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CSHB 357(L&C): "An Act requiring errors and omissions insurance for real estate licensees; renaming the real estate surety fund as the real estate recovery fund and relating to that fund, and redefining the procedures and criteria used by the Real Estate Commission to make an award from the fund to a person suffering a loss caused by certain misconduct of real estate licensees; requiring a real estate licensee to maintain an office in the state; and providing for an effective date."

00                       CS FOR HOUSE BILL NO. 357(L&C)                                                                    
01 "An Act requiring errors and omissions insurance for real estate licensees; renaming the                                
02 real estate surety fund as the real estate recovery fund and relating to that fund, and                                 
03 redefining the procedures and criteria used by the Real Estate Commission to make an                                    
04 award from the fund to a person suffering a loss caused by certain misconduct of real                                   
05 estate licensees; requiring a real estate licensee to maintain an office in the state; and                              
06 providing for an effective date."                                                                                       
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 08.88.071(a) is amended to read:                                                                   
09            (a)  The commission shall                                                                                    
10                 (1)  determine whether applicants meet requirements for licenses under                                  
11       this chapter and issue licenses to those who qualify;                                                             
12                 (2)  prepare and grade examinations;                                                                    
13                 (3)  after hearing, have the authority to suspend or revoke the license of                              
01       a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 on a                              
02       licensee who                                                                                                      
03                      (A)  with respect to a real estate transaction                                                     
04                           (i)  made a substantial misrepresentation;                                                    
05                           (ii)  made a false promise likely to influence, persuade,                                     
06                 or induce;                                                                                              
07                           (iii)  in the case of a real estate broker, pursued a                                         
08                 flagrant course of misrepresentation or made a false promise through                                    
09                 another real estate licensee;                                                                           
10                           (iv)  has engaged in conduct that is fraudulent or                                            
11                 dishonest;                                                                                              
12                           (v)  violates AS 08.88.391;                                                                   
13                           (vi)  violates AS 08.88.396;                                                                  
14                      (B)  procures a license by deceiving the commission, or aids                                       
15            another to do so;                                                                                            
16                      (C)  has engaged in conduct of which the commission did not                                        
17            have knowledge at the time the licensee was licensed demonstrating the                                       
18            licensee's unfitness to engage in the business for which the licensee is licensed;                           
19                      (D)  knowingly authorizes, directs, connives at or aids in                                         
20            publishing, distributing, or circulating a material false statement or                                       
21            misrepresentation concerning the licensee's business or concerning real estate                               
22            offered for sale, rent, or lease, or managed in the course of the licensee's                                 
23            business in this or any other state or concerning the management of an                                       
24            association in the course of a licensee's business in this or another state;                                 
25                      (E)  if a real estate broker, wilfully violates AS 08.88.171(d) or                                 
26            08.88.291;                                                                                                   
27                      (F)  if an associate real estate broker, claims to be a real estate                                
28            broker, or, if a real estate salesperson, claims to be a real estate broker or                               
29            associate real estate broker;                                                                                
30                      (G)  if a real estate broker, employs an unlicensed person to                                      
31            perform activities for which a real estate license is required;                                              
01                      (H)  if an employed real estate licensee of a real estate broker,                                  
02            fails immediately to turn money or other property collected in a real estate                                 
03            transaction over to the employing real estate broker; or                                                 
