Legislature(2011 - 2012)BARNES 124
02/06/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB92 | |
| HB267 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 92 | TELECONFERENCED | |
| *+ | HB 267 | TELECONFERENCED | |
HB 267-REAL ESTATE SALES LICENSEES
3:30:35 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 267, "An Act relating to the Real Estate
Commission; and providing for an effective date."
3:30:43 PM
REPRESENTATIVE CATHY MUNOZ, Alaska State Legislature, explained
HB 267 would clarify the statutes that pertain to real estate
practice. She stated that she has collaborated with the Alaska
Association of Realtors in drafting this bill. This bill would
accomplish three things. First, Section 1 of the bill would
amend AS 08.88.071 (a), to require the Real Estate Commission
issue a temporary permit to a licensee designated by the
commission to administer, manage, or conclude the affairs of a
broker's real estate business if: (1) an investigation produces
substantial evidence that the broker has misappropriated trust
funds; (2) the license of the broker is suspended; or (3) the
broker is incapacitated because of a traumatic event or medical
condition. Under current law, the Real Estate Commission (REC)
would appoint another broker; however, in some areas of the
state, a limited number of brokers practice. This provision
would also allow the commission to issue a temporary agreement
to a real estate agent to step in and conclude the business
affairs. This provision would apply in instances in which only
one or two brokers in an area would be called on to step in and
conclude the business when the practice is in jeopardy due to
health issues or issues that pertain to the actual practice of
the specific brokerage.
3:33:04 PM
REPRESENTATIVE MUNOZ stated that second, this bill would clarify
language regarding the role of a licensed real estate
salesperson or licensed real estate broker. It would limit
licensed assistants to only work for one brokerage, which is
unclear in current law; however, it is very important to have a
licensed assistant be limited to work for only one brokerage to
ensure that proprietary information is kept confidential and to
ensure that information about a real estate transaction cannot
be shared with more than one brokerage. Third, this bill would
allow a licensee to use a portion of an agent's commission to
donate to a charitable organization. She characterized this as
a housekeeping provision.
3:34:16 PM
REPRESENTATIVE HOLMES referred to Section 2 of HB 267, which
adds one new subsection. She referred to page 4, line 4, and
noted that she did not see an "and" or an "or" between paragraph
4 and 5. She asked whether the list is meant to be inclusive
and all five paragraphs would need to be met.
REPRESENTATIVE MUNOZ asked for clarification on the specific
language.
REPRESENTATIVE HOLMES referred to Section 2, page 4, line 4, and
read, "A licensed real estate salesperson or licensed associate
real estate broker may act as a licensed assistant to another
licensed salesperson or associate real estate broker if..." She
added that the "if" was followed by paragraphs
(1),(2),(3),(4),(5). She inquired as to whether the condition
would apply to all paragraphs: (1), (2), (3), (4), and (5); or
if the condition of only paragraph (1) or (2) or (3) or (4) or
(5) needed to be met. She reiterated her question by asking
whether the condition of only one paragraph in Section 2 needed
to be met or if all five conditions must be met by the licensed
real estate salesperson or licensed associate real estate
broker.
REPRESENTATIVE MUNOZ offered her belief that all five paragraphs
were necessary, but deferred to the Alaska Association of
Realtors to confirm.
3:36:37 PM
ERROL CHAMPION, President, Southeast Alaska Board of Realtors;
Member, Board of Directors, Alaska Association of Realtors,
thanked the chair for sponsoring the bill.
CHAIR OLSON reported that all of his questions had been
addressed before he signed on as joint prime sponsor of the
bill.
MR. CHAMPION mentioned that he has also submitted written
comments to the committee.
CHAIR OLSON asked him to confirm Representative Holmes's
question pertaining to Section 2.
MR. CHAMPION responded that Section 2 would require all five
paragraphs to be met. He said, "If you don't cross over the
threshold of (1), you can't make it to (2), to (3), to (4), to
(5) ...."
3:38:04 PM
DON HABEGER, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community, &
Economic Development (DCCED), introduced himself.
3:38:40 PM
REPRESENTATIVE CHENAULT referred to the zero fiscal note in
members' packets. He asked for the number of incidents for
misappropriation of trust accounts or medical reasons that have
arisen with brokers.
MR. HABEGER said the current executive administrator of the REC
indicated only one incident against a broker has occurred in
seven years. Thus, the division felt any necessary work could
easily be absorbed in the current work load.
REPRESENTATIVE CHENAULT asked for the average cost of an
investigation.
MR. HABEGER recalled a recent incident in Ketchikan, which he
characterized as a litmus test. He explained that it was
necessary to investigate a broker and licensees paid for the
investigation. He related that due to the investigation costs,
in part, the division suggested increases in licensee fees for
the next renewal period. He offered that the one incident did
not represent a huge impact to licensees.
3:40:34 PM
REPRESENTATIVE HOLMES inquired as to whether the department was
comfortable with the bill.
MR. HABEGER answered yes.
3:41:34 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, introduced himself. He referred to an amendment in
members' packet. He stated that the proposed amendment would
correct a minor drafting error.
3:42:19 PM
REPRESENTATIVE HOLMES moved to adopt Amendment 1, labeled 27-
LS1111\M.1, Martin, 1/24/12, which read:
Page 3, line 16:
Delete "board"
Insert "commission"
There being no objection, Amendment 1, was adopted.
3:43:01 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 267.
3:43:12 PM
REPRESENTATIVE HOLMES moved to report HB 267, as amended out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, the CSHB 267(L&C) was
reported from the House Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB267 Fiscal Note-DCCED-CBPL-01-21-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Sponsor Statement.pdf |
HJUD 2/20/2012 1:00:00 PM HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Sectional Analysis.pdf |
HJUD 2/20/2012 1:00:00 PM HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Letter AK Assoc. Realtors.pdf |
HJUD 2/20/2012 1:00:00 PM HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Letter Anita Bates 1-24-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Letter Eva Loken 1-20-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Letter Joni Schneider 1-20-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Letter Shelly Stradling 1-24-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 ver M.PDF |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Draft Proposed Amendment M.1.PDF |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |
| HB267 Supporting Documents-Testimony by Errol Chapion 2-6-12.pdf |
HL&C 2/6/2012 3:15:00 PM |
HB 267 |