Assigned to COM FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2172
real estate licensees; employers; compensation
Purpose
Allows a real estate licensee to accept employment and compensation from an employer,
other than the employing broker, that meets outlined criteria.
Background
The Arizona Department of Real Estate is established to protect the public interest through
the licensure and regulation of real estate brokers and salespersons in Arizona (A.R.S.
§ 32-2102). Statute outlines restrictions on employment and compensation relating to brokers and
salespersons. A broker must employ and pay only active licensees and licensees must accept
employment and compensation only from the legally licensed broker to whom the licensee is
licensed (A.R.S. § 32-2155). The State Real Estate Commissioner (Commissioner) may deny,
suspend or revoke a license if a licensee accepted compensation from any person other than: 1) the
licensed broker to whom the licensee is licensed; 2) the licensed professional corporation of which
the licensee is an officer and shareholder; or 3) the licensed professional limited liability company
of which the licensee is a member (A.R.S. § 32-2153).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Allows a real estate licensee to accept employment and compensation from an employer, other
than the employing broker, if all of the following apply:
a) the employer holds a real estate license;
b) the licensee is the employer's employee and receives a federal form W-2 wage and tax
statement;
c) the employer has the same employing broker as the licensee; and
d) the employer obtains written permission from the employing broker to pay the licensee.
2. Specifies that acceptance of compensation from any person who is not authorized to provide
compensation is grounds for the Commissioner to deny, suspend or revoke a license.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
FACT SHEET
H.B. 2172
Page 2
House Action
COM 2/1/22 DP 10-0-0-0
3
rd
Read 2/10/22 54-0-6
Prepared by Senate Research
February 28, 2022
JT/sr