01/02/08 2579s

2008 SESSION

07-1200

10/01

SENATE BILL 142

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill makes various changes to the requirements for real estate brokers and salespersons as regulated by the real estate commission.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01/02/08 2579s

07-1200

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

Be it Enacted by the Senate and House of Representatives in General Court convened:

34:1 Real Estate Practice Act; Criminal Records Check. Amend RSA 331-A:10-a, I to read as follows:

I. All applicants for a new salesperson or broker license shall submit to the New Hampshire department of safety, division of state police, a notarized criminal record release authorization form, along with the appropriate fee, prior to submitting an application for a real estate license. In addition, the applicant shall submit to the commission a criminal record report from any other jurisdiction in which the applicant has been convicted of a misdemeanor or felony offense.

34:2 Qualifications for Licensure. Amend RSA 331-A:10, II(c)(1) to read as follows:

(c)(1) Has been employed full time by an active principal broker for at least one year [in this state] within 5 years of the date of application; or

34:3 Supervision; Branch Offices. Amend RSA 331-A:16, I to read as follows:

I. Every real estate office or real estate branch office, whether operated as a corporation, partnership or sole proprietorship, shall be directed, supervised and managed by a licensed real estate broker. The principal broker shall submit to the commission a branch office [registration] application form prior to the opening of any branch office. The principal broker shall designate a managing broker for each branch office the principal broker opens. The principal broker shall notify the commission when any licensee associated with the principal broker transfers from one branch office to another branch office within the same association.

34:4 Supervision of Real Estate Offices; Branch Offices. Amend RSA 331-A:16, IV to read as follows:

IV.(a) All advertisements by [an associate] a broker or salesperson shall include the [associate] broker's or salesperson's legal name or reasonable derivative thereof and the regular business name of the firm or the principal broker's name when licensed under an individual principal broker license. The firm or principal broker's name, within the advertisement, shall be clearly identifiable. This requirement shall apply to all categories of advertising including all publications, radio or television broadcasts, all electronic media including electronic mail and the Internet, business stationery, business and legal forms and documents, and signs and billboards.

(b) Any advertising which contains a home telephone number, cell-phone number, beeper or pager number, home fax number, or electronic mail address of an individual salesperson or [associate] broker, or a team of such licensees, shall also include the name and telephone number of the [employing] individual principal broker or brokerage firm through which the advertising licensees operate. All such advertising shall contain language clearly identifying each number included in the advertising.

34:5 License Amendments; Trade Name. Amend RSA 331-A:17, II to read as follows:

II. A real estate principal broker who proposes to use a registered trade name in connection with a [business principal] firm broker license or [the] individual principal broker license shall state that fact on an amendment form, and submit the form along with the appropriate fee, the [business] firm broker license or individual principal broker license to be amended, and a trade name registration form. The [business] firm broker license or individual principal broker license shall be amended to include the trade name.

34:6 License Amendments; Terminations. Amend RSA 331-A:17, IV to read as follows:

IV. The license of a real estate salesperson or associate broker shall be retained at all times by the principal broker and whenever a licensed salesperson or associate broker changes his or her affiliation from one licensed principal broker to another or ceases to represent the principal broker, the principal broker shall notify the commission in writing of the termination. Such notice shall be accompanied by the salesperson’s or associate broker’s license. Failure of any principal broker to notify the commission of such salesperson’s or associate broker’s termination within [10] 5 days after the termination of the salesperson or associate broker shall be grounds to discipline the principal broker.

34:7 Denial of Reciprocity. Amend RSA 331-A:23 to read as follows:

331-A:23 Denial of Reciprocity. No [nonresident] broker or salesperson applicant whose license as a broker or salesperson is under revocation or suspension in another state shall be granted a license as a broker or salesperson in this state; and, if already granted a [nonresident] license through reciprocity, it may be revoked or suspended as provided under this chapter upon proof of the other state’s action.

34:8 Rulemaking; Continuing Education. Amend RSA 331-A:25, IX to read as follows:

IX. A minimum of a 3-hour core course of continuing education for active and inactive license renewal, and an additional [6] 9 elective hours of continuing education for active license renewals.

34:9 Prohibited Conduct. Amend RSA 331-A:26, I to read as follows:

I. Obtaining or attempting to obtain a license by means of fraud, misrepresentation, or concealment.

34:10 Prohibited Conduct. Amend RSA 331-A:26, X to read as follows:

X. [Advertising in any manner without stating the broker's legal name as licensed or reasonable derivative thereof, and] In the case of a salesperson or [associate] broker, advertising in any manner without stating the name of the individual principal broker when licensed under an individual principal broker license or business name as licensed for whom or under whom the salesperson or [associate] broker operates.

34:11 Effective Date. This act shall take effect 60 days after its passage.

Approved: May 12, 2008

Effective Date: July 11, 2008