Arizona 54th Legislature - 2nd Regular Session Status: Passed House 5 R cosponsors

HB 2351 — real estate; employee; rent collection

Last action — DPA

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 54th Legislature - 2nd Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

505 added · 214 removed

Plain-language change summary

The recent amendment to HB 2351 updates the definition of "advertising" in a section of the Arizona Revised Statutes. Specifically, it clarifies that advertising doesn't include activities related to cemetery property or interment services. This change is important because it separates leasing or selling cemetery properties from general real estate advertising regulations, which could streamline processes for those involved in cemetery services.

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HB2351 - 542R - S-Commerce-Proposed   Fifty-fourth Legislature                                                 Commerce Second Regular Session                                                  H.B.
HB2351 - 542R - H Ver       House Engrossed         State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session         HOUSE BILL 2351       AN ACT   amending sections 32‑2101 and 32‑2122, Arizona Revised Statutes;
  PROPOSED SENATE AMENDMENTS TO H.B.
relating to real estate.
2351 (Reference to House engrossed bill)   Page 11, after line 12, insert:
    (TEXT OF BILL BEGINS ON NEXT PAGE)   Be it enacted by the Legislature of the State of Arizona:
"Sec.
Section 1.  Section 32-2101, Arizona Revised Statutes, is amended to read:
3.  Section 32-2124, Arizona Revised Statutes, is amended to read:
START_STATUTE32-2101.  Definitions In this chapter, unless the context otherwise requires:
START_STATUTE32-2124.  Qualifications of licensees A.  Except as otherwise provided in this chapter, the commissioner shall require proof, through the application or otherwise, as the commissioner deems advisable with due regard to the interests of the public, as to the honesty, truthfulness, good character and competency of the applicant and shall require that the applicant has:
1.  "Acting in concert" means evidence of collaborating to pursue a concerted plan.
1.  If for an original real estate broker's license, at least three years' actual experience as a licensed real estate salesperson or real estate broker during the five years immediately preceding the time of application.
2.  "Advertising" means the attempt by publication, dissemination, exhibition, solicitation or circulation, oral or written, or for broadcast on radio or television to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in lands subject to this chapter, including the land sales contract to be used and any photographs, drawings or artist's presentations of physical conditions or facilities existing or to exist on the property.  Advertising does not include:
2.  If for an original cemetery broker's license, either a current real estate broker's license, or if the applicant does not have a current real estate broker's license, at least three years' actual experience as a cemetery salesperson or broker or as a licensed real estate salesperson or broker during the five years immediately preceding the time of application.
(a)  Press releases or other communications delivered to newspapers, periodicals or other news media for general information or public relations purposes if no charge is made by the newspapers, periodicals or other news media for the publication or use of any part of these communications.
3.  If for an original membership camping broker's license, either a current real estate broker's license, or if the applicant does not have a current real estate broker's license, at least three years' actual experience as a licensed membership camping salesperson or broker or as a licensed real estate salesperson or broker during the five years immediately preceding the time of application.
(b)  Communications to stockholders as follows:
4.  If for any type of broker's or salesperson's license, not had a license denied within one year immediately preceding application in this state pursuant to section 32‑2153 or a similar statute in any other state.
(i)  Annual reports and interim financial reports.
5.  If for any type of broker's or salesperson's license, not had a license revoked within the two years immediately preceding application in this state pursuant to section 32‑2153 or a similar statute in any other state.
(ii)  Proxy materials.
6.  If reapplying for a license that expired more than one year before the date of application, met all current education and experience requirements and retakes the examination the same as if the applicant were applying for the license for the first time.
(iii)  Registration statements.
7.  If for a real estate, cemetery or membership camping broker's license, other than a renewal application, an equivalent amount of active experience within the immediately preceding five years in the field in which the applicant is applying for the broker's license, as a substitute for the licensed active experience otherwise required in paragraphs 1, 2 and 3 of this subsection.  The licensed active experience required may be met if the applicant can demonstrate to the commissioner's satisfaction that the applicant has an equivalent amount of experience in the past five years that, if the applicant had held a license, would have been sufficient to fulfill the licensed experience requirement.
(iv)  Securities prospectuses.