04                      (I)  fails to carry and maintain errors and omissions                                          
05            insurance with terms and conditions established by the commission under                                  
06            AS 08.88.172;                                                                                            
07                 (4)  prosecute, through the Department of Law, violations of the                                        
08       provisions of this chapter or lawful regulations adopted under this chapter;                                      
09                 (5)  release for publication in a newspaper of general circulation in the                               
10       locale of the offending person's principal office registered with the commission notice                           
11       of disciplinary action taken by the commission against a person licensed under this                               
12       chapter;                                                                                                          
13                 (6)  issue a temporary permit to the personal representative of the estate                              
14       of a deceased real estate broker or to another person designated by the commission                                
15       with the approval of the personal representative of the estate in order to secure proper                          
16       administration in concluding the affairs of the decedent broker's real estate business;                           
17                 (7)  issue a temporary permit to the personal representative of a legally                               
18       incompetent real estate broker or to another person designated by the commission with                             
19       the approval of the personal representative of the broker in order to secure proper                               
20       administration in temporarily managing the real estate business of the broker;                                    
21                 (8)  establish and periodically revise the form of the seller's property                                
22       disclosure statement required by AS 34.70.010;                                                                    
23                 (9)  have the authority to levy civil fines as established in this chapter;                             
24                 (10)  revoke the license of a broker or associate broker who is                                         
25       convicted of a felony or other crime committed while licensed under this chapter that,                            
26       in the judgment of the commission, affects the ability of that person to practice as a                            
27       broker or associate broker competently and safely or who is convicted of forgery,                                 
28       theft, extortion, conspiracy to defraud creditors, or fraud; notwithstanding                                      
29       AS 08.88.171, a person whose license is revoked under this paragraph is not qualified                             
30       for a license under AS 08.88.171(a) or (b) until seven years have elapsed since the                               
31       person completed the sentence imposed for the conviction.                                                         
01    * Sec. 2. AS 08.88.071(b) is amended to read:                                                                      
02            (b)  When an award is made from the real estate recovery [SURETY] fund                                   
03       under this chapter, the commission may suspend the license of the real estate licensee                            
04       whose actions formed the basis of the award. A suspension ordered under this                                      
05       subsection shall be lifted if the licensee reaches an agreement with the commission on                            
06       terms and conditions for the repayment to the real estate recovery [SURETY] fund of                           
07       the money awarded to the claimant [AND THE COSTS OF HEARING THE CLAIM                                             
08       UNDER AS 08.88.465] and if the licensee satisfies the requirements of AS 08.88.095.                               
09       The suspension shall be reimposed if the licensee violates the terms of a repayment                               
10       agreement entered into under this subsection.                                                                     
11    * Sec. 3. AS 08.88.171(b) is amended to read:                                                                      
12            (b)  A natural person qualifies for an associate real estate broker license if the                           
13       person passes the brokers examination, applies for the license within six months after                            
14       passing the examination, submits satisfactory proof of successful completion of the                               
15       education requirements of AS 08.88.091, has had at least 24 months of active and                                  
16       continuous experience as a real estate licensee within the 36 months immediately                                  
17       preceding application for the license, furnishes satisfactory proof that errors and                           
18       omissions insurance required under AS 08.88.172 has been obtained, is not under                               
19       indictment for or seven years have elapsed since the person has completed a sentence                              
20       imposed upon conviction of a felony or other crime that, in the judgment of the                                   
21       commission, affects the person's ability to practice as an associate real estate broker                           
22       competently and safely or upon conviction of forgery, theft, extortion, conspiracy to                             
23       defraud creditors, or fraud, and is employed by a licensed real estate broker as an                               
24       associate real estate broker. Unless the associate broker fails to satisfy the educational                        
