00RS HB677


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HB 677 (BR 1563) - J. Haydon, R. Crimm, D. Horlander, F. Nesler, C. Walton, M. Weaver

     AN ACT relating to real estate brokerage.
     Create new sections of KRS Chapter 324 to require specific coursework and number of classroom hours for continuing education; create instructor minimum rating requirement; create a new section to define and prohibit "after-the fact" referral fees in regard to relocation companies; amend several sections of KRS Chapter 324 to include a criminal records check for licensing applicants, set a fee cap of $100 for examination; increase broker experience requirement from 2 years to 3 years, add an educational requirement for a broker management skills course prior to licensing, allow a person with an educational minor in real estate to reduce the experience requirement by 1 year; for seller's disclosure form, make single-family residential dwellings applicable, add specific delivery times of disclosure form for listed and nonlisted properties, add that any licensee involved in single-family residential dwelling sale shall be required to adhere to seller disclosure form requirements; for designated agencies, add that if utilized, the principal broker is a limited dual agent, require knowledge and consent of the consumer with the designated agency; allow principal brokers, in limited situations, while closing his office, to affiliate with another principal broker; increase disciplinary fine to a cap of $2,500; increase disciplinary probation to 3 years, include an informal reprimand as a disciplinary action, add authority to discipline upon misdemeanor involving moral turpitude, add requirement of staff review of all complaints prior to requiring an answer from the licensee; remove grandfather provisions for licensing.


     HCS - Retain original provisions except exempt persons licensed by grandfathering prior to 1976 from the new continuing education requirements; change the definition of accredited institution to include colleges and universities that have course toward a program for graduate or professional degrees as well as associate and baccalaureate degrees; add a provision for nonlicensed persons under the supervision of a broker to make appointments for the broker for the buying and selling of property; restore the original language for grandfathering in persons licensed prior to June 10, 1976; change the amount of fine that the board can levy to an amount not to exceed $1,000; change the period of time that the board can place a licensee on to 12 months; change the language of "moral turpitude" to "sexual misconduct" in the section dealing with violations; allow the board the authority to develop a process for review of courses for continuing education that are not previously approved; allow the licensee to complete the "seller's disclosure of conditions" form only if requested in writing on the form by the client; make technical correction.
     SCS - Retain original provisions except, remove the requirement that persons licensed prior to 1976 do have to have continuously maintained an active license to be exempt from continuing education requirement changes; require that brokers engaging in property management have the option of either maintaining those accounts separately from all others or specifically indicating in all escrow records if those funds are property management funds; remove the requirement that brokers or associates shall not affiliate with more than one principal broker.
     SFA (1, M. Long) - Add a new section to KRS Chapter 324 to permit non-attorneys to perform real estate closings.
     SFA (2, W. Blevins) - Amend to allow the commission to reduce the three year experience requirement for applicants for a brokers license to one year and six months for those applicants that have a baccalaureate degree with a major or minor in real estate.
     CCR - The Conference Committee agrees to disagree and requests a Free Conference Committee be appointed.
     FCCR (Majority Report) - Retain the provisions of Senate Committee Substitute with the following changes: remove builders from the exemptions to KRS 324.020(1) and (2) ; allow nonlicensed persons supervised by a licensee to give out general information to the public and to make appointments for licensees; require an applicant for broker licensing to be engaged as an associate for twenty four (24) months prior to licensing; require applicants to have two (2) years experience prior to licensing; allow the commission to reduce the requirement to one year in some circumstances for applicants with appropriate educational requirements; restore the current language in KRS 324.112 (1), (2), and (3); restore the current language in KRS 324.117(4) and remove the word "broker" to accompany the principal broker's name on advertising materials; require that persons appointed to the Kentucky Real Estate Commission after the effective date of the Act serve no more than two (2) full consecutive terms; remove the provisions of SFA-2 to HB677/SCS

     Feb 14-introduced in House
     Feb 15-to Licensing and Occupations (H)
     Feb 17-posted in committee
     Mar 1-reported favorably, 1st reading, to Calendar with Committee Substitute
     Mar 2-2nd reading, to Rules
     Mar 7-posted for passage in the Regular Orders of the Day for Wednesday, March 8, 2000
     Mar 8-3rd reading, passed 95-0 with Committee Substitute
     Mar 9-received in Senate
     Mar 13-to State and Local Government (S)
     Mar 20-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
     Mar 21-2nd reading, to Rules; floor amendment (1) filed
     Mar 22-moved from Consent; posted for passage in the Regular Orders of the Day for Friday, March 24, 2000; floor amendment (2) filed to Committee Substitute
     Mar 23-floor amendment (1) withdrawn
     Mar 24-3rd reading, passed 33-0 with Committee Substitute, floor amendment (2)
     Mar 27-received in House; posted for passage for concurrence in Senate Committee Substitute, floor amendment (2)
     Mar 28-House refused to concur in Senate Committee Substitute, floor amendment (2)
     Mar 29-received in Senate; posted for passage for receding from Senate Committee Substitute, floor amendment (2) ; Senate refused to recede from Committee Substitute, floor amendment (2) ; Conference Committee appointed in House and Senate; Conference Committee report filed in House and Senate; Conference Committee report adopted in House and Senate; Free Conference Committee appointed in House and Senate; Free Conference Committee report filed in House and Senate; Free Conference Committee report adopted in Senate; passed 35-0
     Apr 11-received in House; Free Conference Committee report adopted in House; passed 94-2; enrolled, signed by each presiding officer, delivered to Governor
     Apr 21-signed by Governor (Acts ch. 488)

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