HB 254 (BR 364) - R. Rand, S. Santoro, A. Webb-Edgington
AN ACT relating to real estate brokerage.
Amend KRS 324.045 to make applicants for licensure as a real estate broker subject to a national criminal history check involving the National Crime Information Center; require applicants to complete the check within 90 calendar days prior to the application, pay the cost of the check, and release the results to the commission; amend KRS 324.111, 324.151, and 324.170 to allow the commission to conduct emergency procedures when a licensee is alleged to have committed an escrow account violation; direct maintenance of broker escrow accounts in banks that have agreed to notify the commission in writing in the normal course of business if an overdraft occurs in the account for any reason other than service charged instituted by the bank; amend KRS 324.117 to clarify that a sales associate may have his or her name in the firm name after two years of experience with the firm; amend KRS 324.150 to allow the commission to conduct an emergency hearing in accordance with KRS Chapter 13B when a licensee is alleged to have committed an escrow account violation; require the commission to promulgate administrative regulations to describe when emergency action is justified; amend KRS 324.160 to; remove the prohibition on offering prizes for the purpose of influencing a purchaser or prospective purchaser of real estate; amend KRS 324.165 to conform; amend KRS 324.287 to permit the commission to charge fees not to exceed $30 for educational program accreditation and for certification as an approved instructor under certain circumstances, and to charge fees not to exceed $100 for timeshare registrations, criminal record checks, and returned or dishonored checks; amend KRS 324.310 and 324.312 to direct a principal broker to return an associate's license to the commission immediately upon the written termination of the association between the broker and the associate, or at any time upon the commission's request; declare that if a principal broker fails to return the license to the commission within five business days, the license is considered released and the principal broker is deemed in violation of the prohibition against conduct that constitutes improper, fraudulent, or dishonest dealing; amend KRS 324.420 to deny compensation from the real estate education, research, and recovery fund to any aggrieved party, unless the compensation is for actual financial harm suffered by the aggrieved party, and this financial harm is specifically and directly related to the property; amend KRS 324.010 to define the term "managing broker"; amend KRS 324.121 to allow either a principal broker or a managing broker to be deemed a dual agent in a designated agency situation; amend KRS 324.141 to remove the need for reciprocity agreements with other states by creating uniform licensure criteria for all applicants who are already licensed in another jurisdiction.
HB 254 - AMENDMENTS
HFA (1, R. Rand) - Retain original provisions, except remove requirement that real estate broker escrow accounts be kept in banks that have agreed to report escrow account overdrafts to the commission; place escrow account overdraft reporting burden on principal brokers; exempt situations resolved within 24 hours from the overdraft reporting mandate; reduce the maximum criminal record check fee the commission may charge from $100 to $50; restructure the dishonored check fee from a flat fee of up to $100 into a fee equaling all bank charges incurred by the commission plus $25; delete system of uniform licensure criteria for all applicants who are already licensed in another jurisdiction, which would have removed the need for reciprocity agreements with other states.
Jan 10-introduced in House
Jan 15-to Licensing & Occupations (H)
Jan 17-posted in committee
Jan 23-reported favorably, 1st reading, to Calendar
Jan 24-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Friday, January 25, 2008
Feb 26-floor amendment (1) filed
Feb 28-3rd reading, passed 93-0 with floor amendment (1)
Feb 29-received in Senate
Mar 4-to Licensing, Occupations and Administrative Regulations (S)