CSHB 205(L&C): "An Act relating to real estate broker and real estate salesperson licensing; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 205(L&C) 01 "An Act relating to real estate broker and real estate salesperson licensing; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.88.071(a) is amended to read: 05 (a) The commission shall 06 (1) determine whether applicants meet requirements for licenses under 07 this chapter and issue licenses to those who qualify; 08 (2) prepare and grade examinations; 09 (3) after hearing, have the authority to suspend or revoke the license of 10 a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 on a 11 licensee who 12 (A) with respect to a real estate transaction 13 (i) made a substantial misrepresentation; 14 (ii) made a false promise likely to influence, persuade,
01 or induce; 02 (iii) in the case of a real estate broker, pursued a 03 flagrant course of misrepresentation or made a false promise through 04 another real estate licensee; 05 (iv) has engaged in conduct that is fraudulent or 06 dishonest; 07 (v) violates AS 08.88.391; 08 (vi) violates AS 08.88.396; 09 (B) procures a license by deceiving the commission, or aids 10 another to do so; 11 (C) has engaged in conduct of which the commission did not 12 have knowledge at the time the licensee was licensed demonstrating the 13 licensee's unfitness to engage in the business for which the licensee is licensed; 14 (D) knowingly authorizes, directs, connives at or aids in 15 publishing, distributing, or circulating a material false statement or 16 misrepresentation concerning the licensee's business or concerning real estate 17 offered for sale, rent, or lease, or managed in the course of the licensee's 18 business in this or any other state or concerning the management of an 19 association in the course of a licensee's business in this or another state; 20 (E) if a real estate broker, wilfully violates AS 08.88.171(d) or 21 08.88.291; 22 (F) if an associate real estate broker, claims to be a real estate 23 broker, or, if a real estate salesperson, claims to be a real estate broker or 24 associate real estate broker; 25 (G) if a real estate broker, employs an unlicensed person to 26 perform activities for which a real estate license is required; 27 (H) if an employed real estate licensee of a real estate broker, 28 fails immediately to turn money or other property collected in a real estate 29 transaction over to the employing real estate broker; 30 (4) prosecute, through the Department of Law, violations of the 31 provisions of this chapter or lawful regulations adopted under this chapter;
01 (5) release for publication in a newspaper of general circulation in the 02 locale of the offending person's principal office registered with the commission notice 03 of disciplinary action taken by the commission against a person licensed under this 04 chapter; 05 (6) issue a temporary permit to the personal representative of the estate 06 of a deceased real estate broker or to another person designated by the commission 07 with the approval of the personal representative of the estate in order to secure proper 08 administration in concluding the affairs of the decedent broker's real estate business; 09 (7) issue a temporary permit to the personal representative of a legally 10 incompetent real estate broker or to another person designated by the commission with 11 the approval of the personal representative of the broker in order to secure proper 12 administration in temporarily managing the real estate business of the broker; 13 (8) establish and periodically revise the form of the seller's property 14 disclosure statement required by AS 34.70.010; 15 (9) have the authority to levy civil fines as established in this chapter; 16 (10) revoke the license of a broker or associate broker who is 17 convicted of a felony or other crime committed while licensed under this chapter 18 that, in the judgment of the commission, affects the ability of that person to 19 practice as a broker or associate broker competently and safely [FORGERY, 20 THEFT, EXTORTION, CONSPIRACY TO DEFRAUD CREDITORS, OR A 21 FELONY INVOLVING MORAL TURPITUDE COMMITTED WHILE LICENSED 22 UNDER THIS CHAPTER]; notwithstanding AS 08.88.171, a person whose license is 23 revoked under this paragraph is not qualified for a license under AS 08.88.171(a) or 24 (b) until seven years have elapsed since the person completed the sentence imposed 25 for the conviction. 26 * Sec. 2. AS 08.88.091(b) is amended to read: 27 (b) An applicant for licensure under AS 08.88.171(c) must complete 40 [20] 28 hours of education approved by the commission before the person may be licensed 29 under that subsection. 30 * Sec. 3. AS 08.88.095(a) is amended to read: 31 (a) In addition to the continuing educational requirements of AS 08.88.091(d),
01 within one year after the date that the commission issues an initial license under this 02 chapter, the licensee shall complete 30 [20] hours of education approved by the 03 commission under AS 08.88.091. 04 * Sec. 4. AS 08.88.171(a) is amended to read: 05 (a) A natural person qualifies for a real estate broker license if the person 06 passes the brokers examination, applies for a license within six months after passing 07 the examination, furnishes satisfactory proof of successful completion of the education 08 requirements of AS 08.88.091, has had at least 24 months of active and continuous 09 experience as a real estate licensee within the 36 months immediately preceding 10 application for the broker license, is not under indictment for, or seven years have 11 elapsed since the person has completed a sentence imposed upon conviction of a 12 felony or other crime that, in the judgment of the commission, affects the 13 person's ability to practice as a real estate salesperson competently and safely [, 14 FORGERY, THEFT, EXTORTION, CONSPIRACY TO DEFRAUD CREDITORS, 15 OR ANY OTHER FELONY INVOLVING MORAL TURPITUDE], and is an owner 16 of a real estate business or employed as a real estate broker by a foreign or domestic 17 corporation, partnership, limited partnership, or limited liability company. Unless the 18 broker fails to