Arkansas 2025 Regular Session

Arkansas House Bill HB1558 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 392 of the Regular Session
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4		-
5		-	State of Arkansas As Engrossed: S3/5/25 1
	2	+	LGL025 02/21/2025 11:38:39 AM LGL025
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 HOUSE BILL 1558 3
8	6		4
9	7		By: Representatives McGrew, R. Scott Richardson, Bentley, R. Burkes, Duffield, Furman, Long, 5
10	8		McClure, Torres 6
11	9		By: Senator Caldwell 7
12	10		8
13	11		For An Act To Be Entitled 9
14	12		AN ACT TO AMEND THE LAW CONCERNING THE ARKANSAS REAL 10
15	13		ESTATE COMMISSION; TO CREATE A PROPERTY MANAGEMENT 11
16	14		BROKER AND PROPERTY MANAGEMENT ASSOCIATE LICENSE; TO 12
17	15		AMEND THE REAL ESTATE LICENSE LAW; AND FOR OTHER 13
18	16		PURPOSES. 14
19	17		15
20	18		16
21	19		Subtitle 17
22	20		TO AMEND THE LAW CONCERNING THE ARKANSAS 18
23	21		REAL ESTATE COMMISSION; TO CREATE A 19
24	22		PROPERTY MANAGEMENT BROKER AND PROPERTY 20
25	23		MANAGEMENT ASSOCIATE LICENSE; AND TO 21
26	24		AMEND THE REAL ESTATE LICENSE LAW. 22
27	25		23
28	26		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
29	27		25
30	28		SECTION 1. DO NOT CODIFY. Legislative findings. 26
31	29		The General Assembly finds that: 27
32	30		(1) The Arkansas Real Estate Commission currently requires an 28
33	31		individual to have a real estate broker license issued through the commission 29
34	32		to rent or lease real property on behalf of an owner; 30
35	33		(2) The knowledge and skills necessary for a property management 31
36	34		broker to protect citizens and the business community can be specialized and 32
37	35		does not require the same skills and knowledge as those for a real estate 33
38	36		broker or salesperson; 34
39	37		(3) A property management broker license could create a higher quality 35
40		-	of property management broker in Arkansas with specialized knowledge; 36 ~~As Engrossed: S3/5/25~~ HB1558
	38	+	of property management broker in Arkansas with specialized knowledge; 36 HB1558
41	39
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45	41		(4) The creation of a property management broker license would reduce 1
46	42		the education burden on individuals who might not otherwise pursue other real 2
47	43		estate broker license occupations and potentially create new jobs; and 3
48	44		(5) The commission is the appropriate entity to license an individual 4
49	45		as a property management broker or as a property management associate. 5
50	46		6
51	47		SECTION 2. Arkansas Code § 17 -42-103 is amended to read as follows: 7
52	48		17-42-103. Definitions. 8
53	49		As used in this chapter: 9
54	50		(1)(A) “Associate broker” means an individual who has a broker's 10
55	51		license and who is employed by a principal broker, or is associated with a 11
56	52		principal broker as an independent contractor, and who participates in any 12
57	53		activity described in subdivision (10) or subdivision (12) of this section 13
58	54		while under the supervision of a principal broker or executive broker. 14
59	55		(B) An associate broker shall have no supervisory 15
60	56		authority over any other licensee; 16
61	57		(2) “Branch office” means a principal broker's office or 17
62	58		property management broker's office other than his or her principal place of 18
63	59		business; 19
64	60		(3) “Broker's price opinion” means an estimate prepared by a 20
65	61		licensee salesperson or real estate broker that details the probable selling 21
66	62		price of real estate and provides a varying level of detail about the real 22
67	63		estate's condition, market, and neighborhood, and information about sales of 23
68	64		comparable real estate; 24
69	65		(4) “Classroom hour” means a period of at least fifty (50) 25
70	66		minutes, but not more than sixty (60) minutes , of actual classroom 26
71	67		instruction with the an instructor present; 27
72	68		(5) “Continuing education” means postlicensure education derived 28
73	69		from participation in courses in real estate -related subjects that have been 29
74	70		approved by the Arkansas Real Estate Commission or that are not required to 30
75	71		be approved by the commission; 31
76	72		(6) “Continuing education unit” means a period of ten (10) 32
77	73		contact hours of actual classroom instruction with the an instructor present; 33
78	74		(7)(A) “Executive broker” means an individual who: 34
79	75		(i) Has a real estate broker's license; 35
80		-	(ii) Is employed by a principal broker or associated 36 ~~As Engrossed: S3/5/25~~ HB1558
	76	+	(ii) Is employed by a principal broker or associated 36 HB1558
81	77
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85	79		with a principal broker as an independent contractor; and 1
86	80		(iii) Participates in any activity described in 2
87	81		subdivision (10) or subdivision (12) of this section while under the 3
88	82		supervision of a principal broker. 4
89	83		(B) An executive broker may supervise associate brokers 5
90	84		and salespersons; 6
91	85		(8)(A) “Licensee” means an individual who holds any type of 7
92	86		license issued by the commission. 8
93	87		(B) “Licensee” includes a principal broker, an executive 9
94	88		broker, an associate broker, and a salesperson, a property management 10
95	89		associate, and a property management broker . 11
96	90		(C) This chapter does not preclude a licensee from: 12
97	91		(i) Doing business as a: 13
98	92		(a) Professional corporation under § 4 -29-101 14
99	93		et seq.; or 15
100	94		(b) Professional limited liability company 16
101	95		under § 4-38-1201 et seq.; or 17
102	96		(ii) Receiving payment from a real estate firm or 18
103	97		principal broker of an earned commission to the licensee's legal business 19
104	98		entity if the licensee earned the commission on behalf of the real estate 20
105	99		firm or principal broker; 21
106	100		(9) “Participate in a real estate auction” means to do any act 22
107	101		or conduct for compensation or the expectation of compensation on behalf of a 23
108	102		seller at auction and designed, intended, or expected to affect the bidding 24
109	103		or results of a real estate auction, including without limitation serving as 25
110	104		an auctioneer or ringman or encouraging, soliciting, or receiving bids; 26
111	105		(10)(A) “Principal broker” means an individual expecting to act 27
112	106		or acting for another for a fee, commission, or other consideration who: 28
113	107		(A)(i) Sells, exchanges, purchases, rents, or leases 29
114	108		real estate; 30
115	109		(B)(ii) Offers to sell, exchange, purchase, rent, or 31
116	110		lease real estate; 32
117	111		(C)(iii) Negotiates, offers, attempts, or agrees to 33
118	112		negotiate the sale, exchange, purchase, rent, or lease of real estate; 34
119	113		(D)(iv) Lists, offers, attempts, or agrees to list 35
120		-	real estate for sale, lease, or exchange; 36 ~~As Engrossed: S3/5/25~~ HB1558
	114	+	real estate for sale, lease, or exchange; 36 HB1558
121	115
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125	117		(E)(v) Auctions, offers, attempts, or agrees to 1
126	118		auction real estate, or participates in a real estate auction; 2
127	119		(F)(vi) Buys, sells, or assigns or offers to buy, 3
128	120		sell, or assign or otherwise deals in options on real estate or improvements 4
129	121		to real estate; 5
130	122		(G)(vii) Collects, offers, attempts, or agrees to 6
131	123		collect rent for the use of real estate; 7
132	124		(H)(viii) Advertises or holds himself or herself out 8
133	125		as being engaged in the business of buying, selling, exchanging, renting, or 9
134	126		leasing real estate; 10
135	127		(I)(ix) Assists or directs in the procuring of 11
136	128		prospects calculated to result in the sale, exchange, lease, or rent of real 12
137	129		estate; 13
138	130		(J)(x) Assists or directs in the negotiation of any 14
139	131		transaction calculated or intended to result in the sale, exchange, lease, or 15
140	132		rent of real estate; 16
141	133		(K)(xi) Engages in the business of charging an 17
142	134		advance fee in connection with any contract whereby he or she undertakes to 18
143	135		promote the sale or lease of real estate either through its listing in a 19
144	136		publication issued for such a purpose or for referral of information 20
145	137		concerning the real estate to brokers, or both; or 21
146	138		(L)(xii) Performs any of the acts described in this 22
147	139		subdivision (10) as an employee of or on behalf of the owner of, or any 23
148	140		person who has an interest in, real estate ;. 24
149	141		(B) A principal broker may perform any act listed in 25
150	142		subdivision (12) of this section; 26
151	143		(11)(A) “Property management associate” means an individual who 27
152	144		has a property management associate license and who is employed by a property 28
153	145		management broker, or is associated with a property management broker as an 29
154	146		independent contractor, and who participates in an activity described in 30
155	147		subdivision (12) of this section while under the supervision of a property 31
156	148		management broker. 32
157	149		(B) A property management associate shall have no 33
