Bill Summary – FastDemocracy

0591.03000
     Sixty-seventh
     Legislative Assembly                    HOUSE BILL NO. 1258
     of North Dakota
     Introduced by
       Representatives Louser, Adams, Boschee, Mock, Roers Jones, Steiner, Vetter
       Senators D. Larsen, Meyer, J. Roers
  A BILL for an Act to amend and reenact sections 43-23-02, 43-23-03, 43-23-04, 43-23-05,
  43-23-08, 43-23-08.2, 43-23-09, 43-23-10, 43-23-11.1, 43-23-12, 43-23-13.1, 43-23-14.1,
  43-23-16, 43-23-19, 43-23.1-14, 43-23.2-02, and 43-23.2-03 of the North Dakota Century Code,
  relating to real estate commission administration and real estate licensing; to repeal chapter
  43-23.4 of the North Dakota Century Code, relating to real estate broker trust accounts; and to
  provide a penalty.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. AMENDMENT. Section 43-23-02 of the North Dakota Century Code is
  amended and reenacted as follows:
     43-23-02. Commission - Term - Duties - Records.
     The governor shall appoint each member of the commission for a term of five years. Terms
 must be staggered so the term of one member expires each year. At the expiration of the term
 of any member of the commission, the governor shall appoint a successor for a term of five
 years. A commissioner may not serve more than two consecutive five-year terms. In the event
 of a vacancy on the commission for any reason the governor shall appoint a member for the
 unexpired term of that member.
     A majority of the commission, in a duly assembled meeting, may perform and exercise all of
 the duties and powers devolving on the commission. The commission may submit a biennial
 report to the governor and the secretary of state in accordance with section 54-06-04.
     The commission shall adopt a seal with North Dakota real estate commission engraved on
 the seal, by which it shall authenticate its proceedings. Copies of all records and papers in the
 office of the commission, duly certified and authenticated by the seal of such commission, must
 be received in evidence in all courts equally and with like effect as the original.
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      SECTION 2. AMENDMENT. Section 43-23-03 of the North Dakota Century Code is
  amended and reenacted as follows:
      43-23-03. Commission office - Executive director.
      The commission shall employ an executive director who shall furnish bond as required by
  the commission and who shall keep a record of all proceedings, transactions, communications,
  and official acts of the commission, beand who is custodian of all moneys received for licenses
  which must, by the executive director, be depositedshall deposit for safekeeping in depositories
  designated by the commission. The executive director must beis the custodian of all records of
  the commission and shall perform such other duties as the commission may require. The
 commission is authorized tomay fix the salary of the executive director, to employ such other
 employees as may be necessary to properly carry out the provisions of this chapter, to fix
 salaries and prescribe duties of such employees, and to make such other expenditures as are
 necessary to carry out the provisions of this chapter. The commission shall meet annually and
 upon call by the executive director upon a written request of three or more members of the
 commission. The place of meeting of the said commission must be at the office of the executive
 director. The location of the office of the executive director must be at such places within the
 state as the commission may designate. The commission shall maintain all files, records, and
 property of the commission at the office of the executive director.
     SECTION 3. AMENDMENT. Section 43-23-04 of the North Dakota Century Code is
 amended and reenacted as follows:
     43-23-04. Commission - Compensation.
     The members of the commission shallare entitled to receive fifty dollarsper diem, not to
 exceed the daily compensation rate a member of the legislative assembly is entitled to receive
 under section 54-35-10 for attendance at a legislative management committee meeting, as
 determined by the commission in the annual budget process, for each day actually engaged in
 the service of the commission and mustto be paid actual and necessary traveling expenses to
 be paid only from the fund derived from fees collected in the administration of this chapter. All
 moneys or fees collected or received by the commission must be deposited and disbursed in
 accordance with section 54-44-12.
     SECTION 4. AMENDMENT. Section 43-23-05 of the North Dakota Century Code is
 amended and reenacted as follows:
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      43-23-05. Real estate license required.
