2007 Legislation
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SENATE BILL NO. 1109 – Real Estate Comm, fees, education


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Bill Status

S1109.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE COMMISSION - Amends existing law relating to the Real Estate
Commission to revise definitions; to remove certain license requirements;
to revise provisions applicable to changes in personal information; to
revise language providing for the effective date of license issuance and
requested changes; to set forth provisions relating to license
certificates; to revise provisions applicable to fees; to revise continuing
education requirements; to revise duties and requirements of certified
course providers; to revise provisions relating to the main office of a
business location; to remove language providing for the display of licenses
and return of license certificates; to revise certification requirements
for instructors; to provide that ledger records shall be kept in
alphabetical order or by transaction number; to revise provisions
applicable to trust account deposits and transfers of consideration; to
remove a signature requirement; and to revise provisions applicable to
terminating or changing licensed business relationships.
02/09    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Com/HuRes
02/21    Rpt out - rec d/p - to 2nd rdg
02/22    2nd rdg - to 3rd rdg
03/01    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Corder, Darrington, Davis, Fulcher, Gannon, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
      Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Coiner, Geddes
    Floor Sponsor - Cameron
    Title apvd - to House
03/02    House intro - 1st rdg - to Com/HuRes
03/06    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
03/12    3rd rdg - PASSED - 53-13-4
      AYES -- Anderson, Andrus, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Collins, Durst, Edmunson, Eskridge, Hagedorn, Henbest, Henderson,
      Jaquet, Killen, King, Kren, Lake, LeFavour, Loertscher, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Ruchti, Rusche,
      Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively,
      Smith(30), Snodgrass, Stevenson, Thayn, Trail, Wills, Wood(27), Mr.
      NAYS -- Barrett, Crane, Hart, Harwood, Labrador, Luker, Marriott,
      Mathews, McGeachin, Mortimer, Patrick, Vander Woude, Wood(35)
      Absent and excused -- Clark, Moyle, Roberts, Smith(24)
    Floor Sponsor - Schaefer
    Title apvd - to Senate
03/13    To enrol
03/14    Rpt enrol - Pres signed - Sp signed
03/15    To Governor
03/20    Governor signed
         Session Law Chapter 98
         Effective: 07/01/07

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                       IN THE SENATE
                                    SENATE BILL NO. 1109
  1                                        AN ACT
 26    Be It Enacted by the Legislature of the State of Idaho:
 27        SECTION  1.  That  Section 54-2004, Idaho Code, be, and the same is hereby
 28    amended to read as follows:
 29        54-2004.  DEFINITIONS. As used in this chapter:
 30        (1)  "Accredited college or university" means an institution accredited by
 31    the regional accrediting associations, as reported in the most current  publi-
 32    cation of the accredited institutions of postsecondary education.
 33        (2)  "Active  license"  means the status of a real estate license that has
 34    not been inactivated, expired, terminated, suspended or revoked.
 35        (3)  "Associate broker" means an individual who has  qualified  personally
 36    as  a  real  estate broker in Idaho under this chapter, but is licensed under,
 37    associated with and represents a designated broker in the performance  of  any
 38    act described in subsection (32) of this section.
 39        (4)  "Branch  office"  means  an office operated by a licensed real estate
 40    broker or licensed legal business entity, separate and  apart  from  the  main
 41    office. A branch office may be licensed or unlicensed, in accordance with this
 42    chapter.
 43        (5)  "Brokerage company" means a real estate business, whether a sole pro-
  1    prietorship,  a  legal  entity,  or  any other licensed person engaged in acts
  2    requiring a real estate license in Idaho, and which is conducting  or  holding
  3    itself out as conducting the business of real estate through a designated bro-
  4    ker.
  5        (6)  "Brokerage representation agreement" means a written contract between
  6    a  buyer,  seller, or both, and a real estate brokerage for agency representa-
  7    tion in a regulated real estate transaction.
  8        (7)  "Business conduct and office operations course" means,  in  reference
  9    to  a  real  estate course offering, the component of the advanced real estate
 10    course that is required in order to obtain a broker license and  that  teaches
 11    business  practices  and office operations of the brokerage, including record-
 12    keeping, trust account procedures and the laws governing those practices.
 13        (8)  "Business name" means the name in  which  the  brokerage  company  is
 14    licensed by the commission.
 15        (9)  "Business  opportunity"  means  and includes an established business,
 16    good will of an established business, or any interest therein, or any one  (1)
 17    or  combination  thereof,  where  a  sale  or  transfer of an interest in land
 18    including, but not limited to, an assignment of a lease, is  involved  in  the
 19    transaction.
 20        (10) "Commission"  means the Idaho real estate commission, unless the con-
 21    text clearly indicates a different meaning.
 22        (11) "Commission core course" means, in reference to a real estate  course
 23    offering, the course containing curriculum, identified by the commission, that
 24    stresses  current  trends in real estate practices and changes in laws in real
 25    estate related industries. A core course must contain no more  than  four  (4)
 26    classroom hours of instruction.
 27        (12) "Continuing  education  elective  course"  means a real estate course
 28    offering, other than the commission core course for which continuing education
 29    credit hours may be obtained as provided in section 54-2023, Idaho Code.
 30        (13) "Convicted" means a plea of nolo contendere or guilty, a jury verdict
 31    of guilty or a court decision of guilt whether or not a judgment  or  sentence
 32    has been imposed, withheld or suspended.
 33        (14) "Cooperative sale" means a transaction involving two (2) or more bro-
 34    kers.
 35        (15) "Council" means the Idaho real estate education council.
 36        (16) "Dealer  in options" means any person, firm, partnership, association
 37    or corporation who shall directly or indirectly take, obtain or use options to
 38    purchase, exchange, lease option or lease purchase real property or any inter-
 39    est therein for another or others whether or not the options shall be  in  his
 40    or  its  name  and whether or not title to the property shall pass through the
 41    name of the person, firm, partnership, association or corporation  in  connec-
 42    tion  with the purchase, sale, exchange, lease option or lease purchase of the
 43    real property, or interest therein.
 44        (17) "Designated broker" means an individual who is  licensed  as  a  real
 45    estate  broker  in  Idaho and who is designated by the brokerage company to be
 46    responsible for the supervision of the brokerage company and the activities of
 47    any associated licensees in accordance with this chapter.
 48        (18) "Distance learning course" means, in relation to a real estate course
 49    offering, a real estate course that is delivered, not as a  live  course,  but
 50    through  a  medium  in  which the instructor and student are separated by both
 51    distance or and time.
 52        (19) "Double contract" means two (2) or more  written  or  unwritten  con-
 53    tracts  of sale, purchase and sale agreements, loan applications, or any other
 54    agreements, one (1) of which is not made known to the prospective loan  under-
 55    writer or the loan guarantor, to enable the buyer to obtain a larger loan than
  1    the true sales price would allow, or to enable the buyer to qualify for a loan
  2    which  he  or she otherwise could not obtain. An agreement or loan application
  3    is not made known unless it is disclosed in writing to  the  prospective  loan
  4    underwriter or loan guarantor.
  5        (20) "Executive  director"  means the executive director of the Idaho real
  6    estate commission.
  7        (21) "Expired license" means the status of  a  license  when  the  license
  8    period  has  expired  and  the  license  is not renewed or provisional license
  9    granted, and before the license is terminated.
 10        (22) "Fee or commission" means a payment, actual, promised or expected, as
 11    compensation for the performance of any act requiring a real estate license.
