SB-0641, As Passed Senate, November 14, 2013
SUBSTITUTE FOR
SENATE BILL NO. 641
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2502a, 2504, and 2508 (MCL 339.2502a,
339.2504, and 339.2508), section 2502a as added by 2002 PA 611,
section 2504 as amended by 2003 PA 196, and section 2508 as amended
by 1988 PA 16, and by adding section 2504a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2502a. (1) Beginning November 1, 2003, the The department
shall issue a license for a real estate broker, associate real
estate broker, and real estate salesperson for a term of 3 years.
(2) The department shall renew a license for a real estate
broker, associate real estate broker, or real estate salesperson if
the department receives an application for renewal on a form
prescribed by the department, and payment of the appropriate fees,
within the time period described in section 411(1) or (2), and the
applicable requirements of section 2504a are met.
(3) The department may relicense without examination a person
that fails to renew a license issued under this article within the
time period described in subsection (2) if all of the following are
met:
(a) The person applies within 3 years after the expiration
date of the person's last license.
(b) The person pays an application processing fee, the late
renewal fee, and the per-year license fee for the upcoming
licensure period.
(c) Proof of the person's completion of 6 clock hours of
continuing education for each year and partial year that have
elapsed since the expiration of the person's last license, on the
topics described in section 2504a(1), is submitted to the
department by the provider of those hours of continuing education.
(4) The department may relicense a person that failed to renew
a real estate broker license within 3 years after the expiration
date of the person's last license if the person pays an application
processing fee, the late renewal fee, and the per-year license fee
for the upcoming licensure period and submits proof that the
person, if the person is an individual, or the individual
designated as the person's principal under section 2505 if the
person is not an individual, meets any of the following:
(a) Has completed a total of 6 clock hours of continuing
education for each year and partial year that have elapsed since
the expiration of the person's last license, on the topics
described in section 2504a(1).
(b) Has completed 90 clock hours of prelicensure courses
described in section 2504(3).
(c) Has passed the examination required for a real estate
broker license under section 2505(5).
(5) The department may relicense an individual who failed to
renew a real estate salesperson license within 3 years after the
expiration date of his or her last license if he or she pays an
application processing fee, the late renewal fee, and the per-year
license fee for the upcoming licensure period and submits proof
that he or she meets any of the following:
(a) Has completed a total of 6 clock hours of continuing
education for each year and partial year that have elapsed since
the expiration of his or her last license, on the topics described
in section 2504a(1).
(b) Has completed 40 clock hours of prelicensure courses
described in section 2504(3).
(c) Has passed the examination required for a real estate
salesperson license under section 2505(5).
Sec.
2504. (1) Before receiving Both
of the following must be
met
before an applicant receives a real
estate broker's license ,
an
applicant shall under this
article:
(a)
The applicant must submit an
application as described in
under
section 2505. and
shall have successfully completed not less
than
(b) The applicant, if the applicant is an individual, or the
individual designated as the principal of the applicant under
section 2505 if the applicant is not an individual, must
successfully complete at least 90 clock hours of approved
prelicensure
classroom courses in real estate, of
which not less
than
at least 9 clock hours shall be is instruction
on civil rights
law
and equal opportunity in housing. The 90 hours shall be are in
addition to the hours required to obtain a real estate
salesperson's license.
(2)
Before being he or she is permitted to take the real
estate
salesperson's examination, an the
applicant shall must show
proof
of successful completion of not less than that he or she has
successfully completed at least 40 clock hours of approved
prelicensure classroom courses in principles of real estate, of
which
not less than at least 4 clock hours shall be is instruction
on civil rights law and equal opportunity in housing.
(3) For purposes of subsections (1) and (2), approved
prelicensure courses may be on the following topics:
(a) Real estate license law and related regulatory laws.
(b) Real property law, including property interests and
restrictions.
(c) Federal, state, and local tax laws affecting real
property.
(d) Conveyances, including contracts, deeds, and leases.
(e) Financing, including mortgages, land contracts,
foreclosure, and limits on lending procedures and interest rates.
(f) Appraisal of real property.
(g) Design and construction.
(h) Marketing, exchanging, and counseling.
(i) The law of agency.
(j) Sales and office management, including listing and selling
techniques.
(k) Real estate securities and syndications.
(l) Investments, including property management.
(4)
Except as otherwise provided in this subsection, before
being
permitted to renew an active real estate broker's or real
estate
salesperson's license, a licensee shall have successfully
completed,
within the preceding 12 months, not less than 6 clock
hours
of continuing education approved by the department involving
any
topics relevant to the management, operation, and practice of
real
estate and covering changes in economic conditions, law,
rules,
court cases, and interpretations, or any combination of
those
changes, relating to real property which are pertinent to the
activities
of a real estate broker or real estate salesperson.
