1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 927 By: Pugh
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6 AS INTRODUCED
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7 An Act relating to Oklahoma Real Estate License Code;
7 amending 59 O.S. 2021, Section 858-102, which relates
8 to definition; modifying definition; adding
8 definition; amending 59 O.S. 2021, Section 858-201,
9 which relates to the Oklahoma Real Estate Commission;
9 limiting license types for membership; amending 59
10 O.S. 2021, Section 858-208, which relates to powers
10 and duties of Commission; expanding definition of
11 applicable duties; authorizing Commission to issue
11 cease and desist orders, subpoenas, citations for
12 violations, and contract for debt collection;
12 amending 59 O.S. 2021, Section 858-301, which relates
13 to license requirements; including certain business
13 entities to licensure requirements; expanding
14 exclusions of actions as a real estate license
14 holder; amending 59 O.S. 2021, Section 858-302, which
15 relates to eligibility for licensure as a real estate
15 sales associate; modifying proscribe submission fee;
16 amending 59 O.S. 2021, Section 858-303, which relates
16 to eligibility for licensure as a real estate sales
17 associate or provisional sales associate; adding
17 additional provisions for licensure requirement;
18 amending 59 O.S. 2021, Section 858-303A, which
18 relates to licensure for a broker associate license;
19 adding additional provision for licensure
19 requirement; amending 59 O.S. 2021, Section 858-312,
20 which relates to investigation and licensure
20 revocation; requiring written disclosure by certain
21 person; expanding violations for revocation of
21 license; amending 59 O.S. 2021, Section 858-307.1,
22 which relates to issuance of license; removing
22 provision for prorated credit of fees for certain
23 licenses; amending 59 O.S. 2021, Section 858-307.3,
23 which relates to time limit for applying for a
24 reissued license after revocation; increasing time
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 1 period for application; amending 59 O.S. 2021,
1 Section 858-313, which relates to confidential
2 records; amending 59 O.S. 2021, Section 858-401,
2 which relates to penalties; increasing fine; amending
3 59 O.S. 2021, Section 858-602, which relates to
3 additional fees; removing provision for prorated
4 credit of fees for certain licenses; amending 59 O.S.
4 2021, Section 858-605, which relates to expenditure
5 of funds; authorizing Commission to expend certain
5 monies toward promotion of education by
6 implementation of certain provisions; and providing
6 an effective date.
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9 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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10 SECTION 1. AMENDATORY 59 O.S. 2021, Section 858-102, is
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11 amended to read as follows:
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12 Section 858-102. When used in this Code, unless the context
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13 clearly indicates otherwise, the following words and terms shall be
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14 construed as having the meanings ascribed to them in this section:
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15 1. The term “real estate” shall include any interest or estate
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16 in real property, within or without the State of Oklahoma, whether
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17 vested, contingent or future, corporeal or incorporeal, freehold or
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18 nonfreehold, and including leaseholds, options and unit ownership
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19 estates to include condominiums, time-shared ownerships and
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20 cooperatives; provided, however, that the term real estate shall not
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21 include oil, gas or other mineral interests, or oil, gas or other
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22 mineral leases; and provided further, that the provisions of this
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23 Code shall not apply to any oil, gas, or mineral interest or lease
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24 or the sale, purchase or exchange thereof;
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 1 2. The term “broker” shall include any person, partnership,
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2 association or corporation, foreign or domestic, who for a fee,
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3 commission or other valuable consideration, or who with the
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4 intention or expectation of receiving or collecting a fee,
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5 commission or other valuable consideration, lists, sells or offers
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6 to sell, buys or offers to buy, exchanges, rents or leases any real
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7 estate, or who negotiates or attempts to negotiate any such
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8 activity, or solicits listings of places for rent or lease, or
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9 solicits for prospective tenants, purchasers or sellers, or who
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10 advertises or holds himself out as engaged in such activities.