25       requirements of AS 08.88.095 or renew the license, or the associate broker's license is                           
26       suspended or revoked, the associate broker's license continues in effect as long as the                           
27       associate broker is employed by a licensed real estate broker as an associate broker. If                          
28       the associate broker stops being employed by a licensed real estate broker, the                                   
29       associate broker's license is suspended from the time the associate broker stops until                            
30       the associate broker satisfies the educational requirements of AS 08.88.098 and                                   
31                 (1)  again is employed by a real estate broker as an associate broker; or                               
01                 (2)  becomes an owner of a real estate business or is employed as a real                                
02       estate broker by a foreign or domestic corporation, partnership, limited partnership, or                          
03       limited liability company, in which case the associate broker's license shall be returned                         
04       to the commission by the associate broker, and the commission shall issue the licensee                            
05       a broker's license.                                                                                               
06    * Sec. 4. AS 08.88.171(c) is amended to read:                                                                      
07            (c)  A natural person qualifies for a real estate salesperson license if the person                          
08       passes the real estate salesperson examination, applies for the license within six                                
09       months after passing the examination, submits satisfactory proof of successful                                    
10       completion of the education requirements of AS 08.88.091, is at least 19 years of age,                            
11       furnishes satisfactory proof that errors and omissions insurance required under                               
12       AS 08.88.172 has been obtained, is not under indictment for a felony or other crime                           
13       that, in the judgment of the commission, affects the individual's ability to practice as a                        
14       real estate salesperson competently and safely or under indictment for forgery, theft,                            
15       extortion, conspiracy to defraud creditors, or fraud, or, if convicted of such an offense,                        
16       seven years have elapsed since the person completed the sentence imposed upon                                     
17       conviction. Unless the salesperson fails to satisfy the educational requirements of                               
18       AS 08.88.095 or renew the license, or the real estate salesperson's license is suspended                          
19       or revoked, a real estate salesperson's license continues in effect.                                              
20    * Sec. 5. AS 08.88 is amended by adding a new section to read:                                                     
21            Sec. 08.88.172. Errors and omissions insurance. (a) A person licensed as a                                 
22       real estate broker, associate real estate broker, or real estate salesperson shall, as a                          
23       condition of licensing, carry and maintain errors and omissions insurance to cover                                
24       activities for which licensing is required under AS 08.88.161.                                                    
25            (b)  The department shall establish by regulation the terms and conditions of                                
26       the errors and omissions insurance required by this section, including                                            
27                 (1)  coverage requirements;                                                                             
28                 (2)  limits of coverage;                                                                                
29                 (3)  the maximum amount of premium to be charged licensees under a                                      
30       master errors and omissions policy under (d) of this section; and                                                 
31                 (4)  the method for adjusting these amounts based on the Consumer                                       
01       Price Index.                                                                                                      
02            (c)  A licensee may obtain the errors and omissions insurance required by (a)                                
03       of this section by                                                                                                
04                 (1)  obtaining a master insurance policy that may be made available to                                  
05       licensees by the commission; or                                                                                   
06                 (2)  independently obtaining errors and omissions insurance that                                        
07       complies with the requirements established under (b) of this section.                                             
08            (d)  The commission may                                                                                      
09                 (1)  solicit bids for a master errors and omissions insurance policy for                                
10       licensees that meets the minimum terms and conditions established under (b) of this                               
11       section using a competitive sealed bid process under AS 36.30 (State Procurement                                  
12       Code); and                                                                                                        
13                 (2)  charge a licensee a reasonable administration fee to recover costs                                 
14       incurred in connection with the solicitation made under (1) of this subsection.                                   