158	150		supervisory authority over another licensee; 34
159	151		(12) "Property management broker" means an individual licensed 35
160		-	under this chapter who for a salary, commission, or compensation of any kind 36 ~~As Engrossed: S3/5/25~~ HB1558
	152	+	under this chapter who for a salary, commission, or compensation of any kind 36 HB1558
161	153
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165	155		or with the intent or expectation of receiving valuable consideration engages 1
166	156		in the business of leasing, renting, or subleasing real estate located in 2
167	157		this state on behalf of an owner, lessor, or potential lessee and who: 3
168	158		(A) Accepts employment by or on behalf of the owner, 4
169	159		lessor, or potential lessee of real estate to promote or conduct the leasing 5
170	160		or subleasing of the real estate; 6
171	161		(B) Negotiates or attempts to negotiate the lease of real 7
172	162		estate located in this state or of the improvements on real estate located in 8
173	163		this state; 9
174	164		(C) Engages in the business of promoting the lease or 10
175	165		rental of real estate located in this state; 11
176	166		(D) Assists in completing real estate lease contracts or 12
177	167		property management agreements; 13
178	168		(E) Procures tenants for owners of real estate located in 14
179	169		this state; 15
180	170		(F) Aids or offers to aid for a fee a person in locating 16
181	171		or obtaining real estate for lease in this state; 17
182	172		(G) Makes the advertising of real property for lease 18
183	173		available by public display to potential tenants; 19
184	174		(H) Shows rental or leased properties to potential 20
185	175		tenants; 21
186	176		(I) In conjunction with property management 22
187	177		responsibilities, acts as a liaison between the owners of real estate and a 23
188	178		tenant or potential tenant; 24
189	179		(J) In conjunction with property management 25
190	180		responsibilities, generally oversees the inspection, maintenance, and upkeep 26
191	181		of leased real estate belonging to others; 27
192	182		(K) In conjunction with property management 28
193	183		responsibilities, collects rents or attempts to collect rents for real estate 29
194	184		located in this state; 30
195	185		(L) Pays a fee, commission, or other compensation to a 31
196	186		licensed broker, salesperson, or property manager for referral of the name of 32
197	187		a prospective lessor or lessee of real property; 33
198	188		(M) Receives a fee, commission, or other compensation from 34
199	189		a licensed real estate broker, salesperson, or property management broker for 35
200		-	referring the name of a prospective lessor or lessee of real property; or 36 ~~As Engrossed: S3/5/25~~ HB1558
	190	+	referring the name of a prospective lessor or lessee of real property; or 36 HB1558
201	191
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205	193		(N) Advertises or represents to the public that the 1
206	194		individual is engaged in any of the activities referred to in this 2
207	195		subdivision (12); 3
208	196		(11)(A)(13)(A) “Real estate” means an interest in real property. 4
209	197		(B) “Real estate” includes without limitation a leasehold, 5
210	198		time-share interval, or an interest in real property that is purchased or 6
211	199		sold in connection with the purchase or sale of all or part of the assets, 7
212	200		stock, or other ownership interest of a business or other organization; 8
213	201		(14) “Real estate broker” means a principal broker, an executive 9
214	202		broker, or an associate broker; 10
215	203		(12)(15) “Salesperson” means an individual who: 11
216	204		(A) Has a salesperson's license; 12
217	205		(B) Is employed by a principal broker or is associated 13
218	206		with a principal broker as an independent contractor; and 14
219	207		(C) Participates in any activity described in subdivision 15
220	208		(10) or subdivision (12) of this section while under the supervision of a 16
221	209		principal broker or executive broker; and 17
222	210		(13)(16) “Unlicensed real estate activity” means offering or 18
223	211		engaging in any practice, act, or operation set forth in subdivision (10) or 19
224	212		subdivision (12) of this section without a valid active Arkansas license 20
225	213		issued by the commission. 21
226	214		22
227	215		SECTION 3. Arkansas Code § 17 -42-104(a)(6), concerning exemptions to 23
228	216		Real Estate License Law, is amended to read as follows: 24
229	217		(6) A person other than a property management associate employed 25
230	218		only at a salaried or hourly rate to engage in the leasing of real property 26
231	219		estate for or on behalf of a licensed principal broker, the real estate firm 27
232	220		of a licensed principal broker, a licensed property management broker, or an 28
233	221		owner of real estate, if the person: 29
234	222		(A) Does not otherwise engage in or offer to perform any 30
235	223		practice, act, or operation set forth in § 17-42-103(10) or § 17-42-103(12) 31
236	224		other than receiving a security deposit or payment as permitted by 32
237	225		subdivision (a)(6)(B)(iii) of this section; and 33
238	226		(B) Performs only one (1) or more of the following 34
239	227		functions: 35
240		-	(i) Delivering a lease application, lease, or an 36 ~~As Engrossed: S3/5/25~~ HB1558
	228	+	(i) Delivering a lease application, lease, or an 36 HB1558
241	229
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245	231		amendment to a lease application or lease to any person; 1
246	232		(ii) Receiving a lease application, lease, or an 2
247	233		amendment to a lease application for delivery to the principal broker, real 3
248	234		estate firm, property management broker, or owner; 4
249	235		(iii) Receiving a security deposit, rental payment, 5
250	236		or any related payment for delivery to and made payable to the principal 6
251	237		broker, real estate firm, property management broker, or owner; 7
252	238		(iv) Acting under the direct written instructions of 8
253	239		the principal broker, real estate firm, property management broker, or owner: 9
254	240		(a) Showing a rental unit to any person; or 10
255	241		(b) Assisting in the execution of a preprinted 11
256	242		lease or rental agreement containing terms established by the principal 12
257	243		broker, real estate firm, property management broker, or owner; or 13
258	244		(v) Conveying information prepared by the principal 14
259	245		broker, real estate firm, property management broker, or owner about a lease 15
260	246		application, lease, the status of a security deposit, or the payment of rent 16
261	247		to or from any person; 17
262	248		18
263	249		SECTION 4. Arkansas Code § 17 -42-107(a), concerning the capacity to 19
264	250		sue and be sued under the Real Estate License Law, is amended to read as 20
265	251		follows: 21
266	252		(a) An action or suit shall not be instituted, nor recovery be had, in 22
267	253		any court of this state by any person or other legal entity for compensation 23
268	254		for performance of any acts described in § 17 -42-103(10) or § 17-42-103(12) 24
269	255		unless at the time of offering to perform and performing any such act or 25
270	256		procuring any promise to contract for the payment of compensation for any 26
271	257		such contemplated act: 27
272	258		(1) The person holds an active license under this chapter as a 28
273	259		principal broker; or 29
274	260		(2) The person or other legal entity was the owner of the real 30
275	261		estate firm that contracted for or otherwise performed the acts for the 31
276	262		compensation that is the subject of the action or suit through either a 32
277	263		principal broker or a person approved by the Arkansas Real Estate Commission 33
278	264		under § 17-42-301(f) while licensed or approved by the commission at the time 34
279	265		of the acts; 35
280		-	(3) The person holds an active license under this chapter as a 36 ~~As Engrossed: S3/5/25~~ HB1558
	266	+	(3) The person holds an active license under this chapter as a 36 HB1558
281	267
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285	269		property management broker; or 1
286	270		(4) The person or other legal entity was the owner of the 2
287	271		property management firm that contracted for or otherwise performed the acts 3
288	272		for the compensation that is the subject of the action or suit through either 4
289	273		a property management broker or a person approved by the commission under § 5
290	274		17-42-301(h) while licensed or approved by the commission at the time of the 6
291	275		acts. 7
292	276		8
293	277		SECTION 5. Arkansas Code § 17 -42-109(b), concerning civil penalties 9
294	278		for engaging in unlicensed real estate activity, is amended to read as 10
295	279		follows: 11
296	280		(b) The fact that a person offers to engage in or offers to perform 12
297	281		any practice, act, or operation set forth in § 17 -42-103(10) or § 17-42-13
298	282		103(12) without a the appropriate license is prima facie evidence that the 14
299	283		person is engaged in unlicensed real estate activity. 15
300	284		16
301	285		SECTION 6. Arkansas Code § 17 -42-110(a), concerning the authority to 17
