PROPOSED RULEMAKING
STATE REAL ESTATE COMMISSION
[49 PA. CODE CH. 35]
Education
[40 Pa.B. 5195]
[Saturday, September 11, 2010]The State Real Estate Commission (Commission) proposes to amend §§ 35.201, 35.271—35.273, 35.275, 35.341, 35.359, 35.384 and 35.385 to read as set forth in Annex A.
A. Effective Date
The proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin.
B. Statutory Authority
The amendments are proposed under the authority of section 404.1 of the Real Estate Licensing and Registration Act (RELRA) (63 P. S. § 455.404a).
C. Background and Purpose
In a previous rulemaking published at 34 Pa.B. 6530 (December 11, 2004), the Commission consolidated duplicative prelicensure and continuing education provisions and amended outdated, burdensome and unnecessary provider requirements in §§ 35.203, 35.228, 35.229, 35.271—35.273, 35.275, 35.341—35.363 and 35.381—35.392. Since that time, the Commission has reviewed the effectiveness of its regulations and determined that several provisions require additional amendment. Specifically, the Commission determined that the provider provisions in §§ 35.271—35.273 and 35.275 require additional consolidation; the continuing education provider requirements in §§ 35.352(b), 35.353(a), 35.355, 35.358(a) and 35.359(b) require cross-referencing in § 35.385 (relating to continuing education providers); the transcript/certificate requirements in § 35.359 (relating to course documentation) require amendment; and a required course needs to be added for new licensees in § 35.384(b) (relating to qualifying courses).
As part of its prior amendments, the Commission removed the requirement in § 35.359 that continuing education providers give transcripts or certificates of instruction to attendees because, at the time, a roster of attendees was being provided to the Commission directly by the providers following the courses. The Commission believed that this would eliminate an unnecessary paperwork requirement for providers and assist licensees and the Commission during renewal. However, having completed two renewals applying this method, the Commission determined that the electronic transfer system created additional administrative problems and abandoned electronic transfer in favor of the renewal and audit system used by other licensing boards within the Bureau of Professional and Occupational Affairs.
Another change made in the prior amendments was to eliminate the mandatory course requirement in § 35.384(b) in all but prenotified instances and replace it with all elective courses. As the Commission explained, except for instances when the RELRA or the regulations have been substantively modified or when, in the Commission's view, licensees require specific Commission-guidance, the Commission believed that licensees should be able to take continuing education in subjects that directly benefit their practice or interest. The Commission continues to hold this belief generally; however, it believes that new licensees require additional guidance about agency, real estate law and real estate documents regarding their specific practice area during their first years of practice that is not included in the prelicensure courses. Instead of allowing these new licensees to take elective courses to satisfy their continuing education requirement, the Commission believes that these licensees should take a required 14-hour course designed specifically for new licensees during the first renewal cycle in which they are required to complete continuing education. The Commission discussed this requirement with real estate education providers, its Voluntary Education Advisory Committee, real estate companies and licensees who agree that a required continuing education course for new licensees is beneficial. A course has been developed and is being offered during the 2009-2011 biennial period.
D. Description of Proposed Amendments
§ 35.201. Definitions
The Commission proposes adding a definition for ''accredited college'' in § 35.201 (relating to definitions) to simplify the educational requirements in Subchapter D (relating to licensing examinations).
Subchapter D. Licensing examinations
The Commission proposes consolidating the provider requirements in §§ 35.271(b)(iii) and (iv), 35.272(b)(2) and (3), 35.273(b)(2), (3) and (4) and 35.275(b)(2) and (3). In addition, in each of these sections, the Commission proposes cross-referencing the new definition of ''accredited college'' in § 35.201. Also, the Commission proposes adding the course transcript information currently in §§ 35.271, 35.272 and 35.275 (relating to examination for broker's license; examination for salesperson's license; and examination for rental listing referral agent's license) to § 35.273 (relating to examination for cemetery broker's license).
For each licensure class, the Commission determined that prelicensure education courses shall be taken from one of four sources: an accredited college; a real estate education provider in this Commonwealth; a real estate education provider outside of this Commonwealth that has been approved by the Commission in the jurisdiction where the provider is located; or a real estate industry organization outside of this Commonwealth that has been approved by the Commission in the jurisdiction where the organization is located. In this proposed rulemaking, the Commission consolidated § 35.271(b)(3)(iii) and (iv) and added ''industry organizations'' to §§ 35.272(b)(3)(iii), 35.273(b)(4)(iii) and 35.275(b)(3)(iii). In addition, the Commission proposes removing redundant language and consolidating the requirements in §§ 35.272(b)(2) and (3), 35.273(b)(2), (3) and (4) and 35.275(b)(2) and (3).