 12        (23) "Inactive license" means the status of a license that is not expired,
 13    terminated, suspended or revoked, and during which inactive period the license
 14    holder is not authorized to act as or associate with a designated broker.
 15        (24) "Legal business entity" means and includes any type  of  corporation,
 16    partnership,  limited  liability  company  or limited liability partnership, a
 17    governmental entity, trust or other entity capable of conducting business.
 18        (25) "Licensee" means any person who is licensed in accordance  with  this
 19    chapter  to  engage in the business or act in the capacity of real estate bro-
 20    ker, associate broker or real estate salesperson.
 21        (26) "Limited broker" means a broker individually qualified to do business
 22    in Idaho, but who may not have associate brokers or salespersons licensed with
 23    that broker.
 24        (27) "Live presentation" means, in  reference  to  a  real  estate  course
 25    offering,  a real estate course that is personally presented by the instructor
 26    and personally attended by the student at the same facility, or, if  separated
 27    by distance, the instructor and student are connected by contemporaneous, two-
 28    way audio and visual communication.
 29        (28) "Main office" means the principal location where the real estate bro-
 30    ker is licensed to transact business.
 31        (29) "Person"  means  and  includes  an  individual, or any legal business
 32    entity.
 33        (30) "Primary Idaho license" means an Idaho real estate  license  that  is
 34    not contingent upon continuance of a license in another state or jurisdiction.
 35        (31) "Provisional  license"  means  an  extension  of the period of active
 36    licensure, beyond the licensee's expiration date, granted  by  the  commission
 37    for  the purpose of allowing the licensee to complete the continuing education
 38    requirements set forth in section 54-2023, Idaho Code, or for any  other  pur-
 39    pose allowed by this chapter.
 40        (32) "Real estate broker" means and includes:
 41        (a)  Any  person  other  than  a real estate salesperson, who, directly or
 42        indirectly, while acting for another, for compensation or a promise or  an
 43        expectation  thereof, engages in any of the following: sells, lists, buys,
 44        or negotiates, or offers to sell, list, buy  or  negotiate  the  purchase,
 45        sale,  option  or exchange of real estate or any interest therein or busi-
 46        ness opportunity or interest therein for others;
 47        (b)  Any actively licensed broker while, directly or indirectly, acting on
 48        the broker's own behalf;
 49        (c)  Any person who represents to the public that the person is engaged in
 50        any of the above activities;
 51        (d)  Any person who directly or indirectly engages in, directs,  or  takes
 52        any  part  in the procuring of prospects, or in the negotiating or closing
 53        of any transaction which does or is calculated to result  in  any  of  the
 54        acts above set forth;
 55        (e)  A dealer in options as defined in this section.
  1        (33) "Real  estate  salesperson" or "salesperson" means any person who has
  2    qualified and is licensed as a real estate salesperson  in  Idaho  under  this
  3    chapter,  and  is licensed under, associated with, and represents a designated
  4    broker in the performance of any act described in subsection (32) of this sec-
  5    tion.
  6        (34) "Real estate settlement procedures act" means the real estate settle-
  7    ment procedures act of 1974, as amended, 12 U.S.C. section 2601 et  seq.,  and
  8    as in effect on January 1, 20057.
  9        (35) "Regulated  real estate transaction" means those real estate transac-
 10    tions for which a real estate license is required under chapter 20, title  54,
 11    Idaho Code.
 12        (36) "Responsible  broker"  means  the  designated broker in the regulated
 13    real estate transaction who is responsible for the accounting and  transaction
 14    files  for  the transaction, in the manner described in section 54-2048, Idaho
 15    Code.
 16        (37) "Revoked license" means a license that has been  permanently  revoked
 17    by the issuing authority.
 18        (38) "Sales associate" means a salesperson or an associate broker licensed
 19    under and associated with a designated broker.
 20        (39) "State  or  jurisdiction"  means  and  includes any of the fifty (50)
 21    states and any foreign jurisdiction that issue real estate  licenses  substan-
 22    tially similar to those provided for in this chapter.
 23        (40) "Successfully  completed" means, in reference to a real estate course
 24    offering, completing all required course hours and, except where the  licensee
 25    seeks  continuing education credit for having regularly attended the live pre-
 26    sentation of a course, passing a commission-approved final examination.
 27        (41) "Surrendered license" means a license that has been voluntarily  ter-
 28    minated  or surrendered by a licensee who, at the time of the voluntary termi-
 29    nation or surrender, was under investigation or named in a formal  administra-
 30    tive complaint.
 31        (42) "Suspended  license"  means  a license that has been temporarily sus-
 32    pended by the issuing authority.
 33        SECTION 2.  That Section 54-2016, Idaho Code, be, and the same  is  hereby
 34    amended to read as follows:
 37    ness entities. Each legal business entity,  as  defined  in  section  54-2004,
 38    Idaho Code, shall be licensed by the Idaho real estate commission to engage in
 39    the  real  estate business in Idaho and shall make proper application, pay all
 40    required fees, and meet all requirements listed below.
 41        (a)  Each legal business entity shall have a properly licensed  individual
 42        designated broker, who shall be held responsible for the activities of the
 43        licensed entity.
 44        (b)  The individual designated broker shall, within five (5) years immedi-
 45        ately  prior  to  the  designation,  satisfactorily complete a commission-
 46        approved business conduct and office operations course.
 47        (c)  The individual designated broker shall also hold the following  legal
 48        position within the licensed entity:
 49             (i)   Corporation -- an officer;
 50             (ii)  Partnership or limited partnership -- a general partner;
 51             (iii) Limited liability company -- a member or manager.
 52        The  individual  designated broker for any business entity shall have full
 53        authority to act on behalf of the licensed business entity, and shall sub-
  1        mit sufficient and satisfactory proof thereof  with  the  application  for
  2        license.  Such proof shall include a list of the entity's officers, direc-
  3        tors, members or managers, as reflected in  the  minutes,  resolutions  or
  4        other  similar business documents of the entity. All acts of that individ-
  5        ual as designated broker shall be considered acts of the licensed business
  6        entity. Nothing in this section is intended to create liability to a legal
  7        business entity for illegal or fraudulent acts by  the  individual  broker
  8        performed solely on his own account.
  9        (d)  A license issued to a legal business entity, as defined in this chap-
 10        ter,  is  effective  only  as  long  as the individual designated broker's
 11        license is in active status and in effect. If the individual so designated
 12        has a license refused, revoked, suspended or otherwise  made  inactive  by
 13        the  commission,  or if the individual designated broker voluntarily  sur-
 14        renders the individual license or ceases to be connected with  the  entity
 15        in  the  manner  required  above,  the business entity shall have ten (10)
 16        business days in which to designate another qualified individual as desig-
 17        nated broker before the entity's license is terminated, and  the  licenses
 18        of all associated licensees are made inactive.
 19        (e)  One (1) individual may act as designated broker for more than one (1)
 20        licensed  business  entity,  however,  all  entities shall have their main
 21        offices in the same physical location.
 22        (f)  Satisfactory proof of mandatory errors and omissions insurance  shall
 23        be  provided  for  both  the individual designated broker and the licensed
 24        business entity.
 25        (g)  A legal business entity doing business under an  assumed  name  shall
 26        provide  satisfactory  proof  of  having  legally  filed  a certificate of
 27        assumed name with the Idaho secretary of state.
