requires two-thirds majority vote (§§ 3, 12)
Assembly Bill No. 541–Committee on Commerce and Labor
(On Behalf of Department of Business and
Industry—Real Estate Division)
March 21, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Provides for regulation of certain instructors of courses required for issuance and renewal of license as real estate broker, broker-salesman or real estate salesman. (BDR 54‑551)
FISCAL NOTE: Effect on Local Government: Yes.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to real estate; requiring certain instructors of courses required for the issuance and renewal of a license as a real estate broker, real estate broker-salesman or real estate salesman to be certified by the real estate division of the department of business and industry; prescribing the requirements for certification of those instructors; requiring the real estate commission to adopt regulations governing certification of those instructors; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 645 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2, 3 and 4 of this act.
1-3 Sec. 2. “Instructor” means a person who teaches:
1-4 1. A course described in subsection 1 of NRS 645.343;
1-5 2. A college level course as defined in subsection 6 of NRS 645.343;
1-6 or
1-7 3. A course for the continuing education of a real estate broker, real
1-8 estate broker-salesman or real estate salesman that has been approved by
1-9 the commission.
1-10 Sec. 3. 1. An applicant for a certificate as an instructor must:
1-11 (a) Submit to the division:
1-12 (1) A complete set of fingerprints and written permission
1-13 authorizing the administrator to forward those fingerprints to the central
1-14 repository for Nevada records of criminal history for submission to the
1-15 Federal Bureau of Investigation for its report;
2-1 (2) A fee in an amount that is not more than the amount charged by
2-2 the Federal Bureau of Investigation for processing the fingerprints of the
2-3 applicant;
2-4 (3) An application on a form prescribed by the commission; and
2-5 (4) The statement required pursuant to NRS 645.358; and
2-6 (b) Comply with any other requirements established by the
2-7 commission for the issuance of a certificate.
2-8 2. The commission shall adopt regulations that establish additional
2-9 requirements for the issuance or renewal of a certificate by the division.
2-10 The regulations:
2-11 (a) Must establish the qualifications of an applicant for a certificate,
2-12 including the education and experience required to obtain a certificate;
2-13 (b) Must prescribe the form and contents of the application for a
2-14 certificate;
2-15 (c) May require an applicant to pass an examination to obtain a
2-16 certificate;
2-17 (d) Must establish standards of practice for an instructor;
2-18 (e) May require the holder of a certificate to pay all or part of the cost
2-19 of a disciplinary proceeding, including, without limitation, investigative
2-20 costs and attorney’s fees;
2-21 (f) Must prescribe the fees that the division is required or authorized
2-22 to collect pursuant to this section; and
2-23 (g) Must establish the grounds for initiating disciplinary action
2-24 against the holder of a certificate, including, without limitation, the
2-25 grounds for:
2-26 (1) Placing conditions, limitations or restrictions on a certificate;
2-27 (2) The suspension or revocation of a certificate; and
2-28 (3) Requiring the holder of a certificate to pay an administrative
2-29 fine.
2-30 3. The division may:
2-31 (a) Investigate the holder of a certificate to ensure his compliance
2-32 with the standards of practice adopted pursuant to subsection 2; and
2-33 (b) Collect a fee for the issuance or renewal of a certificate in an
2-34 amount that is not more than the administrative costs of issuing or
2-35 renewing the certificate.
2-36 Sec. 4. An application for a certificate as an instructor must include
2-37 the social security number of the applicant.
2-38 Sec. 5. NRS 645.230 is hereby amended to read as follows:
2-39 645.230 1. It is unlawful for any person[, limited-liability company,
2-40 partnership, association or corporation] to engage in the business of, act in
2-41 the capacity of, advertise or assume to act as[, a:
2-42 (a) Real] :
2-43 (a) A real estate broker, real estate broker-salesman or real estate
2-44 salesman within the State of Nevada without first obtaining the appropriate
2-45 license from the real estate division as provided for in this chapter; [or
2-46 (b) Property]
2-47 (b) A property manager within the State of Nevada without first
2-48 obtaining from the real estate division as provided for in this chapter a
3-1 license as a real estate broker, real estate broker-salesman or real estate
3-2 salesman and a permit to engage in property management[.] ; or
3-3 (c) An instructor within the State of Nevada without first obtaining a
3-4 certificate from the real estate division as provided for in this chapter.
3-5 2. The real estate division may prefer a complaint for a violation of
3-6 this section before any court of competent jurisdiction and [may] assist in
3-7 presenting the law or facts upon any trial for a violation of this section.
