SB520: Bill Text

LRB-2130/1

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2017 - 2018 LEGISLATURE

2017 Senate BILL 520

November 8, 2017 - Introduced by Senator Hansen, cosponsored by Representatives Berceau and Sargent. Referred to Committee on Public Benefits, Licensing and State-Federal Relations.

SB520,1,9 An Act to renumber and amend 452.30 (7) (b); to amend 15.405 (11m), 15.407 (5), 452.03 (1), 452.05 (1) (a), 452.05 (1) (c), 452.05 (1) (d), 452.05 (1) (g), 452.05 (1) (i) (intro.), 452.05 (3), 452.07 (2), 452.09 (1) (intro.), 452.09 (1) (e), 452.11 (1), 452.12 (1), 452.12 (5) (c), 452.12 (5) (d), 452.14 (1), 452.14 (3) (i), 452.20, 452.22 (2), 452.25 (1) (a), 452.25 (1) (c) 2., 452.25 (1) (e) and 452.25 (2) (b); and to create 440.03 (13) (b) 60m., 440.08 (2) (a) 63wm., 452.01 (5x), 452.01 (5y), 452.035, 452.09 (2) (e), 452.09 (3) (e) and 452.30 (7) (b) 2. of the statutes; relating to: licensure of professional leasing and renting agents and granting rule-making authority.

Analysis by the Legislative Reference Bureau

This bill establishes a licensure program for professional leasing and renting agents administered by the Real Estate Examining Board. The bill defines “professional leasing and renting” as, for compensation 1) renting or leasing real estate to a tenant; 2) making representations about the condition of real estate available for lease or rent; 3) showing real estate that is offered exclusively for lease or rent; 4) directing potential tenants about how to complete and sign lease agreements or rental agreements for real estate; and 5) screening applicants for real estate available for lease or rent.

Under the bill, and subject to certain exceptions, a person may engage in professional leasing and renting in Wisconsin only if the person is licensed by the examining board as a professional leasing and renting agent. The examining board may grant a license to engage in professional leasing and renting to an applicant who, among other things, is at least 18 years old, completes an educational program approved by the examining board, passes an examination approved by the examining board, and does not have a prior conviction for certain felonies or an offense related to the practice of real estate. The bill requires a licensed professional leasing and renting agent to complete continuing education requirements, as determined by the board, every two years in order to renew the license.

The bill adds a person who is licensed as a professional leasing and renting agent to the examining board. Under the bill, the examining board investigates, holds hearings, and makes findings pertaining to violations of the bill, therefore, certain violations by professional leasing and renting agents are punishable by a civil forfeiture of up to $1,000 and other violations of the professional leasing and renting provisions are punishable by a criminal fine of up to $1,000 or up to six months of jail or both. The penalties under the bill are the same that apply under current law to real estate brokers and salespersons. The bill also adds a person who is licensed as a professional leasing and renting agent and who has at least two years of work experience with that license to the Council on Real Estate Curriculum and Examinations. Under current law, the examining board is required to consult with the council before the examining board promulgates rules that establish criteria for educational programs required for licensure in real estate professions and for continuing education programs required for licensure in a real estate profession, and the council also has certain other duties.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB520,1 Section 1 . 15.405 (11m) of the statutes is amended to read:

SB520,3,2 15.405 (11m) Real estate examining board. There is created a real estate examining board in the department of safety and professional services. The real estate examining board shall consist of 7 8 members appointed to staggered 4-year terms. Five of the members shall be real estate brokers or salespersons licensed in this state. One of the members shall be a professional leasing and renting agent licensed in this state. Two members shall be public members. No member may serve more than 2 terms.

SB520,2 Section 2 . 15.407 (5) of the statutes is amended to read:

SB520,3,18 15.407 (5) Council on real estate curriculum and examinations. There is created in the department of safety and professional services a council on real estate curriculum and examinations consisting of 7 8 members appointed for 4-year terms. Five Six members shall be real estate brokers or, salespersons , or professional leasing and renting agents licensed under ch. 452 and 2 members shall be public members. Of the real estate broker or salesperson members, one member shall be a member of the real estate examining board appointed by the real estate examining board, at least 2 members shall be licensed real estate brokers with at least 5 years of experience as real estate brokers, and at least one member shall be a licensed real estate salesperson with at least 2 years of experience as a real estate salesperson, and at least one member shall be a licensed professional leasing and renting agent with at least 2 years of experience as a professional leasing and renting agent. Of the 2 public members, at least one member shall have at least 2 years of experience in planning or presenting real estate educational programs. No member of the council may serve more than 2 consecutive terms.

SB520,3 Section 3 . 440.03 (13) (b) 60m. of the statutes is created to read:

SB520,3,20 440.03 (13) (b) 60m. Professional leasing and renting agent.

SB520,4 Section 4. 440.08 (2) (a) 63wm. of the statutes is created to read:

SB520,3,23 440.08 (2) (a) 63wm. Professional leasing and renting agent: December 15 of each even-numbered year.

SB520,5 Section 5. 452.01 (5x) of the statutes is created to read:

SB520,4,2 452.01 (5x) “Professional leasing and renting” means, for compensation, any of the following:

SB520,4,3 (a) Renting or leasing real estate to a tenant.

SB520,4,5 (b) Making representations about the condition of real estate available for lease or rent.

SB520,4,6 (c) Showing real estate that is offered exclusively for lease or rent.

