Print Friendly SENATE BILL NO. 1360 – Real estate license, qualification
SENATE BILL NO. 1360
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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,
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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1360
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2004, IDAHO
3 CODE, TO DEFINE TERMS AND REMOVE A DEFINITION FOR "RECIPROCAL LICENSE";
4 AMENDING SECTION 54-2014, IDAHO CODE, TO REVISE LICENSE EXAM REQUIREMENTS;
5 AMENDING SECTION 54-2015, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE;
6 AMENDING SECTION 54-2018, IDAHO CODE, TO REVISE LANGUAGE APPLICABLE TO
7 LICENSE EXPIRATION AND REQUESTS FOR LICENSURE OR LICENSE CHANGES; AMENDING
8 SECTION 54-2023, IDAHO CODE, TO REVISE CONTINUING EDUCATION REQUIREMENTS;
9 AMENDING SECTION 54-2027, IDAHO CODE, TO REQUIRE LICENSE NUMBERS FOR
10 LICENSED STUDENTS COMPLETING COURSES OF INSTRUCTION; AMENDING SECTION
11 54-2033, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO INSTRUCTOR QUALI-
12 FICATIONS; AMENDING SECTION 54-2034, IDAHO CODE, TO CHANGE TERMINOLOGY;
13 AND AMENDING SECTION 54-2036, IDAHO CODE, TO REFERENCE REQUIRED FEES, TO
14 REVISE EXAM RETAKE POLICY PROVISIONS AND TO REFERENCE WAIVERS OR MODIFICA-
15 TIONS OF PRELICENSE REQUIREMENTS.
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 (3 12) 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
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-
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
13 ( 910) "Commission" means the Idaho real estate commission, unless the con-
14 text clearly indicates a different meaning.
15 (1 01) "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 (1 12) "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 (1 23) "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 (1 34) "Cooperative sale" means a transaction involving two (2) or more
28 (1 45) "Council" means the Idaho real estate education council.
29 (1 56) "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 (1 67) "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 (1 78) "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 (1 89) "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 (2 01) "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 (2 12) "Fee or commission" means a payment, actual, promised or expected,
4 as compensation for the performance of any act requiring a real estate
6 (2 23) "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
10 (2 34) "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 (2 45) "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 (2 56) "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 (2 67) "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 (2 78) "Main office" means the principal location where the real estate
23 broker is licensed to transact business.
24 (2 89) "Person" means and includes an individual, or any legal business
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 (3 01) "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 (3 12) "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 (3 23) "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 (3 12) of this
54 (3 34) "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
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:
17 54-2015. INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE OR JURISDICTION
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:
1 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
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
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
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-
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
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;
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:
10 54-2027. DUTIES AND REQUIREMENTS OF ALL CERTIFIED COURSE PROVIDERS. Fail-
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:
50 54-2034. SPECIAL CONSIDERATION -- DISCRETION OF THE COMMISSION. The com-
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
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
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
None to the General Fund.
None to the Agency.
None to any other state or political subdivision.
Name: Donna Jones
Agency: Real Estate
STATEMENT OF PURPOSE/FISCAL NOTE S 1360