1. (a) For purposes of this section and rules adopted pursuant thereto, the following terms have the following meanings:

   1. (1) ACCREDITED SCHOOL. Any nonprofit college or university that meets the standards of an accrediting agency recognized by the U.S. Department of Education and offers any approved course.
   2. (2) ADMINISTRATOR. A person designated by a prelicense or continuing education school and approved by the commission to be the person responsible to the commission for all acts governed by this chapter and applicable rules that govern the operation of schools.
   3. (3) APPROVED COURSE. Any course of instruction approved by the commission which satisfies commission requirements for prelicense education or continuing education.
   4. (4) BRANCH SCHOOL. Any school under the ownership of a principal school that offers commission-approved courses at a permanent location.
   5. (5) CONTINUING EDUCATION COURSE. Any course of instruction approved by the commission as continuing education required to renew or activate a salesperson or broker license and that is not less than 60 minutes.
   6. (6) CONTINUING EDUCATION SCHOOL. Any private educational institution or organization offering only commission-approved continuing education courses. The term does not include an accredited school.
   7. (7) DISTANCE EDUCATION. Education that is provided through media where the teacher and student are not in the same classroom but rather separated by distance or time.
   8. (8) INSTRUCTOR. A person approved by the commission to teach approved courses in a classroom or by distance education.
   9. (9) PRELICENSE COURSE. Any course of instruction approved by the commission as education required to apply for a temporary salesperson license or a broker license.
   10. (10) PRELICENSE INSTRUCTOR. An instructor of approved courses offered at a prelicense school.
   11. (11) PRELICENSE SCHOOL. A school, whether a principal or branch school, that is licensed by the commission, including any for-profit college, to offer commission-approved prelicense courses and, in addition, may offer commission-approved continuing education courses. The term does not include an accredited school.
   12. (12) PRINCIPAL SCHOOL. A prelicense school that is a primary school and not a branch school that is approved by the commission and bonded pursuant to this section.
2. (b) The commission shall have exclusive authority to license and regulate prelicense schools for the limited purpose of their offerings of approved prelicense courses and, when applicable, continuing education courses and may approve continuing education schools for the purpose of their offerings of continuing education courses. The commission may not regulate accredited schools, except that the commission shall publish all exam results by school.

3. (c)

   1. (1) The commission shall require principal schools to obtain a surety bond issued by a surety company authorized to do business in this state, payable to the commission in an amount not to exceed twenty thousand dollars ($20,000). The bond shall provide that the obligor shall pay an amount not exceeding twenty thousand dollars ($20,000) in the aggregate sum of all judgments recovered against the school for damages arising from the school’s collection of tuition or fees, or both, from students, but failing to provide the complete instruction for which the tuition or fees were collected. The bond shall cover any branch schools named in the bond or any endorsement or amendment of or to the bond.
   2. (2) The bond shall remain in effect as long as the school is licensed. In the event the bond is revoked or canceled by the surety company, the school shall have 10 days after cancellation or revocation to obtain a new bond and file the bond with the commission. Failure to maintain a bond shall result in the immediate suspension of the licenses of the school and all of its branch schools.

4. (d)

   1. (1) The commission shall charge a license fee for each prelicense principal school and each branch school in the amount of two hundred fifty dollars ($250) per year for each year or portion of a year remaining in the respective license period. The renewal fee for each prelicense principal and branch school shall be one hundred twenty-five dollars ($125) for each year of the license period.
   2. (2) The commission shall charge an approval fee for each continuing education school in the amount of one hundred dollars ($100) per year for each year or portion of a year remaining in the respective approval period. The renewal fee for each continuing education school shall be fifty dollars ($50) for each year of the approval period.
5. (e) The commission shall require all schools to name and have approved by the commission an administrator who shall be responsible to the commission for all actions of his or her respective school.
6. (f) The signage for each principal school and branch school shall clearly indicate the name of the school in a manner appropriate for its location. The signage for each branch school shall also indicate the name of the principal school.

7. (g)

   1. (1) The commission may reprimand, fine, suspend for a period up to two years, or revoke the license or approval of any school, administrator, or instructor for any violation of this section or any rule of the commission. The fine shall be not less than one hundred dollars ($100) nor more than five thousand dollars ($5,000) per violation.
   2. (2) When the average passage rate for first-time examinees who have taken a school’s prelicense course for the applicable broker or salesperson license examination is below 40 percent for six months, the commission shall notify the school and request a performance improvement plan. Failure to provide the performance improvement plan or sufficient evidence of likely improvement in the performance improvement plan to the commission within one month of notification shall result in the suspension of the school until the commission, in its discretion, receives such sufficient evidence.
8. (h) The commission shall approve, sponsor, contract for or conduct, or assist in sponsoring or conducting real estate courses for licensees, and may charge fees and may incur and pay the necessary related expenses.