B.  All applicants other than renewal applicants under section 32‑2130 for a real estate salesperson's license shall show evidence satisfactory to the commissioner that they have completed a real estate salesperson's course that is prescribed and approved by the commissioner and that is at least ninety classroom hours, or its equivalent, of instruction in a real estate school certified by the commissioner and have satisfactorily passed an examination on the course.  An applicant may complete the real estate salesperson's course prescribed by this subsection through an online course if the online course is offered by a real estate school that is certified by the commissioner, but the applicant must complete an examination on the online course in person.  In no case shall the real estate salesperson's course completion or its equivalent be more than ten years before the date of application unless, at the time of application, the commissioner determines in the commissioner's discretion that the applicant has work experience in a real estate‑related field and education that together are equivalent to the prelicensure education requirement.  The commissioner may waive all or a portion of the prelicensure course requirement, other than the twenty‑seven-hour Arizona‑specific course, for an applicant who holds a current real estate license in another state.
(v)  Applications for listing of securities on stock exchanges.
C.  All applicants other than renewal applicants under section 32‑2130 for a real estate broker's license shall show evidence satisfactory to the commissioner that they have completed a real estate broker's course that is prescribed and approved by the commissioner and that is at least ninety classroom hours, or the equivalent, of instruction in a real estate school certified by the commissioner and have satisfactorily passed an examination on the course.  An applicant may complete the real estate broker's course prescribed by this subsection through an online course if the online course is offered by a real estate school that is certified by the commissioner, but the applicant must complete an examination on the online course in person.  In no case shall the real estate broker's course completion or its equivalent be more than ten years before the date of application unless, at the time of application, the commissioner determines in the commissioner's discretion that the applicant has work experience in a real estate‑related field and education that together are equivalent to the prelicensure education requirement.  The commissioner may waive all or a portion of the prelicensure course requirement, other than the twenty‑seven-hour Arizona‑specific course, for an applicant who holds a current real estate license in another state.
(vi)  Prospectuses.
D.  Before receiving any license provided for by this chapter, an applicant must be at least eighteen years of age.
(vii)  Property reports.
E.  The commissioner shall ascertain by a written, electronic or other examination method that an applicant for a real estate license has:
(viii)  Offering statements.
1.  An appropriate knowledge of the English language, including reading, writing and spelling, and of arithmetical computations common to real estate practices.
3.  "Affiliate" means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with the person specified.
2.  At a minimum, an understanding of the general purpose and legal effect of any real estate practices, principles and related forms, including agency contracts, real estate contracts, deposit receipts, deeds, mortgages, deeds of trust, security agreements, bills of sale, land contracts of sale and property management, and of any other areas that the commissioner deems necessary and proper.
4.  "Associate broker" means a licensed broker who is employed by another broker.  Unless otherwise specifically provided, an associate broker has the same license privileges as a salesperson.
3.  A thorough understanding of the obligations between principal and agent, the principles of real estate and business opportunity practice, and the applicable canons of business ethics, the provisions of this chapter and rules made under this chapter.
5.  "Barrier" means a natural or man-made geographical feature that prevents parcels of land from being practicably, reasonably and economically united or reunited and that was not caused or created by the owner of the parcels.
4.  An appropriate knowledge of other real estate practices and principles as determined by the commissioner.
6.  "Blanket encumbrance" means any mortgage, any deed of trust or any other encumbrance or lien securing or evidencing the payment of money and affecting more than one lot or parcel of subdivided land, or an agreement affecting more than one lot or parcel by which the subdivider holds the subdivision under an option, contract to sell or trust agreement.  Blanket encumbrance does not include taxes and assessments that are levied by public authority.
5.  A THOROUGH UNDERSTANDING OF THE PROVISIONS OF THIS CHAPTER AND RULES MADE UNDER THIS CHAPTER.
7.  "Board" means the state real estate advisory board.
THE EXAMINATION PRESCRIBED BY THIS PARAGRAPH SHALL BE ADMINISTERED SEPARATELY FROM ANY OTHER EXAMINATION.
8.  "Broker", when used without modification, means a person who is licensed as a broker under this chapter or who is required to be licensed as a broker under this chapter.
F.  The commissioner shall ascertain by a written, electronic or other examination method that an applicant for a license as a cemetery broker or a cemetery salesperson has:
