Assigned to COM AS PASSED BY COW ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session AMENDED FACT SHEET FOR H.B. 2694 department of real estate; fees Purpose Removes the minimum fee amounts prescribed for real estate licensure. Defines live classroom course relating to real estate prelicensure and renewal education. Background The Arizona Department of Real Estate (ADRE) is established to protect the public interest through the licensure and regulation of real estate, cemetery and membership camping brokers and salespersons in Arizona (A.R.S. § 32-2102). ADRE oversees the business of licensees, land developers and real estate education institutions and monitors the sale of subdivisions, unsubdivided lands, timeshares, condominiums, membership campgrounds and cemeteries. ADRE participates in investigations and administrative hearings and administers the Homeowners Association Dispute Process (A.R.S. § 32-2199). Statute determines a range for fees associated with each real estate license, examination and renewal. The following are the statutorily prescribed minimum fees: 1) $15 for a salesperson's examination application, a salesperson's examination, a temporary broker's license, a temporary cemetery salesperson's license and a membership camping salesperson certificate of convenience; 2) $35 for a broker's examination application, a broker's examination and a salesperson's license; 3) $60 for a salesperson's renewal, a branch office broker's license and a branch office broker's renewal; 4) $75 for a broker's license; and 5) $100 for a broker's renewal. The State Real Estate Commissioner is responsible for determining fee amounts relating to schools and other educational institutions. A corporation, partnership or limited liability company is exempt from the fee for the issuance of a broker's license (A.R.S. § 32-2132). Live classroom prelicensure education and continuing education courses are subject to approval by ADRE. At least 30 days before holding a course of study for completion of the education requirements leading to licensure of real estate applicants or for license renewal requirements, an application for a certificate of course approval or renewal must be filed with ADRE. For a live classroom course, the application must include a course outline with sufficient detail to clearly identify the scope and content of the course. The outline must state a desired instructional outcome for the course. A prelicensure course outline that is submitted for approval must be divided into estimated 50-minute instructional segments. Course approval must not be: 1) unreasonably held; or 2) issued later than 30 days after filing with ADRE for a live classroom course (A.R.S. § 32-2135). If the removal of minimum fees for real estate licensure results in a change of revenues, there may be a fiscal impact to the state General Fund associated with this legislation. FACT SHEET – Amended H.B. 2694 Page 2 Provisions Real Estate Licensure Fees 1. Removes the $15 minimum fee for a salesperson's examination application, a salesperson's examination, a temporary broker's license, a temporary cemetery salesperson's license and a membership camping salesperson certificate of convenience. 2. Removes the $35 minimum fee for a broker's examination application, a broker's examination and a salesperson's license. 3. Removes the $60 minimum fee for a salesperson's renewal, a branch office broker's license and a branch office broker's renewal. 4. Removes the $75 minimum fee for a broker's license. 5. Removes the $100 minimum fee for a broker's renewal. Real Estate Prelicensure and Renewal Education 6. Defines live classroom course as a course or instructional segment delivered in either an in-person or synchronous remote instructional format that allows students to observe and participate remotely in an instructional segment via livestreaming. 7. Clarifies that an applicant for an initial real estate salesperson or broker license may complete a live classroom course by a certified real estate school. 8. Requires an applicant for an initial real estate salesperson or broker license to complete an examination for a live classroom course in person. 9. Allows an applicant for an initial real estate salesperson or broker license to complete the required course in any combination of in-person or synchronous remote delivery methods. 10. Requires the prelicensure or renewal course fee to be the same regardless of the instructional format a person uses to complete a prelicensure or renewal education course or instructional segment. Miscellaneous 11. Makes technical and conforming changes. 12. Becomes effective on the general effective date. Amendments Adopted by Committee of the Whole 1. Defines live classroom course as a course or instructional segment delivered in either an in-person or synchronous remote instructional format that allows students to observe and participate remotely in an instructional segment via livestreaming. FACT SHEET – Amended H.B. 2694 Page 3 2. Clarifies that an applicant for an initial real estate salesperson or broker license may complete a live classroom course by a certified real estate school. 3. Requires an applicant for an initial real estate salesperson or broker license to complete an examination for a live classroom course in person. 4. Allows an applicant for an initial real estate salesperson or broker license to complete the required course in any combination of in-person or synchronous remote delivery methods. 5. Requires the prelicensure or renewal course fee to be the same regardless of the instructional format a person uses to complete a prelicensure or renewal education course or instructional segment. 6. Makes technical and conforming changes. House Action Senate Action COM 2/15/22 DP 10-0-0-0 COM 3/9/22 DP 9-0-0 3 rd Read 2/23/22 59-0-1 Prepared by Senate Research May 25, 2022 JT/CY/sr