 28        (2)  Sole proprietorships. An individual designated  broker  not  licensed
 29    with a legal business entity, as defined in section 54-2004, Idaho Code, shall
 30    be  licensed  as  a  sole  proprietor. Each sole proprietorship seeking a real
 31    estate license shall meet all of the following requirements:
 32        (a)  A licensed sole proprietor doing business under an  assumed  business
 33        name  shall  provide satisfactory proof of having legally filed a certifi-
 34        cate of assumed name with the Idaho secretary of state;
 35        (b)  Satisfactory proof of mandatory errors and omissions insurance  shall
 36        be provided for the licensed designated broker of a sole proprietorship;
 37        (c)  The  individual designated broker shall have satisfactorily completed
 38        a commission-approved business conduct and office operations course within
 39        five (5) years immediately prior to the application for license.
 40        (3)  Multiple business names prohibited. A legal business entity  or  sole
 41    proprietorship shall be licensed under only one (1) business name.
 42        (4)  Branch  offices. Each branch office in which trust funds and original
 43    transaction files are maintained shall be separately  licensed  in  accordance
 44    with the following:
 45        (a)  The  designated broker establishing the branch office shall submit an
 46        application, along with the required fee for the issuance  or  renewal  of
 47        the branch office license.
 48        (b)  The  designated  broker  shall  designate in the application a branch
 49        manager, who shall be an associate broker and who, within five  (5)  years
 50        immediately  prior  to the designation, shall have completed a commission-
 51        approved business conduct  and  office  operations  course,  to  regularly
 52        occupy  and  be  responsible for the supervision of the branch office. Any
 53        salesperson acting as a branch manager on July 1, 2005, shall  have  until
 54        July  1, 2006, to obtain an associate broker's license. When a branch man-
 55        ager is a regular full-time employee or is engaged in a full-time activity
  1        at a location other than the place he is licensed to do business,  a  pre-
  2        sumption  will  be  made  that the branch manager is unable to responsibly
  3        supervise the branch; provided however, the presumption may be overcome by
  4        evidence to the contrary which the commission determines to  be  satisfac-
  5        tory.
  6        (c)  A  branch  manager  shall not be licensed to manage more than one (1)
  7        branch office at a time.
  8        (d)  A license issued to a branch office is valid and in  effect  only  as
  9        long as the license of the designated broker remains in active status. The
 10        license  certificate    of the branch office shall be signed by the desig-
 11        nated broker.
 12        (e)  No separate branch office license or manager is required for business
 13        locations other than the main office unless trust funds or original trans-
 14        action records are kept at the branch.
 15        (f)  If a separate real estate trust account is maintained  for  a  branch
 16        office, all records and related files for that account shall be maintained
 17        at the branch office.
 18        (g)  Each  branch office or business location, whether separately licensed
 19        or not, shall conduct business only in the  licensed  name  of  the  legal
 20        entity or sole proprietor.
 21        (h)  The  current  license  certificates for the branch office, the branch
 22        manager, and for each sales associate conducting business from the  branch
 23        office  shall  be prominently displayed or available for public inspection
 24        at the branch office.
 25        SECTION 3.  That Section 54-2018, Idaho Code, be, and the same  is  hereby
 26    amended to read as follows:
 28    -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
 29    license  shall  be  for  a  period  of  one (1) year plus the months up to and
 30    including the next birth date of the licensee, not to exceed a period  of  two
 31    (2)  years, and shall expire on the last day of the month of the birth date of
 32    the licensee. Corporations,  partnerships,  limited  liability  companies  and
 33    other  entities defined as "persons" in this chapter shall have established as
 34    the equivalent of a birth date, the  birth  date  of  its  designated  broker.
 35    Licensed  branch  offices  shall have established as the equivalent of a birth
 36    date, the birth date of the designated broker for the branch office.
 37        (2)  License renewal. Each license shall be renewable for a period of  two
 38    (2)  years  by timely submitting a completed application. Applications must be
 39    received at the commission office on or before 5 p.m. of the expiration date.
 40        (a)  If renewing an active license, the application shall include:
 41             (i)   Certification that the applicant has met the commission's  con-
 42             tinuing education requirements as set forth in section 54-2023, Idaho
 43             Code;
 44             (ii)  Certification  that  the applicant has met the mandatory errors
 45             and omissions insurance requirement for real estate licensees as  set
 46             forth in section 54-2013, Idaho Code; and
 47             (iii) Payment  of  all renewal fees established by this chapter or by
 48             the commission.
 49        (b)  If renewing an inactive license, the application shall  include  pay-
 50        ment  of all renewal fees established by this chapter or by the commission
 51        by rule.
 52        (3)  Late renewal. If the licensee fails to submit a completed application
 53    for renewal or pay the renewal fee on or before the expiration date, the  com-
  1    mission  may accept a later application or payment of the fee, subject to such
  2    conditions as the commission may require including, but not  limited  to,  the
  3    assessment  of  a  late fee; provided that between the license expiration date
  4    and the date of renewal of the license, the rights of the licensee under  such
  5    license  shall  be  expired,  and during such period of expiration it shall be
  6    unlawful for any licensee to do or attempt to offer to do any of the  acts  of
  7    the kind and nature described in the definitions of real estate broker or real
  8    estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
  9    sation  of  any  kind  or  expectation thereof. An expired license that is not
 10    renewed within one (1) year of the expiration date shall be automatically ter-
 11    minated by the commission and may not be renewed.
 12        (4)  Active and inactive license status. A licensee who  is  a  designated
 13    broker  or associated with a designated broker shall hold an active license. A
 14    licensee who has paid all applicable fees, who is not associated with a desig-
 15    nated broker and who holds a current license that is not revoked, suspended or
 16    terminated shall hold his license on inactive status. A  licensee  seeking  to
 17    change  from  active  license status to inactive license status shall have the
 18    broker submit a change of status application to the commission in the form and
 19    manner approved by the commission. During the period that his license is inac-
 20    tive, the licensee shall not engage in the business or act in the capacity  of
 21    real  estate  broker,  associate  broker  or salesperson. However, an inactive
 22    licensee may receive a referral fee for any referral made  during  the  period
 23    his license was active. A licensee may activate an inactive license by meeting
 24    each of the following:
 25        (a)  If  activating  as  a  sales associate, associating with a designated
 26        Idaho broker and having the broker submit an application in the  form  and
 27        manner approved by the commission;
 28        (b)  If  activating  as a designated broker, establishing an office in the
 29        manner required by this chapter and submitting an application in the  form
 30        and manner approved by the commission;
 31        (c)  Paying the any required fees;
 32        (d)  Obtaining  and maintaining a policy of errors and omissions insurance
 33        as required by section 54-2013, Idaho Code, and  in  accordance  with  the
 34        rules of the commission and certifying the same; and
 35        (e)  Successfully  completing  any  continuing  education requirements, as
 36        prescribed in section 54-2023, Idaho Code, and certifying the same for the
 37        current license period.
 38        (5)  Continuing education. A licensee shall not submit an  application  to
 39    renew  a  license  on active status or to activate an inactive license without
 40    having obtained the continuing education  credit  hours  required  by  section
 41    54-2023, Idaho Code. A licensee who violates this subsection (5) shall be sub-
 42    ject to disciplinary action by the commission.
 43        (6)  Time  required. The commission may request satisfactory proof of con-
 44    tinuing education compliance from any licensee who has certified to  the  com-
 45    mission  that  he  has  completed the requirement. The request shall state the
 46    time within which the proof must be received at the commission  office,  which
 47    time shall not be less than ten (10) business days.
