Indiana 2024 Regular Session

Indiana House Bill HB1268 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1268
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 25-34.1-3-4.1.
7	7	Synopsis: Attorney eligibility for real estate broker exam. Allows a
8	8	licensed attorney to obtain a real estate broker license without
9	9	completing an approved broker course of study.
10	10	Effective: Upon passage; July 1, 2024.
11	11	Hatcher
12	12	January 9, 2024, read first time and referred to Committee on Employment, Labor and
13	13	Pensions.
14	14	2024 IN 1268—LS 6421/DI 153 Introduced
15	15	Second Regular Session of the 123rd General Assembly (2024)
16	16	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
17	17	Constitution) is being amended, the text of the existing provision will appear in this style type,
18	18	additions will appear in this style type, and deletions will appear in this style type.
19	19	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
20	20	provision adopted), the text of the new provision will appear in this style type. Also, the
21	21	word NEW will appear in that style type in the introductory clause of each SECTION that adds
22	22	a new provision to the Indiana Code or the Indiana Constitution.
23	23	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
24	24	between statutes enacted by the 2023 Regular Session of the General Assembly.
25	25	HOUSE BILL No. 1268
26	26	A BILL FOR AN ACT to amend the Indiana Code concerning
27	27	professions and occupations.
28	28	Be it enacted by the General Assembly of the State of Indiana:
29	29	1 SECTION 1. IC 25-34.1-3-4.1, AS AMENDED BY P.L.32-2020,
30	30	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31	31	3 JULY 1, 2024]: Sec. 4.1. (a) Except as provided in subsection (k), to
32	32	4 obtain a broker license, an individual must:
33	33	5 (1) be at least eighteen (18) years of age before applying for a
34	34	6 license and must not have a conviction for:
35	35	7 (A) an act that would constitute a ground for disciplinary
36	36	8 sanction under IC 25-1-11;
37	37	9 (B) a crime that has a direct bearing on the individual's ability
38	38	10 to practice competently; or
39	39	11 (C) a crime that indicates the individual has the propensity to
40	40	12 endanger the public;
41	41	13 (2) have a high school diploma or a general educational
42	42	14 development (GED) diploma under IC 20-20-6 (before its repeal)
43	43	15 or IC 22-4.1-18;
44	44	16 (3) have successfully completed an approved broker course of
45	45	17 study as prescribed in IC 25-34.1-5-5;
46	46	2024 IN 1268—LS 6421/DI 153 2
47	47	1 (4) apply for a license by submitting the application fee
48	48	2 prescribed by the commission and an application specifying:
49	49	3 (A) the name, address, and age of the applicant;
50	50	4 (B) the broker company with which the applicant intends to
51	51	5 associate;
52	52	6 (C) the address of the broker company;
53	53	7 (D) proof of compliance with subdivisions subdivision (2);
54	54	8 and (3);
55	55	9 (E) proof of compliance with subdivision (3); and
56	56	10 (E) (F) any other information the commission requires;
57	57	11 (5) pass a written examination prepared and administered by the
58	58	12 commission or its duly appointed agent; and
59	59	13 (6) within one (1) year after passing the commission examination,
60	60	14 submit the license fee established by the commission under
61	61	15 IC 25-1-8-2. If an individual applicant fails to file a timely license
62	62	16 fee, the commission shall void the application and may not issue
63	63	17 a license to that applicant unless that applicant again complies
64	64	18 with the requirements of subdivisions (4) and (5) and this
65	65	19 subdivision.
66	66	20 (b) To obtain a broker license, a partnership must:
67	67	21 (1) have as partners only individuals who are licensed brokers;
68	68	22 (2) have at least one (1) partner who qualifies as a managing
69	69	23 broker under IC 25-34.1-4-0.5 and IC 25-34.1-4-3;
70	70	24 (3) cause each employee of the partnership who acts as a broker
71	71	25 to be licensed; and
72	72	26 (4) submit the license fee established by the commission under
73	73	27 IC 25-1-8-2 and an application setting forth the name and
74	74	28 residence address of each partner and the information prescribed
75	75	29 in subsection (a)(4).
76	76	30 (c) To obtain a broker license, a corporation must:
77	77	31 (1) have a licensed broker who qualifies as a managing broker
78	78	32 under IC 25-34.1-4-0.5 and IC 25-34.1-4-3;
79	79	33 (2) cause each employee of the corporation who acts as a broker
80	80	34 to be licensed; and
81	81	35 (3) submit the license fee established by the commission under
82	82	36 IC 25-1-8-2, an application setting forth the name and residence
83	83	37 address of each officer and the information prescribed in
84	84	38 subsection (a)(4), a copy of the certificate of incorporation, and a
85	85	39 certificate of good standing of the corporation issued by the
86	86	40 secretary of state.
