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SB 43 (BR 441) - C. Borders
AN ACT relating to real estate brokerage.
Amend KRS 324.111 to require maintenance of real estate broker escrow accounts in banks that have agreed to notify the commission in writing of any overdrafts in the escrow accounts; allow the commission to conduct emergency procedures when a licensee is alleged to have committed an escrow account violation; amend KRS 324.117 to prohibit misleading or inaccurate real estate advertising; create a duty for licensees to stop any forbidden customer or client advertising; amend KRS 324.150 to allow the commission to conduct an emergency hearing in accordance with KRS Chapter 13B when a licensee is alleged to have committed an escrow account violation; require the commission to promulgate administrative regulations to describe when emergency action is justified; amend KRS 324.151 to allow the commission to conduct emergency procedures when a licensee is alleged to have committed an escrow account violation; amend KRS 324.160 to require a licensee to meet a specified level of minimum services after entering into a written listing or brokerage agreement, to be defined by the commission through administrative regulations; declare that failing to provide minimum services constitutes gross negligence subject to discipline; amend KRS 324.170 to allow the commission to conduct emergency procedures when a licensee is alleged to have committed an escrow account violation; amend KRS 324.287 to permit the commission to charge fees not to exceed $30 for educational program accreditation and for certification as an approved instructor under certain circumstances; amend KRS 324.395 to create a March 31 expiration date every year for independent insurance coverage carried by those licensees who decline to use the commission's group policy; amend KRS 324.420 to exempt attorney's fees and damages for pain and suffering from eligible compensation to aggrieved parties under the real estate education, research, and recovery fund; KRS 324.990 to authorize a fine not to exceed $500 for a first offense of real estate brokerage without a license; allow a fine not to exceed $1,000 for each day of engaging in subsequent offenses of real estate brokerage without a license; direct that the District Court prosecute any charge for the first offense of engaging in real estate brokerage without a license; authorize the District Court to prosecute any misdemeanor offenses for violation of a provision of KRS Chapter 324; make technical corrections.
SB 43 - AMENDMENTS
SCS - Retain original provisions, except exempt bank service charges from the escrow account overdraft notification requirement; change the licensee duty to correct customer and client advertising violations into a duty to merely inform the commission instead; require licensees to include the advertising rules in any customer or client agreement; amend KRS 324.160 to eliminate the prohibition against offering prizes to influence a purchaser or prospective purchaser; delete the requirement that licensees meet a specified level of minimum services after entering into a written listing or brokerage agreement, and that failure to provide minimum services constitutes gross negligence subject to discipline; limit compensation from the real estate education, research, and recovery fund to actual financial harm specifically and directly related to the property purchase or condition, rather than specifically excluding attorney's fees and damages for pain and suffering; clarify that the District Court has original jurisdiction over the first offense of engaging in real estate brokerage without a license, as well as original jurisdiction over any misdemeanor violations of KRS Chapter 324.
