No. 27338 (Amendment): R162-8. Prelicensing Education

DAR File No.: 27338
Filed: 08/06/2004, 03:58
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The division proposes to change the real estate prelicensing education certification to a two-year certification. Currently all real estate prelicensing school certifications expire on December 31 of the year in which they are issued, and instructor certifications expire on December 31 of the first full year following issuance.

 

Summary of the rule or change:

All certifications of real estate prelicensing schools and instructors will be valid for 24 months after issuance. The current one-year certification fees will be doubled so that the fee per year is the same.

 

State statutory or constitutional authorization for this rule:

Subsection Section 61-2-5.5(1)(a)

 

Anticipated cost or savings to:

the state budget:

None--The period for which real estate prelicensing education schools and instructors are certified has no impact on the State budget, except that there will be a slight savings realized by the Division of Real Estate because it will be required to recertify prelicensing schools and instructors only every two years instead of every year.

 

local governments:

None--The period for which real estate prelicensing schools and instructors are certified has no impact on local government.

 

other persons:

There will be no cost or savings to any other persons because of a change from a one-year to a two-year prelicensing education certification, except for the possible impact on the prelicensing schools and instructors. The schools may realize a savings because: 1) previously a school paid for a whole calendar year regardless of when in the year they applied for certification; and 2) there may be a slight savings realized by a school because it will only have to go through the process of recertifying every two years instead of every year. The course instructors may realize that same savings because they will only have to recertify once every two years instead of every year. There may be an increased cost to some instructor applicants on their initial certification because previously they paid for a one-year certification and received one full calendar year plus an additional period for free (the balance of the year in which they applied). Now they will pay for two years and receive two years of certification. However, this possible increased cost on initial certification should be offset in the long run by the savings in time from only having to go through the recertification process once every two years instead of every year.

 

Compliance costs for affected persons:

There may be an increased cost to some instructor applicants on their initial certification because previously they paid for a one-year certification and received one full calendar year plus an additional period for free (the balance of the year in which they applied). Now they will pay for two years and receive two years of certification. However, this possible increased cost on initial certification should be offset in the long run by the savings in time from only having to go through the recertification process once every two years instead of every year.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

No fiscal impact to businesses is anticipated as a result of this rule filing, which changes the certification period for education programs from one-year terms to two-year terms.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/01/2004

 

This rule may become effective on:

10/02/2004

 

Authorized by:

Dexter Bell, Director

 

 

RULE TEXT

R162. Commerce, Real Estate.

R162-8. Prelicensing Education.

R162-8-4. School Certification.

8.4 When a school has met all conditions of certification, and upon approval by the Division, a school will be issued certification. Until January 1, 2005, all certifications will be issued by the calendar year and will expire on December 31. Beginning on January 1, 2005, school certifications will be issued for a two-year period and will expire twenty-four months from the date of issuance. [All certifications expire December 31 of each year.]School certifications may be renewed by submitting a properly completed application for renewal prior to the expiration of the school's current certification, using the form required by the Division. Until January 1, 2005, the term of a renewed school certification shall be one calendar year. Beginning on January 1, 2005, the term of a renewed school certification shall be twenty-four months. Conditions of certification include the following:

8.4.1 A school shall teach the approved course of study as outlined in the State Approved Course Outline.

8.4.2 A school shall require each student to attend the required number of hours and pass a final examination. A school shall maintain a record of each student's attendance for a minimum of five years after enrollment.

8.4.3 A school shall not accept a student for a reduced number of hours without first having a written statement from the Division which defines the exact number of hours the student needs.

8.4.4 A school shall not make any misrepresentation in its advertising about any course of instruction, and shall be able to provide substantiation of any claims made. All advertising and public notices shall be free of statements or implications which do not enhance the dignity and integrity of the real estate profession. A school shall not make disparaging remarks about a competitor's services or methods of operation.

8.4.5 A school shall limit approved guest lecturers who are experts in related fields to a total of 20% of the instructional hours per approved course. A guest lecturer shall provide evidence of professional qualifications to the Division prior to being used as a guest lecturer.

8.4.6 Within 15 calendar days after the occurrence of any material change in the school which would affect its approval, the school shall give the Division written notice of that change.

8.4.7 A school shall not attempt by any means to obtain or use the questions on the prelicensing examinations unless the questions have been dropped from the current exam bank.

8.4.8 A school shall not give any valuable consideration to a real estate brokerage for having referred students to the school. A school shall not accept valuable consideration from a brokerage for having referred students to the brokerage.

8.4.8.1 If the school agrees, real estate brokerages may be allowed to solicit for agents at the school. No solicitation may be made during the class time nor during the student break time. Solicitation may be made only after the regularly scheduled class so that no student will be obligated to stay for the solicitation.

8.4.9. A school shall use only certified instructors or guest lecturers who have been registered with the Division.

8.4.10 A school's owners and director shall be solely responsible for the quality of instruction in the school and for adherence to the state laws and regulations regarding school and instructor certification.

8.4.10.1 A school director shall provide the instructor with the approved content outline for each course and shall assure the content has been taught.

 

R162-8-7. Instructor Certification Renewal.

8.7 Upon approval by the Division, an instructor applicant will be issued certification. All original instructor certifications expire twenty-four months after issuance.[the following December 31 of the first full year following certification.]

8.7.1 Instructor certifications may be renewed by submitting a properly completed application for renewal prior to the expiration date of the instructor's current certification, using the form required by the Division. Renewed instructor [Subsequent ]certifications will be issued for a twenty-four month period[expire two years later on December 31]. Conditions of renewal of certification include providing proof of the following:

8.7.1.1 Must have taught at least 20 hours of in-class instruction in a certified real estate course during the preceding two years;

8.7.1.2 Must have attended a real estate instructor development workshop sponsored by the Division during the preceding two years; and

8.7.1.3 Must have completed 12 hours of live education taken in a real estate related subject in addition to the 12 hours of continuing education required for license renewal, and will provide a written evaluation of the course(s) and instructor(s) to the Division at time of renewal on a specific instructor evaluation form provided by the Division.

8.7.2 [If the renewal fee and documentation are not received within the prescribed time period]If the instructor does not submit a properly completed renewal form, the renewal fee, and any required documentation prior to the expiration date of the instructor's current certification, the certification shall expire.

8.7.2.1 When a certification expires, the certification may be [renewed]reinstated for a period of thirty days after the expiration date upon payment of a non-refundable late fee in addition to the requirements of [R162-8-7(8.7.1.1) - R162-8-7(8.7.1.3)]Section R162-8.7.1.1 through R162-8.7.1.3.

8.7.2.2 After this thirty day period, and until three months after the expiration date, an instructor certification may be reinstated upon payment of a non-refundable fee and completion of 6 classroom hours of education related to real estate or teaching techniques in addition to the requirement of Sections R162-8.7.1.1 through R162-8.7.1.3.

8.7.2.[2]3 After the three month period[ of thirty days], those instructors and adjunct instructors not meeting the conditions for renewal of certification must apply as an original applicant.

 

KEY: real estate business

[January 16, 2003]2004

Notice of Continuation June 3, 2002

61-2-5.5