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: 5 TLSB 1532HV 80 6 rn/cl/14 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 ofthreefour members 1 19 licensed under this chapter andtwo membersone 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 4 1 rn/cl/14