HB 169: "An Act relating to the educational requirements for certain real estate brokers, associate brokers, and salespersons with new or suspended licenses; and allowing real estate brokers to hire certain experts to review real estate transactions; and providing for an effective date."
00 HOUSE BILL NO. 169 01 "An Act relating to the educational requirements for certain real estate brokers, 02 associate brokers, and salespersons with new or suspended licenses; and allowing real 03 estate brokers to hire certain experts to review real estate transactions; and providing 04 for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.88.071(b) is amended to read: 07 (b) When an award is made from the real estate surety fund under this chapter, 08 the commission may suspend the license of the real estate licensee whose actions 09 formed the basis of the award. A suspension ordered under this subsection shall be 10 lifted if the licensee reaches an agreement with the commission on terms and 11 conditions for the repayment to the real estate surety fund of the money awarded to the 12 claimant and the costs of hearing the claim under AS 08.88.465 and if the licensee 13 satisfies the requirements of AS 08.88.095. The suspension shall be reimposed if the 14 licensee violates the terms of a repayment agreement entered into under this
01 subsection. 02 * Sec. 2. AS 08.88.091(e) is amended to read: 03 (e) Except for a course described in (f)(1) or (3) of this section, in order for an 04 educational course to be recognized for credit under this section, AS 08.88.095, or 05 08.88.098, the course outline and the instructor of the course shall [MUST] have been 06 approved by the commission or the commission's designee before the course was 07 conducted. A course outline or instructor is considered approved if the commission or 08 the commission's designee does not disapprove the outline or instructor within 45 days 09 after the date on which complete application was made for approval. Each approved 10 contact hour of a submitted course outline constitutes one credit hour of 11 [CONTINUING] education under (d) of this section, AS 08.88.095, or 08.88.098. 12 The fee for continuing education course certification under AS 08.88.221 and for 13 course certification under AS 08.88.221 to satisfy the educational requirements of 14 AS 08.88.095 and 08.88.098 must [SHALL] be based on the hours approved for 15 credit, not on the hours submitted. 16 * Sec. 3. AS 08.88.091(f) is amended to read: 17 (f) The commission shall establish by regulation the educational and 18 continuing educational requirements for licenses issued by the commission. The 19 regulations for continuing education requirements and for educational requirements 20 under AS 08.88.095 and 08.88.098 must allow the following types of courses to 21 qualify for the appropriate number of credit hours, as determined by the commission: 22 (1) courses that are developed by national organizations, as identified 23 for the purpose of this paragraph in the commission's regulations, that are delivered by 24 nationally certified instructors and that are required in order to earn professional 25 designations from a national organization in specialized areas of licensed real estate 26 practice; notwithstanding other provisions of this chapter, the commission may not 27 charge a fee for these courses; 28 (2) technology courses directly related to real estate practice that are 29 designed to enhance the skills and performance of a real estate licensee; and 30 (3) courses offered by an accredited college or university as part of a 31 real estate curriculum that are available for at least one quarter-hour or one-half
01 semester-hour of academic credit; the commission may not charge a fee for these 02 courses. 03 * Sec. 4. AS 08.88 is amended by adding new sections to read: 04 Sec. 08.88.095. Educational requirements after initial license. (a) In 05 addition to the continuing educational requirements of AS 08.88.091(d), within one 06 year after the date that the commission issues an initial license under this chapter, the 07 licensee shall complete 20 hours of education approved by the commission under 08 AS 08.88.091. 09 (b) On the document representing an initial license, the commission shall 10 include clear and prominent language stating that the license is subject to the licensee's 11 completion of the educational requirements within one year after the date of the 12 issuance of the license. 13 (c) Within 30 days after the end of the one-year period, the licensee shall 14 submit, on a form provided by the commission, a certification that the licensee has 15 completed the educational requirements. 16 (d) After a licensee submits the completed form under (c) of this section and 17 pays the required fee, the commission shall issue a new license document to the 18 licensee that does not contain the language required by (b) of this section. 