9.  "Business broker" means a real estate broker who acts as an intermediary or agent between sellers or buyers, or both, in the sale or purchase, or both, of businesses or business opportunities where a lease or sale of real property is either a direct or incidental part of the transaction.
1.  Appropriate knowledge of the English language, including reading, writing and spelling, and of elementary arithmetic.
10.  "Camping site" means a space that is designed and promoted for the purpose of locating any trailer, tent, tent trailer, pickup camper or other similar device used for camping.
2.  A general understanding of:
11.  "Cemetery" or "cemetery property" means any one, or a combination of more than one, of the following in a place that is used, or intended to be used, and dedicated for cemetery purposes:
(a)  Cemetery associations, cemetery corporations and duties of cemetery directors and officers.
(a)  A burial park, for earth interments.
(b)  Plot ownership, deeds, certificates of ownership, contracts of sale, liens and leases.
(b)  A mausoleum, for crypt or vault entombments.
(c)  Establishing, dedicating, maintaining, managing, operating, improving, preserving and conducting a cemetery.
(c)  A crematory, or a crematory and columbarium, for cinerary interments.
(d)  The provisions of this chapter and rules made under this chapter relating to the organization and regulation of cemeteries and the licensing and regulation of cemetery brokers and cemetery salespersons.
(d)  A cemetery plot, including interment rights, mausoleum crypts, niches and burial spaces.
3.  A general understanding of the obligations between principal and agent, the principles of cemetery practice and the canons of business ethics pertaining to the operation of cemeteries and the sale of cemetery property.
12.  "Cemetery broker" means a person other than a real estate broker or real estate salesperson who, for another, for compensation:
G.  The commissioner shall ascertain by a written, electronic or other examination method that an applicant for a license as a membership camping broker or a membership camping salesperson has:
(a)  Sells, leases or exchanges cemetery property or interment services of or for another, or on the person's own account.
1.  An appropriate knowledge of the English language, including reading, writing and spelling, and of elementary arithmetic.
(b)  Offers for another or for the person's own account to buy, sell, lease or exchange cemetery property or interment services.
2.  A general understanding of:
(c)  Negotiates the purchase and sale, lease or exchange of cemetery property or interment services.
(a)  The general purposes and legal effect of contracts and agency contracts.
(d)  Negotiates the purchase or sale, lease or exchange, or lists or solicits, or negotiates a loan on or leasing of cemetery property or interment services.
(b)  Establishing, maintaining, managing and operating a membership campground.
13.  "Cemetery salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed cemetery or real estate broker, or through and on behalf of a corporation, partnership or limited liability company that is licensed as a cemetery or real estate broker, to perform any act or transaction included in the definition of cemetery broker.
(c)  The provisions of this chapter and rules adopted under this chapter relating to the organization and regulation of membership campgrounds and the licensing and regulation of membership camping brokers and membership camping salespersons.
14.  "Commissioner" means the state real estate commissioner.
3.  A general understanding of the obligations between principal and agent and the canons of business ethics pertaining to the operation and promotion of membership campgrounds.
15.  "Common promotional plan" means a plan, undertaken by a person or a group of persons acting in concert, to offer lots for sale or lease.
H.  A renewal applicant for a real estate, cemetery or membership camping broker's or salesperson's license is not required to submit to an examination if the application is made within twelve months after the license expires and the license is not cancelled, terminated or suspended at the time of application.
If the land is offered for sale by a person or group of persons acting in concert, and the land is contiguous or is known, designated or advertised as a common unit or by a common name, the land is presumed, without regard to the number of lots covered by each individual offering, as being offered for sale or lease as part of a common promotional plan.  Separate subdividers selling lots or parcels in separately platted subdivisions within a master planned community shall not be deemed to be offering their combined lots for sale or lease as part of a common promotional plan.
I.  The examination for a broker's license shall be more exacting and stringent and of a broader scope than the examination for a salesperson's license.
16.  "Compensation" means any fee, commission, salary, money or other valuable consideration for services rendered or to be rendered as well as the promise of consideration whether contingent or not.
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J.  An applicant for a real estate salesperson's or broker's license who currently holds at least an equivalent license in another state may be exempt from taking the national portion of the real estate examination if the applicant can demonstrate passing a national examination within the past five years that is satisfactorily similar to the one administered by the department.
