2005 Legislation
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SENATE BILL NO. 1008 – Real estate license, requirements

SENATE BILL NO. 1008

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Bill Status



S1008.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE - Amends and repeals existing law relating to the Idaho
Real Estate License Law to provide that individuals applying to be licensed
designated brokers or branch office managers must comply with certain
requirements; to revise requirements applicable to primary Idaho licenses
for legal business entities, sole proprietorships and branch offices; and
to repeal a code section applicable to reciprocal Idaho licenses.
                                                                        
01/14    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Com/HuRes
01/26    Rpt out - rec d/p - to 2nd rdg
01/27    2nd rdg - to 3rd rdg
02/01    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Noble, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk,
      Williams(Williams)
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Werk
    Title apvd - to House
02/02    House intro - 1st rdg - to Bus
03/08    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 62-4-4
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Field(18),
      Field(23), Garrett, Hart(Jacobson), Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Martinez, Mathews, McGeachin,
      Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Ring,
      Ringo, Rusche, Rydalch, Sayler, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
      Trail, Wills, Mr. Speaker
      NAYS -- Barrett, McKague, Sali, Wood
      Absent and excused -- Eskridge, Loertscher, Raybould, Roberts
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed
03/18    Sp signed
03/21    To Governor
03/23    Governor signed
         Session Law Chapter 105
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1008
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2015, IDAHO
  3        CODE, TO PROVIDE THAT INDIVIDUALS APPLYING TO BE LICENSED DESIGNATED  BRO-
  4        KERS  OR  BRANCH  OFFICE  MANAGERS  MUST COMPLY WITH CERTAIN REQUIREMENTS;
  5        AMENDING SECTION 54-2016, IDAHO CODE, TO REVISE REQUIREMENTS APPLICABLE TO
  6        PRIMARY IDAHO LICENSES FOR LEGAL BUSINESS ENTITIES,  SOLE  PROPRIETORSHIPS
  7        AND BRANCH OFFICES;  AND REPEALING SECTION 54-2017, IDAHO CODE, APPLICABLE
  8        TO RECIPROCAL IDAHO LICENSES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 54-2015, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        54-2015.  INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE  OR  JURISDICTION
 13    SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
 14    ely licensed as a real estate broker or salesperson in another state or juris-
 15    diction  at  the  time  of application for a primary Idaho real estate license
 16    shall meet all qualifications listed in section 54-2012, Idaho Code,  for  the
 17    type  of  license  sought,  except that the applicant shall not be required to
 18    furnish proof of the educational prerequisites described in subsection  (1)(g)
 19    of section 54-2012, Idaho Code; provided however, an individual applying to be
 20    licensed  as  a designated broker of a business entity or sole proprietorship,
 21    or as a branch office manager of a licensed branch office, shall  comply  with
 22    the  requirements  of section 54-2016, Idaho Code. In addition, such applicant
 23    shall provide a current, certified license history from  the  other  licensing
 24    state  or  jurisdiction,  which history shall indicate any disciplinary action
 25    taken against the applicant's license by the other licensing state  or  juris-
 26    diction,  and  the status and standing of the applicant's license in the other
 27    state or jurisdiction.
 28        (2)  An individual who holds an active license in good standing in another
 29    state or jurisdiction may, upon written request to the  commission,  obtain  a
 30    certificate  of  waiver of the national portion of the exam required for Idaho
 31    licensure. A request  for  waiver  shall  indicate  the  individual's  mailing
 32    address  to  which the commission is to deliver the certificate of waiver. The
 33    certificate of waiver shall be submitted with the application for exam as pro-
 34    vided in subsection (4) of section 54-2014, Idaho Code.
 35        (3)  An individual who is currently and actively licensed in another state
 36    or jurisdiction that administers a real estate exam may be  issued  a  primary
 37    Idaho  license without further exam or proof of educational prerequisites pur-
 38    suant to written agreement between Idaho and the other state or  jurisdiction,
 39    provided  that  such  other  state or jurisdiction allows the issuance of real
 40    estate licenses in substantially the same manner as set forth in this  subsec-
 41    tion;  provided however, an individual applying to be licensed as a designated
 42    broker of a business entity or sole proprietorship, or as a branch office man-
 43    ager of a licensed branch office, shall comply with the requirements  of  sec-
                                                                        
                                           2
                                                                        
  1    tion 54-2016, Idaho Code, notwithstanding the terms of the agreement.
                                                                        