19 (e) If a licensee fails to complete the educational requirements within the one- 20 year period or to provide the certification required by (c) of this section, the license 21 automatically lapses 30 days after the end of the one-year period. However, the 22 commission may reinstate the license under AS 08.88.241. 23 (f) Notwithstanding the other provisions of this section, if the commission 24 issues an initial license as a real estate broker to an individual who was licensed as an 25 associate real estate broker under this chapter immediately before the commission 26 issued the real estate broker license, the individual is not required to satisfy the 27 educational requirements for the initial license as a real estate broker. 28 (g) The commission may not set limits on the educational requirements that 29 prevent a licensee from completing the educational requirements within a two-day 30 period. 31 (h) In this section, "educational requirements" means the educational
01 requirements of (a) of this section. 02 Sec. 08.88.098. Educational requirements after suspension. (a) In addition 03 to the continuing educational requirements of AS 08.88.091(d) and the educational 04 requirements of AS 08.88.095(a), if the commission suspends a license under 05 AS 08.01.075 for six months or more, the licensee shall complete 20 hours of 06 education approved by the commission under AS 08.88.091 before the commission 07 may cancel the suspension. 08 (b) After completing the educational requirements of (a) of this section, the 09 licensee shall submit, on a form provided by the commission, a certification that the 10 licensee has completed the educational requirements. 11 (c) The educational requirements of (a) of this section are in addition to any 12 other conditions that the commission sets for canceling the suspension of a license 13 under this chapter. 14 (d) The commission may not set limits on the educational requirements that 15 prevent a licensee from completing the educational requirements of (a) of this section 16 within a two-day period. 17 (e) Notwithstanding (a) of this section, if the suspension occurs during the first 18 year after the date that the commission issues an initial license under this chapter, the 19 educational requirements of AS 08.88.095 may be used to satisfy the educational 20 requirements established by (a) of this section. 21 * Sec. 5. AS 08.88.171(a) is amended to read: 22 (a) A natural person qualifies for a real estate broker license if the person 23 passes the brokers examination, applies for a license within six months after passing 24 the examination, furnishes satisfactory proof of successful completion of the education 25 requirements of AS 08.88.091, has had at least 24 months of active and continuous 26 experience as a licensed real estate salesperson within the 36 months immediately 27 preceding application for the broker license, is not under indictment for, or seven years 28 have elapsed since the person has completed a sentence imposed upon conviction of, 29 forgery, theft, extortion, conspiracy to defraud creditors, or any other felony involving 30 moral turpitude, and is an owner of a real estate business or employed as a real estate 31 broker by a foreign or domestic corporation, partnership, limited partnership, or
01 limited liability company. Unless the broker fails to satisfy the educational 02 requirements of AS 08.88.095 or renew the license, or [UNLESS] the broker's 03 license is suspended or revoked, the broker's license continues in effect as long as the 04 broker's license is active. If the broker stops being an owner of a real estate business 05 or stops being employed as a real estate broker by a foreign or domestic corporation, 06 partnership, limited partnership, or limited liability company, the broker's license is 07 suspended from the time the broker stops until the broker satisfies the educational 08 requirements of AS 08.88.098 and 09 (1) [THE BROKER] again becomes an owner of a real estate business 10 or is again employed as a real estate broker by a foreign or domestic corporation, 11 partnership, limited partnership, or limited liability company; or 12 (2) [THE BROKER] is employed by another broker as an associate 13 broker, in which case the real estate broker license shall be returned to the commission 14 by the broker, and the commission shall issue the broker an associate real estate broker 15 license. 16 * Sec. 6. AS 08.88.171(b) is amended to read: 17 (b) A natural person qualifies for an associate real estate broker license if the 18 person passes the brokers examination, applies for the license within six months after 19 passing the examination, submits satisfactory proof of successful completion of the 20 education requirements of AS 08.88.091, has had at least 24 months of active and 21 continuous experience as a licensed real estate salesperson within the 36 months 22 immediately preceding application for the license, is not under indictment for, or five 23 years have elapsed since the person has completed a sentence imposed upon 24 conviction of, forgery, theft, extortion, conspiracy to defraud creditors, or any other 25 felony involving moral turpitude, and is employed by a licensed real estate broker as 26 an associate real estate broker. Unless the associate broker fails to satisfy the 27 educational requirements of AS 08.88.095 or renew the license, or [UNLESS] the 28 associate broker's license is suspended or revoked, the associate broker's license 29 continues in effect as long as the associate broker is employed by a licensed real estate 30 broker as an associate broker. If the associate broker stops being employed by a 31 licensed real estate broker, the associate broker's license is suspended from the time