satisfy the educational requirements of AS 08.88.095 or renew the 19 license, or the broker's license is suspended or revoked, the broker's license continues 20 in effect as long as the broker's license is active. If the broker stops being an owner of 21 a real estate business or stops being employed as a real estate broker by a foreign or 22 domestic corporation, partnership, limited partnership, or limited liability company, 23 the broker's license is suspended from the time the broker stops until the broker 24 satisfies the educational requirements of AS 08.88.098 and 25 (1) again becomes an owner of a real estate business or is again 26 employed as a real estate broker by a foreign or domestic corporation, partnership, 27 limited partnership, or limited liability company; or 28 (2) is employed by another broker as an associate broker, in which 29 case the real estate broker license shall be returned to the commission by the broker, 30 and the commission shall issue the broker an associate real estate broker license. 31 * Sec. 5. AS 08.88.171(b) is amended to read:
01 (b) A natural person qualifies for an associate real estate broker license if the 02 person passes the brokers examination, applies for the license within six months after 03 passing the examination, submits satisfactory proof of successful completion of the 04 education requirements of AS 08.88.091, has had at least 24 months of active and 05 continuous experience as a real estate licensee within the 36 months immediately 06 preceding application for the license, is not under indictment for, or seven years have 07 elapsed since the person has completed a sentence imposed upon conviction of a 08 felony or other crime that, in the judgment of the commission, affects the 09 person's ability to practice as a real estate salesperson competently and safely [, 10 FORGERY, THEFT, EXTORTION, CONSPIRACY TO DEFRAUD CREDITORS, 11 OR ANY OTHER FELONY INVOLVING MORAL TURPITUDE], and is employed 12 by a licensed real estate broker as an associate real estate broker. Unless the associate 13 broker fails to satisfy the educational requirements of AS 08.88.095 or renew the 14 license, or the associate broker's license is suspended or revoked, the associate broker's 15 license continues in effect as long as the associate broker is employed by a licensed 16 real estate broker as an associate broker. If the associate broker stops being employed 17 by a licensed real estate broker, the associate broker's license is suspended from the 18 time the associate broker stops until the associate broker satisfies the educational 19 requirements of AS 08.88.098 and 20 (1) again is employed by a real estate broker as an associate broker; or 21 (2) becomes an owner of a real estate business or is employed as a real 22 estate broker by a foreign or domestic corporation, partnership, limited partnership, or 23 limited liability company, in which case the associate broker's license shall be returned 24 to the commission by the associate broker, and the commission shall issue the licensee 25 a broker's license. 26 * Sec. 6. AS 08.88.171(c) is amended to read: 27 (c) A natural person qualifies for a real estate salesperson license if the person 28 passes the real estate salesperson examination, applies for the license within six 29 months after passing the examination, submits satisfactory proof of successful 30 completion of the education requirements of AS 08.88.091, is at least 19 years of age, 31 is not under indictment for a felony or other crime that, in the judgment of the
01 commission, affects the individual's ability to practice as a real estate salesperson 02 competently and safely [FORGERY, THEFT, EXTORTION, CONSPIRACY TO 03 DEFRAUD CREDITORS, OR ANY OTHER FELONY INVOLVING MORAL 04 TURPITUDE], or, if convicted of such an offense, seven years have elapsed since 05 the person [HAS] completed the sentence imposed upon conviction [, AND IS 06 EMPLOYED BY A REAL ESTATE BROKER]. Unless the salesperson fails to 07 satisfy the educational requirements of AS 08.88.095 or renew the license, or the real 08 estate salesperson's license is suspended or revoked, a real estate salesperson's license 09 continues in effect [AS LONG AS THE SALESPERSON IS EMPLOYED AS A 10 SALESPERSON BY A LICENSED REAL ESTATE BROKER. IF THE 11 SALESPERSON STOPS BEING EMPLOYED AS A REAL ESTATE 12 SALESPERSON, THE REAL ESTATE SALESPERSON'S LICENSE IS 13 SUSPENDED FROM THE TIME THE SALESPERSON STOPS UNTIL THE 14 SALESPERSON SATISFIES THE EDUCATIONAL REQUIREMENTS OF 15 AS 08.88.098 AND AGAIN IS EMPLOYED AS A REAL ESTATE SALESPERSON 16 BY A LICENSED REAL ESTATE BROKER]. 17 * Sec. 7. AS 08.88 is amended by adding a new section to read: 18 Sec. 08.88.305. Multiple business operations. A person licensed as a real 19 estate broker may own, operate, or be employed by multiple corporations, 20 partnerships, or other business organizations engaging in activities for which a license 21 is required under this chapter, provided that each business organization is registered 22 with the commission, and that the principal offices of all of the business organizations 23 share a single physical address. 24 * Sec. 8. AS 08.88.685(a) is amended to read: 25 (a) A broker shall adopt [A] written policies and procedures available to the 26 commission and to members of the public on request [POLICY] that 27 (1) require real estate licensees to comply with all real estate laws; 28 (2) require real estate licensees to act fairly and honestly in all 29 dealings; 30 (3) require real estate licensees to notify the broker or a broker 31 designee of any legal dispute or allegation of wrongdoing from a seller, buyer,
01 lessor, or lessee; 02 (4) require real estate licensees to maintain regular communication 03 with the broker or a broker designee; and 04 (5) identify and describe [IDENTIFIES AND DESCRIBES] the 05 relationships in which the broker and the real estate licensees who work for the broker 06 may engage with a seller, buyer, lessor, or lessee. [THE BROKER SHALL MAKE 07 THE WRITTEN POLICY AVAILABLE TO THE COMMISSION AND TO 08 MEMBERS OF THE PUBLIC ON REQUEST.] 09 * Sec. 9. This Act takes effect February 1, 2008.