17.  "Contiguous" means lots, parcels or fractional interests that share a common boundary or point.  Lots, parcels or fractional interests are not contiguous if they are separated by either of the following:
K.  Identification of each applicant whose licensing requirement was allowed to be met by an equivalent alternative pursuant to this section shall be included in the annual performance report presented by the board to the governor pursuant to section 32‑2104.
(a)  A barrier.
L.  An applicant for an original real estate salesperson's license, after completion of the requirements of subsection B of this section, shall provide certification to the department at the time of application evidencing completion of six hours of instruction in real estate contract law and contract writing.  This instruction shall include participation by the applicant in the drafting of contracts to purchase real property, listing agreements and lease agreements.
(b)  A road, street or highway that has been established by this state or by any agency or political subdivision of this state, that has been designated by the federal government as an interstate highway or that has been regularly maintained by this state or by any agency or political subdivision of this state and has been used continuously by the public for at least the last five years.
M.  The commissioner shall not issue a license to a person who has been convicted of a felony offense and who is currently incarcerated for the conviction, paroled or under community supervision and under the supervision of a parole or community supervision officer or who is on probation as a result of the conviction."END_STATUTE Amend title to conform     Michelle Ugenti-Rita   23511211.docx 03/04/2020 12:11 PM S:
18.  "Control" or "controlled" means a person who, through ownership, voting rights, power of attorney, proxy, management rights, operational rights or other rights, has the right to make decisions binding on an entity, whether a corporation, a partnership or any other entity.
LB/gs    
19.  "Corporation licensee" means a lawfully organized corporation that is registered with the Arizona corporation commission and that has an officer licensed as the designated broker pursuant to section 32‑2125.
20.  "Department" means the state real estate department.
21.  "Designated broker" means the natural person who is licensed as a broker under this chapter and who is either:
(a)  Designated to act on behalf of an employing real estate, cemetery or membership camping entity.
(b)  Doing business as a sole proprietor.
22.  "Developer" means a person who offers real property in a development for sale, lease or use, either immediately or in the future, on the person's own behalf or on behalf of another person, under this chapter.  Developer does not include a person whose involvement with a development is limited to the listing of property within the development for sale, lease or use.
23.  "Development" means any division, proposed division or use of real property that the department has authority to regulate, including subdivided and unsubdivided lands, cemeteries, condominiums, timeshares, membership campgrounds and stock cooperatives.
24.  "Employing broker" means a person who is licensed or is required to be licensed as a:
(a)  Broker entity pursuant to section 32‑2125, subsection A.
(b)  Sole proprietorship if the sole proprietor is a broker licensed pursuant to this chapter.
25.  "Fractional interest" means an undivided interest in improved or unimproved land, lots or parcels of any size created for the purpose of sale or lease and evidenced by any receipt, certificate, deed or other document conveying the interest.  Undivided interests in land, lots or parcels created in the names of a husband and wife as community property, joint tenants or tenants in common, or in the names of other persons who, acting together as part of a single transaction, acquire the interests without a purpose to divide the interests for present or future sale or lease shall be deemed to constitute only one fractional interest.
26.  "Improved lot or parcel" means a lot or parcel of a subdivision on which lot or parcel there is a residential, commercial or industrial building or concerning which a contract has been entered into between a subdivider and a purchaser that obligates the subdivider directly, or indirectly through a building contractor, to complete construction of completely construct a residential, commercial or industrial building on the lot or parcel within two years from after the date on which the contract of sale for the lot is entered into.
27.  "Inactive license" means a license that is issued pursuant to article 2 of this chapter to a licensee who is on inactive status during the current license period and who is not engaged by or on behalf of a broker.
28.  "Lease" or "leasing" includes any lease, whether it is the sole, the principal or any incidental part of a transaction.
29.  "License" means the whole or part of any agency permit, certificate, approval, registration, public report, charter or similar form of permission required by this chapter.
30.  "Licensee" means a person to whom a license for the current license period has been granted under any provision of this chapter, and, for the purposes of section 32‑2153, subsection A, shall include includes original license applicants.
31.  "License period" means the two-year period beginning with the date of original issue or renewal of a particular license and ending on the expiration date, if any.
