201 KAR 11:230. Continuing education requirements.


      RELATES TO: KRS 324.010(7), (8), 324.046(5), 324.085(1), (2), 324.090, 324.160(1)(c), 324.160(4)(u), 324.281(7)

      STATUTORY AUTHORITY: KRS 324.085(1), 324.160(1)(c), 324.160(4)(u), 324.281(5), (7), (8), 324.282

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 324.085(1) requires an actively-licensed agent, except an agent licensed prior to June 19, 1976, to successfully complete six (6) hours of mandatory continuing education each year as a condition of license renewal and requires that three (3) of the six (6) hours pertain to the study of real estate law. This administrative regulation establishes the requirements relating to continuing education and sets the amount of the fine for failure to comply with the requirements.


      Section 1. Mandatory Continuing Education. (1) An active licensee, licensed by the commission on or after June 19, 1976, shall meet the requirements of KRS 324.085(1) by attending and successfully completing six (6) hours of continuing education courses that are sponsored or approved by the commission by December 31 of each calendar year. An active license shall receive continuing education credit for any approved course taken, if he or she files with the commission a certificate of completion for each course for which credit is sought by December 31 of each calendar year. These courses may be taken in one (1) to six (6) hour increments. An active license shall not be renewed unless the licensee has complied with the provisions of this administrative regulation.

      (2) An active licensee shall attend a commission-approved core course once every four (4) years. The core course shall:

      (a) Satisfy the licensee's mandatory continuing education requirement for the year in which the course is taken; and

      (b) Be a six (6) hour comprehensive review of the requirements of KRS Chapter 324, 201 KAR Chapter 11, common and federal law relating to real estate, and the standards of practice for a real estate licensee.

      (3) When a licensee is first licensed in Kentucky, his or her year of compliance shall be assigned by the commission based upon the following schedule:

      (a) If the licensee's birth month is January, February, or March, the licensee shall take the core course in the first year of a four (4) year cycle.

      (b) If the licensee's birth month is April, May, or June, the licensee shall take the core course in the second year of a four (4) year cycle.

      (c) If the licensee's birth month is July, August, or September, the licensee shall take the core course in the third year of a four (4) year cycle.

      (d) If the licensee's birth month is October, November, or December, the licensee shall take the core course in the fourth year of a four (4) year cycle.

      (4) Continuing education hours exceeding the amount required shall not be carried forward to the next year's requirements or used to reactivate a license in the next calendar year.

      (5) Hours of instruction in prelicense real estate education courses, unless it is the licensee’s year to complete the core course, shall be credited to the mandatory continuing education requirements for the calendar year in which it is taken and completed. The licensee shall submit a transcript or course completion certificate for the prelicense course in order to receive credit toward the continuing education requirements for that calendar year.


      Section 2. Exemptions from the Mandatory Continuing Education Requirement. (1) The provisions of this administrative regulation shall not apply to any person licensed by the commission prior to June 19, 1976.

      (2) A licensee shall not be required to attend a continuing education course during the first calendar year in which he or she is first licensed in Kentucky.

      (3)(a) An escrowed licensee shall not be required to attend continuing education courses while the license remains in escrow.

      (b) Before a license is changed from escrow to active status, a licensee shall provide the commission with documentation of the completion of the current calendar year's continuing education requirements.

      (c) If the licensee has not completed the core course in the previous four (4) years as required, the core course shall become the current calendar year's continuing education requirement for a license changing from escrow to active.


      Section 3. Continuing Education Course Criteria. (1) One (1) hour of continuing education shall be allowed for each fifty (50) minutes of actual attendance.

      (2) To receive approval, courses shall:

      (a) Be in hourly increments from one (1) to six (6) hours;

      (b) Be real estate specific;

      (c) Consist of topics that shall:

      1. Enable the student to better understand the brokerage business; and

      2. Serve the public.

      (3) A course that is motivational or considered to be personal development in nature shall not be approved.

      (4) All course approvals shall expire on December 31 of each calendar year.

      (5) All primary or secondary providers wishing to offer online or other distance education courses, as outlined in 201 KAR 11:240, shall be certified by the Association of Real Estate License Law Officials (ARELLO) or the International Distance Education Certification Center (IDECC) as to format and delivery systems of the program. The commission shall review the content to ensure that it meets the requirements outlined in 201 KAR 11:240.


      Section 4. Continuing Education Course Provider Requirements. (1) An education course shall be sponsored by:

      (a) An accredited institution;

      (b) A school that has been given a certificate of approval by the Kentucky State Board of Proprietary Education;

      (c) An appropriate governmental regulatory body; or

      (d) An approved real estate school as defined in KRS 324.010(7)(b).

