2006 Legislation
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SENATE BILL NO. 1360 – Real estate license, qualification


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S1360.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE - Amends existing law relating to Idaho real estate
license law to revise definitions; to revise license exam requirements; to
revise language applicable to license expiration and requests for licensure
changes; to revise continuing education requirements; to require license
numbers for licensed students completing courses of instruction; to revise
provisions applicable to instructor qualifications; to revise exam retake
policy provisions; and to reference waivers or modifications of prelicense
02/08    Senate intro - 1st rdg - to printing
02/09    Rpt prt - to Com/HuRes
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt(Harper), Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Keough
    Floor Sponsor - Goedde
    Title apvd - to House
02/23    House intro - 1st rdg - to Bus
03/02    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 60-0-10
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Collins, Deal, Denney, Edmunson, Eskridge, Field(18),
      Field(23), Garrett, Hart, Henderson, Jaquet, Kemp, Lake, LeFavour,
      Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell,
      Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ringo,
      Roberts, Rusche, Rydalch, Sali, Schaefer, Shepherd(2), Shepherd(8),
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
      Trail, Wood
      NAYS -- None
      Absent and excused -- Black, Clark, Crow, Ellsworth, Harwood,
      Henbest, Ring, Sayler, Wills, Mr. Speaker
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed - Sp signed
03/20    To Governor
03/22    Governor signed
         Session Law Chapter 166
         Effective: 07/01/06

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                       IN THE SENATE
                                    SENATE BILL NO. 1360
  1                                        AN ACT
 16    Be It Enacted by the Legislature of the State of Idaho:
 17        SECTION  1.  That  Section 54-2004, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
 19        54-2004.  DEFINITIONS. As used in this chapter:
 20        (1)  "Accredited college or university" means an institution accredited by
 21    the regional accrediting associations, as reported in the most current  publi-
 22    cation of the accredited institutions of postsecondary education.
 23        (2)  "Active  license"  means the status of a real estate license that has
 24    not been inactivated, expired, terminated, suspended or revoked.
 25        (3)  "Associate broker" means an individual who has  qualified  personally
 26    as  a  real  estate broker in Idaho under this chapter, but is licensed under,
 27    associated with and represents a designated broker in the performance  of  any
 28    act described in subsection (312) of this section.
 29        (4)  "Branch  office"  means  an office operated by a licensed real estate
 30    broker or licensed legal business entity, separate and  apart  from  the  main
 31    office. A branch office may be licensed or unlicensed, in accordance with this
 32    chapter.
 33        (5)  "Brokerage  agreement"  means  a  written  contract  between a buyer,
 34    seller, or both, and a real estate brokerage for agency  representation  in  a
 35    regulated real estate transaction.
 36        (6)  "Brokerage company" means a real estate business, whether a sole pro-
 37    prietorship,  a  legal  entity,  or  any other licensed person engaged in acts
 38    requiring a real estate license in Idaho, and which is conducting  or  holding
 39    itself out as conducting the business of real estate through a designated bro-
 40    ker.
 41        (6)  "Brokerage representation agreement" means a written contract between
 42    a  buyer,  seller, or both, and a real estate brokerage for agency representa-
 43    tion in a regulated real estate transaction.
  1        (7)  "Business conduct and office operations course" means,  in  reference
  2    to  a  real  estate course offering, the component of the advanced real estate
  3    course that is required in order to obtain a broker license and  that  teaches
  4    business  practices  and office operations of the brokerage, including record-
  5    keeping, trust account procedures and the laws governing those practices.
  6        (8)  "Business name" means the name in  which  the  brokerage  company  is
  7    licensed by the commission.
  8        (89)  "Business  opportunity"  means and includes an established business,
  9    good will of an established business, or any interest therein, or any one  (1)
 10    or  combination  thereof,  where  a  sale  or  transfer of an interest in land
 11    including, but not limited to, an assignment of a lease, is  involved  in  the
 12    transaction.
 13        (910) "Commission" means the Idaho real estate commission, unless the con-
 14    text clearly indicates a different meaning.
 15        (101) "Commission core course" means, in reference to a real estate course
 16    offering, the course containing curriculum, identified by the commission, that
 17    stresses  current  trends in real estate practices and changes in laws in real
 18    estate related industries. A core course must contain no more  than  four  (4)
 19    classroom hours of instruction.
 20        (112) "Continuing  education  elective  course" means a real estate course
 21    offering, other than the commission core course for which continuing education
 22    credit hours may be obtained as provided in section 54-2023, Idaho Code.
 23        (123) "Convicted" means a plea of nolo contendere or guilty, a  jury  ver-
 24    dict  of guilty or a court decision of guilt whether or not a judgment or sen-
 25    tence has been imposed, withheld or suspended.
 26        (134) "Cooperative sale" means a transaction involving  two  (2)  or  more
 27    brokers.
 28        (145) "Council" means the Idaho real estate education council.
 29        (156) "Dealer in options" means any person, firm, partnership, association
 30    or corporation who shall directly or indirectly take, obtain or use options to
 31    purchase, exchange, lease option or lease purchase real property or any inter-
 32    est  therein  for another or others whether or not the options shall be in his
 33    or its name and whether or not title to the property shall  pass  through  the
 34    name  of  the person, firm, partnership, association or corporation in connec-
 35    tion with the purchase, sale, exchange, lease option or lease purchase of  the
 36    real property, or interest therein.
