2005 Legislation
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SENATE BILL NO. 1010 – Real estate license law, misc amens


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S1010.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE LAW - Amends the Idaho Real Estate License Law to
revise definitions; to revise the minimum requirements for an individual
primary Idaho license; to require the display or public availability of
certain certificates; to require that continuing education credit hours be
obtained prior to the submission of license applications; to provide for
disciplinary action by the Real Estate Commission; to provide that the Real
Estate Commission may request proof of continuing education compliance; to
specify continuing education documentation requirements; to provide for the
inactivation of licenses; to revise provisions applicable to continuing
education requirements; to revise certification requirements; to revise the
duties and requirements of certified course providers; to revise provisions
applicable to certification of courses and course content; to remove the
requirement that trust accounts be established at depositories located in
Idaho; to revise provisions applicable to terminating or changing licensed
business relationships; and to revise the grounds for disciplinary action.
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
02/04    3rd rdg - PASSED - 31-0-4
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Gannon,
      Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams(Williams)
      NAYS -- None
      Absent and excused -- Davis, Lodge, Noble, Pearce
    Floor Sponsor - Broadsword
    Title apvd - to House
02/07    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 - 64-1-5
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
      Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Martinez, Mathews,
      McGeachin, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart,
      Pence, Ring, Ringo, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- McKague
      Absent and excused -- Clark, Henbest, Loertscher, Raybould, Roberts
    Floor Sponsor - Miller
    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 107
         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. 1010
  1                                        AN ACT
 35    Be It Enacted by the Legislature of the State of Idaho:
 36        SECTION 1.  That Section 54-2004, Idaho Code, be, and the same  is  hereby
 37    amended to read as follows:
 38        54-2004.  DEFINITIONS. As used in this chapter:
 39        (1)  "Accredited college or university" means an institution accredited by
 40    the  regional accrediting associations, as reported in the most current publi-
 41    cation of the accredited institutions of postsecondary education.
 42        (2)  "Active license" means the status of a real estate license  that  has
 43    not been inactivated, expired, terminated, suspended or revoked.
  1        (23)  "Associate  broker" means an individual who has qualified personally
  2    as a real estate broker in Idaho under this chapter, but  is  licensed  under,
  3    associated  with  and represents a designated broker in the performance of any
  4    act described in subsection (2931) of this section.
  5        (34)  "Branch office" means an office operated by a licensed  real  estate
  6    broker  or  licensed  legal  business entity, separate and apart from the main
  7    office. A branch office may be licensed or unlicensed, in accordance with this
  8    chapter.
  9        (45)  "Brokerage agreement" means a  written  contract  between  a  buyer,
 10    seller,  or  both,  and a real estate brokerage for agency representation in a
 11    regulated real estate transaction.
 12        (56)  "Brokerage company" means a real estate  business,  whether  a  sole
 13    proprietorship,  a  legal entity, or any other licensed person engaged in acts
 14    requiring a real estate license in Idaho, and which is conducting  or  holding
 15    itself out as conducting the business of real estate through a designated bro-
 16    ker.
 17        (67)  "Business  name"  means  the  name in which the brokerage company is
 18    licensed by the commission.
 19        (78)  "Business opportunity" means and includes an  established  business,
 20    good  will of an established business, or any interest therein, or any one (1)
 21    or combination thereof, where a sale  or  transfer  of  an  interest  in  land
 22    including,  but  not  limited to, an assignment of a lease, is involved in the
 23    transaction.
 24        (89)  "Commission" means the Idaho real estate commission, unless the con-
 25    text clearly indicates a different meaning.
 26        (10) "Commission core course" means, in reference to a real estate  course
 27    offering, the course containing curriculum, identified by the commission, that
 28    stresses  current  trends in real estate practices and changes in laws in real
 29    estate related industries. A core course must contain no more  than  four  (4)
 30    classroom hours of instruction.
 31        (11) "Continuing  education  elective  course"  means a real estate course
 32    offering, other than the commission core course for which continuing education
 33    credit hours may be obtained as provided in section 54-2023, Idaho Code.
 34        (912) "Convicted" means a plea of nolo contendere or guilty, a  jury  ver-
 35    dict  of guilty or a court decision of guilt whether or not a judgment or sen-
 36    tence has been imposed, withheld or suspended.
 37        (103) "Cooperative sale" means a transaction involving  two  (2)  or  more
 38    brokers.
 39        (11) "Core course" means, in reference to a real estate course offering, a
 40    course containing curriculum, identified by the commission, that stresses cur-
 41    rent  trends  in  real  estate  practices  and  changes in laws in real estate
 42    related industries. A core course must contain no more than four (4) classroom
 43    hours of instruction.
 44        (124) "Council" means the Idaho real estate education council.
 45        (135) "Dealer in options" means any person, firm, partnership, association
 46    or corporation who shall directly or indirectly take, obtain or use options to
 47    purchase, exchange, lease option or lease purchase real property or any inter-
 48    est therein for another or others whether or not the options shall be  in  his
 49    or  its  name  and whether or not title to the property shall pass through the
 50    name of the person, firm, partnership, association or corporation  in  connec-
 51    tion  with the purchase, sale, exchange, lease option or lease purchase of the
 52    real property, or interest therein.
 53        (146) "Designated broker" means an individual who is licensed  as  a  real
 54    estate  broker  in  Idaho and who is designated by the brokerage company to be
 55    responsible for the supervision of the brokerage company and the activities of
  1    any associated licensees in accordance with this chapter.
  2        (157) "Distance learning course" means,  in  relation  to  a  real  estate
  3    course offering, a real estate course that is delivered, not as a live course,
  4    but through a medium in which the instructor and student are separated by dis-
  5    tance or time.
  6        (168) "Double  contract"  means  two (2) or more written or unwritten con-
  7    tracts of sale, purchase and sale agreements, loan applications, or any  other
  8    agreements,  one (1) of which is not made known to the prospective loan under-
  9    writer or the loan guarantor, to enable the buyer to obtain a larger loan than
 10    the true sales price would allow, or to enable the buyer to qualify for a loan
 11    which he or she otherwise could not obtain. An agreement or  loan  application
 12    is  not  made  known unless it is disclosed in writing to the prospective loan
 13    underwriter or loan guarantor.
 14        (179) "Executive director" means the executive director of the Idaho  real
 15    estate commission.
 16        (1820) "Expired  license"  means  the status of a license when the license
 17    period has expired and the license  is  not  renewed  or  provisional  license
 18    granted, and before the license is terminated.
 19        (1921) "Fee  or commission" means a payment, actual, promised or expected,
 20    as compensation for the  performance  of  any  act  requiring  a  real  estate
 21    license.
 22        (202) "Inactive  license"  means  the  status  of  a  license  that is not
 23    expired, terminated, suspended or revoked, and during  which  inactive  period
 24    the  license holder is not authorized to act as or associate with a designated
 25    broker.
 26        (213) "Legal business entity" means and includes any type of  corporation,
 27    partnership,  limited  liability  company  or limited liability partnership, a
 28    governmental entity, trust or other entity capable of conducting business.
 29        (224) "Licensee" means any person who is licensed in accordance with  this
 30    chapter  to  engage in the business or act in the capacity of real estate bro-
 31    ker, associate broker or real estate salesperson.
 32        (235) "Limited broker" means a broker individually qualified to  do  busi-
 33    ness in Idaho, but who may not have associate brokers or salespersons licensed
 34    with that broker.
 35        (246) "Live  presentation"  means,  in  reference  to a real estate course
 36    offering, a real estate course that is personally presented by the  instructor
 37    and personally attended by the student at the same facility.
 38        (257) "Main  office"  means  the  principal location where the real estate
 39    broker is licensed to transact business.
 40        (268) "Person" means and includes an individual,  or  any  legal  business
 41    entity.
 42        (279) "Primary  Idaho  license" means an Idaho real estate license that is
 43    not contingent upon continuance of a license in another state or jurisdiction.
