2021 -- S 0413

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LC002155

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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: Senators Quezada, Calkin, Murray, Lawson, and Bell

     Date Introduced: February 25, 2021

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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

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

examination.

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

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

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

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

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

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

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

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

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

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

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

regulation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

examination.

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

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

five dollars ($25.00) for each certificate issued.

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

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

Suspension or revocation of licenses.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

this state and to protect the interests of the public.

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

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

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

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

by the director.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     This act would take effect on January 1, 2022.

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LC002155

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