STATE OF WISCONSIN
REAL ESTATE EXAMINING BOARD
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IN THE MATTER OF RULEMAKING
:
ORDER OF THE
PROCEEDINGS BEFORE THE
:
REAL ESTATE EXAMINING BOARD
REAL ESTATE EXAMINING BOARD
:
ADOPTING
EMERGENCY
RULES
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The statement of scope for this rule, SS
016-15
, was approved by the Governor on
February 5, 2015
, published in
Register
710A3
on
February 16, 2015
,
and approved by
Real Estate Examining Board
on
February 26, 2015
.
ORDER
An order of the
Real Estate Examining Board
to
create
ch.
REEB 13
relating to
cooperative broker agreements.
Analysis prepared by the Department of Safety and Professional Services.
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FINDING OF EMERGENCY
The
Real Estate Examining Board
finds that an emergency exists and that this rule is necessary for the immediate preservation of the public peace, health, safety, or welfare. A statement of facts constituting the emergency is:
2013 Wisconsin Act 259
creating s.
452.137
relating to cooperation with out-of-state brokers and salesperson, as well as the rule-making authority, became effective on January 1, 2015. Without the rules in place addressing the cooperative agreement form and terms, there will be confusion for brokers, both in-state and out-of-state, as to what needs to be contained
in
such an agreement.
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ANALYSIS
Statutes interpreted:
s.
452.137
, Stats.
Explanation of agency authority:
Each examining board shall promulgate rules for its own guidance and for the guidance of the profession to which it pertains and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the particular trade of profession.
The board shall, by rule, establish the form
and terms of the cooperative agreement.
Related statute or rule:
None
Plain language analysis:
This rule requires the cooperative agreement between the licensed real estate broker and the out-of-state broker be in writing utilizing a board approved form. The terms must include the terms of cooperation and out-of-state broker’s compensation as well as provide that all client funds in connection with the transaction shall be deposited in a trust account maintained by the Wisconsin licensed broker.
Summary of, and comparison with, existing or proposed federal regulation:
None
Comparison with rules in adjacent states:
Illinois
:
Illinois
does not have rules relating to
out-of-state cooperative
broker
agreements.
Iowa
:
Iowa does not have rules relating to out-of-state broker cooperative agreements.
Michigan
:
Michigan does not have rules relating to out-of-state broker cooperative agreements.
Minnesota:
Minnesota does not have rules relating to out-of-state broker cooperative agreements.
Summary of factual data and analytical methodologies:
The Board
considered the format and process of other forms utilized by the real estate profession as well as inclusion of the statutory term requirements.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact
analysis
:
This rule does not place any requirements on small businesses. An economic impact analysis will be done as part of the permanent rule process.
Fiscal Estimate:
See attached Fiscal Estimate
Effect on small business
:
These proposed rules
do
not
have
an economic impact on small businesses, as defined in s.
227.114 (1)
, Stats. The Department’s Regulatory Review Coordinator may be contacted by email at
Eric.Esser
@wisconsin.gov
, or by calling (608) 266-
2435
.
Agency contact person
:
Sharon Henes
,
Administrative Rules Coordinator
, Department of
Safety and Professional Services
, Division of
Policy Development
, 1400 East Washington Avenue, Room 151, P.O. Box
8366
, Madison, Wisconsin 53708; telephone 608-
261-2377
; email at
Sharon.Henes
@wisconsin.gov
.
Place where comments are to be submitted and deadline for submission
:
Comments may be submitted to
Sharon Henes, Administrative Rules Coordinator
, Department of
Safety and Professional Services
, Division of
Policy Development
, 1400 East Washington Avenue, Room 151, P.O. Box
8366
, Madison, WI 53708-
8366
, or by email to
Sharon.Henes
@wisco
ns
in.gov
. Comments must be received on or before
April 16, 2015
to be included in the record of rule-making proceedings.
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TEXT OF RULE
Section 1
Chapter
REEB 13
is created to read:
COOPERATIVE AGREEMENT
REEB 13.01 Cooperative
a
greement
.
(1)
A cooperative agreement between a licensed broker and an out-of-state broker shall be all of the following:
(a) In writing.
(b) A form approved by the board pursuant to s.
452.05(1)(b)
.
(2)
The terms of the cooperative agreement shall contain at least all of the following:
(a) The terms of cooperation
between the out-of-state broker, any out-of-state salesperson, and the licensed broker.
(b) The terms of the out-of-state broker’s compensation.
(c) Provide that all client funds, as defined in s.
452.13(1)(a)
, that the out-of-state broker and licensed broker receive in connection with a transaction subject to the cooperative agreement shall be deposited in a trust account maintained by the licensed broker.
Section
2
This
emergency rule shall take effect
on March 19, 2015.
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(END OF TEXT OF RULE)
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FISCAL ESTIMATE
The anticipated effect on county, city, village, town, school distri
ct, technical college district and sewerage district fiscal liabilities and revenues.
There will be no effect on these entities.
A projection of the anticipated state fiscal effect during the current biennium and a projection of the net annualized fiscal impact on state funds.
None
For rules that the agency determines may have a significant fiscal effect on the private sector, the anticipated costs that will be incurred by the private sector in complying with the rule.
This rule will not have a significant fiscal effect on the private sector.