302	286		issue broker's price opinions, is amended to read as follows: 18
303	287		(a) A licensee real estate broker or salesperson may prepare, provide, 19
304	288		and collect a fee for issuing a broker's price opinion for: 20
305	289		(1) An existing or potential seller for the purposes of listing 21
306	290		and selling real estate; 22
307	291		(2) An existing or potential buyer of real estate; 23
308	292		(3) A third party making decisions or performing due diligence 24
309	293		related to the potential listing, offering, sale, exchange, option, lease, or 25
310	294		acquisition price of real estate; or 26
311	295		(4)(A) An existing or potential lienholder. 27
312	296		(B) However, a broker's price opinion prepared for an 28
313	297		existing or potential lienholder in conjunction with the purchase of a 29
314	298		buyer's principal residence shall not be used as the primary basis to 30
315	299		determine the value of the buyer's principal residence for the purpose of a 31
316	300		loan origination of a residential mortgage loan secured by the buyer's 32
317	301		principal residence. 33
318	302		34
319	303		SECTION 7. Arkansas Code Title 17, Chapter 42, Subchapter 1, is 35
320		-	amended to add an additional section to read as follows: 36 ~~As Engrossed: S3/5/25~~ HB1558
	304	+	amended to add an additional section to read as follows: 36 HB1558
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325	307		17-42-111. Rules. 1
326	308		The Arkansas Real Estate Commission shall promulgate rules to implement 2
327	309		this act. 3
328	310		4
329	311		SECTION 8. Arkansas Code § 17 -42-203(e), concerning the powers and 5
330	312		duties of the Arkansas Real Estate Commission, is amended to add an 6
331	313		additional subdivision to read as follows: 7
332	314		(3) Shall post prominently on the commission's website a link 8
333	315		entitled “Property Management Licensee Information” that leads directly to 9
334	316		information that is helpful to existing and prospective property management 10
335	317		brokers and property management associates, including without limitation: 11
336	318		(A) Application and renewal requirements, procedures, 12
337	319		forms, deadlines, and related information; 13
338	320		(B) Commission-sponsored educational courses and materials 14
339	321		and other educational courses and materials; and 15
340	322		(C) Links to websites containing industry standards and 16
341	323		best practices. 17
342	324		18
343	325		SECTION 9. Arkansas Code § 17 -42-301(a) and (b), concerning licenses 19
344	326		required by the Arkansas Real Estate Commission and violations of the Real 20
345	327		Estate License Law, are amended to read as follows: 21
346	328		(a) No A person shall not practice or represent himself or herself as 22
347	329		a real estate broker, property management associate, property management 23
348	330		broker, or salesperson without first applying for and receiving a the 24
349	331		appropriate license to practice under this chapter. 25
350	332		(b) Any person who directly or indirectly for another with the 26
351	333		intention, or on the promise of receiving any valuable consideration, offers, 27
352	334		attempts, or agrees to perform any single act described in § 17-42-103(10) or 28
353	335		§ 17-42-103(12), whether as part of a transaction or as an entire 29
354	336		transaction, shall be deemed a broker, property management associate, 30
355	337		property management broker, or salesperson within the meaning of this 31
356	338		chapter. 32
357	339		33
358	340		SECTION 10. Arkansas Code § 17 -42-301(d), concerning license required 34
359	341		by the Arkansas Real Estate Commission and violations of the Real Estate 35
360		-	License Law, is amended to read as follows: 36 ~~As Engrossed: S3/5/25~~ HB1558
	342	+	License Law, is amended to read as follows: 36 HB1558
361	343
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365	345		(d) It shall be unlawful for any person, directly or indirectly, to 1
366	346		act as a real estate broker, property management associate, property 2
367	347		management broker, or salesperson without first obtaining a the appropriate 3
368	348		license and otherwise complying with the provisions of this chapter. 4
369	349		5
370	350		SECTION 11. Arkansas Code § 17 -42-301(e), concerning licenses required 6
371	351		by the Arkansas Real Estate Commission and violations of the Real Estate 7
372	352		License Law, is amended to read as follows: 8
373	353		(e)(1) Notwithstanding the provisions of this section, a person or 9
374	354		other legal entity not licensed by the Arkansas Real Estate Commission may 10
375	355		own a real estate firm, provided the employees or agents employed by or 11
376	356		associated with the firm who perform real estate activities identified under 12
377	357		§ 17-42-103(10) or § 17-42-103(12) hold an active license under this chapter. 13
378	358		(2) The firm may enter into contracts or otherwise perform 14
379	359		activities identified under § 17 -42-103(10) or § 17-42-103(12) only through a 15
380	360		principal broker and a licensee employed by or associated with the principal 16
381	361		broker that holds an active license issued by the commission at the time of 17
382	362		performing the contract or activities. 18
383	363		19
384	364		SECTION 12. Arkansas Code § 17 -42-301, concerning licenses required by 20
385	365		the Arkansas Real Estate Commission and violations of the Real Estate License 21
386	366		Law, is amended to add additional subsections to read as follows: 22
387	367		(g)(1) Notwithstanding the provisions of this section, a person or 23
388	368		other legal entity not licensed by the commission may own a property 24
389	369		management firm, provided the employees or agents employed by or associated 25
390	370		with the firm who perform property management activities identified under § 26
391	371		17-42-103(12) hold an active license under this chapter. 27
392	372		(2) A firm under subdivision (g)(1) of this section may enter 28
393	373		into contracts or otherwise perform activities identified under § 17-42-29
394	374		103(12) only through a property management broker or a licensee employed by 30
395	375		or associated with the property management broker who holds an active license 31
396	376		issued by the commission at the time of performing the contract or 32
397	377		activities. 33
398	378		(h) The commission may provide for the continuing temporary operation 34
399	379		of a property management firm having all rights under § 17-42-107(a) upon the 35
400		-	death, resignation, termination, or incapacity of the property management 36 ~~As Engrossed: S3/5/25~~ HB1558
	380	+	death, resignation, termination, or incapacity of the property management 36 HB1558
401	381
402		-	11 03-05-2025 14:46:18 LGL025
403		-
404		-
	382	+	11 02/21/2025 11:38:39 AM LGL025
405	383		broker or upon the closing of a property management firm, under the direction 1
406	384		of a person approved by the commission, subject to time limitations and other 2
407	385		conditions imposed by the commission. 3
408	386		4
409	387		SECTION 13. Arkansas Code § 17 -42-303 is amended to read as follows: 5
410	388		17-42-303. Education and experience requirements. 6
411	389		(a) The Arkansas Real Estate Commission shall establish education 7
412	390		requirements for licensure, including the standards and procedures for 8
413	391		approval of education programs, subject to the following conditions: 9
414	392		(1)(A) The most education hours required of an applicant for a 10
415	393		real estate broker's license shall not exceed one hundred twenty (120) hours 11
416	394		within the thirty-six (36) months immediately preceding the date of 12
417	395		application. and shall include 13
418	396		(B) Effective on May 1, 2014, an applicant for a broker's 14
419	397		license shall complete at least forty-five (45) of the required education 15
420	398		hours in a course developed by the commission; and 16
421	399		(2) The maximum number of education hours required of an 17
422	400		applicant for a salesperson's license shall not exceed ninety (90) hours, at 18
423	401		least thirty (30) hours of which shall be in the basic principles of real 19
424	402		estate.; 20
425	403		(3) The education hours required of an applicant for a property 21
426	404		management broker’s license shall not exceed sixty (60) hours and shall 22
427	405		include property management principles and practices, including without 23
428	406		limitation: 24
429	407		(A) Thirty (30) hours consisting of the following topics: 25
430	408		(i) Landlord-tenant law; 26
431	409		(ii) Federal and state fair housing laws; 27
432	410		(iii) The Americans with Disabilities Act of 1990, 28
433	411		42 U.S.C. § 12101 et seq; 29
434	412		(iv) State licensing law and rules; 30
435	413		(v) Trust accounts; 31
436	414		(vi) Accounting procedures and recordkeeping; 32
437	415		(vii) Contract law; and 33
438	416		(viii) Agency and disclosure; and 34
439	417		(B) Thirty (30) hours of commission property management 35
440		-	supervision best practices; and 36 ~~As Engrossed: S3/5/25~~ HB1558
	418	+	supervision best practices; and 36 HB1558
441	419