01 the associate broker stops until the associate broker satisfies the educational 02 requirements of AS 08.88.098 and 03 (1) [THE ASSOCIATE BROKER] again is employed by a real estate 04 broker as an associate broker; or 05 (2) [THE ASSOCIATE BROKER] becomes an owner of a real estate 06 business or is employed as a real estate broker by a foreign or domestic corporation, 07 partnership, limited partnership, or limited liability company, in which case the 08 associate broker's license shall be returned to the commission by the associate broker, 09 and the commission shall issue the licensee a broker's license. 10 * Sec. 7. AS 08.88.171(c) is amended to read: 11 (c) A natural person qualifies for a real estate salesperson license if the person 12 passes the real estate salesperson examination, applies for the license within six 13 months after passing the examination, submits satisfactory proof of successful 14 completion of the education requirements of AS 08.88.091, is at least 19 years of age 15 [OLD], is not under indictment for forgery, theft, extortion, conspiracy to defraud 16 creditors, or any other felony involving moral turpitude, or, if convicted of such an 17 offense, the person has completed the sentence imposed upon conviction, and is 18 employed by a real estate broker. Unless the salesperson fails to satisfy the 19 educational requirements of AS 08.88.095 or renew the license, or [UNLESS] the 20 real estate salesperson's license is suspended or revoked, a real estate salesperson's 21 license continues in effect as long as the salesperson is employed as a salesperson by a 22 licensed real estate broker. If the salesperson stops being employed as a real estate 23 salesperson, the real estate salesperson's license is suspended from the time the 24 salesperson stops until the salesperson satisfies the educational requirements of 25 AS 08.88.098 and again is employed as a real estate salesperson by a licensed real 26 estate broker. 27 * Sec. 8. AS 08.88.221 is amended to read: 28 Sec. 08.88.221. Fees. The Department of Commerce, Community, and 29 Economic Development shall set fees under AS 08.01.065 for a real estate broker, 30 associate broker, or salesperson licensee or applicant for the following: 31 (1) examination;
01 (2) initial license; 02 (3) renewal of an active license; 03 (4) renewal of an inactive license; 04 (5) amending or transferring a license; 05 (6) publications offered by the commission; 06 (7) seminars offered by the commission; 07 (8) reinstatement of a lapsed license; 08 (9) changes to registered office information; 09 (10) course certification and recertification; and 10 (11) instructor approval and renewal of approval; and 11 (12) issuance of a new license document under AS 08.88.095(d). 12 * Sec. 9. AS 08.88.241(a) is amended to read: 13 (a) A person whose real estate license has lapsed less than 24 months is 14 eligible for reinstatement of the license if the person provides the required application, 15 license fees, proof of continuing education as required by AS 08.88.091 for licensing 16 periods during which the license was inactive or lapsed, proof of completion of the 17 educational requirements under AS 08.88.095(a), if applicable, and any fee 18 required under AS 08.88.221(12). 19 * Sec. 10. AS 08.88.251(a) is amended to read: 20 (a) A real estate licensee who intends to become inactive shall return to the 21 commission the person's license certificate and a completed inactivation form 22 provided by the commission along with any applicable fees. The commission shall 23 issue the person an inactive license certificate. A real estate licensee whose license 24 lapses under AS 08.88.095(e) is not eligible for an inactive license under this 25 subsection unless the license is reinstated under AS 08.88.241. 26 * Sec. 11. AS 08.88.263 is amended to read: 27 Sec. 08.88.263. License by endorsement. A person who holds a valid active 28 real estate license issued by another state shall be granted an equivalent Alaska real 29 estate license if that person: 30 (1) passes the portion of the real estate examination which examines 31 on Alaska law; [AND]
