Regular Session 2015-2016 Senate Bill 0991 P.N. 1260

PRINTER'S NO. 1260

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

991

Session of

2015

INTRODUCED BY DINNIMAN, SEPTEMBER 21, 2015

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

SEPTEMBER 21, 2015

AN ACT

Amending the act of February 19, 1980 (P.L.15, No.9), entitled

"An act establishing the State Real Estate Commission and

providing for the licensing of real estate brokers and

salesmen," further providing for definitions; in application

of act and penalties, further providing for unlawful to

conduct business without license or registration certificate,

for criminal penalties and for exclusions; in powers and

duties of the State Real Estate Commission in general,

further providing for administration and enforcement; adding

provisions relating to land acquisition broker registration

certificates; and, in duties of licensees, further providing

for prohibited acts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 201 of the act of February 19, 1980

(P.L.15, No.9), known as the Real Estate Licensing and

Registration Act, is amended by adding a definition to read:

Section 201. Definitions.

The following words and phrases when used in this act shall

have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

* * *

"Land acquisition broker." A person who, in the course and

scope of the person's business in this Commonwealth:

(1) acquires or manages oil, gas or mineral interests;

(2) performs title or contract functions related to the

exploration, exploitation or disposition of oil, gas or

mineral interests;

(3) negotiates for the acquisition or divestiture of

oil, gas or mineral rights, including the acquisition or

divestiture of land or oil, gas or mineral rights for a

pipeline; or

(4) negotiates business agreements that provide for the

exploration for or development of oil, gas or minerals.

* * *

Section 2. Sections 301 and 303 of the act, amended June 29,

1990 (P.L.246, No.58) and July 1, 1990 (P.L.304, No.69), are

amended to read:

Section 301. Unlawful to conduct business without license or

registration certificate.

It shall be unlawful for any person, directly or indirectly,

to engage in or conduct, or to advertise or hold himself out as

engaging in or conducting the business, or acting in the

capacity of a broker or salesperson, cemetery broker, cemetery

salesperson, campground membership salesperson, time-share

salesperson, builder-owner salesperson, rental listing referral

agent [or], cemetery company or land acquisition broker within

this Commonwealth without first being licensed or registered as

provided in this act, unless he is exempted from obtaining a

license or registration certificate under the provisions of

section 304.

Section 303. Criminal penalties.

Any person who shall engage in or carry on the business, or

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act in the capacity of a broker, salesperson, cemetery broker,

cemetery salesperson, campground membership salesperson, time-

share salesperson, builder-owner salesperson, rental listing

referral agent [or], cemetery company or land acquisition

broker, within this Commonwealth, without a license or

registration certificate, or shall carry on or continue business

after the suspension or revocation of any such license or

registration certificate issued to him, or shall employ any

person as a salesperson or cemetery salesperson to whom a

license has not been issued, or whose license or registration

certificate as such shall have been revoked or suspended, shall

be guilty of a summary offense and upon conviction thereof for a

first offense shall be sentenced to pay a fine not exceeding

$500 or suffer imprisonment, not exceeding three months, or both

and for a second or subsequent offense shall be guilty of a

felony of the third degree and upon conviction thereof, shall be

sentenced to pay a fine of not less than $2,000 but not more

than $5,000 or to imprisonment for not less than one year but

not more than two years, or both.

Section 3. Section 304(3) of the act, amended June 29, 1990

(P.L.246, No.58), is amended to read:

Section 304. Exclusions.

Except as otherwise provided in this act, the provisions of

this act shall not apply to the following:

* * *

(3) The officers or employees of a partnership or

corporation whose principal business is the discovery,

extraction, distribution or transmission of energy or mineral

resources, provided that the purchase, sale or lease of real

estate is a common and necessary transaction in the conduct

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of such principal business, unless otherwise provided under

Subchapter K of Chapter 5.

* * *

Section 4. Section 406 of the act is amended by adding a

paragraph to read:

Section 406. Administration and enforcement.