3-8 3. The district attorney of each county shall prosecute all violations of
3-9 this section in their respective counties in which violations occur, unless
3-10 prosecuted by the attorney general. Upon the request of the administrator,
3-11 the attorney general shall prosecute any violation of this section in lieu of
3-12 the district attorney.
3-13 4. The provisions of paragraph (c) of subsection 1 do not apply to a
3-14 person who:
3-15 (a) Teaches a course at any university or community college within
3-16 the University and Community College System of Nevada or any other
3-17 university or college that has the same or an equivalent accreditation; or
3-18 (b) Makes not more than two presentations in a calendar year in his
3-19 area of specialization for a course, seminar or conference approved by
3-20 the commission for credit to satisfy an educational requirement for the
3-21 issuance, renewal or reinstatement of a license as a real estate broker,
3-22 real estate broker-salesman or real estate salesman.
3-23 Sec. 6. NRS 645.358 is hereby amended to read as follows:
3-24 645.358 1. A natural person who applies for the issuance or renewal
3-25 of a license as a real estate broker, broker-salesman or salesman [shall] or a
3-26 certificate as an instructor must submit to the division the statement
3-27 prescribed by the welfare division of the department of human resources
3-28 pursuant to NRS 425.520. The statement must be completed and signed by
3-29 the applicant.
3-30 2. The division shall include the statement required pursuant to
3-31 subsection 1 in:
3-32 (a) The application or any other forms that must be submitted for the
3-33 issuance or renewal of the license[;] or certificate; or
3-34 (b) A separate form prescribed by the division.
3-35 3. A license as a real estate broker, broker-salesman or salesman or a
3-36 certificate as an instructor may not be issued or renewed by the division if
3-37 the applicant is a natural person who:
3-38 (a) Fails to submit the statement required pursuant to subsection 1; or
3-39 (b) Indicates on the statement submitted pursuant to subsection 1 that he
3-40 is subject to a court order for the support of a child and is not in
3-41 compliance with the order or a plan approved by the district attorney or
3-42 other public agency enforcing the order for the repayment of the amount
3-43 owed pursuant to the order.
3-44 4. If an applicant indicates on the statement submitted pursuant to
3-45 subsection 1 that he is subject to a court order for the support of a child and
3-46 is not in compliance with the order or a plan approved by the district
3-47 attorney or other public agency enforcing the order for the repayment of
3-48 the amount owed pursuant to the order, the division shall advise the
3-49 applicant to contact the district attorney or other public agency enforcing
4-1 the order to determine the actions that the applicant may take to satisfy the
4-2 arrearage.
4-3 Sec. 7. NRS 645.575 is hereby amended to read as follows:
4-4 645.575 1. The commission shall prescribe standards for the
4-5 continuing education of persons licensed pursuant to this chapter by
4-6 adopting regulations which include:
4-7 (a) For renewal of a license which is on active status, a requirement [for
4-8 the hours of attendance at] that a licensee attend any approved educational
4-9 course, seminar or conference [of:] for:
4-10 (1) Thirty hours within the 2-year period immediately after initial
4-11 licensing; and
4-12 (2) Fifteen hours within each subsequent 2-year period before
4-13 [renewal.] the license is renewed.
4-14 For each period, at least 6 of the hours must be devoted to ethics,
4-15 professional conduct or the legal aspects of real estate.
4-16 (b) For reinstatement of a license which has been placed on inactive
4-17 status, a requirement [for total attendance at] that a licensee attend any
4-18 approved educational course, seminar or conference for a total of:
4-19 (1) Thirty hours if the license was on inactive status for 2 years or
4-20 less during the initial license period;
4-21 (2) Fifteen hours if the license was on inactive status for a period of 2
4-22 years or less, no part of which was during the initial license period;
4-23 (3) Forty-five hours if the license was on inactive status for a period
4-24 of more than 2 years, part of which was during the initial license period; or
4-25 (4) Thirty hours if the license was on inactive status for a period of
4-26 more than 2 years, no part
of which was during the initial license
period.
4-27 For each period, at least 6 of the hours must be devoted to ethics,
4-28 professional conduct or the legal aspects of real estate.
4-29 (c) A basis and method of [qualifying] approving educational programs
4-30 and certifying attendance which [will satisfy] satisfies the requirements of
4-31 this section.
4-32 (d) A procedure for the evaluation of petitions that are based on a claim
4-33 of equivalency with the requirements of paragraph (a) or (b).
