01/26/2012 01:30 PM Senate LABOR & COMMERCE

                                                                                                                                
               SB 158-REAL ESTATE SALES LICENSEES                                                                           
                                                                                                                                
2:41:37 PM                                                                                                                    
CHAIR EGAN announced SB 158 to be up for consideration.                                                                         
                                                                                                                                
DANA  OWEN, staff  to the  Senate Labor  and Commerce  Committee,                                                               
sponsor of SB 158, said  industry professionals wanted to achieve                                                               
three  things with  this  bill. First,  there  are provisions  in                                                               
statute  for appointing  a temporary  overseer of  a real  estate                                                               
license in  the event that  a person can't oversee  the business,                                                               
but there  is one  glaring exception.  That is  if the  person is                                                               
being punished through  the legal system for  some misconduct. No                                                               
provisions  exist  for  appointing   someone  to  take  over  the                                                               
business and  manage it or close  it down. The bill  would put in                                                               
that provision.                                                                                                                 
                                                                                                                                
Second,  they  wanted  to  address   a  provision  for  assigning                                                               
assistants to  a licensee.  At the  time it  was inserted  it was                                                               
understood that the assistant would  be assigned to the licensee.                                                               
People have taken  that to mean that the assistant  has a license                                                               
that can go  to anybody; in other words that  person can work for                                                               
multiple agents.  The intent of the  law as he understands  it is                                                               
to limit  it to that one  licensee. This bill would  restore that                                                               
idea.                                                                                                                           
                                                                                                                                
Third, currently brokers  are not allowed to donate  a portion or                                                               
all of their  commission to a charity, and they  want the ability                                                               
to do that. This bill would also address that.                                                                                  
                                                                                                                                
CHAIR EGAN objected for discussion.                                                                                             
                                                                                                                                
SENATOR MENARD asked if they would play by the same IRS rules.                                                                  
                                                                                                                                
MR. OWEN answered yes.                                                                                                          
                                                                                                                                
2:44:47 PM                                                                                                                    
ERROL  CHAMPION,  President,  Southeast  Board  of  Realtors  and                                                               
Director  for the  Alaska Association  of  Realtors, thanked  the                                                               
chair for  introducing SB  158. He said  it resolves  three areas                                                               
identified  by members  of the  Alaska  Realtors Association.  It                                                               
clarifies  statute  providing the  ability  for  the Alaska  Real                                                               
Estate Commission  (ARAC) to designate  a licensee  to administer                                                               
closing down a  real estate brokerage for medical  reasons or for                                                               
violation of  the law  if one  is not available  up to  the task.                                                               
State law  presently does not  allow the ARAC the  flexibility to                                                               
assign this  important task to  the appropriate  active licensee.                                                               
He said this is important for  the Bush because often no one else                                                               
is  in the  office except  the licensee.  Currently, ARAC  has to                                                               
remove all the transactions and  the control of the trust account                                                               
perhaps to another city, which is awkward for everyone.                                                                         
                                                                                                                                
The  second issue  the  bill  clarifies is  the  intent that  all                                                               
licensed assistants  have to be  working for the  brokerage where                                                               
they are being compensated. You  don't want compensation to go to                                                               
a licensed assistant  and then have them work  for another broker                                                               
because  of  violation  of  confidentiality;   it's  not  a  good                                                               
business practice.                                                                                                              
                                                                                                                                
Third, this  bill will  allow a  licensee to  share a  portion of                                                               
their  commission with  a charity.  Technically, only  the broker                                                               
can disburse funds out of the trust account.                                                                                    
                                                                                                                                
He  summarized that  these three  changes will  help clarify  the                                                               
intent of the law and promote charitable giving.                                                                                
                                                                                                                                
CHAIR EGAN  thanked Mr.  Champion for his  testimony and  said SB
 would be held for a future meeting.