32.  "Limited liability company licensee" means a lawfully organized limited liability company that has a member or manager who is a natural person and who is licensed as the designated broker pursuant to section 32‑2125.
33.  "Lot reservation" means an expression of interest by a prospective purchaser in buying at some time in the future a subdivided or unsubdivided lot, unit or parcel in this state.  In all cases, a subsequent affirmative action by the prospective purchaser must be taken to create a contractual obligation to purchase.
34.  "Master planned community" means a development that consists of two or more separately platted subdivisions and that is either subject to a master declaration of covenants, conditions or restrictions, is subject to restrictive covenants sufficiently uniform in character to clearly indicate a general scheme for improvement improving or development of developing real property or is governed or administered by a master owner's association.
35.  "Member" means a member of the real estate advisory board.
36.  "Membership camping broker" means a person, other than a salesperson, who, for compensation:
(a)  Sells, purchases, lists, exchanges or leases membership camping contracts.
(b)  Offers to sell, purchase, exchange or lease membership camping contracts.
(c)  Negotiates or offers, attempts or agrees to negotiate the sale, purchase, exchange or lease of membership camping contracts.
(d)  Advertises or holds himself out as being engaged in the business of selling, buying, exchanging or leasing membership camping contracts or counseling or advising regarding membership camping contracts.
(e)  Assists or directs in the procuring of prospects calculated or intended to result in the sale, purchase, listing, exchange or lease of membership camping contracts.
(f)  Performs any of the foregoing acts as an employee or on behalf of a membership camping operator or membership contract owner.
37.  "Membership camping contract" means an agreement that is offered or sold in this state evidencing a purchaser's right or license to use the camping or outdoor recreation facilities of a membership camping operator and includes a membership that provides for this use.
38.  "Membership camping operator" means an enterprise, other than one that is tax exempt under section 501(c)(3) of the internal revenue code of 1986, as amended, that solicits membership paid for by a fee or periodic payments and has as one of its purposes camping or outdoor recreation, including the use of camping sites primarily by members.
Membership camping operator does not include camping or recreational trailer parks that are open to the general public and that contain camping sites rented for a per use fee or a mobile home park.
39.  "Membership camping salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed membership camping or real estate broker, or by or on behalf of a corporation, partnership or limited liability company that is licensed as a membership camping or real estate broker, to perform any act or participate in any transaction in a manner included in the definition of membership camping broker.
40.  "Online course" means prelicensure education that is a planned learning experience with a geographic separation that may be synchronous or asynchronous, that does not require real-time interaction between a student and an instructor and that uses a platform with self‑paced or prerecorded lessons and materials that a student can access via the internet to proceed at the student's own pace.
41.  "Partnership licensee" means a partnership with a managing general partner who is licensed as the designated broker pursuant to section 32‑2125.
42.  "Permanent access", as required under article 4 of this chapter, means permanent access from the subdivision to any federal, state or county highway.
43.  "Perpetual care" or "endowed care" means the maintenance maintaining and care of caring, in all places where interments have been made, of for the trees, shrubs, roads, streets and other improvements and embellishments contained within or forming a part of the cemetery but does not include the maintenance maintaining or repair of repairing monuments, tombs, copings or other man‑made ornaments as associated with individual burial spaces.
44.  "Perpetual or endowed‑care cemetery" means a cemetery wherein in which lots or other burial spaces are sold or transferred under the representation that the cemetery will receive perpetual care or endowed care free of further cost to the purchaser after payment of the original purchase price for the lot, burial space or interment right.
45.  "Person" means any individual, corporation, partnership or company and any other form of multiple organization for carrying on business, foreign or domestic.
46.  "Private cemetery" means a cemetery or place that is not licensed under article 6 of this chapter, where burials or interments of human remains are made, in which sales or transfers of interment rights or burial plots are not made to the public and in which not more than ten interments or burials occur annually.
47.  "Promotion" or "promotional practice" means advertising and any other act, practice, device or scheme to induce directly or indirectly any person to enter into any obligation or acquire any title or interest in or use of real property subject to this chapter, including meetings with prospective purchasers, arrangements for prospective purchasers to visit real property, travel allowances and discount, exchange, refund and cancellation privileges.