  2        SECTION  2.  That  Section 54-2016, Idaho Code, be, and the same is hereby
  3    amended to read as follows:
                                                                        
  4        54-2016.  PRIMARY  IDAHO  LICENSES  FOR  LEGAL  BUSINESS  ENTITIES,   SOLE
  5    PROPRIETORSHIPS AND BRANCH OFFICES -- ADDITIONAL REQUIREMENTS. (1) Legal busi-
  6    ness  entities.  Each  legal  business entity, as defined in section  54-2004,
  7    Idaho Code, shall be licensed by the Idaho real estate commission to engage in
  8    the real estate business in Idaho and shall make proper application,  pay  all
  9    required fees, and meet all requirements listed below.
 10        (a)  Each  legal business entity shall have a properly licensed individual
 11        designated broker, who shall be held responsible for the activities of the
 12        licensed entity.
 13        (b)  The individual designated broker shall, within five (5) years immedi-
 14        ately prior to the  designation,  satisfactorily  complete  a  commission-
 15        approved business conduct and office operations course.
 16        (c)  The  individual designated broker shall also hold the following legal
 17        position within the licensed entity:
 18             (i)   Corporation -- an officer;
 19             (ii)  Partnership or limited partnership -- a general partner;
 20             (iii) Limited liability company -- a member or manager.
 21        The individual designated broker for any business entity shall  have  full
 22        authority to act on behalf of the licensed business entity, and shall sub-
 23        mit  sufficient  and  satisfactory  proof thereof with the application for
 24        license. Such proof shall include a list of the entity's officers,  direc-
 25        tors,  members  or  managers,  as reflected in the minutes, resolutions or
 26        other similar business documents of the entity. All acts of that  individ-
 27        ual as designated broker shall be considered acts of the licensed business
 28        entity. Nothing in this section is intended to create liability to a legal
 29        business  entity  for  illegal or fraudulent acts by the individual broker
 30        performed solely on his own account.
 31        (bd)  A license issued to a legal business  entity,  as  defined  in  this
 32        chapter,  is  effective only as long as the individual designated broker's
 33        license is in active status and in effect. If the individual so designated
 34        has a license refused, revoked, suspended or otherwise  made  inactive  by
 35        the commission, or if the individual designated broker voluntarily surren-
 36        ders  the  individual license or ceases to be connected with the entity in
 37        the manner required above, the business entity shall have ten  (10)  busi-
 38        ness days in which to designate another qualified individual as designated
 39        broker  before the entity's license is terminated, and the licenses of all
 40        associated licensees are made inactive.
 41        (ce)  One (1) individual may act as designated broker for  more  than  one
 42        (1)  licensed business entity, however, all entities shall have their main
 43        offices in the same physical location.
 44        (df)  Satisfactory proof of mandatory errors and omissions insurance shall
 45        be provided for both the individual designated  broker  and  the  licensed
 46        business entity.
 47        (eg)  A  legal  business entity doing business under an assumed name shall
 48        provide satisfactory proof  of  having  legally  filed  a  certificate  of
 49        assumed name with the Idaho secretary of state.
 50        (2)  Sole  proprietorships.  An  individual designated broker not licensed
 51    with a legal business entity, as defined in section 54-2004, Idaho Code, shall
 52    be licensed as a sole proprietor. Each  sole  proprietorship  seeking  a  real
 53    estate license shall meet all of the following requirements:
                                                                        
                                           3
                                                                        
  1        (a)  A  licensed  sole proprietor doing business under an assumed business
  2        name shall provide satisfactory proof of having legally filed  a  certifi-
  3        cate of assumed name with the Idaho secretary of state;
  4        (b)  Satisfactory  proof of mandatory errors and omissions insurance shall
  5        be provided for the licensed designated broker of a sole proprietorship;
  6        (c)  The individual designated broker shall have satisfactorily  completed
  7        a commission-approved business conduct and office operations course within
  8        five (5) years immediately prior to the application for license.
  9        (3)  Multiple  business  names prohibited. A legal business entity or sole
 10    proprietorship shall be licensed under only one (1) business name.
 11        (4)  Branch offices. Each branch office in which trust funds and  original
 12    transaction  files  are  maintained shall be separately licensed in accordance
 13    with the following:
 14        (a)  The designated broker establishing the branch office shall submit  an
 15        application,  along  with  the required fee for the issuance or renewal of
 16        the branch office license.
 17        (b)  The designated broker shall designate in  the  application  a  branch
 18        manager,  who  shall be a salesperson with at least two (2) years' experi-
 19        ence or an associate broker and who, within  five  (5)  years  immediately
 20        prior to the designation, shall have completed a commission-approved busi-
 21        ness  conduct  and  office  operations  course, to regularly occupy and be
 22        responsible for the supervision of the branch office. Any salesperson act-
 23        ing as a branch manager on July 1, 2005, shall have until July 1, 2006, to
 24        obtain an associate broker's license. When a branch manager is  a  regular
 25        full-time  employee  or  is  engaged in a full-time activity at a location
 26        other than the place he is licensed to do business, a presumption will  be
 27        made  that  the  branch  manager  is  unable  to responsibly supervise the
 28        branch; provided however, the presumption may be overcome by  evidence  to
 29        the contrary which the commission determines to be satisfactory.
 30        (c)  A  branch  manager  shall not be licensed to manage more than one (1)
 31        branch office at a time.
 32        (d)  A license issued to a branch office is valid and in  effect  only  as
 33        long  as the license of the designated individual broker remains in active
 34        status. The license certificate of the branch office shall  be  signed  by
 35        the designated broker.
 36        (e)  No separate branch office license or manager is required for business
 37        locations other than the main office unless trust funds or original trans-
 38        action records are kept at the branch.
 39        (f)  If  a  separate  real estate trust account is maintained for a branch
 40        office, all records and related files for that account shall be maintained
 41        at the branch office.
 42        (g)  Each branch office or business location, whether separately  licensed
 43        or  not,  shall  conduct  business  only in the licensed name of the legal
 44        entity or sole proprietor.
 45        (h)  The current license certificates for the branch  office,  the  branch
 46        manager,  and for each sales associate conducting business from the branch
 47        office shall be prominently displayed or available for  public  inspection
 48        at the branch office.
                                                                        
 49        SECTION  3.  That  Section 54-2017, Idaho Code, be, and the same is hereby
 50    repealed.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                          RS 14480

This legislative proposal would make completion of the Business 
Conduct and Office Operations class a prerequisite to becoming 
licensed as a firm's Designated Broker or Branch Office Manager.  
It would also require that any Branch Office Manager be licensed 
as an associate broker, rather than merely having a 
salesperson's license plus two years’ experience.  This 
heightened requirement for Branch Office Managers is necessary 
because such persons are responsible for trust accounts and 
original transaction files, yet no education on these subjects 
is currently required by law.


                         FISCAL IMPACT

None to the General Fund, as no General Fund dollars are used by 
IREC.  None to any political subdivisions, as IREC is funded 
primarily from license fees.  None to the Agency.




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

Statement of Purpose/Fiscal Impact                S 1008