Section 44 creates a section indicating the board may deny or withdraw approval of a program or course.
Section 45 has an initial applicability of January 1, 2016 for the education content and approval requirements.
Section 46 has an effective date of the first day of the month following publication.
Summary of, and comparison with, existing or proposed federal regulation: None
Comparison with rules in adjacent states:
Illinois: Illinois requires an applicant for a broker’s license to be at least 21 years of age, graduated from high school or equivalent, complete 120 credit hours of specified education or be admitted to practice law in Illinois and pass an examination. An applicant for a managing broker’s license is required to be at least 21 years of age, graduated from high school or equivalent, complete 165 credit hours of specified education or be admitted to practice law in Illinois, be actively licensed for 2 of the last 3 years and pass an examination. An out of state applicant who holds a license in a state with standards substantially equivalent to Illinois is required to take a Illinois specific real estate brokerage laws exam. Illinois brokers are required to complete 12 hours of continuing education and managing brokers are required to complete 6 hours of continuing education and a 12 hours broker management continuing education course. Illinois approves school with curriculum which conforms to the requirements, have instructors with a valid instructor’s license, administer a final course exam and maintain student records for a period of 5 years.
Iowa: Iowa requires an applicant for a salesperson’s license to complete 96 hours of specified education and pass an examination. An applicant for a broker’s license is required to complete 72 hours of education in addition to the required salesperson’s education, have engaged in real estate practice for a period of at least 24 months and pass an examination. An application may be denied for convictions. Iowa licensees shall complete 36 hours of continuing education approved programs, courses or activities. A licensee who fails to renew expired license within 3 years must start over in the licensing process. Iowa approves schools, courses and instructors. The school is required to provide course outlines at least 30 days prior to the first offering, have no more than 8 hours of instruction per day, maintain records for a period of five years and issue certificates of attendance. Instructors must demonstrate ability to teach by meeting specific requirements and demonstrate in-depth knowledge of subject matter by meeting specific requirements.
Michigan: Michigan requires an applicant for a salesperson’s license to complete 40 hours of education and pass an examination. An applicant for a broker’s license must complete 90 hours of education (a law degree counts towards 60 hours of education and a master’s degree in business administration counts as 60 hours of education), have real estate experience and pass an examination. Schools or sponsors of education shall obtain pre-approval. Instructors are approved as determined by the department.
Minnesota: Minnesota requires an applicant for salesperson to complete 30 hours of instruction prior to passing an examination and then additional 60 hours of education after passing the examination. An applicant for a broker’s license is required to complete 30 hours of education and 3 years of experience as a licensed salesperson. Minnesota requires schools to be approved and specify required curriculum content.
Summary of factual data and analytical methodologies:
The Council on Real Estate Curriculum and Examinations made curriculum revision recommendations to the Board based on current law and practices. The Board updated the rules based on 2013 Acts 133 and 288 as well as changes in the profession. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
This rule was posted for 14 days for economic comments and none were received. The Board determines that the modification of existing rules relating to applications and education does not create an effect on small business nor have an economic impact.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis is attached.
Effect on small business:
These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at Eric.Esser@wisconsin.gov, or by calling (608) 267-2435. Agency contact person:
Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-261-2377; email at Sharon.Henes@wisconsin.gov. ---------------------------------------------------------------------------------------------------------------------
TEXT OF RULE
Section 1. REEB 12.01(1)(a), (b), (c), (e), and (f) are renumbered to REEB 12.01 (1), (2), (3), (4), and (5).
Section 2. REEB 12.01(2)(a) and (b) are renumbered to REEB 12.01 (6) and (7).
Section 3. REEB 12.011 is created to read:
REEB 12.011 Criminal conviction predetermination. (1) An individual who does not possess a broker’s or salesperson’s license or a time-share salesperson’s certificate may apply to the board, without submitting a full application and payment of application fee, for a determination of whether the individual would be disqualified from obtaining a license or certificate based upon a criminal conviction by submitting all of the following:
(a) An application for predetermination.
(b) Police report.
