Regular Session 2019-2020 House Bill 0906 P.N. 1027

PRINTER'S NO. 1027

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

906

Session of

2019

INTRODUCED BY OTTEN, MURT, RABB, FREEMAN, KRUEGER, CIRESI,

VITALI, STURLA AND McCLINTON, MARCH 20, 2019

REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MARCH 20, 2019

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," in definitions, further providing for definitions;

in application of the 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; in qualifications and applications for

licenses and registration certificates, providing for land

agent registration certificate; and, in duties of licensees,

further providing for prohibited acts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "broker" in 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 and the

section is amended by adding definitions 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:

* * *

"Broker." Any person who, for another and for a fee,

commission or other valuable consideration:

(1) negotiates with or aids any person in locating or

obtaining for purchase, lease or an acquisition of interest

in any real estate;

(2) negotiates the listing, sale, purchase, exchange,

lease, time share and similarly designated interests,

financing or option for any real estate;

(3) manages any real estate;

(4) represents himself to be a real estate consultant,

counsellor, agent or finder;

(5) undertakes to promote the sale, exchange, purchase

or rental of real estate: Provided, however, That this

provision shall not include any person whose main business is

that of advertising, promotion or public relations;

(5.1) undertakes to perform a comparative market

analysis; or

(6) attempts to perform any of the above acts.

The term "broker" shall not include a land agent.

* * *

"Hydraulic fracturing chemical." A chemical substance or

combination of substances, including any chemicals and

proppants, that is intentionally added to a base fluid for

purposes of preparing a stimulation fluid for use in hydraulic

fracturing.

"Land agent." A person who, in the course and scope of the

person's business in this Commonwealth and on acting on the

person's own behalf or on behalf of a prospective lessee or

buyer, has been engaged in:

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(1) negotiating the acquisition or divestiture of oil,

natural gas or mineral rights, including the acquisition or

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

a pipeline;

(2) negotiating business agreements that provide for the

exploration for or development of oil, natural gas or

minerals;

(3) determining ownership of oil, natural gas or

minerals through research of public and private records;

(4) reviewing the status of title, curing title defects

and otherwise reducing title risk associated with ownership

of oil, natural gas or minerals;

(5) managing rights or obligations derived from

ownership of interests in oil, natural gas or minerals;

(6) activities to secure the unitization or pooling of

interests in oil, natural gas or minerals;

(7) negotiating rights of way, easements and other

nonpossesory land rights for public utilities, including

water, sewer, telecommunications, electric and natural gas;

(8) negotiating rights of way, easements and other

nonpossesory land right for pipelines transmitting oil,

natural gas, natural gas liquids, hydraulic fracturing

chemicals or by-products of the natural gas hydraulic

fracturing process.

* * *

"Natural gas." A fossil fuel consisting of a mixture of

hydrocarbon gases, primarily methane, and possibly including

ethane, propane, butane, pentane, carbon dioxide, oxygen,

nitrogen and hydrogen sulfide and other gas species. The term

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includes natural gas from oil fields known as associated gas or

casing head gas, natural gas fields known as nonassociated gas,

coal beds, shale beds and other formations. The term does not

include coal bed methane.

"Natural gas liquids." Hydrocarbons in natural gas that are

separated from the gas as liquids through the process of

Absorption, condensation, Adsorption or other methods in gas

processing of cycling plants.

"Oil." Hydrocarbons in liquid form at standard temperature

of 60 degrees Fahrenheit and pressure 14.7 PSIA, also referred

to as petroleum.

* * *

Section 2. Sections 301, 303 and 304(3) of the act 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 agent 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

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

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cemetery salesperson, campground membership salesperson, time-

share salesperson, builder-owner salesperson, rental listing

referral agent [or], cemetery company or land agent, 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 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

of such principal business, unless otherwise provided under

Subchapter K of Chapter 5.

* * *

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Section 3. 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 agents for which

registration is required under this act to instruct and

require its agents to bring prosecutions for unauthorized and

unlawful practice.

Section 4. Chapter 5 of the act is amended by adding a

subchapter to read:

SUBCHAPTER K

LAND AGENT REGISTRATION CERTIFICATE

Section 596.1. Requirements for registration certificate.

An applicant shall as a condition precedent to obtaining a

land agent 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 criminal history record information relating to the

applicant. The report of criminal history record

information shall be no more than one year old.

(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

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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) An applicant for a land agent registration certificate

shall submit an application in writing to the department upon a

form provided for the purpose by the department and shall

include such information as the commission shall require,

including, at a minimum, all of the following:

(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 jurisdiction in which

the applicant has had a similar registration or license

suspended or revoked.

(6) A statement of whether a pending judgment or tax

lien exists against the applicant.

(b) A registration certificate shall be renewed biennially.

application fee and a biennial renewal fee.

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Section 596.3. Establishment of registry.

The commission shall establish and maintain a registry of

land agents 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 agent's name, business address and

registration certificate.

Section 596.4. Proof of registration.

Upon first contact with a property owner, a land agent shall

provide to the property owner all of the following:

(1) A copy of his land agent registration certificate.

(2) The name, address, telephone number and web address

for the publicly accessible Internet website of the company

that employs the land agent.

(3) If applicable, the name, address, telephone number

and web address for the publicly accessible Internet website

of the prospective lessee or buyer that the land agent

represents.

Section 596.5. Time of contact.

A land agent may contact a property owner only from Monday

through Friday between 8 a.m. and 8 p.m. A land agent may not

contact a property owner on a national holiday.

Section 5. Section 604(a)(30) of the act 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

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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,

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 agent, 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 6. This act shall take effect in 60 days.

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