ARTICLE SUMMARY

●  The Arizona REALTORS® legal analysis maintains that current law only requires new fingerprint clearance cards (FCC) for renewals when the Arizona Department of Real Estate (ADRE) has evidence of previously unreviewed criminal records.

●  The ADRE has recently stated that FCCs will be required for all license renewals, relying on a recent change to the Arizona Administrative Code, however, changes to the Code cannot legally override statutory law.

●  While acknowledging potential safety benefits of broader FCC requirements, the Arizona REALTORS® insists that any such change must come transparently through the Legislature and impose no unnecessary burdens on law-abiding licensees.

●  Under its current position, the ADRE will continue to process renewal applications of licensees who do not submit a new FCC until 2027.

FCC Background:
For many years, licensees submitted a fingerprint clearance card to the Arizona Department of Public Safety (DPS) at the time they initially obtained their real estate license.  DPS ran the prints through the national system for criminal records and reported their search results to the appropriate state agency.  It was a “one time” search only.  However, at some point in time, DPS obtained the ability to monitor the person’s criminal history on an ongoing basis.  In other words, if the person was arrested or convicted of a crime, DPS is alerted and it then notifies the appropriate agency (ADRE) of the arrest or conviction.  Currently, DPS monitors a submitted FCC for six (6) years.

Legal Background:
A.R.S. 32-2108.01, entitled “License applicants; fingerprint clearance cards, definitions,” requires “license applicants” to obtain a valid FCC.  A “license applicant” is defined as an original applicant of a license or as a “license renewal” applicant . . . “for whom the department [ADRE] has evidence of a criminal record that has not been previously reviewed or evaluated by the department.”  A.R.S. 32-2108.01(E) (the FCC Statute).

Despite the plain language of the FCC Statute, in early 2025, the ADRE stated it was legally authorized to require all license renewal applicants to obtain a valid FCC.  The Arizona REALTORS® disagreed, provided its legal analysis of the FCC Statute to the ADRE, and asked the Department to consult with the Office of the Attorney General to reconsider its position. The ADRE kindly agreed to do so and in June of 2025, the ADRE provided legal analysis from the Arizona Attorney General’s Office mirroring the legal analysis of the Arizona REALTORS® and concluded that FCCs are not needed for routine renewals.  Consistent with this position, the ADRE emailed every licensee on June 30, 2025, announcing that FCCs were not needed to renew a routine license.  But the Department’s email also stated it would be seeking clarity on the issue from the Arizona Legislature in 2026.  Click HERE to see the email. Since that time, the Arizona legislature has remained out of session.

Recent ADRE Legal Announcements:
Despite the ADRE’s announcement less than five (5) months ago, and despite no amendments to the FCC Statute, the ADRE seemingly reversed its position and explained that at some unspecified future date in 2027, the Department will begin requiring new FCCs for routine renewals.  It has cited a revision to R4-28-301(A)(3) of the Arizona Administrative Code as legal authority for the change in policy.  However, Administrative Code cannot reverse statutory law and, even if it could, the Code revision does not support the position that new FCCs are required for routine renewals.  Specifically, the Administrative Code revision states license applicants must provide documents as follows [underline is new language, and strikethrough is removed language]:   

“A valid fingerprint clearance card full set of fingerprints as prescribed in A.R.S. § 32-2108.01 [the FCC Statute]”(emphasis added).

Notably, the need for a valid FCC (formerly a full set of fingerprints) must be specifically carried out “as prescribed” and in accordance with the FCC Statute.  The Arizona REALTORS®, its lobbyists, and outside counsel are firmly of the position that an administrative code revision that explicitly cites and requires adherence to the FCC Statute (that does not require valid FCC for routine renewals) cannot be used to legally justify the opposite conclusion.

Recent ADRE Actions:
The ADRE has publicly stated that it is currently incapable of timely processing a massive influx of valid FCCs for all renewals and will therefore continue to process renewal applications of licensees who do not submit a FCC until 2027.  Regardless, the ADRE has placed an “Alert” on licensee portals informing licensees that they do not have a valid FCC on file.  When the licensee requests more information, the licensee is again informed they do not have a valid FCC on file and are only given two (2) options: 1) submit their FCC; or 2) the licensee is directed to the DPS website for instructions on how to obtain a FCC.  At no time is the licensee made aware that the ADRE will not require the submission of a FCC until 2027, nor are they made aware of the fact that Arizona law does not require them to obtain a new FCC at the time of renewal.

The Arizona REALTORS® Position:
The Arizona REALTORS® is firmly committed to following Arizona law and is committed to working with all government agencies to ensure that they do the same. With that said, the Arizona REALTORS® understands that the ADRE would like to see a change in the law as it pertains to FCCs and there may be good reason to require all licensees to obtain a new FCC upon license renewal.  Licensees have access to people’s homes and frequently meet with members of the public and other real estate professionals in houses that are unoccupied.  Dangerous criminals should not be given opportunities to commit heinous acts and no one should be placed in harm’s way. 

But should a change in the law prove necessary, the Arizona REALTORS®  believes it must be made by the Arizona Legislature and in a manner that minimizes the cost and inconvenience of the overwhelming majority of law abiding licensees.  Is it possible for DPS to continue to monitor FCCs for longer than six (6) years?  Since fingerprints do not change over time, can DPS use existing prints on file as opposed to requiring renewal applicants to physically be fingerprinted?  At a minimum, the Arizona REALTORS® believes that changes in law should be clear and implemented in an orderly, transparent manner. 

The Arizona REALTORS® wants its members to know the facts on this issue and is soliciting the advice of its membership.  Please email us your thoughts at editor@aaronline.com.