87	87	41 (d) To obtain a broker license, a limited liability company must:
88	88	42 (1) if a member-managed limited liability company:
89	89	2024 IN 1268—LS 6421/DI 153 3
90	90	1 (A) have as members only individuals who are licensed
91	91	2 brokers; and
92	92	3 (B) have at least one (1) member who qualifies as a managing
93	93	4 broker under IC 25-34.1-4-0.5 and IC 25-34.1-4-3;
94	94	5 (2) if a manager-managed limited liability company, have a
95	95	6 licensed broker who qualifies as a managing broker under
96	96	7 IC 25-34.1-4-0.5 and IC 25-34.1-4-3;
97	97	8 (3) cause each employee of the limited liability company who acts
98	98	9 as a broker to be licensed; and
99	99	10 (4) submit the license fee established by the commission under
100	100	11 IC 25-1-8-2 and an application setting forth the information
101	101	12 prescribed in subsection (a)(4), together with:
102	102	13 (A) if a member-managed company, the name and residence
103	103	14 address of each member; or
104	104	15 (B) if a manager-managed company, the name and residence
105	105	16 address of each manager, or of each officer if the company has
106	106	17 officers.
107	107	18 (e) Licenses granted to partnerships, corporations, and limited
108	108	19 liability companies are issued, expire, are renewed, and are effective on
109	109	20 the same terms as licenses granted to individual brokers, except as
110	110	21 provided in subsection (h), and except that expiration or revocation of
111	111	22 the license of:
112	112	23 (1) any partner in a partnership or all individuals in a corporation
113	113	24 satisfying subsection (c)(1); or
114	114	25 (2) a member in a member-managed limited liability company or
115	115	26 all individuals in a manager-managed limited liability company
116	116	27 satisfying subsection (d)(2);
117	117	28 terminates the license of that partnership, corporation, or limited
118	118	29 liability company.
119	119	30 (f) Upon the applicant's compliance with the requirements of
120	120	31 subsection (a), (b), or (c), the commission shall issue the applicant a
121	121	32 broker license and an identification card which certifies the issuance
122	122	33 of the license and indicates the expiration date of the license. The
123	123	34 license shall be displayed at the broker's place of business. For at least
124	124	35 two (2) years after the issuance of a license, the individual cannot be a
125	125	36 managing broker. An individual who applies for a broker's license after
126	126	37 June 30, 2014, must, during the first two (2) years after the license is
127	127	38 issued, take and pass at least thirty (30) hours of postlicensing
128	128	39 education focused on the practical matters of real estate transactions
129	129	40 instead of the continuing education requirements under IC 25-34.1-9.
130	130	41 (g) Subject to IC 25-1-2-6(e), unless the license is renewed, a broker
131	131	42 license expires, for individuals, on a date specified by the licensing
132	132	2024 IN 1268—LS 6421/DI 153 4
133	133	1 agency under IC 25-1-6-4 and expires three (3) years after the initial
134	134	2 expiration date. An applicant for renewal shall submit an application
135	135	3 in the manner prescribed by the commission and pay the renewal fee
136	136	4 established by the commission under IC 25-1-8-2 on or before the
137	137	5 renewal date specified by the licensing agency. If the holder of a
138	138	6 license does not renew the license by the date specified by the licensing
139	139	7 agency, the license expires and becomes invalid without the
140	140	8 commission taking any action.
141	141	9 (h) Subject to IC 25-1-2-6(e), if the holder of a license under this
142	142	10 section fails to renew the license on or before the date specified by the
143	143	11 licensing agency, the license may be reinstated by the commission if
144	144	12 the holder of the license, not later than three (3) years after the
145	145	13 expiration of the license, meets the requirements of IC 25-1-8-6(c).
146	146	14 (i) If a license under this section has been expired for more than
147	147	15 three (3) years, the license may be reinstated by the commission if the
148	148	16 holder meets the requirements for reinstatement under IC 25-1-8-6(d).
149	149	17 (j) A partnership, corporation, or limited liability company may be
150	150	18 only a broker company, except as authorized in IC 23-1.5 and subject
151	151	19 to section 4.5 of this chapter. An individual broker who associates with
152	152	20 a broker company shall immediately notify the commission:
153	153	21 (1) of the name and business address of the broker company with
154	154	22 which the individual broker is associating; and
155	155	23 (2) of any changes of the broker company with which the
156	156	24 individual broker is associated that may occur.
157	157	25 Upon receiving notice under subdivision (1) or (2), the commission
158	158	26 shall change the address of the individual broker on its records to that
159	159	27 of the broker company.
160	160	28 (k) The requirements described in subsection (a)(3) and
161	161	29 (a)(4)(E) do not apply to an attorney licensed to practice law in
162	162	30 Indiana.
163	163	31 SECTION 2. [EFFECTIVE UPON PASSAGE] (a) As used in this
164	164	32 SECTION, "broker examination" means the written examination
165	165	33 prepared and administered by the commission or its duly
166	166	34 appointed agent under IC 25-34.1-3-4.1(a)(5).
167	167	35 (b) As used in this SECTION, "commission" means the Indiana
168	168	36 real estate commission created by IC 25-34.1-2-1.
169	169	37 (c) Before June 30, 2025, the commission shall amend 876
170	170	38 IAC 6-6-1 to allow attorneys licensed to practice law in Indiana to
171	171	39 sit for the broker examination without having completed the
172	172	40 educational requirements established by IC 25-34.1-3-4.1(a)(3) and
173	173	41 876 IAC 6-1 through 876 IAC 6-5.
174	174	42 (d) This SECTION expires July 1, 2026.
175	175	2024 IN 1268—LS 6421/DI 153 5
176	176	1 SECTION 3. An emergency is declared for this act.
177	177	2024 IN 1268—LS 6421/DI 153