HF 2856

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 03/08/2010 10:42am

A bill for an act
relating to commerce; making changes in required continuing education of real
estate brokers and salespersons; amending Minnesota Statutes 2008, sections
82.29, subdivision 4; 82.33, subdivision 4; Minnesota Statutes 2009 Supplement,
section 82.32.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 82.29, subdivision 4, is amended to read:

Subd. 4.

Broker's examination.

(a) The examination for a real estate broker's
license shall be more exacting than that for a real estate salesperson, and shall require a
higher degree of knowledge of the fundamentals of real estate practice and law.

(b) Every application for a broker's examination shall be accompanied by proof
that the applicant has had a minimum of deleted text begin two deleted text end new text begin three new text end years of actual experience within the
previous five-year period prior to application as a licensed real estate salesperson in this or
in another state having comparable requirements or is, in the opinion of the commissioner,
otherwise or similarly qualified by reason of education or practical experience. The
applicant shall have completed educational requirements in accordance with subdivision
8. An applicant for a limited broker's license pursuant to section 82.34, subdivision 13,
shall not be required to have a minimum of deleted text begin two deleted text end new text begin three new text end years of actual experience as a real
estate person in order to obtain a limited broker's license to act as principal only.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2011, and
applies to applications to take the broker's examination received by the commissioner
on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:

82.32 LICENSING: CONTINUING EDUCATION AND INSTRUCTION.

(a) All real estate salespersons and all real estate brokers shall be required to
successfully complete 30 hours of real estate continuing education, either as a student or
a lecturer, in courses of study approved by the commissioner, during the initial license
period and during each succeeding 24-month license period. At least 15 of the 30 credit
hours must be completed during the first 12 months of the 24-month licensing period.
Licensees may not claim credit for continuing education not actually completed as of the
date their report of continuing education compliance is filed.

(b) The commissioner may adopt rules defining the standards for course and
instructor approval, and may adopt rules for the proper administration of prelicense
instruction as required under section 82.29, subdivision 8, and continuing education
as required under this section and sections 82.29; 82.31, subdivisions 5 and 6; 82.33,
subdivisions 1 and 4 to 6; and 82.44. The commissioner may not approve a course which
can be completed by the student at home or outside the classroom without the supervision
of an instructor except accredited courses using new delivery technology, including
interactive technology, and the Internet. The commissioner may approve courses of study
in the real estate field offered in educational institutions of higher learning in this state or
courses of study in the real estate field developed by and offered under the auspices of the
National Association of Realtors, its affiliates, or private real estate schools. Courses in
motivation, salesmanship, psychology, or time management shall not be approved by the
commissioner for continuing education credit. The commissioner may approve courses in
any other subjects, including, but not limited to, communication, marketing, negotiation,
and technology for continuing education credit.

(c) As part of the continuing education requirements of this section and sections
82.29; 82.31, subdivisions 5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the
commissioner shall require that all real estate brokers and salespersons receive:

(1) at least one hour of training during each license period in courses in laws or
regulations on agency representation and disclosure; and

(2) at least one hour of training during each license period in courses in state and
federal fair housing laws, regulations, and rules, other antidiscrimination laws, or courses
designed to help licensees to meet the housing needs of immigrant and other underserved
populations.

Clauses (1) and (2) do not apply to real estate salespersons and real estate brokers
engaged solely in the commercial real estate business who file with the commissioner
a verification of this status along with the continuing education report required under
paragraph (a).

(d) The commissioner is authorized to establish a procedure for renewal of course
accreditation.

(e) Approved continuing education courses may be sponsored or offered by a broker
of a real estate company and may be held on the premises of a company licensed under
this chapter. All continuing education course offerings must be open to any interested
individuals. Access may be restricted by the education provider based on class size
only. Courses must not be approved if attendance is restricted to any particular group of
people. A broker must comply with all continuing education rules prescribed by the
commissioner. The commissioner shall not approve any prelicense instruction courses
offered by, sponsored by, or affiliated with any person or company licensed to engage in
the real estate business.

(f) Credit may not be earned if the licensee has previously obtained credit for the
same course as either a student or instructor during the same licensing period.

(g) The real estate education course completion certificate must be in the form set
forth by the commissioner. Students are responsible for maintaining copies of course
completion certificates.

(h) An approved prelicense 30-hour broker course may be used for continuing
education credit by a real estate salesperson or broker if the course is completed during
the appropriate licensing period.

new text begin (i) As part of the continuing education requirements of this section and section
82.44, the commissioner shall require that all real estate brokers and salespersons receive
either 3.75 or 7.5 hours of module training every license year within the 30 hours of
continuing education required during each two-year license period. For each license year,
the commissioner shall determine what modules are required. The modules must cover
topics in real estate that are significant and are of current interest in the real estate market
and profession. The commissioner shall determine the specific topics to be covered by
modules for each license year and the number of credit hours allocated to each module. In
determining the topics and number of credit hours, the commissioner shall consult with
a statewide real estate trade association and a statewide private continuing education
provider. When the commissioner has created a module, the commissioner must publicize
to licensees and to real estate continuing education providers an outline of the topics
covered by the module, and the credits associated with it, no later than April 1 of each
year. The commissioner may delegate the module and test development, subject to the
commissioner's approval, to a statewide real estate trade association. Credit for each
module must be contingent upon the licensee's successful completion of it, established
by testing of the licensee's knowledge of the content covered by the module, based
upon written test questions approved by the commissioner as described in paragraph
(k). Modules determined under this paragraph may be offered by any person permitted
to offer real estate continuing education in this state. Notwithstanding paragraph (c), the
commissioner has discretion to determine that the requirements of the module satisfy, in
whole or in part, the requirements of paragraph (c) for a licensing period in which the
module will be offered.
new text end

new text begin (j) The 30 hours of continuing education per license period for real estate brokers
must include a module, designed under the procedure provided in paragraph (i), of at least
one hour each license year specifically designed to address issues relevant to brokers.
new text end

new text begin (k) The written test for successful completion of a module offered by a continuing
education provider must be comprised of questions selected by that provider from a pool of
test questions designed and approved by the commissioner. The test must be a written test,
in paper or electronic form, taken by the licensee at the conclusion of the module as a part
of the credit hours devoted to the module, but the test must not be allocated credit of more
than one-sixth of the time allocated to the module. The provider must prepare, administer,
score, and pay any costs related to the tests. The commissioner shall determine the number
of questions that must be included in a test and the percentage of questions that must be
answered correctly. The provider may contract with a third party for scoring of the test. A
licensee must be allowed to remain as long as reasonably necessary to complete the test.
new text end

new text begin (l) Paragraphs (i), (j), and (k) do not apply to commercial salespersons and
commercial brokers.
new text end

new text begin (m) Determinations made by the commissioner under paragraphs (i), (j), and (k)
are not rules for purposes of chapter 14.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective January 1, 2011,
and applies to license periods that begin or continue after June 30, 2011, including license
periods that end June 30, 2012.
new text end

Sec. 3.

Minnesota Statutes 2008, section 82.33, subdivision 4, is amended to read:

Subd. 4.

Renewal; examination.

Except as provided in section 82.29, subdivision
7, new text begin and in section 82.32, paragraphs (i), (j), and (k), new text end no examination shall be required for the
renewal of any license, provided, however, any licensee having been licensed as a broker
or salesperson in the state of Minnesota and who shall fail to renew the license for a period
of two years shall be required by the commissioner to again take an examination.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective January 1, 2011,
and applies to license periods that begin or continue after June 30, 2011, including license
periods that end June 30, 2012.
new text end