15            (e)  If the commission is unable to obtain a master errors and omissions                                     
16       insurance policy to insure licensees that meets the terms and conditions established                              
17       under (b) of this section, the requirement that a real estate licensee carry and maintain                         
18       errors and omissions insurance under AS 08.88.172 is void during the period that the                              
19       commission is unable to obtain the insurance.                                                                     
20            (f)  A licensee seeking to obtain or renew a license shall certify to the                                    
21       commission that errors and omissions insurance has been obtained. A licensee who                                  
22       elects to independently obtain errors and omissions insurance shall provide a                                     
23       certificate of coverage with the application to obtain or renew a license.                                        
24    * Sec. 6. AS 08.88.173(b) is amended to read:                                                                      
25            (b)  If a loss covered by the fidelity bond required under this section is also                              
26       reimbursable from the real estate recovery [SURETY] fund, the owners' association                             
27       that suffered the loss may not recover under the bond until the association has                                   
28       obtained a final judgment, final arbitration award, or a settlement agreement                                 
29       and filed a claim for an award [REIMBURSEMENT] under AS 08.88.460 [AND                                  
30       PROCEEDINGS RELATING TO THE CLAIM ARE CONCLUDED].                                                                 
31    * Sec. 7. AS 08.88.281 is amended to read:                                                                         
01            Sec. 08.88.281. Real estate recovery [SURETY] fund. Before issuing a                                   
02       license to an applicant under this chapter, the commission shall ensure that the                                  
03       applicant has complied with the provisions of AS 08.88.455 and is covered by the real                             
04       estate recovery [SURETY] fund established in AS 08.88.450.                                                    
05    * Sec. 8. AS 08.88.291(a) is amended to read:                                                                      
06            (a)  A person licensed as a real estate broker shall, by registering with the                                
07       commission, inform the commission of the person's principal office and of any branch                              
08       offices of the person's real estate business and include in the information the names of                          
09       the real estate licensees who are employed at each office. A real estate licensee may                             
10       do real estate business only through a principal office or from a branch office                                   
11       registered by the broker by whom the licensee is employed. Failure of a real estate                               
12       broker to maintain a place of business in the state or to inform the commission of its                        
13       location and the names and addresses of all real estate licensees employed at each                                
14       location by the broker is grounds for the suspension or revocation of the broker's                                
15       license.                                                                                                          
16    * Sec. 9. AS 08.88.291(d) is amended to read:                                                                      
17            (d)  The commission shall mail all notices pertaining to a license or recovery                           
18       [SURETY] fund action taken under this chapter or a regulation adopted under this                                  
19       chapter to the current address or addresses of a licensee obtained under this section.                            
20       Proof of notice provided under this subsection satisfies due process notice                                       
21       requirements.                                                                                                     
22    * Sec. 10. AS 08.88.391(b) is amended to read:                                                                     
23            (b)  The failure of a licensee to disclose a conflict of interest as required under                          
24       this section does not give rise to a cause of action by a private person. However, the                            
25       commission may, under AS 08.88.071, impose a disciplinary sanction for violation of                               
26       this section [, AND A CLAIM MAY BE FILED BY A PRIVATE PERSON UNDER                                                
27       AS 08.88.460 IF   THE    VIOLATION   CONSTITUTED    FRAUD,                                                        
28       MISREPRESENTATION, OR DECEIT AND THE PERSON SUFFERED A LOSS                                                       
29       AS A RESULT OF THE VIOLATION].                                                                                    
30    * Sec. 11. AS 08.88.450 is amended to read:                                                                        
31            Sec. 08.88.450. Real estate recovery [SURETY] fund. (a) The real estate                                
01       recovery [SURETY] fund is established in the general fund to carry out the purposes                           
02       of AS 08.88.450 - 08.88.495. The fund is composed of payments made by real estate                                 
03       licensees under AS 08.88.455, filing fees retained under AS 08.88.460, income earned                              
04       on investment of the money in the fund, and money deposited in the fund under (c) of                              
05       this section. Money in [APPROPRIATED TO] the fund does not lapse. The                                     
06       commission may make payments from the fund for awards from the fund under                                     
07       AS 08.88.450 - 08.88.495 [AMOUNTS IN THE FUND MAY BE APPROPRIATED                                             
08       FOR CLAIMS AGAINST THE FUND], for hearing and legal expenses directly                                             
09       related to fund operations and claims, and for real estate educational purposes.                                  
