PRIOR PRINTER'S NO. 1514 PRINTER'S NO. 2090
No. 1000 Session of 2003
INTRODUCED BY FLICK, CIVERA, MARKOSEK, ARMSTRONG, ADOLPH, ALLEN,
ARGALL, BAKER, BARD, BARRAR, BELFANTI, BENNINGHOFF, BOYD,
BOYES, BROWNE, BUNT, BUXTON, CALTAGIRONE, CAPPELLI, CASORIO,
CAUSER, CLYMER, COLEMAN, CORNELL, COSTA, COY, CRAHALLA,
CREIGHTON, CURRY, DAILEY, DALEY, DALLY, DeLUCA, DeWEESE,
D. EVANS, FAIRCHILD, FRANKEL, GEIST, GEORGE, GERGELY,
GILLESPIE, GINGRICH, GODSHALL, HALUSKA, HANNA, HARHART,
HARPER, HARRIS, HASAY, HENNESSEY, HERMAN, HERSHEY, HESS,
HORSEY, HUTCHINSON, KENNEY, KOTIK, LaGROTTA, LAUGHLIN, LEACH,
LEH, LEVDANSKY, LYNCH, MACKERETH, MAHER, MAJOR, MANDERINO,
MANN, MARSICO, McGEEHAN, McILHATTAN, McILHINNEY, McNAUGHTON,
METCALFE, R. MILLER, S. MILLER, MUNDY, NAILOR, NICKOL,
O'NEILL, PAYNE, PETRI, PHILLIPS, PICKETT, PISTELLA, RAYMOND,
READSHAW, REICHLEY, ROBERTS, ROHRER, ROSS, RUBLEY, SAINATO,
SANTONI, SATHER, SAYLOR, SEMMEL, SHANER, SOLOBAY, STERN,
R. STEVENSON, T. STEVENSON, STURLA, SURRA, TANGRETTI,
E. Z. TAYLOR, THOMAS, TIGUE, TRAVAGLIO, TRUE, TURZAI, VEON,
WANSACZ, WASHINGTON, WATSON, WILT, WRIGHT, YOUNGBLOOD, ZUG,
KELLER, YEWCIC, LESCOVITZ, FEESE, MICOZZIE, SCRIMENTI AND
WEBER, APRIL 29, 2003
AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 17, 2003
AN ACT
1 Amending the act of February 19, 1980 (P.L.15, No.9), entitled
2 "An act establishing the State Real Estate Commission and
3 providing for the licensing of real estate brokers and
4 salesmen," further providing for licensing requirements and
5 penalties.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 201 of the act of February 19, 1980
9 (P.L.15, No.9), known as the Real Estate Licensing and
10 Registration Act, is amended by adding definitions to read:
1 Section 201. Definitions.
2 The following words and phrases when used in this act shall
3 have, unless the context clearly indicates otherwise, the
4 meanings given to them in this section:
5 * * *
6 "License." The term includes both a standard license and a
7 reciprocal license.
8 "Licensee." A person who holds a standard license or a
9 reciprocal license.
10 * * *
11 "Reciprocal license." A license issued under section 602(a)
12 through (e).
13 * * *
14 "Standard license." Any license issued under this act that
15 is not a reciprocal license.
16 * * *
17 SECTION 1.1. SECTION 501(A) OF THE ACT, AMENDED JULY 1, 1990 <--
18 (P.L.304, NO.69), IS AMENDED TO READ:
19 SECTION 501. REPUTATION; INACTIVE LICENSEE; REVOKED LICENSE.
20 (A) LICENSES SHALL BE GRANTED ONLY TO AND RENEWED ONLY FOR
21 PERSONS WHO BEAR A GOOD REPUTATION FOR HONESTY, TRUSTWORTHINESS,
22 INTEGRITY AND COMPETENCE TO TRANSACT THE BUSINESS OF BROKER,
23 SALESPERSON, CEMETERY BROKER, CEMETERY SALESPERSON, CAMPGROUND
24 MEMBERSHIP SALESPERSON, TIME-SHARE SALESPERSON, BUILDER-OWNER
25 SALESPERSON OR RENTAL LISTING REFERRAL AGENT, IN SUCH MANNER AS
26 TO SAFEGUARD THE INTEREST OF THE PUBLIC, AND ONLY AFTER
27 SATISFACTORY PROOF OF SUCH QUALIFICATIONS HAS BEEN PRESENTED TO
28 THE COMMISSION AS IT SHALL BY REGULATION REQUIRE. AN APPLICANT
29 FOR RENEWAL OF A RECIPROCAL LICENSE SHALL PROVIDE EVIDENCE THAT
30 THE APPLICANT CONTINUES TO HOLD A CURRENT LICENSE IN THE STATE
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1 WHERE THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS IS LOCATED.
