Assigned to COM                                                                                                                    FOR COMMITTEE

 

 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

FACT SHEET FOR h.b. 2172

 

real estate licensees; employers; compensation

Purpose

Allows a real estate licensee to accept employment and compensation from an employer, other than the employing broker, that meets outlined criteria.

Background

The Arizona Department of Real Estate is established to protect the public interest through the licensure and regulation of real estate brokers and salespersons in Arizona (A.R.S.
§ 32-2102). Statute outlines restrictions on employment and compensation relating to brokers and salespersons. A broker must employ and pay only active licensees and licensees must accept employment and compensation only from the legally licensed broker to whom the licensee is licensed (A.R.S. § 32-2155). The State Real Estate Commissioner (Commissioner) may deny, suspend or revoke a license if a licensee accepted compensation from any person other than: 1) the licensed broker to whom the licensee is licensed; 2) the licensed professional corporation of which the licensee is an officer and shareholder; or 3) the licensed professional limited liability company of which the licensee is a member (A.R.S. § 32-2153).

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

Provisions

1.   Allows a real estate licensee to accept employment and compensation from an employer, other than the employing broker, if all of the following apply:

a)   the employer holds a real estate license;

b)   the licensee is the employer's employee and receives a federal form W-2 wage and tax statement;

c)   the employer has the same employing broker as the licensee; and

d)   the employer obtains written permission from the employing broker to pay the licensee.

2.   Specifies that acceptance of compensation from any person who is not authorized to provide compensation is grounds for the Commissioner to deny, suspend or revoke a license.

3.   Makes technical and conforming changes.

4.   Becomes effective on the general effective date.

 

 

House Action

COM               2/1/22        DP     10-0-0-0

3rd Read          2/10/22                 54-0-6

Prepared by Senate Research

February 28, 2022

JT/sr