10            (b)  The Department of Commerce, Community, and Economic Development                                         
11       shall provide the commission every three months with a statement of the activities of,                            
12       balances in, interest earned on, and interest returned to the real estate recovery                            
13       [SURETY] fund.                                                                                                    
14            (c)  If money from the real estate recovery [SURETY] fund is expended to                                 
15       prepare, print, manufacture, sponsor, produce, or otherwise provide an item or a                                  
16       service to a member of the public, to a real estate licensee, to a potential real estate                          
17       licensee, or to another person, any money paid by the person to the commission, either                            
18       directly or through an agent or contractor of the commission, to receive the item or                              
19       service shall be deposited in the fund. In this subsection, "an item or a service"                                
20       includes an information pamphlet, an examination preparation packet, an educational                               
21       course, the certification of a real estate education course, and the approval of a real                           
22       estate education instructor.                                                                                      
23    * Sec. 12. AS 08.88.455 is amended to read:                                                                        
24            Sec. 08.88.455. Payments by real estate licensees. (a) A real estate licensee,                             
25       when applying for or renewing a real estate license, in lieu of obtaining a corporate                             
26       surety bond, shall pay to the commission, in addition to the license fee, a recovery                      
27       [SURETY] fund fee not to exceed $125. After each two-year licensing cycle, if the                                 
28       commission finds that the average balance in the recovery [SURETY] fund during the                            
29       two-year licensing cycle was less than $250,000 or more than $500,000, the                                        
30       commission shall by regulation adjust the recovery [SURETY] fund fees so that the                             
31       average balance of the recovery [SURETY] fund during the next two-year licensing                              
01       cycle is anticipated to be an amount that is not less than $250,000 or more than                                  
02       $500,000. In this subsection, "average balance" means the average balance after taking                            
03       into account anticipated expenditures for awards from [CLAIMS AGAINST] the                                    
04       fund [, FOR HEARING] and legal expenses directly related to fund operations [AND                                  
05       CLAIMS], and for real estate educational purposes.                                                                
06            (b)  All fees collected under this section shall be paid at least once a month by                            
07       the department into the general fund. These payments shall be credited to the real                                
08       estate recovery [SURETY] fund.                                                                                
09    * Sec. 13. AS 08.88.460(a) is amended to read:                                                                     
10            (a)  Subject to (e) of this section, a person seeking an award from the                                  
11       recovery fund [REIMBURSEMENT] for a loss suffered in a real estate transaction as                             
12       a result of fraud, an intentional tort [MISREPRESENTATION], deceit, or the                                    
13       conversion of trust funds or the conversion of community association accounts under                               
14       the control of a community association manager on the part of a person [LICENSEE]                             
15       licensed under this chapter shall                                                                                 
16                 (1)  obtain a final judgment from a court of competent jurisdiction,                                
17       a final arbitration award, or a settlement agreement with a licensee that involves                            
18       a person committing fraud, an intentional tort, deceit, the conversion of trust                               
19       funds, or the conversion of community association accounts;                                                   
20                 (2)  submit an affidavit describing the efforts made to collect the                                 
21       final judgment, final arbitration award, or settlement agreement stating that the                             
22       person has used due diligence to collect the amount due, stating that the                                     
23       judgment, arbitration award, or settlement agreement is uncollectable using                                   
24       reasonable efforts, and that the conduct that is the subject of the judgment,                                 
25       arbitration award, or settlement agreement involved an activity for which a                                   
26       person must obtain a license under AS 08.88.161;                                                              
27                 (3)  make a claim to the commission for an award from the recovery                              
28       fund [REIMBURSEMENT] on a form furnished by the commission; in [. IN] order to                            
29       be eligible for an award [REIMBURSEMENT] by the commission, the claim form                                    
30       must be filed within two years after the date of a judgment, arbitration award, or                            
31       settlement agreement that is [THE OCCURRENCE OF THE FRAUD,                                                    
01       MISREPRESENTATION, DECEIT, OR CONVERSION OF TRUST FUNDS OR                                                        
02       THE CONVERSION OF COMMUNITY ASSOCIATION ACCOUNTS UNDER                                                            
03       THE CONTROL OF A COMMUNITY ASSOCIATION MANAGER CLAIMED                                                            
04       AS] the basis for the award from the recovery fund is no longer subject to appeal;                            
05       the [REIMBURSEMENT. THE] form must [SHALL] be executed under penalty of                                   
06       unsworn falsification in the second degree and must include                                                       
07                      (A)  [THE FOLLOWING: (1)] the name and address of each                                         
08            real estate licensee involved;                                                                               
09                      (B)  a copy of the final judgment, final arbitration award, or                                 
10            settlement agreement;                                                                                    
11                      (C)  a copy of the affidavit asserting due diligence but lack                                  
12            of success in collecting the entire amount due;                                                          
13                      (D) [(2)]  the amount of the final judgment, final arbitration                             
14            award, or settlement agreement that remains unpaid [ALLEGED LOSS;                                        
15                 (3)  THE DATE OR PERIOD OF TIME DURING WHICH THE                                                        
16       ALLEGED LOSS OCCURRED;                                                                                            
17                 (4)  THE DATE UPON WHICH THE ALLEGED LOSS WAS                                                           
18       DISCOVERED];                                                                                                      
19                      (E) [(5)]  the name and address of the claimant; and                                           
20                      (F) [(6)]  a general statement of facts relative to the claim.                                 