      (2) To apply for approval of a continuing education course, a provider shall submit a:

      (a) Completed Continuing Education Provider Application, which shall:

      1. Include a completed Course Outline form, broken into fifteen (15) minute increments, to include learning objectives for the course, teaching methods, auxiliary aids, materials, and the policies of the provider; and

      2. Be signed by the sponsor's administrator to indicate compliance with applicable law and the requirements of this administrative regulation;

      (b) Copy of the Certificate of Approval from the Kentucky State Board for Proprietary Education, or the Kentucky Department of Education, unless the provider is an accredited college or university; or an approved real estate school as defined in KRS 324.010(7).

      (c) Completed Real Estate Instructor Application for each instructor who will teach the course, as required by 201 KAR 11:175; and

      (d) Copy of all advertising or brochures advertising the continuing education course.

      (3) The course provider shall agree that all instructors shall abide by the Generally Accepted Principles of Education as adopted by the Real Estate Educators Association and the commission as the standard for classroom performance and comply with the KREC Guidelines for Classroom Management.

      (4) The commission education director shall submit the information to the commission for approval or rejection of the course at their regularly scheduled meeting.

      (5) A course and instructor that have been previously approved within the calendar year may be conducted by another provider, upon the submission of a short form application and approval by the commission staff.

      (6) A provider shall:

      (a) At least thirty (30) days prior to the scheduling of a continuing education course, submit to the commission a completed Continuing Education Schedule that identifies the course provider, course title and number, instructor, date, time, and location of each class;

      (b) Give to each attendee listed on the roster a completed Continuing Education Completion Certificate;

      (c) Within ten (10) days of a continuing education course, submit to the commission:

      1. A completed Continuing Education Attendance Roster, which shall include the full legal name, residence address, and other identifying information required by the commission, in alphabetical order;

      2. Continuing Education Course Evaluation completed by each attendee listed on the roster; and

      3. A completed CE Course Evaluation Transmittal Form;

      (d) Permit monitoring of the courses and inspection of the records by the commission; and

      (e) Make the course available to all licensed agents, subject only to space limitations.

      (7) The providers’ approval to conduct continuing education courses may be withdrawn by the commission for:

      (a) A violation of the classroom management guidelines;

      (b) Falsification of attendance information submitted to the commission;

      (c) Allowing an instructor to solicit business or sell materials to students in the classroom;

      (d) Failure to provide the commission the required materials in accordance with this administrative regulation; or;

      (e) Conducting courses that were not approved prior to being offered.


      Section 5. Instructor Requirements. (1) A course instructor shall:

      (a) Have adequate education, knowledge and experience in the topic to be presented;

      (b) Have prior teaching experience; and

      (c) Be an "approved instructor" under the requirements established in 201 KAR 11:175.

      (2) A licensee who teaches an approved continuing education course shall be entitled to credit on a hour-for-hour basis. To obtain continuing education credit, the instructor's name shall be added to the attendance roster for the course. However, the instructor shall not receive credit more than once in a calendar year for teaching a specific course.

      (3) An instructor of an approved real estate course shall receive credit toward his or her continuing education requirements. The instructor’s supervisor shall provide the commission with a written notice requesting teaching credit, to include the instructor’s name, name of course, dates the course was conducted, and be signed by the approved school or institution’s authorized representative.


      Section 6. Out-Of-State Continuing Education Requirements. A licensee who attends continuing education in another state may receive approval for continuing education courses completed in another state provided:

      (1) The regulatory jurisdiction where the continuing education course is held accepts courses held in Kentucky for continuing education credit in the jurisdiction;

      (2) The real estate regulatory agency of the state where the course is held approved the course for real estate continuing education credit;

      (3) The course shall be taken and completed during the calendar year for which continuing education credit is sought in Kentucky;

      (4) The course enables the licensee to better understand the real estate brokerage business and meets the content criteria prescribed by the commission;

      (5) The licensee submits proof of completion of the out-of-state course to the Kentucky Real Estate Commission through a Course Completion Certificate issued by the provider, and an Out of State Continuing Education Compliance Form. The documentation shall provide the:

      (a) Name and residence address of the licensee seeking continuing education credit and other identifying information as required by the commission;

      (b) Name and date of the course for which credit is sought;

      (c) Course number if one exists;

      (d) Number of hours completed for which credit is sought;

      (e) Continuing education provider’s name;

      (f) A signature from a representative of the continuing education provider documenting the licensee’s course attendance;

      (g) Regulatory jurisdiction where the course is approved for continuing education credit; and

      (h) An outline of the course for which continuing education credit is sought if the outline is specifically requested by the commission;

      (6) The completion documentation certificate and other forms shall be provided to the commission for review within fourteen (14) days of the licensee’s receipt of the certificate from the approved education provider; and

      (7) If after review of the materials submitted, the commission determines the course does not merit continuing education credit, the commission may deny continuing education credit for the course. The commission shall notify the licensee of this denial and a brief explanation of the reasons for denial.


