75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 640
Sponsored by Senator COURTNEY
CHAPTER ................
AN ACT
Relating to the licensing of real estate professionals; creating
new provisions; and amending ORS 696.022, 696.174, 696.280 and
696.425.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 696.022 is amended to read:
696.022. (1) The Real Estate Agency shall establish by rule a
system for licensing real estate brokers, principal real estate
brokers and real estate property managers. The system shall
establish, at a minimum:
(a) The form and content of applications for licensing under
each category of real estate professional licensed by the agency;
(b) A licensing examination for each category of license;
(c) Schedules and procedures for issuing and renewing licenses;
(d) The term of a license in each category; and
(e) Terms and conditions under which the license of a real
estate licensee must be returned or transferred to the Real
Estate Commissioner for purposes including, but not limited to,
inactivation, suspension or termination of the license.
(2)(a) A real estate broker may engage in professional real
estate activity. A real estate broker may not employ, engage or
supervise the professional real estate activity of another real
estate licensee.
(b) { - In order - } To qualify for a real estate broker's
license, an applicant must furnish proof { - satisfactory - }
to the commissioner { + at the time of application for the
license + } that the applicant has
{ - successfully completed - } { + :
(A) Obtained a high school diploma or a General Educational
Development (GED) certificate or the international equivalent;
(B) Successfully completed + }the basic real estate broker's
educational courses { + required by rule of the agency; + } and
{ + (C) Passed the real estate broker's + } { - the - }
examination required by rule of the agency. { - Proof of
completion of all required courses must be provided at the time
of applying for the license. - }
(c) A real estate broker may conduct professional real estate
activity as a sole practitioner after:
(A) The individual has acquired three years of active
experience as a real estate broker; or
(B) The individual has acquired three years of active
experience as a real estate salesperson as defined in ORS 696.025
Enrolled Senate Bill 640 (SB 640-B) Page 1
(1999 Edition) and has successfully completed the real estate
broker's examination required by rule of the agency.
(3)(a) A principal real estate broker may engage in
professional real estate activity. A principal real estate broker
may conduct professional real estate activity in conjunction with
other real estate brokers or principal real estate brokers. In
addition, a principal real estate broker must employ, engage or
supervise the professional real estate activity of another real
estate licensee.
(b) { - In order - } To qualify for a principal real estate
broker's license, an applicant must meet the requirements of
subsection (2)(b) of this section and must furnish proof
{ - satisfactory - } to the commissioner { + at the time of
application for the license + } that the applicant has
{ - successfully completed the brokerage administration and
sales supervision course, as required by agency rule, and has - }
:
(A) Three years of active experience as a licensed real estate
broker { + or a licensed real estate salesperson as defined in
ORS 696.025 (1999 Edition) + }; { - or - }
{ - (B) Three years of active experience as a real estate
salesperson as defined in ORS 696.025 (1999 Edition) and has
successfully completed the real estate broker's examination
required by rule of the agency. - }
{ + (B) Passed the principal real estate broker's examination
required by rule of the agency; and
(C) Successfully completed the brokerage administration and
sales supervision course required by rule of the agency. + }
(4) { - In order - } To qualify for a real estate property
manager's license, an applicant must furnish proof
{ - satisfactory - } to the commissioner { + at the time of
application for the license + } that the applicant has { + :
(a) Obtained a high school diploma or General Educational
Development (GED) certificate or the international equivalent;
(b) + } Successfully completed courses in the legal aspects of
real estate, real estate property management and accounting,
bookkeeping and trust accounting practices { - . The applicant
also must have successfully completed a - } { + ; and
(c) Passed the + } real estate property manager's license
examination { - prescribed - } { + required + } by rule of
the agency. { - Proof of completion of all required courses
must be provided at the time of applying for the license. - }
(5)(a) A license for a real estate broker, principal real
estate broker or real estate property manager { - shall - }
{ + may + } be granted only to an individual who is trustworthy
and competent to conduct professional real estate activity in a
manner that protects the public interest. As a condition of
licensing, the commissioner may require proof of competence and
trustworthiness that the commissioner deems necessary to protect
the public interest.
(b) In implementing this subsection, the commissioner shall
require fingerprints and criminal offender information of an
applicant for initial licensing and may require fingerprints and
criminal offender information of an applicant for license
renewal. Fingerprints acquired under this subsection may be used
for the purpose of requesting a state or nationwide criminal
records check under ORS 181.534.
(6) A license may be issued under this section only to an
individual who is 18 years of age or older.