01 (2) meets the requirements of AS 08.88.171; and 02 (3) satisfies the educational requirements under AS 08.88.095(a) if 03 the person has not held the license issued by the other state for one year or more. 04 * Sec. 12. AS 08.88.401(b) is amended to read: 05 (b) Except as provided in AS 08.88.403, a [A] person 06 (1) who is not a real estate broker licensed in this state may not accept 07 a fee or a commission for performance of an act for which a license is required by this 08 chapter, except that a real estate broker validly licensed in another state may accept a 09 fee or commission or a portion of a fee or commission for assisting a real estate broker 10 licensed in this state in the performance of an act for which a license is required by 11 this chapter; 12 (2) who is an associate broker or a real estate salesperson licensed in 13 this state may accept a fee or commission for performance of an act for which a 14 license is required by this chapter only from the licensee's employing broker, except 15 that the wages of a person who is engaged as a licensed assistant under AS 08.88.398 16 may be accepted by the person from the assistant's employer. 17 * Sec. 13. AS 08.88.401(d) is amended to read: 18 (d) Except as provided in AS 08.88.403, a [A] person licensed under this 19 chapter may not knowingly pay any part of a fee, commission, or other compensation 20 received by the licensee in buying, selling, exchanging, leasing, auctioning, or renting 21 real estate to 22 (1) a person who is not licensed under this chapter, except as provided 23 in (e) of this section; 24 (2) another licensee, except through the licensee's responsible broker; 25 or 26 (3) another licensee knowing that the other licensee intends to pay all 27 or a portion of that which is received to a person who is not licensed under this 28 chapter. 29 * Sec. 14. AS 08.88 is amended by adding a new section to read: 30 Sec. 08.88.403. Use of experts. A real estate broker may contract with and 31 pay an attorney or associate broker to assist the broker to review a real estate
01 transaction before the transaction closes. The broker may pay the attorney or associate 02 broker from a fee, commission, or other compensation received by the broker in a real 03 estate transaction payment. 04 * Sec. 15. AS 08.88.900(b) is amended to read: 05 (b) Notwithstanding that, under this section, a person is exempt from this 06 chapter, AS 08.88.401(d)(1) prohibits, except as provided in AS 08.88.403, a 07 licensee from knowingly paying to that person any part of a fee, commission, or other 08 compensation received by the licensee in buying, selling, exchanging, leasing, 09 auctioning, or renting real estate. 10 * Sec. 16. AS 08.88.990 is amended by adding a new paragraph to read: 11 (12) "initial license" 12 (A) means the first 13 (i) real estate broker license that the commission issues 14 to a person, even if the person previously received an associate real 15 estate broker license or real estate salesperson license under this 16 chapter; 17 (ii) associate real estate broker license that the 18 commission issues to a person, even if the person previously received a 19 real estate broker license or a real estate salesperson license under this 20 chapter; 21 (iii) real estate salesperson license under this chapter 22 that the commission issues to a person, even if the person previously 23 received a real estate broker license or an associate real estate broker 24 license under this chapter; 25 (iv) issuance of a license to an individual after the 26 individual's license has been revoked under AS 08.01.075; 27 (B) does not include the reinstatement of a license under 28 AS 08.88.241(b). 29 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPLICABILITY. AS 08.88.095 and 08.88.098, enacted by sec. 4 of this Act, and
01 AS 08.88.071(b), 08.88.091(e), 08.88.091(f), 08.88.171(a), 08.88.171(b), 08.88.171(c), 02 08.88.221, 08.88.241(a), 08.88.251(a), 08.88.263, and 08.88.990, as amended by secs. 1 - 3, 5 03 - 11, and 16 of this Act, do not apply to 04 (1) an initial license unless the initial license is issued on or after the effective 05 date of this Act; in this paragraph, "initial license" has the meaning given in 06 AS 08.88.990(12)(A)(i) - (iii); 07 (2) An initial license issued after a license revocation, unless the license 08 revocation occurs on or after the effective date of this Act; in this paragraph, "initial license" 09 has the meaning given in AS 08.88.990(12)(A)(iv); or 10 (3) a suspended license unless the license is suspended on or after the effective 11 date of this Act. 12 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 15 Economic Development may proceed to adopt regulations necessary to implement secs. 1 - 16 11, 16, and 17 of this Act. The regulations take effect under AS 44.62 (Administrative 17 Procedure Act), but not before the effective date of secs. 1 - 11, 16, and 17 of this Act. 18 * Sec. 19. Sections 12 - 15 and 18 of this Act take effect immediately under 19 AS 01.10.070(c). 20 * Sec. 20. Sections 1 - 11, 16, and 17 of this Act take effect January 1, 2006.