HLS 10RS-1399 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 593 BY REPRESENTATIVE PUGH REAL ESTATE/COMMISSION: Authorizes the La. Real Estate Commission to conduct criminal background checks AN ACT1 To amend and reenact R.S. 37:1437(B), (C), (D), and (E) and to enact R.S. 37:1437(F), (G),2 (H), and (I), relative to licensing requirements for real estate brokers and3 salespersons; to authorize the Louisiana Real Estate Commission to conduct a4 criminal history background check on applicants for licensure; and to provide for5 related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 37:1437(B), (C), (D), and (E) are hereby amended and reenacted and8 R.S. 37:1437(F), (G), (H), and (I) are hereby enacted to read as follows: 9 ยง1437. Application for license10 * * *11 B. In addition to any other requirements established by regulation, as a12 condition for license eligibility, the commission may require an applicant to:13 (1) Submit a full set of fingerprints in a form and manner prescribed by the14 commission.15 (2) Permit the commission to request and obtain state and national criminal16 history record information on the applicant.17 (3) Submit such amount as may be incurred by the commission in requesting18 and obtaining state and national criminal history record information on the applicant,19 in addition to all other applicable fees and costs.20 HLS 10RS-1399 ORIGINAL HB NO. 593 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. C. In accordance with the provisions and procedures prescribed by this1 Section, the commission may request and obtain state and national criminal history2 record information from the Louisiana State Police Bureau of Identification and3 Information and the Federal Bureau of Investigation relative to any applicant for4 licensing whose fingerprints the commission has obtained, pursuant to this Section,5 for the purpose of determining the applicant's suitability and eligibility for licensing.6 D. Upon request by the commission and upon the commission's electronic7 submission of an applicant's fingerprints, and such other identifying information as8 may be required, the Louisiana State Police Bureau of Identification and Information9 shall conduct a search of its criminal history record information relative to the10 applicant and report the results of its search to the commission. The bureau may11 charge the commission a processing fee pursuant to R.S. 15:587 for conducting and12 reporting on any such search.13 E. Any and all state or national criminal history record information obtained14 by the commission from the Louisiana State Police Bureau of Identification and15 Information or the Federal Bureau of Investigation, which is not already a matter of16 public record, shall be deemed nonpublic and confidential information restricted to17 the exclusive use of the commission, its members, officers, investigators, agents, and18 attorneys in evaluating the applicant's eligibility or disqualification for licensing. No19 such information or records related thereto shall be released or otherwise disclosed20 by the commission or any other person or agency, except with the written consent21 of the applicant or by order of a court of competent jurisdiction.22 F.(1) Licenses shall be granted only to persons or entities who bear a good23 reputation for honesty, trustworthiness, integrity, and competence to transact real24 estate activities requiring licensing in this state in such a manner as to safeguard the25 interest of the public, and only after satisfactory proof of such qualifications has been26 presented to the commission.27 (2) When an applicant has been convicted of forgery, embezzlement,28 obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or29 HLS 10RS-1399 ORIGINAL HB NO. 593 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. theft, or has been convicted of a felony or a crime involving moral turpitude in any1 court of competent jurisdiction, such untrustworthiness of the applicant, and the2 conviction, may in itself be sufficient grounds for refusal of a license.3 (3) When an applicant has made a false statement of material fact on his4 application, such false statement may in itself be sufficient grounds for refusal of a5 license.6 (4) Grounds for suspension or revocation of a real estate license in Louisiana7 or any other jurisdiction, or the previous suspension or revocation, of a real estate8 license in Louisiana or any other jurisdiction shall also be grounds for refusal to9 grant a license.10 C. G.(1) No individual real estate broker or salesperson's license shall be11 issued to any person who has not attained the age of eighteen years. No individual12 real estate broker or salesperson's license shall be issued to any person who is not a13 high school graduate or the holder of a certificate of high school equivalency.14 (2)(a) All applicants for an initial individual real estate broker's license shall15 have first served actively for four years as a real estate salesperson and shall show16 evidence satisfactory to the commission that they have satisfactorily completed at17 least one hundred fifty hours or its equivalent of instruction in real estate courses18 approved by the commission prior to licensure. Satisfactory completion includes19 passage of an examination on course contents.20 (b) At least thirty hours of the broker educational requirement shall be21 obtained in coursework emphasizing broker responsibilities.22 (c) Each person obtaining an initial real estate broker's license shall complete23 forty-five post-license education hours within one hundred eighty days after the24 initial license date. Such hours shall be in subjects required by the commission,25 including but not limited to laws, rules and regulations changes, finance, and the26 handling of funds. Post-license education hours may be used to satisfy eight hours27 of the twelve-hour annual continuing education requirement; however, post-license28 HLS 10RS-1399 ORIGINAL HB NO. 593 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. education hours shall not satisfy the four-hour mandatory continuing education topic1 specified by the commission.2 (3) The commission, through its education division, may accept real estate3 related credit hours from an accredited college or university as partial