Senate Study Bill 3167 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) A BILL FOR An Act modifying disciplinary provisions applicable to real 1 estate brokers and salespersons. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5960XC (3) 83 rn/nh

S.F. _____ Section 1. Section 543B.15, subsection 5, Code 2009, is 1 amended to read as follows: 2 5. A person who makes a false statement of material fact 3 on an application for a real estate broker’s or salesperson’s 4 license, or who causes to be submitted, or has been a party to 5 preparing or submitting any false application for such license, 6 may be denied a license by the commission on the grounds of the 7 false statement or submission. A licensee found to have made 8 such a statement or who caused to be submitted, or was a party 9 to preparing or submitting any false application for a real 10 estate broker’s or salesperson’s license, may have the license 11 suspended or revoked by the commission on the grounds of the 12 false statement or submission. 13 Sec. 2. Section 543B.15, subsection 6, Code 2009, is amended 14 by striking the subsection. 15 Sec. 3. Section 543B.15, subsection 7, Code 2009, is amended 16 to read as follows: 17 7. The commission, when considering the denial or 18 revocation of a license pursuant to this section, shall 19 consider the nature of the offense; any aggravating or 20 extenuating circumstances which are documented; the time 21 lapsed since the revocation, conduct, or conviction; the 22 rehabilitation, treatment, or restitution performed by the 23 applicant or licensee ; and any other factors the commission 24 deems relevant. Character references may be required but 25 shall not be obtained from licensed real estate brokers or 26 salespersons. 27 Sec. 4. Section 543B.29, subsection 1, Code 2009, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . Ob. Having made a false statement of 30 material fact on an application for a real estate broker’s 31 or salesperson’s license, or having caused to be submitted, 32 or having been a party to preparing or submitting any false 33 application for such license. 34 Sec. 5. Section 543B.29, subsection 1, paragraph e, Code 35 -1- LSB 5960XC (3) 83 rn/nh 1/ 4

S.F. _____ 2009, is amended to read as follows: 1 e. Conviction of an offense included in section 543B.15, 2 subsection 3. For purposes of this section, “conviction” means 3 a conviction for an indictable offense and includes the court’s 4 acceptance of a guilty plea, a deferred judgment from the time 5 of entry of the deferred judgment until the time the defendant 6 is discharged by the court without entry of judgment, or other 7 finding of guilt by a court of competent jurisdiction. A copy 8 of the record of conviction, guilty plea, deferred judgment, or 9 other finding of guilt is conclusive evidence. 10 (1) A licensed real estate broker or salesperson shall 11 notify the commission of the licensee’s conviction of an 12 offense included in section 543B.15, subsection 3, paragraph 13 “a” , within ten days of the conviction. Notification of a 14 conviction for an offense which is classified as a felony shall 15 result in the immediate suspension of a license pending the 16 outcome of a hearing conducted pursuant to section 543B.35 to 17 determine the nature of the disciplinary action, if any, the 18 commission will impose on the licensee. The hearing shall be 19 conducted within thirty days of the licensee’s notification to 20 the commission, and the commission’s decision shall be provided 21 to the licensee no later than thirty days following the 22 hearing. The failure of the licensee to notify the commission 23 of the conviction within ten days of the date of the conviction 24 is sufficient grounds for revocation of the license. 25 (2) The commission, when considering the revocation or 26 suspension of a license pursuant to paragraph “e” , shall 27 consider the nature of the offense; any aggravating or 28 extenuating circumstances which are documented; the time lapsed 29 since the conduct or conviction; the rehabilitation, treatment, 30 or restitution performed by the licensee; and any other factors 31 the commission deems relevant. Character references may be 32 required but shall not be obtained from licensed real estate 33 brokers or salespersons. 34 -2- LSB 5960XC (3) 83 rn/nh 2/ 4

S.F. _____ EXPLANATION 1 This bill modifies disciplinary provisions applicable 2 to real estate brokers and salespersons licensed under 3 Code chapter 543B, making adjustments intended to clarify 4 the distinction between provisions relating to suspension 5 or revocation in the Code chapter, and those relating to 6 qualification for initial licensure. 7 The bill removes a provision from Code section 543B.15, 8 which relates to qualifications for issuance of a license, 9 subjecting a licensee to possible suspension or revocation 10 if the licensee is found to have made a false statement of 11 material fact on an application, or caused to be submitted or 12 was a party to preparing or submitting any false application. 13 The provision is reinserted within Code section 543B.29, 14 subsection 1, dealing with revocation or suspension of a 15 license. 16 The bill also removes a provision requiring a licensee 17 to notify the real estate commission of the conviction of 18 specified offenses from Code section 543B.15, and reinserts 19 it as a new subparagraph in Code section 543B.29, subsection 20 1, paragraph “e”, which deals with license revocation or 21 suspension upon conviction of specified offenses. Provisions 22 imposing time frames for the conducting of a hearing after 23 the notification, and providing notice of the outcome of the 24 hearing to the licensee, are added. 25 The bill also reproduces within Code section 543B.29, 26 subsection 1, paragraph “e”, another qualification-related 27 provision currently contained in Code section 543B.15, relating 28 to factors to be considered by the commission in considering 29 suspension or revocation of a license. The current provision 30 in Code section 543B.15 is modified such that it deals strictly 31 with factors to be considered by the commission in considering 32 whether to deny a license. 33 The bill additionally clarifies that when a license may 34 be revoked or suspended based upon conviction of an offense, 35 -3- LSB 5960XC (3) 83 rn/nh 3/ 4

S.F. _____ the current qualification of a guilty plea as a “conviction” 1 actually refers to acceptance of such a plea by the court. 2 -4- LSB 5960XC (3) 83 rn/nh 4/ 4