442		-	12 03-05-2025 14:46:18 LGL025
443		-
444		-
	420	+	12 02/21/2025 11:38:39 AM LGL025
445	421		(4) The education hours required of an applicant for a property 1
446	422		management associate’s license shall not exceed thirty (30) hours and shall 2
447	423		include property management principles and practices, including without 3
448	424		limitation: 4
449	425		(A) Landlord-tenant law; 5
450	426		(B) Federal and state fair housing laws; 6
451	427		(C) The Americans with Disabilities Act of 1990, 42 U.S.C. 7
452	428		§ 12101 et seq; 8
453	429		(D) State licensing law and rules; 9
454	430		(E) Trust accounts; 10
455	431		(F) Accounting procedures and recordkeeping; 11
456	432		(G) Contract law; and 12
457	433		(H) Agency and disclosure. 13
458	434		(b)(1) The commission shall establish the experience requirement for 14
459	435		licensure for an applicant for a real estate broker's license subject to the 15
460	436		condition of serving an active, bona fide apprenticeship by holding a valid 16
461	437		salesperson's license issued by the commission or by holding a valid 17
462	438		salesperson's license or real estate broker's license issued by the 18
463	439		appropriate licensing agency of another state for a period of not less than 19
464	440		twenty-four (24) months within the previous forty -eight-month period 20
465	441		immediately preceding the date of application. 21
466	442		(2) However, the commission may waive the experience requirement 22
467	443		for a real estate broker applicant who has held an active real estate 23
468	444		broker's license for a period of not less than eighteen (18) months or who 24
469	445		has experience acceptable to the commission in a field considered real 25
470	446		estate-related for a period of not less than twenty -four (24) months within 26
471	447		the previous forty-eight-month period immediately preceding the date of 27
472	448		application. 28
473	449		(3) The experience requirement for licensure for an applicant 29
474	450		for a property management broker license shall be any combination of: 30
475	451		(A) Two (2) years of experience as a licensed property 31
476	452		management associate; 32
477	453		(B) Two (2) years of experience managing not less than 33
478	454		seven (7) residential or commercial units; or 34
479	455		(C) A total of two (2) years of a combination of the 35
480		-	experience in subdivisions (b)(3)(A) and (b)(3)(B) of this section. 36 ~~As Engrossed: S3/5/25~~ HB1558
	456	+	experience in subdivisions (b)(3)(A) and (b)(3)(B) of this section. 36 HB1558
481	457
482		-	13 03-05-2025 14:46:18 LGL025
483		-
484		-
	458	+	13 02/21/2025 11:38:39 AM LGL025
485	459		(c)(1) The commission shall establish a post -licensure education 1
486	460		requirement for individuals in their first year six (6) months of licensure 2
487	461		as salespersons, property management associates, property management brokers, 3
488	462		or real estate brokers. 4
489	463		(2) The commission shall not require more than thirty (30) 5
490	464		classroom hours of post -licensure education hours under subsection (c)(1) of 6
491	465		this section. 7
492	466		8
493	467		SECTION 14. Arkansas Code § 17 -42-304 is amended to read as follows: 9
494	468		17-42-304. Fees. 10
495	469		The Arkansas Real Estate Commission shall have authority to establish, 11
496	470		charge, and collect the following fees: 12
497	471		(1) An application fee not to exceed fifty dollars ($50.00); 13
498	472		(2) An original real estate broker's license fee not to exceed 14
499	473		eighty dollars ($80.00); 15
500	474		(3) A real estate broker's license annual renewal fee not to 16
501	475		exceed eighty dollars ($80.00); 17
502	476		(4) An original salesperson's license fee not to exceed sixty 18
503	477		dollars ($60.00); 19
504	478		(5) A salesperson's license annual renewal fee not to exceed 20
505	479		sixty dollars ($60.00); 21
506	480		(6) A real estate broker's expired license fee not to exceed one 22
507	481		hundred ten dollars ($110) per year or fraction thereof; 23
508	482		(7) A salesperson's expired license fee not to exceed eighty 24
509	483		dollars ($80.00) per year or fraction thereof; 25
510	484		(8) An original property management broker license fee not to 26
511	485		exceed eighty dollars ($80.00); 27
512	486		(9) A property management broker license annual renewal fee not 28
513	487		to exceed eighty dollars ($80.00); 29
514	488		(10) A property management broker expired license fee not to 30
515	489		exceed one hundred ten dollars ($110.00) per year or fraction thereof; 31
516	490		(11) An original property management associate license fee not 32
517	491		to exceed sixty dollars ($60.00); 33
518	492		(12) A property management associate annual renewal fee not to 34
519	493		exceed sixty dollars ($60.00); 35
520		-	(13) A property management associate expired license fee not to 36 ~~As Engrossed: S3/5/25~~ HB1558
	494	+	(13) A property management associate expired license fee not to 36 HB1558
521	495
522		-	14 03-05-2025 14:46:18 LGL025
523		-
524		-
	496	+	14 02/21/2025 11:38:39 AM LGL025
525	497		exceed eighty dollars ($80.00); 1
526	498		(14) A license reissuance fee not to exceed thirty dollars 2
527	499		($30.00); 3
528	500		(9)(15) An initial duplicate license fee not to exceed thirty 4
529	501		dollars ($30.00); 5
530	502		(10)(16) A duplicate license annual renewal fee not to exceed 6
531	503		thirty dollars ($30.00); 7
532	504		(11)(17) A transfer fee not to exceed thirty dollars ($30.00); 8
533	505		(12)(A)(18)(A) An examination fee not to exceed seventy -five 9
534	506		dollars ($75.00). 10
535	507		(B) However, the commission at its discretion may direct 11
536	508		each applicant to pay the actual costs of the examination fee directly to a 12
537	509		testing service engaged by the commission to administer the examination; 13
538	510		(13)(19) Pursuant to § 17-42-313, an appeal filing fee not to 14
539	511		exceed one hundred dollars ($100); 15
540	512		(14)(20) A Real Estate Recovery Fund fee not to exceed twenty -16
541	513		five dollars ($25.00); and 17
542	514		(15)(21) The actual cost of a state and federal criminal history 18
543	515		background check. 19
544	516		20
545	517		SECTION 15. Arkansas Code § 17 -42-306 is amended to read as follows: 21
546	518		17-42-306. Application procedure — Licensing examination required. 22
547	519		(a)(1) Applications for licensure shall be submitted on forms provided 23
548	520		by the Arkansas Real Estate Commission. 24
549	521		(2) The commission may require any information and documentation 25
550	522		needed to determine if the applicant meets the criteria for licensure as 26
551	523		provided in this chapter. 27
552	524		(3) Each applicant shall pay an application fee and examination 28
553	525		fee as the commission may require under § 17 -42-304. 29
554	526		(4)(A) Applicants that have provided all required information 30
555	527		and documentation to the commission may sit for the licensing examination, if 31
556	528		a request has been sent to the Identification Bureau of the Department 32
557	529		Division of Arkansas State Police for a state and federal criminal background 33
558	530		check. 34
559	531		(B) A real estate license shall not be issued until the 35
560		-	applicant has successfully completed the licensing examination and the 36 ~~As Engrossed: S3/5/25~~ HB1558
	532	+	applicant has successfully completed the licensing examination and the 36 HB1558
561	533
562		-	15 03-05-2025 14:46:18 LGL025
563		-
564		-
	534	+	15 02/21/2025 11:38:39 AM LGL025
565	535		commission receives and approves the state and federal criminal background 1
566	536		check. 2
567	537		(b)(1)(A) An applicant who successfully completes the licensing 3
568	538		examination shall pay, within ninety (90) days from the date of the licensing 4
569	539		examination, such license fee and Real Estate Recovery Fund fee as the 5
570	540		commission may require under § 17 -42-304. 6
571	541		(B)(i) If the federal criminal background check has not 7
572	542		been received by the commission within ninety (90) days of the date of the 8
573	543		licensing examination, the date may be extended by the commission until 9
574	544		receipt of the federal criminal background check. 10
575	545		(ii) A real estate license shall not be issued until 11
576	546		receipt and approval by the commission of the state and federal criminal 12
577	547		background checks. 13
578	548		(2) The applicant's failure to pay the license fee and Real 14
579	549		Estate Recovery Fund fee within the ninety -day period under subdivision 15
580	550		(b)(1)(A) of this section shall invalidate the licensing examination results, 16
581	551		and the applicant shall be required to make new application and retake the 17
582	552		licensing examination as an original applicant. 18
583	553		19
584	554		SECTION 16. Arkansas Code § 17 -42-307(b)(4), concerning license 20
585	555		expiration and renewal under the Real Estate License Law, is amended to read 21
586	556		as follows: 22
587	557		(4) Effective September 30, 2019, the The commission may 23
588	558		promulgate rules to add additional hours of continuing education to the 24
589	559		annual amount required under subdivision (b)(1)(A) of this section with no 25