48.  "Real estate" includes leasehold‑interests and any estates in land as defined in title 33, chapter 2, articles 1 and 2, regardless of whether located in this state.
49.  "Real estate broker" means a person, other than a salesperson, who, for another and for compensation:
(a)  Sells, exchanges, purchases, rents or leases real estate, businesses and business opportunities or timeshare interests.
(b)  Offers to sell, exchange, purchase, rent or lease real estate, businesses and business opportunities or timeshare interests.
(c)  Negotiates or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate, businesses and business opportunities or timeshare interests.
(d)  Lists or offers, attempts or agrees to list real estate, businesses and business opportunities or timeshare interests for sale, lease or exchange.
(e)  Auctions or offers, attempts or agrees to auction real estate, businesses and business opportunities or timeshare interests.
(f)  Buys, sells, offers to buy or sell or otherwise deals in options on real estate, businesses and business opportunities or timeshare interests or improvements to real estate, businesses and business opportunities or timeshare interests.
(g)  Collects or offers, attempts or agrees to collect rent for the use of real estate, businesses and business opportunities or timeshare interests.  This subdivision does not apply to a person who is not a licensee, who works for a real estate broker or a real estate salesperson, who collects in-person rent and related fees 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 who provides a receipt upon payment.
(h)  Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate, businesses and business opportunities or timeshare interests or counseling or advising regarding real estate, businesses and business opportunities or timeshare interests.
(i)  Assists or directs in the procuring of prospects,  that are calculated to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.
(j)  Assists or directs in the negotiation of negotiating any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate, businesses and business opportunities or timeshare interests.
(k)  Incident to the sale of real estate, businesses and business opportunities negotiates or offers, attempts or agrees to negotiate a loan secured or to be secured by any mortgage or other encumbrance on or transfer of real estate, businesses and business opportunities or timeshare interests subject to section 32‑2155, subsection C.  This subdivision does not apply to mortgage brokers as defined in and subject to title 6, chapter 9, article 1.
(l)  Engages in the business of assisting or offering to assist another in filing an application for the purchase or lease of, or in locating or entering on, lands owned by the state or federal government.
(m)  Claims, demands, charges, receives, collects or contracts for the collection of to collect an advance fee in connection with any employment enumerated in this section, including employment undertaken to promote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospective tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits connected therewith.  This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are specifically exempt from applicability of this article under section 32‑2121.
(n)  Engages in any of the acts listed in subdivisions (a) through (m) of this paragraph for the sale or lease of other than real property if a real property sale or lease is a part of, contingent on or ancillary to the transaction.
(o)  Performs any of the acts listed in subdivisions (a) through (m) of this paragraph as an employee of, or in behalf of, the owner of real estate, or interest in the real estate, or improvements affixed on the real estate, for compensation.
(p)  Acts as a business broker.
50.  "Real estate sales contract" means an agreement in which one party agrees to convey title to real estate to another party on the satisfaction of specified conditions set forth in the contract.
51.  "Real estate salesperson" means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation engaged by or on behalf of a licensed real estate broker, or by or on behalf of a limited liability company, partnership or corporation that is licensed as a real estate broker, to perform any act or participate in any transaction in a manner included in the definition of real estate broker subject to section 32‑2155.
52.  "Sale" or "lease" includes every disposition, transfer, option or offer or attempt to dispose of or transfer real property, or an interest, use or estate in the real property, including the offering of the property as a prize or gift if a monetary charge or consideration for whatever purpose is required.
53.  "Salesperson", when used without modification, means a natural person who acts on the person's own behalf or through and on behalf of a professional limited liability company or a professional corporation licensed under this chapter or any person required to be licensed as a salesperson under this chapter.
54.  "School" means a person or entity that offers a course of study towards completion of the education requirements leading to licensure or renewal of licensure under this chapter.
55.  "Stock cooperative" means a corporation to which all of the following apply:
(a)  The corporation is formed or used to hold title to improved real property in fee simple or for a term of years.