 37        (167) "Designated  broker"  means  an individual who is licensed as a real
 38    estate broker in Idaho and who is designated by the brokerage  company  to  be
 39    responsible for the supervision of the brokerage company and the activities of
 40    any associated licensees in accordance with this chapter.
 41        (178) "Distance  learning  course"  means,  in  relation  to a real estate
 42    course offering, a real estate course that is delivered, not as a live course,
 43    but through a medium in which the instructor and student are separated by dis-
 44    tance or time.
 45        (189) "Double contract" means two (2) or more written  or  unwritten  con-
 46    tracts  of sale, purchase and sale agreements, loan applications, or any other
 47    agreements, one (1) of which is not made known to the prospective loan  under-
 48    writer or the loan guarantor, to enable the buyer to obtain a larger loan than
 49    the true sales price would allow, or to enable the buyer to qualify for a loan
 50    which  he  or she otherwise could not obtain. An agreement or loan application
 51    is not made known unless it is disclosed in writing to  the  prospective  loan
 52    underwriter or loan guarantor.
 53        (1920) "Executive director" means the executive director of the Idaho real
 54    estate commission.
 55        (201) "Expired  license"  means  the  status of a license when the license
  1    period has expired and the license  is  not  renewed  or  provisional  license
  2    granted, and before the license is terminated.
  3        (212) "Fee  or  commission" means a payment, actual, promised or expected,
  4    as compensation for the  performance  of  any  act  requiring  a  real  estate
  5    license.
  6        (223) "Inactive  license"  means  the  status  of  a  license  that is not
  7    expired, terminated, suspended or revoked, and during  which  inactive  period
  8    the license holder is  not authorized to act as or associate with a designated
  9    broker.
 10        (234) "Legal  business entity" means and includes any type of corporation,
 11    partnership, limited liability company or  limited  liability  partnership,  a
 12    governmental entity, trust or other entity capable of conducting business.
 13        (245) "Licensee"  means any person who is licensed in accordance with this
 14    chapter to engage in the business or act in the capacity of real  estate  bro-
 15    ker, associate broker or real estate salesperson.
 16        (256) "Limited  broker"  means a broker individually qualified to do busi-
 17    ness in Idaho, but who may not have associate brokers or salespersons licensed
 18    with that broker.
 19        (267) "Live presentation" means, in reference  to  a  real  estate  course
 20    offering,  a real estate course that is personally presented by the instructor
 21    and personally attended by the student at the same facility.
 22        (278) "Main office" means the principal location  where  the  real  estate
 23    broker is licensed to transact business.
 24        (289) "Person"  means  and  includes  an individual, or any legal business
 25    entity.
 26        (2930) "Primary Idaho license" means an Idaho real estate license that  is
 27    not contingent upon continuance of a license in another state or jurisdiction.
 28        (301) "Provisional  license"  means  an  extension of the period of active
 29    licensure, beyond the licensee's expiration date, granted  by  the  commission
 30    for  the purpose of allowing the licensee to complete the continuing education
 31    requirements set forth in section 54-2023, Idaho Code, or for any  other  pur-
 32    pose allowed by this chapter.
 33        (312) "Real estate broker" means and includes:
 34        (a)  Any  person  other  than  a real estate salesperson, who, directly or
 35        indirectly, while acting for another, for compensation or a promise or  an
 36        expectation  thereof, engages in any of the following: sells, lists, buys,
 37        or negotiates, or offers to sell, list, buy  or  negotiate  the  purchase,
 38        sale,  option  or exchange of real estate or any interest therein or busi-
 39        ness opportunity or interest therein for others;
 40        (b)  Any actively licensed broker while, directly or indirectly, acting on
 41        the broker's own behalf;
 42        (c)  Any person who represents to the public that the person is engaged in
 43        any of the above activities;
 44        (d)  Any person who directly or indirectly engages in, directs,  or  takes
 45        any  part  in the procuring of prospects, or in the negotiating or closing
 46        of any transaction which does or is calculated to result  in  any  of  the
 47        acts above set forth;
 48        (e)  A dealer in options as defined in this section.
 49        (323) "Real  estate salesperson" or "salesperson" means any person who has
 50    qualified and is licensed as a real estate salesperson  in  Idaho  under  this
 51    chapter,  and  is licensed under, associated with, and represents a designated
 52    broker in the performance of any act described in  subsection  (312)  of  this
 53    section.
 54        (334) "Real  estate  settlement procedures act" means the real estate set-
 55    tlement procedures act of 1974, as amended, 12 U.S.C. section  2601  et  seq.,
  1    and as in effect on January 1, 2005.
  2        (34) "Reciprocal  license"  means  an  Idaho  real  estate license that is
  3    issued pursuant to the terms  of  a  specific,  written  reciprocal  agreement
  4    between  Idaho  and another state or jurisdiction, and that is contingent upon
  5    the licensee's maintaining a license in the other state or jurisdiction.
  6        (35) "Regulated real estate transaction" means those real estate  transac-
  7    tions  for which a real estate license is required under chapter 20, title 54,
  8    Idaho Code.
  9        (36) "Responsible broker" means the designated  broker  in  the  regulated
 10    real  estate transaction who is responsible for the accounting and transaction
 11    files for the transaction, in the manner described in section  54-2048,  Idaho
 12    Code.
 13        (37) "Revoked  license"  means a license that has been permanently revoked
 14    by the issuing authority.