590	560		statutory maximum for hours of continuing education. 26
591	561		27
592	562		SECTION 17. Arkansas Code § 17 -42-307(c)-(f), concerning license 28
593	563		expiration and renewal under the Real Estate License Law, are amended to read 29
594	564		as follows: 30
595	565		(c)(1) A property management broker or property management associate 31
596	566		shall complete annually: 32
597	567		(A) Not less than six (6) hours nor more than seven (7) 33
598	568		classroom hours of continuing education required by the commission, with at 34
599	569		least one (1) classroom hour focusing on safety; 35
600		-	(B) The distance education equivalent of subdivision 36 ~~As Engrossed: S3/5/25~~ HB1558
	570	+	(B) The distance education equivalent of subdivision 36 HB1558
601	571
602		-	16 03-05-2025 14:46:18 LGL025
603		-
604		-
	572	+	16 02/21/2025 11:38:39 AM LGL025
605	573		(c)(1)(A) of this section required by the commission; or 1
606	574		(C) A course that the commission has determined to 2
607	575		demonstrate mastery of an acceptable property management subject. 3
608	576		(2) A licensee who satisfies subdivision (c)(1) of this section 4
609	577		completes the continuing education requirements for the licensing year. 5
610	578		(3) If a licensee files for renewal of a license but fails to 6
611	579		provide proof of continuing education, the licensee's license is inactive 7
612	580		until proof is provided to the commission. 8
613	581		(d)(1) To renew or reactivate a license, a licensee shall complete the 9
614	582		number of classroom hours of continuing education or the distance education 10
615	583		equivalent of continuing education required by the commission for each 11
616	584		inactive year not to exceed a total of thirty (30) classroom hours. 12
617	585		(2) Except as provided in subdivision (c)(1)(d)(1) of this 13
618	586		section, a person is not subject to the education requirements of this 14
619	587		section while the person's license is inactive. 15
620	588		(3) The commission may waive all or part of the requirements of 16
621	589		subdivision (c)(1)(d)(1) of this section if a licensee is unable to complete 17
622	590		the continuing education due to extenuating circumstances. 18
623	591		(d)(1)(e)(1) For each active licensee, the commission shall issue a 19
624	592		new license for each ensuing renewal period in the absence of a reason or 20
625	593		condition that may warrant the refusal of a license, upon receipt of the: 21
626	594		(A) Written request for license renewal at least ninety 22
627	595		(90) days before the expiration of the license upon forms provided by the 23
628	596		commission; and 24
629	597		(B) Renewal fee. 25
630	598		(2)(A) A broker, or salesperson, property management associate, 26
631	599		or property management broker who does not wish to engage in the real estate 27
632	600		or property management business may renew a license on inactive status in the 28
633	601		absence of a reason or condition that may warrant the refusal of a license 29
634	602		upon receipt of the: 30
635	603		(i) Written request of the applicant at least ninety 31
636	604		(90) days before the expiration of the license upon forms provided by the 32
637	605		commission; and 33
638	606		(ii) Renewal fee. 34
639	607		(B) The commission may limit the number of renewal periods 35
640		-	in which a license may be renewed on inactive status. 36 ~~As Engrossed: S3/5/25~~ HB1558
	608	+	in which a license may be renewed on inactive status. 36 HB1558
641	609
642		-	17 03-05-2025 14:46:18 LGL025
643		-
644		-
	610	+	17 02/21/2025 11:38:39 AM LGL025
645	611		(C) The renewal fee for inactive status is the same as for 1
646	612		renewal of an active license. 2
647	613		(3) An application for renewal filed after the date established 3
648	614		by the commission to renew a license is treated as an application to renew an 4
649	615		expired license. 5
650	616		(e)(f) If a person to whom a valid license has been issued permits the 6
651	617		license to expire for a period not in excess of that established by the 7
652	618		commission, the commission shall issue to the person a current license 8
653	619		without requiring the person to submit to an examination if the person 9
654	620		furnishes the information required by the commission, including proof of 10
655	621		completion of appropriate continuing education requirements, and pays the fee 11
656	622		required by the commission. 12
657	623		(f)(1)(g)(1) New salesperson, property management associate, property 13
658	624		management broker, and real estate broker licensees shall complete post -14
659	625		licensure education under § 17 -42-303(c). 15
660	626		(2) If the licensee fails to complete the post -licensure 16
661	627		education requirements within twelve (12) six (6) months after the date the 17
662	628		license was issued, the commission shall place the license on inactive status 18
663	629		until the commission receives documentation that the licensee has completed 19
664	630		the post-licensure education requirements. 20
665	631		21
666	632		SECTION 18. Arkansas Code § 17 -42-308(a)(2), concerning an inactive 22
667	633		license under the Real Estate License Law, is amended to read as follows: 23
668	634		(2) The holder of an inactive license shall not practice as a 24
669	635		real estate broker, or salesperson, property management associate, or 25
670	636		property management broker in this state without first activating the 26
671	637		license. 27
672	638		28
673	639		SECTION 19. Arkansas Code § 17 -42-309, concerning a place of business, 29
674	640		is amended to add additional subsections to read as follows: 30
675	641		(c) Every property management broker shall maintain a place of 31
676	642		business and shall display a sign that is permanently attached to the 32
677	643		building bearing the name under which the property management broker conducts 33
678	644		his or her property management business and the words “property management”, 34
679	645		“rentals”, “leasing”, or other words approved by the commission that clearly 35
680		-	indicate to the public that the property management broker is engaged in the 36 ~~As Engrossed: S3/5/25~~ HB1558
	646	+	indicate to the public that the property management broker is engaged in the 36 HB1558
681	647
682		-	18 03-05-2025 14:46:18 LGL025
683		-
684		-
	648	+	18 02/21/2025 11:38:39 AM LGL025
685	649		property management business. 1
686	650		(d)(1) If a property management broker maintains a branch office, a 2
687	651		duplicate license shall be issued upon payment by the property management 3
688	652		broker of the initial fee and, thereafter, such renewal fee as the commission 4
689	653		may require under § 17 -42-304. 5
690	654		(2) However, a duplicate license shall not be issued for a 6
691	655		branch office at which property management associates are assigned unless the 7
692	656		property management broker establishing the branch office has designated 8
693	657		another property management broker with the firm to supervise the property 9
694	658		management associates. 10
695	659		11
696	660		SECTION 20. Arkansas Code § 17 -42-310(c)–(e), concerning the names and 12
697	661		affiliations of licensees under the Real Estate License Law, are amended to 13
698	662		read as follows: 14
699	663		(c) The licenses of the principal broker or property management broker 15
700	664		and all licensees employed by or associated with him or her shall be retained 16
701	665		by the principal broker or property management broker and conspicuously 17
702	666		displayed in his or her place of business. 18
703	667		(d)(1) Upon the termination of a licensee's employment by or 19
704	668		association with a principal broker or property management broker , the 20
705	669		licensee shall promptly deliver his or her pocket card to the principal 21
706	670		broker or property management broker , and the principal broker or property 22
707	671		management broker shall promptly notify the commission of the termination and 23
708	672		return to the commission the license and pocket card of the terminated 24
709	673		licensee, which shall automatically inactivate the license. 25
710	674		(2) If the pocket card is unavailable, the principal broker or 26
711	675		property management broker shall promptly so notify the commission in 27
712	676		writing. 28
713	677		(e) A license inactivated under this section may be transferred to 29
714	678		another principal broker or property management broker upon application of 30
715	679		the licensee, payment of the relevant fee, and submission of a statement that 31
716	680		he or she is not taking any listings, management contracts, appraisals, lease 32
717	681		agreements, or copies of any such documents or any other pertinent 33
718	682		information belonging to the licensee’s previous principal broker , property 34
719	683		management broker, or firm. 35
720		-	36 ~~As Engrossed: S3/5/25~~ HB1558
	684	+	36 HB1558
721	685
722		-	19 03-05-2025 14:46:18 LGL025
723		-
724		-
	686	+	19 02/21/2025 11:38:39 AM LGL025
725	687		SECTION 21. Arkansas Code § 17 -42-311(a)(9)–(13), concerning 1
726	688		violations under the Real Estate License Law, are amended to read as follows: 2