 44        (2830) "Provisional license" means an extension of the  period  of  active
 45    licensure,  beyond  the  licensee's expiration date, granted by the commission
 46    for the purpose of allowing the licensee to complete the continuing  education
 47    requirements  set  forth in section 54-2023, Idaho Code, or for any other pur-
 48    pose allowed by this chapter.
 49        (2931) "Real estate broker" means and includes:
 50        (a)  Any person other than a real estate  salesperson,  who,  directly  or
 51        indirectly,  while acting for another, for compensation or a promise or an
 52        expectation thereof, engages in any of the following: sells, lists,  buys,
 53        or  negotiates,  or  offers  to sell, list, buy or negotiate the purchase,
 54        sale, option or exchange of real estate or any interest therein  or  busi-
 55        ness opportunity or interest therein for others;
  1        (b)  Any actively licensed broker while, directly or indirectly, acting on
  2        the broker's own behalf;
  3        (c)  Any person who represents to the public that the person is engaged in
  4        any of the above activities;
  5        (d)  Any  person  who directly or indirectly engages in, directs, or takes
  6        any part in the procuring of prospects, or in the negotiating  or  closing
  7        of  any  transaction  which  does or is calculated to result in any of the
  8        acts above set forth;
  9        (e)  A dealer in options as defined in this section.
 10        (302) "Real estate salesperson" or "salesperson" means any person who  has
 11    qualified  and  is  licensed  as a real estate salesperson in Idaho under this
 12    chapter, and is licensed under, associated with, and represents  a  designated
 13    broker  in  the  performance of any act described in subsection (2931) of this
 14    section.
 15        (313) "Real estate settlement procedures act" means the real  estate  set-
 16    tlement  procedures  act  of 1974, as amended, 12 U.S.C. section 2601 et seq.,
 17    and as in effect on January 1, 20015.
 18        (324) "Reciprocal license" means an Idaho  real  estate  license  that  is
 19    issued  pursuant  to  the  terms  of  a specific, written reciprocal agreement
 20    between Idaho and another state or jurisdiction, and that is  contingent  upon
 21    the licensee's maintaining a license in the other state or jurisdiction.
 22        (335) "Regulated real estate transaction" means those real estate transac-
 23    tions  for which a real estate license is required under chapter 20, title 54,
 24    Idaho Code.
 25        (346) "Responsible broker" means the designated broker  in  the  regulated
 26    real  estate transaction who is responsible for the accounting and transaction
 27    files for the transaction, in the manner described in section  54-2048,  Idaho
 28    Code.
 29        (357) "Revoked  license" means a license that has been permanently revoked
 30    by the issuing authority.
 31        (368) "Sales  associate"  means  a  salesperson  or  an  associate  broker
 32    licensed under and associated with a designated broker.
 33        (379) "State or jurisdiction" means and includes any  of  the  fifty  (50)
 34    states  and  any foreign jurisdiction that issue real estate licenses substan-
 35    tially similar to those provided for in this chapter.
 36        (3840) "Successfully completed" means,  in  reference  to  a  real  estate
 37    course  offering,  completing  all required course hours and, except where the
 38    licensee seeks continuing education credit for having regularly  attended  the
 39    live  presentation  of  a course, passing a commission-approved final examina-
 40    tion.
 41        (3941) "Surrendered license" means a license  that  has  been  voluntarily
 42    terminated or surrendered by a licensee who, at the time of the voluntary ter-
 43    mination  or  surrender, was under investigation or named in a formal adminis-
 44    trative complaint.
 45        (402) "Suspended license" means a license that has been  temporarily  sus-
 46    pended by the issuing authority.
 47        SECTION  2.  That  Section 54-2012, Idaho Code, be, and the same is hereby
 48    amended to read as follows:
 50    (1)  Requirements  for all individual primary licenses. Unless a qualification
 51    is waived or modified by the commission for good cause and upon  special  con-
 52    sideration, and except as provided in section 54-2015, Idaho Code, each person
 53    seeking a primary Idaho real estate license as a salesperson, associate broker
  1    or designated broker shall meet all of the following minimum qualifications:
  2        (a)  Be an individual;
  3        (b)  Be eighteen (18) years of age or older;
  4        (c)  Furnish  satisfactory  proof  that  the  applicant  graduated from an
  5        accredited high school or its equivalent or holds a certificate of general
  6        education;
  7        (d)  Not have had a real estate  or  other  professional  or  occupational
  8        license  revoked, suspended, or surrendered, or the renewal refused, for a
  9        disciplinary violation involving fraud, misrepresentation or dishonest  or
 10        dishonorable  dealing, in Idaho or any other jurisdiction, within five (5)
 11        years immediately prior to the date the application for license is submit-
 12        ted to the commission;
 13        (e)  Not have been convicted or completed any sentence of confinement  for
 14        or  on  account  of  any misdemeanor involving fraud, misrepresentation or
 15        dishonest or dishonorable dealing, in a state  or  federal  court,  within
 16        five  (5)  years immediately prior to the date the application for license
 17        is submitted to the commission;
 18        (f)  Not have been convicted of any felony in a state  or  federal  court;
 19        provided  that  after  a period of five (5) years from the date the person
 20        was convicted or completed any term of probation, sentence or  confinement
 21        or  period  of  parole, whichever is later, the applicant may make written
 22        request to the  commission  for  an  exemption  review  to  determine  the
 23        applicant's  suitability  for licensure, which the commission shall deter-
 24        mine in accordance with the following:
 25             (i)   The exemption review shall consist of a review of any documents
 26             relating to the felony and any supplemental information  provided  by
 27             the applicant bearing upon his suitability for licensure. The commis-
 28             sion may, at its discretion, grant an interview of the applicant.
 29             (ii)  During  the review, the commission shall consider the following
 30             factors or evidence:
 31                  1.  The severity or nature of the felony;
 32                  2.  The period of time that has passed since  the  felony  under
 33                  review;
 34                  3.  The  number  or  pattern  of felonies or other similar inci-
 35                  dents;
 36                  4.  The circumstances surrounding  the  crime  that  would  help
 37                  determine the risk of repetition;
 38                  5.  The  relationship  of  the crime to the licensed practice of
 39                  real estate; and
 40                  6.  The applicant's activities since  the  crime  under  review,
 41                  such  as employment, education, participation in treatment, pay-
 42                  ment of restitution, or any other factors which may be  evidence
 43                  of current rehabilitation.
 44             (iii) The applicant shall bear the burden of establishing his current
 45             suitability for licensure.
 46        (g)  Complete  all  prelicense  education  requirements as provided for in
 47        section 54-2022, Idaho Code, for a salesperson's or broker's license;
 48        (h)  Pass the commission-approved real estate licensing exam for  a  sales
 49        or  broker license in the time and manner stated in section 54-2014, Idaho
 50        Code, and pay the required exam fees;
 51        (i)  Be fingerprinted for the purpose of a national criminal history check
 52        to determine whether the applicant is qualified for licensure, and pay all
 53        fees associated with the fingerprinting and background check services.  If
 54        the fingerprints are returned to the commission as illegible the applicant
 55        shall,  upon  request from the commission, be fingerprinted again and file
  1        the new fingerprints with the commission. All fees charged by the  commis-
  2        sion and the law enforcement agency for fingerprint services shall be paid
  3        by the applicant;
  4        (j)  Sign  and file with the commission an irrevocable consent to service,
  5        appointing the commission's executive director to act  as  the  licensee's
  6        agent  upon  whom all judicial and other process or legal notices directed
  7        to such licensee may be served, and consenting  that  any  lawful  process
  8        against  the  licensee that is served upon the executive director shall be
  9        of the same legal force and validity as if served upon  the  licensee  and
 10        that  the  authority  shall  continue  in  force  so long as any liability
 11        remains outstanding in this state. Upon receipt of  any  such  process  or
 12        notice,  the  executive director shall immediately mail a copy of the same
 13        by certified mail to the last known business address of the licensee.  All
 14        licensees  shall provide the commission a full and current mailing address
 15        and shall immediately notify the commission in writing of  any  change  in
 16        mailing address within ten (10) business days of the change;
 17        (k)  If  licensing  as  an active salesperson or associate broker, provide
 18        the name and physical address of the main business location of the  desig-
 19        nated  broker  with whom the applicant will be licensed, and the signature
 20        of that broker; or, if licensing as a designated broker, provide the  name
 21        and physical address of the main business location. No Idaho sales associ-
 22        ate  may be licensed under or associated with more than one (1) Idaho bro-
 23        ker at a time;
 24        (l)  Submit a properly completed application and all license,  application
 25        and  other  fees  listed  in  section 54-2020, Idaho Code, or as otherwise
 26        required by statute or rule; and
 27        (m)  Provide satisfactory proof of meeting the mandatory errors and  omis-
 28        sions  insurance  requirement for real estate licensees, as stated in sec-
 29        tion 54-2013, Idaho Code.