      NoA person may not act as a real estate broker or real estate salesperson, or advertise or
  assume to act as sucha real estate broker or real estate salesperson, without a license issued
  by the real estate commission. NoA person is not entitled to collect any fees, compensation, or
  commission as a real estate broker or real estate salesperson without having first complied with
  the provisions of this chapter. NoA copartnership, association, corporation, or limited liability
  company may not be granted a license, unless at least one partner, shareholder, member,
  manager, or officer of the copartnership, association, corporation, or limited liability company,
  actually engaged as a real estate broker or real estate salesperson as defined herein, holds a
 license as a real estate broker, and unless every employee who acts as a real estate
 salesperson for suchthe copartnership, association, corporation, or limited liability company
 holds a license as a real estate salesperson.
     SECTION 5. AMENDMENT. Section 43-23-08 of the North Dakota Century Code is
 amended and reenacted as follows:
     43-23-08. License standards.
     1.   Licenses and thelicense renewals thereof may be granted only to persons who bear a
          good reputation for honesty, truthfulness, and fair dealing and who are competent to
          transact the business of a real estate broker or a real estate salesperson in such
          manner as to safeguard the interest of the public, and whose real estate license has
          not been revoked in this or any other state within two years prior tobefore the date of
          application. To determine the competency of applicants, the commission shall
          prescribe and hold examinations at designated times and places.
     2.   In addition to the requirements established by subsection 1, an applicant for a broker's
          or salesperson's license must be at least eighteen years of age.
     3.   Every applicant for a license as a real estate broker:
           a.   ShallMust have been actively engaged as a licensed real estate salesperson for
                a period of at least one yeartwo years preceding the date of application, which,
                beginning July 1, 1979, is increased to two years; or
           b.   ShallMust have had experience as determined by the commission to be
                substantially equal to that which a licensed real estate salesperson would
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                ordinarily receive during a period of one year, which, beginning July 1, 1979, is
                increased to two years.
      4.   As a prerequisite for licensure, an applicant for a salesperson's license shall furnish to
           the commission evidence the applicant has successfully completed at least ninety
           hours in courses of study approved by the commission. An applicant for a broker's
           license must have successfully completed an additional sixty hours in courses of study
           approved by the commission. An applicant for a salesperson's license may take the
           licensing examination before fulfillment of the prerequisite educational requirement;
           however, the commission may not issue a salesperson's license to an applicant unless
          satisfactory evidence of completion of this prerequisite educational requirement is
          furnished to the commission. An applicant for a broker's license must have
          satisfactorily fulfilled the educational requirement before taking the broker's licensing
          examination.
     5.   If the commission finds that an applicant could not acquire employment as a licensed
          real estate salesperson because of conditions existing in the area where the
          salesperson resides, then the experience requirements established in subdivisions a
          and b of subsection 3 may be waived by the commission. The educational
          requirements of subsection 4 may not be waived by the commission, but guidelines
          may be established wherebyby which applicants who have engaged in certain
          educational courses of study which are closely related to the real estate profession
          may be deemed to have satisfied this requirement.
     6.   The commission may adopt reasonable rules and regulations pursuant to the
          provisions of chapter 28-32 relative to procedures for licensing, approval of
          coursework, and for the type of certification or proof of coursework completion that
          must be submitted.
    SECTION 6. AMENDMENT. Section 43-23-08.2 of the North Dakota Century Code is
 amended and reenacted as follows:
    43-23-08.2. License renewal - Continuing education required.
     1.   The commission may establish the conditions under which each applicant for renewal
          of a broker's or salesperson's license, in addition to the requirements of section
          43-23-08, shall submit proof of participation in approved continuing education. In
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           establishing the conditions for continuing education, the commission may determine
           the required number of hours, the frequency and conditions of reporting requirements,
           and all other terms and conditions of continuing education compliance. The
           commission shall set standards for the approval of lectures, seminars, courses of
           instruction, and correspondenceeducation courses that qualify for satisfaction of this
           requirement, and shall maintain a current list of lectures, seminars, courses of
           instruction, and correspondenceeducation courses so approved. Lectures, seminars,
           courses of instruction, and correspondenceEducation courses may not require passing
           of a test to qualify for satisfaction of this requirement. Licensees must have the option
          of attending an approved course of instruction in person or taking an approved
          correspondence course. Attendance at a course or the completion of a
          correspondencean education course must be documented in accordance with
          procedures established by the commission. The commission may adopt rules
          concerning implementation of this section pursuant to chapter 28-32.
     2.   A license may not be renewed by the commission unless the proper certification
          showing fulfillment of the continuing education requirements of this section and the
          appropriate licensing fees are submitted to the commission in accordance with section
          43-23-13.1.
