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HB 4717

Occupations: real estate; continuing education hours for real estate brokers and salespersons; revise requirements. Amends sec. 2504a of 1980 PA 299 (MCL 339.2504a).

2023-2024 Regular Session Introduced by Noah Arbit and 22 co-sponsors

Michigan real estate licensees must complete 1 hour of annual fair housing CE (counts toward the cycle) and no longer face extra non-credit penalty hours for CE deficiencies.

assigned PA 246'23
#occupations:businesslicensingandregistration #occupations:individuallicensingandregistration #occupations:realestate #stateagencies(existing):licensingandregulatoryaffairs
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Bill Summary · HB 4717

Summary — HB 4717 (Public Act 246 of 2023)

Subject: Real estate continuing education — annual fair housing training; revise CE deficiency rules
Statute amended: MCL 339.2504a (Article 25, Occupational Code)
Enacted as: Public Act 246 of 2023 (approved Nov. 29, 2023; effective Feb. 13, 2024)

Main purpose

To modify continuing education (CE) requirements for licensed real estate brokers, associate brokers, and salespersons by (1) requiring annual CE on fair housing compliance, and (2) removing a separate “penalty” requirement that forced license renewal applicants to complete extra non‑credit CE hours if they were CE‑deficient for more than 60 days.

Key provisions and changes

  • Annual fair housing hour:
    • Adds a requirement that, each year of a license cycle, a licensee complete at least 1 hour of CE involving compliance with local, state, or federal fair housing laws.
    • That 1 hour counts toward the total CE hours required in the license cycle.
  • Existing annual legal education requirement retained:
    • Licensees must continue to complete at least 2 hours per year of CE involving laws, rules, and court cases regarding real estate (also counted toward the cycle total).
  • Total hours and department rulemaking:
    • For license cycles before any new rulemaking, the statute maintains the existing 18‑hour requirement per three‑year cycle (the department multiplies license‑cycle years by 6 to set cycle totals and may change total hours by rule for future cycles).
  • Elimination of additional non‑credit penalty hours:
    • Removes the prior requirement that audit‑deficient applicants whose deficiency period was ≥ 60 days complete extra CE hours (previously specified as 4 hours for 60–119 days or 8 hours for ≥120 days) that did not count toward the cycle total.
    • After the change, a licensee found deficient must only complete the number of hours necessary to meet the statutory cycle total (plus any other penalties LARA may impose).
  • Administrative/verification and recordkeeping:
    • At each CE course, licensees must verify identity to the provider by presenting their LARA pocket card or license number and a government photo ID.
    • Licensees must retain CE documentation acceptable to LARA for at least 4 years and produce it on request.
    • LARA retains audit authority; if an audit finds insufficient CE, LARA may require completion of additional hours to remedy the deficiency.
  • Proration:
    • LARA may prorate CE hour requirements for licenses issued partway through a license cycle.
  • Definitions and rule standards:
    • Continues rulemaking authority for LARA to establish standards for eligible CE courses and cycle hour calculations.

Who is affected

  • Primary: licensed real estate brokers, associate brokers, and salespersons in Michigan.
  • Secondary: CE course providers (must offer eligible fair housing content and comply with identity verification/recordkeeping standards) and the Michigan Department of Licensing and Regulatory Affairs (LARA) which administers audits, rules, and enforcement.

Fiscal and other notes

  • Nonpartisan analyses concluded the bill has no fiscal impact on state or local government.
  • Enacted language appears in MCL 339.2504a (Article 25).
  • Effective date: February 13, 2024 (Public Act 246 of 2023).

Practical impact

  • Ensures yearly renewal of fair housing knowledge for real estate licensees (1 hour/year), strengthening ongoing compliance and consumer protection.
  • Reduces the extra make‑up burden previously imposed on licensees who fell temporarily behind on CE by eliminating the separate non‑credit penalty hours, simplifying remediation to only the hours required to meet cycle totals.

Compiled from official sources — confirm details with the bill’s official record.

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