 15        (38) "Sales associate" means a salesperson or an associate broker licensed
 16    under and associated with a designated broker.
 17        (39) "State or jurisdiction" means and includes  any  of  the  fifty  (50)
 18    states  and  any foreign jurisdiction that issue real estate licenses substan-
 19    tially similar to those provided for in this chapter.
 20        (40) "Successfully completed" means, in reference to a real estate  course
 21    offering,  completing all required course hours and, except where the licensee
 22    seeks continuing education credit for having regularly attended the live  pre-
 23    sentation of a course, passing a commission-approved final examination.
 24        (41) "Surrendered  license" means a license that has been voluntarily ter-
 25    minated or surrendered by a licensee who, at the time of the voluntary  termi-
 26    nation  or surrender, was under investigation or named in a formal administra-
 27    tive complaint.
 28        (42) "Suspended license" means a license that has  been  temporarily  sus-
 29    pended by the issuing authority.
 30        SECTION  2.  That  Section 54-2014, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
 32        54-2014.  LICENSE EXAMS. (1) Exam required. Unless a  written  certificate
 33    of  waiver is obtained from the commission and submitted with the application,
 34    an individual applicant seeking a primary Idaho real estate license shall take
 35    and pass the national portion and the Idaho state portion of an approved  exam
 36    administered  by  or  through the commission. The license applicant shall take
 37    and pass the required portion or portions of the  exam  within  no  more  than
 38    twelve (12) months immediately preceding the date of the license application.
 39        (2)  Preregistration Registration for the exam and exam fee. An individual
 40    may   preregister  to  sit  and  take  the  exam  by  submitting  a  completed
 41    preregistration exam application form and a shall register for the exam  in  a
 42    manner  authorized by the commission and shall pay at the time of registration
 43    the nonrefundable exam fee in an amount established by motion of  the  commis-
 44    sion,  not  to exceed one hundred dollars ($100). The exam application and fee
 45    shall be submitted directly to the testing company administering the exam,  or
 46    to  the  commission, as specified by the commission. Failure to appear for any
 47    reason for the exam shall cancel the exam application. A new exam  application
 48    and fee shall be required to take the exam at a future time.
 49        (3)  Walk-in  registration  for  the  exam.  An individual may appear at a
 50    testing center and take the exam without having preregistered so long as seat-
 51    ing remains available at the center. The individual shall submit  a  completed
 52    exam  application and a walk-in exam fee in an amount established by motion of
 53    the commission, not to exceed one hundred ten dollars ($110), at the time  the
  1    individual is admitted to take the exam.
  2        (4)  Waiver  of national portion of exam. An individual who has obtained a
  3    written certificate from the commission waiving the national  portion  of  the
  4    exam  shall  be  required to take and pass the Idaho state portion of the exam
  5    only. The certificate of waiver and exam  fee  shall  be  submitted  with  the
  6    application for exam.
  7        (54)  Failure  to  appear  for the exam or to pass the exam. An individual
  8    who fails to appear for the exam or to pass the exam may reapply  register  to
  9    take  another exam. The individual must complete a new exam application regis-
 10    ter and submit a new exam fee.
 11        (65)  The commission shall establish, by motion, fees for the exam  which,
 12    in  its discretion, are sufficient to raise the revenue required to administer
 13    the exam. Fees so established shall remain effective from year to year and may
 14    be altered only upon proper motion by the commission.
 15        SECTION 3.  That Section 54-2015, Idaho Code, be, and the same  is  hereby
 16    amended to read as follows:
 18    SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
 19    ely licensed as a real estate broker or salesperson in another state or juris-
 20    diction at the time of application for a primary  Idaho  real  estate  license
 21    shall  meet  all qualifications listed in section 54-2012, Idaho Code, for the
 22    type of license sought, except that the applicant shall  not  be  required  to
 23    furnish  proof of the educational prerequisites described in subsection (1)(g)
 24    of section 54-2012, Idaho Code; provided however, an individual applying to be
 25    licensed as a designated broker of a business entity or  sole  proprietorship,
 26    or  as  a branch office manager of a licensed branch office, shall comply with
 27    the requirements of section 54-2016, Idaho Code. In addition,  such  applicant
 28    shall  provide  a  current, certified license history from the other licensing
 29    state or jurisdiction, which history shall indicate  any  disciplinary  action
 30    taken  against  the applicant's license by the other licensing state or juris-
 31    diction, and the status and standing of the applicant's license in  the  other
 32    state or jurisdiction.
 33        (2)  An individual who holds an active license in good standing in another
 34    state  or  jurisdiction  may, upon written request to the commission, obtain a
 35    certificate of waiver of the national portion of the exam required  for  Idaho
 36    licensure.  A  request  for  waiver  shall  indicate  the individual's mailing
 37    address to which the commission is to deliver the certificate of  waiver.  The
 38    certificate of waiver shall be submitted with the application for exam as pro-
 39    vided in subsection (43) of section 54-2014, Idaho Code.