Enrolled Senate Bill 640 (SB 640-B) Page 2
(7) In order to qualify for a real estate broker's license, a
real estate salesperson licensed in another state or country must
successfully complete a course of study and pass a real estate
broker's license examination, both as prescribed by agency rule.
(8) In order to satisfy the educational requirements under
subsections (2) to (4) and (7) of this section, a course must be
approved by the commissioner. The commissioner shall determine
the final examination score acceptable as evidence of successful
completion for each required course.
(9) The Real Estate Board may determine that an applicant for a
principal real estate broker's license or a real estate broker's
license has experience related to professional real estate
activity that is equivalent to the experience required under
subsection (2) or (3) of this section.
SECTION 2. ORS 696.174 is amended to read:
696.174. { - (1) To qualify an active license for renewal,
the real estate licensee must present evidence of attendance
during the preceding two license years at 30 clock-hours of real
estate oriented continuing education courses, of which a minimum
of 15 clock-hours shall be in required course topics. - }
{ - (2)(a) The Real Estate Commissioner, with advice from
real estate professionals, educators and the public, may accept a
broad range of topics for real estate oriented continuing
education courses. Required course topics shall be flexible so as
to allow for changes in the real estate profession. - }
{ - (b) The minimum length of each course, required or
elective, shall be one hour. A standard form, created by the Real
Estate Agency in consultation with real estate professionals,
shall be developed to ensure that licensees have completed the
required number of hours. Certification of attendance by the
principal real estate broker with whom the real estate broker is
associated, or self-certification if the licensee is a sole
practitioner, a principal real estate broker or a real estate
property manager, shall be considered evidence of attendance. - }
{ - (3) The commissioner, with advice from real estate
professionals, educators and the public, shall prescribe rules
for certifying continuing education courses. The rules shall
provide for correspondence courses and other distance learning
alternatives, including but not limited to rules for minimum
course length, comprehension of written materials and tests for
course completion. The rules shall also provide that continuing
education course topics contain an advanced course in real estate
practices that must be completed by a licensee prior to the
licensee's first renewal of an active license. - }
{ - (4) The commissioner may waive the continuing education
requirements of subsection (1) of this section for any licensee
who submits satisfactory evidence of inability to attend such
courses because of health or other circumstances beyond the
licensee's control. - }
{ + (1) To renew an active license, a real estate licensee
must complete 30 hours of real estate continuing education
courses that are eligible for credit under section 4 of this 2009
Act during the two years preceding the renewal. The 30 hours must
include:
(a) At least three hours in a course on recent changes in real
estate rule and law approved by the Real Estate Board; and
(b) If the licensee is renewing an active license for the first
time, an advanced course in real estate practices approved by the
board.
Enrolled Senate Bill 640 (SB 640-B) Page 3
(2) The Real Estate Agency, in consultation with real estate
professionals and educators, shall develop a form to ensure that
a licensee has completed the number of hours required by
subsection (1) of this section. A completed form must contain:
(a) The date, name and length of time of each course attended;
(b) The name of the real estate continuing education provider
that offered the course;
(c) The name of the instructor who taught the course; and
(d) Any other information that the agency requires by rule.
(3) The agency may waive any portion of the requirements of
this section for a licensee who submits satisfactory evidence
that poor health or other circumstances beyond the licensee's
control prevented the licensee from attending part or all of the
continuing education courses required by subsection (1) of this
section. + }
SECTION 3. { + Sections 4, 5 and 6 of this 2009 Act are added
to and made a part of ORS 696.010 to 696.375. + }
SECTION 4. { + (1) The Real Estate Agency, with advice from
real estate professionals and educators, shall prescribe rules
for certifying real estate continuing education providers.
(2) The agency shall include in the rules that an applicant for
certification under this section must be:
(a) A main or branch office of a real estate broker or
principal real estate broker registered with the agency under ORS
696.026;
(b) A title or escrow company conducting business in this
state;
(c) A real estate trade association or a trade association in a
related field;
(d) A real estate multiple listing service;
(e) A private career school approved by the agency to teach
continuing education courses;
(f) An accredited community college or an accredited state
institution of higher education;
(g) A distance learning provider approved by the agency; or
(h) Another provider approved by the Real Estate Board.
(3) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
(a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
(b) Learning objectives for each course topic.
(4) The list of course topics developed by the agency under
subsection (3) of this section must allow for changes in the real
estate profession.