(c) Criminal complaint.
(d) Judgment of conviction and sentencing.
(e) Verification of compliance or completion with the terms of the sentencing.
(f) Personal statement describing the facts that led to each offense and any rehabilitation completed.
(2) An individual who has been convicted of a felony shall meet the requirements of s. 452.25 (1) (b), Stats. prior to submitting a request for predetermination. (3) The board shall review the information related to the conviction and consider all of the following factors in making a determination:
(a) The severity and nature of the conviction.
(b) The amount of time that has elapsed.
(c) The number or pattern of convictions or other similar incidents that gave rise to the conviction.
(d) The circumstances surrounding the conviction that may have a bearing on whether the individual might repeat the behavior that was the subject of the conviction.
(e) The relationship of the conviction to real estate practice.
(f) The individual’s activities since the conviction, including employment, education, participation in treatment, payment of restitution, and any other factor that may be evidence of rehabilitation.
(4) The individual shall receive notification of the board’s determination whether the criminal convictions would disqualify the individual from obtaining a license or certificate due to the individual’s criminal record.
(5) The determination is binding upon the board and the department if the individual subsequently applies for license or certificate, unless there is information relevant to the determination that was not available to the board at the time of the determination.
Section 4. REEB 12.013 is created to read:
REEB 12.013 Salesperson application requirements. (1) Education requirements. Except as provided in sub. (3), each applicant for a real estate salesperson’s license shall submit satisfactory evidence of any of the following:
(a) Completion, within 4 years of licensure, of real estate salesperson’s education under s. REEB 25.033 through an education program that has been approved by the board or nonresident salesperson education equivalency under s. REEB 25.038. (b) Completion of 10 semester hour credits in real estate or real estate law courses at an accredited institution of higher education. A quarter hour credit equals 2/3 of a semester hour credit.
(2) Examination requirements. Except as provided in sub. (3), each applicant shall read and write a comprehensive examination in English, testing the applicant’s competency to transact the business of a real estate salesperson. The examination shall be in conformity with s. 452.09(3), Stats. (3) Reciprocity. An applicant who is licensed as a salesperson in a state or territory that has entered into a reciprocal agreement with this state shall be licensed according to the terms of the reciprocal agreement.
Section 5. REEB 12.015 is repealed.
Section 6. REEB 12.017 is created to read:
REEB 12.017 Broker application requirements. (1) Education requirements. Except as provided in sub. (4), each applicant for a real estate broker’s license shall submit satisfactory evidence of any of the following:
(a) Completion, within 4 years of broker’s licensure, of a real estate broker’s education program in business management under s. REEB 25.023 through an education program that has been approved by the board and evidence of any of the following: 1. Licensure as a real estate salesperson.
2. Completion of a real estate salesperson’s education program under s. REEB 25.033 or completion of 10 semester hour credits in real estate or real estate related law courses from an accredited institution of higher education. (b) Completion of nonresident broker equivalency under s. REEB 25.028. (c) Completion of 20 semester hour credits in real estate or real estate law courses at an accredited institution of higher education. A quarter hour credit equals 2/3 of a semester hour credit.
(d) The applicant is licensed to practice law in this state.
(2) Examination requirements. Except as provided in sub. (4), each applicant for a real estate broker’s license shall read and write a comprehensive examination in English, testing the applicant’s competency to transact the business of a real estate broker. The examination shall be in conformity with s. 452.09(3), Stats. (3) Experience requirements. Except as provided in sub. (4), (a) Each applicant for a real estate broker’s license shall submit evidence satisfactory to the board that the applicant has practiced as a licensed salesperson under the direct supervision of a licensed broker for at least 2 years within the last 4 years preceding the date of application, excluding any time the applicant spent in an apprenticeship. Except as provided in pars. (b) to (d), the evidence shall demonstrate that the applicant’s experience as a licensed salesperson qualifies the applicant for a total of at least 40 points based on the following point system:
1. Each completed or closed residential transaction is worth 5 points.
2. Each completed or closed commercial transaction is worth 10 points.