 40        (3)  An individual who is currently and actively licensed in another state
 41    or  jurisdiction  that  administers a real estate exam may be issued a primary
 42    Idaho license without further exam or proof of educational prerequisites  pur-
 43    suant  to written agreement between Idaho and the other state or jurisdiction,
 44    provided that such other state or jurisdiction allows  the  issuance  of  real
 45    estate  licenses in substantially the same manner as set forth in this subsec-
 46    tion; provided however, an individual applying to be licensed as a  designated
 47    broker of a business entity or sole proprietorship, or as a branch office man-
 48    ager  of  a licensed branch office, shall comply with the requirements of sec-
 49    tion 54-2016, Idaho Code, notwithstanding the terms of the agreement.
 50        SECTION 4.  That Section 54-2018, Idaho Code, be, and the same  is  hereby
 51    amended to read as follows:
  2    -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
  3    license  shall  be  for  a  period  of  one (1) year plus the months up to and
  4    including the next birth date of the licensee, not to exceed a period  of  two
  5    (2)  years,  and  shall  expire on a date to coincide with the last day of the
  6    month of the birth date of the licensee. Corporations,  partnerships,  limited
  7    liability  companies  and  other entities defined as "persons" in this chapter
  8    shall have established as the equivalent of a birth date, the  birth  date  of
  9    its  designated  broker. Licensed branch offices shall have established as the
 10    equivalent of a birth date, the birth date of the designated  broker  for  the
 11    branch office.
 12        (2)  License  renewal. Each license shall be renewable for a period of two
 13    (2) years by timely submitting a completed application. Applications  must  be
 14    received at the commission office on or before 5 p.m. of the expiration date.
 15        (a)  If renewing an active license, the application shall include:
 16             (i)   Certification  that the applicant has met the commission's con-
 17             tinuing education requirements as set forth in section 54-2023, Idaho
 18             Code;
 19             (ii)  Certification that the applicant has met the  mandatory  errors
 20             and  omissions insurance requirement for real estate licensees as set
 21             forth in section 54-2013, Idaho Code; and
 22             (iii) Payment of all renewal fees established by this chapter  or  by
 23             the commission.
 24        (b)  If  renewing  an inactive license, the application shall include pay-
 25        ment of all renewal fees established by this chapter or by the  commission
 26        by rule.
 27        (3)  Late renewal. If the licensee fails to submit a completed application
 28    for  renewal or pay the renewal fee on or before the expiration date, the com-
 29    mission may accept a later application or payment of the fee, subject to  such
 30    conditions  as  the  commission may require including, but not limited to, the
 31    assessment of a late fee; provided that between the  license  expiration  date
 32    and  the date of renewal of the license, the rights of the licensee under such
 33    license shall be expired, and during such period of  expiration  it  shall  be
 34    unlawful  for  any licensee to do or attempt to offer to do any of the acts of
 35    the kind and nature described in the definitions of real estate broker or real
 36    estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
 37    sation of any kind or expectation thereof. An  expired  license  that  is  not
 38    renewed within one (1) year of the expiration date shall be automatically ter-
 39    minated by the commission and may not be renewed.
 40        (4)  Active  and  inactive  license status. A licensee who is a designated
 41    broker or associated with a designated broker shall hold an active license.  A
 42    licensee   who has paid all applicable fees, who is not associated with a des-
 43    ignated broker and who holds a current license that is not revoked,  suspended
 44    or terminated shall hold his license on inactive status. A licensee seeking to
 45    change  from  active  license status to inactive license status shall have the
 46    broker submit a change of status application to the commission in the form and
 47    manner approved by the commission. During the period that his license is inac-
 48    tive, the licensee shall not engage in the business or act in the capacity  of
 49    real  estate  broker,  associate  broker  or salesperson. However, an inactive
 50    licensee may receive a referral fee for any referral made  during  the  period
 51    his license was active. A licensee may activate an inactive license by meeting
 52    each of the following:
 53        (a)  If  activating  as  a  sales associate, associating with a designated
 54        Idaho broker and having the broker submit an application in the  form  and
 55        manner approved by the commission;
  1        (b)  If  activating  as a designated broker, establishing an office in the
  2        manner required by this chapter and submitting an application in the  form
  3        and manner approved by the commission;
  4        (c)  Paying the required fee;
  5        (d)  Obtaining  and maintaining a policy of errors and omissions insurance
  6        as required by section 54-2013, Idaho Code, and  in  accordance  with  the
  7        rules of the commission and certifying the same; and
  8        (e)  Successfully  completing  any  continuing  education requirements, as
  9        prescribed in section 54-2023, Idaho Code, and certifying the same for the
 10        current license period.
 11        (5)  Continuing education. A licensee shall not submit an  application  to
 12    renew  a  license  on active status or to activate an inactive license without
 13    having obtained the continuing education  credit  hours  required  by  section
 14    54-2023, Idaho Code. A licensee who violates this subsection (5) shall be sub-
 15    ject to disciplinary action by the commission.
 16        (6)  Time  required. The commission may request satisfactory proof of con-
 17    tinuing education compliance from any licensee who has certified to  the  com-
 18    mission  that  he  has  completed the requirement. The request shall state the
 19    time within which the proof must be received at the commission  office,  which
 20    time shall not be less than ten (10) business days.
