AB456: Bill Text

AB456,15,3 452.025 (3) (b) 2. g. The signature of the time-share salesperson and the name of the employing broker firm with which the time-share salesperson is associated.

AB456,46 Section 46. 452.025 (4) of the statutes is repealed.

AB456,47 Section 47. 452.03 of the statutes is renumbered 452.03 (1) and amended to read:

AB456,15,13 452.03 (1) No Except as provided in s. 452.137, no person may engage in or follow the business or occupation of, or advertise or hold himself or herself out as, or act temporarily or otherwise as a broker or salesperson without a license issued under this chapter. The board may grant a license only to a person who is competent to transact such businesses that business or occupation in a manner that safeguards the interests of the public, and only after satisfactory proof of the person's competence has been presented to the board.

AB456,48 Section 48. 452.03 (2) of the statutes is created to read:

AB456,15,18 452.03 (2) No license under this chapter is required for an individual who, on behalf of and under the direction of a firm or one or more licensees associated with a firm, provides the firm or licensee with services that are limited to those that are purely administrative, clerical, or personal in nature.

AB456,49 Section 49. 452.05 (1) (a) of the statutes is amended to read:

AB456,15,22 452.05 (1) (a) Grant and issue licenses to individuals and business entities to act as brokers and to individuals to act salespersons and grant and issue registrations to time-share salespersons.

AB456,50 Section 50 . 452.05 (1) (a) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

AB456,16,3 452.05 (1) (a) Grant and issue licenses to individuals and business entities to act as brokers and to individuals to act salespersons and grant and issue registrations to time-share salespersons.

AB456,51 Section 51. 452.05 (1) (i) (intro.) of the statutes is amended to read:

AB456,16,7 452.05 (1) (i) (intro.) Create a form on which an individual applying to renew a broker's or salesperson's license or a time-share salesperson's certificate of registration may do all of the following:

AB456,52 Section 52. 452.05 (1) (i) 1. of the statutes is amended to read:

AB456,16,11 452.05 (1) (i) 1. State whether he or she has been convicted of a crime since he or she last applied to renew the license or certificate or, for an initial renewal, since he or she initially applied for the license or certificate.

AB456,53 Section 53. 452.05 (1) (i) 3. b. of the statutes is amended to read:

AB456,16,14 452.05 (1) (i) 3. b. The board's authority to revoke the license or certificate under s. 452.14 (3) (o).

AB456,54 Section 54. 452.05 (1) (j) of the statutes is created to read:

AB456,16,17 452.05 (1) (j) Assign a unique license number to each person licensed under this chapter.

AB456,55 Section 55. 452.07 (1m) of the statutes is amended to read:

AB456,16,20 452.07 (1m) The board shall may promulgate rules that specify regarding the supervisory duties responsibilities of brokers under s. 452.12 (3) 452.132.

AB456,56 Section 56. 452.07 (2) of the statutes is amended to read:

AB456,17,9 452.07 (2) The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker's or salesperson's license or a time-share salesperson's certificate of registration to, without submitting a full application and without paying the fees applicable to applicants, apply to the board for a determination of whether the individual would be disqualified from obtaining a license or certificate due to his or her criminal record. A determination made under this subsection, with respect to criminal convictions reviewed by the board as part of the determination, is binding upon the board and the department if the individual subsequently applies for a license or certificate, unless there is information relevant to the determination that was not available to the board at the time of the determination. The board may require a fee to be paid to the department for a determination issued under this subsection of an amount necessary to cover the cost of making the determination.

AB456,57 Section 57 . 452.07 (2) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

AB456,17,24 452.07 (2) The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker's or salesperson's license or a time-share salesperson's certificate of registration to, without submitting a full application and without paying the fees applicable to applicants, apply to the board for a determination of whether the individual would be disqualified from obtaining a license or certificate due to his or her criminal record. A determination made under this subsection, with respect to criminal convictions reviewed by the board as part of the determination, is binding upon the board and the department if the individual subsequently applies for a license or certificate, unless there is information relevant to the determination that was not available to the board at the time of the determination. The board may require a fee to be paid to the department for a determination issued under this subsection of an amount necessary to cover the cost of making the determination.

AB456,58 Section 58. 452.09 (1) (b) of the statutes is amended to read:

AB456,18,4 452.09 (1) (b) The name and address of the applicant; if. If the applicant is a business entity, the application shall also include the name and address of each business representative and the license number of each business representative licensed as a broker under this chapter.

AB456,59 Section 59. 452.09 (1) (c) of the statutes is repealed.

AB456,60 Section 60. 452.09 (2) (c) (intro.) of the statutes is amended to read:

AB456,18,9 452.09 (2) (c) (intro.) Except as provided in par. (d) or a reciprocal agreement under s. 452.05 (3), each applicant for a broker's license to be issued to an individual shall do all of the following:

AB456,61 Section 61. 452.09 (3) (a) of the statutes is amended to read:

AB456,18,19 452.09 (3) (a) In determining competency, the board shall require proof that the applicant for a broker's or salesperson's license has a fair knowledge of the English language; a fair understanding of the general purposes and general legal effect of deeds, mortgages, land contracts of sale, leases, bills of sale, chattel mortgages, and conditional sales contracts; and a general and fair understanding of the obligations between principal and agent, as well as of this chapter. The board shall deny a license to an applicant receiving a failing grade, as established by rules of the board, on any examination given under this section, but any applicant may review his or her examination results in a manner established by rules of the board.

