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DOS-29-08-00002-E Thirty Hour Remedial Course for Real Estate Brokers and Salespeople
7/16/08 N.Y. St. Reg. DOS-29-08-00002-E
NEW YORK STATE REGISTER
VOLUME XXX, ISSUE 29
July 16, 2008
RULE MAKING ACTIVITIES
DEPARTMENT OF STATE
EMERGENCY RULE MAKING
I.D No. DOS-29-08-00002-E
Filing No. 628
Filing Date. Jun. 25, 2008
Effective Date. Jun. 25, 2008
Thirty Hour Remedial Course for Real Estate Brokers and Salespeople
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Addition of section 176.26 and amendment of section 177.18 of Title 19 NYCRR.
Statutory authority:
Real Property Law, section 442-k
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
Real Property Law (RPL) Article 12-A, prescribes requirements for individuals and business entities to act as a real estate salesperson and/or real estate broker. RPL § 440-a, among other provisions, requires that an individual or entity possess a license from the Department to operate as a real estate salesman or broker. RPL § 441(1)(b), as amended by Chapter 183 of the Laws of 2006, effective July 1, 2008, increased from 90 to 120 the required minimum number of hours of course work to obtain a real estate broker's license; RPL § 441(1-A)(d) as amended by Chapter 183 of the Laws of 2006, effective July 1, 2008, increased from 45 to 75 the required minimum number of hours of course work to obtain a real estate salesperson's license.
Effective July 1, 2008, no license may be issued to a real estate broker or salesperson who does not possess the increased number of course work. Prior to this effective date, however, some prospective licensees completed the old 45 hour qualifying course. This rule will afford these licensees with the option of taking a 30 hour remedial course which will result in them obtaining the 75 hours of education required by the recent statutory amendments, rather than requiring these licensees to complete the entire 75 hour educational course. This will protect consumers to ensuring that real estate licensees have adequate education.
Subject:
Thirty hour remedial course for real estate brokers and salespeople.
Purpose:
To amend current regulations in order to conform said regulations with recent statutory amendments to article 12-A of the Real Property Law.
Text of emergency rule:
Section 176.26 is added to 19 NYCRR to read as follows:
176.26 30 Hour Remedial Course
(a) Applicants for licensure as a real estate broker who successfully completed the 45 hour salesperson qualifying course prior to July 1, 2008 may take a 30 hour remedial course which, if successfully completed, may be used by said applicant in conjunction with the 45 hour salesperson qualifying course towards satisfying the educational requirements for licensure as a real estate broker.
(b) The following are the required subjects to be included in the 30 hour remedial course and the required number of hours to be devoted to each such subject:
Contract Preparation 1 hour
Predatory Lending 1 hour
Pricing Properties 1 hour
Municipal Agencies 2 hours
Property Insurance 2 hours
Taxes and Assessments 3 hours
Condominiums and Cooperatives 4 hours
Commercial and Investments Properties 10 hours
Income Tax Issues in Real Estate Transactions 3 hours
Mortgage Brokerage 1 hour
Property Management 2 hours
Total 30 hours
Final Exam 2 hours
TOTAL 32 HOURS
Section 177.18 of Title 19 NYCRR is amended to read as follows:
177.18 Continuing education credit.
(a) A salesperson may receive continuing education credit for completing any approved broker's course covering the subjects listed in § 176.4 of this Title 19.
(b) A salesperson may receive continuing education credit for successfully completing an approved 30 hour qualifying course as described in section 176.26 of this Part.
(c) No continuing education course will be considered for continuing education credit more than once within the two year cycle of renewal.
This notice is intended
to serve only as a notice of emergency adoption. This agency intends to adopt this emergency rule as a permanent rule and will publish a notice of proposed rule making in the State Register at some future date. The emergency rule will expire September 22, 2008.
Text of emergency rule and any required statements and analyses may be obtained from:
Whitney A. Clark, Department of State, Division of Licensing Services, P.O. Box 22001, Albany, NY 12231-0001, (518) 473-6728, e-mail: whitney.clark@dos.state.ny.us
Regulatory Impact Statement
1. Statutory authority:
Real Property Law (RPL) Article 12-A, Real Estate Brokers and Salesmen, prescribes requirements for individuals and business entities to act as a real estate salesperson and/or real estate broker. RPL § 440-a, among other provisions, requires that an individual or entity possess a license from the Department to operate as a real estate salesman or broker. RPL § 441, Application for license, prescribes the qualifications to be licensed as a real estate broker or real estate salesperson, including satisfactory completion of a real estate course program that has been approved by the Department. RPL § 441(1)(b), as amended by Chapter 183 of the Laws of 2006, effective July 1, 2008, increased from 90 to 120 the required minimum number of hours of course work to obtain a real estate broker's license; RPL § 441(1-A)(d) as amended by Chapter 183 of the Laws of 2006, effective July 1, 2008, increased from 45 to 75 the required minimum number of hours of course work to obtain a real estate salesperson's license. RPL § 442-k(1) authorizes the New York State Real Estate Board to promulgate regulations to administer and effectuate the purposes of Article 12-A of the Real Property Law. RPL § 442-k(1) provides that the Secretary of State shall adopt rules to administer the provisions of RPL § 441. To fulfill these purposes, the Department of State, in conjunction with the New York State Real Estate Board, has issued rules and regulations which are found at Part 176 of Title 19 NYCRR and is proposing the rule making.
