SSB 3167 (LSB 5960XC (3) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT)

A BILL FOR

An Act modifying disciplinary provisions applicable to real estate brokers and salespersons.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 543B.15, subsection 5, Code 2009, is amended to read as follows:
   5.  A person who makes a false statement of material fact on an application for a real estate broker’s or salesperson’s license, or who causes to be submitted, or has been a party to preparing or submitting any false application for such license, may be denied a license by the commission on the grounds of the false statement or submission. A licensee found to have made such a statement or who caused to be submitted, or was a party to preparing or submitting any false application for a real estate broker’s or salesperson’s license, may have the license suspended or revoked by the commission on the grounds of the false statement or submission.
    Sec. 2.  Section 543B.15, subsection 6, Code 2009, is amended by striking the subsection.
    Sec. 3.  Section 543B.15, subsection 7, Code 2009, is amended to read as follows:
   7.  The commission, when considering the denial or revocation of a license pursuant to this section, shall consider the nature of the offense; any aggravating or extenuating circumstances which are documented; the time lapsed since the revocation, conduct, or conviction; the rehabilitation, treatment, or restitution performed by the applicant or licensee; and any other factors the commission deems relevant. Character references may be required but shall not be obtained from licensed real estate brokers or salespersons.
    Sec. 4.  Section 543B.29, subsection 1, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  Ob.  Having made a false statement of material fact on an application for a real estate broker’s or salesperson’s license, or having caused to be submitted, or having been a party to preparing or submitting any false application for such license.
    Sec. 5.  Section 543B.29, subsection 1, paragraph e, Code 2009, is amended to read as follows:
   e.  Conviction of an offense included in section 543B.15, subsection 3. For purposes of this section, “conviction” means a conviction for an indictable offense and includes the court’s acceptance of a guilty plea, a deferred judgment from the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment, or other finding of guilt by a court of competent jurisdiction. A copy of the record of conviction, guilty plea, deferred judgment, or other finding of guilt is conclusive evidence.
   (1)  A licensed real estate broker or salesperson shall notify the commission of the licensee’s conviction of an offense included in section 543B.15, subsection 3, paragraph “a”, within ten days of the conviction. Notification of a conviction for an offense which is classified as a felony shall result in the immediate suspension of a license pending the outcome of a hearing conducted pursuant to section 543B.35 to determine the nature of the disciplinary action, if any, the commission will impose on the licensee. The hearing shall be conducted within thirty days of the licensee’s notification to the commission, and the commission’s decision shall be provided to the licensee no later than thirty days following the hearing. The failure of the licensee to notify the commission of the conviction within ten days of the date of the conviction is sufficient grounds for revocation of the license.
   (2)  The commission, when considering the revocation or suspension of a license pursuant to paragraph “e”, shall consider the nature of the offense; any aggravating or extenuating circumstances which are documented; the time lapsed since the conduct or conviction; the rehabilitation, treatment, or restitution performed by the licensee; and any other factors the commission deems relevant. Character references may be required but shall not be obtained from licensed real estate brokers or salespersons.
EXPLANATION
   This bill modifies disciplinary provisions applicable to real estate brokers and salespersons licensed under Code chapter 543B, making adjustments intended to clarify the distinction between provisions relating to suspension or revocation in the Code chapter, and those relating to qualification for initial licensure.
   The bill removes a provision from Code section 543B.15, which relates to qualifications for issuance of a license, subjecting a licensee to possible suspension or revocation if the licensee is found to have made a false statement of material fact on an application, or caused to be submitted or was a party to preparing or submitting any false application. The provision is reinserted within Code section 543B.29, subsection 1, dealing with revocation or suspension of a license.
   The bill also removes a provision requiring a licensee to notify the real estate commission of the conviction of specified offenses from Code section 543B.15, and reinserts it as a new subparagraph in Code section 543B.29, subsection 1, paragraph “e”, which deals with license revocation or suspension upon conviction of specified offenses. Provisions imposing time frames for the conducting of a hearing after the notification, and providing notice of the outcome of the hearing to the licensee, are added.
   The bill also reproduces within Code section 543B.29, subsection 1, paragraph “e”, another qualification-related provision currently contained in Code section 543B.15, relating to factors to be considered by the commission in considering suspension or revocation of a license. The current provision in Code section 543B.15 is modified such that it deals strictly with factors to be considered by the commission in considering whether to deny a license.
   The bill additionally clarifies that when a license may be revoked or suspended based upon conviction of an offense, the current qualification of a guilty plea as a “conviction” actually refers to acceptance of such a plea by the court.