      Section 7. Compliance and Delinquency. (1) The time requirements established in this administrative regulation may be extended by the commission if:

      (a) A true hardship or other good cause clearly warrants relief; and

      (b) The request for extension and any required documentation, is received in writing on or before February 15 of the calendar year immediately following the year in which continuing education requirements were not fulfilled.

      (2) If a licensee fails to comply with the provisions of this administrative regulation, the executive director or his representative shall notify the licensee as soon as practical on or after January 15 of the next calendar year of the failure to comply. If the licensee fulfilled the continuing education requirements in the previous year, proof of completion shall be forwarded to the commission on or before February 15.

      (3) A license shall not be cancelled for nonfulfillment of the continuing education requirements if the licensee takes one (1) of the following steps by February 15:

      (a) Places his license in escrow; or

      (b) Agrees in writing to a delinquency plan, which includes completion of the delinquent continuing education requirements for the previous calendar year on or before June 15; and

      (c) Submits a $500 fine which shall be assessed against each licensee who fails to complete the continuing education requirements outlined in KRS 324.085(1) by the end of the calendar year.

      (4) A licensee who places his license in escrow under the provisions of this section shall not reactivate his license unless he has:

      (a) First completed the core course or the current year's mandatory continuing education requirements as outlined in Section 2(2) of this administrative regulation; and

      (b) Paid the fees required by KRS 324.287 and under this administrative regulation.

      (5) A licensee who fails to place his license in escrow or file the delinquency plan on or before February 15 immediately following the year in which continuing education requirements were not fulfilled, shall have his license cancelled as of that date and shall not be eligible to renew.

      (6) If a licensee fails to complete the requirements of the delinquency plan:

      (a) The commission shall notify the licensee of the deficiency on or after July 1;

      (b) The deficiency notice shall advise that the licensee may request a hearing for the commission to consider whether the license should be suspended for noncompliance with the delinquency plan;

      (c) Failure to request a hearing shall result in a default order of suspension; and

      (d) Any suspension ordered by the commission for noncompliance with the continuing education delinquency plan shall be for a period of six months.

      (7) If the commission suspends the license as a result of a default order or after hearing, the licensee shall not be allowed to activate his license unless, within ninety (90) days of the expiration of the suspension, the licensee;

      (a) First completes the current year’s continuing education requirements;

      (b) Submits the required documents to reinstate the license; and

      (c) Pays all necessary renewal and transfer fees as required by KRS 324.287.

      (8) If the licensee does not reinstate the license within ninety (90) days following the completion of the suspension period, the license shall be cancelled and the licensee shall meet the requirements for initial licensure, including retaking the examination.


      Section 8. Records Maintenance. (1) Each continuing education provider shall maintain the following records in a file for two (2) years following the end of each calendar year:

      (a) A copy of the roster submitted to the commission of licensees attending the course;

      (b) A copy of the Course Evaluation Transmittal form;

      (c) The sign in sheet or registration list used by the provider to track attendance; and

      (d) Any other documentation regarding student attendance.

      (2) Records containing licensee information shall be destroyed by the provider.


      Section 9. Incorporation by Reference. (1) The following material is incorporated by reference:

      (a) "Continuing Education Provider Application", 09/07 edition;

      (b) "Course Outline", 09/07 edition;

      (c) "Real Estate Instructor Application", 09/07 edition;

      (d) "Continuing Education Schedule", 09/07 edition;

      (e) "Continuing Education Attendance Roster", 09/07 edition;

      (f) "CE Course Evaluation Transmittal Form", 09/07 edition;

      (g) "Continuing Education Course Evaluation", 09/07 edition;

      (h) "Kentucky Continuing Education Completion Certificate", 09/07 edition;

      (i) "Continuing Education Short Form Application", 09/07 edition;

      (j) "KREC Guidelines for Classroom Management", 09/07 edition;

      (k) "Generally Accepted Principles of Education", as adopted by the Real Estate Educators Association and the Kentucky Real Estate Commission, 09/07 edition;

      (l) "Kentucky Core Course Provider Application", 09/07 edition;

      (m) "Kentucky Real Estate Commission Out-of-State Continuing Education Compliance Form", 09/07 edition.

      (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Commission, 10200 Linn Station Road, Suite 201, Louisville, Kentucky 40223, Monday through Friday, 8 a.m. to 4:30 p.m. (17 Ky.R. 2297; Am. 2693; eff. 3-8-91; 18 Ky.R. 2592; eff. 3-25-92; 24 Ky.R. 2752; 25 Ky.R. 297; eff. 8-17-98; 25 Ky.R. 1681; eff. 4-14-99; 27 Ky.R. 1516; 2711; eff. 4-9-2001; 34 Ky.R. 838; 1940; eff. 3-7-2008; 36 Ky.R. 143; eff. 10-2-2009.)