4-34 (e) A system of controlling and reporting qualifying attendance.
4-35 (f) A statement of the conditions for which an extension of time may be
4-36 granted to comply with the continuing education requirements [as well as]
4-37 and a method of applying and qualifying for such an extension.
4-38 2. The standards prescribed in subsection 1 must [permit] allow
4-39 alternatives of subject material, taking cognizance of specialized areas of
4-40 practice and alternatives in sources of programs considering availability in
4-41 area and time. The standards must include, [where qualified,] if approved,
4-42 generally accredited educational institutions, private vocational schools,
4-43 educational programs and seminars of professional societies and
4-44 organizations, other organized educational programs on technical subjects,
4-45 or equivalent offerings. The commission [shall qualify] :
4-46 (a) Shall approve only those educational courses that it determines
4-47 address the appropriate subject matter and that are [given by an accredited
4-48 university or community college.] taught by an instructor to whom a
5-1 certificate has been issued pursuant to section 3 of this act or who is
5-2 exempt from certification pursuant to subsection 4 of NRS 645.230.
5-3 (b) Subject to the provisions of this section, the commission has
5-4 exclusive authority to determine what is an appropriate subject matter for
5-5 qualification as a continuing education course.
5-6 3. Except as otherwise provided in this subsection, the license of a real
5-7 estate broker, broker-salesman or salesman must not be renewed or
5-8 reinstated unless the administrator finds that the applicant for the renewal
5-9 license or for reinstatement to active status has completed the continuing
5-10 education required by this chapter. Any amendment or repeal of a
5-11 regulation does not [operate to] prevent an applicant from complying with
5-12 this section for the next licensing period following the amendment or
5-13 repeal.
5-14 Sec. 8. NRS 645.648 is hereby amended to read as follows:
5-15 645.648 1. If the division receives a copy of a court order issued
5-16 pursuant to NRS 425.540 that provides for the suspension of all
5-17 professional, occupational and recreational licenses, certificates and
5-18 permits issued to a person who is the holder of a license as a real estate
5-19 broker, broker-salesman or salesman[,] or a certificate as an instructor,
5-20 the division shall deem the license or certificate issued to that person to be
5-21 suspended at the end of the 30th day after the date on which the court order
5-22 was issued unless the division receives a letter issued to the holder of the
5-23 license or certificate by the district attorney or other public agency
5-24 pursuant to NRS 425.550 stating that the holder of the license or certificate
5-25 has complied with the subpoena or warrant or has satisfied the arrearage
5-26 pursuant to NRS 425.560.
5-27 2. The division shall reinstate a license as a real estate broker, broker-
5-28 salesman or salesman or a certificate as an instructor that has been
5-29 suspended by a district court pursuant to NRS 425.540 if the division
5-30 receives a letter issued by the district attorney or other public agency
5-31 pursuant to NRS 425.550 to the person whose license or certificate was
5-32 suspended stating that the person whose license or certificate was
5-33 suspended has complied with the subpoena or warrant or has satisfied the
5-34 arrearage pursuant to NRS 425.560.
5-35 Sec. 9. NRS 645.990 is hereby amended to read as follows:
5-36 645.990 1. A person who:
5-37 (a) Obtains or attempts to obtain a license or certificate pursuant to this
5-38 chapter by means of intentional misrepresentation, deceit or fraud; or
5-39 (b) Sells or attempts to sell in this state any interest in real property by
5-40 means of intentional misrepresentation, deceit or fraud,
5-41 is guilty of a category D felony and shall be punished as provided in NRS
5-42 193.130. In addition to any other penalty, the court shall order the person to
5-43 pay restitution.
5-44 2. Any licensee or owner-developer who commits an act described in
5-45 NRS 645.630, 645.633 or 645.635 shall be punished by a fine of not more
5-46 than $5,000 for each offense.
5-47 3. An instructor who commits an act described in paragraph (c) of
5-48 subsection 1 of NRS 645.230 is guilty of a misdemeanor.
6-1 4. A person who violates any other provision of this chapter, if a
6-2 natural person, is guilty of a gross misdemeanor, and if a limited-liability
6-3 company, partnership, association or corporation, shall be punished by a
6-4 fine of not more than $2,500.
6-5 [4.] 5. Any officer or agent of a corporation, or member or agent of a
6-6 limited-liability company, partnership or association, who personally
6-7 participates in or is an accessory to any violation of this chapter by the
6-8 limited-liability company, partnership, association or corporation, is
6-9 subject to the penalties prescribed in this section for natural persons.