 30        (2)  Additional requirements for broker  and  associate  broker  licenses.
 31    Applicants  seeking  a  primary  Idaho license as a broker or associate broker
 32    shall meet the additional following qualifications:
 33        (a)  Provide satisfactory evidence of having been actively engaged,  on  a
 34        full-time  basis,  for two (2) years as a licensed real estate salesperson
 35        within five (5) years immediately prior to the date upon which  the  indi-
 36        vidual   makes   application.   Such   evidence   shall   demonstrate  the
 37        productiveness of the licensed activity to have been  generally  commensu-
 38        rate  with that of other licensees practicing in a similar capacity. List-
 39        ings, sales, options or other licensed activities may be considered by the
 40        commission in determining whether the applicant meets this qualification.
 41             (i)   A broker or associate broker applicant may be required to  fur-
 42             nish  a  report  of  listings and sales accomplished by the applicant
 43             during two (2) or more years within the last five (5) years of licen-
 44             sure immediately prior to the application date;
 45             (ii)  This report shall be certified as correct by the broker or bro-
 46             kers with whom the applicant has been associated,  provided  however,
 47             that  upon  preapproval  by  the commission, the applicant may verify
 48             that the report is correct in an alternative manner;
 49             (iii) The broker experience requirement may be modified  or  reduced,
 50             in  whole or in part, at the discretion of the commission, based upon
 51             the applicant's educational background, or experience in  related  or
 52             affiliated business activities;
 53             (iv)  The  commission  in  its  discretion  may  make such additional
 54             investigation and inquiry relative to the applicant as it shall  deem
 55             advisable;
  1        (b)  Designate a physical office location and a business name. The commis-
  2        sion  may  refuse to issue a license to any person if the business name is
  3        the same as  that of any  person  whose  license  has  been  suspended  or
  4        revoked  or is so similar as to be easily confused with another licensee's
  5        name by members of the general public. However, nothing in this subsection
  6        shall restrict an individual from obtaining a license in his  or  her  own
  7        legal name.
  8        (c)  If  currently  licensed  in Idaho as a salesperson and applying for a
  9        license as an Idaho broker or associate broker, the individual shall  sub-
 10        mit  a  new  fingerprint  card for processing with the application and pay
 11        associated fees.
 12        SECTION 3.  That Section 54-2016, Idaho Code, be, and the same  is  hereby
 13    amended to read as follows:
 16    ness entities. Each legal business entity,  as  defined  in  section  54-2004,
 17    Idaho Code, shall be licensed by the Idaho real estate commission to engage in
 18    the  real  estate business in Idaho and shall make proper application, pay all
 19    required fees, and meet all requirements listed below.
 20        (a)  Each legal business entity shall have a properly licensed  individual
 21        designated broker, who shall be held responsible for the activities of the
 22        licensed entity. The individual designated broker shall also hold the fol-
 23        lowing legal position within the licensed entity:
 24             (i)   Corporation -- an officer;
 25             (ii)  Partnership or limited partnership -- a general partner;
 26             (iii) Limited liability company -- a member or manager.
 27        The  individual  designated broker for any business entity shall have full
 28        authority to act on behalf of the licensed business entity, and shall sub-
 29        mit sufficient and satisfactory proof thereof  with  the  application  for
 30        license.  Such proof shall include a list of the entity's officers, direc-
 31        tors, members or managers, as reflected in  the  minutes,  resolutions  or
 32        other  similar business documents of the entity. All acts of that individ-
 33        ual as designated broker shall be considered acts of the licensed business
 34        entity. Nothing in this section is intended to create liability to a legal
 35        business entity for illegal or fraudulent acts by  the  individual  broker
 36        performed solely on his own account.
 37        (b)  A license issued to a legal business entity, as defined in this chap-
 38        ter,  is  effective  only  as  long  as the individual designated broker's
 39        license is in active status and in effect. If the individual so designated
 40        has a license refused, revoked, suspended or otherwise  made  inactive  by
 41        the commission, or if the individual designated broker voluntarily surren-
 42        ders  the  individual license or ceases to be connected with the entity in
 43        the manner required above, the business entity shall have ten  (10)  busi-
 44        ness days in which to designate another qualified individual as designated
 45        broker  before the entity's license is terminated, and the licenses of all
 46        associated licensees are made inactive.
 47        (c)  One (1) individual may act as designated broker for more than one (1)
 48        licensed business entity, however, all  entities  shall  have  their  main
 49        offices in the same physical location.
 50        (d)  Satisfactory  proof of mandatory errors and omissions insurance shall
 51        be provided for both the individual designated  broker  and  the  licensed
 52        business entity.
 53        (e)  A  legal  business  entity doing business under an assumed name shall
  1        provide satisfactory proof  of  having  legally  filed  a  certificate  of
  2        assumed name with the Idaho secretary of state.
  3        (2)  Sole  proprietorships.  An  individual designated broker not licensed
  4    with a legal business entity, as defined in section 54-2004, Idaho Code, shall
  5    be licensed as a sole proprietor. Each  sole  proprietorship  seeking  a  real
  6    estate license shall meet all of the following requirements:
  7        (a)  A  licensed  sole proprietor doing business under an assumed business
  8        name shall provide satisfactory proof of having legally filed  a  certifi-
  9        cate of assumed name with the Idaho secretary of state;
 10        (b)  Satisfactory  proof of mandatory errors and omissions insurance shall
 11        be provided for the licensed designated broker of a sole proprietorship.
 12        (3)  Multiple business names prohibited. A legal business entity  or  sole
 13    proprietorship shall be licensed under only one (1) business name.
 14        (4)  Branch  offices. Each branch office in which trust funds and original
 15    transaction files are maintained shall be separately  licensed  in  accordance
 16    with the following:
 17        (a)  The  designated broker establishing the branch office shall submit an
 18        application, along with the required fee for the issuance  or  renewal  of
 19        the branch office license.
 20        (b)  The  broker  shall designate in the application a branch manager, who
 21        shall be a salesperson with at least two (2) years' experience or an asso-
 22        ciate broker, to regularly occupy and be responsible for  the  supervision
 23        of  the  branch  office.  When  a  branch  manager  is a regular full-time
 24        employee or is engaged in a full-time activity at a  location  other  than
 25        the  place  he is licensed to do business, a presumption will be made that
 26        the branch manager is unable to responsibly supervise the branch; provided
 27        however, the presumption may be overcome by evidence to the contrary which
 28        the commission determines to be satisfactory.
 29        (c)  A branch manager shall not be licensed to manage more  than  one  (1)
 30        branch office at a time.
 31        (d)  A  license  issued  to a branch office is valid and in effect only as
 32        long as the license of the designated individual remains in active status.
 33        The license certificate of the branch office shall be signed by the desig-
 34        nated broker.
 35        (e)  No separate branch office license or manager is required for business
 36        locations other than the main office unless trust funds or original trans-
 37        action records are kept at the branch.
 38        (f)  If a separate real estate trust account is maintained  for  a  branch
 39        office, all records and related files for that account shall be maintained
 40        at the branch office.
 41        (g)  Each  branch office or business location, whether separately licensed
 42        or not, shall conduct business only in the  licensed  name  of  the  legal
 43        entity or sole proprietor.