727	689		(9) Acting as a broker or, salesperson, property management 3
728	690		associate, or property management broker while not licensed with a principal 4
729	691		broker or property management broker , representing or attempting to represent 5
730	692		a broker other than the principal broker or property management broker with 6
731	693		whom he or she is affiliated without the express knowledge and consent of the 7
732	694		principal broker or property management broker , or representing himself or 8
733	695		herself as a salesperson or having a contractual relationship similar to that 9
734	696		of a salesperson with anyone other than a licensed principal broker , or 10
735	697		representing himself or herself as a property management associate or having 11
736	698		a contractual relationship similar to that of a property management associate 12
737	699		with anyone other than a licensed property management broker ; 13
738	700		(10) Advertising in a false, misleading, or deceptive manner; 14
739	701		(11) Being unworthy or incompetent to act as a property 15
740	702		management associate, property management broker, real estate broker, or 16
741	703		salesperson in such a manner as to safeguard the interests of the public; 17
742	704		(12) Paying a commission or valuable consideration to any person 18
743	705		for acts or services performed in violation of this chapter, including paying 19
744	706		a commission or other valuable consideration to an unlicensed person for 20
745	707		participation in a real estate auction; and 21
746	708		(13) While licensed only as a property management broker or 22
747	709		property management associate, participating in or accepting anything of 23
748	710		value for the listing, negotiation, or sale of real estate that is not owned 24
749	711		by the property management broker or property management associate, including 25
750	712		without limitation real estate managed by a property management broker or 26
751	713		property management associate; and 27
752	714		(14) Any other conduct, whether of the same or a different 28
753	715		character from that specified in this section, which constitutes improper, 29
754	716		fraudulent, or dishonest dealing. 30
755	717		31
756	718		SECTION 22. Arkansas Code § 17 -42-312(a)(1), concerning investigation 32
757	719		of complaints, citations, and penalties under the Real Estate License Law, is 33
758	720		amended to read as follows: 34
759	721		(a)(1) The Arkansas Real Estate Commission may, on its own motion, and 35
760		-	shall, upon the verified complaint in writing of any person, provided that 36 ~~As Engrossed: S3/5/25~~ HB1558
	722	+	shall, upon the verified complaint in writing of any person, provided that 36 HB1558
761	723
762		-	20 03-05-2025 14:46:18 LGL025
763		-
764		-
	724	+	20 02/21/2025 11:38:39 AM LGL025
765	725		the complaint and any evidence, documentary or otherwise, presented in 1
766	726		connection therewith shall make out a prima facie case, investigate the 2
767	727		actions of any person engaged in the business or acting in the capacity of a 3
768	728		real estate broker, or real estate salesperson , property management 4
769	729		associate, or property management broker regardless of whether the 5
770	730		transaction was for his or her own account or in his or her capacity as a 6
771	731		broker, or salesperson, property management associate, or property management 7
772	732		broker. 8
773	733		9
774	734		SECTION 23. Arkansas Code § 17 -42-312(d)(1)(A) and (B), concerning 10
775	735		investigation of complaints, citations, and penalties under the Real Estate 11
776	736		License Law, are amended to read as follows: 12
777	737		(A) A penalty of not more than one hundred dollars ($100) 13
778	738		to a broker, or salesperson, property management associate, or property 14
779	739		management broker who: 15
780	740		(i) Fails to complete annual education requirements; 16
781	741		or 17
782	742		(ii) Fails to complete post -licensure education 18
783	743		requirements by the established deadline; or 19
784	744		(B) A penalty of not more than two hundred fifty dollars 20
785	745		($250) to a broker, salesperson, property management associate, property 21
786	746		management broker, or the supervising broker of a broker , or salesperson, or 22
787	747		property management broker if a broker, or salesperson, property management 23
788	748		associate, or property management broker : 24
789	749		(i) Performs activities that require an active real 25
790	750		estate license while his or her license is expired; or 26
791	751		(ii) Advertises, publishes, or otherwise distributes 27
792	752		information about real property , or real estate brokerage , or property 28
793	753		management business or activities in violation of this chapter or rules 29
794	754		adopted under this chapter. 30
795	755		31
796	756		SECTION 24. Arkansas Code § 17 -42-313(a), concerning complaints and 32
797	757		appeals before the Arkansas Real Estate Commission, is amended to read as 33
798	758		follows: 34
799	759		(a) Any person whose complaint against a licensed real estate broker , 35
800		-	or salesperson, property management associate, or property management broker 36 ~~As Engrossed: S3/5/25~~ HB1558
	760	+	or salesperson, property management associate, or property management broker 36 HB1558
801	761
802		-	21 03-05-2025 14:46:18 LGL025
803		-
804		-
	762	+	21 02/21/2025 11:38:39 AM LGL025
805	763		is dismissed by the Executive Director of the Arkansas Real Estate Commission 1
806	764		without a hearing may appeal the dismissal to the Arkansas Real Estate 2
807	765		Commission subject to and in accordance with the following provisions: 3
808	766		(1) The request for appeal must be in writing and received in 4
809	767		the office of the commission not later than sixty (60) days following the 5
810	768		date of dismissal by the executive director; 6
811	769		(2) The request for appeal must be accompanied by such filing 7
812	770		fee as the commission may require pursuant to § 17 -42-304; and 8
813	771		(3)(A)(i) The appellant must also pay the cost of preparing the 9
814	772		record for the commission's review, which cost shall be determined by the 10
815	773		commission. 11
816	774		(ii)(a) The costs must be paid by the appellant 12
817	775		within thirty (30) days after notification of the amount. 13
818	776		(b) Otherwise, the appeal shall be dismissed. 14
819	777		(B) However, if the commission's review results in a 15
820	778		hearing being ordered on the complaint, both the filing fee and the cost of 16
821	779		preparing the record shall be refunded to the appellant. 17
822	780		(C) Any person who is indigent and unable to pay either 18
823	781		the filing fee or the cost of the record, or both, may file a pauper's oath 19
824	782		in such form as required by the commission, and, if the commission determines 20
825	783		that the appellant is indeed indigent, the filing fee or cost of the record, 21
826	784		or both, shall be waived. 22
827	785		23
828	786		SECTION 25. Arkansas Code § 17 -42-314(b), concerning hearings under 24
829	787		the Real Estate License Law, is amended to read as follows: 25
830	788		(b) Except in cases in which a licensee has obtained a license by 26
831	789		false or fraudulent representation, the Arkansas Real Estate Commission shall 27
832	790		not investigate the actions of or conduct any disciplinary hearing regarding 28
833	791		any real estate broker , or salesperson, property management associate, or 29
834	792		property management broker unless the complaint is filed or the investigation 30
835	793		initiated within three (3) years from the date of the actions complained of 31
836	794		or concerning which an investigation is initiated. 32
837	795		33
838	796		SECTION 26. Arkansas Code § 17 -42-501 is amended as follows: 34
839	797		17-42-501. Real estate education program. 35
840		-	(a) The Arkansas Real Estate Commission shall establish an education 36 ~~As Engrossed: S3/5/25~~ HB1558
	798	+	(a) The Arkansas Real Estate Commission shall establish an education 36 HB1558
841	799
842		-	22 03-05-2025 14:46:18 LGL025
843		-
844		-
	800	+	22 02/21/2025 11:38:39 AM LGL025
845	801		program for real estate brokers, salespersons, and property management 1
846	802		licensees to ensure that education is available and accessible to an 2
847	803		applicant or a licensee. 3
848	804		(b) The education program is intended to fulfill the education 4
849	805		requirements for a real estate broker, salesperson, or property management 5
850	806		license and to provide real estate and property management courses intended 6
851	807		to fulfill the education requirements for a real estate broker, salesperson, 7
852	808		or property management license. 8
853	809		9
854	810		SECTION 27. Arkansas Code § 17 -42-502(3)-(5), concerning definitions 10
855	811		under the education programs of the Real Estate License Law, are amended to 11
856	812		read as follows: 12
857	813		(3) "Approved course" means a course of instruction approved by 13
858	814		the commission that satisfies the education requirements for prelicense 14