(b)  All or substantially all of the shareholders of the corporation each receive a right of exclusive occupancy in a portion of the real property to which the corporation holds title.
(c)  The right of occupancy may only be transferred with the concurrent transfer of the shares of stock in the corporation held by the person having the right of occupancy.
56.  "Subdivider" means any person who offers for sale or lease six or more lots, parcels or fractional interests in a subdivision or who causes land to be subdivided into a subdivision for the subdivider or for others, or who undertakes to develop a subdivision, but does not include a public agency or officer authorized by law to create subdivisions.
57.  "Subdivision" or "subdivided lands":
(a)  Means improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests.  (b)  Includes a stock cooperative, lands divided or proposed to be divided as part of a common promotional plan and residential condominiums as defined in title 33, chapter 9.
(c)  Does not include:
(i)  Leasehold offerings of one year or less.
(ii)  The division or proposed division of land located in this state into lots or parcels each of which is or will be thirty‑six acres or more in area including to the centerline of dedicated roads or easements, if any, contiguous to the lot or parcel.
(iii)  The leasing of agricultural lands or apartments, offices, stores, hotels, motels, pads or similar space within an apartment building, industrial building, rental recreational vehicle community, rental manufactured home community, rental mobile home park or commercial building.
(iv)  The subdivision into or development of parcels, plots or fractional portions within the boundaries of a cemetery that has been formed and approved pursuant to this chapter.
(v)  A sale or lease of a lot, parcel or fractional interest that occurs ten or more years after the sale or lease of another lot, parcel or fractional interest if the other lot, parcel or fractional interest is not subject to this article and is treated as an independent parcel unless, on investigation by the commissioner, there is evidence of intent to subdivide.
58.  "Timeshare" or "timeshare property" means real property ownership or right of occupancy in real property pursuant to article 9 of this chapter.  For the purposes of this chapter, a timeshare is not a security unless it meets the definition of a security under section 44‑1801.
59.  "Trustee" means:
(a)  A person who is designated under section 32‑2194.27 to act as a trustee for an endowment‑care cemetery fund.
(b)  A person holding bare legal title to real property under a subdivision trust.  A trustee shall not be deemed to be a developer, subdivider, broker or salesperson within this chapter.
60.  "Unimproved lot or parcel" means a lot or parcel of a subdivision that is not an improved lot or parcel.
61.  "Unsubdivided lands":
(a)  Means land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests and the lots or parcels are thirty‑six acres or more each but less than one hundred sixty acres each, or that are offered, known or advertised under a common promotional plan for sale or lease, except that agricultural leases shall not be included in this definition.
(b)  Includes any land that is sold and that would otherwise constitute the sixth lot, parcel or fractional interest if the sale occurs ten or more years after the earliest of the previous five sales and if all of the sales consist of property that was originally contained within the same parcel that is thirty‑six acres or more and less than one hundred sixty acres.
END_STATUTE Sec. 2.  Section 32-2122, Arizona Revised Statutes, is amended to read:
START_STATUTE32-2122.  License required of brokers and salespersons A.  This article applies to any person acting in the capacity of a:
1.  Real estate broker.
2.  Real estate salesperson.
3.  Cemetery broker.
4.  Cemetery salesperson.
5.  Membership camping broker.
6.  Membership camping salesperson.
B.  It shall be is unlawful for any person, corporation, partnership or limited liability company to engage in any business, occupation or activity listed in subsection A of this section without first obtaining a license as prescribed in this chapter and otherwise complying with the provisions of this chapter.
C.  A person, corporation, partnership or limited liability company that is licensed as a salesperson or broker pursuant to this article or that is engaging in any work for which a license is required under this article is subject to the requirements of this chapter in the performance of performing any acts included in the definition of a broker unless otherwise provided in this chapter.
D.  Except as otherwise provided in this subsection, any act, in consideration or expectation of compensation, which that is included in the definition of a real estate broker, cemetery broker or membership camping broker, whether the act is an incidental part of a transaction or the entire transaction, constitutes the person offering or attempting to perform the act of a real estate broker or real estate salesperson, a cemetery broker or cemetery salesperson or a membership camping broker or a membership camping salesperson within the meaning of this chapter.  A person who is not a licensee may collect in-person rent and related fees for the use of real estate as part of the person's clerical duties if the person works for a licensee, the rent collection is on behalf of the licensee and a receipt is provided upon payment.
END_STATUTE
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Action History

