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SPONSOR: |
Boitano |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Real Estate Broker Licensure |
SB |
571/aSCORC/aSFl#1 |
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ANALYST: |
Gilbert |
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REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
|
$0.1
See Narrative |
Recurring |
Real
Estate Commission Fund, Real Estate Recovery
Fund |
(Parenthesis
( ) Indicate Revenue Decreases)
Relates to SB 43 Amend Real Estate Licensing,
SB 443 Real Estate Licensee Requirements,
SB 45 Real Estate Broker Responsibilities
SUMMARY
Synopsis
of SFl#1 Amendment
Senate Floor amendment #1 strikes SCORC amends
2, 5, and 6:
Technical corrections
clarifying that requirements for real estate licensure are for “qualifying” brokers;
and
Striking on page 2,
line 4, the addition of the words "or associate broker" after the
word "salesperson".
Amendment 2 restores the qualifications and
educational requirements to those required in the original law.
SFl#1 also amends 61-29-9, qualifications for
license, to add a new subsection (5) as outlined below:
"(5) an applicant for a qualifying broker's license shall have been actively engaged in the real estate business as an associate broker or salesperson for at least two years and furnish the commission a certificate that he has completed successfully a broker basics course approved by the commission.".
Synopsis
of SCORC Amendment
The Senate Corporations and Transportation
Committee amendment to Senate Bill 571 makes a technical correction clarifying
that requirements for real estate licensure are for “qualifying” brokers.
Additionally, SB 571/aSCORC strikes language
from page 1, line 24 and 25 pertaining to nonresident brokers. The statutory
reference stricken from Section 61-29-9(B) NMSA 1978 is outlined below:
61-29-14.
Nonresident brokers. (Repealed
effective July 1, 2006.).
A. An
application for issuance of a license or renewal of an existing license shall
be accepted from a nonresident applicant who is a broker licensed in another
state only if the other state extends the privilege of reciprocal licensure to
licensees in New Mexico. A qualifying nonresident may become a
B. In its discretion, the commission may
recognize, in lieu of the recommendations and certificates required to
accompany an application for a license, the license issued to a nonresident in
another state, provided the other state extends the privilege of licensure to
licensees in
(1) maintains an
active place of business in the state by which he is licensed and meets the licensing
requirements of Section 61-29-10 NMSA 1978; and
(2) files with the commission an irrevocable
consent that suits and actions may be commenced against him in the proper court
of any county of this state in which a cause of action may arise or in which
the plaintiff may reside, by the service of any process or pleadings authorized
by the laws of this state on the commission, the consent stipulating and
agreeing that such service of process or pleadings on the commission is as
valid and binding as if personal service had been made upon the applicant in
New Mexico. The instrument containing the consent shall be acknowledged and, if
executed on behalf of a corporation or association, shall be accompanied by a
certified copy of the resolution of the proper officers or managing board
authorizing the executing officer to execute the instrument. Service of process
or pleadings shall be served in duplicate upon the commission; one shall be
filed in the office of the commission and the other immediately forwarded by
registered mail to the main office of the applicant against which the process
or pleadings are directed.
Synopsis
of Original Bill
Senate Bill 571 amends
real estate licensure requirements and requires applicants for real estate
license to have performed actively as a real estate salesperson for at least
two years. This bill also deletes the
requirement that an applicant must successfully complete 180 hours of instruction
in basic real estate courses approved by the Real Estate Commission.
Significant
Issues
Currently, an applicant must have worked as an
active salesperson for twenty-four months out of the preceding thirty-six
months immediately prior to filing for licensure.
FISCAL IMPLICATIONS
If adopted, this bill may result in additional
revenue due to a larger number of real estate licensure applicants.
ADMINISTRATIVE IMPLICATIONS
The Real Estate Commission may experience an
increase in applicants due to the new qualification requirement (omission of
the required 180 classroom hours).
Applicants, who have completed the two-year requirement outside of the
thirty-six month time frame under current law, may also be inclined to seek
licensure, thus increasing Commission staff workload.