 44        (h)  The  current  license  certificates for the branch office, the branch
 45        manager, and for each sales associate conducting business from the  branch
 46        office  shall  be prominently displayed or available for public inspection
 47        at the branch office.
 48        SECTION 4.  That Section 54-2018, Idaho Code, be, and the same  is  hereby
 49    amended to read as follows:
 51    -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
 52    license  shall  be  for  a  period  of one (1)  year plus the months up to and
 53    including the next birth date of the licensee, not to exceed a period  of  two
  1    (2)  years,  and  shall  expire on a date to coincide with the last day of the
  2    month of the birth date of the licensee. Corporations,  partnerships,  limited
  3    liability  companies  and  other entities defined as "persons" in this chapter
  4    shall have established as the equivalent of a birth date, the  birth  date  of
  5    its  designated  broker. Licensed branch offices shall have established as the
  6    equivalent of a birth date, the birth date of the designated  broker  for  the
  7    branch office.
  8        (2)  License  renewal. Each license shall be renewable for a period of two
  9    (2) years by timely submitting a completed application. Applications  must  be
 10    received at the commission office on or before 5 p.m. of the expiration date.
 11        (a)  If renewing an active license, the application shall include:
 12             (i)   Certification  that the applicant has met the commission's con-
 13             tinuing education requirements as set forth in section 54-2023, Idaho
 14             Code;
 15             (ii)  Certification that the applicant has met the  mandatory  errors
 16             and  omissions insurance requirement for real estate licensees as set
 17             forth in section 54-2013, Idaho Code; and
 18             (iii) Payment of all renewal fees established by this chapter  or  by
 19             the commission.
 20        (b)  If  renewing  an inactive license, the application shall include pay-
 21        ment of all renewal fees established by this chapter or by the  commission
 22        by rule.
 23        (3)  Late renewal. If the licensee fails to submit a completed application
 24    for  renewal or pay the renewal fee on or before the expiration date, the com-
 25    mission may accept a later application or payment of the fee, subject to  such
 26    conditions  as  the  commission may require including, but not limited to, the
 27    assessment of a late fee; provided that between the  license  expiration  date
 28    and  the date of renewal of the license, the rights of the licensee under such
 29    license shall be expired, and during such period of  expiration  it  shall  be
 30    unlawful  for  any licensee to do or attempt to offer to do any of the acts of
 31    the kind and nature described in the definitions of real estate broker or real
 32    estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
 33    sation of any kind or expectation thereof. An  expired  license  that  is  not
 34    renewed within one (1) year of the expiration date shall be automatically ter-
 35    minated by the commission and may not be renewed.
 36        (4)  Active  and  inactive  license status. A licensee who is a designated
 37    broker or associated with a designated broker shall hold an active license.  A
 38    licensee who has paid all applicable fees, who is not associated with a desig-
 39    nated broker and who holds a current license that is not revoked, suspended or
 40    terminated  shall  hold  his license on inactive status. A licensee seeking to
 41    change from active license status to inactive license status  shall  have  the
 42    broker submit a change of status application to the commission in the form and
 43    manner approved by the commission. During the period that his license is inac-
 44    tive,  the licensee shall not engage in the business or act in the capacity of
 45    real estate broker, associate broker  or  salesperson.  However,  an  inactive
 46    licensee  may  receive  a referral fee for any referral made during the period
 47    his license was active. A licensee may activate an inactive license by meeting
 48    each of the following:
 49        (a)  If activating as a sales associate,  associating  with  a  designated
 50        Idaho  broker  and having the broker submit an application in the form and
 51        manner approved by the commission;
 52        (b)  If activating as a designated broker, establishing an office  in  the
 53        manner  required by this chapter and submitting an application in the form
 54        and manner approved by the commission;
 55        (c)  Paying the required fee;
  1        (d)  Obtaining and maintaining a policy of errors and omissions  insurance
  2        as  required  by  section  54-2013, Idaho Code, and in accordance with the
  3        rules of the commission and certifying the same; and
  4        (e)  Successfully completing any  continuing  education  requirements,  as
  5        prescribed in section 54-2023, Idaho Code, and certifying the same for the
  6        current license period.
  7        (5)  Continuing  education.  A licensee shall not submit an application to
  8    renew a license on active status or to activate an  inactive  license  without
  9    having  obtained  the  continuing  education  credit hours required by section
 10    54-2023, Idaho Code. A licensee who violates this subsection (5) shall be sub-
 11    ject to disciplinary action by the commission.
 12        (6)  Time required. The commission may request satisfactory proof of  con-
 13    tinuing  education  compliance from any licensee who has certified to the com-
 14    mission that he has completed the requirement. The  request  shall  state  the
 15    time  within  which the proof must be received at the commission office, which
 16    time shall not be less than ten (10) business days.
 17        (7)  Satisfactory proof. Upon request from the  commission,  the  licensee
 18    shall  submit  satisfactory  proof  of  having  met  the  continuing education
 19    requirement set forth in section 54-2023,  Idaho  Code.  "Satisfactory  proof"
 20    shall, for each course, consist of documentation:
 21        (a)  Identifying  the licensee, the title of the course or challenge exam,
 22        the course certification number, the course provider, the number of class-
 23        room hours, the completion date of  the  course  or  challenge  exam,  and
 24        including:
 25             (i)   A transcript of the course taken;
 26             (ii)  A  letter  from the provider verifying successful completion of
 27             the course; or
 28             (iii) A course completion certificate; and
 29        (b)  Identifying the course certification  approval  number  to  establish
 30        that the course is approved for continuing education credit as provided by
 31        section  54-2023,  Idaho Code. The commission may, in its sole discretion,
 32        accept alternative documentation establishing that the course is  approved
 33        for credit.
 34        (8)  Failure  to  submit  proof. A licensee failing to submit satisfactory
 35    proof of completing the continuing education requirement after being requested
 36    to do so by the commission may have his license inactivated by the  commission
 37    and  shall  not be entitled to reactivate the license unless and until he pro-
 38    vides to the commission satisfactory proof that he meets the continuing educa-
 39    tion requirements of section 54-2023, Idaho  Code.  Nothing  in  this  section
 40    shall  limit  the  ability  of  the  commission to investigate or discipline a
 41    licensee for violating subsection (5) of this section  or  for  violating  any
 42    other section of this chapter.
 43        (9)  Change  in  personal  information.  An  individual  licensee, whether
 44    active or inactive, shall provide written notice to  the  commission,  in  the
 45    form  and  manner  approved  by  the commission, of any change of his personal
 46    name, address of personal residence or personal telephone number. Notice shall
 47    be provided within ten (10) days of the change. If the  licensee  has  changed
 48    his  personal name, he shall also submit legal proof of the change and the fee
 49    for issuing a new license certificate and, if an  active  licensee,  he  shall
 50    have  the  broker  submit the written notice of change to the commission. Upon
 51    receipt of the new license certificate or upon its effective  date,  whichever
 52    is  later,  the  broker  shall remove from public view any license certificate
 53    bearing the licensee's former name.
 54        (610) Signature required. No license shall be  valid  unless  the  license
 55    certificate is signed by the licensee.
  1        (711) Effective  dates.  A  request  for  licensure or for license changes
  2    shall become effective when the properly  completed  application,  attachments
  3    and any required fee are received at and approved by the commission. An appli-
  4    cation  that  is  incomplete  or  lacking proper fees shall be returned to the
  5    applicant and no license shall be issued until  a  completed  application  and
  6    proper fees are received at and actually approved by the commission.
  7        (812)  Fees  nonrefundable.  No  licensee shall be entitled to a refund of
  8    any fee after the license or license change has become effective.