 21        (7)  Satisfactory  proof.  Upon  request from the commission, the licensee
 22    shall submit  satisfactory  proof  of  having  met  the  continuing  education
 23    requirement  set  forth  in  section 54-2023, Idaho Code. "Satisfactory proof"
 24    shall, for each course, consist of documentation:
 25        (a)  Identifying the licensee, the title of the course or challenge  exam,
 26        the course certification number, the course provider, the number of class-
 27        room  hours,  the  completion  date  of  the course or challenge exam, and
 28        including:
 29             (i)   A transcript of the course taken;
 30             (ii)  A letter from the provider verifying successful  completion  of
 31             the course; or
 32             (iii) A course completion certificate; and
 33        (b)  Identifying  the  course  certification  approval number to establish
 34        that the course is approved for continuing education credit as provided by
 35        section 54-2023, Idaho Code. The commission may, in its  sole  discretion,
 36        accept  alternative documentation establishing that the course is approved
 37        for credit.
 38        (8)  Failure to submit proof. A licensee failing  to  submit  satisfactory
 39    proof of completing the continuing education requirement after being requested
 40    to  do so by the commission may have his license inactivated by the commission
 41    and shall not be entitled to reactivate the license unless and until  he  pro-
 42    vides  to the commission satisfactory proof that he meets the  continuing edu-
 43    cation requirements of section 54-2023, Idaho Code. Nothing  in  this  section
 44    shall  limit  the  ability  of  the  commission to investigate or discipline a
 45    licensee for violating subsection (5) of this section  or  for  violating  any
 46    other section of this chapter.
 47        (9)  Change  in  personal  information.  An  individual  licensee, whether
 48    active or inactive, shall provide written notice to  the  commission,  in  the
 49    form  and  manner  approved  by  the commission, of any change of his personal
 50    name, address of personal residence or personal telephone number. Notice shall
 51    be provided within ten (10) days of the change. If the  licensee  has  changed
 52    his  personal name, he shall also submit legal proof of the change and the fee
 53    for issuing a new license certificate and, if an  active  licensee,  he  shall
 54    have  the  broker  submit the written notice of change to the commission. Upon
 55    receipt of the new license certificate or upon its effective  date,  whichever
  1    is  later,  the  broker  shall remove from public view any license certificate
  2    bearing the licensee's former name.
  3        (10) Signature required. No license shall be valid unless the license cer-
  4    tificate is signed by the licensee.
  5        (11) Effective dates. A request for licensure or for license changes shall
  6    become effective when the properly completed application, attachments and  any
  7    required  fee  are  received at and approved by the commission. An application
  8    that is incomplete or lacking proper the required fees shall  be  returned  to
  9    the applicant and no license shall be issued until a completed application and
 10    proper  all required fees are received at and actually approved by the commis-
 11    sion.
 12        (12)  Fees nonrefundable. No licensee shall be entitled to a refund of any
 13    fee after the license or license change has become effective.
 14        SECTION 5.  That Section 54-2023, Idaho Code, be, and the same  is  hereby
 15    amended to read as follows:
 16        54-2023.  CONTINUING  EDUCATION  REQUIREMENTS.  Each  licensee applying to
 17    renew an Idaho real estate license on active status, and each  Idaho  licensee
 18    applying  to change from inactive to active license status, shall successfully
 19    complete a commission core course, plus the required number of classroom hours
 20    of commission-approved or certified continuing education  coursework  as  pro-
 21    vided in this section.
 22        (1)  Required  number of classroom hours. The required number of classroom
 23    hours is as follows:
 24        (a)  Renewing license on active status. A licensee renewing on active sta-
 25        tus effective prior to July 1, 2003, must successfully complete a  commis-
 26        sion  core course, plus eight (8) classroom hours of continuing education,
 27        on or before the current license expiration date. A licensee  renewing  on
 28        active  status  effective on or after July 1, 2003, must successfully com-
 29        plete a commission core course, plus sixteen (16) classroom hours of  con-
 30        tinuing education, on or before the current license expiration date.
 31        (b)  Change  from  inactive to active. A Unless the licensee is within the
 32        initial licensing period, a licensee  changing  from  inactive  to  active
 33        license  status  must  meet  the  continuing education requirements for an
 34        active license for the current licensing period. If the inactive  licensee
 35        renewed  his license on or after July 1, 2003, he shall complete a commis-
 36        sion core course, plus sixteen (16) classroom hours of  continuing  educa-
 37        tion,  before  he  can  change  to  active license status. If the inactive
 38        licensee is within a license renewal period that began prior  to  July  1,
 39        2003,  he  shall complete a commission  core course, plus eight (8) class-
 40        room hours of continuing education, before he can change to active license
 41        status. If the inactive licensee is within his initial  licensing  period,
 42        no continuing education is required to change to active license status.
 43        (2)  No  duplicate  credit.  No  licensee  may obtain continuing education
 44    credit for completing:
 45        (a)  Any core course curriculum for which he has previously received  con-
 46        tinuing education credit; or
 47        (b)  Any  course curriculum for which he has received continuing education
 48        credit in the same license period.
 49        (3)  Excess credits. The classroom hours shall apply to the license period
 50    in which such course is completed; hours completed in excess of those required
 51    for the license period shall not accumulate or be credited for the purposes of
 52    subsequent license renewal periods.