§ 35.341—Approval of real estate education provider
Because real estate education providers can be limited liability corporations and limited liability partnerships as well as corporations, the Commission proposes amending the documentation required to be submitted with a provider application in § 35.341(6)(iv) (relating to approval of real estate education provider) to require a copy of the registration documentation approved by the Department of State's Corporation Bureau.
§ 35.359—Course documentation
The Commission proposes amending the continuing education documentation requirements in § 35.359(b) by removing the electronic transfer requirement and requiring continuing education providers to again provide signed course transcripts/certificates of instruction to course attendees and instructors. Proposed paragraph (1) institutes a 2-year retention requirement for continuing education documentation. Proposed paragraph (2) imposes an affirmative requirement on licensees to produce the transcripts/certificates verifying completion of the continuing education requirement to the Commission if audited.
§ 35.384—Qualifying courses
§ 35.385—Continuing education providers
The Commission proposes amending § 35.384(b) to require that in addition to required courses mandated by the Commission, licensees complete the Commission developed 14 hour post-licensure education course as satisfaction of the continuing education requirement within the first biennial period in which continuing education is required for new licensees. Additionally, the Commission proposes adding § 35.385(b) to cross reference §§ 35.352(b), 35.353(a), 35.355, 35.358(a) and 35.359(b) pertaining to standards for real estate education providers, because those sections are equally applicable to continuing education providers.
E. Fiscal Impact and Paperwork Requirements
The proposed rulemaking should not have fiscal impact on the Commonwealth, its political subdivisions or the public. The proposed rulemaking will impose a paperwork requirement which may have a slight fiscal impact on the regulated community because the amendments require real estate education providers to provide signed transcripts/certificates of completion to continuing education participants/instructors at the end of each course, and licensees are required to retain this documentation for 2 years following the end of the biennial renewal period for purposes of audit.
F. Sunset Date
The Commission reviews the effectiveness of its regulations on an ongoing basis. Therefore, a sunset date has not been assigned.
G. Regulatory Review
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 27, 2010, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
I. Public Comment
Interested persons are invited to submit written comments, recommendations or objections regarding the proposed rulemaking to Judith Pachter Schulder, Counsel, State Real Estate Commission, P. O. Box 2649, Harrisburg, PA 17105-2649, jschulderstate.pa.us within 30 days of publication of this proposed rulemaking. Reference No. 16A-5613 (Continuing Education) when submitting comments.
JOSEPH TARANTINO, Jr.,
ChairpersonFiscal Note: 16A-5613. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND
VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND
OCCUPATIONAL AFFAIRS
CHAPTER 35. STATE REAL ESTATE COMMISSION
Subchapter B. GENERAL PROVISIONS § 35.201. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Accredited college—A college, university or institute of higher learning accredited by the Middle States Commission on Higher Education or an equivalent accrediting body.
* * * * *
Subchapter D. LICENSING EXAMINATIONS § 35.271. Examination for broker's license.
* * * * * (b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(4):
* * * * * (3) To be counted toward the education requirement, a real estate course shall have been offered by:
(i) An accredited college[, university or institute of higher learning, whether in this Commonwealth or outside this Commonwealth] as defined in § 35.201 (relating to definitions).
* * * * * (iii) A real estate education provider or industry organization outside this Commonwealth, that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider or industry organization is located. The course transcript or certificate of completion [shall] must state that the course is approved by the licensing authority of the jurisdiction where the real estate education provider or industry organization is located.
[(iv) A real estate industry organization outside this Commonwealth, if the course is approved by the licensing jurisdiction of another state. The course transcript or certificate of completion shall state that the course is approved by the licensing jurisdiction which has approved it.]
* * * * * § 35.272. Examination for salesperson's license.
* * * * * (b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(2):
* * * * * (2) Credits will be allowed for [each of the Commission-developed real estate courses—]Real Estate Fundamentals and Real Estate Practice[—when offered by:
(i) An accredited college, university or institution of higher learning located outside this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(3) Credits will be allowed for] and all acceptable basic real estate courses when offered by:
(i) An accredited college[, university or institution of higher learning located outside this Commonwealth] as defined in § 35.201 (relating to definitions).