Beginning
November 1, 2003, a licensee shall complete not less than
18
hours of continuing education per 3-year license cycle. A
licensee
shall complete at least 6 hours of the required 18 hours
of
continuing education courses during the time period from
November
1, 2003 and ending on December 31, 2004. During calendar
year
2005, a licensee shall complete at least 6 hours of the
required
18 hours of continuing education courses. During calendar
year
2006, a licensee shall complete at least 4 hours of the
required
18 hours of continuing education courses. During calendar
year
2007 and thereafter, a licensee shall complete at least 2
hours
per calendar year of the required 18 hours of continuing
education
courses. Any education successfully completed by a
licensee
for further professional designation and approved by the
department
as continuing education may be counted toward the total
continuing
education credits required for the 3-year license cycle.
Each
licensee, in completing the appropriate number of clock hours,
will
have the option of selecting the education courses in that
licensee's
area of expertise, as long as the education courses are
approved
by the department and as long as at least 2 hours of an
education
course per calendar year involve law, rules, and court
cases
regarding real estate. Notwithstanding the provisions of this
subsection,
the department may renew the license of a licensee who
has
completed not less than 18 hours of continuing education in the
subject
matter areas required by this subsection during the 3-year
license
cycle but has not otherwise met the requirements of this
section
if the licensee provides evidence satisfactory to the
department
that he or she has good cause for not complying with the
requirements
in this subsection.
(5)
The department may relicense without examination a
licensee
whose license has lapsed for less than 3 years if the
licensee
shows proof of completion of not less than 6 clock hours
of
continuing education for each year the license was lapsed, on
topics
as described in subsection (4).
(6)
The department may relicense a broker whose license has
lapsed
for 3 or more continuous years if the licensee provides
proof
of the successful completion of 1 of the following:
(a)
Six clock hours of continuing education for each of the
years
the license was lapsed on topics described in subsection (4).
(b)
Ninety clock hours of instruction described in subsections
(1)
and (3).
(c)
Passing the examination required for licensure as a broker
as
provided for in section 2505(5).
(7)
A salesperson whose license has been lapsed for 3 or more
continuous
years may be relicensed if the licensee provides proof
of
the successful completion of 1 of the following:
(a)
Six clock hours of continuing education for each of the
years
the license was lapsed on topics described in subsection (4).
(b)
Forty clock hours of instruction described in subsections
(2)
and (3).
(c)
Passing the examination required for licensure as a
salesperson
as provided in section 2505(5).
(8)
The department shall not apply the course credits used to
meet
continuing education requirements provided in subsections (4)
through
(7) towards the real estate broker's license education
requirements
provided in subsection (1), and course credits taken
under
real estate broker's license education requirements shall not
be
applied towards the continuing education requirements. The
department
shall apportion the approved course credits eligible for
education
requirements in subsection (1) and subsections (4)
through
(7) to meet either requirement upon the licensee's request.
(9) For real estate brokers, associate brokers, and
salespersons
who receive a license issued in the second or third
years
of a 3-year license cycle, continuing education shall be in
compliance
with subsection (4), except for the following:
(a)
A real estate broker, associate broker, or salesperson who
receives
a license issued in the second year of the 3-year license
cycle
is required to complete 12 hours of continuing education to
renew
his or her license.
(b)
A real estate broker, associate broker, or salesperson who
receives
a license issued in the third year of the 3-year licensing
cycle
is required to complete 6 hours of continuing education to
renew
his or her license.
(4) (10)
A person who that offers
or conducts a course or
courses of study represented to meet the educational requirements
of this article first shall obtain approval from the department and
shall comply with the rules of the department concerning
curriculum, instructor qualification, grading system, and other
related matters. In addition to other requirements imposed under
rule, in order to receive approval a course shall be designed to be
taught
for not less than at least
1 clock hour, not including time
spent on breaks, meals, or other unrelated activities, provided the
course
is only approved for less than 2 clock hours if, based upon
on the subject matter, course outline, instructional materials,
methodology, and other considerations consistent with rules of the
department, the department determines that the course objectives
can be effectively met in the proposed time period. The department
may suspend or revoke the approval of a person for a violation of
this article or of the rules promulgated under this article. A
person
offering or conducting that
offers or conducts a course
shall not represent that its students are assured of passing an
examination required by the department. A person shall not
represent that the issuance of departmental approval is a
recommendation or indorsement of the person to which it is issued
or
of a course of instruction given by it. A pre-licensure
prelicensure
course approved under this article section shall
be
conducted by a local public school district, a community college,
an institution of higher education authorized to grant degrees, or
a
proprietary school licensed by the department of career
development
under the proprietary schools act, 1943 PA 148, MCL
395.101 to 395.103.
(5) (11)
A person who in operating a
school that violates
subsection
(10) (4) in operating a
school that provides 1 or more
courses described in this section is subject to the penalties set
forth in article 6.