 53        (4)  Commission-ordered education. No  licensee  shall  obtain  continuing
  1    education  credit  for education ordered by the commission as part of a disci-
  2    plinary action.
  3        (5)  Obtaining continuing education classroom hours. In  order  to  obtain
  4    continuing education classroom hours, a licensee must:
  5        (a)  Successfully  complete  a  commission-approved  continuing  education
  6        course;
  7        (b)  Successfully  complete  a  commission-approved  continuing  education
  8        challenge exam;
  9        (c)  Attend  an  entire regularly-scheduled meeting of the commission. The
 10        licensee shall provide at least seven (7) days' advance notice to the edu-
 11        cation section of the commission of his  intent  to  attend  the  meeting.
 12        Failure  to provide advance notice shall result in no continuing education
 13        hours being credited. A maximum of three (3) hours for this activity shall
 14        be credited for any one (1) meeting in any one (1) license period;
 15        (d)  Successfully complete a commission-approved broker prelicense course,
 16        or a commission-approved continuing education challenge exam, in  advanced
 17        real  estate study. Continuing education credit may be obtained for retak-
 18        ing the same broker prelicense course or challenge exam only if  completed
 19        after  five (5) years of completing the previous course or challenge exam;
 20        or
 21        (e)  Provide to the commission a transcript or course completion  certifi-
 22        cate of successful completion of any of the following courses without com-
 23        mission preapproval of the curriculum, instructors or providers:
 24             (i)   Professional  designation  courses.  Any  course  developed  by
 25             national  professional  organizations  that  are required in order to
 26             earn professional designations from a national organization  in  spe-
 27             cialized areas of licensed real estate practice;
 28             (ii)  Courses  accredited  by another profession or jurisdiction. Any
 29             course approved by and offered in  satisfaction  of  another  profes-
 30             sional  or occupational licensing authority's education requirements,
 31             if the course is within the approved topic areas established  by  the
 32             commission; or
 33             (iii) Courses  offered  by  an  accredited college or university. Any
 34             course offered in satisfaction of a degree requirement by an  accred-
 35             ited college or university if the course is within the approved topic
 36             areas established by the commission.
 37        (f)  If  a certified course instructor, teach a live course for which con-
 38        tinuing education credit may be obtained. Credits shall be granted for the
 39        number of classroom hours taught.
 40        (6)  Licensee duty to keep satisfactory proof.  The  licensee  shall  keep
 41    satisfactory    proof of having completed the continuing education requirement
 42    and shall submit such proof at the request of the commission  as  provided  in
 43    section 54-2018, Idaho Code.
 44        (7)  Provisional  license -- Extension of time. A three-month extension of
 45    time for completing the education requirements may be obtained  by  submitting
 46    with  the  renewal  application, or application to activate, satisfactory evi-
 47    dence showing that the applicant was unable  to  comply  with  such  education
 48    requirements. Such evidence shall be:
 49        (a)  Bona   fide  hardship  preventing  completion  of  the  reinstatement
 50        requirements of an inactive license;
 51        (b)  Health reasons preventing attendance or completion;
 52        (c)  Active duty in the military service with assignment  to  a  permanent
 53        duty  station outside of the state during the last twelve (12) months of a
 54        license period; or
 55        (d)  Other compelling cause beyond the  control  of  the  applicant  while
  1        engaged in the real estate business.
  2    If  such  an  extension  is  granted, the licensee shall receive a provisional
  3    license for a period of time not to exceed three (3) months. No further exten-
  4    sion of time may be granted. A license issued or renewed after an extension of
  5    time has been granted shall retain the original license expiration date. Fail-
  6    ure to satisfy the continuing education requirement within  the  time  granted
  7    shall result in the automatic inactivation of the license.
  8        SECTION  6.  That  Section 54-2027, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
 11    ure of a certified course provider to comply with  the  following  duties  and
 12    requirements  shall  be  grounds  for the commission to withdraw or cancel the
 13    provider's certification for cause.
 14        (1)  Discrimination prohibited. Each certified course  provider  shall  at
 15    all  times be in compliance with state and federal laws, rules and regulations
 16    regarding all aspects of equal opportunity and protection of civil rights.  No
 17    course  provider  shall  engage  in  discriminatory practices, nor allow their
 18    course instructor, or method of delivery to violate laws prohibiting discrimi-
 19    nation. Each course provider will fully comply with any  requirements  of  the
 20    Americans  with  disabilities  act  regarding  access  to  and delivery of its
 21    courses, including the  provision  of  accessible  facilities  and  reasonable
 22    accommodations for students.
 23        (2)  Open  access  to course offerings. Registration and attendance at all
 24    certified courses offered for prelicense or continuing education credit  shall
 25    be  open to all persons meeting normal course prerequisites; provided however,
 26    a certified course provider located in or  affiliated  with  a  licensed  real
 27    estate  brokerage company or professional association may refuse access to any
 28    licensee or unlicensed person based on that licensee's or unlicensed  person's
 29    affiliation  with another organization or brokerage company, or the licensee's
 30    or unlicensed person's membership  status  in  any  professional  organization
 31    unless such course provider has received financial support from the commission
 32    for  its  particular course offering. Nothing in this section shall restrict a
 33    course provider  from  charging  a  separate  and  reasonable  course  fee  to
 34    nonaffiliated or nonmember licensees or unlicensed persons.