 48        (7)  Satisfactory  proof.  Upon  request from the commission, the licensee
 49    shall submit  satisfactory  proof  of  having  met  the  continuing  education
 50    requirement  set  forth  in  section 54-2023, Idaho Code. "Satisfactory proof"
 51    shall, for each course, consist of documentation:
 52        (a)  Identifying the licensee, the title of the course or challenge  exam,
 53        the course certification number, the course provider, the number of class-
 54        room  hours,  the  completion  date  of  the course or challenge exam, and
 55        including:
  1             (i)   A transcript of the course taken;
  2             (ii)  A letter from the provider verifying successful  completion  of
  3             the course; or
  4             (iii) A course completion certificate; and
  5        (b)  Identifying  the  course  certification  approval number to establish
  6        that the course is approved for continuing education credit as provided by
  7        section 54-2023, Idaho Code. The commission may, in its  sole  discretion,
  8        accept  alternative documentation establishing that the course is approved
  9        for credit.
 10        (8)  Failure to submit proof. A licensee failing  to  submit  satisfactory
 11    proof of completing the continuing education requirement after being requested
 12    to do so by the  commission may have his license inactivated by the commission
 13    and  shall  not be entitled to reactivate the license unless and until he pro-
 14    vides to the commission satisfactory proof that he meets the continuing educa-
 15    tion requirements of section 54-2023, Idaho  Code.  Nothing  in  this  section
 16    shall  limit  the  ability  of  the  commission to investigate or discipline a
 17    licensee for violating subsection (5) of this section  or  for  violating  any
 18    other section of this chapter.
 19        (9)  Change  in  personal  information.  An  individual  licensee, whether
 20    active or inactive, shall provide written notice to  the  commission,  in  the
 21    form  and  manner  approved  by  the commission, of any change of his personal
 22    name, address of personal residence or personal telephone number. Notice shall
 23    be provided within ten (10) days of the change. If the  licensee  has  changed
 24    his  personal name, he shall also submit legal proof of the change and the fee
 25    for issuing a new license certificate and, if an  active  licensee,  he  shall
 26    have  the  broker  submit the written notice of change to the commission. Upon
 27    receipt of the new license certificate or upon its effective  date,  whichever
 28    is  later,  the  broker  shall remove from public view any license certificate
 29    bearing the licensee's former name.
 30        (10) Signature required. No license shall be valid unless the license cer-
 31    tificate is signed by the licensee.
 32        (11) Issuance of the license and eEffective dates. A request for licensure
 33    or for real estate license shall be deemed issued, and any  requested  license
 34    changes  shall  become effective, when the completed application, attachments,
 35    and any required fees are received at  and  approved  by  the  commission.  An
 36    application  that is incomplete or lacking the required fees shall be returned
 37    to the applicant and no license shall be issued until a completed  application
 38    and all required fees are received at and actually approved by the commission.
 39    A  brokerage  is not required to obtain, display or possess a physical license
 40    certificate as evidence of the individual's  active  licensure;  however,  the
 41    commission  may make license certificates available for a fee as authorized by
 42    this chapter. A brokerage shall not display or otherwise make available to the
 43    public a license certificate for any individual who does not  hold  an  active
 44    license with the brokerage.
 45        (121) Fees nonrefundable. No licensee shall be entitled to a refund of any
 46    fee after the license or license change has become effective.
 47        SECTION  4.  That  Section 54-2020, Idaho Code, be, and the same is hereby
 48    amended to read as follows:
 49        54-2020.  FEES. The Idaho real  estate  commission  shall  establish  fees
 50    which,  in its discretion, are sufficient, when added to the other fees autho-
 51    rized by this chapter, or any  other  law  or  rule,  to  raise  that  revenue
 52    required to administer the provisions of this chapter.
 53        The  commission  shall assess the following fees, in addition to any other
  1    fees established in this chapter or by rule, provided  that  all  fees  estab-
  2    lished  by  administrative  rule of the commission shall remain effective from
  3    year to year unless changed through the rulemaking process prescribed in chap-
  4    ter 52, title 67, Idaho Code:
  5        (1)  For each year or portion thereof for  which  an  active  or  inactive
  6    license  is  issued  or  renewed, a license fee in an amount not to exceed one
  7    hundred fifty dollars ($150), the exact fee to be  determined  established  by
  8    administrative rule of the commission. Fees so established shall remain effec-
  9    tive  from  year to year unless changed through the rules promulgation process
 10    prescribed in chapter 52, title 67, Idaho Code;
 11        (2)  A tuition or registration fee  for  real  estate  education  courses,
 12    course  materials  and  any  course  exam fee. These fees shall be established
 13    based upon the total annual costs involved in the provision of all real estate
 14    education courses, course materials and course exam fees;
 15        (3)  A late license renewal fee in the an amount of not to exceed  twenty-
 16    five  dollars ($25.00), the exact fee to be established by administrative rule
 17    of the commission; for late license renewal;
 18        (4)  A fee in the amount of fifteen  dollars  ($15.00)  fFor  any  license
 19    change that necessitates the issuance printing of a new license certificate, a
 20    fee  in  an amount not to exceed fifteen dollars ($15.00), the exact fee to be
 21    established by administrative rule of the commission;
 22        (5)  A fee in the amount allowed by law for insufficient funds  checks  or
 23    other types of insufficient payment;
 24        (6)  A  fee  in the amount of ten dollars ($10.00) fFor the compilation of
 25    each certified copy of a licensee's education history or  license  history,  a
 26    fee  in  an  amount  not  to  exceed ten dollars ($10.00), the exact fee to be
 27    established by administrative rule of the commission;
 28        (7)  A fee in the amount  of  fifty  dollars  ($50.00)  fFor  issuance  or
 29    renewal  of  a  branch  office license, a fee in an amount not to exceed fifty
 30    dollars ($50.00), the exact fee to be established by  administrative  rule  of
 31    the commission.
 32        SECTION  5.  That  Section 54-2023, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
 34        54-2023.  CONTINUING EDUCATION REQUIREMENTS.  Each  licensee  applying  to
 35    renew  an  Idaho real estate license on active status, and each Idaho licensee
 36    applying to change from inactive to active license status, shall  successfully
 37    complete a commission core course, plus the required number of classroom hours
 38    of  commission-approved  or  certified continuing education coursework as pro-
 39    vided in this section.
 40        (1)  Required number of classroom hours. The required number of  classroom
 41    hours is as follows:
 42        (a)  Renewing license on active status. A licensee renewing on active sta-
 43        tus must successfully complete a commission core course, plus sixteen (16)
 44        classroom  hours of continuing education, on or before the current license
 45        expiration date.
 46        (b)  Change from inactive to active. Unless the  licensee  is  within  the
 47        initial  licensing  period,  a  licensee  changing from inactive to active
 48        license status shall complete a commission core course, plus sixteen  (16)
 49        classroom  hours  of  continuing education, before he can change to active
 50        license status. If the inactive licensee is within his  initial  licensing
 51        period,  no  continuing  education is required to change to active license
 52        status.
 53        (2)  No duplicate credit. No  licensee  may  obtain  continuing  education
  1    credit for completing:
  2        (a)  Any  core course curriculum for which he has previously received con-
  3        tinuing education credit; or
  4        (b)  Any course curriculum for which he has received continuing  education
  5        credit in the same license period.
  6        (3)  Excess credits. The classroom hours shall apply to the license period
  7    in which such course is completed; hours completed in excess of those required
  8    for the license period shall not accumulate or be credited for the purposes of
  9    subsequent license renewal periods.