(6) (12)
The department may conduct, hold,
or assist in
conducting or holding, a real estate clinic, meeting, course, or
institute, which shall be open to a person licensed under this
article, and may incur the necessary expenses in connection with
the clinic, meeting, course, or institute. The department, in the
public
interest, may assist educational institutions within in this
state in sponsoring studies, research, and programs for the purpose
of raising the standards of professional practice in real estate
and the competence of a licensee.
Sec. 2504a. (1) Within each 3-year license cycle, a licensee
shall successfully complete at least 18 clock hours of continuing
education courses conducted by a person described in section
2504(4) that involve any topics that are relevant to the
management, operation, and practice of real estate or that are
otherwise pertinent to the activities of a real estate broker or
real estate salesperson. All of the following apply to this
continuing education requirement:
(a) In each calendar year of each 3-year license cycle, a
licensee shall complete at least 2 hours of the required 18 hours
of continuing education courses.
(b) In completing the appropriate number of continuing
education courses, a licensee may select education courses in his
or her area of expertise, but at least 2 hours of the education
courses in a calendar year must involve law, rules, and court cases
regarding real estate.
(c) At the time he or she attends a continuing education
course, a licensee shall do both of the following to confirm his or
her identity:
(i) Present his or her pocket card, or provide his or her
license identification number, from the department to the course
provider.
(ii) Present his or her operator's license or chauffeur's
license issued under the Michigan vehicle code, 1949 PA 300, MCL
257.1 to 257.923, an official state personal identification card
issued under 1972 PA 222, MCL 28.291 to 28.300, or other
government-issued photo identification to the course provider.
(d) Any education course that the licensee successfully
completes to obtain a professional designation is counted toward
the total continuing education credits required in a 3-year license
cycle if the courses are conducted by a person described in section
2504(4).
(e) If a license successfully completes a continuing education
course with a particular course title or course number, he or she
does not earn additional hours toward the requirements of this
section if he or she repeats that course.
(2) An applicant for license renewal under section 2502a shall
certify compliance with subsection (1) to the department. A
licensee shall retain evidence that demonstrates he or she has met
the continuing education requirements under this section for at
least 4 years after the date of that certification and shall
produce the record that contains that evidence at the request of
the department.
(3) A real estate broker, associate broker, or salesperson who
receives a license issued in the second or third year of a 3-year
license cycle is required to comply with the continuing education
requirements under subsection (1), except as follows:
(a) A real estate broker, associate broker, or salesperson who
receives a license issued in the second year of the 3-year license
cycle is required to complete 12 hours of continuing education.
(b) A real estate broker, associate broker, or salesperson who
receives a license issued in the third year of the 3-year license
cycle is required to complete 6 hours of continuing education.
(4) Course credits used to meet continuing education
requirements under this section do not apply toward the real estate
broker's license prelicensure education requirements under section
2504, and course credits successfully completed under real estate
broker's license prelicensure education requirements under section
2504 do not apply toward the continuing education requirements of
this section.
Sec.
2508. (1) A The department
may issue a real estate
broker's
license may be issued to an individual, sole
proprietorship,
partnership, association,
corporation, limited
liability company, common law trust, or a combination of those
entities. A real estate broker's license that is issued to an
individual
or a sole proprietorship shall entitle entitles the
individual
named on the license to perform acts regulated by under
this article. Subject to subsection (2), a real estate broker's
license issued to a partnership, association, corporation, limited
liability company, common law trust, or a combination of those
entities
shall entitle entitles those individuals designated as
principals
under section 2505(1) to perform acts regulated by under
this article. A broker's license issued to a partnership,
association, corporation, limited liability company, common law
trust, or a combination of those entities is not transferable.
(2) Before performing acts regulated under this article, each
principal shall apply for and obtain, and any other individual may
apply for and obtain, an associate real estate broker's license. An
applicant
for an associate real estate broker's license shall be is
subject to the same requirements as an applicant for a real estate
broker's
license. An The department
shall only issue an associate
real
estate broker's license shall only be issued to individuals.an
individual.
(3) The associate real estate broker's license of a principal
who ceases to be connected with a partnership, association,
corporation, limited liability company, common law trust, or a
combination
of those entities shall be is
suspended automatically.
(4) An associate real estate broker's license that is issued
to a principal is not transferable. An associate real estate
broker's license issued to a nonprincipal may be transferred in the
same manner as provided in section 2507 for the transfer of a real
estate salesperson's license.
(5)
Upon the revocation of If a real estate broker's license
is revoked, the licenses of all real estate salespersons who are
employed by the real estate broker and all affiliated associate
real
estate brokers shall are automatically be suspended, pending a
change
of employer and the issuance of a new license. A The
department
shall issue a new license shall be
issued under this
subsection
without charge , if the license is issued during the
same term in which the original license was issued.
(6) In the event of the death or disability of a sole
principal associate broker, the department shall allow all
affiliated real estate licensees a reasonable time to either wind
up the business of the real estate broker or designate a new
principal associate broker.