PRINTER'S NO. 1998
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1572
Session of
2019
INTRODUCED BY POLINCHOCK, BERNSTINE, BROWN, T. DAVIS, GOODMAN,
HELM, JAMES, KORTZ, MENTZER, SCHMITT AND STAATS, JUNE 4, 2019
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, JUNE 4, 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," further providing for definitions; in powers and
duties of the State Real Estate Commission - general,
providing for temporary regulations; and, in duties of
licensees, further providing for prohibited acts and
providing for teams.
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 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:
* * *
"Team." Two or more licensees employed by the same broker
who:
(1) work together to provide real estate services for
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the benefit of a consumer; and
(2) hold themselves out as being a team.
"Team administrator." An individual who:
(1) is an active member of the team and is:
(i) a broker;
(ii) an associate broker; or
(iii) a salesperson who has held an active license
for at least the preceding three years and has completed:
(A) the courses in real estate law and brokerage
and office management required by the commission for
licensure as a broker; or
(B) other equivalent education as the commission
shall prescribe by regulation; and
(2) is responsible for:
(i) being the principal point of contact between the
team and the broker, if the team administrator is an
associate broker or salesperson;
(ii) monitoring compliance with section 610;
(iii) reasonably adequate oversight of the
activities of the team; and
(iv) monitoring compliance by the members of the
team and the nonlicensed staff of the team with the
policies of the team and the broker.
* * *
Section 2. The act is amended by adding a section to read:
Section 404.2. Temporary regulations.
(a) In order to facilitate the prompt implementation of
section 610, the commission may promulgate temporary regulations
which shall expire no later than three years following the
effective date of this section. Temporary regulations
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promulgated by the commission under this section shall not be
subject to:
(1) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(2) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the "Commonwealth Attorneys Act."
(3) The act of June 25, 1982 (P.L.633, No.181), known as
the "Regulatory Review Act."
(b) Temporary regulations promulgated by the commission
under this section must be published no later than 270 days
after the effective date of this section.
(c) The authority provided to the commission to adopt
temporary regulations under subsection (a) shall expire three
years from the effective date of this section. Regulations
adopted after that date shall be promulgated as provided by law.
Section 3. Section 604(a) of the act is amended by adding a
paragraph 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,
where the said license has been obtained by false
representation, or by fraudulent act or conduct, or where a
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licensee or registrant, in performing or attempting to perform
any of the acts mentioned herein, is found guilty of:
* * *
(32) Violating section 610.
* * *
Section 4. The act is amended by adding a section to read:
Section 610. Teams.
(a) Two or more licensees shall not hold themselves out as a
team unless they comply with this section.
(b) A licensee may be part of a team and also provide real
estate services not as part of a team.
(c) A team may be established only with the permission of
the broker.
(d) A team must have a team administrator.
(e) An agreement between a broker and a consumer, written
memorandum or written disclosure statement required by section
606.1(b) that relates to real estate services to be provided by
a licensee who is a member of a team shall state:
(1) Whether or not the licensee is providing the
services as part of the team.
(2) The name of the team and the name of each licensee
who is a member of the team.
(f) The existence and operation of a team, and the
performance of the functions of the team administrator, do not
affect:
(1) The responsibilities of the broker to supervise the
broker's employees under this act.
(2) The application of this chapter to actions or
inactions of the team or any of its members.
Section 5. This act shall take effect as follows:
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(1) The following provisions shall take effect
immediately:
(i) This section.
(ii) The addition of section 404.2 of the act.
(2) The remainder of this act shall take effect in one
year.
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