SB520,4,8 (d) Directing potential tenants about how to complete and sign lease agreements or rental agreements for real estate.

SB520,4,9 (e) Screening applicants for real estate available for lease or rent.

SB520,6 Section 6 . 452.01 (5y) of the statutes is created to read:

SB520,4,13 452.01 (5y) “Professional leasing and renting agent” means a person who engages in professional leasing and renting, including an individual who owns real estate and engages in professional leasing and renting related to that real estate.

SB520,7 Section 7. 452.03 (1) of the statutes is amended to read:

SB520,4,21 452.03 (1) 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 broker's or salesperson's license issued under this chapter. The board may grant a license only to a person who is competent to transact 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.

SB520,8 Section 8. 452.035 of the statutes is created to read:

SB520,5,2 452.035 Professional leasing and renting agent licensed. (1) Except as provided in sub. (2), no individual may act or advertise or hold himself or herself out as a professional leasing and renting agent without a license issued under this section.

SB520,5,3 (2) No license under this section is required for any of the following:

SB520,5,5 (a) A person who holds a broker's or salesperson's license issued under this chapter.

SB520,5,7 (b) A person lawfully practicing within the scope of a license, permit, registration, or certification granted by this state or the federal government.

SB520,5,9 (c) A person who engages in professional leasing and renting involving any of the following real estate:

SB520,5,10 1. The person's primary residence.

SB520,5,11 2. A primary residence of the person's immediate family member.

SB520,5,13 (d) A custodian, janitor, or other employee, or the owner or manager, of a residential building for exhibiting a residential unit therein to prospective tenants.

SB520,9 Section 9. 452.05 (1) (a) of the statutes is amended to read:

SB520,5,17 452.05 (1) (a) Grant and issue licenses to individuals and business entities to act as brokers and, to individuals to act as salespersons, and to individuals to act as professional leasing and renting agents.

SB520,10 Section 10. 452.05 (1) (c) of the statutes is amended to read:

SB520,6,2 452.05 (1) (c) After consultation with the council on real estate curriculum and examinations, promulgate rules establishing criteria for the approval of educational programs and training sessions under s. 452.09 (2) and approve such programs and sessions in accordance with the established criteria. The rules shall require that educational programs approved for a license in professional leasing and renting shall include instruction on obligations under s. 106.50 and federal fair housing laws, leasing or renting to tenants who use service animals, verifying legal forms of identification, and other duties and responsibilities related to professional leasing and renting.

SB520,11 Section 11. 452.05 (1) (d) of the statutes is amended to read:

SB520,6,8 452.05 (1) (d) After consultation with the council on real estate curriculum and examinations, brokers and, salespersons, and professional leasing and renting agents licensed under this chapter, and interested members of the public, establish criteria for the approval of continuing educational programs and courses in real estate related subjects required for renewal under s. 452.12 (5) (c).

SB520,12 Section 12 . 452.05 (1) (g) of the statutes is amended to read:

SB520,6,15 452.05 (1) (g) Approve continuing educational programs and courses in accordance with the criteria established under par. (d). In order to be approved, a continuing educational program or course must require brokers and, salespersons, and professional leasing and renting agents to pass an examination on the information presented at the program or course in order to successfully complete and receive continuing education credit for the program or course under s. 452.12 (5) (c).

SB520,13 Section 13 . 452.05 (1) (i) (intro.) of the statutes is amended to read:

SB520,6,19 452.05 (1) (i) (intro.) Create a form on which an individual applying to renew a broker's or, salesperson's, or professional leasing and renting agent's license may do all of the following:

SB520,14 Section 14. 452.05 (3) of the statutes is amended to read:

SB520,7,2 452.05 (3) The board may enter into reciprocal agreements with officials of other states or territories of the United States for licensing brokers and, salespersons, and professional leasing and renting agents, and grant licenses to applicants who are licensed as brokers or, salespersons, or professional leasing and renting agents in those states or territories according to the terms of the reciprocal agreements.

SB520,15 Section 15 . 452.07 (2) of the statutes is amended to read:

SB520,7,16 452.07 (2) The board may promulgate rules establishing a procedure that allows an individual who does not possess a broker's or , salesperson's, or professional leasing and renting agent's license 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 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, 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.

SB520,16 Section 16. 452.09 (1) (intro.) of the statutes is amended to read:

SB520,7,21 452.09 (1) Form of application. (intro.) Any person desiring to act as a broker or, salesperson, or professional leasing and renting agent shall submit to the board an application for a license. The application shall be in such form as the board prescribes and shall include the following:

SB520,17 Section 17. 452.09 (1) (e) of the statutes is amended to read:

SB520,8,2 452.09 (1) (e) Any other information that the board may reasonably require to enable it to determine the competency of each applicant, including each business representative of the business entity, to transact the business of a broker or, salesperson, or professional leasing and renting agent in a manner that safeguards the interests of the public.

SB520,18 Section 18. 452.09 (2) (e) of the statutes is created to read:

SB520,8,6 452.09 (2) (e) Except as provided in a reciprocal agreement under s. 452.05 (3), each applicant for a professional leasing and renting agent's license shall submit to the board evidence satisfactory to the board of all of the following:

SB520,8,8 1. Successful completion of an educational program in professional leasing and renting approved by the board under s. 452.05 (1) (c).

SB520,8,10 2. Proof that the applicant was at least 18 years of age at the time of enrollment in the educational program described in subd. 1.

SB520,19 Section 19. 452.09 (3) (e) of the statutes is created to read: