The bill HB225 amends the Code of Alabama 1975 to enhance the licensure and regulation of real estate professionals and educational institutions. It introduces new definitions such as "accredited school," "continuing education course," and "prelicense course," while granting the commission exclusive authority to license and regulate prelicense and continuing education schools. These schools are now required to obtain a surety bond not exceeding $20,000 to protect against damages related to tuition or fees. The bill also updates terminology, replacing outdated terms like "principal school" and "branch school," and clarifies the commission's responsibilities in regulating educational offerings. Additionally, it mandates that schools secure a new bond within ten days if their existing bond is revoked or canceled.

Further changes include the establishment of new fee structures for schools, with annual prelicense fees set at $250 and continuing education school approval fees at $100. The bill enhances the commission's enforcement authority, increasing maximum fines from $2,500 to $5,000 for violations, and introduces performance improvement plans for schools with low licensing exam passage rates. It also modifies the licensing process for brokers and salespersons, requiring applicants to pass a written examination and complete specific educational courses. The bill clarifies the responsibilities of qualifying brokers and updates the renewal fees for licenses, while also stipulating that inactive licenses must be renewed similarly to active ones. Overall, HB225 aims to improve the quality and oversight of real estate education and licensing in Alabama.

Statutes affected:
Introduced: 34-27-6, 34-27-32, 34-27-33, 34-27-34, 34-27-35, 34-27-36
Engrossed: 34-27-6, 34-27-32, 34-27-33, 34-27-34, 34-27-35
Enrolled: 34-27-6, 34-27-32, 34-27-33, 34-27-34, 34-27-35