     3.   The commission may exempt licensees from the continuing education requirements of
          this section for reasons relating to the licensee's health, military service, or for other
          good cause. Licensees who have held a real estate license for fifteen continuous
          years on January 1, 1984, are exempt from the requirements of this section.
    SECTION 7. AMENDMENT. Section 43-23-09 of the North Dakota Century Code is
 amended and reenacted as follows:
    43-23-09. License application.
    Every application for a real estate broker's license or a real estate salesperson's license
 must be in writing upon blanks prepared by the commission and contain such data and
 information as the commission may require.
    SECTION 8. AMENDMENT. Section 43-23-10 of the North Dakota Century Code is
 amended and reenacted as follows:
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      43-23-10. Nonresident brokers - Reciprocity - Consent to service.
      A nonresident broker regularly engaged in the real estate business as a vocation and who
  maintains a definite place of business and is licensed in some otheranother state, which offers
  the same privileges to the licensed brokers of this state, may not be required to maintain a
  place of business within this state. The commission shall recognize the license issued to a real
  estate broker by another state as satisfactorily qualifying the nonresident broker for license as a
  broker; provided, that the nonresident broker has qualified for license in the broker's own state
  and also that the other state permits licenses to be issued to licensed brokers in this state.
  Every nonresident applicant shall file an irrevocable consent that suits and actions may be
 commenced against suchthe applicant in the proper court of any county of the state in which a
 claim for relief may arise, in which the plaintiff may reside, by the service of any process or
 pleading authorized by the laws of this state, on any member of the commission, or the
 executive director, saidthe consent stipulating and agreeing that such service of suchthe
 process or pleading shall beis taken and held in all courts to be as valid and binding as if due
 service had been made upon saidthe applicant in this state. The consent must be duly
 acknowledged. Any service of process or pleading must be by duplicate copies, one of which
 must be filed in the office of the commission and the other immediately forwarded by registered
 mail to the last-known main office of the applicant against whom saidthe process or pleading is
 directed, and no default in any suchthe proceedings or action may be taken except upon
 affidavit or certificate of the commission or the executive director, that a copy of saidthe process
 or pleading was mailed to the defendant as herein required under this section, and no judgment
 by default may not be taken in any such action or proceeding until after thirty days from the date
 of mailing of suchthe process or pleading to the nonresident defendant.
     SECTION 9. AMENDMENT. Section 43-23-11.1 of the North Dakota Century Code is
 amended and reenacted as follows:
     43-23-11.1. Investigations, grounds for refusal, suspension or revocation of license -
 Hearing - Appeal.
     1.   The commission upon its own motion may investigate, and upon the verified complaint
          in writing of any person, shall, investigate the activities of any licensee or any person
          whothat assumes to act in such capacity within the state, and has the power to
          suspend or revoke a license, impose a monetary fine and actual costs incurred by the
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          commission in the investigation and prosecution of the complaint, require course
          attendance, or issue a letter of reprimand, or any combination thereof, whenif the
          licensee, in performing or attempting to perform any of the acts included within the
          scope of this chapter, has performed one or more of the following:
           a.   Making a material false statement in the licensee's application for a license or in
                any information furnished to the commission.
           b.   Making any substantial and willful misrepresentation with reference to a real
                estate transaction which is injurious to any party.
           c.   Making any false promise of a character such as to influence, persuade, or
               induce a party to a real estate transaction to that person's injury or damage.
          d.   Acting for more than one party in a transaction without the knowledge and
               consent of all parties to that transaction for whom the licensee acts.
          e.   FailureFailing to account for or to remit, within a reasonable time, any moneys
               coming into the licensee's possession belonging to others; commingling funds of
               others with the licensee's own, failing to keep such funds of others in an escrow
               or trust account with a bank or other recognized depository in this state, or
               keeping records relative to the deposit, which must contain such information as
               may be prescribed by the rules and regulations of the commission relative
               thereto.
          f.   BeenBeing convicted or pleadedpleading guilty or nolo contendere before any
               court of any felony, or of a misdemeanor involving theft, forgery, embezzlement,
               obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to
               defraud, or other similar offense. A certified copy of the record of conviction is
               conclusive evidence of conviction in such cases.
          g.   Claiming or taking of any secret or undisclosed amount of c