2. Legislative objectives:
Real Property Law, Article 12-A, requires the Department of State to license and regulate real estate brokers and salespeople (“real estate licensees”). One of the purposes of Article 12-A is to ensure that real estate licensees are properly educated and trained. The rule making advances this legislative intent by providing real estate licensees who have taken the old 45-hour salesperson qualifying course with an option of taking a 30-hour remedial course which will result in them obtaining the 75 hours of education required by the recent statutory amendments.
3. Needs and benefits:
The proposed rule making will protect consumers and meet the legislative intent in enacting the amendments to Article 12-A. As a result of the statutory amendments to Article 12-A, the hours of qualifying education required for licensure were increased for real estate brokers (from 90 to 120 hours) and salespersons (from 45 to 75 hours). The Department of State is permitted by Real Property Law section 441(1)(c) to credit the 75 hours of real estate salesperson qualifying education against the 120 hours required for licensure as a real estate broker.
The proposed rule making will create a 30-hour remedial course for those real estate broker applicants who completed the 45 hours of qualifying education prior to July 1, 2008. By successfully completing the 30-hour remedial course, these applicants will possess the full 75 hours of salesperson qualifying education and will be entitled to credit those hours against the 120 hours of qualifying education required for licensure as a real estate broker. This will benefit those applicants seeking to upgrade their license to that of a real estate broker and will protect consumers by ensuring that real estate licensees have adequate education.
4. Costs:
a. Costs to regulated parties:
The rule making will not impose any new costs on real estate licensees other than the cost of taking the 30-hour remedial course. It is anticipated that the 30-hour course will cost licensees approximately $200.00. This course will not be mandatory and, rather, will be an option for real estate salespeople.
b. Costs to the Department of State:
The rule does not impose any costs to the agency, the state or local government for the implementation and continuation of the rule.
5. Local government mandates:
The rule does not impose any program, service, duty or responsibility upon any county, city, town, village, school district or other special district.
6. Paperwork:
The rule does not impose any new paperwork requirements insofar as prospective licensees are already required to satisfactorily complete qualifying education.
7. Duplication:
This rule does not duplicate, overlap or conflict with any other state or federal requirement.
8. Alternatives:
The Department of State recently proposed a rule making — published in the May 7, 2008 edition of the State Register, I.D. No. DOS-19-08-00017-P — to change the qualifying curriculum for real estate salespeople. This proposed rule making is an extension of that proposed rule insofar as the proposed 30-hour remedial course represents the additional 30 hours that were added to the old 45-hour salesperson qualifying course. In developing the new 75-hour curriculum, which includes the 30-hour course proposed in this rule making, the New York State Real Estate Board formed a subcommittee to prepare the allocation of course hours within that curriculum. The subcommittee met with representatives of the New York State Association of Realtors (NYSAR) and the Real Estate Board of New York (REBNY) to discuss and consider alternative allocations. NYSAR, specifically, recommended a different allocation of course hours within the new syllabus. After due consideration of this, and other alternatives, the subcommittee determined that the proposed course allocation was the superior option and recommended said proposal to the New York State Real Estate Board. After deliberation, the New York State Real Estate Board approved the course allocation reflected in the rule making proposed in the May 7, 2008 State Register, which includes the 30-hour remedial course proposed by this rule making. During the public comment period, the Department of State and the New York State Real Estate Board will receive and consider all recommended alternatives. The New York State Real Estate Board is a regulatory board established by Article 12-A of the Real Property Law. The Board is composed of real estate licensees and members of the public. It shares regulatory authority with the Department of State and is authorized to promulgate regulations including those pertaining to the education of real estate licensees.
9. Federal standards:
There are no federal standards regulating the registration of real estate licensees. Consequently, this rule does not exceed any existing federal standard.
10. Compliance schedule:
The 30-hour remedial course will be available on July 1, 2008, the effective date of the statutory amendments. Prospective licensees opting to take this course will therefore be able to take this course as of that date.
