2021 -- H 5268

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LC000869

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE BROKERS AND

SALESPERSONS

     

     Introduced By: Representatives Diaz, and Slater

     Date Introduced: January 29, 2021

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 5-20.5-4 and 5-20.5-6 of the General Laws in Chapter 5-20.5 entitled

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"Real Estate Brokers and Salespersons" are hereby amended to read as follows:

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     5-20.5-4. Examination of applicants -- Examination fee -- Licensing without

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examination.

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     (a) The director shall require any applicant for a real estate broker's or salesperson's license

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to submit to and pass a written examination to show the applicant's knowledge of the state statutes

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and the rules and regulations relating to real property, deeds, mortgages, leases, contracts, fair

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housing and agency. An applicant shall not be required to take the uniform portion of the Rhode

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Island real estate licensing examination if the applicant provides sufficient evidence that the

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applicant possesses an existing valid real estate license from a state that has similar statutes or

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regulations in effect which provide for reciprocal waiver of the uniform portion of the real estate

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licensing examination for persons holding an existing valid Rhode Island real estate broker's or

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salesperson's license. An applicant for a real estate broker's or salesperson's license, prior to the

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taking of the examination, must pay an examination fee, the cost of which is limited to the charge

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as designated by the appropriate testing service's contract with the department of business

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regulation.

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     (b) An applicant for a real estate salesperson's license must submit satisfactory evidence of

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completion of a minimum of forty-five (45) classroom hours in a real estate course given by a

 

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school as defined in § 5-20.5-19. The applicant for a broker's license must also submit satisfactory

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proof that he or she: (i) Has been engaged full time as a real estate salesperson for at least two (2)

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years immediately prior to the date of application; and (ii) Has successfully completed at least

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ninety (90) hours of approved classroom study in a school as defined in § 5-20.5-19, or equivalent

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in a correspondence course offered by an extension department of an accredited college or

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university. The director, in his or her sole discretion, may require any additional evidence or proof

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as to the honesty, trustworthiness, integrity, good reputation, and competency of any applicant.

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     (c) Any successful applicant who fails to remit the original license fee as provided in § 5-

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20.5-11 within one year of the date of that examination may be required by the director to re-submit

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to and pass a written examination as provided in subsection (a) of this section.

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     (d) When an attorney-at-law licensed by the supreme court of the state desires to have a

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real estate broker's license or a real estate salesperson's license, the attorney, by application, and

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upon payment of the applicable fee as provided in § 5-20.5-11, shall be granted a license without

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examination.

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     (e) A certificate of licensure shall be issued by the real estate division of the department of

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business regulation within thirty (30) days after it is requested at a cost of not more than twenty-

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five dollars ($25.00) for each certificate issued.

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     5-20.5-6. Duration of licenses -- Rules and regulations -- Suspension or revocation of

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licenses Duration and renewal of licenses -- Continuing education-rules and regulations --

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Suspension or revocation of licenses.

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     (a) If the director is satisfied that the applicant is competent and trustworthy and is

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reasonably familiar with the statutes and law relating to real estate, he or she shall issue to the

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applicant a license to act as a real estate broker or a real estate salesperson. The director shall

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promulgate rules and regulations mandating the term of license for each category of license issued

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pursuant to this chapter. No license shall remain in force for a period in excess of three (3) years.

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Any fee for the initial issuance of a license or for renewal of a license issued pursuant to this chapter

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is determined by multiplying the current annual fee by the term of years of the license or renewal.

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The fee for the total number of years of the initial license or of the renewal shall be paid in full

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prior to the issuance of the respective license. The license shall be renewed upon payment of the

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renewal fee and proof of completion of any continuing education requirements as set forth in the

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rules and regulations issued by the department of business regulation. Any license issued or

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renewed may be suspended or revoked by the director, for cause, prior to the expiration date. The

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director shall issue reasonable rules and regulations with the consent of the majority of the Rhode

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Island real estate commission governing the conduct of licensed real estate brokers and

 

LC000869 - Page 2 of 5

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salespersons. These rules and regulations shall be designed to implement the laws and policies of

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this state and to protect the interests of the public.

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     (b) Except as provided in subsection (d) of this section, all applicants for a renewal license

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for real estate brokers or real estate salespersons, shall submit proof to the director that they have

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completed during the preceding two (2) year period, a minimum of twenty-four (24) hours of real

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estate oriented educational sessions or courses of instruction that have been previously approved

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by the director.

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     (c) The license shall be renewed upon payment of the renewal fee and proof of completion

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of continuing education requirements as set forth in the rules and regulations issued by the

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department of business regulation. Any license issued or renewed may be suspended or revoked by

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the director, for cause, prior to the expiration date. The director shall issue reasonable rules and

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regulations with the consent of the majority of the Rhode Island real estate commission governing

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the conduct of licensed real estate brokers and salespersons. These rules and regulations shall be

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designed to implement the laws and policies of this state and to protect the interests of the public.

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     (b)(d) Any rules or regulations promulgated with regard to the requirement of continuing

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education for the renewal of any real estate broker's or salesperson's license whose application for

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an initial broker's or salesperson's license is approved within one hundred eighty (180) days of the

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expiration date of his or her initial license is not subject to the continuing education requirement at

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the time of his or her first renewal. The director, after a due and proper hearing, may suspend,

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revoke, or refuse to renew any license upon proof that it was obtained by fraud or misrepresentation

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or that the holder of the license has been guilty of fraud or misrepresentation or criminal acts in the

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performance of his or her functions, or upon proof that the holder of the license has violated this

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statute or any rule or regulation issued pursuant to this statute.

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     (c)(e) The director shall, for licenses issued or renewed after July 1, 2004, require proof of

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reasonable familiarity with and knowledge of duties and responsibilities established by the lead

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poisoning prevention act, chapter 24.6 of title 23, and the lead hazard mitigation act, chapter 128.1

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of title 42. Notwithstanding the provisions of subsection (b) of this section, the requirements of this

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subsection shall apply to first renewals when licenses were initially issued before July 1, 2004. This

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subsection shall be put into force and effect by the director in the manner set forth in chapter 128.1

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of title 42 and with the advice of the Rhode Island real estate commission.

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     (f) The director shall, for all licenses that are issued or renewed after January 1, 2022,

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require proof of reasonable familiarity with and knowledge of duties and responsibilities

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established by chapter 37 of title 34 (the Rhode Island fair housing practices act).

 

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     SECTION 2. This act shall take effect on January 1, 2022.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE BROKERS AND

SALESPERSONS

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     This act would require all applicants for a real estate broker's or salesperson's license to

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submit and pass a written examination to include topics on fair housing. This act would require all

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real estate licensees to complete a minimum of twenty-four (24) hours of approved continuing

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education courses during each twenty- four (24) month license renewal section.

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     This act would take effect on January 1, 2022.

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