(5) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction. + }
SECTION 5. { + (1) A real estate continuing education provider
shall:
(a) Ensure that the courses offered by the continuing education
provider that are eligible for continuing education credit meet
the learning objectives for the course topic as provided by rule
of the Real Estate Agency under section 4 of this 2009 Act;
(b) Ensure that instructors who teach a real estate continuing
education course that is eligible for continuing education credit
under section 4 of this 2009 Act for the continuing education
provider meet the requirements set forth in section 6 of this
2009 Act; and
(c) Keep records of each course that the continuing education
provider offered, the length of time of each course, the name of
Enrolled Senate Bill 640 (SB 640-B) Page 4
the instructor who taught each course and other information
required by the agency. The continuing education provider shall
keep the records for at least three years.
(2) The records kept under subsection (1) of this section must
be open at all times for inspection by the Real Estate
Commissioner or the commissioner's authorized representatives.
The records may be maintained in any format that allows for
inspection and copying by the commissioner or the commissioner's
representatives as determined by the commissioner by rule and
that complies with rules adopted by the Real Estate Agency. The
agency may prescribe by rule terms and conditions under which a
continuing education provider may maintain records outside this
state. + }
SECTION 6. { + (1) A person must have one of the following
qualifications to teach a real estate continuing education course
that is eligible for credit required under ORS 696.174:
(a) A bachelor's degree and two years of experience working in
a field related to the topic of the course;
(b) Six years of experience working in a field related to the
topic of the course;
(c) A total of six years of any combination of college-level
coursework and experience working in a field related to the topic
of the course;
(d) A designation by a professional real estate organization as
determined by rule of the Real Estate Agency and two years of
college-level coursework;
(e) A designation by an association of real estate educators of
competency as an instructor;
(f) Successful completion of an instructor training course
approved by the Real Estate Board and two years of experience
working in a field related to the topic of the course; or
(g) Certification or approval in good standing as a real estate
instructor for the same or a similar course topic in any other
state or jurisdiction.
(2) Notwithstanding subsection (1) of this section, a person
may not teach a real estate continuing education course if the
person:
(a) Has had a professional or occupational license related to
the topic of the course revoked for disciplinary reasons, or has
a professional or occupational license related to the topic of
the course that is currently suspended for disciplinary reasons;
or
(b) Has been determined by a state court or an administrative
law judge to have violated any statute, rule, regulation or order
pertaining to real estate activity in this or any other state in
the preceding five years.
(3) Before a person teaches a course for a real estate
continuing education provider, the continuing education provider
shall require the person to sign a form in which the person
attests to:
(a) Meeting one of the qualifications described in subsection
(1) of this section; and
(b) Not being disqualified from teaching a course for reasons
described in subsection (2) of this section.
(4) The agency, with the advice of real estate professionals
and educators, shall prescribe by rule the content of the form
described in subsection (3) of this section. + }
SECTION 7. ORS 696.280 is amended to read:
696.280. (1) A real estate broker or principal real estate
broker shall maintain within this state, except as provided in
Enrolled Senate Bill 640 (SB 640-B) Page 5
subsection (4) of this section, complete and adequate records of
all professional real estate activity conducted by or through the
broker. The Real Estate Agency shall specify by rule the records
required to establish complete and adequate records of a broker's
professional real estate activity. The only documents the agency
may require by rule a real estate broker or principal real estate
broker to use or generate are documents that are otherwise
required by law or are voluntarily generated during a real estate
transaction.
(2) { - (a) - } The records of a principal real estate broker
{ - or - } { + , + } a sole practitioner { + or a real estate
broker + } { - shall - } { + must + } include records of
attendance in continuing education courses by the { + principal
real estate broker, + } sole practitioner or broker. The records
of attendance { - shall - } { + must meet the requirements of
ORS 696.174 (1). + } { - state the name of the sole
practitioner or broker and the date of the sole practitioner's or
broker's attendance, and shall be the basis for
self-certification under ORS 696.174. - }
{ - (b) A principal real estate broker's records shall
include records of attendance in continuing education courses by
real estate licensees associated with the principal broker. The
record of attendance shall state the name of the licensee and the
date of the licensee's attendance, and shall be the basis for the
certificate of attendance submitted under ORS 696.174. - }
(3) The records shall at all times be open for inspection by
the Real Estate Commissioner or the commissioner's authorized
representatives. The records of each transaction shall be
maintained by the licensee for a period of not less than six
years after the date the transaction closed or failed. The
records may be maintained in any format that allows for
inspection and copying by the commissioner or the commissioner's
representatives, as determined by the commissioner by rule.
(4) The agency may prescribe by rule terms and conditions under
which a real estate broker or principal real estate broker may
maintain records outside this state.