Regulatory Flexibility Analysis
1. Effect of rule:
The rule will apply to prospective real estate brokers and salespeople (“real estate licensees”) who are applying for licensure pursuant to Article 12-A of the Real Property Law. Chapter 183 of the Laws of 2006, which takes effect on July 1, 2008, increased the education requirement for brokers from 90 to 120 hours and increased the education requirement for salespersons from 45 to 75 hours. The proposed rule making merely creates a 30-hour remedial course for those real estate broker applicants who completed the required 45 hours of qualifying education prior to July 1, 2008, so that these applicants can possess the full 75 hours of salesperson qualifying education. The rule making will not have any foreseeable impact on jobs or employment opportunities for real estate licensees.
The rule does not apply to local governments.
2. Compliance requirements:
Insofar as the existing statute and regulations already require qualifying education for licensure, the proposed rule making will not add any new reporting, record- keeping or other compliance requirements.
The rule does not impose any compliance requirements on local governments.
3. Professional services:
Real estate licensees will not need to rely on any new professional services in order to comply with the rule. Licensees are already required to complete qualifying education pursuant to Article 12-A of the Real Property Law. Insofar as licensees must already attend and complete approved education courses, creating a 30-hour remedial course for real estate salespersons who successfully completed the old 45-hour course will not result in the need to rely on any new professional services. The Department expects existing education providers to begin offering the proposed 30-hour remedial course in accordance with the amended statute and the proposed rule making.
The rule does not impose any compliance requirements on local governments.
4. Compliance costs:
The rule making will result in compliance costs only for those prospective licensees who elect to take the 30-hour remedial course. It is anticipated that the course will cost licensees approximately $200.00.
The rule does not impose any compliance costs on local governments.
5. Economic and technological feasibility:
Since the rule does not impose any new record keeping requirements on prospective licensees, it will be technologically feasible for these persons to comply with the rule.
6. Minimizing adverse economic impact:
The Department of State has not identified any adverse economic impact of this rule. The rule does not impose any additional reporting or record keeping requirements on real estate licensees and does not require prospective licensees to take any affirmative acts to comply with the rule other than those acts that are already required pursuant to Real Property Law, Article 12-A.
7. Small business and local government participation:
Prior to proposing the rule, the Department discussed the proposal at a public meeting of the New York State Real Estate Board, the minutes of which were posted on the Department's website. The public was given an opportunity to issue comments during the public comment period of the meeting. In addition, the Notice of Proposed Rule Making will be published by the Department of State in the State Register. The publication of the rule in the State Register will provide notice to local governments and additional notice to small businesses of the proposed rule making. Additional comments will be received and entertained by the Department.
Rural Area Flexibility Analysis
A rural flexibility analysis is not required because this rule does not impose any adverse impact on rural areas, and the rule does not impose any new reporting, record keeping or other compliance requirements on public or private entities in rural areas.
During the 2006 legislative session, a bill was passed to amend sections 440 and 441 of the Real Property Law to, in relevant part, increase the hours of qualifying education required for licensure as a real estate broker (from 90 to 120 hours) and salesperson (from 45 to 75 hours). The Department of State is permitted by Real Property Law section 441(1)(c) to credit the 75 hours of real estate salesperson qualifying education against the 120 hours required for licensure as a real estate broker.
The proposed rule making merely creates a 30 hour remedial course for those real estate broker applicants who completed the 45 hours of qualifying education that was required prior to the statutory amendment. By successfully completing the 30 hour remedial course, these applicants will possess the full 75 hours of salesperson qualifying education and will be entitled to credit those hours against the 120 hours of qualifying education required for licensure as a real estate broker.
Insofar as the existing statute already requires the successful completion of qualifying education for licensure as a real estate broker or salesperson, the proposed rule making will not add any new reporting, record- keeping or other compliance requirements on public or private entities in rural areas.
Job Impact Statement
A job impact statement is not required insofar as the proposed rule will not have a substantial adverse effect on jobs and employment opportunities for licensed real estate salespersons and brokers.
During the 2006 legislative session, a bill was passed to amend sections 440 and 441 of the Real Property Law to, in relevant part, increase the hours of qualifying education required for licensure as a real estate broker (from 90 to 120 hours) and salesperson (from 45 to 75 hours). The Department of State is permitted by Real Property Law section 441(1)(c) to credit the 75 hours of real estate salesperson qualifying education against the 120 hours required for licensure as a real estate broker.
The proposed rule making merely creates a 30 hour remedial course for those real estate broker applicants who completed the 45 hours of qualifying education that was required prior to the statutory amendment. By successfully completing the 30 hour remedial course, these applicants will possess the full 75 hours of salesperson qualifying education and will be entitled to credit those hours against the 120 hours of qualifying education required for licensure as a real estate broker.