6-10 [5. Nothing in]
6-11 6. The provisions of this section [releases] do not release a person
6-12 from civil liability or criminal prosecution pursuant to the general laws of
6-13 this state.
6-14 [6.] 7. The administrator may prefer a complaint for violation of NRS
6-15 645.230 before any court of competent jurisdiction and [may] take the
6-16 necessary legal steps through the proper legal officers of this state to
6-17 enforce the provisions thereof.
6-18 [7.] 8. Any court of competent jurisdiction may try any violation of
6-19 this chapter, and upon conviction the court may revoke or suspend the
6-20 license of the person so convicted, in addition to imposing the other
6-21 penalties provided in this section.
6-22 [8.] 9. If discipline is imposed pursuant to this section, the costs of the
6-23 proceeding, including investigative costs and attorney’s fees, may be
6-24 recovered by the administrator.
6-25 Sec. 10. NRS 394.450 is hereby amended to read as follows:
6-26 394.450 [A]
6-27 1. Except as otherwise provided in subsection 2, a postsecondary
6-28 educational institution shall ensure that:
6-29 [1.] (a) The quality and content of each vocational or academic course
6-30 or program of instruction, training or study reasonably and adequately
6-31 achieve the stated objective for which the course or program is offered.
6-32 [2.] (b) The institution has adequate space, equipment, instructional
6-33 materials and personnel to provide education of good quality.
6-34 [3.] (c) The education and experience of directors, administrators,
6-35 supervisors and instructors reasonably provide the students with an
6-36 education consistent with the objectives of the course or program of study.
6-37 [4.](d) The institution is maintained and operated in compliance with
6-38 all pertinent local ordinances and state laws, including regulations adopted
6-39 pursuant thereto, relative to the safety and health of all persons upon the
6-40 premises.
6-41 [5.] (e) The housing, if any, owned, maintained or approved by the
6-42 institution for its students is appropriate, safe and adequate.
6-43 2. The provisions of this section do not apply to an instructor of:
6-44 (a) A course described in subsection 1 of NRS 645.343; or
6-45 (b) A college level course as defined in subsection 6 of NRS 645.343.
6-46 Sec. 11. NRS 394.465 is hereby amended to read as follows:
6-47 394.465 1. Except as otherwise provided in subsection 4, before a
6-48 postsecondary educational institution employs or contracts with a person:
6-49 (a) To occupy an instructional position;
7-1 (b) To occupy an administrative or financial position, including a
7-2 position as school director, personnel officer, counselor, admission
7-3 representative, solicitor, canvasser, surveyor, financial aid officer or any
7-4 similar position; or
7-5 (c) To act as an agent for the institution,
7-6 the applicant must submit to the administrator completed fingerprint cards
7-7 and a form authorizing an investigation of the applicant’s background and
7-8 the submission of his fingerprints to the central repository for Nevada
7-9 records of criminal history and the Federal Bureau of Investigation. The
7-10 fingerprint cards and authorization form submitted must be those which are
7-11 provided to the applicant by the administrator. The applicant’s fingerprints
7-12 must be taken by an agency of law enforcement.
7-13 2. The administrator shall keep the results of the investigation
7-14 confidential, except that if the investigation discloses that the applicant has
7-15 been convicted of any felony, the administrator shall notify the applicant
7-16 and the hiring institution of the conviction and the nature of the offense.
7-17 3. The applicant shall pay the cost of the investigation.
7-18 4. An applicant is not required to satisfy the requirements of
7-19 subsection 1 if he:
7-20 (a) Is licensed by the superintendent of public instruction;
7-21 (b) Is an employee of the United States Department of Defense;
7-22 (c) Is a member of the faculty of an accredited postsecondary
7-23 educational institution in another state who is domiciled in a state other
7-24 than Nevada and is present in Nevada for a temporary period to teach at a
7-25 branch of that accredited institution; [or]
7-26 (d) Has satisfied the requirements of subsection 1 within the
7-27 immediately preceding 5 years[.] ; or
7-28 (e) Has applied for a position as an instructor of:
7-29 (1) A course described in subsection 1 of NRS 645.343; or
7-30 (2) A college level course as defined in subsection 6 of NRS
7-31 645.343.
