SB 1368 Passes and Protects REALTORS® From Extra Fees

You make the decision to become a REALTOR®, obtain all the necessary education, pass the examination and pay your licensing fees. You hang your license with a broker and off you go to begin your career representing buyers and sellers! Then all the sudden you are notified that you must now obtain an additional business license for each city in which you conduct business. At a cost of $80 to $150 per license depending on municipality, you quickly realize the cost to do business adds up.

But as an Arizona REALTOR® you are part of a 40,000+ member strong organization that is here to protect your business. So, when the Arizona Association of REALTORS® became aware of the practice by various municipalities to charge additional business licenses on top of the licensing fees already charged to brokers and salespersons, the association knew this practice needed to be stopped. As a result, Senator Gail Griffin sponsored Senate Bill 1368, which prohibited cities and towns from requiring real estate brokers or salespersons to obtain any additional business licenses.

In both the Senate and House committees, Senator Gail Griffin testified that certain municipalities were “charging a business license in order to put up a real estate sign” and that “one city is charging $100 license and another is charging $150” and “there is no limit as to what they can charge.”

The bill as introduced presented a common sense solution to eliminate bureaucratic roadblocks that stand between you and your business. As such, legislators easily supported the bill and as a result the bill sailed through the legislative process gaining all but one legislators approval. On April 2, 2015, Governor Doug Ducey signed Senate Bill 1362 into law. The bill does not have a specific effective date; as such, the provisions of the bill will take effect 90-days after the legislature adjourned sine die, July 3, 2015.

Provisions of Senate Bill 1368:

Restricts cities and towns from requiring additional business licenses be obtained by a real estate broker or salesperson who is licensed in the city or town in which their primary place of business is located.

As a result of the REALTORS® of Arizona Political Action Committee (RAPAC), the Arizona REALTORS® are able to advance legislation that reduces government interference in your business and saves you money each time you conduct a transaction. Each investment you make towards RAPAC is a small investment that puts money directly back in your wallet.

About the author: Nicole LaSlavic is the Vice President of Government Affairs for the Arizona Association of REALTORS® representing the association at the Arizona state capitol. With over a decade of experience, she has worked to develop, advocate and implement policy and programs on a broad range of issues including real estate, health care, retirement, public safety and economic development.

Tags: Advocacy, Government Affairs, Legislative update, Political affairs, Voice at the Capitol