  9        SECTION 5.  That Section 54-2019, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
 11        54-2019.  DENIAL  OF LICENSE APPLICATIONS. (1) The commission may deny any
 12    license application, including an application for license  renewal,  upon  the
 13    commission's determination of any of the following:
 14        (a)  The applicant does not possess all of the qualifications required for
 15        the license sought;
 16        (b)  The applicant employed fraud, deception, misrepresentation, misstate-
 17        ment or omission or any unlawful means in applying for a license or taking
 18        the exam;
 19        (c)  Within  the  five-year  period immediately preceding the application,
 20        the applicant committed any act for which a real estate license  in  Idaho
 21        may be revoked or suspended;
 22        (d)  Payment of any licensing fee by check that is returned by the banking
 23        institution due to insufficient funds, unless the reason for not paying on
 24        the check is the fault of the banking institution; or
 25        (e)  There  exist  any other specific facts about the applicant that cause
 26        the commission  to  reasonably  conclude  that  granting  the  applicant's
 27        request  for  Idaho licensure is not in the best interests of the citizens
 28        of the state of Idaho.
 29        (2)  Where any of the facts referenced  above  warranting  denial  of  the
 30    application are not discovered or determined by the commission until after the
 31    license has been issued, such facts may be grounds for the inactivation, expi-
 32    ration, termination, suspension or revocation of the license.
 33        SECTION  6.  That  Section 54-2023, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
 35        54-2023.  CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
 36    of applying to renew an Idaho real estate license on active status,  and  each
 37    Idaho licensee seeking applying to change from inactive to active license sta-
 38    tus,  shall  successfully complete a commission core course, plus the required
 39    number of classroom hours of commission-approved or certified continuing  edu-
 40    cation  coursework  as  provided  in  this  section., plus one (1) commission-
 41    approved core course. Failure to meet the continuing education requirements as
 42    set forth in this section constitutes an incomplete application for a  renewal
 43    of  an  active  license  or  for  a  change in license status from inactive to
 44    active, and, as such, constitutes grounds for denial of the application.
 45        (1)  Required number of classroom hours. The required number of  classroom
 46    hours is as follows:
 47        (a)  Renewing license on active status. A licensee renewing on active sta-
 48        tus effective prior to July 1, 2003, must successfully complete at least a
 49        commission  core course, plus eight (8) classroom hours of continuing edu-
 50        cation,  plus  one  (1)  commission-approved core course, on or before the
 51        current license expiration date. A  licensee  renewing  on  active  status
  1        effective  on or after July 1, 2003, must successfully complete at least a
  2        commission core course, plus sixteen (16) classroom  hours  of  continuing
  3        education,  plus one (1) commission-approved core course, on or before the
  4        current license expiration date.
  5        (b)  Change from inactive to active. A licensee changing from inactive  to
  6        active  license status must meet the continuing education requirements for
  7        an active license for the current licensing period. If the inactive licen-
  8        see renewed his license on or after July 1, 2003, he shall complete a com-
  9        mission core course, plus sixteen (16) classroom hours of continuing  edu-
 10        cation, plus one (1) commission-approved core course, before he can change
 11        to  active  license  status.  If the inactive licensee is within a license
 12        renewal period that began prior to July 1, 2003, he shall complete a  com-
 13        mission  core  course, plus eight (8) classroom hours of continuing educa-
 14        tion, plus one (1) commission-approved core course, before he  can  change
 15        to  active  license status. If the inactive licensee is within his initial
 16        licensing period, no continuing education is required to change to  active
 17        license status.
 18        (2)  No  duplicate  credit.  No  licensee  may obtain continuing education
 19    credit for completing:
 20        (a)  Any core course curriculum for which he has previously received  con-
 21        tinuing education credit; or
 22        (b)  Any  course curriculum for which he has received continuing education
 23        credit in the same license period.
 24        (3)  Excess credits. The classroom hours shall apply to the license period
 25    in which such course is completed; hours completed in excess of those required
 26    for the license period shall not accumulate or be credited for the purposes of
 27    subsequent license renewal periods.
 28        (4)  Commission-ordered education. No  licensee  shall  obtain  continuing
 29    education  credit  for education ordered by the commission as part of a disci-
 30    plinary action.
 31        (5)  Obtaining continuing education classroom hours. In  order  to  obtain
 32    continuing education classroom hours, a licensee may must:
 33        (a)  Successfully  complete  a  commission-approved  continuing  education
 34        course;
 35        (b)  Successfully  complete  a  commission-approved  continuing  education
 36        challenge exam;
 37        (c)  Attend  an  entire regularly-scheduled meeting of the commission. The
 38        licensee shall provide at least seven (7) days' advance notice to the edu-
 39        cation section of the commission of his  intent  to  attend  the  meeting.
 40        Failure  to provide advance notice shall result in no continuing education
 41        hours being credited. A maximum of three (3) hours for this activity shall
 42        be credited for any one (1) meeting in any one (1) license period;
 43        (d)  Successfully complete a commission-approved broker prelicense course,
 44        or a commission-approved continuing education challenge exam, in  advanced
 45        real  estate study. Continuing education credit may be obtained for retak-
 46        ing the same broker prelicense course or challenge exam only if  completed
 47        after  five (5) years of completing the previous course or challenge exam;
 48        or
 49        (e)  Provide to the commission a transcript or course completion  certifi-
 50        cate  of  successful completion of any of the following courses, in accor-
 51        dance with all of the continuing education requirements of  this  section,
 52        without   commission   preapproval   of  the  curriculum,  instructors  or
 53        providers:
 54             (i)   Professional designation  cCourses.  Any  course  developed  by
 55             national  professional  organizations  that  are required in order to
  1             earn professional designations from a national organization  in  spe-
  2             cialized areas of licensed real estate practice; and
  3             (ii)  Courses  accredited  by another profession or jurisdiction. Any
  4             cCourses approved by and offered in satisfaction of  another  profes-
  5             sional  or occupational licensing authority's education requirements,
  6             if the course is within the approved topic areas established  by  the
  7             commission; or
  8             (iii) Courses  offered  by  an  accredited college or university. Any
  9             course offered in satisfaction of a degree requirement by an  accred-
 10             ited college or university if the course is within the approved topic
 11             areas established by the commission.
 12        (f)  If  a certified course instructor, teach a live course for which con-
 13        tinuing education credit may be obtained. Credits shall be granted for the
 14        number of classroom hours taught.
 15        (6)  Licensee duty to keep satisfactory proof.  The  licensee  shall  keep
 16    satisfactory  proof  of  having completed the continuing education requirement
 17    and shall submit such proof at the request of the commission  as  provided  in
 18    section 54-2018, Idaho Code.
 19        (7)  Provisional  license -- Extension of time. A three-month extension of
 20    time for completing the education requirements may be obtained  by  submitting
 21    with  the  renewal  application, or application to activate, satisfactory evi-
 22    dence showing that the applicant was unable  to  comply  with  such  education
 23    requirements. Such evidence may shall be:
 24        (a)  Bona   fide  hardship  preventing  completion  of  the  reinstatement
 25        requirements of an inactive license;
 26        (b)  Health reasons preventing attendance or completion;
 27        (c)  Active duty in the military service with assignment  to  a  permanent
 28        duty  station outside of the state during the last twelve (12) months of a
 29        license period; or
 30        (d)  Other compelling cause beyond the  control  of  the  applicant  while
 31        engaged in the real estate business.
 32    If  such  an  extension  is  granted, the licensee shall receive a provisional
 33    license for a period of time not to exceed three (3) months. No further exten-
 34    sion of time may be granted. A license issued or renewed after an extension of
 35    time has been granted shall retain the original license expiration date. Fail-
 36    ure to satisfy the continuing education requirement within  the  time  granted
 37    shall result in the automatic inactivation of the license.
 38        SECTION  7.  That  Section 54-2025, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
 40        54-2025.  CERTIFICATION REQUIREMENTS. (1) Certification  required.  Except
 41    as  otherwise  provided  in  section 54-2023(5)(e), Idaho Code, cCertification
 42    must be obtained by all course  providers,  course  instructors  teaching  any
 43    course  other  than a continuing education elective course, and for all course
 44    content in order for the course to be credited toward prelicense or continuing
 45    education requirements in Idaho under this chapter.