 10        (4)  Commission-ordered  education.  No  licensee  shall obtain continuing
 11    education credit for education ordered by the commission as part of  a  disci-
 12    plinary action.
 13        (5)  Obtaining  continuing  education  classroom hours. In order to obtain
 14    continuing education classroom hours, a licensee must:
 15        (a)  Successfully  complete  a  commission-approved  continuing  education
 16        course;
 17        (b)  Successfully  complete  a  commission-approved  continuing  education
 18        challenge exam;
 19        (c)  Attend an entire regularly-scheduled meeting of the  commission.  The
 20        licensee shall provide at least seven (7) days' advance notice to the edu-
 21        cation  section  of  the  commission  of his intent to attend the meeting.
 22        Failure to provide advance notice shall result in no continuing  education
 23        hours being credited. A maximum of three four (34) hours for this activity
 24        shall be credited for any one (1) meeting in any one (1) license period;
 25        (d)  Successfully complete a commission-approved broker prelicense course,
 26        or  a commission-approved continuing education challenge exam, in advanced
 27        real estate study. Continuing education credit may be obtained for  retak-
 28        ing  the same broker prelicense course or challenge exam only if completed
 29        after five (5) years of completing the previous course or challenge  exam;
 30        or
 31        (e)  Provide  to the commission a transcript or course completion certifi-
 32        cate of successful completion of any of the following courses without com-
 33        mission preapproval of the curriculum, instructors or providers:
 34             (i)   Professional  designation  courses.  Any  course  developed  by
 35             national professional organizations that are is required in order  to
 36             earn  professional  designations from a national organization in spe-
 37             cialized areas of licensed real estate practice;
 38             (ii)  Courses accredited by another profession or  jurisdiction.  Any
 39             course  approved  by  and  offered in satisfaction of another profes-
 40             sional or occupational licensing authority's education  requirements,
 41             if  the  course is within the approved topic areas established by the
 42             commission; or
 43             (iii) Courses offered by an accredited  college  or  university.  Any
 44             course  offered in satisfaction of a degree requirement by an accred-
 45             ited college or university if the course is within the approved topic
 46             areas established by the commission.
 47        (f)  If a certified course instructor, teach a live course for which  con-
 48        tinuing education credit may be obtained. Credits shall be granted for the
 49        number of classroom hours taught.
 50        (6)  Licensee  duty  to  keep  satisfactory proof. The licensee shall keep
 51    satisfactory proof of having completed the  continuing  education  requirement
 52    and  shall  submit  such proof at the request of the commission as provided in
 53    section 54-2018, Idaho Code.
 54        (7)  Provisional license -- Extension of time. A three-month extension  of
 55    time  for  completing the education requirements may be obtained by submitting
  1    with the renewal application, or application to  activate,  satisfactory  evi-
  2    dence  showing  that  the  applicant  was unable to comply with such education
  3    requirements. Such evidence shall be:
  4        (a)  Bona  fide  hardship  preventing  completion  of  the   reinstatement
  5        requirements of an inactive license;
  6        (b)  Health reasons preventing attendance or completion;
  7        (c)  Active  duty  in  the military service with assignment to a permanent
  8        duty station outside of the state during the last twelve (12) months of  a
  9        license period; or
 10        (d)  Other  compelling  cause  beyond  the  control of the applicant while
 11        engaged in the real estate business.
 12    If such an extension is granted, the  licensee  shall  receive  a  provisional
 13    license for a period of time not to exceed three (3) months. No further exten-
 14    sion of time may be granted. A license issued or renewed after an extension of
 15    time has been granted shall retain the original license expiration date. Fail-
 16    ure  to  satisfy  the continuing education requirement within the time granted
 17    shall result in the automatic inactivation of the license.
 18        SECTION 6.  That Section 54-2027, Idaho Code, be, and the same  is  hereby
 19    amended to read as follows:
 21    ure  of  a  certified  course provider to comply with the following duties and
 22    requirements shall be grounds for the commission to  withdraw  or  cancel  the
 23    provider's certification for cause.
 24        (1)  Discrimination  prohibited.  Each  certified course provider shall at
 25    all times be in compliance with state and federal laws, rules and  regulations
 26    regarding  all aspects of equal opportunity and protection of civil rights. No
 27    course provider shall engage in  discriminatory  practices,  nor  allow  their
 28    course instructor, or method of delivery to violate laws prohibiting discrimi-
 29    nation.  Each  course  provider will fully comply with any requirements of the
 30    Americans with disabilities act  regarding  access  to  and  delivery  of  its
 31    courses,  including  the  provision  of  accessible  facilities and reasonable
 32    accommodations for students.
 33        (2)  Open access to course offerings. Registration and attendance  at  all
 34    certified courses offered for prelicense or continuing education credit toward
 35    the  education requirements of this chapter shall be open to all persons meet-
 36    ing normal course prerequisites; provided however, a certified course provider
 37    located in or affiliated with a licensed real estate brokerage company or pro-
 38    fessional association may refuse access to any licensee or  unlicensed  person
 39    based on that licensee's or unlicensed person's affiliation with another orga-
 40    nization  or  brokerage company, or the licensee's or unlicensed person's mem-
 41    bership status in any professional organization unless  such  course  provider
 42    has  received  financial support from the commission for its particular course
 43    offering. Nothing in this section shall restrict a course provider from charg-
 44    ing a separate and reasonable course fee to nonaffiliated or nonmember  licen-
 45    sees or unlicensed persons.
 46        (3)  Disclosure  of  fees.  All fees charged to a student by a course pro-
 47    vider shall be specified separately in writing. If additional fees are charged
 48    for supplies, materials or books required for coursework, such fees  shall  be
 49    itemized  by  the provider and, upon payment of such fees, the supplies, mate-
 50    rials or books shall become the property of the student. All fees and the man-
 51    ner in which they are to be paid shall be stated in a student contract,  in  a
 52    form  approved by the commission. The student contract shall expressly include
 53    the provider's policy regarding the return of fees in the instance  where  the
  1    student is dismissed or voluntarily withdraws from the course.
  2        (4)  Facilities  and  supportive personnel. The provider shall provide the
  3    facilities and all supportive qualified personnel or approved proctors  neces-
  4    sary to adequately implement its real estate program.
  5        (5)  Student  records  and other requirements. Each Idaho certified course
  6    provider shall comply with the following requirements:
  7        (a)  Records. Maintain for each individual student  a  complete,  accurate
  8        and  detailed  record  which  shall  include  the total number of hours of
  9        instruction undertaken and satisfactorily or unsatisfactorily completed in
 10        the area of study;
 11        (b)  Course completion lists. Within five (5) working days  after  conclu-
 12        sion    of  each  course  of instruction, the provider shall submit to the
 13        council or commission an alphabetical list which shall include the  names,
 14        addresses,  and  social security numbers or, if licensed, the license num-
 15        bers, of the students completing the course of instruction,  the  name  of
 16        the  course,  the  name of the instructor, the number of hours included in
 17        the course, the date of the course and the location.  The  list  shall  be
 18        certified  by  the  instructor from whom the students received instruction
 19        and an authorized representative of the provider;
 20        (c)  Grades. The provider will provide written  notification  to  students
 21        who  successfully  or  unsuccessfully complete a course within thirty (30)
 22        days of the course completion date;
 23        (d)  Evaluations. Upon the conclusion of each course, the  provider  shall
 24        collect  written  evaluations from students for the course and instructor,
 25        using an evaluation form approved by the commission., provided:
 26             (i)   For each prelicense course, the provider shall promptly  submit
 27             the collected student written evaluations to the commission; and
 28             (ii)  For  each continuing education course, tThe provider shall keep
 29             such evaluations for a period of one (1) year from the course comple-
 30             tion date. Upon written request from  the  commission,  the  provider
 31             shall  submit a written summary of either the student evaluations for
 32             the course and instructor, or a written summary of those  evaluations
 33             using a form approved by the commission.
