any sentence of confinement for or on account of any
6 felony, or any misdemeanor involving fraud, misrepresentation, or dishon-
7 est or dishonorable dealing, in a court of proper jurisdiction. The fail-
8 ure of a certified instructor to maintain the qualifications required by
9 this subsection shall be grounds for the commission to withdraw or cancel
10 the instructor's certificate as provided in section 54-2025(3), Idaho
11 Code.
12 (b) Each applicant for certification shall also:
13 (i) Submit a properly completed application for instructor certifi-
14 cation in the form and manner required by the commission, with all
15 proper fees;
16 (ii) File a properly executed "irrevocable consent to service of
17 process" in the manner and form prescribed by the commission and
18 according to section 54-2012(1)(j), Idaho Code;
19 (iii) Qualify as at least one (1) of the following:
20 1. An attorney at law actively licensed in any state or juris-
21 diction with at least five (5) years of active practice in the
22 areas of study proposed to be taught, and who has also success-
23 fully completed a commission-approved instructor training course
24 or procedure, including a student teaching period;
25 2. An individual currently approved or certified and in good
26 standing as a real estate instructor for the same or similar
27 course material in any other state or jurisdiction;
28 3. An individual who is appointed to teach a nationally recog-
29 nized real estate course which is generally accepted in other
30 states or jurisdictions; or
31 4. An individual with at least five (5) years active real
32 estate-related experience who has also successfully completed a
33 commission-approved instructor training procedure, including a
34 student teaching period.
STATEMENT OF PURPOSE
RS 13470C1
This year's "housekeeping bill" covers matters emerging from the
recent legislative and program development in the Continuing
Education arena. These are:
a. Provide for Instructors to obtain continuing education credit
hours for the continuing education coursees they teach, (amending
Section 54-2023(5));
b. Codify existing rules concerning proof of compliance with
Continuing Education requirements (amending section 54-2018(2));
c. Correct latent ambiguity within the text of section 54-
2023(1)(b), (added last legislative session), to accurately reflect
legislative intent that the increased continuing education
requirement applies to an active license that is renewed after July
1, 2003; and
d. Provide that an Instructor's application for re-certification
may be denied if the instructor-applicant fails to meet the
requirements of section 54-2033(2)(a) (pertaining to professional
discipline and criminal conduct).
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 Commission
Phone: 334-3284 ext. 232
Statement of Purpose/Fiscal Impact S 1241