859	815		education, postlicense education, or continuing education for a real estate 15
860	816		license issued by the commission ; 16
861	817		(4) "Associate instructor" means a person who is licensed by the 17
862	818		commission to teach real estate or property management courses while under 18
863	819		the supervision of an administrator or principal instructor that satisfy the 19
864	820		education requirements for a real estate license issued by the commission ; 20
865	821		(5) "Association license" means a license granted by the 21
866	822		commission to a real estate trade or professional association offering 22
867	823		approved education that satisfies education requirements for a real estate 23
868	824		license issued by the commission ; 24
869	825		25
870	826		SECTION 28. Arkansas Code § 17 -42-502(12)-(14), concerning definitions 26
871	827		under the education programs of the Real Estate License Law, are amended to 27
872	828		read as follows: 28
873	829		(12) "Nonqualified offering" means a course in real estate 29
874	830		education that has not been approved by the commission but is offered to 30
875	831		persons intending to apply for a real estate license issued by the 31
876	832		commission; 32
877	833		(13) “Postlicense education” means real estate or property 33
878	834		management education required to be successfully completed within a time 34
879	835		frame established by the commission after a real estate or property 35
880		-	management license is issued; 36 ~~As Engrossed: S3/5/25~~ HB1558
	836	+	management license is issued; 36 HB1558
881	837
882		-	23 03-05-2025 14:46:18 LGL025
883		-
884		-
	838	+	23 02/21/2025 11:38:39 AM LGL025
885	839		(14) “Prelicense education” means real estate or property 1
886	840		management education required to be successfully completed by an applicant 2
887	841		before sitting for the examination for a broker or salesperson license issued 3
888	842		by the commission; 4
889	843		5
890	844		SECTION 29. Arkansas Code § 17 -42-502(15)(B)(iv) and (v), concerning 6
891	845		definitions under the education programs of the Real Estate License Law, are 7
892	846		amended to read as follows: 8
893	847		(iv) Advertise as being engaged in the business of 9
894	848		offering real estate or property management education courses; and 10
895	849		(v) Charge tuition and fees for real estate or 11
896	850		property management education courses; 12
897	851		13
898	852		SECTION 30. Arkansas Code § 17 -42-502(17) and (18), concerning 14
899	853		definitions under the education programs of the Real Estate License Law, are 15
900	854		amended to read as follows: 16
901	855		(17) "School license" means a license granted by the commission 17
902	856		to a proprietary education institution offering education courses approved by 18
903	857		the commission that fulfill mandatory education requirements for attaining or 19
904	858		maintaining a real estate license issued by the commission ; and 20
905	859		(18) "Student" means an applicant or licensee who attends real 21
906	860		estate or property management education courses approved by the commission. 22
907	861		23
908	862		SECTION 31. Arkansas Code § 17 -42-503(b), concerning exemptions to the 24
909	863		course approval authority of the Arkansas Real Estate Commission, is amended 25
910	864		to read as follows: 26
911	865		(b) The requirement for course approval by the Arkansas Real Estate 27
912	866		Commission under this subchapter does not apply to: 28
913	867		(1) A classroom course in a real estate -related subject 29
914	868		identified by the commission as an approved topic if it is offered by the 30
915	869		National Association of Realtors, the National Association of Real Estate 31
916	870		Brokers, or other associated entities; 32
917	871		(2) A course of at least three (3) semester hours or equivalent 33
918	872		in a real estate or property management subject that is approved by the 34
919	873		commission and offered by an accredited college or university; 35
920		-	(3) A course in a property management or real estate-related 36 ~~As Engrossed: S3/5/25~~ HB1558
	874	+	(3) A course in a property management or real estate-related 36 HB1558
921	875
922		-	24 03-05-2025 14:46:18 LGL025
923		-
924		-
	876	+	24 02/21/2025 11:38:39 AM LGL025
925	877		subject offered by the commission; 1
926	878		(4) A course or a conference in a property management or real 2
927	879		estate-related subject approved by the commission and offered annually on a 3
928	880		limited basis in Arkansas; or 4
929	881		(5) A course that is not used to fulfill the education 5
930	882		requirements of this subchapter for attaining a real estate or property 6
931	883		management license. 7
932	884		8
933	885		SECTION 32. Arkansas Code § 17 -42-504(c), concerning requirements to 9
934	886		provide real estate education courses under the Real Estate License Law, is 10
935	887		amended to read as follows: 11
936	888		(c)(1) On and after June 1, 2026, a person shall not practice as a 12
937	889		provider of property management education for property management licensure 13
938	890		unless the commission approves that education practitioner as a subject 14
939	891		matter expert in the field of property management or that person holds a 15
940	892		property management broker license issued by the commission. 16
941	893		(d) A person or school shall not represent that an offered property 17
942	894		management course satisfies the education requirements for property 18
943	895		management licensure unless the course is approved by the commission. 19
944	896		(e)(1) It is a violation of this subchapter to fail to obtain: 20
945	897		(A) A license to practice as a provider of real estate 21
946	898		education for real estate licensure; or 22
947	899		(B) Approval for a real estate education course by the 23
948	900		commission; 24
949	901		(C) A license to practice as a provider of property 25
950	902		management education for property management licensure; or 26
951	903		(D) Approval for a property management education course by 27
952	904		the commission. 28
953	905		(2) A real estate or property management education course 29
954	906		offered in violation of this subchapter is a nonqualified offering. 30
955	907		31
956	908		SECTION 33. Arkansas Code § 17 -42-506 is amended to read as follows: 32
957	909		17-42-506. Powers and duties. 33
958	910		(a) The Arkansas Real Estate Commission may adopt rules as necessary 34
959	911		to implement this subchapter. 35
960		-	(b) The commission shall license, approve, and regulate schools, 36 ~~As Engrossed: S3/5/25~~ HB1558
	912	+	(b) The commission shall license, approve, and regulate schools, 36 HB1558
961	913
962		-	25 03-05-2025 14:46:18 LGL025
963		-
964		-
	914	+	25 02/21/2025 11:38:39 AM LGL025
965	915		associations, principal instructors, and associate instructors offering 1
966	916		commission-approved prelicense, postlicense, and continuing education courses 2
967	917		offered to satisfy education requirements for real estate licensure under 3
968	918		this chapter. 4
969	919		(c) The commission shall establish the licensing or education 5
970	920		requirements for: 6
971	921		(1) A school or association that applies for a license to offer 7
972	922		real estate courses that satisfy the education requirements for real estate 8
973	923		licensure under this chapter; 9
974	924		(2) Principal and associate instructors of courses approved by 10
975	925		the commission; 11
976	926		(3) Courses that satisfy the education requirements for 12
977	927		applicants for real estate licensure and under this chapter, real estate 13
978	928		licensees, and property management licensees ; and 14
979	929		(4) Guest speakers of courses approved by the commission. 15
980	930		(d) The commission shall: 16
981	931		(1) Establish procedural guidelines for licensed schools and 17
982	932		their locations and those providing real estate or property management 18
983	933		education designed for students to meet the education requirements for a real 19
984	934		estate license or property management license issued by the commission ; 20
985	935		(2) Charge fees and pay the necessary expenses to develop, 21
986	936		approve, sponsor, contract for, or conduct real estate or property management 22
987	937		courses and seminars for real estate or property management licensees or 23
988	938		instructors of real estate or property management education; 24
989	939		(3) Maintain in electronic format a list of the names of real 25
990	940		estate approved schools, associations, administrators, instructors, and 26
991	941		courses approved under this subchapter; 27
992	942		(4) Publish in electronic format the names of the persons, 28
993	943		associations, or schools that have been sanctioned by formal hearing or 29
994	944		consent order under this subchapter; 30
995	945		(5) Periodically monitor courses offered or taught by the 31
996	946		licensed schools and instructors; and 32
997	947		(6) Establish course requirements with respect to: 33
998	948		(A) Accessibility; 34
999	949		(B) Attendance; 35
1000		-	(C) Satisfactory completion; and 36 ~~As Engrossed: S3/5/25~~ HB1558
	950	+	(C) Satisfactory completion; and 36 HB1558
1001	951