 34        (e)  Course schedules. Each provider shall submit schedules of courses and
 35        instructors  as requested by the commission and submit changes promptly as
 36        they occur. Whenever there is a change in a course including, but not lim-
 37        ited to, a change in curriculum, course length or instructor, the provider
 38        shall promptly notify the commission in writing of the change.
 39        (6)  Instructors. certification  not  required  for  continuing  education
 40    elective  courses. A certified provider may offer a continuing education elec-
 41    tive course  without  obtaining  approval  or  certification  for  the  course
 42    instructor;  provided  however,  the  provider  shall take reasonable steps to
 43    ensure that the instructor is competent to teach the course and shall maintain
 44    resumes or other biographical information that documents the qualifications of
 45    the instructor. to teach the continuing education elective course The provider
 46    shall make such documentation available to  the  public  and  commission  upon
 47    written  request. A course provider shall not offer for credit any course that
 48    is being taught below the minimum teaching standards established by  the  com-
 49    mission or that is being taught in a manner that is detrimental to the purpose
 50    of educating licensees.
 51        (7)  Posting  and  recording  fees. The commission may require that course
 52    providers pay to the commission a nonrefundable posting and recording  fee  to
 53    defray  normal  expenses  incurred in maintaining the certificate program. The
 54    fee amount shall be established by the commission by motion.
 55        (8)  Advertising restrictions:
  1        (a)  Providers may advertise that they are currently certified by the com-
  2        mission, if current certification has been approved, but no such advertis-
  3        ing may state or imply that the provider is an agency of the commission or
  4        the council;
  5        (b)  No course provider shall provide any information to the public or  to
  6        prospective  students  which  is misleading in nature. Information is mis-
  7        leading when, taken as a whole, there is distinct probability that it will
  8        deceive the persons whom it is intended to influence.
  9        (9)  Changes in certification. Certification shall be granted to the  par-
 10    ticular  provider  for  the  specific  ownership, provider location, and named
 11    individual in charge as designated in the application for  certification.  Any
 12    changes in ownership, provider location, or provider name, or named individual
 13    in  charge  must be submitted for approval to the commission, at least one (1)
 14    month in advance of the effective date of the proposed changes.
 15        SECTION 7.  That Section 54-2035, Idaho Code, be, and the same  is  hereby
 16    amended to read as follows:
 17        54-2035.  TERM OF INSTRUCTOR CERTIFICATION AND RENEWAL. (1) Certification.
 18    Each  instructor certification issued by the commission shall be for a term of
 19    two (2) years. The exact expiration date will be shown on the instructor  cer-
 20    tificate.
 21        (2)  Recertification.
 22        (a)  In order to be recertified, each instructor shall:
 23             (i)   Return  a  properly  completed recertification application on a
 24             form provided by the commission, along with all necessary attachments
 25             and fees, to the commission office prior to the expiration  date  for
 26             commission approval;
 27             (ii)  Have   adequately   taught  or  assistant  taught,  during  the
 28             preceeding two (2) years, at least twenty (20) hours of  each  course
 29             for  which  recertification is sought Demonstrate the ability to ade-
 30             quately teach the course. The adequacy of instructor teaching perfor-
 31             mance ability to adequately teach shall be determined by the  commis-
 32             sion based upon any or all of the following:
 33                  1.  Evaluations received from students;
 34                  2.  Direct  observation of the instructor's teaching performance
 35                  by a commission representative; or
 36                  3.  Review of the outline and reference materials  provided  for
 37                  the course; and
 38             (iii) Have  attended  a  commission-sponsored  instructor development
 39             seminar or received other acceptable training in methods of  teaching
 40             adults during the preceding two (2) years.
 41        (b)  Recertification  shall not be effective until the commission formally
 42        approves the application for renewal. An instructor's  failure  to  obtain
 43        approved recertification prior to the expiration of the certification will
 44        result  in  no  credit being given for any course taught by the instructor
 45        whose certification has expired prior to conclusion of the course.
 46        SECTION 8.  That Section 54-2040, Idaho Code, be, and the same  is  hereby
 47    amended to read as follows:
 49    Definite location required. Each individual  licensed  as  a  designated  real
 50    estate  broker  under the provisions of this chapter shall be required to have
 51    and maintain a definite, physical place of business, which place  shall  serve
  1    as  his  main  office  for the transaction of business and be regarded for the
  2    intent and purpose of this chapter as his principal place of business.  Notice
  3    in writing shall be given to the commission of any change by the broker of the
  4    business  name,  location, or mailing address. along with the fee for issuance
  5    of a new license certificate. Upon receipt of the new license  certificate  or
  6    upon its effective date, whichever is later, the broker shall remove from pub-
  7    lic  view  any  license certificate bearing the former business name or former
  8    location No other location may be used as a main office location until  proper
  9    notice  is  acknowledged by the commission. A change of business name or loca-
 10    tion without notification to the commission and issuance of a new license cer-
 11    tificate shall automatically inactivate the  license  previously  issued.  The
 12    broker  shall also notify the commission in writing of any change in the busi-
 13    ness telephone number. A designated broker is not required to obtain,  display
 14    or possess a physical license certificate as evidence of the business's licen-
 15    sure;  however,  the  commission may make license certificates available for a
 16    fee as authorized by this chapter. The broker shall not display  or  otherwise
 17    make available to the public any license certificate bearing a former business
 18    name or former location.
 19        (2)  Broker  for more than one business. A qualified individual may be the
 20    designated broker for more than one (1) licensed real estate  business  entity
 21    only  if all licensed businesses operate their main offices at the same physi-
 22    cal location.
 23        (3)  Brokers sharing same business location. More than one  (1)  individu-
 24    ally  licensed  broker  may operate an office at the same address only if each
 25    broker operates under a business name which clearly identifies the  broker  as
 26    an  individual within the group of brokers, and each broker shall maintain his
 27    or her records and trust accounts separate from all other brokers.
 28        (4)  Business name. and display of licenses. A broker  shall  not  conduct
 29    business under any name other than the one in which the license is issued. The
 30    current  license  certificate  for  the broker and for each associate licensed
 31    with the broker shall be prominently displayed or available for public inspec-
 32    tion in the office designated with the commission as the broker's main  office
 33    location. No other location may be used as a main office location until proper
 34    notice is acknowledged by the commission.
 35        (5)  Lending license prohibited. A broker shall not lend or permit the use
 36    of  the  broker's  license,  whether for compensation or not, to enable anyone
 37    licensed or unlicensed to, in fact, establish or carry on a business for which
 38    a real estate broker's license is required, wherein the broker does not activ-
 39    ely manage and have full control. In like manner, a salesperson shall not  use
 40    another  person's broker's license, whether for compensation or not, to estab-
 41    lish or carry on a business for which a broker's license is required,  nor  to
 42    manage  and  control  the office, except as allowed by sections 54-2016(4) and
 43    54-2039(1), Idaho Code.
