Legislature(2003 - 2004)
04/13/2004 03:25 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE BILL NO. 418
An Act extending the termination date of the Real
Estate Commission; and providing for an effective date.
REPRESENTATIVE NORMAN ROKEBERG, SPONSOR, explained the bill
noting that AS 08.88.010 has established the Real Estate
Commission (REC), providing for appointment of members by
the Governor. The Commission consists of five real estate
brokers or associate brokers, one from each of the four
judicial districts and two public members. The bill, if
enacted would extend the Commission operation for another
four years to June 30, 2008.
The Commission serves the public interest by adopting
regulations to carry out the laws governing the practice of
real estate in Alaska. It approves education courses and
instructors, makes final licensing decisions and takes
disciplinary action against people who violate the licensing
laws.
Representative Rokeberg advised that Legislative Audit
recommends REC be extended. The regulation and licensing of
real estate professionals provides necessary public
protection in the buying and selling of residential and
commercial properties. He recommended that REC be extended
to June 30, 2008, and urged passage.
He pointed out amendments made by the House Labor & Commerce
Committee, which address two issues:
· Home inspectors, and
· Requests from the Division of Occupational
Licensing, cleaning up statutory language.
Representative Rokeberg highlighted the sectional analysis:
· Section 1 extends the sunset for the Real Estate
th
Commission to June 30, 2008.
· Section 2 addresses the question of dual insurance.
Current law requires each licensee to have
insurance.
· Sections 3 & 4 were requested by the Division of
Insurance and clear up language regarding inactive
real estate licenses and address notification.
· Section 5 addresses continuing education for a
person who has a transitional home inspector
license.
· Section 6 allows for the act to take effect
immediately.
Representative Rokeberg referenced Amendment #1, #23-
LS1548\H.1, Mischel, 3/1/04. (Copy on File).
Co-Chair Williams asked if the amendment had received any
other committee hearings. Co-Chair Harris reported that the
bill had received rigorous debate in the House Labor and
Commerce Committee.
Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair
Williams OBJECTED and noted that he wished it had been
addressed in the previous committee.
Representative Stoltze recommended that Amendment #1 needed
to have more public in put. He referenced Page 1, Line 10,
deleting language "American Home Inspectors Training
Institute", indicating that it would be good to hear if that
change was supported.
Representative Rokeberg responded that he had no objection
to removing the language. He pointed out that organization
was added in the Senate Judiciary Committee last year. He
understood that the distinction was substantially different
and that the requirements were not adequate.
Representative Stoltze MOVED to ADOPT the amendment to
Amendment #1. Co-Chair Harris OBJECTED and asked if there
was a problem with that group. Representative Rokeberg
replied that they had lobbied to get placement in the bill
last year with the Chair of the Senate Judiciary Committee.
TAPE HFC 04 - 80, Side B
Representative Rokeberg agreed that the amendment to the
amendment would be appropriate. Co-Chair Harris asked why
the public felt that way. Representative Rokeberg responded
that the other included organizations are much more
thorough. The course of instruction by the American Home
Inspectors is only six days and includes 50 questions;
whereas, the other exam is a longer course of study and has
250 questions. It is a more arduous course of study.
Co-Chair Harris WITHDREW his OBJECTION to amending Amendment
#1. There being NO further OBJECTION, the amendment was to
Amendment #1 was adopted.
Representative Croft inquired if the first portion of the
amendment adds a continuing education requirement.
Representative Rokeberg responded that was part of the
original bill. Representative Croft asked what the section
would be adding.
JANET SEITZ, STAFF, REPRESENTATIVE NORMAN ROKEBERG,
explained that when the regulations were developed, there
were problems the Division had in distinguishing between who
needed continuing education and who did not. It was the
original intent that once the party got their license, the
only thing they would need would be the continuing
education. The amendment makes it clear that inspectors
must submit the application within one year of passing the
exam, or they demonstrate the documentation that they had
passed the exam, or they could show that they had the
continuing education requirement.
Representative Croft requested clarification if they would
have to apply within one year, adding the additional
language of proof of a continuing education requirement.
Ms. Seitz responded that it would be either one or the
other.
Representative Croft asked what was the "residential
combination examination". Ms. Seitz replied that when the
Division was developing the regulations, under the current
law, the passing of the building inspector examination, a
person would have to pass four separate exams. The combo
examination is a "4 in 1" exam and instead of taking
separate exams, the qualifying person takes only the combo
exam.
Representative Croft advised that the fee for licensing
would be $200 dollars. He inquired if the fee had been left
out when previously passed. Ms. Seitz replied that it had
been left out.
Co-Chair Williams WITHDREW his OBJECTION to the amended
Amendment #1. There being NO further OBJECTION, Amendment
#1 was adopted.
Co-Chair Harris inquired if the bill had received an audit.
PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION, replied that an audit had been done and a
recommendation was made for a four-year extension. Further
recommendations made were:
· To increase the ceiling for the real estate assurity
fund;
· To create a reasonable due notice when claims are
approved;
· To clarify that if a real estate agent was involved
in the sale of a mobile home, the transaction be
covered by the real estate assurity fund.
Ms. Davidson acknowledged that the third recommendation was
accompanied by controversy and that the Division did not
mean that all mobile home sales had to be handled by real
estate agents. That would not be recommended. They would
need that only to the extent that if a real estate agent was
involved, the transaction would then be covered by that
fund. The proposed bill does not address that concern.
Representative Foster MOVED to report CS HB 418 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 418 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Community & Economic Development.
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