2 * * *
3 Section 2. Section 601 of the act, amended June 29, 1990
4 (P.L.246, No.58), is amended to read:
5 Section 601. Duty of brokers, cemetery brokers and rental
6 listing referral agents to maintain office.
7 (a) Each [resident licensed] broker (which term in this
8 section shall include cemetery broker) and rental listing
9 referral agent who holds a standard license shall maintain a
10 fixed office within this Commonwealth. The current license of
11 such a rental listing referral agent or broker and of each
12 licensee employed by such broker or rental listing referral
13 agent shall be prominently displayed in an office of the broker
14 or rental listing referral agent. The address of the office
15 shall be designated on the current license. In case of removal
16 of a broker's office from the designated location, all licensees
17 registered at that location shall make application to the
18 commission before such removal or within ten days thereafter,
19 designating the new location of the office, and shall pay the
20 required fees, whereupon the commission shall issue a current
21 license at the new location for the unexpired period, if the new
22 location complies with the terms of this act. Each [licensed]
23 broker who holds a standard license shall maintain a sign on the
24 outside of his office indicating the proper licensed brokerage
25 name.
26 (b) If the applicant for a standard broker's license intends
27 to maintain more than one place of business within the
28 Commonwealth, he shall apply for and obtain an additional
29 license in his name at each office. Every such application shall
30 state the location of such office. Each office shall be under
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1 the direction and supervision of a manager who is either the
2 broker or an associate broker: Provided, however, That such
3 broker or an associate broker may direct and supervise more than
4 one office.
5 Section 3. Section 602 of the act, amended March 29, 1984
6 (P.L.162, No.32), is amended to read:
7 Section 602. [Nonresident licensees.] Reciprocal licenses.
8 [Any nonresident of this Commonwealth who meets the
9 equivalent experience requirements and other standards and
10 qualifications, as the commission shall by rule provide, shall
11 qualify for a license under this act.]
12 (a) Any person who holds a current license to provide real
13 estate services issued by another state and whose principal
14 place of business for the provision of those services is outside
15 of this Commonwealth may be issued a reciprocal license under
16 this act in accordance with this section. The reciprocal license
17 shall be the type of license issued under another section of <--
18 this act that the commission determines is most similar to the
19 type of license issued by the other state.
20 (b) Obtaining a reciprocal license shall constitute
21 sufficient contact with this Commonwealth for the exercise of
22 personal jurisdiction by the commission and the courts of this
23 Commonwealth over the licensee in any action or proceeding
24 arising out of acts or omissions by the licensee:
25 (1) in this Commonwealth; or
26 (2) relating to an actual or proposed transaction
27 involving real property located in this Commonwealth.
28 (c) The commission shall issue a reciprocal license upon the <--
29 filing with it of an application consisting of:
30 (1) a duly certified copy of a current license issued to
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1 the applicant by another state;
2 (2) a verified statement that, to the knowledge of the
3 applicant, the applicant is not the subject of discipline or
4 a current investigation or proceeding alleging misconduct
5 under a licensing or criminal law of either this Commonwealth
6 or another state;
7 (3) a verified statement that the applicant has reviewed
8 and is familiar with this act and the rules and regulations
9 of the commission and that the applicant agrees to be bound
10 by this act and those rules and regulations;
11 (C) THE COMMISSION SHALL ISSUE A RECIPROCAL LICENSE UPON <--
12 RECEIPT OF:
13 (1) A DULY CERTIFIED COPY OF A CURRENT LICENSE ISSUED TO
14 THE APPLICANT BY THE STATE IN WHICH THE PRINCIPAL PLACE OF
15 BUSINESS OF THE APPLICANT IS LOCATED, OR A CERTIFIED
16 STATEMENT THAT THE APPLICANT HOLDS A CURRENT LICENSE IN THAT
17 STATE, IN EITHER CASE SENT TO THE COMMISSION BY THE
18 APPROPRIATE LICENSING BODY IN THAT STATE;
19 (2) A CERTIFIED STATEMENT SENT TO THE COMMISSION BY THAT
20 LICENSING BODY DESCRIBING ANY DISCIPLINE PREVIOUSLY IMPOSED
21 ON THE APPLICANT; AND
22 (3) A VERIFIED STATEMENT FROM THE APPLICANT THAT:
23 (I) TO THE KNOWLEDGE OF THE APPLICANT, THE APPLICANT
24 IS NOT THE SUBJECT OF DISCIPLINE OR A CURRENT
25 INVESTIGATION OR PROCEEDING ALLEGING MISCONDUCT UNDER A
26 LICENSING LAW OR CRIMINAL LAW OF EITHER THIS COMMONWEALTH
27 OR ANOTHER JURISDICTION; AND
28 (II) THE APPLICANT HAS REVIEWED AND IS FAMILIAR WITH
29 THIS ACT AND THE RULES AND REGULATIONS OF THE COMMISSION
30 AND THAT THE APPLICANT AGREES TO BE BOUND BY THIS ACT AND
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1 THOSE RULES AND REGULATIONS;
2 (4) payment of a fee in the same amount as the fee
3 required to be paid in connection with the issuance of a
4 standard license of the same type; and
5 (5) a consent to service of process in a form prescribed
6 by the rules and regulations of the commission.