 44        (6)  Return of license  certificate.  Upon  surrender  of  a  real  estate
 45    license or upon notice of suspension or revocation of such license, the broker
 46    shall  immediately  forward  the  license  certificate  to the commission. The
 47    license certificate of any sales associate licensed under and associated  with
 48    a  broker  whose  license  is to be surrendered, suspended or revoked shall be
 49    returned to the commission on or before the effective date of  the  notice  or
 50    order surrendering, suspending or revoking the broker's license.
 51        SECTION  9.  That  Section 54-2044, Idaho Code, be, and the same is hereby
 52    amended to read as follows:
  1    order  that  the  financial  interests of the consumers of Idaho be adequately
  2    protected, each designated broker is required to create and maintain the  fol-
  3    lowing  records  regarding  any  real estate trust account, and is required to
  4    reconcile and balance each trust account with all ledger  records,  the  check
  5    register  and  the  bank  statement  at  least once each month. Any electronic
  6    recordkeeping system is required to have a  generally  accepted  and  adequate
  7    backup system in use at all times.
  8        (1)  Maintenance  ledger  record. A separate ledger card or record, herein
  9    called "ledgers," identified as "trust account maintenance fund" shall be ini-
 10    tiated when the broker's or firm's funds  are  initially  deposited  into  the
 11    trust  account.  These  ledgers  shall be filed at all times with the broker's
 12    current "open" ledgers of pending transactions.  Additions  or  deductions  to
 13    trust  account maintenance funds shall be posted to the ledger records as soon
 14    as the broker  is given notice of the deposit or  deduction.  The  balance  on
 15    this maintenance fund ledger shall be kept current at all times.
 16        (2)  Individual  trust ledger records. An individual trust ledger shall be
 17    immediately created whenever a broker, or any licensed  or  unlicensed  person
 18    representing  the  broker, receives earnest money or other consideration, even
 19    if the consideration will be deposited with, held by, paid directly to, trans-
 20    ferred or delivered to a title company,  other  approved  depository,  or  any
 21    other person, as directed in writing, and signed by both parties to the trans-
 22    action.  Receipt  of  consideration, for purposes of this chapter, occurs when
 23    the broker or any person representing the broker, takes physical possession of
 24    the consideration or assumes the responsibility to deliver or deposit it.
 25        (3)  When a broker deposits funds with another broker, an approved deposi-
 26    tory, or directly to the seller or any other person, as directed in writing by
 27    both parties to the transaction, a ledger record must be created by the trans-
 28    ferring broker, with a transaction number assigned. Upon transfer of funds  or
 29    consideration,  a  receipt  for such deposit shall be obtained and retained in
 30    the transaction files of the transferring broker. The receipt  must  show  the
 31    name of the payee and date of transfer.
 32        (4)  Additional  requirements  for  creating  an  individual  trust ledger
 33    record are set forth in section 54-2045, Idaho Code. Individual  trust  ledger
 34    records must each be assigned a transaction number. In addition, each individ-
 35    ual trust account ledger record created must contain:
 36        (a)  The next chronological transaction number for each transaction;
 37        (b)  The names of both parties to the transaction;
 38        (c)  The location of the property;
 39        (d)  The date of each deposit and disbursement;
 40        (e)  The name of the payor or payee;
 41        (f)  The amount and check number of each disbursement;
 42        (g)  The amount and nature of the deposit;
 43        (h)  The current balance; and
 44        (i)  After  the  transaction is closed, each individual ledger record must
 45        show the final disposition of the transaction and funds.
 46    A broker's trust account ledger records must be maintained with one (1)  file,
 47    electronic or hard copy, for closed, terminated and rejected transactions, and
 48    a  separate file for transactions pending but not closed. Ledger records shall
 49    be kept in alphabetical order or by transaction number. Ledger posting must be
 50    kept current at all times.
 51        (5)  Trust account checks. The broker shall  maintain  consecutively  num-
 52    bered checks for each trust account, which checks must:
 53        (a)  Contain  the  broker's  licensed  business  name and current business
 54        address; and
 55        (b)  Be imprinted with the words "real estate trust account."
  1        (6)  Check register or journal. A check register or journal must be posted
  2    properly, maintained and kept current by the broker at all times even if funds
  3    are held at a title company or other approved depository.  The  register  must
  4    itemize deposits and disbursements in consecutive order, and must also clearly
  5    show:
  6        (a)  The date of the deposit or disbursement;
  7        (b)  The payee or payor;
  8        (c)  The amount and purpose of any deposits or disbursements;
  9        (d)  The check number;
 10        (e)  The transaction number; and
 11        (f)  The current cash balance remaining in that trust account.
 12        (7)  Duplicate  bank  deposit  record.  For each trust account, the broker
 13    shall maintain, in hard copy, a duplicate bank deposit record, which shall  be
 14    imprinted  with  the  broker's business name and the words, "real estate trust
 15    account." Each deposit record shall state:
 16        (a)  The name of the person or firm placing the money  with  the  broker's
 17        office;
 18        (b)  The date of the deposit; and
 19        (c)  The  transaction  number.  The  duplicate  deposit  record  shall  be
 20        retained  in the bank deposit records in proper chronological sequence and
 21        shall be date stamped by the bank or the bank  deposit  receipt  shall  be
 22        attached to the duplicate deposit record in the deposit records.
 23        (8)  Real  estate trust account checks. For each trust account, the broker
 24    shall maintain  a  set  of  consecutively  numbered  checks,  which  shall  be
 25    imprinted  with  the  broker's  business  name and address and the words "real
 26    estate trust account." Any check drawn on such a trust account shall be  iden-
 27    tified  by  a  transaction  number  noted on the face of the check. Any voided
 28    trust account check shall be marked "VOID" and retained in numerical  sequence
 29    with the other checks for the banking month.
 30        SECTION  10.  That Section 54-2045, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
 33    otherwise  provided  in this section, all entrusted funds received by a broker
 34    in connection with a regulated real estate  transaction,  including,  but  not
 35    limited to, earnest money, shall be deposited into a real estate trust account
 36    maintained  by  the  broker at an approved depository. located in the state of
 37    Idaho. In addition, all earnest money, option money, promissory notes,  tangi-
 38    ble  personal  property  and  any  other  consideration  received by a broker,
 39    regardless of form, must be accounted for upon receipt and  in  the  following
 40    manner:
 41        (1)  Time  of  deposit.  All  moneys received by a broker for another in a
 42    real estate transaction are to be deposited on or before the banking day imme-
 43    diately following the receipt day of such funds, unless  written  instructions
 44    signed by the party or parties having an interest in the funds direct the bro-
 45    ker to do otherwise.
 46        (2)  Checks  held  in  uncashed form. A ledger record must also be created
 47    when the broker or associate receives a check to be held  for  later  deposit.
 48    However,  such a check must be accompanied by written instructions in the pur-
 49    chase and sale agreement or offer to withhold deposit until  a  time  certain,
 50    such as acceptance of the offer by the seller.
 51        (3)  Consideration  returned  before deposit. A ledger record must also be
 52    created even if the consideration received by a broker or salesperson is to be
 53    returned before it has been deposited or  otherwise  properly  transferred.  A
  1    written and dated notation must be placed on both the purchase and sale agree-
  2    ment,  offer or other document dealing with the consideration, and on the led-
  3    ger record. No consideration is to be returned without the knowledge and  con-
  4    sent of the broker.
  5        (4)  Consideration received by sales associate. All consideration, includ-
  6    ing  cash,  checks  held  in uncashed form and promissory notes, received by a
  7    sales associate in connection with a real estate transaction shall be  immedi-
  8    ately delivered to the broker or the broker's office.
