1 SB404
2 213687-1
3 By Senator Roberts
4 RFD: Governmental Affairs
5 First Read: 27-APR-21
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1 213687-1:n:04/26/2021:KMS/cmg LSA2021-1233
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8 SYNOPSIS: Under existing law, the Alabama Real Estate
9 Commission is responsible for licensing real estate
10 brokers and salespersons in the state.
11 This bill would authorize the commission to
12 provide for live virtual online education courses,
13 and would provide further for the content of
14 certain courses.
15 This bill would revise the method of
16 appointing members to the commission.
17 This bill would prohibit the commission from
18 engaging in political activity, hiring lobbyists,
19 or engaging in political speech or activity
20 otherwise prohibited by law.
21 This bill would provide further for the
22 qualifications for licensure of a real estate
23 broker and real estate salesperson.
24 This bill would provide that the license of
25 any licensee providing faulty payment to the
26 commission be declared inactive.
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1 This bill would also make nonsubstantive,
2 technical revisions to update the existing code
3 language to current style.
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5 A BILL
6 TO BE ENTITLED
7 AN ACT
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9 Relating to the Alabama Real Estate Commission; to
10 amend Sections 34-27-6, 34-27-7, 34-27-8, 34-27-32, 34-27-35,
11 and 34-27-36, Code of Alabama 1975; to provide for live
12 virtual online education courses and the content of certain
13 courses; to revise the method of appointing members to the
14 commission; to prohibit the commission from engaging in
15 political activity, hiring lobbyists, or otherwise engaging in
16 political speech or activity prohibited by law; to provide
17 further for the qualifications for licensure of a real estate
18 broker and real estate salesperson; to provide that the
19 licensee of any license providing faulty payment to the
20 commission be declared inactive; to repeal Sections 34-27-5
21 and 34-27-8.1, Code of Alabama 1975, providing for county
22 lists of licensees and legislative findings related to the
23 rulemaking authority of the commission; and to make
24 nonsubstantive, technical revisions to update the existing
25 code language to current style.
26 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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1 Section 1. Sections 34-27-6, 34-27-7, 34-27-8,
2 34-27-32, 34-27-35, and 34-27-36 of the Code of Alabama 1975,
3 are amended to read as follows:
4 "34-27-6.
5 "(a) For purposes of this section and rules adopted
6 pursuant thereto, the following terms shall have the following
7 meanings:
8 "(1) ADMINISTRATOR. A person designated by a
9 principal school or branch school and approved by the
10 commission to be the person responsible to the commission for
11 all acts governed by this chapter and applicable rules which
12 govern the operation of schools.
13 "(2) APPROVED COURSE. Any course of instruction
14 approved by the commission that satisfies commission
15 requirements for prelicense education, postlicense education,
16 or continuing education.
17 "(3) APPROVED SCHOOL. Any proprietary educational
18 institution offering only commission approved continuing
19 education courses and any accredited college or university
20 that offers any commission approved course.
21 "(4) BRANCH SCHOOL. Any school under the ownership
22 of a principal school which offers commission approved courses
23 at a permanent location.
24 "(5) INSTRUCTIONAL SITE. Any physical place where
25 commission approved instruction is conducted apart from the
26 principal school or branch school.
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1 "(6) INSTRUCTOR. A person approved by the commission
2 to teach approved courses in the classroom or by distance
3 education.
4 "(7) LICENSED SCHOOL. Any proprietary school that
5 offers commission approved prelicense courses or postlicense
6 courses, or both, only after being licensed and bonded by the
7 commission.
8 "(8) PRINCIPAL SCHOOL. Any institution or
9 organization which is the primary school and not a branch
10 school that is approved by the commission.
11 "(9) PROPRIETARY SCHOOL. Any school that is not an
12 accredited college or university and which offers commission
13 approved prelicense courses or postlicense courses, or both,
14 only after being licensed and bonded by the commission. Each
15 branch school shall be licensed separately.
16 "(b)(1) The commission shall approve and regulate
17 schools that offer commission approved prelicense,
18 postlicense, and continuing education courses. The commission
19 shall be the board, commission, or agency with the sole and
20 exclusive authority to license proprietary schools and their
21 branches for the limited purpose of their offerings of
22 commission approved prelicense courses or postlicense courses,
23 or both.
24 "(2) The commission may adopt rules providing for
25 virtual online commission approved education courses for
26 prelicense, postlicense, and continuing education courses.
27 Certification requirements for virtual courses and instructors
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1 are the same as certification requirements for in person
2 classroom courses and instructors.