 35        (3)  Disclosure  of  fees.  All fees charged to a student by a course pro-
 36    vider shall be specified separately in writing. If additional fees are charged
 37    for supplies, materials or books required for coursework, such fees  shall  be
 38    itemized  by the provider and, upon  payment of such fees, the supplies, mate-
 39    rials or books shall become the property of the student. All fees and the man-
 40    ner in which they are to be paid shall be stated in a student contract,  in  a
 41    form  approved by the commission. The student contract shall expressly include
 42    the provider's policy regarding the return of fees in the instance  where  the
 43    student is dismissed or voluntarily withdraws from the 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 coun-
  2        cil  or  commission  an  alphabetical  list which shall include the names,
  3        addresses, and social security numbers or, if licensed, the  license  num-
  4        bers,  of  the  students completing the course of instruction, the name of
  5        the course, the name of the instructor, the number of  hours  included  in
  6        the  course,  the  date  of the course and the location. The list shall be
  7        certified by the instructor from whom the  students  received  instruction
  8        and an authorized representative of the provider;
  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.  Upon  the conclusion of each course, the provider shall
 13        collect written evaluations from students for the course  and  instructor,
 14        using an evaluation form approved by the commission, provided:
 15             (i)   For  each prelicense course, the provider shall promptly submit
 16             the collected student written evaluations to the commission; and
 17             (ii)  For each continuing education course, the provider  shall  keep
 18             such evaluations for a period of one (1) year from the course comple-
 19             tion  date.  Upon  written  request from the commission, the provider
 20             shall submit a written summary of the  student  evaluations  for  the
 21             course and instructor using a form approved by the commission.
 22        (e)  Course schedules. Each provider shall submit schedules of courses and
 23        instructors  as requested by the commission and submit changes promptly as
 24        they occur. Whenever there is a change in a course including, but not lim-
 25        ited to, a change in curriculum, course length or instructor, the provider
 26        shall promptly notify the commission in writing of the change.
 27        (6)  Instructor certification not required for continuing education  elec-
 28    tive  courses.  A certified provider may offer a continuing education elective
 29    course without obtaining approval or certification for the course  instructor;
 30    provided  however,  the  provider shall maintain resumes or other biographical
 31    information that documents the qualifications of the instructor to  teach  the
 32    continuing education elective course.
 33        (7)  Posting  and  recording  fees. The commission may require that course
 34    providers pay to the commission a nonrefundable posting and recording  fee  to
 35    defray  normal  expenses  incurred in maintaining the certificate program. The
 36    fee amount shall be established by the commission by motion.
 37        (8)  Advertising restrictions:
 38        (a)  Providers may advertise that they are currently certified by the com-
 39        mission, if current certification has been approved, but no such advertis-
 40        ing may state or imply that the provider is an agency of the commission or
 41        the council;
 42        (b)  No course provider shall provide any information to the public or  to
 43        prospective  students  which  is misleading in nature. Information is mis-
 44        leading when, taken as a whole, there is distinct probability that it will
 45        deceive the persons whom it is intended to influence.
 46        (9)  Changes in certification. Certification shall be granted to the  par-
 47    ticular  provider  for  the  specific  ownership, provider location, and named
 48    individual in charge as designated in the application for  certification.  Any
 49    changes in ownership, provider location, or provider name, or named individual
 50    in  charge  must be submitted for approval to the commission, at least one (1)
 51    month in advance of the effective date of the proposed changes.
 52        SECTION 7.  That Section 54-2033, Idaho Code, be, and the same  is  hereby
 53    amended to read as follows:
  1        54-2033.  INSTRUCTOR  QUALIFICATIONS. (1) Qualified instructors at degree-
  2    granting institutions. A qualified or full-time instructor or professor of  an
  3    accredited  college or university in any state or jurisdiction and who teaches
  4    real estate-related courses is deemed to be an  approved  instructor  of  such
  5    courses, in Idaho, for the purposes of this chapter.
  6        (2)  Other  instructor  applicants. All other individuals wishing to teach
  7    any real estate courses  for  credit  toward  Idaho  prelicense  requirements,
  8    including the business conduct and office operations course, or the commission
  9    continuing  education  core  course requirements must first meet the following
 10    additional qualifications and receive separate certification for  each  course
 11    to be taught:
 12        (a)  Unless  this requirement is waived upon special review of the commis-
 13        sion in the manner stated below, no individual instructor seeking certifi-
 14        cation may have had a real estate or other  professional  or  occupational
 15        license suspended or revoked for disciplinary reasons or have been refused
 16        a  renewal of a license issued by the state of Idaho or any other state or
 17        jurisdiction. Further, the individual may not have been convicted,  issued
 18        any  fine, placed on probation, received a withheld judgment, or completed
 19        any sentence of confinement for or on account of any felony, or any misde-
 20        meanor involving fraud, misrepresentation, or  dishonest  or  dishonorable
 21        dealing,  in  a  court  of proper jurisdiction. The failure of a certified
 22        instructor to maintain the  qualifications  required  by  this  subsection
 23        shall be grounds for the commission to withdraw or cancel the instructor's
 24        certificate as provided in section 54-2025(3), Idaho Code.