21    * Sec. 14. AS 08.88.460(b) is amended to read:                                                                     
22            (b)  The commission shall send a [A] copy of a claim filed [WITH THE                                     
23       COMMISSION] under (a) of this section [SHALL BE SENT] to each real estate                                         
24       licensee named in (a)(3) of this section [ALLEGED TO HAVE COMMITTED THE                                       
25       MISCONDUCT RESULTING IN LOSSES, TO THE PRINCIPAL REAL ESTATE                                                      
26       BROKER EMPLOYING A LICENSEE ALLEGED TO HAVE COMMITTED THE                                                         
27       CONDUCT RESULTING IN LOSSES, AND TO ANY OTHER REAL ESTATE                                                         
28       LICENSEE INVOLVED IN THE TRANSACTION AT LEAST 20 DAYS BEFORE                                                      
29       ANY HEARING HELD ON THE CLAIM BY THE OFFICE OF                                                                    
30       ADMINISTRATIVE HEARINGS (AS 44.64.010)].                                                                          
31    * Sec. 15. AS 08.88.460(d) is amended to read:                                                                     
01            (d)  A claimant under this section shall pay a filing fee of $250 to the                                     
02       commission at the time the claim is filed. The filing fee shall be refunded if the                                
03                 (1)  commission makes an award to the claimant from the real estate                                     
04       recovery [SURETY] fund; or                                                                                
05                 (2)  claimant withdraws the claim [CLAIM IS DISMISSED UNDER                                         
06       (c) OF THIS SECTION; OR                                                                                           
07                 (3)  CLAIM IS WITHDRAWN BY THE CLAIMANT BEFORE THE                                                      
08       OFFICE OF ADMINISTRATIVE HEARINGS (AS 44.64.010) HOLDS A                                                          
09       HEARING ON THE CLAIM].                                                                                            
10    * Sec. 16. AS 08.88.465(a) is repealed and reenacted to read:                                                      
11            (a)  If the commission receives a claim for an award from the recovery fund                                  
12       that complies with the requirements of AS 08.88.450 - 08.88.495, the commission                                   
13       shall make an award from the recovery fund in an amount not to exceed $15,000. Not                                
14       more than $15,000 may be paid for each transaction, regardless of the number of                                   
15       persons injured or the number of parcels of real estate involved in the transaction.                              