substitution4 of the broker licensing educational requirement.5 (4) The commission shall have the authority to accept experience in the real6 estate business or related fields as credit toward fulfillment of the education7 requirements set forth herein.8 (5)(a) All applicants for a salesperson's license shall show evidence9 satisfactory to the commission that they have completed ninety hours or its10 equivalent of instruction in real estate coursework approved by the commission prior11 to licensure. Satisfactory completion includes passage of an examination on course12 contents.13 (b) Each person obtaining an initial salesperson's license shall complete14 forty-five post-license education hours within one hundred eighty days after the15 initial license date. Such hours shall be in subjects required by the commission,16 including but not limited to laws, rules and regulations changes, finance, and the17 handling of funds. Post-license education hours may be used to satisfy eight hours18 of the twelve-hour annual continuing education requirement; however, post-license19 education hours shall not satisfy the four-hour mandatory continuing education topic20 specified by the commission.21 (6)(a)(I) In addition to all other education requirements set forth in this22 Chapter, the license of an individual real estate broker or salesperson shall not be23 renewed unless the broker or salesperson shall furnish proof of completion of twelve24 hours per year of continuing education pertaining to matters, including but not25 limited to laws, rules, and regulations relative to licensing, appraisal, finance, taxes,26 zoning, environmental quality, and the United States Department of Housing and27 Urban Development. Four of the required annual continuing education hours shall28 be in subjects specified by the commission. Post-license education hours may be29 HLS 10RS-1399 ORIGINAL HB NO. 593 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. used to satisfy eight hours of the twelve-hour annual continuing education1 requirement; however, post-license education hours shall not satisfy the four-hour2 mandatory continuing education topic specified by the commission.3 (ii) The commission shall promulgate rules and regulations necessary to4 implement the continuing education requirement and may mandate the completion5 of courses in specific real estate-related subjects. Such rules and regulations may6 require passage of an examination in order to satisfy the continuing education7 requirement.8 D. H. Every applicant for a license shall submit a sworn statement attesting9 that he has knowledge of and understands the provisions of the Fair Housing Act of10 1968 and the Louisiana Equal Housing Opportunity Act, and any amendments11 thereto or any successor legislation subsequently following, and that he shall not12 induce or attempt to induce any person to sell or rent any dwelling by representations13 regarding the entry or prospective entry into an area, subdivision, or neighborhood14 of a person or persons of a particular race, color, religion, or national origin.15 E. I. A nonresident may obtain a broker's or salesperson's license and engage16 in the real estate business in this state under conditions prescribed by the17 commission.18 Section 2. This Act shall become effective upon signature by the governor or, if not19 signed by the governor, upon expiration of the time for bills to become law without signature20 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21 vetoed by the governor and subsequently approved by the legislature, this Act shall become22 effective on the day following such approval.23 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Pugh HB No. 593 Abstract: Authorizes a criminal background check on applicants for real estate broker or salesperson's licensure. HLS 10RS-1399 ORIGINAL HB NO. 593 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law provides licensing requirements for an applicant for a real estate broker or salesperson's license to be issued by the La. Real Estate Commission. Proposed law retains present law. Proposed law provides that the commission may also require an applicant to: (1)Submit a full set of fingerprints in a form and manner prescribed by the commission. (2)Permit the commission to request and obtain state and national criminal history record information on the applicant. (3)Submit such amount as may be incurred by the commission in requesting and obtaining state and national criminal history record information on the applicant, in addition to all other applicable fees and costs. Proposed law authorizes the commission to request and obtain state and national criminal history record information from the La. State Police Bureau of Identification and Information and the F.B.I. relative to any applicant for licensing whose fingerprints the commission has obtained for the purpose of determining the applicant's suitability and eligibility for licensing. Proposed law provides that upon request by the commission and upon the commission's electronic submission of an applicant's fingerprints, and such other identifying information as may be required, the La. State Police Bureau of Identification and Information shall conduct a search of its criminal history record information relative to the applicant and report the results of its search to the commission. The bureau may charge the commission a processing fee for conducting and reporting on any such search. Proposed law provides that any criminal history record information obtained by the commission from the La. State Police Bureau of Identification and Information or F.B.I., which is not already a matter of public record, shall be deemed nonpublic and confidential information restricted to the exclusive use of the commission, its members, officers, investigators, agents, and attorneys in evaluating the applicant's eligibility or disqualification for licensing. No such information or records related thereto shall be released or otherwise disclosed by the commission or any other person or agency, except with the written consent of the applicant or by order of a court of competent jurisdiction. Effective upon signature of governor or lapse of time. (Amends R.S. 37:1437(B), (C), (D), and (E); Adds R.S. 37:1437(F), (G), (H), and (I))