3 "(c) The commission shall require proprietary
4 schools to furnish a surety bond payable to the commission in
5 the amount of twenty thousand dollars ($20,000) with a surety
6 company authorized to do business in Alabama, which bond shall
7 provide that the obligor therein shall pay up to twenty
8 thousand dollars ($20,000) in the aggregate sum of all
9 judgments which shall be recovered against the school for
10 damages arising from the school's collection of tuition or
11 fees, or both, from students, but failing to provide the
12 complete instruction for which such tuition or fees were
13 collected. The bond shall remain in effect as long as the
14 school is licensed. In the event the bond is revoked or
15 cancelled by the surety company, the school shall have 10 days
16 to obtain a new bond and file it with the commission. Failure
17 to maintain a bond shall result in the immediate suspension of
18 the licenses of the school and all of its branches. The bond
19 shall be provided by the school and shall also cover any
20 branch schools named in the bond or any endorsement or
21 amendment thereto.
22 "(d) The commission shall charge a license fee for
23 each licensed principal school and shall charge a fee for each
24 branch school in the amount of two hundred fifty dollars
25 ($250) per year for each year or portion of a year remaining
26 in the respective license period. The renewal fee for each
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1 school license shall be one hundred twenty-five dollars ($125)
2 for each year of the license period.
3 "(e) The commission shall require all schools to
4 name and have approved by the commission a school
5 administrator who shall be responsible to the commission for
6 all actions of his or her respective school.
7 "(f) Principal schools shall be clearly identified
8 by signage as appropriate for the location. The signage shall
9 set out the name of the principal school. Branch schools shall
10 be clearly identified by signage as appropriate for the
11 location. The signage shall set out the name of the branch
12 school and the name of the principal school.
13 "(g) The commission shall have the authority to may
14 reprimand, fine, suspend for a period up to two years, or
15 revoke the license or approval of any school, administrator,
16 or instructor for any violation of this section or any rule of
17 the commission. The fine shall be not less than one hundred
18 dollars ($100) nor more than two thousand five hundred dollars
19 ($2,500) per count.
20 "(h) The commission shall approve, sponsor, contract
21 for or conduct, or assist in sponsoring or conducting real
22 estate courses for licensees, may charge fees, and may incur
23 and pay the necessary expenses in connection therewith.
24 "(1) The commission may approve courses with a
25 minimum duration of one hour of instruction for continuing
26 education credit and for virtual online or in person delivery.
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1 "(2) A licensee may not earn more than nine hours of
2 continuing education credit in any one day.
3 "(3) Students shall attend an entire course offering
4 before being awarded continuing education credit for that
5 course offering, and an instructor or school may not issue
6 credit to any student who does not complete an entire course
7 offering. Credit may not be awarded for time spent on meals or
8 other unrelated activities. An instructor may take a 10 minute
9 break after each 50 minutes of instruction.
10 "(i) The commission shall approve and regulate
11 instructors who teach the commission approved prelicense,
12 postlicense, and continuing education courses. The commission
13 shall establish and collect fees as determined necessary, not
14 to exceed fifty dollars ($50) per instructor annually, to
15 approved instructors who teach commission approved courses.
16 "(j) The commission shall approve courses and
17 establish and collect fees as determined necessary, not to
18 exceed one hundred dollars ($100) per application, to review
19 each course.
20 "(k) The commission shall establish one-year or
21 multi-year approval periods for schools, instructors,
22 administrators, and courses. Approval and license periods
23 shall run from October 1 of the first year of the approval
24 period through September 30 of the final year of the approval
25 period.
26 "(l) The commission shall promulgate adopt rules and
27 regulations as necessary to accomplish the purpose of this
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1 section in accordance with the Alabama Administrative
2 Procedure Act.
3 "34-27-7.