 46        (2)  Courses, instructors and providers monitored. The commission  or  its
 47    representative may monitor any course for the purpose of course, instructor or
 48    provider certification.
 49        (3)  If  the  commission at any time determines that an instructor, course
 50    or  provider is not meeting the requirements for continued commission approval
 51    or certification, written notification detailing  the  deficiencies  requiring
 52    correction shall be made immediately to the appropriate person. The commission
 53    shall  take  no action to withdraw the certification for thirty (30) days from
  1    the date of the written notice. At the expiration of this period, if the defi-
  2    ciencies have not been corrected to the commission's satisfaction, the commis-
  3    sion may take action to withdraw certification.  Withdrawal  of  certification
  4    shall be governed by the Idaho administrative procedure act, chapter 52, title
  5    67, Idaho Code, and the rules of the commission.
  6        SECTION  8.  That  Section 54-2027, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
  9    ure of a certified course provider to comply with  the  following  duties  and
 10    requirements  shall  be  grounds  for the commission to withdraw or cancel the
 11    provider's certification for cause.
 12        (1)  Discrimination prohibited. Each certified course  provider  shall  at
 13    all  times be in compliance with state and federal laws, rules and regulations
 14    regarding all aspects of equal opportunity and protection of civil rights.  No
 15    course  provider  shall  engage  in  discriminatory practices, nor allow their
 16    course instructor, or method of delivery to violate laws prohibiting discrimi-
 17    nation. Each course provider will fully comply with any  requirements  of  the
 18    Americans  with  disabilities  act  regarding  access  to  and delivery of its
 19    courses, including the  provision  of  accessible  facilities  and  reasonable
 20    accommodations for students.
 21        (2)  Open  access  to course offerings. Registration and attendance at all
 22    certified courses offered for prelicense or continuing education credit  shall
 23    be  open  to all persons meeting normal course prerequisites;. A provided how-
 24    ever, a certified course provider located in or  affiliated  with  a  licensed
 25    real  estate brokerage company or professional association may not refuse rea-
 26    sonable access to any licensee or unlicensed person based on  that  licensee's
 27    or unlicensed person's affiliation with another organization or brokerage com-
 28    pany,  or  the licensee's or unlicensed person's membership status in any pro-
 29    fessional organization unless such course provider has received financial sup-
 30    port from the commission for its particular course offering. However,  Nothing
 31    in this section shall restrict a course provider is not prohibited from charg-
 32    ing  a separate and reasonable course fee to nonaffiliated or nonmember licen-
 33    sees or unlicensed persons.
 34        (3)  Disclosure of fees. All fees charged to a student by  a  course  pro-
 35    vider shall be specified separately in writing. If additional fees are charged
 36    for  supplies,  materials  or  books required for course work coursework, such
 37    fees shall be itemized by the provider and, upon payment  of  such  fees,  the
 38    supplies,  materials  or  books  shall become the property of the student. All
 39    fees and the manner in which they are to be paid shall be stated in a  student
 40    contract,  in  a  form  approved by the commission. The student contract shall
 41    expressly include the provider's policy regarding the return of  fees  in  the
 42    instance  where  the  student  is  dismissed or voluntarily withdraws from the
 43    course.
 44        (4)  Facilities and supportive personnel. The provider shall  provide  the
 45    facilities  and all supportive qualified personnel or approved proctors neces-
 46    sary to adequately implement its real estate program.
 47        (5)  Student records and other requirements. Each Idaho  certified  course
 48    provider shall comply with the following requirements:
 49        (a)  Records.  Maintain  for  each individual student a complete, accurate
 50        and detailed record which shall include  the  total  number  of  hours  of
 51        instruction undertaken and satisfactorily or unsatisfactorily completed in
 52        the area of study;
 53        (b)  Course  completion  lists. Within five (5) working days after conclu-
  1        sion  of each course of instruction, the  provider  shall  submit  to  the
  2        council  or commission an alphabetical list which shall include the names,
  3        addresses and social security  numbers  of  the  students  completing  the
  4        course of instruction, the name of the course, the name of the instructor,
  5        the number of hours included in the course, the date of the course and the
  6        location. The list shall be certified by the instructor from whom the stu-
  7        dents  received  instruction  and an authorized representative of the pro-
  8        vider;
  9        (c)  Grades. The provider will provide written  notification  to  students
 10        who  successfully  or  unsuccessfully complete a course within thirty (30)
 11        days of the course completion date;
 12        (d)  Evaluations. Each Upon the conclusion of each  course,  the  provider
 13        shall  submit acceptable collect written evaluations from students evalua-
 14        tions for each the course and instructor, which  must  be  on  commission-
 15        approved  forms.  The use of using an evaluation form approved by the com-
 16        mission, evaluation form is recommended; provided:
 17             (i)   For each prelicense course, the provider shall promptly  submit
 18             the collected student written evaluations to the commission; and
 19             (ii)  For  each  continuing education course, the provider shall keep
 20             such evaluations for a period of one (1) year from the course comple-
 21             tion date. Upon written request from  the  commission,  the  provider
 22             shall  submit  a  written  summary of the student evaluations for the
 23             course and instructor using a form approved by the commission.
 24        (e)  Course schedules. Each provider shall submit schedules of courses and
 25        instructors as requested by the commission and submit changes promptly  as
 26        they occur. Whenever there is a change in a course including, but not lim-
 27        ited to, a change in curriculum, course length or instructor, the provider
 28        shall promptly notify the commission in writing of the change.
 29        (6)  Instructor  certification not required for continuing education elec-
 30    tive courses. A certified provider may offer a continuing  education  elective
 31    course  without obtaining approval or certification for the course instructor;
 32    provided however, the provider shall maintain resumes  or  other  biographical
 33    information  that  documents the qualifications of the instructor to teach the
 34    continuing education elective course.
 35        (7)  Posting and recording fees. The commission may  require  that  course
 36    providers  pay  to the commission a nonrefundable posting and recording fee to
 37    defray normal expenses incurred in maintaining the  certificate  program.  The
 38    fee amount shall be established by the commission by motion.
 39        (78)  Advertising restrictions:
 40        (a)  Providers may advertise that they are currently certified by the com-
 41        mission, if current certification has been approved, but no such advertis-
 42        ing may state or imply that the provider is an agency of the commission or
 43        the council;
 44        (b)  No  course provider shall provide any information to the public or to
 45        prospective students which is misleading in nature.  Information  is  mis-
 46        leading when, taken as a whole, there is distinct probability that it will
 47        deceive the persons whom it is intended to influence.
 48        (89)  Changes in certification. Certification shall be granted to the par-
 49    ticular  provider  for  the  specific  ownership, provider location, and named
 50    individual in charge as designated in the application for  certification.  Any
 51    changes in ownership, provider location, or provider name, or named individual
 52    in  charge  must be submitted for approval to the commission, at least one (1)
 53    month in advance of the effective date of the proposed changes.
 54        SECTION 9.  That Section 54-2032, Idaho Code, be, and the same  is  hereby
  1    amended to read as follows:
  2        54-2032.  CERTIFICATION  OF  INSTRUCTORS. All individuals wishing to teach
  3    real estate courses for credit toward prelicense or the commission  continuing
  4    education  core  course requirements in Idaho must first be approved or certi-
  5    fied by the commission for each course the individual wishes to teach.
  6        SECTION 10.  That Section 54-2033, Idaho Code, be, and the same is  hereby
  7    amended to read as follows:
  8        54-2033.  INSTRUCTOR  QUALIFICATIONS. (1) Qualified instructors at degree-
  9    granting institutions. A qualified or full-time instructor or professor of  an
 10    accredited  college or university in any state or jurisdiction and who teaches
 11    real estate-related courses is deemed to be an  approved  instructor  of  such
 12    courses, in Idaho, for the purposes of this chapter.