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(iii) A real estate education provider or industry organization outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider or industry organization is located. The course transcript or certificate of completion must state that the course is approved by the licensing authority of the jurisdiction where the real estate education provider or industry organization is located.
[(4)] (3) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
* * * * * § 35.273. Examination for cemetery broker's license.
* * * * * (b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(3):
* * * * * (2) Credits will be allowed for [each of the Commission-developed real estate courses—]Real Estate Fundamentals and Real Estate Practice[—when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider approved by the Commission in this Commonwealth.
(3) Credits will be allowed for], cemetery courses [when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(4) Credits will be allowed for acceptable] and all basic real estate courses when offered by:
(i) An accredited college[, university or institute of higher learning located outside this Commonwealth] as defined in § 35.201 (relating to definitions).
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(iii) A real estate education provider or industry organization outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider or industry organization is located. The course transcript or certificate of completion must state that the course is approved by the licensing authority of the jurisdiction where the real estate education provider or industry organization is located.
[(iii)] (iv) A cemetery association outside this Commonwealth, if the course taught by the cemetery association is equivalent to a course taught by a real estate [school] education provider in this Commonwealth approved by the Commission.
[(5)] (3) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
* * * * * § 35.275. Examination for rental listing referral agent's license.
* * * * * (b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(2):
* * * * * (2) Credits will be allowed for [each of the Commission-developed real estate courses—]Real Estate Fundamentals and Real Estate Practice[—when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(3) Credits will be allowed for] and all acceptable basic real estate courses when offered by:
(i) An accredited college[, university or institute of higher learning in this Commonwealth] as defined in § 35.201 (relating to definitions).
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(iii) A real estate education provider or industry organization outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider or industry organization is located. The course transcript or certificate of completion must state that the course is approved by the licensing authority of the jurisdiction where the real estate education provider is located.
[(4)] (3) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
* * * * *
Subchapter F. REAL ESTATE EDUCATION PROVIDERS
APPROVAL OF
REAL ESTATE EDUCATION PROVIDERS§ 35.341. Approval of real estate education provider.
A real estate education provider shall obtain the Commission's approval before commencing operations in this Commonwealth. To obtain approval from the Commission, the real estate education provider shall:
* * * * * (6) Submit a completed real estate education provider approval application to the Commission with:
* * * * * (iv) A [certificate of incorporation] copy of the registration documentation approved by the Department's Corporation Bureau, if the real estate education provider is a corporation, limited liability partnership, limited partnership or limited liability company.
* * * * *
ADMINISTRATION OF
REAL ESTATE EDUCATION PROVIDERS§ 35.359. Course [transcripts] documentation.
* * * * * (b) Continuing education. [Effective with the renewal period commencing June 1, 2004, within] Within 30 days after a continuing education course has ended, the continuing education provider shall provide [the Commission with a roster in a format approved by the Commission, listing] each licensee who satisfactorily completed/taught the course[. Continuing education providers shall be required to issue course] transcripts/certificates of instruction [to students only upon request] that contain the information in § 35.360(a)(5)(i)—(viii) signed by the provider.
(1) Licensees shall retain the transcripts/certificates of instruction for 2 years following the biennial renewal period during which the courses were taken to renew the license.
(2) Licensees shall provide a copy of the transcripts/certificates of instruction to the Commission verifying completion of the continuing education requirement upon request.
Subchapter H. CONTINUING EDUCATION § 35.384. Qualifying courses.
(a) Except as provided in subsection (b), a licensee shall complete 14 hours of continuing education in acceptable courses in a minimum of 2-hour increments. [A standard license holder shall satisfy the continuing education requirement by doing one of the following:]
(b) The Commission may, for a given biennial license period and with adequate notice to standard license holders, require that all or part of the 14 hours be completed in required topics. In addition, during the first biennial period that continuing education is required, a new licensee shall complete the Commission-developed 14-hour required course for new licensees in satisfaction of the continuing education requirement.
* * * * * § 35.385. Continuing education providers.
(a) The following providers may offer instruction for continuing education:
(1) An accredited college[, university of institute of higher learning, whether in this Commonwealth or outside this Commonwealth] as defined in § 35.201 (relating to definitions).
* * * * * (3) A real estate education provider or industry organization outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider or industry organization is located.
(b) Continuing education providers shall comply with the standards for real estate education providers in §§ 35.352(b), 35.353(a), 35.358(a), 35.355 and 35.359(b).
[Pa.B. Doc. No. 10-1683. Filed for public inspection September 10, 2010, 9:00 a.m.]
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