4 "(a)(1) There is created the Alabama Real Estate
5 Commission to serve the public through the licensing and
6 regulating of real estate licensees. The commission shall
7 consist of nine 10 members appointed by the Governor with the
8 advice and consent of the Senate as hereinafter provided. The
9 Governor's appointments to the commission, except for the
10 appointment of the consumer member made pursuant to subsection
11 (e), shall be made from a list of three persons nominated by
12 the. The governing body of the Alabama Professional Real
13 Estate Society the statewide professional real estate society
14 or trade association which has the largest licensee
15 membership, as evidenced by the filing of a verified list of
16 paid members with the Secretary of State within 10 days of
17 April 6, and annually by December 31 of each year thereafter.
18 At least one of the persons nominated for each commission seat
19 shall not be a member of the Real Estate Society or trade
20 association. The Governor shall appoint one of the three
21 nominated persons within 30 days following receipt of the
22 list. If the Governor does not make an appointment within 30
23 days, the said Real Estate Society or trade association shall
24 provide the Governor a list of three additional nominees. The
25 Governor, upon receipt of the second list of nominees, shall
26 appoint one of the six nominees within 30 days following
27 receipt of the nominees. Appointments made at times when the
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1 Senate is not in session shall be effective ad interim. Any
2 appointment made by the Governor while the Senate is in
3 session shall be submitted not later than the third
4 legislative day following the date of appointment. Any
5 appointment made while the Senate is not in session shall be
6 submitted not later than the third legislative day following
7 the reconvening of the Legislature., shall provide a list of
8 up to three qualified persons nominated for each position to
9 the Governor for consideration for appointment. The governing
10 body of any other statewide professional real estate society
11 or trade association, which files a verified list of paid
12 members with the Secretary of State annually by December 31 of
13 each year, may provide a list of up to three qualified persons
14 nominated for each position to the Governor for consideration
15 for appointment. All appointing authorities shall coordinate
16 their appointments so that diversity of gender, race, and
17 geographical areas is reflective of the makeup of this state.
18 Nine of the members shall each have been licensed as a real
19 estate broker or real estate salesperson for 10 years before
20 appointment. At least three of the 10 members shall be black
21 or African American. One member shall be a consumer member
22 appointed by the Governor, subject to confirmation by the
23 Senate.
24 "(2) The consumer member shall be at least 21 years
25 of age, not be employed by or affiliated with a real estate
26 licensee, not have a spouse or immediate family member who is
27 employed by or affiliated with a licensee, and not have held a
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1 real estate license in the 10 years immediately preceding
2 appointment.
3 "(3) No person convicted of a violation of any
4 federal or state real estate license law shall be eligible to
5 serve. Each member of the board shall be a resident of this
6 state for at least 10 years before appointment.
7 "(4) In the event of a vacancy on the commission,
8 the Governor shall make an appointment, with the advice and
9 consent of the Senate, in the same manner as the original
10 appointment, to fill the vacancy for the remainder of the
11 unexpired term. Each board member shall hold over after the
12 expiration of his or her term until his or her successor shall
13 be duly appointed and qualified.
14 "(b) Ad interim appointments may be made by the
15 Governor when the Legislature is not in session only for
16 vacancies occurring by reason of death or resignation of a
17 board member. Ad interim appointments shall be confirmed by
18 the Senate at the next following regular or special session of
19 the Legislature. Failure by the Senate to confirm shall result
20 in a vacancy on the board that shall be filled by appointment
21 by the Governor and confirmation by the Senate while the
22 Legislature is in session. Any vacancy not acted upon shall
23 remain a vacancy until it is filled at a subsequent session of
24 the Legislature in the manner prescribed in this section.
25 "(b)(c) Each of the original seven appointees and
26 their successors shall have been a resident and citizen of
27 this state for at least 10 years prior to his or her
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1 appointment and whose vocation for at least 10 years shall
2 have been that of a real estate broker or real estate
3 salesperson. No person convicted of a violation of any federal
4 or state real estate license law shall be eligible to serve.
5 Not more than one member from any United States Congressional
6 District shall be appointed to serve at the same time. The
7 members of the commission shall serve five-year four-year
8 terms. On and after April 7, 1988, no No member shall serve
9 for more than two consecutive terms of office, except,
10 however, each member shall hold office until his or her
11 successor is appointed by the Governor and confirmed by the
12 Senate. The period of time any member serves after the
13 expiration of his or her term of office while awaiting the
14 appointment and Senate confirmation of his or her successor
15 shall not be considered as a consecutive term of office in
16 determining the two consecutive terms of office limitation
17 herein provided. All appointments shall expire on September 30
18 of the final year of a term, or on the date a successor to the
19 member is appointed and confirmed. If a member does not serve
20 his or her full term, the Governor shall appoint, in the same
21 manner as original appointments are made, subject to
22 confirmation by the Senate, a member to serve the unexpired
23 portion of the term.
24 "(d) On September 30, 1988, the Governor shall
25 appoint one new member to the commission, subject to the
26 confirmation of the Senate, who shall be a Black member who
27 meets all of the other requirements of subsection (c), who
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1 shall serve no more than two consecutive terms of office, who
2 shall be a full voting member, and who may be appointed from
3 any congressional district in the state. Each successor Black
4 member shall be appointed from a different congressional
5 district, to be rotated equally among the remaining
6 congressional districts.
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