9. (i)

   1. (1) The commission shall approve and regulate instructors who teach prelicense and continuing education courses. The commission shall establish and collect fees as determined necessary in an amount not exceeding fifty dollars ($50) per instructor annually.
   2. (2) The commission shall establish a continuing education requirement for all active prelicense instructors. A prelicense instructor shall provide to the commission proof of completion of all required continuing education on or before September 30 of the final year of each approval period. Any continuing education completed in excess of that required for a renewal period shall not apply to any subsequent renewal period.

10. (j)

    1. (1) A school, administrator, or instructor may request that the commission issue or change its license or approval to inactive. A school, administrator, or instructor whose license or approval is inactive is prohibited from engaging in any of the following:

       1. a. Teaching commission-approved courses.
       2. b. Offering commission-approved courses.
       3. c. Performing any duties of an administrator, including registering students, advertising a school, reporting course schedules to the commission, or entering student credit for completed courses.

    2. (2)

       1. a. A school, administrator, or instructor whose license or approval is inactive shall renew the inactive license or approval in the same manner as an active license or approval.
       2. b. Notwithstanding paragraph a., no continuing education shall be required for a prelicense instructor to renew his or her inactive approval.

    3. (3)

       1. a. A prelicense instructor whose approval is inactive for three years or less and who renews his or her inactive approval as required by this subsection may activate his or her approval for the first time in an approval period by completing all continuing education required for prelicense instructors which remains incomplete from the current and any previous approval period.
       2. b. A prelicense instructor whose approval is inactive for more than three years may activate his or her approval by completing all training required by the commission and any continuing education required during the current approval period.
    4. (4) A school, administrator, or instructor whose license or approval is inactive shall pay a fee to the commission not to exceed fifty dollars ($50) per license or approval to activate its license or approval.
    5. (5) An active prelicense instructor whose broker license is inactive must complete the continuing education requirements for both an active prelicense instructor and an active broker license.

11. (k)

    1. (1) The license or approval of a school, administrator, or instructor shall expire at midnight on September 30 of the final year of each license or approval period.
    2. (2) Any school, administrator, or instructor that fails to renew its license or approval by September 30 of the final year of the license or approval period shall incur a late fee in the amount of two hundred ($200) per license or approval.
    3. (3) A school, administrator, or instructor may renew an expired license or approval during the 12-month period following the September 30 renewal deadline, provided that the school, administrator, or instructor may not engage in any activity for which a license or approval is required.
    4. (4) After the last day of the twelfth month following the September 30 renewal deadline, an expired license or approval shall lapse and completion of all requirements of an initial license or approval shall be required for renewal.
    5. (5) Notwithstanding subdivision (4), the commission may renew a license or approval that has lapsed upon a determination of hardship, provided that all required fees are paid.

12. (l)

    1. (1) Except as provided in subdivision (2), the commission shall approve courses and establish and collect fees deemed necessary, in an amount not to exceed one hundred dollars ($100) per application, to review each course.

    2. (2)

       1. a. The commission shall certify synchronous distance education prelicense courses and establish and collect fees deemed necessary, in an amount not to exceed four hundred dollars ($400) per application that meets the qualifications in this section.
       2. b. The commission shall certify synchronous continuing education courses to be taught using distance education and establish and collect fees deemed necessary, in an amount not to exceed four hundred dollars ($400) per application for a course over three hours and a fee of one hundred dollars ($100) per application for a course three hours or less, that meets the qualifications provided in this section, except the number of students may be limited to no more than 150 for such courses.

       3. c. The commission shall examine all of the following when considering certifying a synchronous distance education course:

          1. 1. The course or program mission statement.
          2. 2. Course design.
          3. 3. Interactivity.
          4. 4. Delivery.
          5. 5. Equipment.
          6. 6. The learning environment.
          7. 7. Student support services.
          8. 8. Educational effectiveness and assessment of student learning outcomes.
       4. d. Notwithstanding paragraphs (2)a. and b., the commission may accept but may not require certification of a synchronous distance education prelicense or continuing education course by any private, independent entity.
13. (m) The commission shall establish one-year or multi-year license or approval periods for schools, instructors, administrators, and courses. Approval and license periods shall run from October 1 of the first year of the license or approval period through September 30 of the final year of the approval period.
14. (n) The commission shall adopt rules as necessary to accomplish the purpose of this section in accordance with the Administrative Procedure Act.

(Acts 1951, No. 422, p. 745, §16; Acts 1971, No. 2485, p. 3966, §16; Acts 1971, 3rd Ex. Sess., No. 310, p. 4599, §1; Acts 1975, No. 563, p. 1276, §1; Acts 1985, No. 85-750, p. 1204, §1; Acts 1996, No. 96-791, p. 1471, §1; Act 2009-581, p. 1712, §1; Act 2025-379, §1.)