DAR File No. 27951

Commerce, Real Estate

R162-2-1

Exam Application

NOTICE OF PROPOSED RULE

DAR File No.: 27951
Filed: 06/01/2005, 11:04
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

One purpose of the change is to require applicants for a license to meet a minimum educational level. Another purpose is to explicitly require that the prelicensing education must be completed prior to sitting for the licensing examination. A third purpose is to eliminate a provision that conflicts with a statutory change to Section 61-2-9 that was made by H.B. 357, 2004 General Session. (DAR NOTE: H.B. 357 is found at UT L 2004 Ch 129, and was effective 05/03/2004.)

Summary of the rule or change:

The changes are: 1) all applicants for a real estate license will be required to have at least a high school diploma, a General Education Development (G.E.D) diploma, or other equivalent education; 2) all applicants will be required to have completed any required prelicensing education prior to applying to sit for the licensing examination; and 3) current Subsection R162-2-1(2.1.1)(b) concerning activation of an inactive license is being deleted.

State statutory or constitutional authorization for this rule:

Subsection Section 61-2-6(1)

Anticipated cost or savings to:

the state budget:

None--A minimum educational requirement for real estate agents has no impact on the State budget, nor does a requirement that the prelicensing education and examination be taken in a specified order.

local governments:

None--The minimum educational requirement for real estate agents and the order in which they must complete their prelicensing education and prelicensing examination have no impact on local governments.

other persons:

The only persons impacted by this proposed rule change would be persons who would like to obtain a real estate license who have not earned a high school diploma, or a G.E.D. or other equivalent.

Compliance costs for affected persons:

Those persons who would like to apply for real estate licenses who do not have a high school diploma or a G.E.D., and who cannot prove they have other equivalent education, would incur the cost of obtaining a G.E.D. or other equivalent education.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule filing establishes education requirements for licensees and requires the education to be completed prior to taking the examination. Other than the impact to license applicants who have no high school diploma, GED, or equivalent, no fiscal impact to businesses is anticipated as a result of this filing. Russell C. Skousen, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-2. Exam and License Application Requirements.

R162-2-1. Qualifications for Licensure and Exam Application.

2.1.1 Minimum Age. All applicants shall be at least 18 years of age.

2.1.2 Formal Education Minimum. All applicants shall have at least a high school diploma, G.E.D., or equivalent as determined by the Commission.

2.1.3 Prelicensing Education. All applicants shall have completed any required prelicensing education before applying to sit for a licensing examination.

2.1.4 Exam application.[2.1. Any person 18 years of age or older desiring to become a licensed broker or sales agent] All applicants who desire to sit for a licensing examination shall deliver an application to sit for the examination, together with the applicable examination fee, to the testing service designated by the Division. If the applicant fails to take the [scheduled ]examination when scheduled, the fee will be forfeited.

2.1.4.1. Applicants previously licensed out-of-state.

[(a) ]If an applicant is now and has been actively licensed for the preceding two years in another state which has substantially equivalent licensing requirements and is either a new resident or a non-resident of this state, the Division shall waive the national portion of the exam.[

(b) If an applicant has been on an inactive status for any portion of the past two years he may be required to take both the national and Utah state portions of the exam.]

KEY: real estate business

[June 3, 1999]2005

Notice of Continuation June 12, 2002

61-2-5.5

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For questions regarding the content or application of this rule, please contact Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.