  9        SECTION  11.  That Section 54-2051, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
 11        54-2051.  OFFERS TO PURCHASE. (1) A broker or sales  associate  shall,  as
 12    promptly  as practicable, tender to the seller every written offer to purchase
 13    obtained on the real estate involved, up until  time  of  closing,  and  shall
 14    obtain  the  signature of the seller or seller's agent verifying time and date
 15    such offer was received. A purchase and sale agreement signed by the  prospec-
 16    tive buyer shall be deemed in all respects an offer to purchase.
 17        (2)  Immediately  upon receiving any offer to purchase signed and dated by
 18    the buyer and any consideration, a broker or salesperson shall provide a  copy
 19    of the offer to purchase to the buyer as a receipt.
 20        (3)  Upon  obtaining a properly signed and dated acceptance of an offer to
 21    purchase, the broker or sales associate shall promptly deliver true and  legi-
 22    ble copies of such accepted offer to both the buyer and the seller.
 23        (4)  The  broker  or sales associate shall make certain that all offers to
 24    purchase real property or any interest therein are in writing and contain  all
 25    of the following specific terms, provisions and statements:
 26        (a)  All  terms  and conditions of the real estate transaction as directed
 27        by the buyer or seller;
 28        (b)  The actual form and amount of the consideration received  as  earnest
 29        money;
 30        (c)  The  name of the responsible broker in the transaction, as defined in
 31        section 54-2048, Idaho Code;
 32        (d)  The  "representation  confirmation"  statement  required  in  section
 33        54-2085(4), Idaho Code, and, only if applicable to  the  transaction,  the
 34        "consent  to  limited dual representation" as required in section 54-2088,
 35        Idaho Code;
 36        (e)  A provision for division of earnest money retained by any  person  as
 37        forfeited payment should the transaction not close;
 38        (f)  All appropriate signatures; and
 39        (g)  A legal description of the property.
 40        (5)  All  changes  made to any offer to purchase or other real estate pur-
 41    chase agreement shall be initialed and dated by the parties  to  the  transac-
 42    tion.
 43        SECTION  12.  That Section 54-2056, Idaho Code, be, and the same is hereby
 44    amended to read as follows:
 46    Termination  of  licensed  association.  A  sales associate who terminates his
 47    licensed association with a broker shall provide the broker written notice  of
 48    the  termination  no  later  than  three (3) business days after the effective
 49    date. A broker who terminates the licensed association of  a  sales  associate
 50    shall  provide  the  associate written notice of the termination no later than
 51    three (3) business days after the effective date. A licensee's written  notice
  1    to  the  commission does not relieve him of the duty to provide written notice
  2    to the other licensee that he is terminating the  licensed  association.  Upon
  3    written  notice  of  the  termination of a sales associate's licensed business
  4    association with a broker, whether by the broker or by  the  sales  associate,
  5    the  broker  shall remove from public view the former associate's license cer-
  6    tificate.
  7        (2)  New association. The broker shall submit a  written  application,  in
  8    the  form  and  manner  approved  by  the commission, for each sales associate
  9    licensing with the broker.
 10        (3)  Termination for cause. Any broker who terminates the association of a
 11    sales associate for the violation of any of the provisions of sections 54-2059
 12    through 54-2065, Idaho Code, shall, within ten (10) business days of the  ter-
 13    mination,  notify the commission, in writing, of the termination and the facts
 14    giving rise to the termination.
 15        (4)  Closing a branch office. Immediately upon closing  a  branch  office,
 16    the broker shall provide the commission written notice of the closure advising
 17    of the new status of all licensees licensed with the closed branch. The broker
 18    shall  immediately  remove from public view the branch office any license cer-
 19    tificate and the license certificates  of all licensees licensed  in  for  the
 20    branch office.
 21        (5)  Property of the broker. Upon termination of the business relationship
 22    as  a sales associate licensed under a broker, the sales associate shall imme-
 23    diately turn over to the broker all listing information and listing contracts,
 24    keys, purchase and sale agreements  and  similar  contracts,  buyer  brokerage
 25    information and contracts, and other property belonging to the broker. A sales
 26    associate shall not engage in any practice or conduct, directly or indirectly,
 27    which  encourages,  entices  or induces clients of the broker to terminate any
 28    legal business relationship with the broker unless he  first  obtains  written
 29    permission of the broker.
 30        (6)  Location  of  trust  accounts  and  file  records.  When  an actively
 31    licensed broker changes to a license status other than that  of  a  designated
 32    broker,  that individual must notify the commission in writing of the location
 33    of all trust accounts and  transaction  file  records  which  the  broker  was
 34    responsible  for  during  the  term of licensure as a designated broker. These
 35    records shall be available to the commission for three (3) years following the
 36    year in which each transaction was closed.
 37        (7)  Terminating relationships between a broker and a sole  proprietorship
 38    owned  by a person other than the broker. When a broker for a sole proprietor-
 39    ship, owned by a person other than the broker, terminates an association  with
 40    the  owner, all records and  trust account funds shall become the property of,
 41    and be maintained and disbursed by, the terminating broker in accordance  with
 42    this chapter and applicable rules promulgated thereunder. The terminating bro-
 43    ker  shall  deliver,  upon  request made in writing by the clients and the new
 44    broker of that sole proprietorship, such records and trust account funds  per-
 45    taining  to  that  client,  to  the  new  broker who shall thereafter have the
 46    responsibility for preservation and  disbursement,  in  accordance  with  this
 47    chapter and applicable rules promulgated thereunder.

Statement of Purpose / Fiscal Impact

                          STATEMENT OF PURPOSE

                               RS 16499C4
This is the Commission's annual Housekeeping Bill. As in previous
years, this bill covers matters emerging from the recent legislative
and program development in the continuing education arena. It also
responds to changes in licensing system capabilities and record keeping
practices. These amendments include:

       (1)     changing definitions to treat as "live" courses all real-time,
       interactive video courses;
       (2)     amending sections 54-2016, 54-2018, 54-2020, 54-2040, and 54-
       2056, to eliminate the requirement for physical license
       (3)     changing the incidental fee amounts established in 54-2020 to
       "caps," and allowing the Commission to set the same or lower
       fees in its administrative rules; (no fee increase is being
       (4)     amending section 54-2023(5) (c)to eliminate the advance-notice
       requirement, and to increase the number of credit hours
       available for attending a Commission meeting;
       (5)     amending section 54-2027 to provide that student evaluations
       of pre-license education courses be treated in the same,
       efficient manner as student evaluations of continuing
       education courses; and to restore to the Commission authority
       over the teaching of courses offered to meet licensing
       (6)     amending the instructor recertification requirement in section
       54-2035, to enlarge the means by which an instructor can
       demonstrate his ability to adequately teach the course;
       (7)     amending section 54-2044 to permit record keeping in
       alphabetical order, as an option to chronological order;
       (8)     amending section 54-2045 to delete the requirement that trust
       accounts be located in Idaho. In 2005, SB 1010 eliminated this
       requirement from all other sections of the License Law.
       Section 54-2045 was inadvertently omitted from that bill; and
       (9)     amending section 54-2051 to delete the requirement that
       licensees obtain a signed and dated receipt of all offers to
       purchase real estate.

                             FISCAL NOTE
None to the General Fund.
None to IREC.
None to any other state or local political subdivision.

Name: Jeanne Jackson-Heim
Agency: Real Estate
Phone:  334-3285

STATEMENT OF PURPOSE/FISCAL NOTE                                       S 1109