Revision: Dec. 19, 2023, 4:14 p.m.
SB 480-FN - AS INTRODUCED
2024 SESSION
24-2890
09/05
SENATE BILL 480-FN
SPONSORS: Sen. Carson, Dist 14; Sen. Gannon, Dist 23; Sen. Perkins Kwoka, Dist 21; Rep. Thackston, Ches. 12
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill requires:
I. Any board or commission whose total number of active licensees exceeds 7,000 to have a dedicated, trained, and knowledgeable customer service administrator that works for the administrative section of the office of professional licensure and certification to respond to inquiries from the public and licensees.
II. Makes various amendments to allow for inactive real estate licenses.
III. Amends the education approval process for the real estate commission.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2890
09/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Administration of the Office of Professional Licensure and Certification; Funding. Amend RSA 310:5 by inserting after paragraph V the following new paragraph:
VI. Any board or commission whose total number of active licensees exceeds 7,000 shall have a dedicated customer service administrator who works for the administrative section of the office of professional licensure and certification and that is trained and possesses specific statutory and regulatory knowledge of that board or commission and that has a unique public facing phone number and email address to respond to inquiries from the public and licensees.
2 New Hampshire Real Estate Practice Act; Definitions. Amend RSA 331-A:2, VII through VIII to read as follows:
VII. "Person" means an individual, sole proprietorship, corporation, partnership, association, limited liability company, other business association, or other legal entity.
VII-a. "Post Licensing" refers to the period of time during which a natural person is licensed for the first time on or after February 1, 2020, commencing from the date the license is issued and terminating upon first renewal of that license.
[VII-a.] VII-b. "Principal" means the party or parties to a real estate transaction who contract the services of a real estate brokerage firm to act on their behalf in a fiduciary relationship.
VIII. "Principal broker" means the individual broker, including the broker designated by a corporation, partnership or association, whom the New Hampshire real estate commission holds responsible for the actions of licensees who are assigned to such individual broker.
3 New Section; New Hampshire Real Estate Practice Act; Inactive Licensure Status. Amend RSA 331-A by inserting after section 12-a the following new section:
331-A:12-b Inactive Licensure Status.
I. Any licensee who does not want to perform as a broker or salesperson as defined in RSA 331-A:2, and who wants to preserve his or her license while not engaged in any brokerage activities, including making any referrals for commission or for other compensation, or for the promise of such commission or other compensation, may surrender that license to the commission for placement on inactive status; provided, however, that while on inactive status, the licensee may be compensated by his or her previous responsible broker for brokerage activities or referrals for which the licensee participated while the licensee's license was active, pursuant to RSA 331-A:26, XXIV. The commission shall place the licensee on inactive status only upon a written request by the licensee. While on inactive status, the licensee shall renew the license biennially by satisfying any renewal requirements and continuing education requirements adopted by the commission, but shall not be required to maintain a place of business, or in the case of a licensed principal or managing broker, to maintain a surety bond pursuant to RSA 331-A:14.
II. Any licensee on inactive license status may have his or her license reinstated to active status by demonstrating compliance in the previous biennium with the continuing education requirements adopted by the commission and by requesting to change status from inactive to active, and, in the case of a licensed principal or managing broker, by providing evidence of a surety bond as required by RSA 331-A:14.
III. Inactive status shall also apply to a licensee who, voluntarily or involuntarily, becomes disaffiliated from his or her broker of record. The license shall return to active status once the licensee is affiliated with a broker of record.
4 New Hampshire Real Estate Practice Act; Programs of Study; Preparatory Education; Continuing Education. Amend the introductory paragraph in RSA 331-A:20, II to read as follows:
II. In reviewing and approving an application for a continuing education course, the commission shall assess the content with the primary purpose of assuring that real estate licensees possess the knowledge, skills, and competence necessary to perform the licensee's duties in the real estate business. The subject matter of the course must be directly related to real estate practice in New Hampshire. The commission may approve preparatory, continuing, and instructor education programs of study with a single application. Continuing education courses shall consist of the following:
5 Effective Date. This act shall take effect 60 days after its passage.
24-2890
Revised 12/18/23
SB 480-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the administration of professional licensure and certification.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | Indeterminable $0 to $5,000 | Indeterminable $0 to $5,000 | Indeterminable $0 to $5,000 | ||
Revenue Fund(s) | Office of Professional Licensure and Certification Fund | |||||
Expenditures | $0 | Indeterminable Increase $540,000+ | Indeterminable Increase $558,000+ | Indeterminable Increase $576,000+ | ||
Funding Source(s) | Office of Professional Licensure and Certification Fund | |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
• Does this bill provide sufficient funding to cover estimated expenditures? [X] No • Does this bill authorize new positions to implement this bill? [X] No
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METHODOLOGY:
The bill amends RSA 310:5, directing the Office of Professional Licensure and Certification (OPLC) to assign a specialized customer service administrator to boards or commissions with over 7,000 active licensees. This administrator would have deep knowledge of the board's rules and laws, along with a unique contact number and email for public and licensee inquiries.
Additionally, the bill adds RSA 331-A:12-b to reinstate inactive licensure status that was previously removed on September 1, 2023 (RSA 331-A:12-a). This allows brokers or salespeople who surrender their licenses to retain them without engaging in brokerage activities. While inactive, they can earn from past activities, renew their license every two years, and skip requirements like maintaining a business place or surety bond. This status also applies when a licensee disconnects from their broker of record, with the license reverting to active upon reconnecting with a broker.
The OPLC states this bill would require reassigning two Senior Board Administrators to serve two of the larger boards among the 6 within OPLC. This would lead to the hiring of 6 new Senior Board Administrators, labor grade 23, step 1, projecting a total starting annual salary and benefit cost of $540,000 in FY 2025, $558,000 in FY 2026, and $576,000 in FY 2027. Additionally, there might be additional overhead costs associated with these changes.
Lastly, the proposed reduction in the inactive license fee, set at half of the current fee stated in Administrative Rule Plc 1001, could potentially lead to a decrease in revenue for the Office. The amount is expected to be between $0 - $5,000 per a fiscal year.
This bill does not establish or provide an appropriation for new positions and it is assumed the fiscal impact of this bill would not occur until FY 2025.
AGENCIES CONTACTED:
Office of Professional Licensure and Certification