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11 “Broker” shall be limited to the license types of Broker Manager
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12 (BM), Proprietor Broker (BP) or Branch Broker (BB) as defined in the
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13 Code limited liability company, association, corporation, or
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14 business entity, foreign or domestic, who for a fee, commission, or
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15 other valuable consideration, or who with the intention or exception
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16 of receiving or collecting a fee, commission, or other valuable
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17 consideration, performs any of the following acts:
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18 a. sells, exchanges, purchases, rents, or leases real
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19 estate,
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20 b. offers to sell, exchange, purchase, rent, or lease
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21 real estate,
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22 c. negotiates or attempts to negotiate the listing, sale,
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23 exchange, purchase, rent, or lease of real estate,
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 1 d. lists or offers, attempts, or agrees to list real
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2 estate for sale, exchange, rent or lease,
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3 e. auctions or offers, attempts, or agrees to auction
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4 real estate,
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5 f. controls the acceptance or deposit of rent from a
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6 resident of a single-family residential real property
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7 unit,
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8 g. solicits listings of places for rent or lease,
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9 h. solicits for prospective tenants, purchasers, or
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10 sellers, or
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11 i. advertises or holds himself or herself out as engaged
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12 in such activities;
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13 3. The term “broker associate” shall include any person who has
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14 qualified for a license as a broker associate, and who is employed
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15 or engaged by, associated as an independent contractor with, or on
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16 behalf of and with the permission of a broker to perform any act set
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17 out in the definition of a broker;
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18 4. The term “real estate sales associate” shall include any
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19 person having a renewable license and employed or engaged by, or
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20 associated as an independent contractor with, or on behalf of, a
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21 broker to do or deal in any act, acts or transactions set out in the
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22 definition of a broker;
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23 5. “Provisional sales associate” shall include any person who
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24 has been licensed after June 30, 1993, employed or engaged by, or
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 1 associated as an independent contractor with, or on behalf of, a
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2 broker to do or deal in any act, acts or transactions set out in the
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3 definition of a broker and subject to an additional forty-five-
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4 clock-hour postlicensing educational requirement to be completed
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5 within the first twelve-month license term. However, the Oklahoma
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6 Real Estate Commission shall promulgate rules for those persons
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7 called into active military service for purposes of satisfying the
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8 postlicensing educational requirement. The license of a provisional
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9 sales associate shall be nonrenewable unless the postlicensing
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10 requirement is satisfied prior to the expiration date of the
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11 license. Further, the terms sales associate and provisional sales
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12 associate shall be synonymous in meaning except where specific
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13 exceptions are addressed in the Oklahoma Real Estate License Code;
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14 6. The term “successful completion” shall include prelicense,
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15 postlicense, and distance education courses in which an approved
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16 public or private school entity has examined the individual, to the
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17 satisfaction of the entity and standards as established by the
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18 Commission, in relation to the course material presented during the
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19 offering;
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20 7. The term “renewable license” shall refer to a broker, broker
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21 associate or sales associate who is a holder of such license or to a
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22 provisional sales associate who has completed the educational
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23 requirements within the required time period as stated in the Code;
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 1 8. The term “nonrenewable license” shall refer to a provisional
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2 sales associate who is the holder of such license and who has not
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3 completed the postlicense educational requirement within the
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4 required time period as stated in the Code;
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5 9. The term “surrendered license” shall refer to a real estate
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6 license which is surrendered, upon the request of the licensee, due
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7 to a pending investigation or disciplinary proceedings;
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8 10. The term “canceled license” shall refer to a real estate
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9 license which is canceled, upon the request of the licensee and
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10 approval of the Commission, due to a personal reason or conflict;
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11 11. The term “publicly market” shall include all advertisements
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12 and marketing conducted in a public or open manner or place;
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13 12. “Licensee” shall include any person who performs any act,
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14 acts or transactions set out in the definition of a broker and
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15 licensed under the Oklahoma Real Estate License Code;
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16 12. 13. The word “Commission” shall mean the Oklahoma Real
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17 Estate Commission;
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18 13. 14. The word “person” shall include and mean every
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19 individual, partnership, association or corporation, foreign or
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20 domestic;
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21 14. 15. Masculine words shall include the feminine and neuter,
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22 and the singular includes the plural; and
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23 15. 16. The word “associate” shall mean a broker associate,
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24 sales associate or provisional sales associate.
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 1 SECTION 2. AMENDATORY 59 O.S. 2021, Section 858-201, is
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2 amended to read as follows:
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3 Section 858-201. A. There is hereby re-created, to continue
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4 until July 1, 2024, in accordance with the provisions of the
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5 Oklahoma Sunset Law, the Oklahoma Real Estate Commission, which
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6 shall consist of seven (7) members. The Commission shall be the
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7 sole governmental entity, state, county or municipal, which shall
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8 have the authority to regulate and issue real estate licenses in the
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9 State of Oklahoma.