HCS - Retain original provisions; exempt bank service charges from the escrow account overdraft notification requirement; alter the licensee's duties regarding misleading or inaccurate advertisements to be a documentation requirement for any noncompliant advertising or related commission inquiries rather than a duty to report on customers or clients; require licensees to include the advertising rules in any customer or client agreement; require a licensee to submit to the commission any documentation available to the licensee that shows it was not the licensee who placed any noncompliant advertisement; remove requirement that advertising warnings set out in any customer or client agreement be in all capital letters in no smaller type than the largest used in the body copy portion of the agreement; delete Section 10, relating to errors and omissions insurance; amend KRS 324.160 to eliminate the prohibition against offering prizes to influence a purchaser or prospective purchaser; delete the requirement that licensees meet a specified level of minimum services after entering into a written listing or brokerage agreement, and that failure to provide minimum services constitutes gross negligence subject to discipline; limit compensation from the real estate education, research, and recovery fund to actual financial harm specifically and directly related to the property purchase or condition, rather than specifically excluding attorney's fees and damages for pain and suffering; clarify that the District Court has original jurisdiction over the first offense of engaging in real estate brokerage without a license, as well as original jurisdiction over any misdemeanor violations of KRS Chapter 324; delete language indicating that a licensee does not have a duty to correct false or misleading advertisements by customers or clients; add new language to require the Department of Revenue to annually deposit into the Kentucky affordable housing trust fund all moneys in excess of $7 million received as delinquent property tax collections under KRS Chapter 134; specify that a county, urban-county, charter county, or consolidated local government which has established a local affordable housing trust fund shall be eligible to receive an annual allocation from the fund deposited to the Kentucky affordable housing trust fund; allocate funds to each eligible local affordable housing trust fund by multiplying the total amount of funds available by the percentage representing the amount of delinquent property taxes collected for properties located within the jurisdiction of the local government in proportion to the total annual amount of delinquent property taxes collected under KRS Chapter 134; exclude local governments that do not establish a local affordable housing trust fund from receiving delinquent tax property tax collection funds; amend KRS 142.010 to reduce the two $20 fee increases to $10 and specify that the fee shall be on all mortgages not first mortgages only; delete the sections detailing board makeup and duties and dissolution procedures; specify that the fiscal court or legislative body of a county may establish a local affordable housing trust fund through the adoption of an ordinance; amend KRS 198A.715 and KRS 154A.110 to conform; clarify that transfers from the delinquent property tax collections will begin in fiscal year 2006 - 2007, and that the transfers will be made within 60 days of the close of the fiscal year; define "delinquent property tax collections"; clarify the formula for distributions to local affordable housing trust funds; make technical corrections to conform.
HCA (1/Title, J. Wayne) - Make title amendment.
HFA (1, R. Rand) - Retain original provisions, except change the bank escrow account reporting requirement to "during the normal course of business" rather than "immediately"; alter the licensee's duties regarding misleading or inaccurate advertisements to be a documentation requirement for any noncompliant advertising or related commission inquiries rather than a duty to report on customers or clients; delete language indicating that a licensee does not have a duty to correct false or misleading advertisements by customers or clients; require a licensee to submit to the commission any documentation available to the licensee that shows that it was not the licensee who placed any noncompliant advertisement; remove requirement that advertising warnings set out in any customer or client agreement be in all capital letters in no smaller type than the largest used in the body copy portion of the agreement; delete Section 10, relating to errors and omissions insurance.
Jan 3-introduced in Senate
Jan 5-to Licensing, Occupations & Administrative Regulations (S)
Feb 7-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
Feb 8-2nd reading, to Rules
Feb 14-posted for passage in the Consent Orders of the Day for Wednesday, February 15, 2006
Feb 15-3rd reading, passed 37-0 with Committee Substitute
Feb 16-received in House
Feb 22-to Licensing and Occupations (H)
Feb 27-posted in committee
Mar 8-reported favorably, 1st reading, to Calendar
Mar 9-2nd reading, to Rules
Mar 15-posted for passage in the Regular Orders of the Day for Thursday, March 16, 2006
Mar 16-floor amendment (1) filed
Mar 21-taken from the Regular Orders of the Day; returned to Licensing and Occupations (H); reported favorably, to Rules with Committee Substitute, committee amendment (1-title) ; placed in the Orders of the Day; 3rd reading; Committee Substitute adopted; floor amendment (1) adopted ; returned to the Orders of the Day
Mar 22-passed 76-21 with Committee Substitute, committee amendment (1-title), floor amendment (1) ; received in Senate
Apr 10-posted for passage for concurrence in House Committee Substitute, committee amendment (1-title), floor amendment (1); Senate refused to concur in House Committee Substitute, committee amendment (1-title), floor amendment (1); received in House; posted for passage for receding from House Committee Substitute, committee amendment (1-title), floor amendment (1)
Vote History
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