Print Friendly SENATE BILL NO. 1008 – Real estate license, requirements
SENATE BILL NO. 1008
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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,
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
]]]] 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-
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:
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
STATEMENT OF PURPOSE
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.
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
Statement of Purpose/Fiscal Impact S 1008