  1. DPA

  2. Senate Second Reading

  3. Senate First Reading

  4. Transmit to Senate

  5. PASSED

  6. DPA

  7. House Placed on Consent Calendar

  8. DP

  9. House Second Reading

  10. House First Reading.

Sponsors

Sponsorship breakdown

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1 sponsors · 13 co-sponsors · 79 not signed on

Sponsors (1)

Co-sponsors (13)

Not signed on (79)

79 members have not signed on to this bill.

Show all 79 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed

Passed 60 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 44000
Republican 12000
Democrat 4000
Total 60000
% of votes cast 100%0%0%0%
How each member voted (60)
Member Party Vote
Aaron Lieberman — Yea
Amish Shah — Yea
Andres Cano — Yea
Anthony T. Kern — Yea
Arlando Teller — Yea
Athena Salman — Yea
Becky A. Nutt — Yea
Ben Toma — Yea
Bob Thorpe — Yea
Bret Roberts — Yea
Charlene R. Fernandez — Yea
César Chávez — Yea
Daniel Hernandez — Yea
David L. Cook — Yea
Diego Espinoza — Yea
Diego Rodriguez — Yea
Domingo DeGrazia — Yea
Gerae Peten — Yea
Isela Blanc — Yea
Jay Lawrence — Yea
Jennifer Jermaine — Yea
Jennifer Longdon — Yea
Jennifer Pawlik — Yea
Joanne Osborne — Yea
John Fillmore — Yea
John M. Allen — Yea
Kelli Butler — Yea
Kelly Townsend — Yea
Kirsten Engel — Yea
Lorenzo Sierra — Yea
Michelle Udall — Yea
Nancy Barto — Yea
Noel W. Campbell — Yea
Pamela Powers Hannley — Yea
Randall Friese — Yea
Raquel Terán — Yea
Regina E. Cobb — Yea
Reginald Bolding — Yea
Richard C. Andrade — Yea
Robert Meza — Yea
Russell Bowers — Yea
Steve Pierce — Yea
Travis W. Grantham — Yea
Walter Blackman — Yea
Alma Hernandez Democrat Yea
Denise “Mitzi” Epstein Democrat Yea
Myron Tsosie Democrat Yea
Rosanna Gabaldón Democrat Yea
Frank Carroll Republican Yea
Gail Griffin Republican Yea
Jeff Weninger Republican Yea
John Kavanagh Republican Yea
Kevin Payne Republican Yea
Leo Biasiucci Republican Yea
Mark Finchem Republican Yea
Shawnna Bolick Republican Yea
Thomas "T.J." Shope Republican Yea
Timothy "Tim" Dunn Republican Yea
Tony Rivero Republican Yea
Warren Petersen Republican Yea

Official roll call →

Subjects

housing labor
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Frequently asked questions

Who sponsors HB 2351?
HB 2351 is sponsored by Frank Carroll (Republican), Timothy "Tim" Dunn (Republican), Mark Finchem (Republican), Walt Blackman (Republican), Michelle Udall, Warren Petersen, Joanne Osborne, Aaron Lieberman, Anthony T. Kern, Travis W. Grantham, David L. Cook, Shawnna Bolick, Ben Toma, and Jeff Weninger (Republican).
What is the current status of HB 2351?
This bill died with 54th Legislature - 2nd Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 2351?
Track HB 2351 free on One Click Politics — get push/email alerts when it moves.

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