Assigned to COM                                                                                                                           AS ENACTED

ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

ENACTED

FACT SHEET FOR H.B. 2085/S.B. 1095

real estate; employees; rent collection

Purpose

Allows an unlicensed person to collect rent and related fees on behalf of a licensed real estate broker or salesperson as part of the person's clerical duties. Directs the State Real Estate Commissioner (Commissioner) to require a person applying for a real estate, cemetery or membership camping broker or salesperson license to pass an examination specific to Arizona real estate laws.

Background

            The Commissioner issues real estate, cemetery or membership camping broker or salesperson licenses and determines if applicants meet statutory experience, education and competency requirements (A.R.S. § Title 32, Ch. 20). The Commissioner must verify through examination that an applicant for a real estate, cemetery or membership camping broker or salesperson license has an understanding of the: 1) obligations between principal and agent; 2) prescribed practices, principles and ethics of the respective discipline; and 3) Arizona real estate laws. A broker's license examination must have a broader scope and be more stringent than the salesperson's license examination (A.R.S. § 32-2124).

            A person must have real estate broker license or real estate salesperson license to act in the capacity of a real estate broker (A.R.S. § 32-2122). A real estate broker is a person who, for another and for compensation, engages in outlined transactions and acts relating to real estate, businesses and business opportunities, or timeshare interests, including a person who collects, or offers, attempts or agrees to collect, rent for the use of real estate, businesses and business opportunities or timeshare interests (A.R.S. § 32-2101).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Allows an unlicensed person to collect rent and related fees in person for the use of real estate as part of the person's clerical duties if the person works for a licensed real estate broker or salesperson, collects the rent on behalf of the licensee and provides a receipt upon payment.

2. Directs the Commissioner to require a person applying for a real estate, cemetery or membership camping broker or salesperson license under reciprocity licensure laws to pass an examination specific to Arizona laws relating to real estate before issuing the license.

3. Excludes, from the definition of real estate broker, a person who:

a) is not a licensee;

b) works for a real estate broker or real estate salesperson;

c) collects rent and related fees in person on behalf of the real estate broker or real estate salesperson for the use of real estate as part of the person's clerical duties; and

d) provides a receipt upon payment.

4. Makes technical and conforming changes.

5. Becomes effective on the general effective date.

House Action Senate Action

COM             1/19/21      DP     10-0-0-0                COM               1/27/21      DP     9-0-0

3^rd Read         1/28/21                 56-3-1                    3^rd Read          2/4/21                   29-0-1

                                                                                 (H.B. 2085 was substituted for S.B. 1095 on

                                                                                 3^rd Read)

Signed by the Governor 2/12/21

Chapter 10

Prepared by Senate Research

March 12, 2021

LB/MC/gs