Related statute or rule
Plain language analysis
In response to Executive Order 61, the Real Estate Examining Board reviewed their rules, Chs. REEB 1
, and identified two areas that either no longer reflected contemporary industry practices or had sunset by state statutes.
While provided through statutory authority, s. 452.12 (6) (a)
, Stats., an individual may apply for a registration as an apprentice under a supervisory broker. In this review, it was determined that such the process in ch. REEB 22
, relating to apprentices, is no longer followed in practice. Real estate brokers have the opportunity to train future license applicants as unlicensed professionals and do so in a less formal mentoring role within the guidelines of the duties of a supervising broker. The Board, therefore, chose to eliminate this chapter in its entirety.
Regarding the review of ch. REEB 26
, inactive licenses, it was found that although a process was in place for recognizing inactive licenses, the agency had only received one application in the past 18 months and that license has since expired. In addition, s. 452.12 (6) (a)
, Stats., provided for applications for inactive licenses, this section sunset on October 31, 1995. The Board, therefore, chose to eliminate this chapter in its entirety.
SECTION 1. This section proposes various amendments related chapters in the REEB series (chs. REEB 1
). Specifically proposed is to delete references to chs. REEB 22
, and references in the renewal sections if the individual had the status of an inactive licensee and references to s. 452.12 (6)
, Stats., specific to inactive licensees.
SECTION 2. This section proposes to repeal both chapters REEB 22, apprentices, and REEB 26, inactive licenses.
SECTION 3. This section defines the effective date of this rule once through the rulemaking process as specified in s. 277.11 (12)
Summary of, and comparison with, existing or proposed federal regulation
The federal government does not mandate licenses for active or inactive real estate brokers or salespersons; or are there laws regarding apprenticeships in the real estate profession.
Comparison with rules in adjacent states
The following information is a result of an Internet-based search for the four adjacent states.
Illinois: The state of Illinois does not license or have requirements for application as a real estate apprentice. Illinois codes and law do not provide for an inactive license. [Title 68b: professions and occupations, part 1450 real estate license act of 2000]
Iowa: The state of Iowa does not license or have requirements for application as a real estate apprentice. An inactive status in Iowa is required (only) when a salesperson is no longer employed by a broker or is in the process of transferring to another broker. [Iowa code 543B.33]
The state of Michigan does not license or have requirements for application as a real estate apprentice. Michigan law does not provide for inactive real estate licenses. [ch. 339
, Article 25 of Public Act 299 of 1980]
Minnesota: The state of Minnesota does not license or have requirements for application as a real estate apprentice. Nothing in these state rules provide for an inactive license status. [MN Statutes 82]
Summary of factual data and analytical methodologies
In the past year, the board reviewed their rules and found that the training of unlicensed individuals was more beneficial to future license applicants and supervising brokers than the process outlined in ch. REEB 22
, relating to apprentices. Supervising brokers are provided with such duties in s. 452.12 (3)
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
The Real Estate Examining Board was the primary source for determining the potential impacts of both the technical and administrative elements of these rules. A responsibility of the Board is to bring forth any concerns they may be aware of or have with the current requirements and with rule changes, and any concerns for any potential economic impacts from the changes. In addition, staff was consulted to provide data on the number of inactive and apprentice licenses or requests.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
This rule change will not have an effect on small business.
Agency Contact Person
Jean MacCubbin, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Policy Development, 1400 East Washington Avenue, Room 151, P.O. Box 8366 Madison, Wisconsin 53708-8366; telephone 608-266-0955 or telecommunication relay at 711; email at Jean.MacCubbin@wisconsin.gov
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
Fiscal Estimate & Economic Impact Analysis
1. Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
2. Administrative Rule Chapter, Title and Number
Chapters REEB 22 & 26, apprentices and inactive licenses
Real estate apprentices and inactive real estate licenses
4. Fund Sources Affected
5. Chapter 20, Stats. Appropriations Affected
6. Fiscal Effect of Implementing the Rule
X No Fiscal Effect
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Cost
7. The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy
⍽ Local Government Units
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
9. Policy Problem Addressed by the Rule
Responding to Executive order 61, the Real Estate Examining Board found in their review of their rules that the basis of one rule chapter, ch. REEB 26 inactive licenses, providing for inactive licenses had sunset on October 31, 1995. In addition, they found that the process of having apprentices was no longer used in the industry. Supervisory real estate brokers continue to have the opportunity to train future license applicants as unlicensed professionals and do so in a less formal mentoring role within the guidelines of the duties of a supervising broker. The Board chose to repeal both chapters REEB 22 and 26.
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
Licenses particularly those in the role of supervising broker would be affected in a positive manner as they no longer be required to complete and submit forms or document training of apprentices. Within the guidelines of a supervising broker, supervising brokers could continue less formal mentoring of unlicensed individuals in preparation for examination or license application.
11. Identify the local governmental units that participated in the development of this EIA.
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
These rules are not expected to have a fiscal impact on small business, the state's economy as a whole, or other sectors listed above.
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
With the repeal of two chapters, minimal internal efficiencies are expected to be realized. Real estate brokers, on the other hand, would continue to mentor unlicensed individuals within the guidelines for supervisory brokers.
14. Long Range Implications of Implementing the Rule
There is expected to be no foreseeable effect of this rule, as one process is rarely used and an alternative process for training exists.
15. Compare With Approaches Being Used by Federal Government
The federal government does not mandate licenses for active or inactive real estate brokers or salespersons; nor are there laws regarding apprenticeships in the real estate profession.
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
An Internet-based search revealed that none of the adjacent states license or have requirements for application as a real estate apprentice. Regarding inactive licenses, in Iowa requires an inactive license when a salesperson is no longer employed by a broker or is in the process of transferring to another broker; the other three states have no rules or laws pertaining to inactive status or licenses.
17. Contact Name
18. Contact Phone Number
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