AB456,62 Section 62. 452.09 (4) (a) 1. of the statutes is amended to read:

AB456,19,2 452.09 (4) (a) 1. An applicant for a broker's license who is an individual shall submit to the board 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 the applicant's application for a broker's license, excluding any time the applicant spent in an apprenticeship under sub. (5).

AB456,63 Section 63. 452.09 (5) of the statutes is repealed.

AB456,64 Section 64. 452.10 (1) of the statutes is amended to read:

AB456,19,8 452.10 (1) An application shall be verified by the applicant. If made by a business entity it shall be verified by a business representative that is a licensed individual broker or a licensed broker business entity and that is acting as a business representative for the business entity.

AB456,65 Section 65. 452.10 (2) (a) of the statutes is amended to read:

AB456,19,11 452.10 (2) (a) Each new application for a broker's or salesperson's license under this chapter shall be for the remainder of the biennial license period.

AB456,66 Section 66. 452.10 (4) (a) of the statutes is repealed.

AB456,67 Section 67. 452.10 (4) (b) of the statutes is renumbered 452.30 (5) and amended to read:

AB456,19,24 452.30 (5) No salesperson, time-share salesperson or broker may be employed by a broker whose licensee may be associated with a firm if the firm's license has been suspended or revoked during the period of suspension or revocation. The salesperson, time-share salesperson or broker licensee may apply for transfer to some other licensed broker by complying with this chapter become associated with another firm, provided the salesperson, time-share salesperson or broker licensee is not a party to the activities causing the suspension or revocation of the firm's license of the broker. If the licensee becomes associated with another firm, the licensee may not provide brokerage services on behalf of that firm until sub. (1) (b) has been satisfied.

AB456,68 Section 68. 452.11 (1) of the statutes is amended to read:

AB456,20,2 452.11 (1) A nonresident may become a broker , or salesperson or time-share salesperson by conforming to all the provisions of this chapter.

AB456,69 Section 69. 452.12 (2) (a) of the statutes is amended to read:

AB456,20,12 452.12 (2) (a) A broker's license may be issued to a business entity if the business entity has at least one business representative licensed as a broker. The license issued to the business entity entitles each business representative of the business entity who is a licensed as a broker to act as a broker on behalf of the business entity. A broker may act as a business representative for more than one business entity if the broker obtains the express, written consent of each business entity for which the broker desires to act as a business representative. A broker may act as a broker on behalf each business entity for which it is serving as a business representative.

AB456,70 Section 70. 452.12 (2) (c) of the statutes is amended to read:

AB456,20,20 452.12 (2) (c) Application for a business entity broker's license to be issued to a business entity shall be made on forms prescribed by the board, listing the names and addresses of all business representatives and the license numbers of all business representatives that are licensed brokers, and shall be accompanied by the initial credential fee determined by the department under s. 440.03 (9) (a). If there is a change in any of the business representatives, the change shall be reported to the board, on the same form, within 30 days after the effective date of the change.

AB456,71 Section 71. 452.12 (3) of the statutes is amended to read:

AB456,21,3 452.12 (3) Broker's liability Firm's responsibility for acts of employees licensees. Subject to s. 452.139 (3), each broker shall supervise, and a firm is responsible for, the brokerage services provided on behalf of the broker firm by any broker, salesperson, or time-share salesperson who is an employee of the broker a licensee associated with the firm only to the extent that the firm fails to comply with s. 452.132 and any rules promulgated under s. 452.07 (1m) with respect to that licensee.

AB456,72 Section 72. 452.12 (4) of the statutes is amended to read:

AB456,21,8 452.12 (4) Register of brokers and salespersons licensees. The board shall include in the register the board maintains under s. 440.035 (4) the names of all brokers and salespersons persons whose licenses issued under this chapter were revoked within the past 2 years. The register shall be available for purchase at cost.

AB456,73 Section 73. 452.12 (5) (b) of the statutes is amended to read:

AB456,21,13 452.12 (5) (b) If an application for renewal of a license issued to an individual is not filed with the board on or before the renewal date with the proof required under par. (c) or if the renewal is not granted, the applicant may not engage in any of the activities covered by the license until the license is renewed or a new license is issued.

AB456,74 Section 74. 452.12 (5) (bm) of the statutes is created to read:

AB456,21,17 452.12 (5) (bm) If an application for renewal of a license issued to a firm is not filed with the board on or before the renewal date or if the renewal is not granted, all of the following apply:

AB456,21,19 1. The firm may not engage in any of the activities covered by the license until the license is renewed or a new license is issued.

