House File 448
HOUSE FILE
BY COMMITTEE ON COMMERCE,
REGULATION AND LABOR
(SUCCESSOR TO HSB 31)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the real estate commission and provisions
2 applicable to a licensed real estate broker and making
3 criminal penalties applicable.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 543B.3, Code 2003, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 10. Auctions real property.
1 4 Sec. 2. Section 543B.7, subsection 1, Code 2003, is
1 5 amended to read as follows:
1 6 1. A person who, as owner, spouse of an owner, general
1 7 partner of a limited partnership, or lessor, or prospective
1 8 purchaser, or through another engaged by such person on a
1 9 regular full=time basis, buys, sells, manages, or otherwise
1 10 performs any act with reference to property owned, rented,
1 11 leased, or to be acquired by such person.
1 12 Sec. 3. Section 543B.7, subsection 5, Code 2003, is
1 13 amended by striking the subsection.
1 14 Sec. 4. Section 543B.8, unnumbered paragraph 1, Code 2003,
1 15 is amended to read as follows:
1 16 A real estate commission is created within the professional
1 17 licensing and regulation division of the department of
1 18 commerce. The commission consists of three four members
1 19 licensed under this chapter and two members one member not
1 20 licensed under this chapter and who shall represent the
1 21 general public. At least one of the licensed members shall be
1 22 a licensed real estate salesperson, except that if the
1 23 licensed real estate salesperson becomes a licensed real
1 24 estate broker during a term of office, that person may
1 25 complete the term, but is not eligible for reappointment on
1 26 the commission as a licensed real estate salesperson. A
1 27 licensed member shall be actively engaged in the real estate
1 28 business and shall have been so engaged for five years
1 29 preceding the appointment, the last two of which shall have
1 30 been in Iowa. Professional associations or societies of real
1 31 estate brokers or real estate salespersons may recommend the
1 32 names of potential commission members to the governor.
1 33 However, the governor is not bound by their recommendations.
1 34 A commission member shall not be required to be a member of
1 35 any professional association or society composed of real
2 1 estate brokers or salespersons. Commission members shall be
2 2 appointed by the governor subject to confirmation by the
2 3 senate. Appointments shall be for three=year terms and shall
2 4 commence and end as provided in section 69.19. A member shall
2 5 serve no more than three terms or nine years, whichever is
2 6 less. No more than one member shall be appointed from a
2 7 county. A commission member shall not hold any other elective
2 8 or appointive state or federal office. Vacancies shall be
2 9 filled for the unexpired term by appointment of the governor
2 10 and are subject to senate confirmation. A majority of the
2 11 commission members constitutes a quorum. The administrator of
2 12 the professional licensing and regulation division shall hire
2 13 and provide staff to assist the commission with implementing
2 14 this chapter.
2 15 Sec. 5. NEW SECTION. 543B.49 INJUNCTIVE RELIEF.
2 16 In addition to the penalty and complaint provisions of
2 17 sections 543B.43, 543B.44, and 543B.48, an injunction may be
2 18 granted through an action in district court to prohibit a
2 19 person from engaging in an activity which violates the
2 20 provisions of section 543B.1. The action for injunctive
2 21 relief may be brought by an affected person. For the purposes
2 22 of this section, "affected person" means any person directly
2 23 impacted by the actions of a person suspected of violating the
2 24 provisions of section 543B.1, including but not limited to the
2 25 commission created by this chapter, a person who has utilized
2 26 the services of a person suspected of violating the provisions
2 27 of section 543B.1, or a private association composed primarily
2 28 of members practicing a profession for which licensure is
2 29 required pursuant to this chapter.
2 30 EXPLANATION
2 31 This bill provides that conducting an auction of real
2 32 property shall be included within the definition of a real
2 33 estate broker, and deletes a provision that had previously
2 34 excluded specified auctioneer activities from the licensure
2 35 provisions.
3 1 The bill deletes the status of prospective purchaser from
3 2 the list of persons who qualify for an exception to the
3 3 licensure provisions if they act either directly or through
3 4 another individual engaged by the person to buy, sell, manage,
3 5 or otherwise perform any act with reference to property owned,
3 6 rented, leased, or to be acquired by them.
3 7 The bill provides that the membership of the real estate
3 8 commission established within the professional licensing and
3 9 regulation division of the department of commerce shall be
3 10 modified from three members licensed pursuant to Code chapter
3 11 543B and two members of the general public, to four licensed
3 12 members and one member of the general public.
3 13 The bill provides that in addition to existing penalty and
3 14 complaint provisions, an injunction may be granted through an
3 15 action in district court to prohibit a person from engaging in
3 16 an activity which violates the provisions of Code section
3 17 543B.1. That section provides that a person shall not,
3 18 directly or indirectly, with the intention or upon the promise
3 19 of receiving any valuable consideration, offer, attempt, agree
3 20 to perform, or perform any single act as a real estate broker
3 21 whether as a part of a transaction or as an entire
3 22 transaction, or represent oneself as a real estate broker,
3 23 broker associate, or salesperson, without first obtaining a
3 24 license and otherwise complying with the requirements of Code
3 25 chapter 543B. The bill provides that the action for
3 26 injunctive relief may be brought by an affected person, which
3 27 the bill defines to mean any person directly impacted by the
3 28 actions of a person suspected of violating the provisions of
3 29 Code section 543B.1, including but not limited to the real
3 30 estate commission, a person who has utilized the services of a
3 31 person suspected of violating the provisions of Code section
3 32 543B.1, or a private association composed primarily of members
3 33 practicing a profession for which licensure pursuant to Code
3 34 chapter 543B is required.
3 35 LSB 1532HV 80
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