1002		-	26 03-05-2025 14:46:18 LGL025
1003		-
1004		-
	952	+	26 02/21/2025 11:38:39 AM LGL025
1005	953		(D) Curricula; and 1
1006	954		(E) Student license or applicant type . 2
1007	955		3
1008	956		SECTION 34. Arkansas Code § 17 -42-513(a), concerning the approval of 4
1009	957		courses and course content by the Arkansas Real Estate Commission, is amended 5
1010	958		to read as follows: 6
1011	959		(a) Except for courses exempted in § 17 -42-503(b), a real estate or 7
1012	960		property management course that is intended to satisfy the education 8
1013	961		requirements for a real estate or property management license issued by the 9
1014	962		Arkansas Real Estate Commission shall first be approved by the Arkansas Real 10
1015	963		Estate Commission commission. 11
1016	964		12
1017	965		SECTION 35. Arkansas Code § 17 -42-514(a)(1), concerning curricula 13
1018	966		required by the Real Estate License Law, is amended to read as follows: 14
1019	967		(1) Require not less than six (6) nor more than seven (7) 15
1020	968		classroom hours of continuing education for licensees under § 17-42-307; 16
1021	969		17
1022	970		SECTION 36. Arkansas Code § 17 -42-514(a), concerning curricula 18
1023	971		required by the Real Estate License Law, is amended to add an additional 19
1024	972		subdivision to read as follows: 20
1025	973		(6) Develop and require a specific curriculum for continuing 21
1026	974		education courses for property management associates and property management 22
1027	975		broker licensees. 23
1028	976		24
1029	977		SECTION 37. Arkansas Code § 17 -42-514 is amended to read as follows: 25
1030	978		17-42-514. Curricula. 26
1031	979		(a) The Arkansas Real Estate Commission may: 27
1032	980		(1) Require not less than six (6) nor more than seven (7) 28
1033	981		classroom hours of continuing education for licensees; 29
1034	982		(2) Identify subject matter topics for continuing education 30
1035	983		courses; 31
1036	984		(3) Identify a specific topic of not more than three (3) 32
1037	985		classroom hours to be included in the annual continuing education 33
1038	986		requirement; 34
1039	987		(4) Develop and require a specific curriculum for continuing 35
1040		-	education courses for licensed brokers or their designees; and 36 ~~As Engrossed: S3/5/25~~ HB1558
	988	+	education courses for licensed brokers or their designees; and 36 HB1558
1041	989
1042		-	27 03-05-2025 14:46:18 LGL025
1043		-
1044		-
	990	+	27 02/21/2025 11:38:39 AM LGL025
1045	991		(5) Identify subject matter topics for which licensed schools 1
1046	992		and instructors may develop courses that fulfill the annual continuing 2
1047	993		education requirements. 3
1048	994		(b)(1) The commission may develop the curricula for prelicense and 4
1049	995		postlicense education. 5
1050	996		(2) Prelicense and postlicense courses that are intended to 6
1051	997		satisfy the education requirements for a property management license shall be 7
1052	998		approved by the commission for participation and attendance by applicants for 8
1053	999		property management licensure. 9
1054	1000		(3) Prelicense and postlicense courses that are intended to 10
1055	1001		satisfy the education requirements for a real estate license shall only be 11
1056	1002		approved by the commission for participation and attendance by applicants for 12
1057	1003		a real estate license. 13
1058	1004		14
1059	1005		SECTION 38. Arkansas Code § 17 -42-515 is amended to read as follows: 15
1060	1006		17-42-515. Violations. 16
1061	1007		An applicant for a real estate educator license or a licensee under 17
1062	1008		this chapter is subject to disciplinary action under this subchapter if the 18
1063	1009		applicant for a real estate educator license or a licensee pleads guilty or 19
1064	1010		nolo contendere to or is found guilty of any of the following: 20
1065	1011		(1) Obtaining a real estate educator license an instructor 21
1066	1012		license, school license, or real estate education course approval by fraud, 22
1067	1013		misrepresentation, or concealment; 23
1068	1014		(2) Violating this subchapter, the rules adopted by the Arkansas 24
1069	1015		Real Estate Commission, or an order issued by the commission; 25
1070	1016		(3) Committing an act, a felony, or a crime involving moral 26
1071	1017		turpitude, fraud, dishonesty, untruthfulness, or untrustworthiness regardless 27
1072	1018		of whether the imposition of the sentence has been deferred or suspended; 28
1073	1019		(4) Engaging or allowing unlawful discriminatory practices; 29
1074	1020		(5) Violating the requirements of the Americans with 30
1075	1021		Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., regarding access to and 31
1076	1022		delivery of real estate or property management education courses; 32
1077	1023		(6) Issuing or reporting a false certificate of completion for a 33
1078	1024		real estate or property management education course; 34
1079	1025		(7) Teaching a course in a way that instructs licensees to 35
1080		-	engage in unlawful or noncompliant activities; 36 ~~As Engrossed: S3/5/25~~ HB1558
	1026	+	engage in unlawful or noncompliant activities; 36 HB1558
1081	1027
1082		-	28 03-05-2025 14:46:18 LGL025
1083		-
1084		-
	1028	+	28 02/21/2025 11:38:39 AM LGL025
1085	1029		(8) Failing to monitor attendance of students to ensure 1
1086	1030		satisfactory completion of real estate or property management education 2
1087	1031		courses approved by the commission; 3
1088	1032		(9) Utilizing an instructor or guest speaker who does not meet 4
1089	1033		the requirements of this subchapter; 5
1090	1034		(10) Making a substantial misrepresentation of a material fact 6
1091	1035		to the commission; 7
1092	1036		(11) Advertising in a false, misleading, or deceptive way; 8
1093	1037		(12) Being unworthy or incompetent to act or operate as a real 9
1094	1038		estate education school or association or a real estate educator; or 10
1095	1039		(13) Refusing or failing to make available to the commission for 11
1096	1040		inspection the records required to be maintained by a principal instructor or 12
1097	1041		administrator; 13
1098	1042		(14) Refusing or failing to cooperate with an investigation 14
1099	1043		commenced by the commission under this chapter; or 15
1100	1044		(15) Engaging in other conduct that constitutes improper, 16
1101	1045		fraudulent, or dishonest dealing. 17
1102	1046		18
1103	1047		SECTION 39. TEMPORARY LANGUAGE. DO NOT CODIFY. Change of heading for 19
1104	1048		Title 17, Chapter 42, Subchapter 5. 20
1105	1049		The Code Revisor shall change the heading of Title 17, Chapter 42, 21
1106	1050		Subchapter 5 from “Renewal of Licenses” To “Real Estate and Property 22
1107	1051		Management Education”. 23
1108	1052		24
1109	1053		SECTION 40. DO NOT CODIFY. Rules implementing this act. 25
1110	1054		(a)(1) When adopting the initial rules to implement this act, the 26
1111	1055		final rules shall be filed with the Secretary of State for adoption under § 27
1112	1056		25-15-204(f): 28
1113	1057		(A) On or before June 1, 2026; or 29
1114	1058		(B) If approval under § 10 -3-309 has not occurred by June 30
1115	1059		1, 2026, as soon as practicable after approval under § 10 -3-309. 31
1116	1060		(2) The Arkansas Real Estate Commission shall file the proposed 32
1117	1061		rules with the Legislative Council under § 10 -3-309(c) sufficiently in 33
1118	1062		advance of June 1, 2026, so that the Legislative Council may consider the 34
1119	1063		rule for approval before June 1, 2026. 35
1120		-	(b) The General Assembly finds that: 36 ~~As Engrossed: S3/5/25~~ HB1558
	1064	+	(b)(1) The General Assembly finds that: 36 HB1558
1121	1065
1122		-	29 03-05-2025 14:46:18 LGL025
1123		-
1124		-
1125		-	(1) Each of the existing rules of the commission is necessary 1
1126		-	for the efficient operation of the commission; and 2
1127		-	(2) The repeal of any of the commission's rules would cause 3
1128		-	unnecessary hardship and may render the commission unable to fully discharge 4
1129		-	its duties and responsibilities. 5
1130		-	6
1131		-	7
1132		-	/s/McGrew 8
1133		-	9
1134		-	10
1135		-	APPROVED: 3/25/25 11
	1066	+	29 02/21/2025 11:38:39 AM LGL025
	1067	+	(A) Each of the existing rules of the commission is 1
	1068	+	necessary for the efficient operation of the commission; and 2
	1069	+	(B) The repeal of any of the commission's rules would 3
	1070	+	cause unnecessary hardship and may render the commission unable to fully 4
	1071	+	discharge its duties and responsibilities. 5
	1072	+	(2) Therefore, it is the intent of the General Assembly that the 6
	1073	+	rules promulgated to implement this act should be exempt from the provision 7
	1074	+	of Executive Order 23 -02 which requires an agency to simultaneously submit 8
	1075	+	two rules for repeal for every one rule presented for rulemaking to a 9
	1076	+	legislative committee of the General Assembly. 10
	1077	+	11
1136	1078		12
1137	1079		13
1138	1080		14
1139	1081		15
1140	1082		16
1141	1083		17
1142	1084		18
1143	1085		19
1144	1086		20
1145	1087		21
1146	1088		22
1147	1089		23
1148	1090		24
1149	1091		25
1150	1092		26
1151	1093		27
1152	1094		28
1153	1095		29
1154	1096		30
1155	1097		31
1156	1098		32
1157	1099		33
1158	1100		34
1159	1101		35
1160	1102		36