 13        (2)  Other  instructor  applicants. All other individuals wishing to teach
 14    real estate courses for credit toward Idaho prelicense  requirements,  or  the
 15    commission  continuing  education core course requirements must first meet the
 16    following additional qualifications and  receive  separate  certification  for
 17    each course to be taught:
 18        (a)  Unless  this requirement is waived upon special review of the commis-
 19        sion in the manner stated below, no individual instructor seeking certifi-
 20        cation may have had a real estate or other  professional  or  occupational
 21        license suspended or revoked for disciplinary reasons or have been refused
 22        a  renewal of a license issued by the state of Idaho or any other state or
 23        jurisdiction. Further, the individual may not have been convicted,  issued
 24        any  fine, placed on probation, received a withheld judgment, or completed
 25        any sentence of confinement for or on account of any felony, or any misde-
 26        meanor involving fraud, misrepresentation, or  dishonest  or  dishonorable
 27        dealing,  in  a  court  of proper jurisdiction. The failure of a certified
 28        instructor to maintain the  qualifications  required  by  this  subsection
 29        shall be grounds for the commission to withdraw or cancel the instructor's
 30        certificate as provided in section 54-2025(3), Idaho Code.
 31        (b)  Each applicant for certification shall also:
 32             (i)   Submit a properly completed application for instructor certifi-
 33             cation  in  the  form and manner required by the commission, with all
 34             proper fees;
 35             (ii)  File a properly executed "irrevocable  consent  to  service  of
 36             process"  in  the  manner  and  form prescribed by the commission and
 37             according to section 54-2012(1)(j), Idaho Code;
 38             (iii) Qualify as at least one (1) of the following:
 39                  1.  An attorney at law actively licensed in any state or  juris-
 40                  diction  with  at least five (5) years of active practice in the
 41                  areas of study proposed to be taught, and who has also  success-
 42                  fully completed a commission-approved instructor training course
 43                  or procedure, including a student teaching period;
 44                  2.  An  individual  currently  approved or certified and in good
 45                  standing as a real estate instructor for  the  same  or  similar
 46                  course material in any other state or jurisdiction;
 47                  3.  An  individual who is appointed to teach a nationally recog-
 48                  nized real estate course which is generally  accepted  in  other
 49                  states or jurisdictions; or
 50                  4.  An  individual  with  at  least  five  (5) years active real
 51                  estate-related experience who has also successfully completed  a
 52                  commission-approved  instructor  training procedure, including a
  1                  student teaching period.
  2        SECTION 11.  That Section 54-2036, Idaho Code, be, and the same is  hereby
  3    amended to read as follows:
  4        54-2036.  CERTIFICATION  OF  COURSES AND COURSE CONTENT. Every real estate
  5    course offered for prelicense or continuing education credit for an Idaho real
  6    estate license shall first be certified  and  accredited  by  the  Idaho  real
  7    estate commission.
  8        (1)  An application for course certification must be submitted in the form
  9    and  manner  required  by  the  commission, with proper fees, at least two (2)
 10    months prior to contemplated date of the first course offering.
 11        (2)  Minimum requirements for course certification:
 12        (a)  Each course must be certified individually, offered  only  through  a
 13        provider  certified or approved in Idaho, and taught by an instructor cer-
 14        tified or approved in Idaho in accordance with this chapter.
 15        (b)  Each prelicense course must contain at least  twenty  (20)  classroom
 16        hours,  and each continuing education course must contain at least two (2)
 17        classroom hours.
 18        (c)  Exam time shall not  be  included  as  approved  classroom  hours  of
 19        instruction.
 20        (d)  A  classroom  hour is defined as a period of at least fifty (50) min-
 21        utes of actual instruction.
 22        (e)  Distance learning and alternative course delivery courses. The length
 23        of design and delivery of each distance learning course shall be certified
 24        by the national association of real estate license  law  officials  or  by
 25        another institution whose certification standards are deemed equivalent by
 26        the  commission.  The  credit  hours  for a certified distance learning or
 27        other alternative course shall be based upon  the  same  number  of  hours
 28        which  would  be  awarded  in  credited  for  an equivalent classroom live
 29        course, and must include a commission-approved, proctored final exam.  The
 30        commission  may,  by motion, adopt national standards and require national
 31        certification for the design and delivery of  noncommission-produced  dis-
 32        tance learning courses.
 33        (f)  Each  prelicense course must include a proctored, commission-approved
 34        final exam requiring a minimum passing score of seventy percent (70%).
 35        (g)  Continuing education course exam.
 36             (i)   A licensee may receive continuing education course credit with-
 37             out having to take or pass an exam if the licensee personally attends
 38             the entire live presentation of an approved course.
 39             (ii)  The commission may substitute all or a portion of the  continu-
 40             ing  education  coursework required when a licensee shows evidence of
 41             passing a commission-approved challenge exam.
 42        (h)  Exam retake policy.  Each  certified  course  provider  may,  at  its
 43        option,  allow  students who fail the initial course exam one (1) opportu-
 44        nity to retake the approved course exam within the following time periods:
 45             (i)   Prelicense course exam retakes must occur within one (1)  month
 46             of the original course exam;
 47             (ii)  Continuing  education  course challenge exam retakes must occur
 48             within that course's certification period;
 49             (iii) If a student fails the retake exam for any prelicense  or  con-
 50             tinuing  education  course, the student must repeat the entire course
 51             and pass the final exam to receive credit.
 52        (i)  Challenge exams. A student shall not earn credit for  any  prelicense
 53        course  by  challenging and passing the course exam without otherwise com-
  1        pleting all course requirements.
  2        (3)  Approved topics. The commission shall  establish  specific,  approved
  3    topics  for  course  content  for  prelicense courses and continuing education
  4    courses as it deems appropriate to current real estate practices and laws.
  5        SECTION 12.  That Section 54-2041, Idaho Code, be, and the same is  hereby
  6    amended to read as follows:
  7        54-2041.  TRUST ACCOUNTS AND ENTRUSTED PROPERTY. (1) A licensed Idaho real
  8    estate  broker  shall  be  responsible for all moneys or property entrusted to
  9    that broker or to any licensee representing the broker.
 10        (2)  Immediately upon receipt, the broker shall deposit  entrusted  moneys
 11    in  a neutral, qualified trust fund account, in Idaho, and shall properly care
 12    for any entrusted property.
 13        (3)  Only moneys relating to a regulated real estate  transaction  may  be
 14    deposited  in  the  broker's  real estate trust fund account. Entrusted moneys
 15    shall not be commingled with moneys of the broker, firm or agent,  except  for
 16    that  minimum  amount  that  may  be  required  to open and maintain the trust
 17    account or as otherwise allowed by subsection (7) of  section  54-2042,  Idaho
 18    Code.
 19        (4)  The real estate broker shall remain fully responsible and accountable
 20    for  all  entrusted moneys and property until a full accounting has been given
 21    to the parties involved.
 22        SECTION 13.  That Section 54-2042, Idaho Code, be, and the same is  hereby
 23    amended to read as follows:
 25    A broker may establish one (1) or more real estate  trust  accounts  but  each
 26    account must meet all requirements of this chapter, including the following:
 27        (1)  Each  trust  account  must  be established at an approved depository,
 28    which must be located in the state of Idaho, and must be  noninterest-bearing,
 29    except  as allowed in section 54-2043, Idaho Code, or as otherwise may be pro-
 30    vided by law.  Approved depositories are state or  federally  chartered  banks
 31    and  trust  companies,  state or federally chartered savings and loan associa-
 32    tions, properly licensed title insurance companies, in Idaho, or  an  actively
 33    licensed attorney at law. in Idaho.
 34        (2)  Each  account  must  be  identified  by  the  term "real estate trust
 35    account," on checks, deposit slips, and with the depository.
 36        (3)  Each trust account must  be  established  and  maintained  under  the
 37    licensed  business  name of the broker, and shall be under the full control of
 38    the broker.
 39        (4)  Each broker trust account must have a separate and  complete  set  of
 40    records,  which  must  consist of a monthly accounting, deposits, charges, and
 41    withdrawals or checks, even if the moneys are on deposit with a title company,
 42    attorney or other approved depository. The broker is responsible for  ensuring
 43    that these separate account records are provided by the depository.
