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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, 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
]]]] 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 oran 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 individualbroker 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 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