The commission shall have the power and its duty shall be to

administer and enforce the laws of the Commonwealth relating to:

* * *

(4) Those activities involving land acquisition brokers

for which registration is required under this act to instruct

and require its agents to bring prosecutions for unauthorized

and unlawful practice.

Section 5. Chapter 5 of the act is amended by adding a

subchapter to read:

SUBCHAPTER K

LAND ACQUISITION BROKER REGISTRATION CERTIFICATE

Section 596.1. Requirements for registration certificate.

Each applicant shall as a condition precedent to obtaining a

land acquisition broker registration certificate:

(1) Be at least 18 years of age.

(2) Submit to the commission the following information:

(i) In accordance with 18 Pa.C.S. Ch. 91 (relating

to criminal history record information), a report of

criminal history record information from the Pennsylvania

State Police or a statement from the Pennsylvania State

Police that the State Police central repository contains

no such information relating to the applicant. The report

of criminal history record information shall be no more

than one year old.

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(ii) If the applicant has not been a resident of

this Commonwealth for the two years immediately preceding

the date of application, the applicant shall submit a

report of Federal criminal history record information

obtained pursuant to 28 CFR Pt. 16, Subpt. C (relating to

production of FBI identification records in response to

written requests by subjects thereof).

Section 596.2. Application and fee for registration

certificate.

(a) Each applicant for a land acquisition broker

registration certificate shall submit an application for a

registration certificate, in writing to the department, upon a

form provided for the purpose by the department, and shall

include such information as to the applicant as the commission

shall require, including, at a minimum, all of the following

information:

(1) The name of the applicant or, if the applicant is

not an individual, the names and addresses of all principals

of the applicant.

(2) The business address, telephone number and

electronic mail address of the applicant.

(3) The S ocial S ecurity number of the applicant or, if

the applicant is not an individual, the Federal employer

identification number of the applicant.

(4) A list of any other state or other jurisdiction in

which the applicant holds or has held a similar registration

or license.

(5) A list of any other state or other jurisdiction in

which the applicant has had a similar registration or license

suspended or revoked.

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(6) A statement whether a pending judgement or tax lien

exists against the applicant.

(b) A registration certificate shall be renewed biennially.

fee and a biennial renewal fee by regulation.

Section 596.3. Establishment of registry.

The commission shall establish and maintain a registry of

land acquisition brokers with registration certificates

operating in this Commonwealth. The registry shall:

(1) Be available for public inspection on the

commission's publicly accessible Internet website.

(2) Display the land acquisition broker's name, business

address and registration certificate.

Section 596.4. Proof of registration certificate prior to

obtaining any mineral rights.

Upon first contact with a property owner, a land acquisition

broker shall provide to the property owner proof that the land

acquisition broker is registered under this act.

Section 6. Section 604(a)(30) of the act, added December 30,

2003 (P.L.418, No.58), is amended to read:

Section 604. Prohibited acts.

(a) The commission may upon its own motion, and shall

promptly upon the verified complaint in writing of any person

setting forth a complaint under this section, ascertain the

facts and, if warranted, hold a hearing for the suspension or

revocation of a license or registration certificate or for the

imposition of fines not exceeding $1,000, or both. The

commission shall have power to refuse a license or registration

certificate for cause or to suspend or revoke a license or

registration certificate or to levy fines up to $1,000, or both,

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where the said license has been obtained by false

representation, or by fraudulent act or conduct, or where a

licensee or registrant, in performing or attempting to perform

any of the acts mentioned herein, is found guilty of:

* * *

(30) Having been disciplined under a real estate

licensing law of another jurisdiction or, in the case of a

land acquisition broker, under a similar registration or

licensing law of another jurisdiction, including, but not

limited to, having a license or registration certificate

suspended or revoked, a fine or penalty imposed or being

censured or reprimanded publicly or privately, except that

the commission shall not have the authority to levy a fine

solely on the basis of this paragraph.

* * *

Section 7. This act shall take effect in 60 days.

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