7-32 Sec. 12. Section 3 of this act is hereby amended to read as follows:
7-33 Sec. 3. 1. An applicant for a certificate as an instructor must:
7-34 (a) Submit to the division:
7-35 (1) A complete set of fingerprints and written permission
7-36 authorizing the administrator to forward those fingerprints to the
7-37 central repository for Nevada records of criminal history for
7-38 submission to the Federal Bureau of Investigation for its report;
7-39 (2) A fee in an amount that is not more than the amount charged
7-40 by the Federal Bureau of Investigation for processing the fingerprints
7-41 of the applicant; and
7-42 (3) An application on a form prescribed by the commission; and
7-43 [(4) The statement required pursuant to NRS 645.358; and]
7-44 (b) Comply with any other requirements established by the
7-45 commission for the issuance of a certificate.
7-46 2. The commission shall adopt regulations that establish
7-47 additional requirements for the issuance or renewal of a certificate by
7-48 the division. The regulations:
8-1 (a) Must establish the qualifications of an applicant for a
8-2 certificate, including the education and experience required to obtain a
8-3 certificate;
8-4 (b) Must prescribe the form and contents of the application for a
8-5 certificate;
8-6 (c) May require an applicant to pass an examination to obtain a
8-7 certificate;
8-8 (d) Must establish standards of practice for an instructor;
8-9 (e) May require the holder of a certificate to pay all or part of the
8-10 cost of a disciplinary proceeding, including, without limitation,
8-11 investigative costs and attorney’s fees;
8-12 (f) Must prescribe the fees that the division is required to collect
8-13 pursuant to this section; and
8-14 (g) Must establish the grounds for initiating disciplinary action
8-15 against the holder of a certificate, including, without limitation, the
8-16 grounds for:
8-17 (1) Placing conditions, limitations or restrictions on a certificate;
8-18 (2) The suspension or revocation of a certificate; and
8-19 (3) Requiring the holder of a certificate to pay an administrative
8-20 fine.
8-21 3. The division may:
8-22 (a) Investigate the holder of a certificate to ensure his compliance
8-23 with the standards of practice adopted pursuant to subsection 2; and
8-24 (b) Collect a fee for the issuance or renewal of a certificate in an
8-25 amount that is not more than the administrative costs of issuing or
8-26 renewing the certificate.
8-27 Sec. 13. Notwithstanding the provisions of NRS 645.230, as amended
8-28 by this act, and sections 2, 3 and 4 of this act, a person who teaches:
8-29 1. A course described in subsection 1 of NRS 645.343;
8-30 2. A college level course as defined in subsection 6 of NRS 645.343;
8-31 or
8-32 3. A course for the continuing education of a real estate broker, real
8-33 estate broker-salesman or real estate salesman that has been approved by
8-34 the commission,
8-35 is not required to obtain a certificate as an instructor pursuant to the
8-36 provisions of this act before July 1, 2002.
8-37 Sec. 14. The amendatory provisions of this act do not apply to
8-38 offenses committed before July 1, 2001.
8-39 Sec. 15. 1. This section and sections 2, 3 and 4 of this act become
8-40 effective upon passage and approval for the purpose of the adoption of
8-41 regulations by the real estate commission that are necessary to carry out the
8-42 provisions of this act, and on July 1, 2001, for all other purposes.
8-43 2. Sections 5 to 11, inclusive, and 13 and 14 of this act become
8-44 effective on July 1, 2001.
8-45 3. Section 12 of this act becomes effective on the date on which the
8-46 provisions of 42 U.S.C. § 666 requiring each state to establish procedures
8-47 under which the state has authority to withhold or suspend, or to restrict the
8-48 use of professional, occupational and recreational licenses of persons who:
9-1 (a) Have failed to comply with a subpoena or warrant relating to a
9-2 procedure to determine the paternity of a child or to establish or enforce an
9-3 obligation for the support of a child; or
9-4 (b) Are in arrears in the payment for the support of one or more
9-5 children,
9-6 are repealed by the Congress of the United States.
9-7 4. Section 4 of this act expires by limitation on the date on which the
9-8 provisions of 42 U.S.C. § 666 requiring each state to establish procedures
9-9 under which the state has authority to withhold or suspend, or to restrict the
9-10 use of professional, occupational and recreational licenses of persons who:
9-11 (a) Have failed to comply with a subpoena or warrant relating to a
9-12 procedure to determine the paternity of a child or to establish or enforce an
9-13 obligation for the support of a child; or
9-14 (b) Are in arrears in the payment for the support of one or more
9-15 children,
9-16 are repealed by the Congress of the United States.
9-17 H