 25        (b)  Each applicant for certification shall also:
 26             (i)   Submit a properly completed application for instructor certifi-
 27             cation  in  the  form and manner required by the commission, with all
 28             proper required fees;
 29             (ii)  File a properly an executed "irrevocable consent to service  of
 30             process"  in  the  manner  and  form prescribed by the commission and
 31             according to section 54-2012(1)(j), Idaho Code;
 32             (iii) Qualify as at least one (1) of the following:
 33                  1.  An attorney at law actively licensed in any state or  juris-
 34                  diction  with  at least five (5) years of active practice in the
 35                  areas of study proposed to be taught, and who  has also success-
 36                  fully completed a commission-approved instructor training course
 37                  or procedure, including a student an assistant teaching period;
 38                  2.  An individual currently approved or certified  and  in  good
 39                  standing  as  a  real  estate instructor for the same or similar
 40                  course material in any other state or jurisdiction;
 41                  3.  An individual who is appointed to teach a nationally  recog-
 42                  nized  real  estate  course which is generally accepted in other
 43                  states or jurisdictions; or
 44                  4.  An individual with at  least  five  (5)  years  active  real
 45                  estate-related  experience who has also successfully completed a
 46                  commission-approved instructor training procedure,  including  a
 47                  student an assistant teaching period.
 48        SECTION  8.  That  Section 54-2034, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
 51    mission may, in its discretion, make such additional investigation and inquiry
 52    relative to the applicant for instructor certification as it shall deem advis-
 53    able,  and  if other good cause exists, may deny or accept the application for
  1    certification.  Based upon an applicant's educational  background,  experience
  2    in related activities, or a review of the applicant's evaluations as a student
  3    an  assistant teacher, the commission may modify the requirements for instruc-
  4    tor certification; such modification may include reducing the requirements  or
  5    assigning additional requirements for certification.
  6        SECTION  9.  That  Section 54-2036, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
  8        54-2036.  CERTIFICATION OF COURSES AND COURSE CONTENT. Every  real  estate
  9    course offered for prelicense or continuing education credit for an Idaho real
 10    estate  license  shall  first  be  certified  and accredited by the Idaho real
 11    estate commission.
 12        (1)  An application for course certification must be submitted in the form
 13    and manner required by the commission, with proper the required fees, at least
 14    two (2) months prior to contemplated date of the first course offering.
 15        (2)  Minimum requirements for course certification:
 16        (a)  Each course must be certified individually, offered  only  through  a
 17        provider  certified or approved in Idaho, and taught by an instructor cer-
 18        tified or approved in Idaho in accordance with this chapter.
 19        (b)  Each prelicense course must contain at least  twenty  (20)  classroom
 20        hours,  and each continuing education course must contain at least two (2)
 21        classroom hours.
 22        (c)  Exam time shall not  be  included  as  approved  classroom  hours  of
 23        instruction.
 24        (d)  A  classroom  hour is defined as a period of at least fifty (50) min-
 25        utes of actual instruction.
 26        (e)  Distance learning courses. The design and delivery of  each  distance
 27        learning  course  shall  be  certified by the national association of real
 28        estate license law officials or by another institution whose certification
 29        standards are deemed equivalent by the commission. The credit hours for  a
 30        certified  distance learning course shall be based upon the same number of
 31        hours which would be credited for an equivalent live  course,    and  must
 32        include a commission-approved final exam.
 33        (f)  Each  prelicense course must include a commission-approved final exam
 34        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  complete a course and then fail the initial
 44        course exam one (1) opportunity to retake the approved course exam  within
 45        the following time periods:
 46             (i)   Prelicense  course exam retakes must occur within one (1) month
 47             of the original course exam;
 48             (ii)  Continuing education course challenge exam retakes  must  occur
 49             within that course's certification period;
 50             (iii) If  a  student fails the retake exam for any prelicense or con-
 51             tinuing education course, the student must repeat the  entire  course
 52             and pass the final exam to receive credit;
 53             (iv)  A  course  provider  shall  not  permit a student who takes and
  1             fails a challenge exam to retake the exam.  A  student  who  fails  a
  2             challenge exam must take the entire course and pass the final exam to
  3             receive credit for the course.
  4        (i)  Challenge exams. A Except where the prelicense requirements have been
  5        waived or modified by the commission pursuant to section 54-2022(6), Idaho
  6        Code,  a  student shall not earn credit for any prelicense course by chal-
  7        lenging and passing the  course  exam  without  otherwise  completing  all
  8        course requirements.
  9        (3)  Approved  topics.  The  commission shall establish specific, approved
 10    topics for course content for  prelicense  courses  and  continuing  education
 11    courses as it deems appropriate to current real estate practices and laws.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 15397c1

This year s Housekeeping Bill will correct inconsistencies
existing within the chapter and update provisions to conform to
current agency operations. It provides a previously-lacking
definition for the statutorily-required "BCOO course" and makes
clear that the course is a component of the educational
requirement for a broker s license. The bill also allows real
estate students to identify themselves by license number, rather
than social security number, provided the student is already
licensed. Finally, the bill clarifies the test-taking policies of
the Commission


                           FISCAL NOTE

None to the General Fund.

None to the Agency.

None to any other state or political subdivision.


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

STATEMENT OF PURPOSE/FISCAL NOTE                     S 1360