16    * Sec. 17. AS 08.88.472(a) is amended to read:                                                                     
17            (a)  The commission may charge [TO] the real estate recovery [SURETY]                                    
18       fund for [HEARING AND LEGAL] expenses related to fund operations [AND                                         
19       CLAIMS]. The commission shall deposit into the real estate recovery [SURETY]                                  
20       fund amounts recovered for these expenses from the licensee under AS 08.88.071(b)                                 
21       or from other parties under AS 08.88.490.                                                                         
22    * Sec. 18. AS 08.88.472(d) is amended to read:                                                                     
23            (d)  If the salary of an employee is entirely or partially paid for from money in                            
24       the real estate recovery [SURETY] fund, the employee may perform administrative                               
25       duties for the commission in addition to any duties the employee performs that are                                
26       related to the real estate recovery [SURETY] fund. AS 08.88.910 does not apply to                             
27       this subsection.                                                                                                  
28    * Sec. 19. AS 08.88.475 is amended to read:                                                                        
29            Sec. 08.88.475. Maximum liability. (a) The maximum liability of the real                                   
30       estate recovery [SURETY] fund may not exceed $50,000 for any one real estate                                  
31       licensee.                                                                                                         
01            (b)  If the $50,000 liability of the fund as provided in (a) of this section is                              
02       insufficient to pay in full the valid claims of all persons who have obtained a final                         
03       judgment, final arbitration award, or settlement agreement involving [FILED                                   
04       CLAIMS AGAINST] an individual licensee and have filed claims for an award                                     
05       from the recovery fund, the $50,000 shall be distributed among the claimants in the                           
06       ratio that their individual claims bear to the aggregate of valid claims, or in another                           
07       manner that the commission considers equitable. Distribution shall be among the                                   
08       persons entitled to share in the recovery without regard to the order in which their                              
09       claims were filed.                                                                                                
10    * Sec. 20. AS 08.88.480 is amended to read:                                                                        
11            Sec. 08.88.480. Order of claim payment. If the money deposited in the real                                 
12       estate recovery [SURETY] fund is insufficient at a given time to satisfy a legally                        
13       [DULY] authorized claim against the fund, the commission shall, when sufficient                                   
14       money has been deposited in the fund and appropriated, satisfy unpaid claims in the                               
15       order that the claims were originally filed, plus accumulated interest at the rate of eight                       
16       percent a year.                                                                                                   
17    * Sec. 21. AS 08.88.490 is amended to read:                                                                        
18            Sec. 08.88.490. Right to subrogation. When the commission has paid to a                                    
19       claimant from the real estate recovery [SURETY] fund the sum awarded by the                                   
20       commission, the commission shall be subrogated to all of the rights of the claimant to                            
21       the amount paid, and the claimant shall assign all right, title, and interest in that                             
22       portion of the claim to the commission. Money collected by the commission on the                                  
23       claim shall be deposited to the real estate recovery [SURETY] fund.                                           
24    * Sec. 22. AS 08.88.495 is amended to read:                                                                        
25            Sec. 08.88.495. Disciplinary action [AGAINST BROKERS AND                                                   
26       SALESMEN]. Repayment in full of all obligations to the real estate recovery                                 
27       [SURETY] fund does not nullify or modify the effect of disciplinary proceedings                                   
28       brought under the provisions of this chapter.                                                                     
29    * Sec. 23. AS 08.88.990 is amended by adding new paragraphs to read:                                               
30                 (13)  "final arbitration award" means an arbitration award for which                                    
31       there is no further right to appeal;                                                                              
01                 (14)  "final judgment" means a judgment for which there is no further                                   
02       right to appeal.                                                                                                
03    * Sec. 24. AS 08.88.460(c), 08.88.465(b), 08.88.465(c), 08.88.465(d), 08.88.465(e),                                
04 08.88.465(f), 08.88.470, 08.88.472(b), 08.88.472(c), and 08.88.474 are repealed.                                        
05    * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       TRANSITIONAL PROVISIONS: REGULATIONS. The commission may proceed to                                               
08 adopt regulations necessary to implement this Act. The regulations take effect under AS 44.62                           
09 (Administrative Procedure Act), but not before the effective date of the amendments made by                             
10 secs. 1 - 24 of this Act.                                                                                               
11    * Sec. 26. Section 25 of this Act takes effect immediately under AS 01.10.070(c).                                  
12    * Sec. 27. Except as provided in sec. 26 of this Act, this Act takes effect March 1, 2010.