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10 B. All members of the Commission shall be citizens of the
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11 United States and shall have been residents of the State of Oklahoma
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12 for at least three (3) years prior to their appointment.
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13 C. Five members shall be licensed real estate brokers and shall
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14 have had at least five (5) years’ active experience as real estate
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15 brokers prior to their appointment and be engaged full time in the
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16 real estate brokerage business. One member shall be a lay person
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17 not in the real estate business, and one member shall be an active
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18 representative of a school of real estate located within the State
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19 of Oklahoma and approved by the Oklahoma Real Estate Commission.
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20 For purposes of this paragraph, “brokers” shall be limited to the
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21 license types of managing broker, proprietor broker, or branch
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22 broker.
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23 D. No more than two members shall be appointed from the same
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24 congressional district according to the latest congressional
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 1 redistricting act. However, when congressional districts are
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2 redrawn, each member appointed prior to July 1 of the year in which
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3 such modification becomes effective shall complete the current term
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4 of office and appointments made after July 1 of the year in which
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5 such modification becomes effective shall be based on the redrawn
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6 districts. No appointments may be made after July 1 of the year in
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7 which such modification becomes effective if such appointment would
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8 result in more than two members serving from the same modified
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9 district.
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10 SECTION 3. AMENDATORY 59 O.S. 2021, Section 858-208, is
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11 amended to read as follows:
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12 Section 858-208. The Oklahoma Real Estate Commission shall have
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13 the following powers and duties:
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14 1. To promulgate rules, prescribe administrative fees by rule,
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15 and make orders as it may deem necessary or expedient in the
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16 performance of its duties;
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17 2. To administer or cause to be administered examinations to
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18 persons who apply for the issuance of licenses;
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19 3. To sell to other entities or governmental bodies, not
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20 limited to the State of Oklahoma, computer testing and license
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21 applications to recover expended research and development costs;
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22 4. To issue licenses in the form the Commission may prescribe
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23 to persons who have passed examinations or who otherwise are
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24 entitled to such licenses;
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 1 5. To issue licenses to and regulate the activities of real
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2 estate brokers, provisional sales associates, sales associates,
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3 branch offices, nonresidents, associations, corporations, and
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4 partnerships;
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5 6. Upon showing good cause as provided for in The Oklahoma Real
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6 Estate License Code, to discipline licensees, instructors and real
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7 estate school entities by:
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8 a. reprimand,
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9 b. probation for a specified period of time,
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10 c. requiring education in addition to the educational
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11 requirements provided by Section 858-307.2 of this
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12 title,
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13 d. suspending real estate licenses and approvals for
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14 specified periods of time,
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15 e. revoking real estate licenses and approvals,
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16 f. imposing administrative fines pursuant to Section 858-
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17 402 of this title, or
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18 g. any combination of discipline as provided by
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19 subparagraphs a through f of this paragraph;
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20 7. Upon showing good cause, to modify any sanction imposed
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21 pursuant to the provisions of this section and to reinstate
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22 licenses;
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23 8. To conduct, for cause, disciplinary proceedings;
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 1 9. To prescribe penalties as it may deem proper to be assessed
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2 against licensees for the failure to pay the license renewal fees as
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3 provided for in this Code;
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4 10. To initiate the prosecution of any person who violates any
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5 of the provisions of this Code;
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6 11. To approve instructors and organizations offering courses
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7 of study in real estate and to further require them to meet
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8 standards to remain qualified as is necessary for the administration
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9 of this Code;
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10 12. To contract with attorneys and other professionals to carry
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11 out the functions and purposes of this Code;
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12 13. To apply for injunctions and restraining orders to enforce
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13 the provisions of applicable laws, rules, and regulations for
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14 violations of the Code or the rules of the Commission;
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15 14. To create an Oklahoma Real Estate Contract Form Committee
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16 by rule that will be required to draft and revise real estate
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17 purchase and/or lease contracts and any related addenda for
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18 voluntary use by real estate licensees;
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19 15. To enter into contracts and agreements for the paymen