 44        (5)  Funds  deposited  in  a  real estate trust account must be subject to
 45    withdrawal on demand at the order or direction of the  broker  at  all  times,
 46    even if deposited with a title company or other approved depository.
 47        (6)  A  commission-approved  form giving notice of opening a trust account
 48    and giving authorization for the commission to inspect  the  account  must  be
 49    completed  for  each trust account, signed by the broker and an officer of the
 50    bank or depository and returned to the commission.
 51        (7)  No deposits to the trust account shall be made of funds  that  belong
  1    to  the  broker or real estate firm, except that the broker may deposit broker
  2    or firm funds for the purpose of opening and maintaining the account  and  for
  3    the  payment  of anticipated bank service charges for the trust account. In no
  4    event shall the balance of broker or firm funds in the  account  exceed  three
  5    hundred  dollars ($300). Maintenance funds shall not be disbursed for any pur-
  6    pose other than to cover bank charges charged directly to the trust account by
  7    the bank.
  8        (8)  An entity not specified as an approved escrow depository  in  subsec-
  9    tion (1) of this section, may be accepted and approved by the commission as an
 10    escrow depository upon disclosure of the following:
 11        (a)  The details of the entity's financial structure;
 12        (b)  The  amount and terms of errors and omissions insurance and any bond-
 13        ing;
 14        (c)  A copy of the entity's last audit and financial statement;
 15        (d)  A copy of any license or certificate issued to the entity; and
 16        (e)  Any other information that may help the commission make its  determi-
 17        nation.
 18        SECTION  14.  That Section 54-2043, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
 20        54-2043.  INTEREST-BEARING TRUST ACCOUNTS. The broker may deposit funds in
 21    a separate,  interest-bearing  trust  account  for  a  single  transaction  if
 22    directed  in  writing by both parties to the transaction, and only if the fol-
 23    lowing additional requirements are met:
 24        (1)  The interest-bearing trust account must be established in  accordance
 25    with  all  requirements in section 54-2042, Idaho Code. However, the interest-
 26    bearing trust account shall be created at an approved depository. in Idaho.
 27        (2)  The deposit shall be made in the name of  the  broker,  as  described
 28    above,  and each such account shall contain only the funds relating to one (1)
 29    transaction.
 30        (3)  The interest-bearing trust account, when created  for  this  purpose,
 31    must  allow  for  withdrawal of the funds upon the broker's demand, unless all
 32    parties direct the broker in writing to do otherwise.
 33        (4)  There must be a written agreement signed by both the  buyer  and  the
 34    seller  stating  who is to receive the interest accrued from the deposit. This
 35    agreement is to be retained by the responsible broker in the transaction  file
 36    with a copy given to the buyer and the seller.
 37        SECTION  15.  That Section 54-2056, Idaho Code, be, and the same is hereby
 38    amended to read as follows:
 40    Termination  of  licensed  association.  A  sales associate who terminates his
 41    licensed association with a broker shall provide the broker written notice  of
 42    the  termination and no later than three (3) business days after the effective
 43    date. A broker who terminates the licensed association of  a  sales  associate
 44    shall  provide  the  associate  written notice of the termination and no later
 45    than three (3) business days after the effective date.  A  licensee's  written
 46    notice  to  the commission does not relieve him of the duty to provide written
 47    notice to the other licensee that he is terminating the licensed  association.
 48    Upon  written  notice of the termination of a sales associate's licensed busi-
 49    ness association with a broker, whether by the broker or by the sales  associ-
 50    ate,  the  broker shall remove from public view the former associate's license
 51    certificate.
  1        (2)  New association. The broker shall submit a  written  application,  in
  2    the  form  and  manner  approved  by  the commission, for each sales associate
  3    licensing with the broker.
  4        (3)  Termination for cause. Any broker who terminates the association of a
  5    sales associate for the violation of any of the provisions of sections 54-2059
  6    through 54-2065, Idaho Code, shall, promptly within ten (10) business days  of
  7    the termination, notify the commission, in writing, of the termination and the
  8    facts giving rise to the termination.
  9        (4)  Closing  a  branch  office. Immediately upon closing a branch office,
 10    the broker shall provide the commission written notice of the closure advising
 11    of the new status of all licensees licensed with the closed branch. The broker
 12    shall immediately remove from public view the branch office  license  certifi-
 13    cate  and  the  license  certificates  of all licensees licensed in the branch
 14    office.
 15        (5)  Property of the broker. Upon termination of the business relationship
 16    as a sales associate licensed under a broker, the sales associate shall  imme-
 17    diately turn over to the broker all listing information and listing contracts,
 18    keys,  purchase  and  sale  agreements  and similar contracts, buyer brokerage
 19    information and contracts, and other property belonging to the broker. A sales
 20    associate shall not engage in any practice or conduct, directly or indirectly,
 21    which encourages, entices or induces clients of the broker  to  terminate  any
 22    legal  business  relationship  with the broker unless he first obtains written
 23    permission of the broker.
 24        (6)  Location of  trust  accounts  and  file  records.  When  an  actively
 25    licensed  broker  changes  to a license status other than that of a designated
 26    broker, that individual must notify the commission in writing of the  location
 27    of  all  trust  accounts  and  transaction  file  records which the broker was
 28    responsible for during the term of licensure as  a  designated  broker.  These
 29    records shall be available to the commission for three (3) years following the
 30    year in which each transaction was closed.
 31        (7)  Terminating  relationships between a broker and a sole proprietorship
 32    owned by a person other than the broker. When a broker for a sole  proprietor-
 33    ship,  owned by a person other than the broker, terminates an association with
 34    the owner, all records and trust account funds shall become the  property  of,
 35    and  be maintained and disbursed by, the terminating broker in accordance with
 36    this chapter and applicable rules promulgated thereunder. The terminating bro-
 37    ker shall deliver, upon request made in writing by the  clients  and  the  new
 38    broker  of that sole proprietorship, such records and trust account funds per-
 39    taining to that client, to the  new  broker  who  shall  thereafter  have  the
 40    responsibility  for  preservation  and  disbursement,  in accordance with this
 41    chapter and applicable rules promulgated thereunder.
 42        SECTION 16.  That Section 54-2062, Idaho Code, be, and the same is  hereby
 43    amended to read as follows:
 45    TIVE ACTIONS -- LICENSEE TO REPORT TO COMMISSION. (1) The commission may  also
 46    take  any  disciplinary  action,  including, but not limited to, suspension or
 47    revocation of a license where the licensee:
 48        (a)  Has an order or determination of debarment, suspension, or any  limi-
 49        tation  on  participation  in  government loan programs issued against the
 50        licensee for misconduct; or
 51        (b)  Has a real estate or other professional license,  issued  by  another
 52        jurisdiction,  suspended or revoked for a disciplinary violation involving
 53        fraud, misrepresentation, or dishonest or dishonorable dealings. A  certi-
  1        fied copy of the order of the administrative agency in the other jurisdic-
  2        tion shall be prima facie evidence of the suspension or revocation.
  3        (2)  A licensee against whom a final administrative action has been taken,
  4    as described in subsection (1) of this section, shall, within twenty (20) days
  5    of  such  action,  forward to the commission a copy of the legal document evi-
  6    dencing the same.

Statement of Purpose / Fiscal Impact

                    STATEMENT OF PURPOSE
                        RS 14479c1

This is the IREC's "Annual Housekeeping Bill."  This bill will 
correct inconsistencies existing within the chapter; move 
administrative rules into the statute; and update provisions to 
conform to current technology, business practices, and changes 
in state law.  This bill also clarifies the educational 
requirements for renewing an active real estate license, and the 
consequences and penalties to a licensee who renews his license 
without having first met those requirements.  The bill also 
shifts responsibility to the real estate schools to ensure that 
the courses being offered for continuing education credit are 
taught by competent instructors.  The bill further authorizes 
brokerages and professional associations to restrict their 
certified course offerings to members.

                        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.

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

Statement of Purpose/Fiscal Impact                      S 1010