AB456,21,22 2. Any licensees associated with the firm may not engage in any of the activities covered by the firm's license on behalf of the firm until the firm's license is renewed or a new license is issued.

AB456,22,2 3. A licensed individual broker or licensed broker business entity who is serving as a business representative for the firm shall notify each licensee associated with the firm that the firm's license was not renewed and, within 10 days after notifying a licensee, file with the department a notice of termination for each such licensee on a form prescribed by the department.

AB456,75 Section 75. 452.12 (5) (c) of the statutes is amended to read:

AB456,22,6 452.12 (5) (c) At the time of renewal, each broker or salesperson who is an individual shall submit proof of attendance at and successful completion of continuing education programs or courses approved under s. 452.05 (1) (g).

AB456,76 Section 76. 452.12 (6) of the statutes is repealed.

AB456,77 Section 77. 452.13 (1) (a) of the statutes is amended to read:

AB456,22,13 452.13 (1) (a) "Client funds" means all downpayments, earnest money deposits, or other money related to a conveyance of real estate that is received by a broker, salesperson or time-share salesperson licensee on behalf of the broker's, salesperson's or time-share salesperson's principal a firm or any other person. "Client funds" does not include promissory notes.

AB456,78 Section 78. 452.13 (2) (a) of the statutes is amended to read:

AB456,22,20 452.13 (2) (a) A broker who firm that holds client funds shall establish an interest-bearing common trust account in a depository institution. The interest-bearing common trust account shall earn interest at a rate not less than that applicable to individual accounts of the same type, size, and duration and for which withdrawals or transfers can be made without delay, subject to any notice period that the depository institution is required to observe by law or regulation.

AB456,79 Section 79. 452.13 (2) (b) of the statutes is amended to read:

AB456,22,23 452.13 (2) (b) Any broker who firm that maintains an interest-bearing common trust account shall do all of the following:

AB456,23,3 1. Register with the department of safety and professional services the name and address of the depository institution and the number of the interest-bearing common trust account.

AB456,23,5 2. Notify the department of safety and professional services when any of the information required under subd. 1. is changed.

AB456,23,10 3. Furnish the department of safety and professional services with a letter authorizing the department of safety and professional services and the department of administration to examine and audit the interest-bearing common trust account whenever the either department of safety and professional services or the department of administration considers it necessary.

AB456,80 Section 80. 452.13 (2) (bm) of the statutes is amended to read:

AB456,23,14 452.13 (2) (bm) The department of safety and professional services shall forward to the department of administration the information and documents furnished under par. (b).

AB456,81 Section 81. 452.13 (2) (c) of the statutes is amended to read:

AB456,23,17 452.13 (2) (c) A broker firm shall deposit all client funds in the interest-bearing common trust account.

AB456,82 Section 82. 452.13 (2) (e) (intro.) of the statutes is amended to read:

AB456,23,20 452.13 (2) (e) (intro.) For each interest-bearing common trust account, the broker firm shall direct the depository institution to do all of the following:

AB456,83 Section 83. 452.13 (2) (e) 2. of the statutes is amended to read:

AB456,24,2 452.13 (2) (e) 2. When the interest remittance is sent, furnish to the department of administration and to the broker firm maintaining the interest-bearing common trust account a statement that includes the name of the broker firm for whose account the remittance is made, the rate of interest applied, the amount of service charges or fees deducted, if any, and the account balance for the period that the statement covers.

AB456,84 Section 84. 452.13 (2) (f) 1. of the statutes is amended to read:

AB456,24,7 452.13 (2) (f) 1. May not assess a service charge or fee that is due on an interest-bearing common trust account against any broker firm or, except as provided in subd. 3., against any other account, regardless of whether the same broker firm maintains the other account.

AB456,85 Section 85. 452.13 (3) of the statutes is amended to read:

AB456,24,16 452.13 (3) Deposit provisions. A broker who firm that deposits client funds in an interest-bearing common trust account in compliance with this section may not be held liable to the owner or beneficial owner of the client funds for damages due to compliance with this section. A broker, salesperson or time-share salesperson who licensee that deposits client funds in an interest-bearing common trust account in compliance with this section on behalf of a firm is not required to disclose alternative depository arrangements that could be made by the parties or to disclose that a deposit will be made under this section.

AB456,86 Section 86. 452.13 (4) of the statutes is amended to read:

AB456,24,19 452.13 (4) Trust account optional. This section does not require a broker firm to hold client funds or require a person to transfer client funds to a broker firm.

AB456,87 Section 87. 452.13 (5) of the statutes is amended to read:

AB456,24,23 452.13 (5) Rules. In consultation with the department of safety and professional services, the department of administration shall promulgate rules necessary to administer this section.

AB456,88 Section 88. 452.132 of the statutes is created to read:

AB456,25,3 452.132 Responsibilities of firms and licensees. (1) A firm shall supervise the brokerage service activities of each licensee associated with the firm, including by doing all of the following:

AB456,25,4 (a) Ensuring that a supervising broker for the firm complies with sub. (4).