Bill Details - HB268 (2019)

HB 268 - AS AMENDED BY THE HOUSE

 

31Jan2019... 0036h

2019 SESSION

19-0456

10/04

 

HOUSE BILL 268

 

AN ACT relative to real estate commissions paid to unlicensed entities.

 

SPONSORS: Rep. Baroody, Hills. 43; Rep. Hinch, Hills. 21; Rep. DiSilvestro, Hills. 9; Sen. Carson, Dist 14

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill allows a real estate broker to share a commission with an unlicensed entity.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

31Jan2019... 0036h 19-0456

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to real estate commissions paid to unlicensed entities.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Real Estate Practice; Commission Payments to Unlicensed Entities.  Amend RSA 331-A by inserting after section 16-a the following new section:

331-A:16-b  Commission Payments to Unlicensed Entities.

I.  A principal broker may pay all or part of a fee, commission, or other compensation earned by his or her firm, broker, associate broker, or salesperson to a partnership, association, limited liability company, limited liability partnership, or corporation only if all of the following conditions are satisfied:

(a)  All of the partners, members, officers, or shareholders of any unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, hold a valid and active license issued under this chapter.

(b)  At least one of the partners, members, officers, or shareholders of the unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, is the licensee who earned the fee, commission, or other compensation.

(c)  The partnership, association, limited liability company, limited liability partnership, or corporation does not engage in any of the prohibited acts specified in RSA 331-A:26 and the partnership, association limited liability company, limited liability partnership, or corporation is registered to do business in New Hampshire.

(d)  The broker keeps a record of all of the following information for each transaction, for a period of 3 years after the date of the transaction:

(1)  The name of the licensee who earned the fee, commission, or other compensation;   

(2)  The amount of the fee, commission, or other compensation that was earned;

  (3)  The name of the partnership, association, limited liability company, limited liability partnership, or corporation to which the broker paid the licensee's fee, commission, or other compensation.

II.  Compliance with this section does not relieve a broker of any obligations to supervise a licensee, or of any other requirements of this chapter or rules adopted pursuant to this chapter.

III.  Compliance with this section does not render a broker or licensee exempt from any portion of the chapter, or immune from liability in a regulatory action against the broker or licensee for a violation of this chapter or rules adopted pursuant to this chapter.

2  Prohibited Conduct; Reference Added.  Amend RSA 331-A:26, XXIV to read as follows:

XXIV.  Paying or offering to pay valuable consideration, as defined by the commission, to any person not licensed under this chapter, except that valuable consideration may be shared with a licensed broker of another jurisdiction who is doing business regularly and legally within that broker's own jurisdiction, or shared in accordance with RSA 331-A:16-b.  No licensee shall knowingly pay a commission or other valuable consideration to a licensed person knowing that the licensee will in turn pay a portion or all of that which is received to a person who does not hold a valid real estate license.  A licensee who has allowed his or her license to expire or who has changed to inactive status or who has transferred to another responsible broker may receive compensation from the previous responsible broker for transactions in which the person participated during the time that the licensee was under the supervision of that responsible broker.

3  Effective Date.  This act shall take effect 60 days after its passage.

Docket

Date Status
Jan. 2, 2019 Introduced 01/02/2019 and referred to Commerce and Consumer Affairs HJ 2 P. 43
Jan. 17, 2019 Public Hearing: 01/17/2019 01:15 pm LOB 302
Jan. 22, 2019 Subcommittee Work Session: 01/22/2019 09:30 am LOB 302
Jan. 22, 2019 Executive Session: 01/22/2019 01:30 pm LOB 302
Jan. 31, 2019 Committee Report: Ought to Pass with Amendment # 2019-0036h for 01/31/2019 (Vote 18-0; CC) HC 9 P. 2
Committee Report: Ought to Pass with Amendment # 2019-0036h (Vote 18-0; CC)
Jan. 31, 2019 Amendment # 2019-0036h: AA VV 01/31/2019 HJ 4 P. 3
Jan. 31, 2019 Ought to Pass with Amendment 2019-0036h: MA VV 01/31/2019 HJ 4 P. 3
March 7, 2019 Introduced 03/07/2019 and Referred to Commerce; SJ 8

Action Dates

Date Body Type
Jan. 17, 2019 House Hearing
Jan. 22, 2019 House Exec Session
House Floor Vote
Jan. 31, 2019 House Floor Vote

Bill Text Revisions

HB268 Revision: 4536 Date: Dec. 28, 2018, 9:17 a.m.
HB268 Revision: 5315 Date: Jan. 31, 2019, 10:41 a.m.