7 (d) This section may be implemented by written reciprocal
8 licensing agreements with the real estate licensing authorities
9 of other states as follows:
10 (1) The commission may enter into such an agreement
11 whenever the commission in its discretion determines that
12 such an agreement is necessary or desirable to provide
13 citizens of this Commonwealth with the opportunity to secure
14 a license in the other state substantially comparable to the
15 opportunity afforded to citizens of the other state by this
16 section.
17 (2) It shall not be necessary for the commission to have
18 entered into an agreement with a particular state in order
19 for the commission to issue a reciprocal license under this
20 section to an applicant from that state, SUBJECT TO THE <--
21 RESTRICTIONS IN SUBSECTION (E).
22 (3) A reciprocal license issued pursuant to an agreement
23 with another state shall remain in force, unless suspended or
24 revoked by the commission for just cause or for failure to
25 pay the biennial renewal fee, only as long as the agreement
26 is in effect.
27 (e) Whenever the commission determines that another state
28 does not offer reciprocal licensure opportunities to citizens of
29 this Commonwealth that are substantially comparable to those
30 afforded to citizens of that state by this section, the
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1 commission shall require applicants from that state who apply
2 for a reciprocal license to meet education, experience and
3 examination requirements substantially comparable to those
4 required by that state with respect to citizens of this
5 Commonwealth who seek reciprocal licensure in that state, except
6 that any requirements imposed under this subsection shall not
7 exceed the requirements for obtaining a license under this act
8 imposed on citizens of this Commonwealth.
9 (f) The commission shall include in its regulations PUBLISH <--
10 ANNUALLY IN THE PENNSYLVANIA BULLETIN AND MAKE AVAILABLE BOTH ON
11 REQUEST AND VIA THE INTERNET:
12 (1) a list of those states with which the commission has
13 signed agreements under subsection (d), and a summary of the
14 terms of each agreement; and
15 (2) a list of those states that the commission has
16 identified under subsection (e) as not offering substantially
17 comparable reciprocal licensure opportunities, and a
18 description of the additional requirements the commission has
19 determined are necessary to comply with that subsection.
20 (g) A person who holds a reciprocal license shall promptly
21 notify the commission if the person's principal place of
22 business for the provision of real estate services becomes
23 located in this Commonwealth. Upon receipt of the notice by the
24 commission, the person's reciprocal license shall be converted
25 into a standard license without further action on the part of
26 the licensee.
27 (h) A reciprocal license shall be equivalent to a standard
28 license, except that a person holding a reciprocal license:
29 (1) shall not be eligible to be a member of the
30 commission; and
20030H1000B2090 - 7 -
1 (2) shall be exempt from the requirements of sections
2 404.1, 501(b), 513 and 603 AND 513. <--
3 (i) An associate broker, salesperson, campground membership
4 salesperson or time-share salesperson holding a reciprocal
5 license shall not conduct business in this Commonwealth except
6 in affiliation with a broker holding either a standard or a
7 reciprocal license.
8 (j) If the applicant for a reciprocal broker's license is a
9 corporation, partnership or association, the applicant must
10 designate in its application a broker of record who is an
11 individual holding a current reciprocal or standard broker's
12 license.
13 Section 4. Section 604(a) of the act is amended by adding
14 paragraphs to read:
15 Section 604. Prohibited acts.
16 (a) The commission may upon its own motion, and shall
17 promptly upon the verified complaint in writing of any person
18 setting forth a complaint under this section, ascertain the
19 facts and, if warranted, hold a hearing for the suspension or
20 revocation of a license or registration certificate or for the
21 imposition of fines not exceeding $1,000, or both. The
22 commission shall have power to refuse a license or registration
23 certificate for cause or to suspend or revoke a license or
24 registration certificate or to levy fines up to $1,000, or both,
25 where the said license has been obtained by false
26 representation, or by fraudulent act or conduct, or where a
27 licensee or registrant, in performing or attempting to perform
28 any of the acts mentioned herein, is found guilty of:
29 * * *
30 (29) Violating section 602.
20030H1000B2090 - 8 -
1 (30) Having been disciplined under a real estate
2 licensing law of another jurisdiction, including, but not
3 limited to, having a license suspended or revoked, a fine or
4 penalty imposed, or being censured or reprimanded publicly or
5 privately; except that the commission shall not have the
6 authority to levy a fine solely on the basis of this
7 paragraph.
8 * * *
9 Section 5. This act shall take effect in 60 days.
D1L63MEP/20030H1000B2090 - 9 -