Senate File 442 - Introduced SENATE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1175) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to qualifications for licensure as a real estate 2 broker or salesperson upon conviction of specified offenses. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2157SV 82 5 rn/es/88 PAG LIN 1 1 Section 1. Section 543B.15, subsection 3, Code 2007, is 1 2 amended by striking the subsection and inserting in lieu 1 3 thereof the following: 1 4 3. a. An applicant for a real estate broker's or 1 5 salesperson's license who has been convicted of an indictable 1 6 offense shall not be considered for licensure until the 1 7 following time periods have elapsed following completion of 1 8 any applicable period of incarceration, or payment of a fine 1 9 or fulfillment of any other type of sentence: 1 10 (1) For an offense which is classified as a serious or 1 11 aggravated misdemeanor, one year. 1 12 (2) For an offense which is classified as a felony, two 1 13 years. 1 14 (3) Notwithstanding subparagraphs (1) and (2), for 1 15 offenses including or involving forgery, embezzlement, 1 16 obtaining money under false pretenses, theft, arson, 1 17 extortion, conspiracy to defraud, or other offense involving a 1 18 criminal breach of fiduciary duty, five years. 1 19 b. After expiration of the time periods specified in 1 20 paragraph "a", an application shall be considered by the 1 21 commission pursuant to subsection 7 and may be denied on the 1 22 grounds of the conviction. An applicant may request a hearing 1 23 pursuant to section 543B.19 in the event of a denial. 1 24 c. For purposes of this section, "convicted" means a 1 25 guilty plea, deferred judgment from the time of entry of the 1 26 deferred judgment until the time the defendant is discharged 1 27 by the court without entry of judgment, or other finding of 1 28 guilt by a court of competent jurisdiction in this state, or 1 29 in any other state, territory, or district of the United 1 30 States, or in any foreign jurisdiction. 1 31 Sec. 2. Section 543B.15, subsection 6, Code 2007, is 1 32 amended to read as follows: 1 33 6. A licensed real estate broker or salesperson shall 1 34 notify the commission of the licensee's conviction of an 1 35 offense included in subsection 3 withinsixtyten days of the 2 1 conviction. Notification of a conviction for an offense which 2 2 is classified as a felony shall result in the immediate 2 3 suspension of a license pending the outcome of a hearing 2 4 conducted pursuant to section 543B.35. The failure of the 2 5 licensee to notify the commission of the conviction within 2 6sixtyten days of the date of the conviction is sufficient 2 7 grounds for revocation of the license. 2 8 EXPLANATION 2 9 This bill relates to action taken by the real estate 2 10 commission in circumstances where an applicant for licensure, 2 11 or an existing licensee, has been convicted of specified 2 12 criminal offenses. 2 13 The bill provides that an applicant for a real estate 2 14 broker's or salesperson's license who has been convicted of an 2 15 indictable offense shall not be considered for licensure until 2 16 specified time periods have elapsed following completion of a 2 17 sentence. The bill defines "convicted" to refer to a guilty 2 18 plea, deferred judgment, or other finding of guilt. The time 2 19 periods are one year for a serious or aggravated misdemeanor, 2 20 two years for a felony, and five years for offenses which 2 21 include or involve forgery, embezzlement, obtaining money 2 22 under false pretenses, theft, arson, extortion, conspiracy to 2 23 defraud, or other criminal breach of fiduciary duty. The bill 2 24 provides that after these time periods have elapsed, the 2 25 commission shall consider an application and may deny it based 2 26 on the conviction. If denied, an applicant may request a 2 27 hearing pursuant to Code section 543B.19. 2 28 With regard to existing licensees, the bill modifies Code 2 29 section 543B.15 to require that a licensee notify the 2 30 commission of a conviction of any of the above=specified 2 31 offenses within 10 days of the conviction. That Code section 2 32 currently provides for a 60=day notification period. The bill 2 33 provides that notification of a conviction for an offense 2 34 which is classified as a felony will result in the immediate 2 35 suspension of a license pending the outcome of a revocation 3 1 hearing conducted pursuant to Code section 543B.35. 3 2 LSB 2157SV 82 3 3 rn:nh/es/88