SECTION 8. ORS 696.425 is amended to read:
696.425. (1) The Real Estate Board is authorized to inquire
into the needs of the real estate licensees of Oregon, the
functions of the Real Estate Agency and the matter of the
business policy thereof, to confer with and advise the Governor
as to how the agency may best serve the state and the licensees,
and to make recommendations and suggestions of policy to the
agency as the board may deem beneficial and proper for the
welfare and progress of the licensees and of the public and of
the real estate business in Oregon.
(2) The board shall conduct all examinations for applicants for
real estate licenses, prepare or cause to be prepared the
questions to be asked in the examinations and grade or cause to
be graded the papers of each applicant after the completion of
the examination and file a written report with the agency as to
applicants taking the examination who have passed and who have
failed to pass the examination. The board shall provide the
manner and methods for conducting examinations.
{ + (3) The board shall create or approve a continuing
education course for real estate licensees based on recent
changes in real estate rule and law. + }
{ - (3) - } { + (4) + } The expenses of the board shall be
paid from moneys available to the agency for payment of
Enrolled Senate Bill 640 (SB 640-B) Page 6
administrative expenses relating to the real estate activities of
the agency.
SECTION 9. { + (1) Sections 4 to 6 of this 2009 Act and the
amendments to ORS 696.022, 696.174, 696.280 and 696.425 by
sections 1, 2, 7 and 8 of this 2009 Act become operative on
January 1, 2011.
(2) The Real Estate Agency and the Real Estate Board may take
any action before the operative date specified in subsection (1)
of this section that is necessary to enable the agency and the
board to exercise, on and after the operative date specified in
subsection (1) of this section, all the duties, functions and
powers conferred on the agency and the board by sections 4 to 6
of this 2009 Act and the amendments to ORS 696.022, 696.174,
696.280 and 696.425 by sections 1, 2, 7 and 8 of this 2009
Act. + }
SECTION 10. { + If House Bill 2910 becomes law, section 7 of
this 2009 Act (amending ORS 696.280) is repealed and ORS 696.280,
as amended by section 7, chapter ___, Oregon Laws 2009 (Enrolled
House Bill 2910), is amended to read: + }
696.280. (1) A real estate broker or principal real estate
broker shall maintain within this state, except as provided in
subsection (4) of this section, complete and adequate records of
all professional real estate activity conducted by or through the
broker. The Real Estate Agency shall specify by rule the records
required to establish complete and adequate records of a broker's
professional real estate activity. The only documents the agency
may require by rule a real estate broker or principal real estate
broker to use or generate are documents that are otherwise
required by law or are voluntarily generated during a real estate
transaction.
(2) The records of a real estate broker or a principal real
estate broker { - shall - } { + must + } include records of
attendance in continuing education courses by the real estate
broker or principal real estate broker. The records of attendance
{ - shall state the name of the real estate broker or principal
real estate broker and the date of attendance and shall be the
basis for self-certification under ORS 696.174 - } { + must
meet the requirements of ORS 696.174 (1) + }.
(3) The records shall at all times be open for inspection by
the Real Estate Commissioner or the commissioner's authorized
representatives. The records of each transaction shall be
maintained by the licensee for a period of not less than six
years after the date the transaction closed or failed. The
records may be maintained in any format that allows for
inspection and copying by the commissioner or the commissioner's
representatives, as determined by the commissioner by rule.
(4) The agency may prescribe by rule terms and conditions under
which a real estate broker or principal real estate broker may
maintain records outside this state.
SECTION 11. If House Bill 2910 becomes law, section 9 of this
2009 Act is amended to read:
{ + Sec. 9. + } (1) Sections 4 to 6 of this 2009 Act and the
amendments to ORS 696.022, 696.174, 696.280 and 696.425 by
sections 1, 2, { - 7 and - } 8 { + and 10 + } of this 2009
Act become operative on January 1, 2011.
(2) The Real Estate Agency and the Real Estate Board may take
any action before the operative date specified in subsection (1)
of this section that is necessary to enable the agency and the
board to exercise, on and after the operative date specified in
subsection (1) of this section, all the duties, functions and
Enrolled Senate Bill 640 (SB 640-B) Page 7
powers conferred on the agency and the board by sections 4 to 6
of this 2009 Act and the amendments to ORS 696.022, 696.174,
696.280 and 696.425 by sections 1, 2, { - 7 and - } 8 { + and
10 + } of this 2009 Act.
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Passed by Senate April 20, 2009
Repassed by Senate June 11, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 9, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 640 (SB 640-B) Page 8
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 640 (SB 640-B) Page 9